2026.06.26
On June 25, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Royal Government of Cambodia in the capital city Phnom Penh, to provide Japanese ODA loan for the Southwest Phnom Penh Irrigation and Drainage Rehabilitation and Improvement Project (III). The signatures were exchanged between Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth of the Royal Government of Cambodia and Chief Representative Sanui Kazumasa of JICA Cambodia Office.
Signing ceremony (Photo courtesy of Ministry of Economy and Finance and Ministry of Water Resources and Meteorology)
The Project aims to improve agricultural productivity and mitigate flood damage by rehabilitating irrigation and drainage facilities in the rural and deprived area of southwest Phnom Penh, thereby contributing to the improvement of farmers' livelihoods. Furthermore, the Project also contributes to reducing flood risks in the Phnom Penh metropolitan area, where numerous Japanese companies operate, which in turn enhances business continuity for Japanese firms and improves the local investment environment. This cooperation serves not only to address local social issues but also to facilitate the development of a favorable business environment.
The project outline is explained below.
- Country
(Target Areas)
Kingdom of Cambodia (Kampong Speu, Takeo, and Kandal Provinces)
- Project Objective
To improve agricultural productivity and mitigate flood damage in rural and deprived area in Southwest Phnom Penh by rehabilitating irrigation and drainage facilities, thereby improving the livelihoods of local farmers.
- Project Component
1. Rehabilitation of irrigation and drainage facilities
2. Consulting services and soft components (establishment of irrigation associations and farming guidance, etc.)
- Maximum Loan Amount
24,237 million Japanese Yen
- Annual
Interest Rate
Project: TORF+35bp, Consulting Services: 0.80%
- Repayment Period
25 Years
- Grace Period
7 Years
- Procurement
General Untied
- Executing Agency
Ministry of Water Resources and Meteorology (MOWRAM)
- Contribution to SDGs
Goal 1 (No poverty)
Goal 2 (Zero hunger)
Goal 13 (Climate action)
-
Planned Implementation Schedule
1. Completion of the Project: May 2030, when facilities are put into service
2. Issuing of letters of invitation for consulting services (including detailed design work): Already contracted
3. Tendering of announcement of initial procurement package for international competitive bidding on project construction: Already contracted
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