March 31, 2016
On March 31, the Japan International Cooperation Agency (JICA) signed an ODA loan agreement to provide up to 17.298 billion yen and grant agreements to provide up to a total of 4.715 billion yen for two projects with the Government of the Kingdom of Cambodia in Phnom Penh, the capital city. The ODA loan is for the National Road No. 5 Improvement Project (Prek Kdam- Thlea Ma’am Section) (II), and the grant agreements are for the Project for Rehabilitation of the Chroy Changwar Bridge and the Project for Improvement of Equipment for Demining Activities (Phase 7).
In its National Strategic Development Plan for 2014 to 2018, the Government of Cambodia has prioritized infrastructure development and landmine clearance, and the target projects of the signed agreements cover these issues by promoting infrastructure and providing demining assistance.
The features of the ODA loan project and the two grant aid projects are summarized below.
Japanese ODA Loan
(1) National Road No. 5 Improvement Project (Prek Kdam-Thlea Ma’am Section) (II)
Since internal conflict in Cambodia ended in 1991, progress has been made in repairing the transportation infrastructure of Cambodia with assistance from the international community, including Japan, the World Bank and the Asian Development Bank. Nevertheless, many areas remain where economic growth has increased the traffic demand beyond the limits of the infrastructure due to the deterioration of emergency repairs made after the conflict and inadequate road widths. An increase in the flow of domestic and international goods is expected to come with continued economic development, making repairs to existing roadways a priority. Serving not only as a trunk road for Cambodia but as a part of AH1* and the Southern Economic Corridor, National Road No. 5 is expected to function as a major industrial arterial for the Mekong region.
The National Road No. 5 Improvement Project (Prek Kdam-Thlea Ma’am Section) (II) will repair and widen National Road No. 5 between Prek Kdam and Thlea Ma’am near Phnom Penh, the capital city, where traffic is heaviest, and construct a bypass to detour around the urban areas of Kampong Chhnang and Oudong, increasing the transportation capacity and improving the transportation efficiency in the target area.
* Including AH1, the Asian Highway is a network connecting 32 countries in Asia with a total length of approximately 140,000 kilometers.
(2) Project for Rehabilitation of the Chroy Changwar Bridge
Located in the north section of Phnom Penh, the Chroy Changwar Bridge was constructed in 1963 with funds that included economic and technical cooperation grant assistance based on the Japan-Cambodia Agreement on Economic and Technical Cooperation signed after World War II. However, part of the bridge was destroyed in an explosion during the more recent internal conflict, making the bridge impassable. Repairs for the collapsed portion were carried out with grant aid from Japan in 1992 after the conflict ended, and the bridge was renamed the Japan-Cambodia Friendship Bridge by the current king of Cambodia.
The Chroy Changwar Bridge is part of an important route for commuting and daily activities for residents in the northern part of Phnom Penh, and simultaneously plays an important part in the transportation and goods distribution network between Phnom Penh and nine provinces to the northeast where agriculture, the timber industry and related industries thrive. However, damage can be seen to the bridge shoes and girders caused by an increase in the weight of trucks that was not foreseen at the time the bridge was designed. Restrictions on large vehicles are now in place, which hinder the smooth flow of traffic.
This project will repair and improve the Chroy Changwar Bridge, located in the northern section of Phnom Penh, ensuring the safe and smooth flow of traffic and goods.
(3) Project for Improvement of Equipment for Demining Activities (Phase 7)
Since fiscal year 1998, Japan has procured equipment and provided support for demining work using that equipment to the Cambodian Mine Action Centre (CMAC), a public agency responsible for clearing mines in Cambodia, and Japan has also dispatched experts from Japan and provided other support for demining capacity improvement at the CMAC. With such ongoing support, the CMAC has increased the area it can demine each year from approximately 10.5 square kilometers in 2003 to about 97.3 square kilometers in 2014. The CMAC and others have therefore progressed in the clearing of landmines and unexploded bombs, and the number of deaths and people wounded due to landmines and unexploded bombs is decreasing.
Nevertheless, due to the severity of the conflict, there still remain many areas contaminated with landmines and unexploded bombs, resulting in 154 victims of explosions in 2014. Continuing the clearance of landmines is thus a priority from the perspectives of resident safety and socioeconomic development in Cambodia.
By providing the equipment and materials necessary for demining work, this project will allow the CMAC to continue making progress in Cambodia.
Japanese ODA Loan
(a) Terms and Amounts of Loan
|Annual interest rate (%)||Repayment
|National Road No. 5 Improvement Project (Prek Kdam- Thlea Ma’am Section) (II)||17,298||0.01||0.01||40||10||General, untied|
(b) Executing Agency
Ministry of Public Works and Transport
Address: Norodom Boulevard, Phnom Penh, Cambodia
(c) Planned Implementation Schedule
(1) Completion of project: October 2019 – when the roads are opened for service
(2) Consulting services (including detailed design work): Contracted in April 2015
(3) Tender announcement of initial procurement package for international competitive bidding on project construction: Planned for October 2016
Procurement package titles:
1) Thlea Ma’am-Kampong Chhnang Road Repairs
2) Kampong Chhnang-Prek Kdam Road Repairs and Bypass Construction