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Signing of Yen Loan Agreement for Cambodia: Supporting economic growth through the development of the Southern Economic Corridor, strengthening of road network connectivity, and improvement of water supply facilities

Posted on 2023-06-30 by Editor in Chief

The Japan International Cooperation Agency (JICA) signed a Loan Agreement (L/A) with the Royal Government of Cambodia on June 22 in Phnom Penh for three projects totaling up to 32,978 million yen.

The following three projects are covered by the yen loan agreements signed this time.

(1) National Highway No. 5 Rehabilitation Project (Prek Kudam – Sreeramaam) (Phase IV) (Loan amount: 7,205 million yen)

(2) Local road connectivity improvement project (loan amount: 23,692 million yen)

(3) Siem Reap Waterworks Expansion Project (Phase III) (Loan amount: 2,081 million yen)

Details of each business are as follows

(1) National Highway No. 5 Rehabilitation Project (between Prek Kudam and Sreeramaam) (Phase IV)

National Road No. 5 Improvement Project (Prek Kdam- Thlea Ma’am Section) (IV)

(a) Purpose and outline of business

This project will repair and widen the existing road between Prek Kdam and Sreamaam on National Highway No. 5, which connects the capital Phnom Penh to the Thai border, and build a bypass. The project will contribute to the promotion of Cambodia’s economic development by increasing the transportation capacity and improving the transportation efficiency of National Highway No. 5. In addition, the project will contribute to SDGs (Sustainable Development Goals) Goal 3 (Health and Welfare for All) and Goal 9 (Build the Foundations for Industrial and Technological Innovation) through the technical cooperation “Road Traffic Safety Improvement Project on Trunk Roads” in the region to ensure traffic safety in the areas along the road.

The first phase (L/A signed in July 2014, 1,699 million yen), second phase (L/A signed in March 2016, 17,298 million yen), and third phase (L/A signed in March 2020, 11,715 million yen) of yen loans have already been provided for this project, and the current yen loan will be provided for the fourth phase. This project has already been completed. Although the project has been completed, a part of the project cost will be paid after completion, and this loan will be used for the payment.

(b) Project implementing agency

Ministry of Public Works and Transport

Address:Norodom Boulevard, Phnom Penh, Cambodia

TEL: +855-(0)23-722-715

(c) Schedule for future project implementation (tentative)

  1. Project completion date: Completed
  2. Expected date of sending invitation for consulting services (detailed design, etc.): Hired

  3. Publication of bids for the first procurement package through local competitive bidding for the main body of work: contracted

(2) Local road connectivity improvement projects

Rural Road Connectivity Improvement Project

(a) Purpose and outline of business

This project will improve and widen local roads, including bridges and road drainage facilities, in the area along National Highway 5 connecting the capital Phnom Penh to the Thai border, thereby contributing to stable socio-economic development of the area by strengthening road network connectivity, improving access to socio-economic activities for people, and addressing climate change. The project will contribute to the stable socio-economic development of the region. The project will also contribute to SDG Goals 1 (End Poverty) and 3 (Health and Well-being for All).

(b) Project implementing agency

Ministry of Rural Development

Address: 771-773 Preah Monivong Blvd (93), Phnom Penh, Cambodia

TEL: +855-(0)12-599-599

(c) Schedule for future project implementation (tentative)

  1. Project completion date: August 2027 (project completion at the time the facility goes into service)
  2. Expected date of sending invitation for consulting services (detailed design, etc.): June 2023

  3. Publication of bids for the first procurement package through local competitive bidding for the main body of work: Civil Engineering Package (Construction Works)

Scheduled date: October 2024

(3) Siem Reap Waterworks Expansion Project (Phase III)

Siem Reap Water Supply Expansion Project (III)

(a) Purpose and outline of business

This project aims to improve water supply facilities consisting of water intake facilities, water purification plants, and water distribution pipes in Siem Reap, the largest tourist city in Angkor Wat, where the number of tourists is rapidly increasing and urbanization is progressing, and to promote safe and stable water supply services, thereby improving the living environment and promoting the tourism industry in the city. In addition, we will contribute to SDG Goal 3 (to promote the development of the city’s tourism industry). In addition, we will contribute to SDG Goals 3 (health and welfare for all) and 6 (safe water and toilets throughout the world).

The first phase (L/A signed in March 2012, 7,161 million yen) and the second phase (L/A signed in October 2021, 6,336 million yen) of the yen loan have already been provided for this project, and the current yen loan is for the third phase. Although the project has been completed, a portion of the project cost will be paid after completion, and this loan will be used for the payment.

(b) Project implementing agency

Siem Reap Water Supply Authority

Address: Slorkram Village, Slorkram Commune, Siem Reap City-Province, Cambodia

TEL: +855-(0)12-858-006

(c) Schedule for future project implementation (tentative)

  1. Project completion date: Completed
  2. Expected date of sending invitation for consulting services (detailed design, etc.): Hired

  3. Publication of bids for the first procurement package through international competitive bidding for the main body of work: Contract completed

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© Source JICA

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