Germany Loans Cambodia $55M to Enhance Rural Power Grid and Energy Efficiency

• 26 November 2025
• Local News
• 851 Views

PHNOM PENH, Cambodia – Germany has provided two concessional loans totaling €47.5 million, equivalent to approximately $55 million USD, to support the operation and expansion of electricity supply in rural areas of Cambodia.

The concessional financing agreement was signed on November 19, 2025, by Deputy Prime Minister Aun Pornmoniroth, Minister of Economy and Finance, representing the Royal Government of Cambodia, and Ms. Thao Nguyen, Country Manager for Cambodia, Laos, and Vietnam at the headquarters of the German Development Bank (KfW), representing the Government of the Federal Republic of Germany.

A press release from the Ministry of Economy and Finance indicated that the total amount of €47.5 million will be allocated to two phases: €30 million will be used for the implementation of the second phase of the Energy Efficiency Project for Rural Electricity Supply, and the remaining €17.5 million will fund the third phase of the same project.

Both phases of the project are aimed at ensuring an efficient, environmentally and socially sustainable energy supply in Cambodia’s rural regions through investment in electricity transmission and distribution systems. The Ministry of Economy confirmed that this investment will focus on expanding the 22 KV medium-voltage network in areas surrounding Siem Reap Province, extending coverage to rural areas in Oddar Meanchey, Kampong Thom, and Preah Vihear provinces, constructing and expanding substations, and building underground transmission lines and battery energy storage systems.

Through this concessional loan, Deputy Prime Minister Aun Pornmoniroth expressed profound gratitude to the Government and people of Germany for their valuable financing contribution to Cambodia’s enhanced development. Cambodia has previously received grant financing for rural electricity development projects. (read more)

• MEF
• Rural electricity
• Concession loans