Japan Extends Nearly USD 300 Million Loan to Cambodia for Water and Electricity Projects

• Sommana Yan
• 13 October 2025
• Local News
• 1292 Views

In a significant boost to Cambodia’s infrastructure development, the Japanese government has agreed to provide a concessional loan of nearly $300 million. The funds are earmarked for the expansion of water supply and electricity distribution systems in the capital, Phnom Penh.

A formal signing ceremony took place today, led by Deputy Prime Minister Prak Sokhonn, Minister of Foreign Affairs and International Cooperation, and Mr. UENO Atsushi, Japan’s Ambassador Extraordinary and Plenipotentiary to Cambodia.

The financial assistance comprises two key projects:

1. Approximately USD143.5 million (21.5 billion yen) will be allocated to enhance the Niroth water supply system.
2. An additional USD 152.7 million (22.9 billion yen) will support the third phase of the electricity transmission and distribution system in Phnom Penh.

The Ministry of Foreign Affairs and International Cooperation announced that this loan agreement underscores Japan’s ongoing dedication to advancing Cambodia’s socio-economic development. It also reinforces the comprehensive strategic partnership between the two nations, further paving the way for future collaboration.

As Cambodia continues to grow, this financial support from Japan will help ensure that essential services like water and electricity can meet the demands of its urban population, marking an important step toward sustainable development in the region.

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