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MHI Signs Yen Loan Agreement for Cambodia: Contributing to Sustainable Urban Development through the Improvement and Rehabilitation of Drainage Facilities | News / PR

Posted on May 7, 2026 by Editor in Chief

The Japan International Cooperation Agency (JICA) signed a Loan Agreement (L/A) with the Government of the Kingdom of Cambodia for the “Phnom Penh Flood Control and Drainage Improvement Project (Phase I)” in Phnom Penh on April 30. The Loan Agreement (L/A) was signed by Mr. Ohn Phongmonirat, Deputy Prime Minister and Minister of Economy and Finance of the Ministry of Economy and Finance of the Kingdom of Cambodia, and Mr. Katsura Miyazaki, Vice President of JICA.

Vice President Miyazaki (left) and Deputy Prime Minister and Minister of Economy and Finance Ohn Phommonirat (right)

Phnom Penh, where many Japanese companies are expanding their business operations, has been suffering from widespread and prolonged flooding due to heavy rains caused by climate change in recent years and the lack of drainage infrastructure. This project will contribute to the sustainable urban development of Phnom Penh and the promotion of economic activities of companies by reducing the serious flood damage through the construction and renovation of drainage facilities in the southwestern part of Phnom Penh.

A summary of the business is as follows

Phnom Penh Metropolitan Government Flood Control and Drainage Improvement Project (Phase I)

Project for Flood Protection and Drainage Improvement in Phnom Penh Capital City (I)

Country (Region)

Kingdom of Cambodia (Phnom Penh Metropolis)

Business Objectives

This project aims to improve the drainage function of rainwater and reduce flood damage in the southwestern part of Phnom Penh, thereby contributing to the improvement of the quality of life and industrial development in the city.

Business

(a) Construction of drainage channel (new box culvert, concrete sheet pile repair)

(a) Construction of drainage channels (open channel rehabilitation)

(c) Construction of drainage facilities (regulating reservoirs and drainage pump stations)

(d) Procurement of equipment for drainage channel maintenance

(e) Consulting services (detailed design work, bidding assistance, construction supervision, support for improving maintenance and management capabilities, etc.)

Loan amount (maximum)

6,908 million yen

Interest Rates

Body: TORF +25bp Consulting Services: 0.8%.

Redemption period

25 years (including 7 years of deferment)

Procurement Conditions

General untied

Implementing Agency

Phnom Penh Metropolitan Government

Contribution to the achievement of the SDGs

Goal 11 (Create a community where people can continue to live)

Goal 13 (take concrete action on climate change)

Schedule for future project implementation (tentative)

(1) Project completion date: December 2032 (project completion at the time of facility provision)

2. expected date of sending invitation for consulting services (detailed design, etc.): July 2026

3. public announcement of bids for the first package of international competitive bids for the main body of work:

Name of procurement package: Wastewater facility construction package

Scheduled date: January 2029

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© Source JICA

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