On June 25, the Japan International Cooperation Agency (JICA) signed a yen loan agreement (Loan Agreement: L/A) for the “Phnom Penh Southwest Irrigation and Drainage Facilities Rehabilitation and Improvement Project (Phase III).” The agreement was signed that day by Ahn Ponmonirat, Deputy Prime Minister and Minister of Economy and Finance of the Kingdom of Cambodia, and Kazumasa Sanai, Director of the JICA Cambodia Office.
Scenes from the signing ceremony (Photos courtesy of the Ministry of Economy and Finance and the Ministry of Water Resources and Meteorology of Cambodia)
The objective of this project is to improve agricultural productivity and mitigate flood damage by renovating and maintaining irrigation and drainage facilities in impoverished rural areas in the southwestern part of Phnom Penh, thereby contributing to the improvement of farmers’ livelihoods. Furthermore, it will help reduce flood risks in the Phnom Penh metropolitan area, where many Japanese companies have established operations, thereby contributing to the business continuity of Japanese firms and improving the local investment environment. This cooperation not only addresses local social issues but also helps foster a favorable business environment.
The business overview is as follows.
Phnom Penh Southwest Irrigation and Drainage Facilities Rehabilitation and Improvement Project (Phase III)
Southwest Phnom Penh Irrigation and Drainage Rehabilitation and Improvement Project (III)
・Country (Target Region)
Kingdom of Cambodia (Kampong Speu Province, Takeo Province, Kandal Province)
・Business Objectives
By renovating and maintaining irrigation and drainage facilities in impoverished rural areas in the southwestern part of Phnom Penh, this project aims to improve agricultural productivity and mitigate flood damage, thereby contributing to the improvement of farmers’ livelihoods.
・Business Activities
1. Renovation and Maintenance of Irrigation and Drainage Facilities (Lorencelli District, Khandarstan-Bati District)
2. Consulting services and soft components (establishment of irrigation associations, agricultural guidance, etc.)
・Loan Amount (Maximum)
24.237 billion yen
・Interest Rates
Main sequence: TORF+35bp
Consulting Services: 0.80%
・Redemption Period
25 years (including a 7-year grace period)
・Procurement Terms
General Untied
・Implementing Agency
Ministry of Water Resources and Meteorology
・ Contributing to the Achievement of the SDGs
Goal 1 (End Poverty)
Goal 2 (Zero Hunger)
Goal 13 (Take concrete action on climate change)
・Schedule for Future Project Implementation (Tentative)
1. Scheduled completion date: May 2030 (The project will be considered complete upon the handover of the facility)
2. Scheduled timing for sending invitations to bid for consulting services (detailed design, etc.): Already hired
3. Announcement of the first package for the main construction work through an international competitive bidding process: Contract awarded
© Source JICA