On October 28, the Japan International Cooperation Agency (JICA) signed a Loan Agreement (L/A) with the Government of the Kingdom of Cambodia in Phnom Penh, the capital of Cambodia, for an “Emergency Support Loan for Enhancing Economic Resilience and Stabilizing Energy Supply.” The agreement was signed that day by H.E. Oun Ponmonirat, Deputy Prime Minister and Minister of Economy and Finance of the Kingdom of Cambodia, and Mr. Nozomu Iwama, Director of the JICA Cambodia Office.
Scene from the signing ceremony (Photo courtesy of the Ministry of Economy and Finance of Cambodia)
This project aims to provide financial support to Cambodia—which is facing soaring energy and raw material prices and supply chain disruptions stemming from the situation in the Middle East and other factors—to mitigate the economic and social impacts and support the government’s policies toward energy transition. The project aims to strengthen supply chains and mitigate socioeconomic impacts, thereby contributing to the country’s economic and social stability and promoting its sustainable development efforts. Furthermore, this project will help ensure business continuity for the approximately 400 Japanese companies operating in Cambodia and contribute to strengthening Japan’s own supply chains.
The business overview is as follows.
Emergency Support Loan to Enhance Economic Resilience and Stabilize Energy Supply
Emergency Support Loan to Enhance Economic Resilience and Ensure a Stable Energy Supply
・Country (Target Region)
Kingdom of Cambodia (entire country)
・Business Objectives
In Cambodia, which is facing soaring energy and raw material prices and supply chain disruptions stemming from the situation in the Middle East and other factors, this project through financial support, this project aims to strengthen supply chains and mitigate socioeconomic impacts by supporting the government’s intervention measures for economic protection and energy transition, thereby contributing to the country’s economic and social stability and promoting its sustainable development efforts. Furthermore, this project is a yen loan project that contributes to the “Partnership for Strengthening Asia’s Energy and Resource Supply Resilience” (commonly known as “Power Asia”).
・Business Activities
With the aim of stabilizing the economy and society in the face of the impact of the situation in the Middle East, through a co-financing framework for the Asian Development Bank’s (ADB) “Rapid Intervention for Stabilization of the Economy (RISE) Program” administered by the Asian Development Bank (ADB), we will provide financial support for the implementation of measures related specifically to economic protection (temporary fuel price controls to ensure a stable energy supply) and energy transition (measures to promote the use of renewable energy and strengthen emergency energy response capabilities).
・Loan Amount (Maximum)
30 billion yen
・Interest Rates
Main unit: 2.8%
・Redemption Period
25 years (including a 7-year grace period)
・Procurement Terms
General Untied
・Implementing Agency
Ministry of Economy and Finance
・ Contributing to the Achievement of the SDGs
Goal 1 (End Poverty)
Goal 7 (Affordable and Clean Energy for All)
Goal 8 (Decent Work and Economic Growth)
Goal 10 (End Inequality Among People and Nations)
Goal 13 (Take concrete action on climate change)
Goal 17 (Let’s Achieve Our Goals Through Partnerships)
・Schedule for Future Project Implementation (Tentative)
1. Project completion date: December 2026 (the project will be considered complete upon the final disbursement of the loan)
2. Scheduled timing for sending invitations to bid for consulting services (detailed design, etc.): No consulting services are planned for this project.
3. Announcement of the first package for international competitive bidding for the main construction work: No construction work involving competitive bidding is planned for this project.
This project is a co-financing initiative with the Asian Development Bank (loan amount: 250 million U.S. dollars), and we will implement it in close collaboration with the Bank.
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