Press Releases
Signing and Exchange of Notes concerning Yen Loan for the Kingdom of Cambodia for the Development of Regional Hospitals
March 13, 2024
On March 13, in Phnom Penh, the capital of the Kingdom of Cambodia, Mr. KOMURA Masahiro, Parliamentary Vice-Minister for Foreign Affairs of Japan, and H.E. Mr. SOK Chenda Sophea, Deputy Prime Minister, Minister of Foreign Affairs and International Cooperation of the Kingdom of Cambodia, signed and exchanged notes for yen loan project up to 21.104 billion yen in total.
（Note）Yen loan: Cooperation in the form of loans to developing countries for infrastructure and other financially necessary funds under moderate conditions (low interest rates and long repayment periods). For developing countries, since the funds are subject to repayment to Japan, it is expected to lead to effective utilization and self-sustaining development.
- The outline of the project
In Cambodia, there is a large disparity of health care service between the capital and the provinces, so it is necessary to improve the quality of medical services and physical access to them in the provinces. In addition, although the increase in morbidity and mortality from non communicable diseases is becoming more serious, most hospitals, except for the national hospital in the capital, cannot provide diagnosis and treatment of non communicable diseases such as malignant tumors, cranial nerve diseases, and heart diseases.Therefore, people living in rural areas have to travel to the capital or surrounding countries for medical treatment.
This project aims to improve access to advanced medical care in rural areas by providing medical facilities and equipment necessary to upgrade provincial hospitals to regional hospitals capable of providing advanced medical care in Siem Reap and Kampong Cham provinces, which will reduce disparities of medical services between the capital and rural areas and improve the health of local residents. This project, which improves the quality of local medical services and physical access to medical services, can be positioned as a high-priority project in Cambodia's national development plan, which emphasizes rural development. It is expected to contribute to further strengthening the relationship between the two countries by assistance for the area that Cambodia places importance. - Loan terms
- Interest rate：TORF＋0.3% per annum（lower limit interest rate is 0.1%. 0.2% annum for the consulting services portion）
- Repayment period：30 years（including a 10-year grace period）
- Procurement terms：Untied
(Reference1) TORF（Tokyo Term Risk Free Rate）
It is called the Tokyo term risk-free rate, and is an interest rate index used to express variable interest rates on yen loan.
(Reference2) Basic Data on the Kingdom of Cambodia
The Kingdom of Cambodia has an area of approximately 180,000 square kilometers (approximately 0.48 times Japan), a population of approximately 16.95 million people (2021, World Bank), and a gross national income (GNI) per capita of 1,550 USD (2021, World Bank).