Press Releases
Signing and Exchange of Notes Concerning Yen Loan and Grant Aid Projects to the Kingdom of Cambodia
On 6 July, 2024, in Phnom Penh, the capital of the Kingdom of Cambodia, H.E. Ms. KAMIKAWA Yoko, Minister for Foreign Affairs of Japan, and H.E. Mr. Sok Chenda Sophea, Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation of the Kingdom of Cambodia, signed and exchanged notes concerning a yen loan project of up to JPY 8,293 million for the implementation of the rehabilitation of National Highway 5 connecting the capital Phnom Penh to the Thai border and a grant aid project of up to JPY 386 million to support young administrative officials to study in Japan.
- National Road No.5 Improvement Project (Thlea Ma’am-Battambang and Sri Sophorn-Poipet Sections)(III) (Maximum loan amount: JPY 8,293 million)
(a) Outline of the project
In Cambodia, it is urgently necessary to increase transport capacity and improve transport efficiency in order to cope with the increase in domestic and international logistics due to economic development. This project aims to increase transport capacity and improve transport efficiency in the target area by rehabilitating and widening existing roads and building bypasses on National Highway No. 5 between Thlea Ma’am and Battambang and between Sri Sophorn and Poipet. The National Highway No.5 is Cambodia's main road linking the capital Phnom Penh and the Thai border and a part of the Southern Economic Corridor. This project is expected to improve the strengthening of regional connectivity.
(b) Loan terms
Interest rate: TORF + 0.4% (0.2% per annum for the consulting services portion).
Repayment period: 30 years (including a 10-year grace period).
Procurement terms: untied. - The Project for Human Resource Development Scholarship (maximum grant amount: JPY 386 million)
Since Cambodia has lost many talented citizens during the civil war that lasted for about 20 years since the 1970s and higher education institutions are still insufficient, development of human resources is an urgent issue. Japan has been taking steps to encourage Cambodia to further strengthen its economic and social infrastructure, and as part of this cooperation, Japan will support young Cambodian administrative officials and others to obtain degrees (master's and doctoral degrees) at Japanese postgraduate schools.
This cooperation is expected to enable up to 26 young Cambodian administrators to study at Japanese universities, contributing to solving Cambodia's future development challenges and further strengthening friendly relations between Japan and Cambodia.
The Kingdom of Cambodia has an area of approximately 180,000 square kilometres (approximately 0.48 times the size of Japan), a population of approximately 16.77 million (World Bank, 2022) and a gross national income per capita of USD 1,690 (World Bank, 2022).
co-operation to lend developing countries necessary funds for the construction of infrastructure, etc. under concessional terms (low interest rates and long repayment periods). For developing countries, as the funds are subject to repayment to Japan, it is expected to lead to effective utilisation and self-sustaining development.
The Southern Economic Corridor refers to the transport infrastructure, such as roads and bridges, linking Thailand, Cambodia and Viet Nam. The development of this economic corridor is expected to enable active movement of people and goods across the borders and promote economic growth throughout the Mekong region.