Press Releases
Signing and Exchange of Notes Concerning Yen Loan Projects to the Kingdom of Cambodia
On 6 September, 2024, in Phnom Penh, the capital of the Kingdom of Cambodia, H.E. Mr. UENO Atsushi, Ambassador Extraordinary and Plenipotentiary of Japan to the Kingdom of Cambodia, 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 the yen loan project of up to JPY 7,988 million for the implementation of Phnom Penh City Transmission and Distribution System Expansion Project (Phase2) (III). (Note 1).
(Note 1) Yen loans: co-operation to lend developing countries the necessary funds for the construction of infrastructure, etc. under moderate conditions (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.
1. Phnom Penh City Transmission and Distribution System Expansion Project (Phase 2) (III) (Loan provision: JPY 7,988 million)
(a) Outline of the subject project
In Cambodia, the urgent issue is to establish a stable power supply system to respond to the increase in electricity demand associated with economic growth. This project aims to stabilization of electricity supply in the capital region by expansion of substations, new transmission, and distribution lines in Phnom Penh.
(b) Terms of provision.
Interest rate: TORF + 0.4% (0.4% per annum for the consulting services portion).
Repayment period: 30 years (including a 10-year grace period).
Procurement terms: untied.
The Kingdom of Cambodia has an area of 181,035 square kilometers (approximately 0.48 times the size of Japan), a population of approximately 16.94 million (World Bank, 2023) and a gross national income per capita of USD 1,810 (World Bank, 2023).