Japan to fund Cambodia network development

27 March 2007 - Japan will provide a soft loan of $22m to help Cambodia implement its Greater Mekong Power Network development project.

An exchange of notes was signed in Phnom Penh by the Cambodian deputy prime minister and minister of foreign affairs and international cooperation, Hor Namhong and the Japanese ambassador to Cambodia, Fumiaki Takahashi in the presence of Cambodia's prime minister, Hun Sen.

The Japan Bank of International Cooperation (JBIC) will offer the loan at an annual interest rate of 0.01 per cent, with a payment period of 40 years.

The loan will be used to finance a number of projects including the construction of two power transmission cables between Sihanoukville and Kampot, the improvement of electricity equipment, the construction of power transmission network between Phnom Penh and its neighbouring provinces.

To date, the Japanese government has provided over $132m in loans to Cambodia.

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