Japan International Cooperation Agency ( Jica ) has signed a loan agreement with the Government of Cambodia to provide official development assistance ( ODA ) for flood protection and drainage improvement in Phnom Penh City. 

Aun Pornmoniroth, Cambodia’s deputy prime minister and minister of economy and finance, and Jica executive senior vice-president Miyazaki Katsura signed the agreement.

In recent years, flooding has become increasingly widespread in Phnom Penh due to heavy rains and insufficient drainage infrastructure. Many Japanese companies have been expanding their presence in the Cambodian capital.

The project, expected to be completed in 2030, aims to mitigate damages from floods by developing and rehabilitating drainage facilities in the southwestern area of Phnom Penh, thereby contributing to the city’s sustainable urban development and supporting the continued growth of corporate economic activities. The project contributes to Sustainable Development Goals 11 ( sustainable cities and communities ) and 13 ( climate action ). 

The loan totals 6.9 billion yen ( US$44 million ), with a 25-year repayment period and an interest rate of Torf ( Tokyo term risk-free rate ) plus 25 basis points.