September 6, 2024
PHNOM PENH – The government of Japan has announced it will provide approximately $55 million in loans to expand electrical transmission and distribution networks in Phnom Penh, with the goal of stabilising the capital’s power supply.
Minister of Foreign Affairs and International Cooperation Sok Chenda Sophea and Japanese ambassador to Cambodia Ueno Atsushi will sign an exchange of notes and the accompanying documents for phase two of the “Phnom Penh City Transmission and Distribution System Expansion Project” in a September 6 ceremony, said the foreign ministry.
“The loan underscores Japan’s steadfast commitment to supporting the Cambodian government’s endeavours to foster socio-economic development.
“It also contributes to further strengthening and deepening the Comprehensive Strategic Partnership between the two countries,” it added, in a 4 September press release.
According to the Japan International Cooperation Agency (JICA), the objective of the project is to enhance the stability of the electrical supply in Phnom Penh by providing new substations, transmission lines, distribution lines and related facilities, and rehabilitating the existing substations, thereby contributing to sustainable economic growth in Cambodia.
Ek Bunly, a researcher at the Cambodian Center for Regional Studies (CCRS), noted that Japan has consistently demonstrated its role as a reliable and committed partner in the Kingdom’s development, maintaining strong ties with Cambodia despite shifts in global geopolitics or changes in its own administration.
“Tokyo’s dedication remains steadfast. In 2022, Japan provided over $300 million to expand the Sihanoukville deep-sea port.
“This was followed in 2023 by another significant loan to support irrigation projects. Now, in 2024, Japan continues on the same trajectory, with a focus on improving Phnom Penh’s electrical supply infrastructure,” he told The Post on September 5.
Bunly noted that Japan’s unwavering commitment to the Kingdom’s development was underscored by Japanese foreign minister Yoko Kamikawa, during her visit to Cambodia in July.
He suggested that if these loans are utilised effectively, they could greatly benefit the stability of the capital’s electricity supply.
“Phnom Penh’s growing population, alongside its business and investment sectors, has long been hindered by frequent power cuts and an unreliable electrical grid in certain areas.
“That said, it would be premature to assume that this loan will resolve the issue immediately. The true impact will depend on how effectively the Cambodian government leverages this financial support for the nation’s broader development,” he said.