Japan Extends $46 Million Loan for Phnom Penh Flood Control Project
Japan Extends $46 Million Loan for Phnom Penh Flood Control Project
PHNOM PENH, April 23, 2026 — Cambodia and Japan signed a new yen loan agreement worth 6.908 billion yen ($46 million) on Thursday to finance flood protection and drainage improvements in Phnom Penh, in the latest sign of expanding infrastructure cooperation between the two countries.
The agreement was signed at Cambodia’s Foreign Ministry by Deputy Prime Minister and Foreign Minister Prak Sokhonn and Japanese Ambassador Ueno Atsushi.
The funding will support the Flood Protection and Drainage Improvement Project in Phnom Penh Capital City (I), aimed at strengthening the capital’s resilience against seasonal flooding and improving urban water management.
Phnom Penh has faced recurring flood risks in recent years due to rapid urbanization, inadequate drainage capacity and increasingly intense rainfall during the monsoon season.
Officials said the project is expected to improve stormwater drainage systems, reduce flood damage and enhance living conditions for residents in fast-growing districts of the capital.
Japan has long been one of Cambodia’s largest development partners, supporting roads, bridges, ports, water supply systems and governance reforms through grants, concessional loans and technical assistance.
The latest financing underscores Tokyo’s continued role in Cambodia’s urban infrastructure development as Phnom Penh expands rapidly and seeks to modernize public services.
Cambodia and Japan elevated ties to a comprehensive strategic partnership in recent years, with cooperation spanning trade, investment, security and development assistance.
No timeline for project completion was immediately announced.
