Japan Extends $162.7 Million Loan to Boost Irrigation and Flood Protection in Cambodia

PHNOM PENH, June 22, 2026 (KPT) – Cambodia and Japan have signed a loan agreement worth JPY 24.237 billion (about US$162.7 million) to finance irrigation and flood protection projects in the southwestern corridor of Phnom Penh, officials said Monday.

Deputy Prime Minister and Foreign Minister Prak Sokhonn and Japanese Ambassador Ueno Atsushi signed the Exchange of Notes and related documents, paving the way for the third phase of the Southwest Phnom Penh Irrigation and Drainage Rehabilitation and Improvement Project.

The Ministry of Foreign Affairs said the financing will be used to upgrade irrigation and drainage infrastructure in a key agricultural zone vulnerable to flooding, aiming to boost productivity and strengthen rural livelihoods. The project is expected to improve water management, reduce flood risks and enhance food security.

Officials said the loan reflects Japan’s continued support for Cambodia’s socio‑economic development and infrastructure modernization. It also underscores expanding ties under the Cambodia–Japan Comprehensive Strategic Partnership, elevated in 2023 to mark the 70th anniversary of diplomatic relations.

Japan has been one of Cambodia’s most important development partners since the 1990s, providing grants, concessional loans and technical cooperation across sectors ranging from infrastructure and environmental protection to human resource development.

According to the ministry, Japan is currently Cambodia’s second‑largest development partner, with assistance focused on long‑term growth and resilience.