Germany to Lend Cambodia $55 Million for Rural Power Supply Projects

PHNOM PENH, Cambodia (Nov. 19, 2025) — Germany plans to provide Cambodia with a loan worth 47.5 million euros, or about $55 million, to implement the second and third phases of an energy efficiency project aimed at expanding rural electricity supply.

The loan agreements were signed between Deputy Prime Minister Aun Pornmoniroth, who also serves as minister of economy and finance, and Thao Nguyen, country director for Cambodia, Laos and Vietnam at Germany’s development bank KfW.

Of the total funding, 30 million euros will go toward phase two of the project, while 17.5 million euros will support phase three. Both phases are designed to strengthen Cambodia’s rural energy infrastructure by investing in transmission and distribution systems.

Officials said the projects will ensure efficient and sustainable power supply for rural communities, contributing to environmental protection and social development.

Hosting the signing ceremony, Pornmoniroth emphasized the importance of Germany’s support in helping Cambodia meet its energy needs and improve living standards in underserved areas.

The initiative builds on Cambodia’s broader strategy to expand access to electricity nationwide, reduce reliance on fossil fuels and promote inclusive economic growth.