Japan Gives Loan for Water Supply

By Chun Sakada, VOA Khmer
Original report from Phnom Penh
18 March 2009

The Japanese government provided more than $35 million in low-interest loans to Cambodia Wednesday, to support construction projects for a new water supply station in Phnom Penh.

The need for a new station was driven by an increasing demand for water in Phnom Penh due to the increase in population and commercial properties, the Japanese Embassy said in a statement.

The water supply station will be constructed under the Phnom Penh Water Supply Authority, in Niroth sangkat, Meanchey district, increasing the water supply for 470,000 people, the embassy said.

Wednesday’s deal was signed by Japanese Ambassador Katsuhiro Shinohara and Foreign Minister Hor Namhong.

“This loan is very important for Cambodia to develop the water supply in Phnom Penh,” Hor Namhong told reporters after the signing. “The people are increasing in Phnom Penh, and they need water supply, to avoid the spread of various diseases.”

Japan promised to continue to provide aid to Cambodia for development, even though Japan is meeting an economic crisis, he added.

Wednesday’s loan was a first for water supply in Cambodia. Japan gave Cambodia $67 million in grants in the 1990s to improve Phnom Penh’s water supply. It gave more than $14 million in grants in 2000 to improve Siem Reap water.

Japan also announced Wednesday a grant of $5.5 million to the Cambodian Mine Action Committee, to help clear landmines in the northwest.

Japan provides Cambodia with 4.1 bil. yen in new aid

PHNOM PENH, Mar. 18, 2009 (Kyodo News International) -- Japan on Wednesday provided Cambodia with a loan for water supply and a grant for demining activities, together worth a total of 4.1 billion yen.

At a signing ceremony in Phnom Penh, Japanese Ambassador Katsuhiro Shinohara said the loan worth just over 3.5 billion yen is for a water-supply infrastructure project in the capital, while the grant worth at 548 million yen will be used to procure equipment to clear the countryside of land mines.

Deputy Prime Minister and Foreign Minister Hor Namhong said at the ceremony that the huge amounts of loans and grants provided by Japan to date have greatly contributed to the economic development and poverty reduction in Cambodia.

When Japanese Foreign Minister Hirofumi Nakasone visited Cambodia from Jan. 10 to 11 and met with Prime Minister Hun Sen and Hor Namhong, he announced support for the water-supply infrastructure project and pledged Japan would continue to prioritize its assistance to Cambodia, including in the construction of roads, bridges, and other infrastructure and in human resources development.

Since 1994, Japan's mine clearance assistance to Cambodia has amounted to $90.2 million, including the new grant.

Cambodia remains one of the poorest countries in Asia with some 30 percent of its population of 14 million living below the poverty line.