Japan adds a third loan phase to southwest Phnom Penh irrigation works

The new loan expands an existing programme

The Southwest Phnom Penh Irrigation and Drainage Rehabilitation and Improvement Project has been developed in multiple financing phases. The latest agreement is Phase III, covering further rehabilitation and improvement of irrigation and drainage infrastructure around the Roleang Chrey and Kandal Stung-Bati subprojects.

Cambodia's Ministry of Water Resources and Meteorology is the executing agency. JICA lists a maximum loan amount of ¥24.237 billion, a 25-year repayment period and a seven-year grace period. The scope also includes consulting services, support for farmer water-user organisations and agricultural guidance alongside physical infrastructure.

The third phase is partly a response to revised flood-control needs. Japan's ex-ante assessment says design changes were required after severe flooding in 2024 increased the need for additional measures.

For practical context, see Cambodia economy and finance. This development also connects with Cambodia launches ILO certification programme for financial educators.

A signed loan is not the same as completed flood protection

For households, farms and businesses in the three provinces, the project will matter when the canals and drainage capacity function as intended, not because of the headline loan amount. The stated objectives are to improve agricultural productivity while reducing flood damage in rural areas southwest of Phnom Penh.

Those benefits will arrive unevenly as individual components are completed. A financing agreement does not mean every property in the wider project area is already protected from flooding. JICA's schedule puts completion of Phase III in May 2030, defined as the point when the facilities are placed into service.

The works also have local social and environmental impacts. Japan's project assessment identifies land acquisition and involuntary resettlement in parts of the two subproject areas, together with environmental monitoring during construction and operation.

A September site visit confirms the programme is active

By September, the project was no longer only a financing announcement. On 16 September, Cambodia's water resources minister accompanied a Japanese delegation to the Kandal Stung-Bati site in Kandal Province to review progress on the wider ODA-backed programme.

That later update is important for interpreting the June agreement. Phase III adds funding to a long-running infrastructure programme, so residents and property owners should distinguish the overall 2030 horizon from the actual completion status of canals and drainage works near a specific location.