Japan Offers Concession Loan 2,632 million Yen to Cambodia
Monday, March 26, 2007
Phnom Penh: Responding to the proposal of Cambodia government and standing on the trend to encourage the effort to keep political stability and development of Cambodia Kingdom, the government of Japan decided to offer Cambodia government in concession loan totally 2,632 million Yen (approximately $22 million).
The concession will be provided by Japan Bank for International Cooperation(JBIC)-agent to operate loan concession aid of Japan government in order to process “Electric System Development Program of the Mekong Great subregion (the expand of Ror Bieng gap in Cambodia).
Mutual letter of the aid was signed on 23-March-07 by Deputy Prime Minister Hou Namhong, Minister of Ministry of Foreign Affair and International Cooperation and Mr. Takahashi Fumiaki, the Japan ambassador in Cambodia.
The Japan ambassador said that the Ror Bieng gaps of Cambodia are expected to construct a specific economic zone which is nearest to the only one international harbor in Cambodia in order to increase development speed of Cambodia industry and economics by foreign direct investment and to raise employment of Cambodian people.
Conditions of the concession are in 3 points: 1. interest rate in 0.01% per year, 2. duration to repay in 40 years by including additional time, 3. condition of supply by international bids. By including the final loan, the concession loan of Japan that has promised to contribute to Cambodia equals 15,951 million Yen (approximately $132,519,000US).
