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Cambodia: Japan loan contingent on telecom reforms Print E-mail
Wednesday, 16 March 2005
Japan, Cambodia's largest donor, has granted a US$ 29 million soft loan to the country to fund a new telecommunications network for a planned industrial region.

Under the low-interest arrangement, the funds would be paid back over 30 years with a 10 year grace period. The loan will fund a fibre-optic network stretching 400 kilometres, as well as other facilities to help the new network function, Japan's ambassador Fumiaki Takahashi said. Cambodia wants to attract foreign investment by developing the corridor, which covers an area where close to half of its population lives.

However, Takahashi said the loan was contingent on telecommunications reform, "including adoption of basic telecommunications regulations and the separation of bodies responsible for the operation, regulation and policy-making".

With the latest loan, Japan has granted or lent Cambodia a total of US$ 132 million during the fiscal year ending March 2005. Japan has provided more than US$ 800 million to Cambodia since 1992.

Source: Agence France-Presse