The Japan International Cooperation Agency (JICA) has signed an agreement with the Cambodian government to provide a loan of up to 9.216 billion yen for the Phnom Penh City Transmission and Distribution System Expansion Project (Phase 2) (II).

The project aims to increase the number of substations and expand the transmission and distribution network in Phnom Penh to stabilise the power supply in the metropolitan region. The loan funds will be allocated to public works required to construct the substations and expand the transmission and distribution system, to equipment procurement, and to consulting services (basic design work, detailed design work, bidding assistance and construction supervision).

Accompanying stable economic growth in recent years, the demand for power has reportedly risen rapidly in Cambodia. Although the operation of large-scale power plants has advanced, increasing the amount of power produced, the capacity of the power transmission and distribution facilities in the Phnom Penh metropolitan area is considered inadequate, such that a stable supply of power cannot be provided. In addition, there is lack of system control, resulting in widespread effects during power outages, which require a long time for restoration.

Implementation of the project is expected to alleviate the capacity inadequacy of substations, which hinder the power supply, enable a stable supply of power over a wide area, and enhance the reliability of the transmission system, particularly in Phnom Penh. These measures are also expected to contribute to economic development in the area.

The project is scheduled for completion in June 2021, when the facilities are put into service. Another loan by JICA was also signed in March 2015 for 3.816 billion yen for stage I of the project.