India loan signed to fund dam in Kampong Speu
India loan signed to fund dam in Kampong Speu
India’s state-owned Export-Import Bank agreed to loan $36.92 million to the Cambodian government to fund the development of a dam and reservoir in Kampong Speu province.
The loan will fund the construction of the water management system on the Stung Sva Hab river in Phnom Srouch district. The Sva Hab sits upstream of Stung Prek Tnout, which provides irrigation for parts of Kampong Speu, Phnom Penh and Kandal provinces.
“When there is so much rain during rainy season, the dam will help to store water and stop it from flowing downstream [to Stung Prek Tnout], which will help reduce flooding,” said Chan Youttha, a spokesperson for the Ministry of Water Resources and Meteorology. “In the dry season, the dam will release water to [Stung Prek Tnout], and then it will be used for consumption and agriculture.”
The loan agreement was signed in New Delhi on Saturday by Preeti Saran, secretary (East) of the Ministry of External Affairs of India, and Phan Phalla, undersecretary of state at the Ministry of Economy and Finance. No details about the conditions or terms of the loan were made available.
Youttha said he expected construction on the dam to begin later this year or early next year, and estimated it would take three years to complete the project.
