PHNOM PENH, April 30 (Xinhua) -- Japan agreed Tuesday to provide a loan package of 90 million U.S. dollars to Cambodia for the improvement of a stretch of the national road No. 5 and two bypasses in northwestern provinces, according to a statement from Japanese Embassy to Cambodia.
The agreement was inked between Cambodian Deputy Prime Minister and Foreign Minister Hor Namhong and Japanese Ambassador to Cambodia Yuji Kumamaru under the presence of Cambodian Prime Minister Hun Sen.
The statement said the loan would be used to widen a 47- kilometer stretch of the national road No. 5 between Battambang province and Sri Sophorn town of Banteay Meanchey province and to construct two bypasses in the two provinces.
The loan's interest rate is 0.01 percent per annum with the repayment period of 40 years including 10 years of grace period, it said.
Speaking at the signing ceremony, Hor Namhong said the stretch of the national road No. 5 played an important role for both domestic and international road networks. "It is a section to connect Cambodia's Phnom Penh and Thailand' s Bangkok,"he said."The road will help boost trade and tourism activities between Cambodia and Thailand."
Yuji Kumamaru said Japan hoped that the project would contribute to the improvement of economic and social development of Cambodia and thus strengthen the friendly relations between the two nations.
Since 1992, Japanese loan and grant aid to Cambodia have amounted to about 2.1 billion U.S. dollars, according Japanese Embassy to Cambodia.