The Export-Import Bank of China (Exim Bank) on Wednesday signed up to provide a concessional loan of $121 million to Cambodia for irrigation system and power transmission line development.

The agreement was inked between Cambodian Finance Minister Aun Porn Moniroth and visiting Chairman of the Exim Bank of China Li Ruogu under the presence of Permanent Deputy Prime Minister Keat Chhon.

Some $45 million would go to the Achang irrigation system development project in northern Kampong Chhnang province and about $76 million would be used for the construction of a 115-kilovolt electricity transmission line from capital Phnom Penh to Bavet city in the border with Vietnam.

Keat Chhon said the projects would contribute to boosting the economy and reducing poverty upon completion.

"With the assistance, China is a leading development partner in providing concessional loan to Cambodia for physical infrastructure development," he said. "Chinese assistance has not only helped Cambodia to integrate internally, but also linked the country with ASEAN countries through the connection of transportation, telecommunication, and electricity transmission lines."

Li Ruogu said the Exim Bank would continue to help Cambodia in order to contribute to strengthening the Comprehensive Strategic Partnership of Cooperation between the two countries.