The Japanese government provided more than $35 million in low-interest loans to Cambodia Wednesday, to support construction projects for a new water supply station in Phnom Penh.

The need for a new station was driven by an increasing demand for water in Phnom Penh due to the increase in population and commercial properties, the Japanese Embassy said in a statement.

The water supply station will be constructed under the Phnom Penh Water Supply Authority, in Niroth sangkat, Meanchey district, increasing the water supply for 470,000 people, the embassy said.

Wednesday’s deal was signed by Japanese Ambassador Katsuhiro Shinohara and Foreign Minister Hor Namhong.

“This loan is very important for Cambodia to develop the water supply in Phnom Penh,” Hor Namhong told reporters after the signing. “The people are increasing in Phnom Penh, and they need water supply, to avoid the spread of various diseases.”

Japan promised to continue to provide aid to Cambodia for development, even though Japan is meeting an economic crisis, he added.

Wednesday’s loan was a first for water supply in Cambodia. Japan gave Cambodia $67 million in grants in the 1990s to improve Phnom Penh’s water supply. It gave more than $14 million in grants in 2000 to improve Siem Reap water.

Japan also announced Wednesday a grant of $5.5 million to the Cambodian Mine Action Committee, to help clear landmines in the northwest.