PHNOM PENH • Cambodia will ask Japan to invest US$800 million (S$1.1 billion) in a skytrain system for its capital Phnom Penh, Prime Minister Hun Sen said yesterday during a visit to Tokyo.

Inadequate infrastructure, particularly in rural areas, has partly deterred investors in Cambodia, one of the world's poorest countries.

Mr Hun Sen said on Facebook that the skytrain would link the capital to its international airport.

"Currently, many Japanese investors are interested in investing in Cambodia," he said.

In May, the Japan International Cooperation Agency confirmed that it would begin work on a feasibility study for the electric skytrain this month.

Aimed at reducing traffic congestion in the capital, the urban railway is expected to include more than 10 stations and have a train capacity of a three-car train to accommodate 330 people.

Mr Hun Sen, who is on a three- day visit to Japan, said Cambodia and Japan would also sign two other agreements following talks with Japanese Prime Minister Shinzo Abe.

Trade between Cambodia and Japan last year was US$1.3 billion, according to Mr Hun Sen.

Although China dominates the investment landscape in Cambodia, Japan is an important player and is the third-largest investor in the South-east Asian nation. Since 1992, it has also been Cambodia's biggest donor, giving more than US$2 billion in official development assistance.

Japan's embassy in Phnom Penh did not reply to a Reuters request for comment.

Neighbouring Thailand has three skytrain lines and an underground system in its capital Bangkok, with more planned.

REUTERS, PHNOM PENH POST/ASIA NEWS NETWORK