City, Country: Phnom Penh, Cambodia
French partner submitting the project description: French Agency for Development (AFD)
Foreign partners: Phnom Penh Water Supply Authority (PPWSA)
Dates of project: since 2006
A few words on the project…
The French Agency for Development (AFD) supports the local authorities of Phnom Penh in order to increase drinking water treatment capacity and the distribution network for the population of Phnom Penh by providing non-sovereign loans.
Background or General project description
The capital, Phnom Penh, is home to 10% of the population of Cambodia. It has grown from 950,000 to 1.3 million residents over the past decade. The demand for water has grown steadily. Local authorities must therefore respond to this growing demand.
The PPWSA, autonomous public water utility under the authority of the Ministry of Industry, Mines and Energy (MIME), in charge of producing and distributing water in Phnom Penh and the surrounding neighborhoods, had to implement a sustained investment program over the past years in order to meet a steadily increasing demand for water.
Since 2006, the AFD has supported the PPWSA by providing non-sovereign loans to carry out its investments to expand its drinking water network and increase its water treatment capacity.
This project must be considered in regard with two key studies on financing by the AFD:
- The handbook for integrated resources management in transboundary basins of rivers, lakes and aquifers
A manual on the integrated management of water resources in transboundary river basins, lakes and aquifers at the international scale. This collective work (AFD, INBO, GWP, UNECE, UNESCO, GEF) provides practical recommendations that can be used to improve the management of freshwater resources shared between countries.
- Payments for ecosystem services (PES)
Traditional policies alone cannot prevent the degradation of biodiversity. Payments for environmental services can be a solution to address these shortcomings. This is a tool designed to have an impact on the practices of producers in a way that favors the environment. This scheme allows producers to pay voluntarily for an environmental service. It is therefore not a constraint.
Strengths of project
The results are telling : in 2010, less than 50% of residents in the urban area had access to drinking water. Today the coverage rate is 90%. In surrounding neighborhoods, the number of water connections has doubled : 10,000 new households should be connected in each coming year. The public service has today strong performance and technical capacities.
This program is an Asian success story.
About the project : www.ppwsa.com.kh et www.afd.fr
About the handbook for integrated resources management in transboundary basins of rivers, lakes and aquifers : http://www.gwp.org/Global/About%20GWP/Publications/INBO-GWP%20Transboundary%20Handbook/MGIREB-UK-2012_Web.pdf
About the publication on Payments for Ecosystem Services : http://www.afd.fr/webdav/site/afd/shared/PUBLICATIONS/RECHERCHE/Scientifiques/A-savoir/07-VA-A-Savoir.pdf