Drinking water supply in Phnom Penh – problem-shed, policy-shed and watershed

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Contributed by:Tania Alarcon

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Article last edited 20 May 2013 by TAlarcon
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As described by Islam and Susskind, a watershed is an area of land that drains into a common body of water and is sometimes called a river basin; a policy-shed is a geographic area over which a governmental entity has legislative authority; and a problem-shed is a geographic area that is large enough to encompass management problems, but small enough to make implementation feasible [1]. The success of the Phnom Penh Water Supply Authority (PPWSA) was largely dependent on the ability of the utility and the government of Cambodia to make decisions and operate within the problem- and policy-sheds but continued success will depend on management practices within all three “sheds”.

In 1993, the PPWSA as an institution was dysfunctional, demoralized, corrupt, and nearly bankrupt [2]. It provided service for only 10 hours per day to approximately 20 percent (%) of the population of Phnom Penh and water losses due to leaks and illegal connections amounted to over 70% [3]. The initial problem-shed could have been defined as the municipality or the entire city of Phnom Penh, which would have made implementation of management and operational changes more difficult. Instead, the PPWSA focused on the institution itself and on rehabilitation of the existing water system [2][4]. Under the direction of Ek Sonn Chan (the General Director since 1993), the PPWSA underwent a major structural reorganization that decentralized its internal operations and placed planning responsibility and accountability within each operating department [3]. Incentives, like higher salaries and bonuses for good performance were instituted as well as penalties for poor performance. The utility also focused on replacing old pipes, performing maintenance and repairs in a timely manner, establishing a complete user database, metering connections, and imposing fines for illegal connections [4]. Once management and service quality had improved, the PPWSA expanded its problem-shed to include additional areas of Phnom Penh and households in the inner city that could not afford the costs of water service. Currently the utility provides subsidies between 30% and 100% of the connection fee and a 40% discount of the water bill for poor households [2]. The service area in 2009 covered approximately 450 square kilometers (km2) compared to 100 km2 in 1993 and it continues to expand [2].

The entire country of Cambodia was established as the policy-shed when the government decided in the 1990s that water was an economic and social good and granted legal independence to all public institutions with economic characteristics [2]. This allowed the PPWSA to operate as an independent business-like institution without any political interference, with checks and balances, and with the ability to set and implement water tariffs [2]. Currently, the policy-shed includes the city and municipality of Phnom Penh with oversight and guidelines related to water supply being provided by the Ministry of Interior, the Ministry of Finance, the Ministry of Industry, Mines and Energy, the Ministry of Public Works and Transport, the Ministry of Health, and the Ministry of Water Resources and Meteorology [5].

Cambodia is located almost completely within the Mekong River Basin and has three major rivers (Mekong, Bassac and Tonle Sap) that are the main source of water for Phnom Penh [2][6]. Although essential for water supply, this watershed did not play a major role in the transformation of the PPWSA but it will play a role in the future success of the utility. The three rivers could see their flows and water quality reduced because of upstream development of the Mekong River Basin, climate change, increase demand due to population growth and tourism, and increased pollution due to untreated industrial and domestic wastewater discharges [7][8][9]. The PPWSA must rely on the Mekong River Commission (MRC) to coordinate and negotiate development plans on the Mekong River Basin while preventing negative impacts on the sustainability of water resources in Cambodia. Unfortunately, the MRC does not have enforcing power over its member countries (Cambodia, Thailand, Vietnam, and Lao PDR) and the two upper riparian countries (China and Myanmar) are not members of the institution [10]. This has led to an increasing number of unilateral and bilateral plans to begin or expand hydropower, mainly in Lao PDR and China [6]. To avoid future problem to drinking water supply, the policy-shed must adapt and work with the MRC to address any potential changes to seasonality or volume of flow of the Mekong River that may impact water resources in Phnom Penh and in Cambodia. Groundwater resources are plentiful in Cambodia and could be exploited if surface water is no longer viable, but climate change will also affect the quantity and quality of groundwater [9].

The PPWSA authority has been successful at providing clean drinking water to over 90% of the population of Phnom Penh. This success was possible because of decisions and steps taken in the policy-shed (Cambodia) and in the initial problem-shed (a small existing water system), followed by an expansion of the problem-shed to include more areas of the city and poor households. Only after the utility was financially viable and efficiently operated could it consider expanding its coverage area and implementing programs to assist the poor. Continued success will depend heavily on the ability of the PPWSA to manage its problem-shed, but also on actions taken by the MRC and the government of Cambodia (the policy-shed) to limit negative impacts of climate change and upstream development on the watershed (the Mekong River Basin).




  1. ^ Islam, S. and Susskind, L. E. (2013) Water diplomacy: a negotiated approach to managing complex water networks. New York, NY: RFF Press
  2. ^ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 Biswas, A. K., and Tortajada, C. (2010). Water Supply of Phnom Penh: An Example of Good Governance. International Journal of Water Resources Development, 26:2, 157-172, June 14
  3. ^ 3.0 3.1 Das, B., Chan, E. S., Visoth, C., Pangare, G., and Simpson, R., eds. (2010). Sharing the Reforms Process, Mekong Water Dialogue Publication No. 4, Gland, Switzerland: IUCN
  4. ^ 4.0 4.1 Chan, E. S. (2009). Bringing Safe Water to Phnom Penh's City. International Journal of Water Resources Development, 25:4, 597-609, November 18
  5. ^ Asian Development Bank. (2012). Cambodia: Water supply and sanitation sector assessment, strategy, and road map. Asian Development Bank, Mandaluyong City, Philippines
  6. ^ 6.0 6.1 Keskinen, M., Mehtonen, K., and Varis, O. (2008). Transboundary cooperation vs. internal ambitions: The role of China and Cambodia in the Mekong region. In International Water Security: Domestic Threats and Opportunities, Edited by: Pachova, N. I., Nakayama, M. and Jansky, L., United Nations University Press, Tokyo, Japan, pp. 79-109
  7. ^ Heinonen, U. (2008). Millennium Development Goals and Phnom Penh: Is the city on track to meet the goals? In Modern Myths of the Mekong, Edited by: Kummu, M., Keskinen, M. and Varis, O., Helsinki University of Technology – TKK, Helsinski, pp. 95-105
  8. ^ Muong, S. (2004). Avoiding Adverse Health Impacts from Contaminated Vegetables: Options for Three Wetlands in Phnom Penh, Cambodia. Economy and Environment Program for Southeast Asia, Research Report No. 2004-RR5, Singapore
  9. ^ 9.0 9.1 Ministry of Environment and United Nations Development Programme. (2011). Cambodia Human Development Report 2011. Building Resilience: The Future of Rural Livelihoods in the Face of Climate Change. Phnom Penh, Cambodia
  10. ^ Mehtonen K., Keskinen, M. and Varis, O. (2008). The Mekong: IWRM and institutions. In Management of transboundary rivers and lakes, Edited by: Varis, O., Tortajada, C. and Biswas, A.K. Berlin, Heidelberg: Springer, pp.207–226



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ASIASI:Drinking water supply in Phnom Penh – problem-shed, policy-shed and watershed +
ASIContributor Tania Alarcon +
Article CreatorTAlarcon +
Case StudyDrinking Water Supply in Phnom Penh +
Last Edited20 May 2013 +
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