Drinking Water Supply in Phnom Penh, Cambodia

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Case Description
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Geolocation: 11° 33' 0", 104° 55' 0.12"

Summary

The Phnom Penh Water Supply Authority experienced a sweeping transformation starting in 1993. The public utility went from being an institution that was almost bankrupt and plagued with corruption and inefficiency to one that is now considered a model for good governance and high quality service. The utility currently provides uninterrupted clean water service to over 90% of the city of Phnom Penh and has consistently increased its profits since 1993 while also paying consistently higher income taxes to the Cambodian Government and providing subsidies for poor households. The extraordinary success resulted from a combination of legislation that granted the utility financial and operational autonomy, government support, and good leadership. Continued success will depend on the ability of the utility to tackle the main threats that affect urban water: population growth, water scarcity, decreasing water quality and pollution, water overuse, climate change, and infrastructure, institutional, and social problems.



Natural, Historic, Economic, Regional, and Political Framework

Background

Phnom Penh, the capital of Cambodia, lies on the confluence of three rivers: the Mekong, Tonle Sap and Bassac rivers (Figure 1). These rivers are the source of freshwater for the city’s population of approximately 1.3 million (approximately 10 percent (%) of Cambodia’s population) [1][2]. Until the late 1960s, many of the residents of Phnom Penh had an uninterrupted 24-hour water supply of reasonable quality water [3]. Political turmoil that began in the late 1960s and continued for the next two decades took its toll on all of Cambodia’s development sectors including urban water management [3]. During the four-year rule of the Khmer Rouge, from 1975 to 1979, people were forced to evacuate Phnom Penh to work in agriculture in rural areas. All water infrastructure in the city was neglected and water supply was limited to a small group of leaders [4]. In 1979, the Phnom Penh Water Supply Authority (PPWSA) restarted operations at 45 % of its initial capacity [1]. The PPWSA as an institution was dysfunctional and staff were under-qualified, underpaid, unmotivated, and lacked efficiency, which led to consumers receiving very poor service during the next decade [1][3].

In 1993, the PPWSA initiated a reform process that dramatically improved its performance. During a 15-year period, between 1993 and 2008, the PPWSA increased its annual water production by 437%, the distribution network by 540%, pressure of the system by 1,260%, customer base by 662%, and the number of metered connections by nearly 5,255%. Unaccounted for water (UFW) was reduced from 72% of treated water produced to 6.19% [3]. The PPWSA is a Public Autonomous Institution which has enabled the utility to consistently increase its profits while also paying consistently higher income taxes to the Cambodian Government and providing subsidies for poor households. The number of poor households connected to the system has steadily increased from 101 to 26,778 between 1999 and 2011 [3][4]. Table 1 shows improvements from 1993 through 2009.

One of the important components that contributed to the improvements of the water utility was donor involvement. The Japan International Co-operation Agency (JICA) has been a major donor since 1991 and continues to provide assistance to the PPWSA on different aspects of water supply, including infrastructure development and management and capacity building[1][3]. JICA also formulated a master plan that served as the road map for operation of the water utility and for coordination of donors [3]. Other donors that have provided support to the PPWSA since 1993 include the Agence Française de Développement (AFD), the United Nations Development Programme (UNDP), the World Bank (WB), and the Asian Development Bank (ADB) [1]. Table 2 shows donor assistance from 1993 through 2009.

Before 1993, the PPWSA was under the control of the governor of the city of Phnom Penh and was run as a government department with no administrative, operational, and financial autonomy[1]. In the 1990s, the Government of Cambodia declared water was an economic and social good and, in 1996, allowed the PPWSA to operate as an independent business-like institution [3]. The Prime Minister also publicly stated in 1997 that everyone, including government institutions and the rich and powerful, had to pay for water services (6). This allowed the PPWSA to become financially self-sufficient by implementing an increasing-block tariff structure, improving the bill collection ratio, reducing operating costs by improving efficiency, metering all connections, and reducing UFW so that much of the water produced can be sold to consumers [3]. The block-tariff structure was implemented after conducting a socio-economic survey for the city of Phnom Penh to determine the ability and willingness to pay of consumers [3]. A system to provide water to poor households was also implemented and involves providing subsidies between 30% and 100% of the connection fee and charging only 60% of the water bill if the household consumes up to 7 m3/month [3].



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

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Contributed by: Tania Alarcon (last edit: 20 May 2013)








  1. ^ 1.0 1.1 1.2 1.3 1.4 1.5 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
  2. ^ Asian Development Bank. (2012). Cambodia: Water supply and sanitation sector assessment, strategy, and road map. Asian Development Bank, Mandaluyong City, Philippines
  3. ^ 3.00 3.01 3.02 3.03 3.04 3.05 3.06 3.07 3.08 3.09 3.10 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
  4. ^ 4.0 4.1 Phnom Penh Water Supply Authority. (2013). History. Organization Structure. Production System. Distribution System. Water Quality. Non Revenue Water. Retrieved from: www.ppwsa.com.kh/en/index.php?page=history