Minister HEM Vanndy Discusses Strategic Reforms for Cambodia’s Water Supply Sector with AFD

News and Events Wednesday, 22 January 2025

On January 22, 2025, H.E. Hem Vanndy, Minister of Industry, Science, Technology & Innovation, met with a delegation from the French Development Agency (AFD), led by Mrs. Sandrine Boucher, AFD’s Country Director in Cambodia, to discuss advancing reforms within Cambodia’s water supply sector.

Mrs. Boucher reiterated AFD’s commitment to Cambodia’s water sector, highlighting its continued support through the recently signed second tranche of financing for the Bakheng Water Treatment Plant Phase 3. 

During the meeting, AFD’s international experts presented findings from their preparatory mission for the study on institutional organization of water operators. The mission aims to develop reform proposals to accelerate progress toward Sustainable Development Goal 6 (SDG6) and the government’s Pentagonal Strategy Phase1, by strengthening governance, efficiency, and service delivery in the sector.

AFD also handed over a financial model for the Phnom Penh Water Supply Authority (PPWSA) after it has developed the model and trained PPWSA’s staff to use the model. The new model is capable of forecasting service costs, calibrating revenues, and generating reports and guiding policy decisions. 

Minister Vanndy commended AFD for its support and urged the agency to explore adapting the financial model for smaller public utilities while ensuring their integrity and security.

He provided inputs for the mission team as they prepare for the study, emphasizing that reforms must serve the social good and foster economic development, cautioning against restrictive contractual arrangements that could limit the government’s long-term flexibility.

The Minister also stressed the importance of elevating the role of the state, through public utilities, in addressing unmet demand and improving underperforming operators across the country.

AFD welcomed Minister Vanndy’s feedback and committed to refining its mission to support this strategic reform agenda.

By: ក្រសួងឧស្សាហកម្ម វិទ្យាសាស្ត្រ បច្ចេកវិទ្យា និងនវានុវត្តន៍

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