AKP Phnom Penh, January 22, 2025 -- Minister of Industry, Science, Technology & Innovation H.E. Hem Vanndy met here on Jan. 22 with a delegation from the French Development Agency (AFD), led by its Country Director in Cambodia Mrs. Sandrine Boucher 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 organisation 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.

According to the Ministry of Industry, Science, Technology & Innovation (MISTI), 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 system. The new system is capable of forecasting service costs, calibrating revenues, and generating reports and guiding policy decisions.

H.E. Vanndy commended AFD for its support and urged the agency to explore replicating 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, emphasising 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.

H.E. 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.

AKP