The Phnom Penh Water Supply Authority (PPWSA) has been facing a rapidly increasing water demand since the early 2010s, spurred by intense construction activities and population growth. After doubling its water production capacity between 2012 and 2017, PPWSA now aims at maintaining its coverage of water demand and expand its service area to 100% of the city by 2025, with the joint support of the Agence française de développement (AFD), the European Investment Bank (EIB) and the European Union (EU).

The Bakheng Water Supply Project is the major infrastructure project defined in PPWSA’s 2016-2030 Third Master Plan. The total production capacity of the facilities will be 390,000 m3/day constructed in 2 phases. This additional capacity will be enough to meet the current shortage in Phnom Penh, which is estimated at 200,000 m³ of water per day during the peak of the dry season. Only one year after the groundbreaking ceremony presided by the Prime Minister of Cambodia, the Phase 1 of the project has already reached 60% completion and is set to be put in operation in the first quarter of 2023. The full capacity will be reached one year later, after completion of phase 2.

The project is financed by two loans worth 186.4 M$ from the Agence Française de Développement (AFD), a 100 M$ loan from the European Investment Bank (EIB), an up to 15 M$ grant from the European Union (EU) through the Asia Investment Facility and direct investment by PPWSA worth 80 M$. The EU grant targets specifically the connection to the poor communities living in the peri-urban areas of Phnom Penh.

During the field visit, Yazid Bensaïd, AFD Regional Director for Southeast Asia said: “AFD is pleased with the rapid progress of the Bakheng station. Our partner of more than 20 years, PPWSA, is once again demonstrating its efficiency in the implementation of large-scale works. As the dry season is already well underway and pressure on water resources is increasing, this progress is a source of hope for the inhabitants of Phnom Penh!"

Kris Peeters, Vice President of the EIB, in charge of operations in Cambodia, said:  “Cooperation between the Royal Government of Cambodia and Team Europe, including the European Investment Bank, the Bank of the European Union, on the implementation of Bakheng project is an excellent example of how nations can work together to improve lives and economic, social and health outlooks for their people. Together, we laid the foundation for green, sustainable growth and development of Phnom Penh, and built bridges between Cambodia and the European Union based on solidarity and mutual respect. Easy access to safe, clean drinking water will soon become a reality for hundreds of thousands of people in Phnom Penh and I am delighted to see the EIB be a part of this amazing achievement. I am confident that the introduction of the EIB Global, a dedicated branch for the EIB’s operations outside the EU, will allow us to replicate projects like Bakheng and increase our impact in over 160 countries around the globe we support.”

“There has been a lot of  progress made for Bakheng Water Supply construction works as we see today, a year after our ground breaking ceremony in 2021. We are delighted to see this progress, and that the European Union has supported one of the most important infrastructure projects in Cambodia. It will address the shortage of drinkable water supplies in Phnom Penh, by ensuring that the residents will have sufficient water supplies in the coming years, creating opportunities for thousands of jobs and raising the living standard of the population. Bakheng programme represents a concrete example of  the spirit of Team Europe, where we mobilise our joint investments for the benefit of Cambodia, making Phnom Penh a better place to live and invest in the near future!” said Mr.  Tihamer CZIKA, Chargé d’Affaires a.i. of the European Union Delegation to Cambodia.    

His Excellency LONG Naro, Director General of PPWSA, said: “In collaboration with the Agence Française de Développement (AFD), the European Investment Bank (EIB) and other development partners, PPWSA keeps renovating, rehabilitating and developing our water production facilities and networks. After completion of Bakheng water supply project in 2024, our production capacity will increase from 600,000 m3/day to 1,000,000 m3/day. This will respond to the increased water demand in Phnom Penh and the expansion of the capital in every directions.  The completion of this project will contribute to the achievement of the CSDG Goal 6 of the Royal Government of Cambodia aiming 100% of people living in urban areas having the access to clean drinking water by 2025.”

About the Agence Française de Développement

Agence Française de Développement Group (AFD Group) implements France’s policy in the areas of development and international solidarity. It finances, supports and accelerates transitions towards a more coherent and resilient world. Comprised of AFD, which finances the public sector and NGOs; Proparco, which finances the private sector; and soon, Expertise France for technical cooperation, the Group finances, supports and accelerates transitions towards a more resilient and sustainable world.

With our partners, we are building shared solutions with and for the people of the Global South. Our teams are active in more than 4,000 projects in the field – in overseas France, in some 115 countries and in crisis areas, working to promote the “common goods” that are climate, biodiversity, peace, gender equality, education and health. It’s our way of contributing to the commitment France and the French people have made to achieve the Sustainable Development Goals. Towards a world in common. http://www.afd.fr   

About the European Union

The European Union (EU) is the economic and political union of 27 Member States. Together, the European Union has built a zone of stability, democracy and sustainable development while maintaining cultural diversity, tolerance and individual freedom. In 2012, the European Union was awarded the Nobel Peace Prize for advancing the goals of peace, reconciliation, democracy and human rights in Europe. The European Union is the world's largest trading bloc, and the world's largest source and destination of foreign direct investment. Collectively, the European Union and its member countries are the largest donors of Official Development Assistance (ODA), providing more than half of ODA globally.

The 27 Member States of the European Union (in alphabetical order) are: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

About the EIB in Cambodia

The European Investment Bank has been actively supporting the sustainable development of Cambodia since 2018. To date, the EU bank has invested EUR 260 million in the country improving access to drinkable water, rural infrastructure including rehabilitation of rural roads and irrigation systems; and with it improving the quality of lives for millions of Cambodians. The EU Bank works together with the European Union, the Royal Government of Cambodia and other development partners in the country.  For more information on the Bakheng Water Project please see the video in this link to YouTube.

About PPWSA

Once a war-torn water utility, Phnom Penh Water Supply Authority (PPWSA) has become one of the most successful water utilities in the region and worldwide recognition following its remarkable transformation. PPWSA is continuing to supply clean water 24/7 at the reasonable price to people living in Phnom Penh and Takhmau cities without overlooking low income people. To date, PPWSA has a total production capacity of 600,000 m³/day, the water network have been rehabilitated and expanded to 3,956 km, increasing number of customers to 439,017 connections (38,634 connections of low income people) and covering round 94% of Phnom Penh Capital and Takhmau. http://www.ppwsa.com.kh/en