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The encyclopedia · Engineering & Operations · Operational decision · 2014–2024

Cambodia's nine-town water project copied Phnom Penh's model; IED rated it Successful

A $34M ADB loan rebuilt nine provincial water systems and exported Phnom Penh's autonomy-plus-NRW model; IED validated the outcome as Successful in 2024.

Cambodian provincial water utilities (9 towns)

The solution

By the 2000s, Phnom Penh Water Supply Authority (PPWSA) had turned itself into a global model utility, but Cambodia's provincial towns lagged far behind: access ranged from about 12% in Siem Reap to about 64% in Pursat, and non-revenue water (NRW) ran as high as 40% or more, draining revenue through leaks and theft.

In December 2014, ADB signed a $34 million loan for the Urban Water Supply Project covering Kampong Cham, Kampong Thom, Kampot, Pursat, Sihanoukville, Siem Reap, Stoung, Stung Treng and Svay Rieng — new water supply systems, a new distribution zone in Siem Reap, a new system in Stung Treng, and rehabilitation of existing treatment plants and pipelines.

The design went beyond pipes: it corporatized the provincial waterworks and granted them autonomy and NRW-management departments on the model of PPWSA and the Siem Reap Water Supply Authority, targeting NRW reduction from over 40% to under 15% and piped supply for about 58,000 additional residents.

ADB's Independent Evaluation Department validated the completion report on 31 July 2024 with an overall assessment of Successful — evidence that replicating a proven utility operating model, not just installing hardware, is what carries reform to small towns.

Why it worked

  • Autonomy let small utilities price, staff and procure like commercial operators.
  • Dedicated NRW-management units made losses a measurable, owned target.
  • Copying PPWSA's proven playbook beat designing nine bespoke reforms.
  • New pipes only pay off when the operating model runs them well.
What it achievedExport the national champion's playbook to small townsclever

What can be applied

A proven utility operating model travels: autonomy, metering and dedicated NRW-management units can lift a dozen small utilities faster than each town inventing its own reform from scratch.

Aftermath

The project supported Cambodia's goal of 100% piped water coverage in urban areas by 2025, and the IED's Successful rating in 2024 signalled the model was working; ADB has continued financing water supply expansion in Cambodian towns, and provincial utilities keep copying the PPWSA playbook.

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