Title

Cambodia: Sharing the Reform Process Learning from the Phnom Penh Water Supply Authority
Country
Cambodia
Summary

Cambodia’s Phnom Penh Water Supply Authority (PPWSA) plagued with maladies of inefficient service, poor coverage and financial losses leading to inefficient water usage, water loss and degradation of water quality, which in turn had affected the environment. PPWSA undertook major reforms and transformed a war-ravaged water utility into a commendable model which had made it one of the more successful water service providers.
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Keywords
Urban/WASH Financing
Lessons Learned

The PPWSA has shown that reforms become successful if the governance framework is supportive and public utilities can make profits or at least break even. The reform does not happen overnight, changes in institutional arrangements and management practices took over 15 years.

The success of PPWSA is a result of several factors including sufficient vision and leadership to push through a culture of change, a desire for change at the local political level , and sufficient autonomy to shared objectives.

This case illustrates that a public sector utility can implement a management approach more akin to that of a private sector company based on results and incentives.

Risks which were identified during the transformation including financial viability of PPWSA, security situation within the country, and government’s inability to carry out reforms. Changes on annual tariffs, finance of connections, flexibility in policy formulation and institutional proposal proved successful.
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