Bakheng Water Supply Project Phase 3

Phnom Penh has seen its population increase from 0.8 million to 2.3 million inhabitants over the last 3 decades, along with the extension of its boundaries.

Operating the water supply service in the Greater Phnom Penh area is entrusted to the Phnom Penh Water Supply Authority (PPWSA), a state-owned enterprise under the supervision of the Ministry of Industry, Science, Technology and Innovation (MISTI) and the Ministry of Economy and Finance (MEF). The partnership between PPWSA and AFD dates back to 1995, and encompasses the financing of studies, infrastructure development, and technical assistance.

All investment projects funded by AFD align with PPWSA successive Master Plans. As part of these master plans, and in order to meet the increasing water demand stemming from the steady economic and demographic growth, PPWSA water production capacity passed from 100,000 m3/day in year 2000 to 600 000 m3/day in year 2021. In 2025, it will reach 1 000 000 m3/day.

However, following a more-important-than-expected increase in the water demand over the last years, the 3rd Phnom Penh Water Supply Master Plan (2015-2030) had to be updated in 2022, then reviewed in 2023. The new forecasts clearly show that a total production capacity of at least 1.4 million m3/day will be necessary by 2030. 

To meet the revised water supply needs, the Royal Government of Cambodia designed a new project named Bakheng phase 3. 

The Project is included in PPWSA’s third Master Plan (2016-2030), and upon its completion, the Bakheng water treatment plant (600,000 m3/day) will be the largest operated by PPWSA. Whereas the AFD loan of Bakheng phases 1 and 2 only supports PPWSA, this 3rd phase, thanks to the contribution of the EU in the form of grants, will also have an impact on the water sector development and transformation, institutional and human resources capacity development as well as the sustainability and inclusiveness of water supply services in and beyond Phnom Penh.

The Project outputs will be the following,

At the industry level: the preparation of an urban drinking water reform; At the operator level:

1. a newly erected third production unit of capacity 195 000 m3/day at the Bakheng site;
2. a rehabilitated water production facility with capacity 130 000 m3/d at the Chhrouy Changvar site;
3. a reinforced, densified, and extended water transmission and distribution network;
4. a more sustained, inclusive, and effective water supply service;
5. an reorganized operator, which will then act as a driver and mentor for more than 600 smaller private and public operators throughout Cambodia.

The anticipated impacts include, on the one hand, transforming the water sector through the design and implementation of a reform aimed at professionalizing the industry, and on the other, strengthening the role of the main operator in the sector, namely PPWSA.