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ADB Lends US$20 Million to Improve Phnom Penh's Water Supply and Drainage

Water supply and drainage systems in Phnom Penh, capital of Cambodia, will be rehabilitated with the help of a concessional loan of SDR 13.721 million (US$20 million equivalent) approved today by the Asian Development Bank.

As a result of the project, about 1.5 million people in Phnom Penh will benefit from better and more abundant water supply by the year 2005. In addition, about 230,000 people in the largest catchment area of the capital will be spared the effects of flooding by contaminated water during the rainy season. Thus, urban environment and public health conditions will be improved.

Water supply and drainage systems in Phnom Penh have deteriorated over the years due to war, poor management, and lack of maintenance. The problem has been worsened by the rapid growth of the urban population.

The loan is from the Bank's Special Funds resources and will cover about 60% of the total project cost of US$35.8 million. It will be repaid over 40 years, including a grace period of ten years, and has an annual service charge of 1%. The OPEC (Organization of Petroleum Exporting Countries) Fund is expected to provide a concessional loan to cover 11% of total project cost, and the Norwegian Agency for Development Cooperation has shown interest in providing grant financing on a parallel basis to cover 8.4%. The rest of the cost will be met by the Government, the Phnom Penh Water Supply Authority, and local communities.

The project's water supply component involves the installation of about 15.6 km of transmission mains to supply bulk water from treatment plants to distribution mains. Besides, the water distribution system in the Toul Kork and Boeng Salang areas will be rehabilitated. The Phnom Penh Water Supply Authority will be given institutional support in terms of equipment for operation and maintenance.

The drainage component includes the upgrading of drainage canals, the rebuilding of the Boeng Trabek pumping station and spillway, institutional capacity building, and a neighborhood improvement program.

The executing agencies for the water supply and drainage components are the Phnom Penh Water Supply Authority and the Municipality of Phnom Penh, respectively.

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