2016年-世界发展银行全球_Strengthening_Sustainable_Water_Supply_Services_through_Domestic_Private_Sector_Providers_in_Cambodia_79页_2mb

Summary of Technical Assistance Report: Strengthening Sustainable Water Supply Services through Domestic Private Sector Providers in Cambodia

Core Content

This report documents a three-year Technical Assistance (TA) program (Report No: ACS16819) implemented by the World Bank's Water and Sanitation Program (WSP) in Cambodia, aimed at enhancing the capacity of domestic private sector providers to deliver sustainable piped water supply services. The program focused on three key areas: professionalizing water operators, enabling access to finance, and strengthening the regulatory environment. The ultimate goal was to improve access to piped water services, especially for poor and rural populations, by leveraging the private sector.

Main Objectives

• Improve performance of private water operators through Business Development Services (BDS)
• Mobilize investments from local commercial banks through Access-to-Finance (A2F) services
• Strengthen regulatory framework and monitoring capacities of the Ministry of Industry and Handicraft (MIH)
• Enhance industry organization, dialogue, and knowledge about private sector water services

Key Activities and Outcomes

1. Business Development Services (BDS) Program

• 47 private water operators participated in the BDS program, paying USD 612 to USD 1,289 for services.
• Training and coaching included 8-9 group sessions and 2-4 on-site visits.
• Key results:
  • 21% increase in connections, with 12,135 new connections installed, reaching a total of 69,300 connections or 345,000 people.
  • Service coverage increased from 31% to 36% across all licensed areas.
  • Water quality pass rate stagnated at 57%, with only 15% of operators improving it.
  • Net income per connection improved for half of the operators, while revenue per connection increased for two-thirds.
  • Operating expenses per connection decreased for half of the operators.
  • Non-Revenue Water (NRW) decreased from 15% to 9%, and water pressure increased from 9 to 12 mH2O.
  • 93% of operators now use billing software, up from 57% at the start.
  • CWA has taken a leading role in delivering training and coaching, with plans to continue using local consultants and third-party agreements for software support.

2. Access to Finance (A2F) Program

• 29 operators were selected for the A2F program, with 20 operators receiving detailed investment plans and financial models.
• Loan negotiations were facilitated, and 20 loan agreements are expected to be signed with FTB, totaling USD 5.5 million in financing, with USD 0.5 million in equity.
• 9 loans were formally approved by December 2015, with USD 1.5 million disbursed.
• 5 operators started construction, and 1 operator completed it by December 2015.
• Investments were primarily directed towards:
  • Distribution network expansion (58%)
  • Water treatment plant improvements (20%)
  • Detailed design and construction supervision (12%)
• Collateral requirements were relaxed, allowing for:
  • 100% of land/buildings (including soft titles)
  • 50% of water infrastructure assets
  • 50% of the Net Present Value (NPV) of cash flows from existing schemes
• Operators who did not proceed to investment planning still accessed finance from commercial or informal lenders, investing a total of USD 0.8 million.

3. CWA Organizational Development

• CWA, established in 2012, now represents 70% of all licensed schemes in Cambodia.
• Key achievements:
  • Membership growth: 72 licensed operators and 34 associate members by January 2016.
  • Value-adding services: Hosting BDS and A2F programs, providing software licenses (ERMS), and offering low-cost training and maintenance.
  • Income diversification: Increased annual budget from USD 56,000 in 2014 to USD 113,000 in 2015, with projections for USD 150,000 in 2016.
  • Policy representation: Engaged in dialogue with MIH on licensing delays, leading to a three-year extension for expired licenses.
  • Institutional capacity: Established a 9-member Board of Directors, expanded staff to 8, and introduced accounting practices and internal audits.
  • Membership in IWA: Joined the International Water Association in 2014.

4. Regulatory Environment and Monitoring

• The TA contributed to the development of a new licensing prakas (ministerial decree) in May 2014, which:
  • Clarifies procedures for issuing, revising, suspending, and revoking licenses.
  • Allows for direct licensing and competitive tendering.
  • Extends license periods from 3 to 20 years, with a 5-year renewal cycle.
  • Tariff determination and review framework was drafted, with a focus on:
    • Full cost recovery and efficiencies.
    • Profit caps based on a weighted average cost of capital (WACC).
    • Differentiated tariff methodologies: Annuity method for small operators (<2000 connections), and cash flow method for larger utilities.
    • Pro-poor tariff provisions informed by evidence.
• Water Services Monitoring System (WSMS) was developed to improve transparency and data collection for both public and private operators.
• MIH-DPWS staff was trained in using tariff models and WSMS tools.

Key Challenges and Recommendations

Challenges

• Limited capacity and staffing in the Department of Potable Water Supply (DPWS) to implement the new licensing prakas.
• High attrition rates among operators in the A2F program due to low debt service coverage ratios and insufficient collateral.
• Inconsistent implementation of licensing regulations, with some applications still pending review.
• Inequities in service access, particularly for poor households, and fee overcharging in some areas.

Recommendations

• Strengthen DPWS capacity to ensure effective implementation of the new licensing framework.
• Expand the BDS program to more operators and integrate it with local consultants and third-party support.
• Encourage local banks to adopt more flexible loan products and practices for the water sector.
• Enhance policy dialogue between MIH and CWA to ensure alignment and support for private sector growth.
• Continue pro-poor service delivery initiatives to ensure equitable access and affordability for poor households.
• Scale up the A2F program and improve the screening and due diligence process for loan applications.
• Improve data collection and monitoring to better assess the impact of interventions on service delivery and financial sustainability.

Conclusion

The TA program has made significant strides in enhancing the capacity of domestic private water providers in Cambodia, improving service delivery, financial sustainability, and regulatory oversight. While challenges remain, the program has laid a strong foundation for future growth and expansion of piped water services, particularly in underserved rural areas. Continued support from the government, development partners, and local institutions is essential to sustain and scale these efforts.