EIB approves US$100 million loan for Cambodian water supply expansion

Cambodian delegation and European Investment Bank representatives at the signing ceremony in Brussels on June 18 (Photo credit: Ministry of Economy and Finance)
  • Thmey Thmey
  • June 21, 2019 8:30 AM

The water treatment project will cost $247 million


PHNOM PENH--European Investment Bank (EIB) has approved a US$100 million loan for Cambodia to use to extend the coverage of clean water supply in the fast-growing capital Phnom Penh, the bank said in a statement received Friday. 


The loan agreement was signed by officials from Phnom Penh Water Supply Authority and representatives of the EIB in Brussels, Belgium, on Tuesday, EIB said in a press release. 


The press release said the purpose of the loan is to support a four-year project to upgrade the water production capacity and expand the supply network to the outlying parts of the capital.


This includes building a new water facility – the Bakheng Water Treatment Plant (WTP) – in the northern outskirts of Phnom Penh. Up to 195 million liters of clean water per day are expected to be added to the current production capacity of 560 million liters, according the press release.


Sim Sitha, director general of the Phnom Penh Water Supply Authority, thanked the EIB for the loan, which, he said, will allow the authority  “to respond [more effectively] to the strong demographic and economic growth – especially in peripheral neighbourhoods.”  


Andrew McDowell, EIB’s vice president in charge of operations in Cambodia, said the water supply expansion project would create a positive impact on the city’s residents, particularly the poor and the most vulnerable.  


“This project will help reduce inequalities and make a real difference to people’s health and education. This is especially true for those living in the poorest areas of the city, particularly the women and young girls who are traditionally the water carriers, who have had no access to a safe and reliable water supply,” he said. 


According to Cambodia’s Ministry of Economy and Finance, the expansion project runs from 2019 to 2022, with the total cost being estimated to be around US$247 million.


The ministry said that, in addition to the US$100 million loan from EIB, Agence Française de Développement (AfD) has also agreed to provide US$85 in loan, followed by US$15 million in grant from Asia Investment Facility of the European Union.  The Phnom Penh Water Supply Authority is expected to contribute US$47 million to the total cost.  


Related Articles