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 CONTENT
I. PPWSA in 1993

II. Driven Reforms

III. Internal Transformation

IV. Results

V. Some Information

VI. Lessons Learned

 Phnom Penh Water
Supply Authority
(PPWSA)

CONTENT : Production : 65,000m3

Distribution Network : 288km
I. PPWSA in 1993

II. Driven Reforms

Coverage : 40% of city area
III. Internal Connecting to : 20% of PNH residents
Transformation

IV. Results
Supply duration : 8 to 10hr./day
V. Some Information Customer recorded : 25,960
VI. Lessons Learned
Collection efficiency : 50%
Non-Revenue Water : 72%,
Staff/1000 connections : 20
Flat rate tariff : Below cost
Heavy subsidy from the Government.
 Phnom Penh Water
Supply Authority
(PPWSA)

CONTENT :
 27 July 1993:
– New Government was formed up through a general
I. PPWSA in 1993
election assisted by UNTAC.
II. Driven Reforms
– Eligilble to external assistances.
A. Opportunities

B. External Inputs – Consider water and sanitation

III. Internal as priority sector.
Transformation

IV. Results  International Communities:

V. Some Information
– Provide know-how and resources for the reconstruction of Cambodia.
VI. Lessons Learned

 11 September 1993:
– New General Director have been appointed, creating new environment
within the company.
 Phnom Penh Water
Supply Authority
(PPWSA)

UNDP/WB : USD 2,803,001 (Grant Aid)

Japan : Yen 8,608,000,000 (Grant Aid)
CONTENT :
Yen 3,513,000,000 (Loan)
I. PPWSA in 1993
France : FRF 79,200,000 (Grant Aid)
II. Driven Reforms
USD 100,000 (Grant Aid)
A. Opportunities

B. External EUR 4,513,000 (Grant Aid)

Inputs
EUR 11,100,000 (Loan) Grace period
III. Internal
Transformation EUR 16,000,000 (Loan)
IV. Results
WB ( 2 loans) : USD 28,654,895 (Loan) Repaid 85%
V. Some Information
: SDR 550,000 (Grant Aid)
VI. Lessons Learned

ADB : USD 12,638,749 (Loan) Repaying

Total (up to 2009) : ~ USD260 millions

(consists of about USD158 Million Grant and USD102 Million Loan)
 Phnom Penh Water
Supply Authority
(PPWSA)

CONTENT :

I. PPWSA in 1993

II. Driven Reforms A. Restructure the management

III. Internal
Transformation
B. Changing of culture
IV. Results

V. Some Information

VI. Lessons Learned C. Staff capacity building

D. Self-reliance program
 Phnom Penh Water
Supply Authority
(PPWSA)

New mission
− Assuring the provision of clean water with affordable price to everyone in
CONTENT :
Phnom Penh.
III. Internal
New vision
Transformation
− To be the reference company in the region.
A. Restructure
the manage-
ment
New organization
B. Changing of − New organization chart with clear roles and less structures.
culture
− Clear job description and direct responsibilities for managers.
C. Staff capacity
building
New taskforce
D. Self-reliance
program
− Promote young dynamic staff, empower and equipped with new mission
before sending to the front line.
− Remove inefficient old timers to the dormant roles.

− Promotion was made by collective decision and strictly based on quality.

 Phnom Penh Water
Supply Authority
(PPWSA)

CONTENT : New culture

III. Internal - Managers must be the model for their subordinates.
Transformation
- One standard apply to all.
A. Restructure the
management - Collectively decide, individually responsible.
B. Changing of
culture
- Save to serve.

C. Staff capacity Team work spirit: One for all, all for one
building

D. Self-reliance
- Social activity.
program
- Staff care program.

- Social fund.
 Phnom Penh Water
Supply Authority
(PPWSA)

CONTENT : Urgent Training

- 1994: Immediately trained managers and front
III. Internal
Transformation line staffs.
A. Restructure the
Regular Training
management

B. Changing of
- 1996: Set up in-house training center.
culture
- 1997: Started the taylored training program to
C. Staff capacity
fit the actual daily work.
building
- 2000: Started staff quality assessment
D. Self-reliance
program program.
- 2005: Started the year-end examination
program for satff quality evaluation purpose.
 Phnom Penh Water
Supply Authority
(PPWSA)

CONTENT :

III. Internal
Transformation
1. To improve water bill collection
A. Restructure the
management

B. Changing of 2. To reduce NRW

culture

C. Staff capacity
3. Full swing operation
building

D. Self-reliance
program
 Phnom Penh Water
Supply Authority
(PPWSA)

Updated the customer base

CONTENT : - Diagnostic survey by 100 staffs from PPM’s line departments carried out a
comprehensive customer survey for one year.
III. Internal
Transformation - Out of 25,960 recorded customers, 12,980 never received water whereas
D. Self-reliance 13,901 real customers were not recorded,
program
- New customer file of 26,881 customers
1. To improve
was set up in 1994.
bill collection

2. To reduce Set example:

NRW
- Within PPWSA.
3. Full swing
operation - The stronger, harder head first.

- Fromulate the SOP for water bill collection “Learning

by doing”.
 Phnom Penh Water
Supply Authority
(PPWSA)

Apply incentive and penalty system:

CONTENT :
- Incentive for good result.
III. Internal
- Penalty for bad intention.
Transformation

D. Self-reliance 1996 : Set up the computerized billing system:

program
- Much more easier, faster and accurate billing.
1. To improve
bill collection - Much more information for deeper analysis.

2. To reduce - Customer confidence.

NRW

3. Full swing
operation
 Phnom Penh Water
Supply Authority
(PPWSA)

1998 : Introduced the “regain the public trust ” program

CONTENT : - Convenient payment: Cashiers, bank check, ATM, ...

III. Internal
- Village-to-village dissemination of information,
Transformation
- Information desk to deal with customers complaints.
D. Self-reliance
program
- Water quality and water meter control at the customer request, etc....

1. To improve - Responding to Customer Call has been classified into 4 categories:

bill collection
ONE HOUR, ONE DAY, THREE DAYS, ONE WEEK.
2. To reduce
NRW

3. Full swing
operation
 Phnom Penh Water
Supply Authority
(PPWSA)

Replaced old pipes:

CONTENT : - Old cast iron pipes were totally replaced by 1999.

- Using the state of art materials.

III. Internal
Transformation - For economic and technical reason, all
D. Self-reliance works were carried out by PPWSA sftaff.
program

1. To improve bill Metering all connections:

collection
- Target to the stronger & harder head first.
2.To reduce
NRW - 1993: only 3,391 out of 26,881 connections
3. Full swing were metered.
operation
- 2001 : 74,945 connections were 100% metered.
- Now, 192,514 connections were 100% metered
with high accuracy WM Class C.
- SOP for water meter management.
 Phnom Penh Water
Supply Authority
(PPWSA)

24/7 standby team to repair leaks:

CONTENT : - 1993 : One team with 4 unskilled staffs.
- 1996 : Staffs OJT by an expatriate expert.
III. Internal
Transformation - 1997 : Increased to 4 teams with 48 skilled staffs.
D. Self-reliance - 24/7 standby team ready to respond to
program
any leak information within one hour.
1. To improve bill
collection
Effort to eliminate illegal connections:
2.To reduce
- Creation of inspection bureau.
NRW

3. Full swing - Strictly discipline internal staffs.

operation
- Customer information associated with
bonuses for true information.
- Strictly apply penalty without favor.
 Phnom Penh Water
Supply Authority
(PPWSA)

District Metering Area (DMA) Program

CONTENT :
 2003 :
III. Internal
Transformation - Commencement of DMA program.

D. Self-reliance - Learned and support from Kitakiyushu water bureau.

program
 2004 :
1. To improve bill
collection - Completed 2 zones in downtown.
2.To reduce - Introduced internal service contract on pilot zone.
NRW
 2005 :
3. Full swing
operation - Completed 8 DMA with 66 subzones

- Creation of ditribution control office with 62 staffs in 4 teams.

- Apply internal service contract in all the 8 DMA.

 Phnom Penh Water
Supply Authority
(PPWSA)

Agressively expand the service coverage

CONTENT :
- 1994-1999: Replaced existing old pipes.
III. Internal - From 2000: Distribution network expansion.
Transformation
- Outreach the service coverage to economically
D. Self-reliance
program potential areas without overlooking the poor.
1. To improve bill
collection Increase production to cover demand
2. To reduce
- 1993: 65,000m3/d, now: 300,000m3/d,
NRW

3.Full swing Revise tariff to cover the cost

operation
- First revision in 1997,
- Second revision in 2001.
- The water tariff keeps unchanged since then.
 Phnom Penh Water
Supply Authority
(PPWSA)

CONTENT : Enable the poor to get direct access to city water trough:
1999: Install payment to 10, 15 and 20 months on
III. Internal connection cost (~USD100).
Transformation 2005: Subsidy 30%, 50%, 70% & 100% on connection
D. Self-reliance cost.
program The total subsidy was worth 2,325,755,000 Riels or
1. To improve bill about USD567,257.
collection Each family could benefit about $5/month, beside health
2. To reduce improvement & saving time for women and children.
NRW Through this program, we have helped the poor to save at
21,490
3.Full swing least about USD5 million. 18,862 2,628
17,590
operation 1,272
15,514 2,076
14,171
1,343
11,371 2,800
9,312 2,059
6,506 2,806
3,966 2,540
2,709 1,257
575 2,134
101
474
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
 Phnom Penh Water
Supply Authority
(PPWSA)

CONTENT :
25,000
IV. Results
22,587 86%
19,425
A. Customer 20,000
Service
Efficiency 15,000
B. Collection
Efficiency 10,000
91%
C. Water Losses
100% 5,654 5,145
(NRW)
5,000 97%
D. Financial Outcome 2,605 2,605
1,085 1,052
0
One hour One day Three days One week
Call Response
 Phnom Penh Water
Supply Authority
(PPWSA)

CONTENT :

V. Results

A. Water Production

B. The Service
Coverage
16 years ago
C. The Customer
Base

D. Customer Service
Efficiency

E. Collection
Efficiency

F. Water Losses Service Coverage

(NRW)
Supply Boundary by 2020
G. Financial Outcome

H. Then & Now From 288km to 1,666km now.

 Phnom Penh Water
Supply Authority
(PPWSA)

CONTENT :

IV. Results
100%
A. Customer Service 90%
Efficiency
80%
B. Collection 70%

99.9%
99.8%

99.9%
Efficiency

99.8%

99.9%
60%

99.8%
99.8%
99.8%
99.8%
99.7%
99.6%
99.5%
97.2%

97.9%
C. Water Losses 50%
(NRW) 40%
70%

D. Financial Outcome 30%

50%
48%

45%

20%

10%

0%
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
 Phnom Penh Water
Supply Authority
(PPWSA)
72%

62%
60% 59% 57.8%
55.9%
48.1%
CONTENT :
35.5%
IV. Results
22.9%
21.5%
A. Customer Service 17%
13.9%
Efficiency 8.53% 7.28% 7.08%
6.19% 5.94% 5.85%
B. Collection
Efficiency
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

C. Water Losses
(NRW)
• This NRW reduction is equal to a saving of about USD 100 millions on
investment, and USD 15 millions of income per year.
D. Financial Outcome
• This means:
– 72 - 6 = 66% of water produced was saved,
– As of today, production is 250,000m3/day; this 66% is equivalent to
165,000m3/day.
– As of PPWSA average tariff is USD0.25/m3; this 165,000m3/day
represents USD15,056,250/year.
– In order to supply the amount of water lost, we need to build a WTP of
485,294m3/day (165,000m3 x 100/34), which costs about USD100 million.
 Phnom Penh Water
Supply Authority
(PPWSA)

CONTENT :

38,820
33,313
IV. Results

29,882
A. Customer Service
Efficiency

78,620
30,217

72,467
B. Collection

19,668

70,431
Efficiency

23,380
C. Water Losses

53,883
11,682
(NRW)

54,620
34,994 9,867
D. Financial

41,299
41,669
30,219 6,314
Outcome

30,219 23,621 6,598

117,440
105,780
100,312
25,125 20,933 4,191

84,100
1,895

74,288
64,679
934

53,351
44,861
1,243 18,766
16,428

36,533
1,300 1,100 11,548
1400

-700 2700
-700 4,200 5,200 12,792 17,361 20,662
700 2,000 5,500 6,300

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Total Revenue Total Expenses Gross Profit In million Riels
Phnom Penh Water
Supply Authority
(PPWSA)

PPWSA will no longer benefit if:

Total expenses ≥ Average tariff x Total water volume produced x Billing ratio
=> Billing ratio ≤ Total expenses / (Average tariff x Total water volume produced)

Average tariff based change in Billing Ratio and NRW (Figure of 2009)
CONTENT : Average
Tariff
V. Some 994 R/m3 85.91% 14.09%
Information

A. Different
Scenarios 990 R/m3 86.26% 13.74%
B. Then & Now

C. Comparison of
Water Tariff 980 R/m3 87.14% 12.86%
D. Comparison of
Water Losses

E. Comparison of
70% 80% 90% 100%
Staff per 1,000
connections
Billing NRW
F. Water Quality
 By this, we do not make profit by increasing water tariff, but we make profit by
increasing our efficiency.
Phnom Penh Water
Supply Authority
(PPWSA)

1993 INDICATORS 2010

20 Staff / 1,000 connections 2.97
65,000 Production capacity, m3/day 300,000
??? Water quality WHO
CONTENT :
20% Coverage area 90%
V. Some 10 hr/d Supply duration 24 hr/d
Information
0.2 bar Supply pressure 2.5 bar
A. Different
26,881 Number of connections 200,664
Scenarios
72% NRW 5.85%
B. Then & Now
C. Comparison of
48% Collection ratio 99.9%
Water Tariff 150% Operation ratio 39.41%
D. Comparison of
N/A Return on revenue 26.62%
Water Losses

E. Comparison of N/A Return on net asset 4.71%

Staff per 1,000 N/A Current ratio 2.55 times
connections

F. Water Quality
N/A Debt service coverage 3.25 times
N/A Accounts receivable 24 days
Phnom Penh Water
Supply Authority
(PPWSA)

1
0.9
CONTENT : 0.9
0.8
0.7 0.65
V. Some
0.6
Information
0.5
0.38
A. Different 0.4
0.28 0.3 0.28
Scenarios 0.3 0.25 0.26 0.25
0.2
B. Then & Now 0.2 0.15
0.08
0.1
C. Comparison
0
of Water Tariff
D. Comparison of
Water Losses

E. Comparison of
Staff per 1,000
connections

F. Water Quality
Phnom Penh Water
Supply Authority
(PPWSA)

45.00 42.00
40.00 38.00
35.00 36.00
CONTENT : 35.00
34.00
31.00
30.00
29.00
V. Some 27.00 27.00
Information 25.00

A. Different 20.00 17.00

Scenarios
15.00
B. Then & Now
10.00
C. Comparison of 6.00
5.00
4.00
Water Tariff

D. Comparison -

of Water Loss
E. Comparison of
Staff per 1,000
connections

F. Water Quality
Phnom Penh Water
Supply Authority
(PPWSA)

40.00

35.00 34.00

CONTENT :
30.00

V. Some
25.00
Information
21.43
A. Different
20.00
Scenarios

B. Then & Now

15.00 13.92
C. Comparison of
Water Tariff
10.00
D. Comparison of 7.62
Water Losses
5.28
5.00 4.40
E. Comparison 3.34
2.19 2.55 2.34
of Staff per
1,000 con. -
Phnom Bangkok Ho Chi Singapore Penang Vientiane Colombo Lahore Dhaka Dehli
F. Water Quality Penh Minh
Phnom Penh Water
Supply Authority
(PPWSA)

CONTENT :
Result of

V. Some PPWSA’s Water

Quality Analysis
Information
by Singapore’s
A. Different lab in 2007 on
Scenarios 102 parameters
B. Then & Now

C. Comparison of
Water Tariff

D. Comparison of
Water Losses Result of PPWSA’s

E. Comparison of Water Quality

Staff per 1,000 Analysis by

connections Singapore’s lab in
2009 on 215
F. Water Quality
parameters
 Phnom Penh Water
Supply Authority
(PPWSA)

Political will is important

To allow the utility to operate without political interference.
To have reasonable water tariff that cover the cost and
CONTENT :
affordable to all level.
I. PPWSA in 1993

II. Driven Reforms

Timely assistances from development agencies are
III. Internal necessary
Transformation
To provide effective assistances that respond to the real
IV. Results
need in a timely manner.
V. Some Information

VI. Lessons Internal effort is primary crucial

Learned
Good governance: FAIR,FIRM, FAITH.
Regularly build the capacity of staffs at all levels.
Spirit of ownership: Self-motivated.
 Phnom Penh Water
Supply Authority
(PPWSA)

CONTENT :

III. Internal
Transformation

D. Self-reliance
program

1. To improve bill
collection

2. To reduce
NRW

3.Full swing
operation