1. GWP SEA Workshop on WRM Financing
Hotel Mi Casa, 3 Oct 2013
Yangon-Myanmar
FINANCING WATER
RESOURCES MANAGEMENT IN KINGDOM OF CAMBODIA
by
Watt Botkosal
Chair, Cambodia Water Partnership

2. TABLE OF CONTENTS
• COUNTRY OVERVIEW
• WATER RESOURCES IN CAMBODIA:
– DEVELOPMENT OPPORTUNITIES AND CHALLENGES WITHIN
CAMBODIAN CONTEXT
• INSTITUTIONAL AND LEGAL FRAMEWORK AND KEY
WATER STAKEHOLDERS IN CAMBODIA
• CONTRIBUTION OF WATER RESOURCES MANAGEMENT
TO THE NATIONAL DEVELOPMENT GOALS
• FRAMEWORK FOR MANAGEMENT OF FINANCING WATER
RESOURCES MANAGEMENT
• GROWING ROLE OF PRIVATE INVESTMENT
• ISSUES TO BE ADDRESSED UNDER THE WATER
RESOURCES FINANCING MECHANISM.

3. Cambodia in the Mekong River Basin
Source of MRC
3

4. River system in Cambodia
18
8
6
Source of MOWRAM

5. Water resources in Cambodia
Mekong Basin =
86%

6. Mixed Flow
Drainage Basin
Cambodia is rich in water and related resources
that have served not only as a source for
subsistence livelihood, but also as an
opportunity for economic development. Most of
the territory of Cambodia (86%) lies within the
basin of the Mekong River  high dependence
of country on this natural resource-rich river
basin.





Area: 2500 – 15000 km2
Volume: 1.3 – 70 km3
Water depth: 0.7 – 9 m
Catchments: 13
Catchment area: 90’000 km2

7. Rectangular Strategy and NSDP focuses on
key strategic considerations:
1.Food and energy demands keep growing in
Cambodia especially in the capital and other
main cities;
2.Present rice policy of the government focuses
on expanded irrigation for rice export based on
selected rice varieties and technology.
3.Food and energy, as well as other economic
activities are linked to water and water related
resources.
Opportunities and strategic priorities that
Cambodia would like to focus on in the water
resources financing strategy

8. CHALLENGES
Water Resources Management will need
to be ready to adapt to the coming
conditions:
•Crop water requirements
•Distribution of water along the year will
need to be supported by more storage and
functional distribution system to ensure
supply during growing drought window and
dry season,
•Floods in general, and flash floods in
particular, will be higher and more frequent;
•flood protection structures will need to be
designed to the level of protection expected.
•Changes in flood-plans

9. OVERALL OPPORTUNITIES AND CHALLENGES
Dividend and
challenge for the
next 30-40 years
• Growing
productive
ages.
• East Asia
Community
in 2015.
• Labor cost in
neighboring
countries

10. KEY WATER STAKEHOLDERS
IN CAMBODIA
Global/
•Ramsar Conventions;
Inter-ministerial committee
Provinces
Government, Ministries
and Agencies
•Cambodia National Mekong
Committee
Vested interest – powerful
tycon
National
•Tonle Sap Authority
22 provinces and
municipality & Sectoral
Department/Offices
Local
Districts, 526 communes
and 4245 villages
•Decentralization and
Deconcentration Committee
Local Organizations
River Basin Committees
Community based Fishery
Farmers/water users
Communities
Million of people directly depending on and/or living
Mekong Basin
Tonle Sap Stakeholders at Various Scales
m
a
N
t
e
i
V
d
n
a
d
n
a
l
i
a
h
T
•Numerous conventions
Region, ASEAN, Mekong
River Commission, ADB,
World Bank and
development partners and
funding agencies
s
O
S
C
d
n
a
s
O
G
N
l
a
n
o
i
g
e
r
&
l
a
n
o
i
t
a
n
r
e
t
n
I
Regional
•UNESCO Biosphere
Reserve
L
m
y
,
a
h
:
s
i
r
t
u
C
g
n
o
k
e
M
• Greater Mekong Sub-
Stakeholders
can be
differentiated in
many ways:
1.Consume
resources/ control
the site;
2.Benefit from the
use of resources;
3.Have rights and
responsibilities
over the use and
management of
resources;
4.Have decision
making power

11. ISSUES TO BE ADDRESSED UNDER WATER
RESOURCES FINANCING MECHANISM
Non-structural Measures:
•Knowledge management for informed
decision (intervention options,
technology for irrigation planning,
cropping calendar and diversity and
selection of the most appropriate
sites).
•New technological know-how (fish
migration, passage, aquaculture
expertise and funding, sediment
friendly dam/reservoir design and
site).
1 gauge for every 600900 km2 of flat terrain
and 1 gauge for every
100-250 km2 of
mountainous area.
(WMO)

12. ISSUES TO BE ADDRESSED (2)
Capacity and Institutional Development:
•National, sub-national and local levels in many aspects of IWRM
Awareness Raising and Mainstreaming
•Local communities.
•CSOs, and LAs.
Creating Enabling Environment:
•Workable and effective mechanism and guidelines for benefit sharing,
and promotion of joint development (multi-purpose).
•Coordination among various agencies involved.
•Improve regional water governance .
Structural Measures:
•Infrastructure for flow regulation, drainage and diversions.
•Most appropriate measures for flood and drought control/management.
•Irrigation design improvement in changing of water level and flow and
more study and design for improving drainage of flood water in the flood
plains.

13. CONTRIBUTION OF WATER RESOURCES
MANAGEMENT
‘Rectangular Strategy’ and NSDP are to
sustain the achievements of the
‘Millennium Development Goals’ and
recognizes the contribution of water
resources management in:
1. Agricultural development (incl.
fisheries and forestry)
1. Water resources management
2. Energy sector development
3. Private sector development and
employment
4. Human resources development (incl.
education, health, population policy,
gender equity)

14. INVESTING IN WATER RESOURCES MANAGEMENT
Private and
Public
Investment

15. Tr en ds in Dev el opm en t Assi st ance
Disbursement Trends (USD million)
Devel op m en t par t n er di sbu r sem en t s ( USD m i l l i on )
2007
2010 Sector Allocations (USD million)
Source: Cambodia ODA Database (October 2011)
UN (core)
World Bank
IMF
ADB
Global Fund
UN & multilateral
Belgium
Denmark
Finland
France
Germany
Netherlands
Spain
Sweden
UK
EC
EU partners
Australia
Canada
China
Japan
New Zealand
Rep of Korea
Switzerland
USA
Other bilateral
NGO (own funds)
TOTAL
58.3
47.5
0.9
69.4
21.1
197.1
7.2
9.8
5.2
21.7
20.7
0.1
3.5
17.3
23.7
44
153.2
29.6
12.6
92.4
117.2
4.5
31.3
3.6
58.1
349.4
77.7
777.5
2008
2009
2010
USD
%
73.2 101.8
88.2
41.7
57.0
56.9
0
0
0
145.7
89.4
76.3
38.6
46.5
61.2
299.2 296.3 288.8
2.8
4.8
2.2
10.6
13.8
15.7
9.0
6.0
6.5
29.8
25.4
23.2
36.6
27.9
35.3
2.2
0.7
0.7
6.1
16.6
28.0
15.9
22.8
24.7
29.6
32.6
24.7
48.4
49.4
34.2
191.0 200.7 196.3
49.1
47.8
67.4
11.5
16.7
7.9
95.4 114.7 138.2
126.4 134.0 146.0
2.8
2.3
5.2
33.0
15.8
33.9
3.9
3.0
3.1
55.7
56.9
60.4
377.6 391.3 462.1
110.8 108.5 127.5
978.5 996.8 1,074.7
2011
(est)
8.2
80.9
5.3
96.0
0
0
7.1 149.7
5.7
68.4
26.9 400.0
0.2
2.1
1.5
6.8
0.6
3.4
2.2
20.0
3.3
44.4
0.1
0.1
2.6
11.4
2.3
30.1
2.3
17.8
3.2
55.8
18.3 192.5
6.3
74.3
0.7
11.4
12.9 210.7
13.6 120.6
0.5
3.5
3.2
43.6
0.3
4.5
5.6
57.2
43.0 525.8
11.9 117.0
100 1,235.3

16. • The analysis of the aid disbursement and NSDP resource allocation for 2010
shows gaps between the NSDP and aid disbursement for key agricultural and
water/environmental sectors.
• By 2014, the ODA is projected to lower down significantly with an observed
increase in the local and international direct investment share.

17. Growing role of domestic private

18. Growing role of domestic private investment
• Private sector investment in Cambodia places less emphasis on
water.
• Investment law places an emphasis on some key water sectors
• Law on concessions emphasizes in key areas such as power,
transport (navigation and port), irrigation and agriculture related
infrastructure, waste water, drainage and dredging.
CDC (2013) identified four main paths for enhanced ODA-private
sector complementarity in Cambodia:
1. Support to public infrastructure development (transport
infrastructure, energy, water and irrigation services, and infrastructure
loans for private-sector role in infrastructure projects);
2. Support to enhance the enabling environment;
3. Strategic investments that promote economic competitiveness
including alignment of ODA with Government actions to promote
urban-rural linkages and climate change adaptation; and
4. Direct partnerships with the private sector.

19. Conclusion: Strategic priorities
• Financial and human resource capacities are both of great strategic
importance for Cambodia’s water resources management:
• For improving and sustaining technical assets and facilities.
• More incentives and resources for addressing shortage of both
physical/financial and human resources  for positive change in ownership
and leadership, and in planning, M&E;
• Action Plan for knowledge transfer and capacity building - absorbing
capacity, brain-drainage, and attitude– the will, skill and incentive.
• Relevant LAs’ annual work planning and budgeting cycles for IWRM.
• MEF, Council for Development of Cambodia (CDC), and MOP , as
budgeting depends a lot on understanding and appreciation of the priorities
and significance.
To conduct outreach visit to the MEF, MOP, CDC, and SNEC for discussing
possibility for deliberation and development of sustainable financing plan
and stronger water focus in the national development framework.
Role of private sector and Private-Public coordination == harmonization of
standards for design, construction and operation.

20. THANK YOU VERY MUCH FOR YOUR
ATTENSION!