AKP Phnom Penh, June 06, 2025 --

The French Development Agency (AFD) and the European Union have reaffirmed their commitment to strengthening Cambodia’s water supply sector, during a meeting with H.E. Hem Vanndy, Minister of Industry, Science, Technology & Innovation on June 5 in Phnom Penh.

According to the Ministry of Industry, Science, Technology & Innovation, led by AFD Country Director Ms. Sandrine Boucher, the delegation discussed ongoing and future investments, institutional reforms and strategies to accelerate access to clean water and sanitation nationwide.

Minister Vanndy commended AFD and the EU for the cooperation, highlighting the need to expand water services to underserved communities, particularly in rural areas. “We can't delay access to clean water by waiting for large-scale infrastructure; practical solutions and funding are essential to expand access and manage water source competition.”

He also instructed the MISTI technical team to work with AFD's private sector arm PROPARCO to facilitate affordable financing for private water operators (PWOs), who play a vital role in reaching last-mile populations.

AFD Country Director Sandrine Boucher emphasised that a total of €275 million in financing is being considered for Cambodia from 2025 to 2027, with 70 percent allocated to the water sector.

“For the private sector, through PROPARCO, we are adding a new line of credit to a commercial bank to support private water operators,” she added.

The meeting also discussed regulatory reform, institutional frameworks for water operators, and the development of training programmes in collaboration with the ITC and leveraging PPWSA’s capacity to develop skilled professionals in support of the sector.

Calling for more innovation, Minister Vanndy said, “We call on the EU to support innovative research in the water supply sector. Research on AI can improve efficiency, such as enhanced leak detection, optimised energy consumption through automatic pump adjustments, intelligent tracking of water patterns, and expanded water reuse and recycling from industrial sources.”

Mr. Koen Everaert, Deputy Head of Cooperation for the EU Delegation to Cambodia, reaffirmed that water, alongside energy and education, remains a priority sector for the EU in Cambodia under the Global Gateway.

AKP