Water Supply of Phnom Penh: An Example of Good Governance

During the 1980s, after years of centralized management and a culture of inefficiency and corruption, the Phnom Penh Water Supply Authority (PPWSA) was dysfunctional. Unaccounted for water routinely surpassed 70%. During the 15-year timeframe between 1993 and 2008, it experienced a metamorphosis; with enlightened management and dedicated and competent staff the Authority has been completely turned around. Its annual water production increased by 437%, the distribution network by 557%, pressure of the system by 1260%, and its customer base by 662%. Unaccounted for water was reduced from 72% to 6.19%. Its profit increased consistently as has the amount of taxes paid to the Cambodian Government. This paper is a summary of an independent evaluation that examines how this remarkable transformation has been achieved.