The Expanding Access to Commercial Finance for WASH Investment in Cambodia ​to access to piped water supply in Cambodia is among the lowest in Southeast Asia, estimated at 21% in 2015. Public water utilities serve only 13 provincial towns, while the remaining 12 provincial towns, small towns and rural areas are partially served by the private water operators (PWOs).

These PWOs are mainly family-owned, small to medium sized businesses and they face significant problem in financing with their operations and expansion of their services under-served and/or new areas. Almost all PWOs (about 93%) are planning expansion of their respective water supply operations. Development partners’ prior initiatives have provided access to finance for 17 PWOs.

WASH-FIN in Cambodia in collaboration with Cambodian Water Supply Association CWA in future will contribute to closing the financial gaps by connecting well performing PWOs to the local commercial banking sector to enable access to market finance for funding their respective infrastructure investments.

In support of the WASH sector and Cambodia’s goals related to universal WASH coverage, CWA is working closely with WASH-FIN to implement a series of coordinated activities to contribute to the goal of expanding the market for commercial lending to Cambodian private water operators. Three activity categories support local stakeholders on the demand and supply side of the market:

• • Category 1: Assist in Creditworthiness & Market Assessment – Under technical guidance and with some technical support form WASH-FIN team, CWA will take lead in the financial review of the private water operator business plan Expansion of the market for commercial lending for WASH investments through review of business plans and assist WASH-FIN team for strengthening creditworthiness of private operators and assessing the local financial institutions.
  • Category 2: Access to Local Commercial Market Finance for WASH – Completion of local bank loans to private water supply operators. CWA work closely with WASH-FIN to develop specific proposals, identifying credit enhancements, and providing transaction facilitation and advisory support to the banks and private water operators (PWOs).
  • Category 3: Knowledge Management – Sharing and promoting opportunities for mobilizing local commercial finance into the WASH sector including capturing lessons learned from previous efforts in country and sensitizing the local financial institutions about opportunities in the WASH sector.