GWP SEA Workshop on WRM FinancingHotel Mi Casa, 3 Oct 2013

Yangon-Myanmar

FINANCING WATERRESOURCES MANAGEMENT IN KINGDOM OF CAMBODIA

by

Watt BotkosalChair, Cambodia Water Partnership

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.

3Source of MRC

Cambodia in the Mekong River Basin

River system in Cambodia

18

8

6

Source of MOWRAM

Water resources in Cambodia

Mekong Basin = 86%

Mixed Flow Mixed Flow Drainage BasinDrainage Basin

Area: 2500 – 15000 km2

Volume: 1.3 – 70 km3

Water depth: 0.7 – 9 m Catchments: 13 Catchment area: 90’000 km2

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.

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

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

CHALLENGES

OVERALL OPPORTUNITIES AND CHALLENGES

• Growing productive ages.

• East Asia Community in 2015.

• Labor cost in neighboring countries

Dividend and challenge for the next 30-40 years

Global/

Regional

•UNESCO Biosphere Reserve

•Ramsar Conventions;

•Numerous conventions

• Greater Mekong Sub-Region, ASEAN, Mekong River Commission, ADB,

World Bank and development partners and

funding agencies

Mekong C

ountries: China, M

yanmar, Laos,

Thailand and V

iet Nam

International & regional N

GO

s and CS

Os

National Government, Ministries and Agencies

•Cambodia National Mekong Committee

•Tonle Sap Authority

•Decentralization and Deconcentration Committee

Inter-ministerial committee

Provinces 22 provinces and municipality & Sectoral

Department/Offices

Local Districts, 526 communes and 4245 villages

River Basin Committees

Community based Fishery

Farmers/water users Communities

Local Organizations

Million of people directly depending on and/or living Mekong Basin

Vested interest – powerful tycon

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

Tonle Sap Stakeholders at Various Scales

KEY WATER STAKEHOLDERS IN CAMBODIA

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 600-900 km2 of flat terrain and 1 gauge for every 100-250 km2 of mountainous area. (WMO)

ISSUES TO BE ADDRESSED (2)

Capacity and Institutional Development:•National, sub-national and local levels in many aspects of IWRMAwareness 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.

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 management2. Energy sector development3. Private sector development and

employment4. Human resources development (incl.

education, health, population policy, gender equity)

INVESTING IN WATER RESOURCES MANAGEMENT

Private and Public

Investment

Trends in Development Assistance

Disbursement Trends (USD million) Development partner disbursements (USD million)

2007

2008 2009

2010 2011

USD % (est)

UN (core) 58.3 73.2 101.8 88.2 8.2 80.9 World Bank 47.5 41.7 57.0 56.9 5.3 96.0 IMF 0.9 0 0 0 0 0 ADB 69.4 145.7 89.4 76.3 7.1 149.7

Global Fund 21.1 38.6 46.5 61.2 5.7 68.4 UN & multilateral 197.1 299.2 296.3 288.8 26.9 400.0

Belgium 7.2 2.8 4.8 2.2 0.2 2.1

Denmark 9.8 10.6 13.8 15.7 1.5 6.8 Finland 5.2 9.0 6.0 6.5 0.6 3.4 France 21.7 29.8 25.4 23.2 2.2 20.0

Germany 20.7 36.6 27.9 35.3 3.3 44.4 Netherlands 0.1 2.2 0.7 0.7 0.1 0.1 Spain 3.5 6.1 16.6 28.0 2.6 11.4

Sweden 17.3 15.9 22.8 24.7 2.3 30.1 UK 23.7 29.6 32.6 24.7 2.3 17.8 EC 44 48.4 49.4 34.2 3.2 55.8 EU partners 153.2 191.0 200.7 196.3 18.3 192.5

Australia 29.6 49.1 47.8 67.4 6.3 74.3 Canada 12.6 11.5 16.7 7.9 0.7 11.4 China 92.4 95.4 114.7 138.2 12.9 210.7

Japan 117.2 126.4 134.0 146.0 13.6 120.6 New Zealand 4.5 2.8 2.3 5.2 0.5 3.5 Rep of Korea 31.3 33.0 15.8 33.9 3.2 43.6

Switzerland 3.6 3.9 3.0 3.1 0.3 4.5 USA 58.1 55.7 56.9 60.4 5.6 57.2 Other bilateral 349.4 377.6 391.3 462.1 43.0 525.8

NGO (own funds) 77.7 110.8 108.5 127.5 11.9 117.0 TOTAL 777.5 978.5 996.8 1,074.7 100 1,235.3

2010 Sector Allocations (USD million)

Source: Cambodia ODA Database (October 2011)

• 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.

Growing role of domestic private

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.

• 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.

Conclusion: Strategic priorities

THANK YOU VERY MUCH FOR YOUR THANK YOU VERY MUCH FOR YOUR ATTENSION!ATTENSION!