KINGDOM OF CAMBODIA MINISTRY OF INDUSTRY AND HANDICRAFT URBAN WATER SUPPLY AND SANITATION PROJECT (ADB PPTA: TA-8125-CAM) FEASIBILITY STUDY FOR KAMPONG CHAM SUBPROJECT November 2013 Prepared by Egis Eau in association with Key Consultants (Cambodia) Ltd. Urban Water Supply & Sanitation Project Feasibility Study for Kampong Cham Sub-project Project Office Ministry of Water Resources & Meteorology #47 Preah Norodom Boulevard Phnom Penh, Cambodia Telephone: 855 (0)23990669 Document Status Rev No Author/editor Reviewer Approved for Issue Name Signature Name Signature Date 0 Andrew Michael Lee Michael Lee Henricksen September 2013 Page (ii) Urban Water Supply & Sanitation Project Feasibility Study for Kampong Cham Sub-project TABLE OF CONTENTS 1. EXECUTIVE SUMMARY .......................................................................................................... 1-11 1.1 Project Description ............................................................................................................ 1-11 1.2 Rationale ........................................................................................................................... 1-11 1.3 Project Impact and Outcome ............................................................................................ 1-11 1.4 Candidate Towns .............................................................................................................. 1-11 1.5 Feasibility Study Context................................................................................................... 1-11 1.6 Subproject Description ...................................................................................................... 1-11 1.7 Cost Estimate .................................................................................................................... 1-12 1.8 Financing Plan................................................................................................................... 1-12 1.9 Executing Agency and Implementation Arrangements..................................................... 1-12 1.10 Implementation Period ...................................................................................................... 1-13 1.11 Procurement ...................................................................................................................... 1-13 1.12 Consulting Services .......................................................................................................... 1-13 1.13 Economic and Financial Analyses .................................................................................... 1-13 1.14 Tariff and Affordability ....................................................................................................... 1-13 1.15 Subproject Benefits and Beneficiaries .............................................................................. 1-14 1.16 Land Acquisition and Compensation ................................................................................ 1-14 1.17 Environmental Impacts ...................................................................................................... 1-14 1.18 Indigenous Peoples ........................................................................................................... 1-14 2. PROJECT RATIONALE, IMPACT AND OUTCOME ................................................................ 1-1 2.1 Rationale ............................................................................................................................. 1-1 2.2 Project Impact and Outcome .............................................................................................. 1-1 3. Profile of Kampong Cham Area .................................................................................................. 3-1 3.1 Town Location and Profile .................................................................................................. 3-1 3.2 Natural Features ................................................................................................................. 3-1 3.3 Socio-Economic Conditions ................................................................................................ 3-1 3.4 Existing Water Supply and Sanitation ................................................................................. 3-3 4. POPULATION GROWTH AND WATER DEMAND FORECASTS ............................................ 4-6 4.1 General ................................................................................................................................ 4-6 4.2 Population Projections ....................................................................................................... 4-6 4.3 Water Demand Forecasts ................................................................................................... 4-6 5. SUBPROJECT DESCRIPTION .................................................................................................. 5-9 5.1 Introduction .......................................................................................................................... 5-9 5.2 Output 1: Water Supply Development ................................................................................ 5-9 5.3 Consultation Activities during Preparation of Kampong Cham Feasibility Study ............. 5-13 5.4 Operation and Maintenance of Project Facilities .............................................................. 5-13 5.5 Lessons learned in Cambodia and the SE Asia region .................................................... 5-14 5.6 Public Private Partnerships (PPP) .................................................................................... 5-15 September 2013 Page (iii) Urban Water Supply & Sanitation Project Feasibility Study for Kampong Cham Sub-project 5.7 Contract Packaging of Subproject .................................................................................... 5-16 6. SUBPROJECT COSTS AND FINANCING PLAN ...................................................................... 6-1 6.1 Cost Estimates .................................................................................................................... 6-1 6.2 Least Cost Analysis ............................................................................................................ 6-1 6.3 Financing Plan..................................................................................................................... 6-1 7. SUBPROJECT FINANCIAL AND ECONOMIC ASSESSMENT ................................................ 7-1 7.1 Approach and Methodology: Financial Assessment ........................................................... 7-1 7.2 Approach and Methodology: Economic Assessment ......................................................... 7-2 7.3 Kampong Cham Provincial Waterworks (KCPWW) ........................................................... 7-3 September 2013 Page (iv) Urban Water Supply & Sanitation Project Feasibility Study for Kampong Cham Sub-project LIST OF TABLES Table 1.1: Kampong Cham Subproject Cost Estimate ($’000’s) ..................................................... 1-12 Table 1.2: KCPWW Financing Plan (KR million) ............................................................................. 1-12 Table 1.3: KCPWW Proposed Tariff Rate - 0%, 50% or 100% Loan ............................................. 1-14 Table 1.4: KCPWW Projected Service Connection ......................................................................... 1-14 Table 3.1: Kampong Cham Population Characteristics ..................................................................... 3-1 Table 3.2: Core village population by ethnic group ............................................................................ 3-2 Table 3.3: Education level by household ........................................................................................... 3-2 Table 3.4: Main Occupation of the HH head in the project area ........................................................ 3-3 Table 3.5: Status of wealth ranking in Kampong Cham City ............................................................. 3-3 Table 3-6: Main Sources of Household Water ................................................................................... 3-5 Table 4.1: Population Projections for Kampong Cham’s Core Villages ............................................ 4-6 Table 4.2: Water Demand Forecasts for Kampong Cham Subproject .............................................. 4-8 Table 5.1: Proposed new infrastructure for Kampong Cham ............................................................ 5-9 Table 5.2: Proposed parallel pipelines ............................................................................................. 5-11 Table 5-3: Proposed pipeline extensions. ........................................................................................ 5-11 Table 5-4: Fittings for establishment of DMA’s. ............................................................................... 5-12 Table 5.5: Subproject Contract Packaging Options ......................................................................... 5-16 Table 6.1 - Subproject Capital Cost ................................................................................................... 6-1 Table 6-2: KCPWW Financing Plan (KR million) ............................................................................... 6-2 Table 7.1: KCPWW Financial Indicators, 2008-2012 ........................................................................ 7-3 Table 7.2: KCPWW Total Investment