Saturday, 6 September 2008

Water: A key to investment?

TRACEY SHELTON; Until recently, drinking municipal water straight from the tap was unthinkable for most. But water authority officials say city water is now as safe as bottled or boiled water.

Watered down
Only 24 of the 130 bottled- water producers in Cambodia are registered with the government, raising concerns for quality, according to Ping Sivlay of the Industry Ministry. "Some brands are safe to drink, but many are not," he said.

The Phnom Penh Post

Written by Kay Kimsong
Friday, 05 September 2008

The Phnom Penh Water Authority says the capital's vastly improved water quality should be further incentive for investors to set up shop in the city

ONCE shunned, Phnom Penh's public water supply has improved to the point where it is safe to drink from the tap, according to the Phnom Penh Water Authority, which is using the capital's water quality as a major selling point to potential investors.

"Today our water is 100 percent safe to drink directly from the family faucet, Ek Sonn Chan, told the Post Wednesday, explaining that new pipes and the introduction of chlorine has raised the calibre of the water.

Raw municipal water samples were tested this year at PSB Corp in Singapore and the Coca-Cola Co's Global Quality Analytical Services laboratory in Shanghai, he said.

Both found the water to be free of dangerous materials like lead or mercury, or to contain acceptable levels of other substances, according to documents obtained by the Post.

With investment in Cambodia growing, the demand for water in the capital has increased 10 percent year-on-year, Ek Sonn Chan said, and now stands at 250,000 cubic metres a day.

He added that the authority has connected some 17,000 households to public water in the previous year and hopes to have 40,000 new customers by 2011.

However, factories and an expanding hospitality sector continue to be the leading consumers, he said.

In the past, he said, both have been forced to pour millions of dollars into their own treatment plants or source their water from elsewhere, adding heavily to the overall cost of doing business in Cambodia.

"Now hotels like the Cambodiana and factories have enough [public] water supply - they are using Phnom Penh water and lowering their costs," Ek Sonn Chan said.

While the Cambodiana still maintains a private water supply, general manager Bernard Piere said the hotel began using public water earlier this year.

"This is a great step to have the convenience of clean state water," he said.

Luu Meng, president of the Cambodian Hotel Association, said that five years ago, hotels were spending much more money on water-treatment operations.

"Today is much cleaner," he said Thursday.

"I can say that almost every hotel is using state water - it is important that the water supply becomes higher quality, for both business and personally," he added.

The high cost of utilities continues to be the biggest deterrent to foreign investment, say commerce officials, who have encouraged the government to lower both water and electricity prices. The water authority is planning to build a new US$40 million water treatment plant by 2009, Ek Sonn Chan said.

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