Phnom penh: The Ministry of Industry, Science, Technology and Innovation (MISTI), UNICEF, and UN Capital Development Fund (UNCDF) have concluded discussions and agreed on crucial governance structures for the Water Infrastructure and Smart Energy in Cambodia (WISE) Joint Programme. This initiative, a revolving blended-finance facility, is designed to leverage local financing institutions to speed up Cambodia's progress towards Sustainable Development Goals (SDGs) by funding climate-resilient water infrastructure.
According to Agence Kampuchea Presse, UNICEF Representative Dr. Will Parks highlighted that the programme has been in development for several years. It aims to attract private sector financing alongside concessional resources and capacity building for Private Water Operators (PWOs). Dr. Parks emphasized the programme's significance as the first revolving blended finance mechanism for the water supply sector, addressing the challenges PWOs face, such as high capital costs, short loan terms, and limited technical expertise.
The WISE facility combines commercial financing with concessional capital to reduce lending rates, supported by technical assistance for PWOs and financial institutions. It also enhances the use of credit guarantees through the Credit Guarantee Corporation of Cambodia. Minister Hem Vanndy underscored the importance of maintaining a strategic approach within the steering committee, ensuring the programme remains aligned with MISTI priorities while coordinating effectively with key stakeholders.
Minister Hem Vanndy expressed the programme's goal of creating a mutually beneficial situation for the government, private sector, and citizens. The initiative seeks to provide technical, financial, and technological support to enhance service delivery. The WISE Joint Programme aims to assist at least 30 PWOs in investing in renewable-powered infrastructure and digital water management systems, guided by a national steering committee in alignment with Cambodia's national plans.