The World Bank has restored funding for the Provincial and Peri-Urban Water Supply and Sanitation Project (PPWSP) and two other projects in Cambodia which were frozen last year after a corruption scandal.

The World Bank and Cambodian Government officials reached agreement on anti-corruption measures to strengthen financial management, procurement and transparency. Procurement will be delegated to an international firm.

In June 2006 the World Bank suspended US$ 7.6 million (EUR 5.8 million) funding for the projects and demanded that the Cambodian Government return what it had received.

In the case of the Provincial and Peri-Urban Water and Sanitation Project, the World Bank declared seven contracts to be mis-procured because of corruption, and cancelled $1.8 million (EUR 1.3 million) from the World Bank credit.

The Cambodian Government is establishing anti-corruption action plans called “Good Governance Frameworks” for all World Bank financed projects.

Related news: Cambodia: World Bank suspends part of loan to water project, Source Weekly, 27 Jun 2006; Corruption: Water Integrity Network launched to “keep water clean”, Source Weekly, 24 Aug 2006

Web site: Provincial and Peri-Urban Water Supply and Sanitation Project (PPWSP - Project profile

Contacts: World Bank, Thailand, Kimberly Versak, e-mail, World Bank, Washington, Melissa Fossberg, e-mail

Source: World Bank , 07 Feb 2007

Tags: governance