Seeing Gulf Coast oil spill, environmental and other groups in Cambodia say the country needs to do more to safeguard its environment.
The award will be conferred to the Phnom Penh Water Authority during World Water Week in Stockholm, which begins Sept. 5.
It is not uncommon for companies to pay bonuses for concessions here, but what happened to that money remains unknown.
Villagers here say the dams and the power they generate are not worth the cost.
Cambodian officials in London have baulked at their challenge to openly debate environmental watchdog Global Witness.
Experts have singled out plans for two mainstream dams as the greatest threat to the productive inland fisheries of the Mekong region.
The Global Witness report says sand dredging has negative impacts on the environment.
The locals told investigators that the dredging already has damaged Cambodia's coastal ecosystem.
Global Witness reported that at least 790,000 tons of sand from the coast are monthly shipped out.
Europe is seeking cooperation between Cambodia and other Asian countries to eliminate illegal trade in forest products by 2013.
A World Bank report on illegal logging in 2006 said annual global losses from illegal cutting were more than $10 billion.
The agreement, signed Tuesday afternoon, includes cooperation in evaluating future business opportunities.