Regions and Countries

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p. 6 of 22 BACK | NEXT I. Country Performance Assessment A. Economic Performance Assessment B. Poverty Assessment C. Assessment of Socio-Environmental Performance D. Governance: Sound Development Management E. Implementation Assessment II. Poverty Reduction and Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work IX. Local Cost Financing

Country Assistance Plans - Cambodia : I. Country Performance Assessment

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E. Implementation Assessment

1. The Portfolio

46. ADB resumed operations in Cambodia in 1992, approving 65 TA grants amounting to $48.7 million and 12 concessional loans to Cambodia for a total of $374 million between 1992 and 1999. The portfolio is still young with only one loan closed. As of the end of 1999, of the portfolio of 11 active loans, only $83 million of total available funds of $293.4 million were disbursed (Appendix 2, Tables 1 and 2). Of the $293.4 net loan amount, 41.0 percent is for loans in transport and communications, 32.0 percent for social infrastructure, 18.0 percent for agriculture, and 9.0 percent for energy. Of the 65 TAs implemented by ADB since 1992, 51 were for advisory and operational purposes, mainly in macroeconomic management, project implementation, and sector strategic planning.

47. Considering the relative youth of the program, overall performance on ADB’s portfolio in Cambodia has been generally satisfactory. Of the eleven ongoing projects, implementation progress is considered highly satisfactory for two, partially satisfactory for one, and satisfactory for the remainder. However, in 1999 performance in both contract award and disbursement ratios deteriorated. The contract award ratio (with program loan) fell from 28.8 percent to 9.6 percent from 1998 to 1999. The disbursement ratio (with program loan) fell from 21.5 percent to 17.2 percent over the same time period. A $23 million contract for the GMS: Phnom Penh to Ho Chi Minh City Road Project and a $26 million contract for the Primary Roads Restoration Project were both affected by delays in submitting resettlement action plans for ADB approval. A delay in the release of the second tranche of the $30 million Agricultural Sector Program Loan arose because of the lengthy process of public consultations on the draft land law.

2. Issues in Project Implementation

48. Improved portfolio management is essential. Cambodia’s aid portfolio is expected to expand rapidly during the coming years. Furthermore, the aid environment is changing rapidly with increased emphasis being put on government ownership of the development process. Aid assistance is increasingly being based on the effectiveness of macroeconomic management, including efficient use of external funding, especially portfolio performance. Because of extraordinary capacity constraints in Cambodia, ADB has extensively supported Government efforts to improve portfolio performance through over $14 million in grant TA for training in external aid management, ADB policies and procedures, and project implementation.

49. ADB is working to improve portfolio performance by, for example, putting additional headquarters and local staff resources in the Cambodia Resident Mission (CARM). Based on lessons learned concerning project implementation, it was recommended during the December 1999 Country Portfolio Review Mission that ADB and the Government work together to:

1. Avoid unnecessary delays in project implementation by (ADB) reducing the response time from ADB Headquarters to line Ministries by (the Government) delegating further approval authority to line Ministries.

2. Promote effective transfer of knowledge from international consultants to counterpart staff by assigning qualified counterpart staff with appropriate incentives that will work fulltime with the consultants, who in turn must emphasize training aspects of a TA.

3. Work together to develop portfolio performance indicators and introduce portfolio performance targets.

4. Improve information on ADB business procedures available to executing agencies by conducting additional seminars as necessary and by expediting on-line access to Loan and Financial Information System (LFIS) and Project Performance Ratings (PPRs) for line ministries and ADB Division at MEF. CARM could initially provide monthly updates.

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