Regions and Countries

	Table of Contents
p. 14 of 22 BACK | NEXT I. Country Performance Assessment II. Poverty Reduction and Country Operational Strategy III. Sector Strategies A. Agriculture B. Infrastructure C. Social Infrastructure and Environment D. Governance E. Gender Dimensions of ADB Operations F. Private Sector Development 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 : III. Sector Strategies

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F. Private Sector Development

89. Currently, ADB’s strategy for private sector development is focused on creating an environment that is conducive for private investments. This will be accomplished through efforts to improve economic governance, strengthen the financial sector, and enhance the rule of law. ADB will further assist the development of private sector operations by providing critical physical infrastructure, particularly in provincial towns. ADB assistance will emphasize the development of public-private partnerships, particularly in infrastructure provision. However, in view of the nascent nature of the market economy and the increasing need to generate income and jobs, ADB is exploring opportunities, possibly in agriculture, light industry, and tourism, to play a catalytic role directly in the private sector through the Private Sector Group (PSG). If such opportunities emerge, PSG will need to evaluate them on a case-by-case basis.

90. One prospect for direct involvement in private sector development in Cambodia is through the Mekong Project Development Facility (MPDF). MPDF is an International Finance Corporation-managed initiative to develop SMEs in the Mekong Region through facilitating access to long-term capital and providing business advisory services. These services include investment evaluation and preparation as well as capacity building activities. Current projects include promotion of rice miller associations, a tourism study, and a bank training center initiative. ADB’s involvement includes a proposed regional TA that would help finance the cost of MDPF project consultants and allow ADB a seat on MPDF’s Board of Directors.

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