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Country Operational Strategy - Cambodia :
IV. Priority Sectors for ADB's Future Operations
B. Guidelines for ADB Interventions in Cambodia
93. Over the period covered by this strategy, it is assumed that Cambodia will remain a category A (ADF lending only) country, with about three loans and an average of 8-10 TAs processed each year. To maximize ADB's developmental impact and ability to offer Cambodia broad-based policy dialogue from a regional perspective under tight resource constraints, interventions should, to the extent possible, conform to the following guidelines:
Sector strategy. In areas in which ADB plans to continue or begin operations, a clear road map for its long-term involvement should be developed. These road maps should combine appropriately sequenced capacity building and physical investment interventions. Each road map should identify the Government's goals and present in detail the investment needs as well as policy and institutional reforms needed to attain those goals. Actions that the Government, ADB, and the other aid agencies will take to achieve these goals should be indicated. The expected impact of planned ADB interventions on poverty reduction and social development should be assessed.
Long-term involvement. Consistent with the need for well-planned and comprehensive sector interventions, ADB should maintain a continuous presence in each subsector in which it plans long-term involvement. This will require careful programming to ensure TAs and loans are placed in the pipeline and processed at appropriate intervals. With the average loan lasting four years, this means that each sector in which ADB has made a long-term commitment will require an intervention approximately every three to four years, although this may vary by sector. Given resource constraints and the requirement for long-term involvement, the number of subsectors in which ADB makes a long-term commitment should be kept to about 10.
DMC ownership. The success of a sector development program relies on government commitment to the sector strategy as evidenced by (i) willingness to undertake necessary policy reform, (ii) satisfactory progress in institutional change, and (iii) successful loan and TA implementation. During the preparation of each new intervention, ADB should reassess the commitment of the agencies involved and allocate resources only if commitment is evident.
Sector selection: The criteria for selecting the major sectors of ADB involvement should include (i) the potential for poverty impact, (ii) the developmental needs of the country, (iii) ADB's areas of expertise, (iv) program balance, (v) coordination with other aid agencies, and (vi) absorptive capacity.
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