Countries and Regions

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p. 3 of 4 BACK | NEXT I. Current Development Trends and Issues II. Implementation of the Country Strategy and Program III. Portfolio Management Issues IV. Country Performance and Assistance Levels

Country Strategy and Program Update 2003-2005: Cambodia

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III. Portfolio Management Issues

A. Portfolio Performance

29. From 1992 to 31 December 2001, ADB approved 20 loans amounting to $558.8 million, all from Asian Development Fund resources. There are currently 17 active loans with a net loan amount of $400.1 million, of which $268.9 million or 67% remains to be disbursed. As of 31 December 2001, ADB's 81 TAs to Cambodia have amounted to about $61 million.

30. Portfolio ratings of the ongoing ADB-assisted projects have generally been good (Appendix 1, Table 6). Of 17 ongoing projects, four are classified as highly satisfactory in terms of implementation progress. The remaining 13 are rated as satisfactory in both implementation progress and development objectives. Start-up activities such as loan signing have generally been as scheduled, but loan effectiveness has been slipping recently. In 2001, contract awards amounted to $40.7 million, which was 97% of the year's projection compared with 123% in 2000. Disbursements as of 31 December 2001 reached $48.7 million or 86% of the year's projection, compared with about 100% in 2000.

31. Overall, the Government has been successful in eliminating many systemic issues that had been hampering efficient project implementation. The Cambodia Resident Mission holds regular meetings with executing agencies on portfolio management issues. In 2001, it also undertook the first joint portfolio review together with the Government and the World Bank. Areas identified for further attention include (i) use of the project readiness filter; (ii) improving the capacity of project management units; (iii) introduction of standard operating guidelines for project implementation and management units; (iv) harmonization of bidding documents; (v) improved monitoring of portfolio indicators; and (vi) monitoring of audit and budget management, and key sector policy issues. Compliance with loan covenants, particularly the timely submission of audited project accounts and financial statements, has generally been satisfactory.

B. Performance Monitoring and Evaluation

32. Given the limited duration of ADB assistance to Cambodia, it is still too early to systematically assess the impact of its interventions. However, since ADB was the first major funding agency to return to Cambodia, its interventions came at a critical time and undoubtedly have had a positive impact. The Special Rehabilitation Assistance Loan⁴ is the only project that was postevaluated. The project had several components: support for transport, energy, agriculture, and education sectors. The project was rated successful. The performance of both the Government and ADB was rated successful. ADB contributed to smooth project implementation through intensive supervision by review missions, while the Government generally complied with loan covenants, except for two relating to timely provision of counterpart funds and maintenance of project facilities.

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