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Seminannual Report on Project Administration and Technical Assistance Implementation for the Period Ending 30 June 1999 : Country Implementation Highlights
CambodiaThe number of ongoing loans remained at nine with no loans approved or closed during the period. All the ongoing loans except one were rated as satisfactory in terms of both implementation progress and achievement of development objectives. For the loan rated unsatisfactory, the Government failed to submit audited project accounts and financial statements. No loan became effective during the period, while one loan approved in December 1998 was awaiting effectiveness. One loan underwent major changes in project scope. Project implementation was relatively slow during the period. Project administration activities in Cambodia faced considerable difficulties between mid-1997 and late 1998 as a result of the political situation in the country. The formation of a new government in November 1998, however, ushered in a period of political stability that is expected to allow the Government to focus on implementation of needed structural reforms. Since early 1999, the coalition Government has exhibited a great deal of determination in addressing forestry management issues and the demobilization of the military and political forces. The Government has also agreed to hold in-country aid agency meetings on a quarterly basis to review the progress of policy reform. The first such meeting was held in June 1999. The return of political stability also allowed the Bank to resume its normal operations. The Bank fielded a Country Programming Mission and a Country Operation Strategy Mission during the first half of the year. The major constraints that hindered progress in implementing projects included (i) unfamiliarity with Bank's guidelines and procedures; (ii) inadequate resources available for counterpart funding; (iii) very low staff morale due to low salaries, making it necessary for staff to have second jobs; (iv) inadequate numbers of staff in project implementation management units, and inadequate experience or expertise of key project personnel in implementing projects; (v) lack of MIS in the financial, administrative, and technical sections of almost all organizations; and (vi) delays in fielding international consultants, especially those responsible for training local counterparts. To improve performance in project implementation, Bank missions were fielded regularly to provide guidance to EAs and consultants, particularly in procurement. The RM also holds regular bimonthly meetings with the EAs to review the progress of project implementation and follow-up on agreed actions. A number of Bank-assisted projects have been providing TAs for institutional strengthening and capacity building, which are essential for long-term sustainability of projects. The Government, on its part, is implementing an ongoing administrative reform program to (i) restructure the public sector by producing a clear definition of mandates and responsibilities, and by developing legal reforms and a legal framework for ministries, agencies and public service organizations; (ii) strengthen the management of line ministries by simplifying and standardizing administration procedures, developing information systems, and training senior managers; (iii) develop human resources; and (iv) strengthen provincial administrations, including the establishment of a legal framework and capacity building in various government ministries. Contract awards reached $8.9 million, or 94 percent of the semiannual projection of $9.4 million. This, however, was only 14 percent of the annual projection of $62.4 million as the majority of the contract awards had been projected for the second half of the year. Disbursements reached $10.9 million, which was 75 percent of the semiannual projection of $14.5 million and 24 percent of the annual projection of $46.0 million. The disbursement ratio declined from 11.3 percent as of 30 June 1998 to 9.7 percent as of 30 June 1999 against a projection of 18.4 percent for the year and the Bankwide average of 11.9 percent. There were no disbursements from program loans. Net resource transfer also decreased from $15.0 million as of 30 June 1998 to $10.3 million as of 30 June 1999 because of low disbursements. Continuous monitoring and intensive supervision will be required for all projects, particularly those in the rural infrastructure and health sectors. Audited accounts were due for seven loans and compliance was achieved for five. Of the two noncomplying loans, submission for one was delayed by less than six months and the other between 6 and 12 months. Of the nine ongoing loans, four met the environmental covenants while three were in the process of meeting them. The covenants were not applicable to the remaining two. Social covenants were met for three loans, and compliance was in progress for another three. The covenants did not apply to the remaining three. Data on Cambodia are summarized in Tables 23 and 24.  
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