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ADB Approves US$20-M Basic Health Services Project in Cambodia

The health of about 3.9 million Cambodians, or about 40 percent of the total population, will be improved by a US$20 million Basic Health Service Project Loan approved today by the Asian Development Bank.

The Project will help the Government implement its plan to strengthen basic health services in the country and decrease mortality and morbidity from diseases that can be readily treated or prevented -- especially among women, children and the poor.

The Project will strengthen the basic health care system, improve management capacity and pilot test contacting nongovernmental organizations and private sector activities to provide health services. Five provinces -- Kampong Cham, Kampong Chhnang, Prey Veng, Svay Rieng and Takeo -- were selected to be covered by the project.

The loan will be drawn from the Bank's Special Fund resources. It has a repayment period of 40 years, including a grace period of 10 years, and an annual service charge of one percent.

In addition to decreasing mortality rates, the Project will: (i) improve the productivity of adults by reducing the amount of time they are sick; (ii) protect children during a vulnerable time in their lives and improve their psychomotor development; and (iii) increase equity by focusing on rural areas with a high incidence of absolute poverty. It will achieve the latter by setting explicit delivery targets for the poorest 50 percent of the community, addressing diseases that differentially affect poor people, and providing loans to poor families. The Executing Agency is the Ministry of Health.

The Project will strengthen community health services in the five provinces through the construction of health centers, provision of essential drugs and equipment and the establishment of a system for ensuring proper maintenance of health facilities. It will also strengthen district health offices by training district management personnel in budgeting, accounting, data analysis and general office management; provision of adequate working space and office equipment; and development of a system of supervision for health centers.

Another component of the Project is the introduction of health sector reforms. The Project will pilot test the effectiveness and efficiency of contracting with nongovernment organizations and private sector groups to provide basic health services. In addition, a pilot credit scheme will be established aimed at preventing poor families from becoming destitute as a result of very heavy medical expenses.

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