Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 18 Apr 2006
PDS Updated as of 06 Sep 2011

Project Name Financial Sector Development Program II
Country Cambodia
Project/Program Number 34389-012
Status Closed
Geographical Location Cambodia
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Finance
Subsector Finance sector development
Strategic Agendas
Drivers of Change
Gender Equity and Mainstreaming Categories

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
Technical Assistance4835Japan Special Fund650
TOTAL US$ 650

Summary of Environmental and Social Issues

Social impact is positive and environmental concerns are minimal.

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

The PPTA will build on upcoming work to update the Financial Sector Blueprint and the results of FSP I. An integral part of the PPTA activities will be to ensure active dialogue with policy makers and other public and private sector stakeholders. Project findings, program proposals and other deliverables will be presented and discussed regularly with policy makers and other stakeholders.

During Project Design
tbd
During Project Implementation
tbd

Description

The PPTA will assist in the selection of appropriate policy conditions and help build capacity within the implementing agencies so that they are better able to fulfill those conditions. The overall goal will be to support the Government in developing a sound and efficient financial system that enhances resource mobilization and contributes to sustainable economic growth. This will be pursued through: i. Development of the banking sub-sector ? effective prudential supervision of banks and non-bank financial institutions; enhanced competition to reduce transaction costs, introduction of new products and services; extension of facilities to the rural areas. ii. Legal and Regulatory framework ? effective implementation of laws and regulations adopted during FSPL I and the development of relevant laws and accompanying regulations necessary for the effective functioning of the financial sector. iii. Development of the insurance sub-sector ? implementation of revised insurance law and accompanying regulations, divestment of state-owned insurance and re-insurance companies, strengthened supervisory function, and increased competition to reduce costs and introduce new products and services. iv. Inter-bank and money markets development - implementation of approved laws and accompanying regulations for the payments system and inter-bank and money markets. v. Further strengthening of the financial market infrastructure, including information infrastructure, accounting and auditing institutions, and commercial arbitration centers. vi. IT project for NBC ? feasibility study and a report on the outcome of discussions with officials of the NBC project design for the IT loan.

Project Rationale and Linkage to Country/Regional Strategy

The development framework for Cambodia?s financial sector is based on the 2001-2010 Financial Sector Blueprint (Blueprint) that was developed with ADB support and adopted by the Government in late 2001. Implementation of the Blueprint to date has helped with the successful transition from a mono-banking to a two-tier (central bank and financial institutions) system. Work to update the Financial Sector Blueprint (2006-2015) was completed at the end of 2006 and officially adopted by the Government of Cambodia in February 2007. Since implementation of the Blueprint commenced in 2001 there have been some notable achievements as well as lessons to be learned (from international and domestic experience). Those, plus new challenges now emerging, the Government would like to update the blueprint so that it may more accurately reflect the current situation. Work on the Blueprint update has commenced with technical support from ADB and it is expected that the update will be completed by the second quarter of 2006. The updated Blueprint will provide the framework for reform in the sector over the next 10 years and useful inputs for the design of the second FSPL. Against this background, Financial Sector Development has to be coordinated closely with private sector development strategies to address governance and corruption issues, problems with access to finance, high transaction costs, limited access to information and increasing competition in what should be a level playing field. As private sector development is one of the pillars for ADB's operations in Cambodia, financial sector development is a priority sector and one in which ADB has played a leading role.

Development Impact

Project Outcome

Description of Outcome
Progress Towards Outcome

Outputs and Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2006 Apr 18
Consulting Services
Consulting Services yet to be determined.
Procurement
tbd
Procurement and Consulting Notices
http://www.adb.org/projects/34389-012/business-opportunities

Timetable

Concept Clearance 21 Mar 2006
Fact-finding 17 May 2006 to 26 May 2006
Management Review Meeting
Approval 08 Sep 2006
Last Review Mission

Milestones

Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Technical Assistance 4835 08 Sep 2006 05 Oct 2006 05 Oct 2006 31 Aug 2007 30 Sep 2008

Utilization

Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
Cumulative Disbursements

TA Amount (US$ thousand)

Approval Number Approved Amount Revised Amount Total Commitment Uncommitted Balance Total Disbursement Undisbursed Balance
Technical Assistance 4835 650 650 488 162 488 162

Contacts and Update Details

Responsible ADB Officer Samiuela T. Tukuafu (stukuafu@adb.org)
Responsible ADB Department Southeast Asia Department
Responsible ADB Divisions Public Management, Financial Sector and Trade Division, SERD
Executing Agencies National Bank of Cambodia
Mme Tal Nay Im

Links

Project Website http://www.adb.org/projects/34389-012/main
List of Project Documents http://www.adb.org/projects/34389-012/documents