1. I submit for your approval the following report and recommendation on (i) a proposed loan, and (ii) a proposed grant, both to the Kingdom of Cambodia for subprogram 2 of the
Promoting Economic Diversification Program (PED-SP2); and (iii) a proposed grant for capacity development for the Competition, Regulatory Efficiency, and Small and Medium-Sized
Enterprise Technology (CREST) Project. The design and monitoring framework is in Appendix1.
2. PED-SP2 will support the government's key reform priorities aimed at diversifying the sources of economic growth, supported by increased contribution of the private sector. The
reform priorities include efforts to enhance governance in the business climate by promoting competition policy and regulatory efficiency. PED-SP2 also aims to increase private sector
competitiveness through innovation and enhanced trade facilitation measures. The Development Policy Letter is in Appendix 3 and the Policy Matrix is in Appendix 4.
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