Cambodia: Capacity Building for the Cambodian National Petroleum Authority

Sovereign Project | 42100-012

Summary

The proposed capacity development technical assistance (TA) aims to support the development of Cambodia's oil and gas industry to allow the government its due share of sector revenue while also fostering greater private sector participation in upstream and downstream operations. The impact of the TA is increased revenue from the oil and gas sector in Cambodia for overall economic development. The outcome will be enhanced institutional and staff capacity within the CNPA to perform its role as the regulator for Cambodia's oil and gas sector.

Specifically, the TA will: (i) help prepare key technical analyses and operating guidelines, such as contractual and fiscal regimes and inter-agency coordination protocols, and undertake workforce planning assessments, (ii) develop and roll out an institutional development plan, and (iii) provide training, along with such knowledge resources as computer equipment and software, to enhance staff skills and managerial capacity.

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Project Name Capacity Building for the Cambodian National Petroleum Authority
Project Number 42100-012
Country Cambodia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7757-CAM: Capacity Building for Cambodia National Petroleum Authority
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Energy - Conventional energy generation
Gender Equity and Mainstreaming No gender elements
Description

The proposed capacity development technical assistance (TA) aims to support the development of Cambodia's oil and gas industry to allow the government its due share of sector revenue while also fostering greater private sector participation in upstream and downstream operations. The impact of the TA is increased revenue from the oil and gas sector in Cambodia for overall economic development. The outcome will be enhanced institutional and staff capacity within the CNPA to perform its role as the regulator for Cambodia's oil and gas sector.

Specifically, the TA will: (i) help prepare key technical analyses and operating guidelines, such as contractual and fiscal regimes and inter-agency coordination protocols, and undertake workforce planning assessments, (ii) develop and roll out an institutional development plan, and (iii) provide training, along with such knowledge resources as computer equipment and software, to enhance staff skills and managerial capacity.

Project Rationale and Linkage to Country/Regional Strategy

Prior support from the Asian Development Bank to the regulator, the Cambodian National Petroleum Authority (CNPA), has helped to fund an analysis of CNPA's strategic functions, a road map for development of upstream and downstream petroleum sector operations in the country and an outline for a combined upstream and downstream petroleum law. A second ADB TA provided on-the-job training and advice to the CNPA counterpart staff and advice and guidance on IT needs and the installation of the basic IT equipment and services during 2008-2010. All indications are that the first set of production permits will be issued in the near term and oil revenues are to begin accruing to the government. The government has requested ADB's continued assistance to help strengthen the CNPA's staff capacity. In addition, the TA program will serve as a coordinating platform and help integrate the delivery of future assistance to the sector planned by several development partners and the private sector. Institutional strengthening of the CNPA is well-aligned with the priorities of ADB's country operations business plan (COBP), which are to promote good governance, institutional capacity building, and the development of an enabling environment for private sector development. The TA will expand the CNPA's capacity to manage exploration and potential production of onshore oil and gas around the Tonle Sap region, which is a geographical focus of the COBP.

The government recognizes the importance of good governance in effective development of the petroleum sector and has constituted a working group under its Council for the Development of Cambodia that comprises representatives from the Ministry of Economy and Finance and the CNPA. The development partners group led by ADB has been helping the CNPA and the government working group to implement the reforms that will allow the CNPA to negotiate with petroleum companies in a transparent manner.

Impact Increased revenue from the oil and gas sector in Cambodia for overall economic development
Project Outcome
Description of Outcome Enhanced institutional and staff capacity within CNPA to perform its role as the regulator for Cambodia's oil and gas sector
Progress Toward Outcome

About fifteen new staff engaged at the CNPA. CNPA staff regularly conducting their business internally and externally variously hosted at different Ministries

Requirement for EIAs being rigidly enforced in close collaboration with the Ministry of the Environment.

Implementation Progress
Description of Project Outputs

An effective contractual regime, including fiscal regimes and interagency operation protocols, and workforce planning measures that complement these improvements implemented

Institutional capacity of CNPA strengthened.

Status of Implementation Progress (Outputs, Activities, and Issues)

Coherency of understanding of fiscal and commercial matters pertaining to petroleum development obtained between the key Government institutions: CNPA MEF and GDT. Regular meetings held between these organisations with proper professional dialogue.

Continued close co-operations between the Ministry of the Environment and CNPA including National Committee on Maritime Security. Also collaboration with Ministry of Labour, ITC and vocational training centre.

Improved bilateral dialogue and multinational events participation including SPE/AAPG/AIPN/IPTC.

Plans to start providing more delegation to staff for their conduct of work now that the scope of work is better understood. Continued use and adoption of work thematic groups. Have requested petroleum contractor to submit all data to international standards. Received data is being reviewed for completeness. Inventories of data being made. Systematic storage of official documents.

Improved accountability of data submission from petroleum contractors.

Increased collaboration with tertiary institutions (has included re-adoption of geology in curriculum at ITC). CNPA plans to take on new graduates as interns. Attendance of students at stakeholder briefing on petroleum sector development. Improved use of petroleum contractor training funds with designation of courses and attendees. Use of bilateral training opportunities offered to CNPA:, e.g. by Petrad, JCCP, Jogmec, and CCOP. Development of a CNPA training plan currently being elaborated. Regular attendance of courses and other training programmes by CNPA staff using petroleum contractor training funds.

All TA activities will be completed by 31 March 2013.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The TA will require approximately 14 person-months of international consulting services. Given the specialized nature of the inputs required, the TA will be implemented by a team of individual international consultants supervised by the ADB project officer. ADB's Guidelines on the Use of Consultants (2010, as amended from time to time) will be followed in the selection of these consultants. The consultants will comprise a petroleum adviser, who will be engaged for 6 person-months on an intermittent basis throughout the TA, and a series of thematic advisors. The terms of reference for petroleum adviser are in Appendix 2. The adviser will have broad and considerable petroleum sector experience and an extensive background in the development of national petroleum institutions. The thematic advisers will be engaged on an as-needed basis and upon the request of the CNPA to address particular issues and petroleum sector themes such as petroleum economics, petroleum production accounting, environmental management, petroleum exploration and development, petroleum financing, and human resources development. It is envisaged that an estimated 8 person-months of inputs would be required across the various disciplines. Terms of reference for each assignment will be prepared during implementation of the TA in consultation with the CNPA. Equipment required under the TA will be procured in accordance with ADB's Procurement Guidelines (2010, as amended from time to time), and will be turned over to the implementing agencies upon TA completion.
Responsible ADB Officer Jong-Inn Kim
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Energy Division, SERD
Executing Agencies
Cambodian National Petroleum AuthorityOffices of the Council Ministers
Room B7 13-14 Russian Federation Blvd.
Phnom Penh, Cambodia
Timetable
Concept Clearance 12 Nov 2010
Fact Finding 15 Nov 2010 to 19 Nov 2010
MRM -
Approval 16 Dec 2010
Last Review Mission -
Last PDS Update 19 Mar 2013

TA 7757-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 Dec 2010 01 Feb 2011 01 Feb 2011 31 Mar 2013 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 0.00 0.00 0.00 0.00 0.00 400,000.00 16 Dec 2010 360,956.28

Safeguard Documents

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Evaluation Documents

See also: Independent Evaluation

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