fbpx 41392-023: Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2) | Asian Development Bank

Cambodia: Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2)

Sovereign (Public) Project | 41392-023 Status: Active

The Asian Development Bank is working with Cambodia to improve public service delivery. The project is assisting in the development of policy and regulatory frameworks for decentralization, providing selected rural districts with facilities for their operations, and developing financial management capacity.

Project Details

Project Officer
Jhelum Tini Thomas Southeast Asia Department Request for information
Country
  • Cambodia
Modality
  • Loan
Sector
  • Public sector management
 
Project Name Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2)
Project Number 41392-023
Country Cambodia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3414-CAM: Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2) (Project Loan)
concessional ordinary capital resources lending / Asian Development Fund US$ 20.00 million
Loan 3415-CAM: Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2) (Policy-Based Loan)
concessional ordinary capital resources lending / Asian Development Fund US$ 15.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Public sector management / Decentralization - Public expenditure and fiscal management

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The Decentralized Public Service and Financial Management sector development program is based on a programmatic cluster approach. The program cluster comprises two subprograms enveloped by a medium term results-based framework. The DPSFM has a policy-based loan and a project loan. Subprogram 2 of the cluster approach is structured around seven major outputs: (i) the development and regular update of a gender sensitive policy and regulatory framework for decentralization; (ii) the establishment of institutions for efficient coordination of SNDD policies; (iii) the definition of clear service delivery responsibilities of SNAs; (iv) assignment of efficient tax and non-tax revenue sources to subnational administrations; (v) the implementation of fiscal transfers that ensure comparable levels of service delivery across SNAs; (vi) the development of capacities for efficient decentralized public financial management; and (vii) the design and implementation of accountability mechanisms for SNAs to their constituencies.

The project loan linked to subprogram 2 will support establishment and operations of the Sub-national Investment Fund (SNIF). The project will allocate $20 million dollar equivalent to the SNIF, a national government grant mechanism for local investment projects. Of the proposed amount, approximately $8 million will be allocated to financing civil works and equipment for SNAs (of an average project value of around $70,000), and approximately $1 million will be allocated to equipment and consultancy services of the SNIF Secretariat between 2016 and 2018. Consultancy services will include: a) training of SNIF Secretariat and SNAs; b) annual performance assessments of SNAs; c) annual evaluation and audit of investments; d) external audit of SNIF finances; and e) technical backstopping support for the SNIF Secretariat. Eligible SNAs will submit project proposals from a positive list of subsectors for investment decided by the SNIF Board. The SNIF Secretariat will evaluate the proposals and submit for approval of the Board. Eligible SNAs will pass the annual performance assessment against a number of criteria including, without limitation, financial management and procurement capacity.

Project Rationale and Linkage to Country/Regional Strategy

The Government of Cambodia is aware of large regional inequalities. Reforms aim to improve the management capacity of local administrations, and to involve citizens in the decision-making processes, enabling more efficient public service delivery which fits local needs and reduces these regional inequalities.

Subprogram 2 of the Decentralized Public Service and Financial Management Sector Development Program aims to improve access to and coverage of basic services by helping to implement an efficient system of intergovernmental fiscal relations. The program will also facilitate development of: (i) revenue sources for subnational administrations (transfers, tax and non-tax revenues) that can be used for decentralized service delivery; (ii) capacity for efficient decentralized public financial management; and (iii) social accountability systems to ensure adequate interaction between district administrations, their councils, and local constituents.

Impact Access to and coverage of basic services across the country improved.
Project Outcome
Description of Outcome An efficient system of intergovernmental fiscal relations that assists service delivery by subnational administrations
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Program outputs 1-7: completed by July 2016

1. Institutions for efficient coordination of subnational democratic development policies established.

2. A gender-sensitive policy and regulatory framework for decentralization developed and regularly updated.

3. Clear service delivery responsibilities of d subnational administrations defined.

4. Efficient tax and nontax revenue sources to subnational administrations assigned.

5. Fiscal transfers that ensure comparable levels of service delivery across SNAs implemented.

6. Capacities in support of efficient decentralized public financial management developed.

7. Accountability mechanisms for subnational administrations to their constituencies designed and implemented.

Project output

Sub-National Investment Fund established and operations started.

Status of Implementation Progress (Outputs, Activities, and Issues) Project output status:1) The SNIF was established in February 2016, it was only fully operational as of mid-2017 and staffed with a total of 24 staff (hired with government funding) in May 2018. 2) Investment proposals for the RGC-funded grants were received by SNIF Secretariat from the 19 Districts in April 2018 and procurement is ongoing. Construction is expected to commence in October 2018.3) Investment proposals for the ADB-funded grants were received by SNIF Secretariat from the 32 Districts in August 2018 and being reviewed for a simplified feasibility study. 4) Three of the five national experts i.e. Infrastructure, Finance and Safeguards have commenced services in early-September 2018. Replacement for the National Procurement (Goods/Services) and Procurement (Civil Works) experts is ongoing. 5) Procurement of goods is expected to be finalized by Q1 of 2019. A loan review mission was completed in February 2019 to follow-up on implementation progress in procurement for both Components 1 (Civil Works) and 2 (SNIF Secretariat Operations). A capacity building on procurement, financial management and safeguards is planned for Q2 of 2019.
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The proposed Project loan (with multiple subprojects) will support small-scale infrastructure investments such as schools, health clinics, village roads and bridges, irrigation systems, markets, and water supply. Most subprojects will be in the cost range of US$ 25,000 to 100,000 and may cause temporary, reversible and readily mitigated adverse environmental impacts. An environmental assessment and review framework has been prepared to guide SNIF subproject selection, screening, categorization, environmental assessments, and preparation and implementation of environmental management and monitoring plans of subprojects. The expected subprojects will have limited safeguard impacts.
Involuntary Resettlement Under the proposed Decentralized Public Service and Financial Management Sector Development Program, Subprogram 2 (DPSFM I) the Sub-National Investment Fund will provide eligible rural Districts with grants for local investment projects. The project location is selected based on the criteria that there will be no private land acquisition and the available public land is free from any kind of encumbrances. This will be included as a loan covenant as part of the loan agreement. All land to be used will have clear titles and are free of all encumbrances. These lands are not occupied or productively used. The subproject selection criteria ensures that any proposed subproject with any involuntary resettlement will not be included as part of the project. Thus, no land acquisition will be involved and the project will not trigger any involuntary resettlement.
Indigenous Peoples The proposed Decentralized Public Service and Financial Management Cluster Sector Development Program (DPSFM 2) seeks to assist improved local public service delivery by supporting the development of sub-national administrations accountable to their citizens, through the implementation of the Royal Government of Cambodia's (the Government) Decentralization and De-concentration (D&D) reforms. The proposed second subprogram, for the DPSFM program will include a policy loan and a project loan. Under the proposed subprogram 2 (DPSFM I) will provide eligible rural Districts with grants for local investment projects. The subproject selection criteria ensures that any proposed subproject with any indigenous peoples impacts will not be included as part of the project.
Stakeholder Communication, Participation, and Consultation
During Project Design The design included several rounds of consultations to a broad range of civil society organizations. Drafts of the concept paper and policy matrix were shared and feedback from CSOs sought. The draft Sector Assessment on Public Sector Management reforms was presented to CSO representatives.A large number of Government agencies participated in the design and implementation of the program, including the Ministry of Interior, Ministry of Economy and Finance, the National Committee on Sub-national Democratic development, etc. District and municipal administrations are consulted regularly on all aspects of project implementation.
During Project Implementation
Business Opportunities
Consulting Services

Annual Performance Assessment (firm)

SNIF Website Development & Maintenance (firm)

International Project Manager

National Infrastructure Expert

National Finance Expert

National Safeguards Expert

National Procurement Expert (2)

Procurement

Procurement of Goods

Civil Works

Responsible ADB Officer Jhelum Tini Thomas
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
National Committee for Sub-National Democratic Development Secretariat
[email protected]
Ministry of Interior Norodom Blvd,
Sangkat Tonle Bassac,Khan
Chamcar Mon, Phnom Penh
Timetable
Concept Clearance 05 Mar 2012
Fact Finding 27 Apr 2015 to 05 May 2015
MRM 16 Jun 2015
Approval 18 Aug 2016
Last Review Mission -
Last PDS Update 28 Mar 2019

Loan 3414-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Aug 2016 06 Oct 2016 20 Dec 2016 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 30.70 Cumulative Contract Awards
ADB 20.00 18 Aug 2016 0.17 0.00 1%
Counterpart 10.70 Cumulative Disbursements
Cofinancing 0.00 18 Aug 2016 0.50 0.00 3%

Loan 3415-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Aug 2016 06 Oct 2016 20 Dec 2016 30 Jun 2017 - 13 Feb 2017
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 15.00 Cumulative Contract Awards
ADB 15.00 18 Aug 2016 14.38 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 18 Aug 2016 14.38 0.00 100%

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.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

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.

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Procurement Specialist Individual - Consulting Closed 23 Mar 2019 29 Mar 2019
International Project Manager Individual - Consulting Closed 21 Mar 2019 26 Mar 2019
Procurement Specialist (Civil Works) Individual - Consulting Closed 24 Nov 2018 30 Nov 2018
Finance Specialist Individual - Consulting Closed 29 May 2018 04 Jun 2018
Procurement Specialist (Goods and Services) Individual - Consulting Closed 29 May 2018 04 Jun 2018
Safeguard Specialist Individual - Consulting Closed 29 May 2018 04 Jun 2018
Infrastructure Specialist Individual - Consulting Closed 29 May 2018 04 Jun 2018
Procurement Specialist (Civil Works) Individual - Consulting Closed 29 May 2018 04 Jun 2018

Contracts Awarded

No contracts awarded for this project were found