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

Sovereign Project | 41392-023

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.

Project Details

  • Project Officer
    Thomas, Jhelum Tini
    Southeast Asia Department
    Request for information
  • Country/Economy
    Cambodia
  • Modality
  • Sector
    • Public sector management
Project Name Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2)
Project Number 41392-023
Country / Economy 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)
Asian Development Fund US$ 20.00 million
Loan 3415-CAM: Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2) (Policy-Based Loan)
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 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 To date, under cycle 1, construction of the 22 subprojects for road rehabilitation in 22 districts across 5 provinces were completed by December 2020 with projects with a total value of $1.2 million. Cycle 2 is currently underway with support to eligible districts to develop their infrastructure project proposals (IPPs).
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)

A. PROGRAM OUTPUTS-(completed in July 2016)

The government implemented coaching and mentoring systems, including the completion of technical manuals for subnational council meetings and public forums, training and the establishment of targets for the recruitment of trainers and coaches to increase the share of women.The government implemented coaching and mentoring systems, including the completion of technical manuals for subnational council meetings and public forums, training and the establishment of targets for the recruitment of trainers and coaches to increase the share of women.100% of female councilors trainedDistrict charters have been adopted by 185 districts and the NCDD-S has approved a Social Accountability Framework for subnationaladministrations, including a supporting implementation plan.Permanent regulations covering human resources management by subnational administrations have been completed, including a Draft Royal Decree covering subnational administration personnel and a final Sub-decree on the Delegation of Power to Sub-National Administrations to Appoint, Move and Terminate Civil Servants Working at the subnational level.NCDD-S is adequately staffed, with female staff representing approximately 20% of the total, and has received a stable national budgetary allocation for its operating expenditures. Approximately 30% of SNA advisors and staff are women. Approved and draft regulations governing the management of SNA personnel incorporate recruitment quotas which target the proportion of women in newly recruited civil servants at 20%50%.Based on NCDD-S AWPB for 2014 and 2015, NCDD-S gets an annual allocation of $125,000 from RGC.23 (of the 32) subprojects for cycle 2018 is expected to start construction by Q1 2020The allocation formula for the D/M Fund was revised to increase its size and improve its structure, and was subsequently incorporated into the D/M Fund subdecree to provide full disclosure, including data sources and weight factors, to all districts and municipalities.Conditional grants have been designed to support the rural water supply projects of subnational administrations and, based on service delivery standards, are being implemented through the SNIF.The MEF, through the General Departments of Procurement, Treasury and SNAF, conducted training for municipal and district officers on all relevant implementing regulations of the Subnational Finance Law and financial management procedures (Female officer represented 18% of trainees).Under a government subdecree, four ministries have completed their proposals for the reassignment of functions to Districts and Municipalities (rural development, education, environment and socialaffairs) and an additional two have completed their mapping functions (Health and Agriculture).The government has begun the decentralization of solid waste management and has started the pilot decentralization of Rural Water Supply service. Pilot in Battambang have also been implemented.Subdecree on strategy for functional assignments to subnational administrations approved.

B. PROJECT OUTPUT

SNIF was established in 2016 under a sub-decree. To date, under cycle 1, construction of the 22 subprojects for road rehabilitation in 22 districts across 5 provinces were completed by December 2020 with projects with a total value of $1.2 million. The districts that were not successful in the first cycle of projects are supported to resubmit in the next cycle with civil works expected to commence in Q3 2021.

During the project's midterm review mission concluded in October 2020, SNIF-S confirmed they would continue to be responsible for procurement for the overall project. The subprojects for each package will be consolidated and will be procured using national competitive bidding following the outlined procedures as updated in the Standard Operating Procedures for Implementing All Externally Financed Projects/Programs dated 2 December 2019 (as amended from time to time). This approach would be more efficient for overall contract management during project implementation for civil works and would help avoid delays incurred from monitoring the capacity of the districts to adhere to procurement guidelines and processes. Districts would therefore focus their efforts on the development of their investment project proposals (IPPs) and on monitoring and implementation of their infrastructure projects on the ground. For further efficiency gains, additional staffing is proposed across safeguards and procurement for implementation and oversight. The SNIF revised operations manual was also completed in October 2020 and training for 50 eligible districts for development of their IPPs was held at key locations across the country on 5-8 Feb 2021.

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 Thomas, Jhelum Tini
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
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 30 Mar 2021

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 30 Jun 2024 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 30.70 Cumulative Contract Awards
ADB 20.00 15 May 2023 13.52 0.00 70%
Counterpart 10.70 Cumulative Disbursements
Cofinancing 0.00 15 May 2023 8.22 0.00 42%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Partly satisfactory Unsatisfactory - Unsatisfactory

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 15 May 2023 14.38 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 15 May 2023 14.38 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Partly satisfactory Unsatisfactory - Unsatisfactory

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.

Title Document Type Document Date
Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2): Sub-National Investment Fund (SNIF) Safeguards Monitoring Report (July-December 2022) Environmental and Social Monitoring Reports Jan 2023
Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2): Sub-National Investment Fund (SNIF) Environmental Safeguards Screening Report (October 2022) Environmental Monitoring Reports Oct 2022
Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2): Sub-National Investment Fund (SNIF) Safeguards Monitoring Report (January-June 2022) Environmental and Social Monitoring Reports Jul 2022
Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2): Sub-National Investment Fund (SNIF) Safeguards Monitoring Report (July-December 2021) Environmental and Social Monitoring Reports Jan 2022
Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2): Sub-National Investment Fund (SNIF) Package 3 Social Safeguards Due Diligence Report Safeguards Due Diligence Reports Dec 2021
Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2): Sub-National Investment Fund (SNIF) Environmental Safeguards Screening Report Environmental Monitoring Reports Dec 2021
Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2): Sub-National Investment Fund (SNIF) Package 4 Social Safeguards Due Diligence Report Safeguards Due Diligence Reports Dec 2021
Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2): Sub-National Investment Fund (SNIF) Environmental Safeguards Screening Report Environmental Monitoring Reports Oct 2021
Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2): Sub-National Investment Fund (SNIF) Safeguards Monitoring Report (January-June 2021) Environmental and Social Monitoring Reports Jul 2021
Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2): Sub-National Investment Fund (SNIF) Safeguards Monitoring Report (July-December 2020) Environmental and Social Monitoring Reports Jan 2021
Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2): Sub-National Investment Fund (SNIF) Due Diligence Report on Social Safeguards Safeguards Due Diligence Reports Oct 2020
Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2): Sub-National Investment Fund (SNIF) Safeguards Monitoring Report (January-June 2020) Environmental and Social Monitoring Reports Jul 2020
Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2): Sub-National Investment Fund (SNIF) Due Diligence Report on Social Safeguard Safeguards Due Diligence Reports Jul 2019
Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2): Environmental Assessment and Review Framework Environmental Assessment and Review Framework Mar 2016

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
ADB Loan 3414-CAM: Decentralized Public Service and Financial Management Sector Development Program, Subprogram 2 [MEF/SNIF/Works/P3] Invitation for Bids Closed
ADB Loan 3414-CAM Decentralized Public Service and Financial Management Sector Development Program, Subprogram 2 (P4) Invitation for Bids Closed
Finance Specialist Individual - Consulting Closed
Safeguards Specialist Individual - Consulting Closed
National Procurement Specialist Individual - Consulting Closed
National Project Management Specialist Individual - Consulting Closed
Junior Infrastructure Engineer Individual - Consulting Closed
National Junior Infrastructure Engineer 5 Individual - Consulting Closed
National Project Management Specialist Individual - Consulting Closed
National Environmental Safeguards Expert Individual - Consulting Closed
National Junior Infrastructure Engineer 4 Individual - Consulting Closed
National Gender Expert Individual - Consulting Closed
National Junior Infrastructure Engineer 1 Individual - Consulting Closed
National Junior Infrastructure Engineer 2 Individual - Consulting Closed
National Junior Infrastructure Engineer 3 Individual - Consulting Closed
Procurement Specialist Individual - Consulting Closed
International Project Manager Individual - Consulting Closed
Procurement Specialist (Civil Works) Individual - Consulting Closed
Procurement Specialist (Civil Works) Individual - Consulting Closed
Safeguard Specialist Individual - Consulting Closed
Finance Specialist Individual - Consulting Closed
Infrastructure Specialist Individual - Consulting Closed
Procurement Specialist (Goods and Services) Individual - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Upgrading of roads and installation of solar light poles in Banteay Mean Chey, Preha Vihear and Otdar Meanchay (Works/P3 Lot 1) Loan 3414 31 Aug 2022 C.NO Construction and Investment Co., Ltd. | #19A Eo, Street 118, Sangkat Phsar Depo III, Khan Toulkok, Phnom Penh Sub National Investment Fund 1,183,509.14 1,183,509.14
Upgrading of roads at Prey Veng and Kandal Loan 3414 31 Aug 2022 Peng Sour Construction Co., Ltd. | #450, Hanoi Blvd, Sangkat Sen Sok, Khan Khmunh, Phnom Penh Sub National Investment Fund 1,229,521.37 1,229,521.37
Upgrading of roads at Kampot and Takeo Loan 3414 31 Aug 2022 Peng Sour Construction Co., Ltd. | #450, Hanoi Blvd, Sangkat Sen Sok, Khan Khmunh, Phnom Penh Sub National Investment Fund 1,265,413.16 1,265,413.16
Upgrading of roads at Kampong Chhnang Loan 3414 31 Aug 2022 C.NO Construction and Investment Co., Ltd. | #19A, St. 118, Sangkat Phsar Depo III, Khan Toulkok, Phnom Penh Sub National Investment Fund 1,273,375.40 1,273,375.40

Procurement Plan