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 Name | Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2) | ||||||||
| Project Number | 41392-023 | ||||||||
| Country | Cambodia |
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| Project Status | Active | ||||||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions |
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| Sector / Subsector | Public sector management / Decentralization - Public expenditure and fiscal management |
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| 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. |
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| 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. |
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| 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 | |
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| 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.
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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): 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.
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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
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2): Procurement Plan | Procurement Plans | Dec 2018 |