Cambodia: Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2)
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.
Thomas, Jhelum Tini
Southeast Asia Department
Request for information
- Public sector management
|Project Name||Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2)|
|Country / Economy||Cambodia
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|Sector / Subsector||
Public sector management / Decentralization - Public expenditure and fiscal management
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
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.|
|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).|
|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.
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 $1.2 million. The districts that were not successful in the first cycle of projects are supported to resubmit in the next cycle with civil works expected to commence in Q3 2021.
During the project's midterm review mission concluded in October 2020, SNIF-S confirmed they would continue to be responsible for procurement for the overall project. The subprojects for each package will be consolidated and will be procured using national competitive bidding following the outlined procedures as updated in the Standard Operating Procedures for Implementing All Externally Financed Projects/Programs dated 2 December 2019 (as amended from time to time). This approach would be more efficient for overall contract management during project implementation for civil works and would help avoid delays incurred from monitoring the capacity of the districts to adhere to procurement guidelines and processes. Districts would therefore focus their efforts on the development of their investment project proposals (IPPs) and on monitoring and implementation of their infrastructure projects on the ground. For further efficiency gains, additional staffing is proposed across safeguards and procurement for implementation and oversight. The SNIF revised operations manual was also completed in October 2020 and training for 50 eligible districts for development of their IPPs was held at key locations across the country on 5-8 Feb 2021.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The proposed Project loan (with multiple subprojects) will support small-scale infrastructure investments such as schools, health clinics, village roads and bridges, irrigation systems, markets, and water supply. Most subprojects will be in the cost range of US$ 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|
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 of Goods
|Responsible ADB Officer||Thomas, Jhelum Tini|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Public Management, Financial Sector and Trade Division, SERD|
National Committee for Sub-National Democratic Development Secretariat
Ministry of Interior Norodom Blvd,
Sangkat Tonle Bassac,Khan
Chamcar Mon, Phnom Penh
|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|
|Approval||Signing Date||Effectivity Date||Closing|
|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||17 Jun 2022||3.86||0.00||20%|
|Cofinancing||0.00||17 Jun 2022||3.81||0.00||20%|
|Status of Covenants|
|Approval||Signing Date||Effectivity Date||Closing|
|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||17 Jun 2022||14.38||0.00||100%|
|Cofinancing||0.00||17 Jun 2022||14.38||0.00||100%|
|Status of Covenants|
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.
Evaluation Documents See also: Independent Evaluation
None currently available.
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.
|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||18 Feb 2022||23 Mar 2022|
|ADB Loan 3414-CAM Decentralized Public Service and Financial Management Sector Development Program, Subprogram 2 (P4)||Invitation for Bids||Closed||03 Feb 2022||04 Mar 2022|
|Safeguards Specialist||Individual - Consulting||Closed||15 Jul 2021||21 Jul 2021|
|National Project Management Specialist||Individual - Consulting||Closed||15 Jul 2021||21 Jul 2021|
|Finance Specialist||Individual - Consulting||Closed||15 Jul 2021||21 Jul 2021|
|National Procurement Specialist||Individual - Consulting||Closed||15 Jul 2021||21 Jul 2021|
|Junior Infrastructure Engineer||Individual - Consulting||Closed||15 Jul 2021||21 Jul 2021|
|National Junior Infrastructure Engineer 4||Individual - Consulting||Closed||26 Mar 2020||10 Apr 2020|
|National Environmental Safeguards Expert||Individual - Consulting||Closed||26 Mar 2020||10 Apr 2020|
|National Junior Infrastructure Engineer 2||Individual - Consulting||Closed||26 Mar 2020||10 Apr 2020|
|National Junior Infrastructure Engineer 1||Individual - Consulting||Closed||26 Mar 2020||10 Apr 2020|
|National Project Management Specialist||Individual - Consulting||Closed||26 Mar 2020||10 Apr 2020|
|National Junior Infrastructure Engineer 5||Individual - Consulting||Closed||26 Mar 2020||10 Apr 2020|
|National Gender Expert||Individual - Consulting||Closed||26 Mar 2020||10 Apr 2020|
|National Junior Infrastructure Engineer 3||Individual - Consulting||Closed||26 Mar 2020||10 Apr 2020|
|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|
|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|
|Finance Specialist||Individual - Consulting||Closed||29 May 2018||04 Jun 2018|
|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|
|Title||Document Type||Document Date|
|Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2): Procurement Plan||Procurement Plans||Jul 2022|