Cambodia : Inclusive Financial Sector Development Program, Subprogram 1
Based on successful implementation of the past and ongoing ADB Financial Sector Programs (FSP I, II, and III),_with effective and flexible ways of converting complex policy objectives into implementable policy actions, the government requested continuing ADB support to the finance sector through a policy-based loan. 2 The proposed programmatic approach for a total of $30 million equivalent from the Asian Development Fund (ADF), which will comprise two subprograms, is included in the country operations business plan (COBP), 2013-2015. It will be designed within the framework of the Financial Sector Development Strategy (FSDS), 20112-020 updated under the FSP III.
Project Details
-
Project Officer
Ainabe, Benita
Southeast Asia Department
Request for information -
Country/Economy
Cambodia -
Modality
-
Sector
- Finance
| Project Name | Inclusive Financial Sector Development Program, Subprogram 1 | ||||||||||||
| Project Number | 44263-013 | ||||||||||||
| Country / Economy | Cambodia |
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| Project Status | Active | ||||||||||||
| Project Type / Modality of Assistance | Loan Technical Assistance |
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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 Private sector development |
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| Sector / Subsector | Finance / Finance sector development |
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| Gender Equity and Mainstreaming | Some gender elements | ||||||||||||
| Description | Based on successful implementation of the past and ongoing ADB Financial Sector Programs (FSP I, II, and III),_with effective and flexible ways of converting complex policy objectives into implementable policy actions, the government requested continuing ADB support to the finance sector through a policy-based loan. 2 The proposed programmatic approach for a total of $30 million equivalent from the Asian Development Fund (ADF), which will comprise two subprograms, is included in the country operations business plan (COBP), 2013-2015. It will be designed within the framework of the Financial Sector Development Strategy (FSDS), 20112-020 updated under the FSP III. |
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| Project Rationale and Linkage to Country/Regional Strategy | As the financial sector expands its scope and moves toward a sound market-oriented system, the proposed program will build on the established relationship with government counterparts and ensure the momentum will not be lost on reforms completed under the FSP I, II, and III. A total of $30 million equivalent from ADB's Special Funds resources is programmed for the Fourth Financial Sector Program (FSP IV). The size of the budget support program is based on (i) development financing needs for the sector as identified during country programming and strategy formulation, (ii) the importance the government attaches to the reform program, and (iii) the estimated costs of designing and implementing the medium-term reform program minus estimated financial support provided by other development partners. On the basis of ongoing dialogue with the government, as well as guidance received from ADB's Board of Directors and management during the previous programs, the FSP IV will increasingly focus on (i) improved access to finance, especially outreach in rural areas, with diversified financial services through microfinance and microinsurance; and (ii) improved transparency and governance in the financial sector, including anti-money-laundering and/ combatting the financing of terrorism (AML and CFT) measures and legal and information infrastructures. The FSP IV will also track progress on the development of nascent financial services, including capital markets, financial leasing with improved legal foundation and infrastructures, and emerging pension schemes such as contractual savings |
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| Impact | Improved access to finance for sustainability |
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| Project Outcome | |
|---|---|
| Description of Outcome | A growing, resilient, and efficient financial system with expanded coverage |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Enhanced financial sector stability through upgrading the supervisory capacities and emerging financial services Improved legal foundation and infrastructure through the measures to reduce transaction and information costs Improved governance and transparency through the promotion of AML and /CFT measures , alternative dispute resolution, and International Financial Reporting Standards |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Majority of consultants' contracts extended given COVID restrictions on air travel. |
| Geographical Location | Nation-wide |
| Safeguard Categories | |
|---|---|
| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | PPTA for Fourth Financial Sector Program has been approved in November 2013._Because of the delay of the implementation of on-going Third Financial Sector Program (extended to June 2014), the implmentation of PPTA for Fourth Financial Sector Program has been postponed accordingly._The Mission will initiate the recruiment of the consultaing firm during 2014 Q4. |
| During Project Implementation | As of 28 March 2019 - Pubic consultations conducted on draft e-Commerce Law |
| Business Opportunities | |
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| Consulting Services | As of 28 March 2019 - International e-Commerce Law expert recruited. As of 27 March 2020 The following expertise were recruited to assist the Implementing Agencies: A._Ministry of Economy and Finance (MEF) __ 1._International Microinsurance expert __ 2._International Financial Sector expert (Insurance Supervision) __ 3._International Policy expert (SME Credit Guarantees) __ 4._International_Financial Sector expert (Government Bonds) __ 5._International Trust Law B._Ministry of Commerce (MOC) __ 1._International e-Commerce Law expert __ 2._International Consumer Protection Legal expert __ 3._International e-Commercial Agent Law expert __ 4._National e-Commerce Training expert __ 5._National e-Commerce and Consumer Protection Law expert C._ National Bank of Cambodia (NBC) __ 1._Consulting firm - Integrating financial education in the Cambodian school curriculum __ 2._International Financial Technology expert __ 3._International Payment System expert (Infrastructure Development) D._ Rural Development Bank (RDB) __ 1._International Business Strategist (Agri-business) __ 2._International MIS expert (Digital Banking) __ 3._International Financial Literacy expert E._Securities and Exchange Commission of Cambodia (SECC) __ 1._National Project Coordinator __ 2._International Capital Market The recruitment of the following experts is ongoing: 1._International e-Commerce Training expert (MOC) 2._International Regulatory expert (Marketplace Lending Platform) (NBC) 3._National Financial Literacy expert (RDB) 4._International Financial Literacy expert for University and Professional Education |
| Responsible ADB Officer | Ainabe, Benita |
| Responsible ADB Department | Southeast Asia Department |
| Responsible ADB Division | Public Management, Financial Sector and Trade Division, SERD |
| Executing Agencies |
National Bank of Cambodia |
| Timetable | |
|---|---|
| Concept Clearance | 06 Nov 2013 |
| Fact Finding | 29 Mar 2016 to 06 Apr 2016 |
| MRM | 12 Aug 2016 |
| Approval | 17 Nov 2016 |
| Last Review Mission | - |
| Last PDS Update | 30 Mar 2021 |
Loan 3460-CAM
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 17 Nov 2016 | 14 Dec 2016 | 14 Feb 2017 | 30 Jun 2017 | - | 11 Apr 2017 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 40.00 | Cumulative Contract Awards | |||
| ADB | 40.00 | 05 Dec 2022 | 38.63 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 05 Dec 2022 | 38.63 | 0.00 | 100% |
TA 9232-CAM
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 17 Nov 2016 | 09 Mar 2017 | 09 Mar 2017 | 31 Dec 2019 | 31 Dec 2022 | - |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 1,045,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,045,000.00 | 05 Dec 2022 | 596,297.79 |
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.
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| Title | Document Type | Document Date |
|---|---|---|
| Loan Agreement (Special Operations) for Loan 3460-CAM: Inclusive Financial Sector Development Program - Subprogram 1 | Loan Agreement (Special Operations) | Dec 2016 |
| Inclusive Financial Sector Development Program, Subprogram 1: Project Data Sheet (Khmer Translation) | Translated PDS | Nov 2016 |
| Inclusive Financial Sector Development Program, Subprogram 1: Report and Recommendation of the President | Reports and Recommendations of the President | Oct 2016 |
| Fourth Financial Sector Program - Subprogram 1 | Concept Papers | Nov 2013 |
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.
None currently available.
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.
ADB Loan to Support Cambodia's Financial Sector, Boost Financial Inclusion
ADB has approved a $40 million loan and a $600,000 technical assistance grant to help strengthen Cambodia’s financial sector and promote financial inclusion within the country’s unbanked population.
Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| Capacity Development Technical Assistance | Technical Assistance 9232 | 10 Jun 2022 | Pricewaterhousecoopers Pvt. Ltd. (INDIA) in association with Pricewaterhousecoopers (CAMBODIA) | PricewaterhouseCoopers Private Limited, 8-2-624/A/1, 4th Floor, Road No.10, Banjara Hills, Hyderabad, Andhra Pradesh 500 034 India | National Bank of Cambodia | 440,000.00 | — |
| Capacity Development | Technical Assistance 9232 | 15 Nov 2019 | CUFA LTD (AUSTRALIA) | Suite 303, 275 Alfred Street North Sydne NSW 2060 Australia | National Bank of Cambodia | 234,000.00 | — |
Procurement Plan
None currently available.