Cambodia: Strengthening Public Financial Management Program, Subprogram 1
The Asian Development Bank is working with Cambodia to improve public services with a focus on the poor and vulnerable groups. The project is strengthening oversight of public expenditures with a focus on public debt management, program budgeting, financial management, and internal audits.
Project Details
-
Project Officer
Ouch, Chamroen
Southeast Asia Department
Request for information -
Country/Economy
Cambodia -
Modality
- Loan
-
Sector
- Public sector management
Related Projects
Project Name | Strengthening Public Financial Management Program, Subprogram 1 | ||||||||
Project Number | 49041-002 | ||||||||
Country / Economy | Cambodia |
||||||||
Project Status | Closed | ||||||||
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 Knowledge solutions Private sector development |
||||||||
Sector / Subsector | Public sector management / Public expenditure and fiscal management |
||||||||
Gender Equity and Mainstreaming | Some gender elements | ||||||||
Description | The programmatic approach seeks to increase the availability and efficiency of public services in Cambodia, including services for poor and vulnerable groups, by strengthening public expenditure and revenue management. In support of stage 3 of the government's four-stage Public Financial Management Reform Program (PFMRP), the proposed program will finance actions and initiatives to strengthen (i) the policy and regulatory framework for expenditure and revenue management, (ii) the procedures and capacities of select line ministries to implement budgeting and expenditure management reforms, and (iii) the capacity of the external audit function. The proposed program is included in the country operations business plan, 2016 2018 for Cambodia of the Asian Development Bank (ADB). | ||||||||
Project Rationale and Linkage to Country/Regional Strategy | The government's Rectangular Strategy III, which sets out medium-term policies and priorities, identifies governance, including PFM, as a binding constraint to improving the availability and quality of public services. The public expenditure and financial accountability framework and other assessments, including diagnostics prepared for this program, identify three continuing weaknesses in the PFM system, which will be addressed under the program and are in line with objectives of stage 3 of the PFMRP. Other broader constraints include: low human capacities after decades of conflict, highly centralized public service delivery arrangements; and inadequate infrastructure. These are being addressed by other ADB interventions. | ||||||||
Impact | Effective and efficient public service delivery and inclusive growth (Public Financial Management Reform Program, 2005 -2025) |
Project Outcome | |
---|---|
Description of Outcome | The efficiency, effectiveness, and accountability of public expenditure and revenue management enhanced. |
Progress Toward Outcome | The government has commenced implementation of stage 3 (aiming to improve budget policy-linkages) of the PFMRP. |
Implementation Progress | |
Description of Project Outputs | Policy and regulatory framework for expenditure and revenue management strengthened. Capacity of selected line ministries to implement budgeting and expenditure management reforms improved. Capacity of the external audit function improved. |
Status of Implementation Progress (Outputs, Activities, and Issues) | Output 1: - An amendment to Law on State Budget System (2008) to institutionalize PFM reforms including a provision for the National Assembly to pass the annual budget in a program budgeting format (2018). According to the new budget reform system strategy 2018-2025, the proposed amendment is scheduled for consideration by the National Assembly by 2020. Work on the proposed amendment has started in the General Department of Budget (MEF) by reviewing reform options, including drafting of provisions on performance budgeting. The amendment is expected to address the respective roles of financial controllers, the General Department of National Treasury as public sector accountant, and procurement arrangements. Working groups, led by the Secretary General of the General Secretariat of PFM Reform Steering Committee, have been established to work on the proposed amendment. - Adoption of a government-wide medium-term expenditure framework (MTEF) (2017). The budget reform system strategy and discussions with MEF indicate that a medium-term fiscal framework (MTFF) and medium-term budget framework (MTBF) will be prepared instead of MTEF and that the combination of MTFF and MTBF is considered to be equivalent to MTEF. The MTFF aims to improve the quality and reliability of macro-economic forecasting to improve multi-year projections of revenues and expenditures; maintain aggregate fiscal discipline; and efficient use of resources by creating more stable and predictable budget allocations. It will also provide the basis for preparation of a MTBF for budget allocations with firm budget ceilings prepared by sector/line ministry level as indicated in the annual budget circular. A concept note of MTFF 2019-2021 has been finalized by the General Department of Policy (MEF). The General Department of Budget (MEF) has prepared a draft MTBF, including an integrated medium-term framework for capital and maintenance expenditure framework. It is anticipated that MTFF and MTBF will be prepared in early 2019 and operational for the 2020-2022 budgets. - Adoption of a comprehensive financial management manual for government budgeting, and used for budget preparation, execution, and financial and performance reporting (2019). The mission notes that preparation of a comprehensive financial management manual for budget management has commenced under the leadership of the General Secretariat of the PFM Reform Steering Committee. The mission was informed that a local consulting firm would be engaged, using government resources, to carry out gap analysis and to then draft the financial management manual in Khmer. The manual would provide the basis for line ministries to prepare customized financial manuals for use by each ministry.
- It is requited that FMIS implementation be fully operationalized in MEF and 25 provincial treasuries (stage 1), including with International Public Sector Accounting Standards (IPSAS)-cash based financial statements; and that implementation be started for expanding system functionality and coverage to line ministries (stage 2). Phase 1 of FMIS implementation is essentially completed with the General Department of National Treasury having fully implemented FMIS which is capable of producing IPSAS standard cash reports at central ministry level. Stage 2 of FMIS implementation with additional functionality started in 2017 in the first batch of 10 ministries. The mission noted that three of the initial batch target ministries (Ministry of Agriculture, Forestry and Fisheries; Ministry of Education, Youth and Sport; and the Ministry of Labour and Vocational Training) have implemented FMIS. Three other ministries: the Ministry of Rural Development; Ministry of Public Works and Transport and Ministry of Water Resources and Meteorology have been included in the second batch of target ministries that have started implementing FMIS in 2018 with support of the MEF IT Department .
- Adoption of a government-wide internal audit manual based on international standards, including policy on principles for internal control of information and communication technology (ICT). An internal audit manual was approved in December 2016. Guidelines, including policy on principles for ICT internal controls with focus on FMIS are available in a draft version. Output 2: - Budget strategic plans (BSPs) are annually updated, and poverty and gender issues included by at least the six line ministries. The BSPs provide three-year estimates that are annually updated and prepared by all government line ministries to include all sources of revenue and all planned expenditures. The BSPs are the main tool by which government can link budget to sector/ministry policy objectives that are consistent with the overall poverty reduction objectives, including consideration of gender equity measures, of the five-year National Strategic Development Plan 2014-2018. All six ministries are producing BSPs that include some coverage of poverty reduction objectives in their policy frameworks and inclusion of some funded activities on gender and poverty reduction. The terms of reference of the international public sector planning and budget specialist includes a comprehensive review of BSP formats and procedures for the six ministries in addition to further strengthening and comprehensive coverage of poverty and gender matters. The BSPs for 2019-2021 will be further reviewed in early 2019. - Program budgeting with integrated capital and recurrent budgets fully implemented and gender and poverty issues included by at least six line ministries. All six ministries are already producing program budgets (which are based on the BSPs) with some coverage of poverty in policy frameworks and objectives and, in most cases, some activities for poverty and gender specifically funded. There has been some integration of capital and recurrent budgets (mainly for the government funded budget only) in all six ministries, however further integration based on more detailed guidelines developed by MEF is required. - Customized financial management manuals for budget preparation, execution, and financial and performance reporting prepared in at least six line ministries. There are currently basic manuals in place based on consolidation of past MEF guidelines and instructions for the six ministries. These are not currently comprehensive in nature and in user friendly formats. The General Department of Budget (MEF) will lead the preparation of the customized financial management manuals in close coordination with the General Secretariat of PFM Reform Steering Committee working alongside with the PFM working groups in the six line ministries. - Annual financial and performance reports prepared and published by at least the six line ministries. All six ministries currently produce monthly, quarterly and annual financial reports and six-monthly and annual performance reports for MEF, based on program budget structures. Further work is needed to improve reporting formats and quality of reporting and publish the reports on websites of the ministries. - Performance audits and audits of the ICT environment included in internal audit plans and implemented in at least the six line ministries. Performance audit is important to improve performance accountability. However, that most internal audit departments have not undertaken major performance-based audits although three have undertaken preliminary ones. Audits of the ICT environment is also important as FMIS is being implemented across all government ministries. None of the six ministries, however, have yet undertaken any substantial work on ICT audits. Output 3: - Tangible results have included application of 2015 regulation to guide implementation of the audit law; and timeliness in the completion of annual audits. The guidelines on financial, compliance, and performance audits are being updated; and work on preparation of the audit manual for sub-national administrations is in progress. In addition, the NAA is conducting audit of 6 districts for 2018. The NAA would seek higher management consideration to post the NAA's strategic development plan 2017-2021; and the 2018 annual progress report and subsequent annual progress reports on the NAA's website. NAA has prepared the 2016 annual audit report on public financial management which includes the budget settlement report which is now published on the NAA's website in February 2018. |
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 | Nongovernment organizations (NGOs) such as the NGO Forum (which has the NGO coordinating role on budget transparency); Transparency International (Cambodia); and NGOs active in agriculture, education, rural development, and water utilization were consulted during project design on the inputs, appropriateness, and relevance of the proposed program. |
During Project Implementation |
Business Opportunities | |
---|---|
Consulting Services | The TA loan will provide for an estimated 6 international consultants for a total of 59 person months and 10 national consultants for 216 person months. Consultants will possess qualifications and expertise in public financial management, economics, finance, commerce, accountancy, financial management information systems, external audit, internal audit or other closely relevant fields. The consultants will be hired as individual consultants in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). |
Procurement | Not applicable |
Responsible ADB Officer | Ouch, Chamroen |
Responsible ADB Department | Southeast Asia Department |
Responsible ADB Division | Cambodia Resident Mission |
Executing Agencies |
Ministry of Economy and Finance Mr. Pen Thirong [email protected] Street 92, Sangkat Wat Phnom Khan Daun Penh, Phnom Penh City Cambodia |
Timetable | |
---|---|
Concept Clearance | 14 Jan 2016 |
Fact Finding | 25 Apr 2016 to 09 May 2016 |
MRM | 20 Jun 2016 |
Approval | 26 Sep 2016 |
Last Review Mission | - |
Last PDS Update | 02 Oct 2018 |
Loan 3428-CAM
Milestones | |||||
---|---|---|---|---|---|
Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
26 Sep 2016 | 06 Oct 2016 | 08 Dec 2016 | 30 Jun 2017 | - | 24 Apr 2017 |
Financing Plan | Loan Utilization | ||||
---|---|---|---|---|---|
Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 26.50 | Cumulative Contract Awards | |||
ADB | 26.50 | 17 Jun 2022 | 25.78 | 0.00 | 100% |
Counterpart | 0.00 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 17 Jun 2022 | 25.78 | 0.00 | 100% |
Status of Covenants | ||||||
---|---|---|---|---|---|---|
Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | - | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
Loan 3429-CAM
Milestones | |||||
---|---|---|---|---|---|
Approval | Signing Date | Effectivity Date | Closing | ||
Original | Revised | Actual | |||
26 Sep 2016 | 06 Oct 2016 | 25 Jan 2017 | 31 Mar 2020 | 30 Sep 2020 | 03 Mar 2021 |
Financing Plan | Loan Utilization | ||||
---|---|---|---|---|---|
Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
Project Cost | 4.30 | Cumulative Contract Awards | |||
ADB | 3.50 | 17 Jun 2022 | 0.96 | 0.00 | 100% |
Counterpart | 0.80 | Cumulative Disbursements | |||
Cofinancing | 0.00 | 17 Jun 2022 | 0.96 | 0.00 | 100% |
Status of Covenants | ||||||
---|---|---|---|---|---|---|
Category | Sector | Safeguards | Social | Financial | Economic | Others |
Rating | - | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
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.
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.
-
Cambodia Gets Funding to Improve Public Financial Management Systems
ADB is expanding its support for better public financial management in Cambodia through a $30 million loan to support effective and efficient public service delivery and inclusive growth.
Tenders
Tender Title | Type | Status | Posting Date | Deadline |
---|---|---|---|---|
National Public Sector Planning and Budget Specialist | Individual - Consulting | Closed | 19 Apr 2019 | 25 Apr 2019 |
International Public Sector Finance and Accounting Specialist | Individual - Consulting | Closed | 21 Nov 2018 | 27 Nov 2018 |
National Internal Audit Specialist | Individual - Consulting | Closed | 27 Sep 2018 | 03 Oct 2018 |
International Public Sector Planning and Budget Specialist and Team Leader | Individual - Consulting | Closed | 16 Aug 2018 | 22 Aug 2018 |
International Internal Audit Specialist | Individual - Consulting | Closed | 08 Jun 2018 | 14 Jun 2018 |
International FMIS Business Process | Individual - Consulting | Closed | 30 Nov 2017 | 06 Dec 2017 |
Contracts Awarded
Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
---|---|---|---|---|---|---|
INTERNATIONAL PUBLIC SECTOR PLANNING AND BUDGET SPECIALIST/TEAM LEADER | Loan 3429 | 22 Jul 2019 | JONATHAN GLADSTONE DUNN | NEW ZEALAND NEW ZEALAND | Ministry of Economy and Finance | 170,080.00 | 170,080.00 |
INTERNATIONAL PUBLIC SECTOR FINANCE AND ACCOUNTING SPECIALIST AT GDNT, MEF. | Loan 3429 | 31 May 2019 | DAVID LEON EDGERTON | AUSTRALIA, QLD AUSTRALIA | Ministry of Economy and Finance | 108,220.00 | 108,220.00 |
INTERNATIONAL INTERNAL AUDIT SPECIALIST, MR. NIHAL E. FERNANDOPULLE. | Loan 3429 | 14 Jan 2019 | NIHAL ELMO FERNANDOPULLE | MALVERN EAST, VICTORIA 3145 AUSTRALIA | Ministry of Economy and Finance | 179,350.00 | 179,350.00 |
INTERNATIONAL FMIS SPECIALIST | Loan 3429 | 16 Nov 2018 | BRUCE POLLOCK | CHIFLEY, ACT2606 AUSTRALIA | Ministry of Economy and Finance | 239,850.00 | 239,850.00 |
Procurement Plan
Title | Document Type | Document Date |
---|---|---|
Strengthening Public Financial Management Program, Subprogram 1: Procurement Plan | Procurement Plans | May 2017 |