Cambodia : Strengthening Capacity for Improved Implementation of Externally Funded Projects in Cambodia

Project Name

Strengthening Capacity for Improved Implementation of Externally Funded Projects in Cambodia

Project Number

50111-001

Country / Economy

• Cambodia

Project Status

Closed

Project Type / Modality of Assistance

• Technical Assistance

Source of Funding / Amount

TA 9315-CAM: Strengthening Capacity for Improved Implementation of Externally Funded Projects in Cambodia

Source	Amount
Japan Fund for Prosperous and Resilient Asia and the Pacific	US$ 1.40 million

Strategic Agendas

• Inclusive economic growth

Drivers of Change

• Governance and capacity development
• Knowledge solutions
• Partnerships

Sector / Subsector

• Public sector management / Public expenditure and fiscal management

Gender

No gender elements

Description

The National Strategic Development Strategy (NSDP) 2014-2018 focuses on the promotion of agriculture, physical infrastructure, private sector development, and human resources underpinned by a results-based monitoring and evaluation framework. ADB's Country Partnership and Strategy (CPS) 2014-2018 emphasizes three development pillars, namely strengthening of urban-rural linkages, human resource development and strengthening public management. To achieve these, it is imperative that investments are results-based and that projects deliver their intended outcomes. The proposed TA also supports the midterm review of ADB's Strategy 2020 in terms of delivering value for money/improving operational efficiencies and organizing to meet new challenges, particularly in light of greater empowerment to resident missions in portfolio management and project implementation. Previous TAs on enhancing project implementation and capacity building and country systems have started to build the capacity of executing and implementing agencies (EAs/IAs), in the areas of project administration, procurement and financial management, following Government's promulgation of the sub decree on Standard Operating Procedures (SOP) in 2012. The TAs provided support in operationalizing the sub decree and conducted training programs. However the outreach has been rather limited and performance has been uneven; aspects relating to utilizing knowledge of good implementation practices has also been limited and will need greater attention. The proposed TA therefore builds on results from the previous TA and at the same time seeks to enhance the project cycle.

Project Rationale and Linkage to Country/Regional Strategy

The demand for public investments in Cambodia has been increasing, in line with Cambodia's rapid economic growth which has averaged 7 percent per year during the past decade. Official Development Assistance (ODA) has played a large role, providing roughly half of the Royal Government of Cambodia's (RGC's) annual development budget. In 2016, ADB alone, as one of RGC's largest development partners, has ongoing commitments of over $1.1 billion, with an expected increase of roughly $150 million/year for the next 3 years. There is concern, however, that as development assistance is expanding the capacity to absorb the aid, is less than effective. Furthermore, knowledge and lessons learned from previous assistance have not been fully documented, disseminated and utilized in the preparation of new projects. This, along with poor upstream project preparation has in turn caused difficulties in starting up new projects and investments. The TA therefore addresses to enhance the project cycle, which combines knowledge and lessons learned with sound project preparation and readiness.

Impact

Effective and sustainable development using external resources promoted

Project Outcome

Description of Outcome

Implementation of externally financed projects improved

Progress Toward Outcome

TA extension to 30 April 2022 was approved on 30 April 2021.

Implementation Progress

Description of Project Outputs

Output 1: Mechanisms for project preparation, readiness and implementation improved

Output 2: Implementation capacity of the executing and implementing agencies strengthened and sustained

Output 3: Strategic and effective knowledge management improved

Status of Implementation Progress (Outputs, Activities, and Issues)

Major TA activities and consultants' inputs have been completed. The updated 2019 SOP, including the 3 manuals, were approved on 2 December 2019 (Sub-Decree No. 181 ANK.BK). Twenty -seven consultation workshops and awareness training sessions for all three manuals were conducted by International Consultants recruited under the TA and MEF's in-house consultants with 2,449 total participants. Training of trainers will be completed in April 2022 before TA closing. A final Report with capacity building recommendations was submitted to ADB and MEF. The capacity building program had been assessed by the TTT Ltd, a consulting firm, hired under the TA. The assessment found that (i) continuing weak capacity in managing projects is one of the key causes for delayed project implementation, (ii) there is a need to better target trainees for future capacity building programs, and (iii) the Economic and Finance Institute (EFI) is a key entity in the structure of short - and medium-term capacity building programs for civil servants, especially in the areas of preparing and implementing externally funded projects, however the capacity building should be supported to the institute to be capable to fulfil their functions. The capacity building of EFI will be supported in a separated fund source proposed by Government (MEF).

Geographical Location

Nation-wide

Summary of Environmental and Social Aspects

Environmental Aspects

Involuntary Resettlement

Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design

Japan International Cooperation Agency (JICA), World Bank (WB) and Ministry of Economy and Finance (MEF) were consulted during the project design.

During Project Implementation

The Ministry of Economy and Finance will be the executing agency. The ministry will (i) work closely with relevant line ministries to assess underlying issues regarding project readiness, preparation, and implementation; (ii) assess capacity building needs and develop the necessary training programs; (iii) work with a consulting firm, individual consultants and national training institutions to improve project implementation and portfolio performance; and (iv) ensure consistency with government training programs. The Cambodia Resident Mission will administer the TA and it is scheduled to be implemented until 30 April 2021.

Business Opportunities

Consulting Services

Consulting firm/national training institute and individual consultants will be recruited in June 2017.

Procurement

Procurement of goods (laptop computers, audiovisual projector, and office furniture) will be procured when the TA starts in June 2017.

Contact

Responsible ADB Officer

Sok, Sokunthea

Responsible ADB Department

Southeast Asia Department

Responsible ADB Division

Cambodia Resident Mission (CARM)

Executing Agencies

Ministry of Economy and Finance

Timetable

Concept Clearance

09 Feb 2017

Fact Finding

01 Feb 2017 to 02 Feb 2017

MRM

-

Approval

08 May 2017

Last Review Mission

-

Last PDS Update

23 Mar 2022

Funding

TA 9315-CAM