Decentralized Public Service and Financial Management Sector Development Program (Subprogram 2) (ADB-41392-023)

  • Cambodia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Aug 18, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Royal Government of Cambodia
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 35.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 45.70 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jul 2, 2020

Disclosed by Bank Aug 18, 2016

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

In 2012, the ADB Board granted approval of the Decentralized Public Service and Financial Management (DPSFM) Sector Development Program, including a project loan for $13.5 million and a $24 million policy-based loan for subprogram 1 of the programmatic approach. The DPSFM aims to assist improved access to and coverage of basic public services. This will be achieved through an efficient system of intergovernmental fiscal relations.

The DPSFM is structured along a series of policy actions in seven major reform areas:

a. Development and regular update of a gender-sensitive policy and regulatory framework for decentralization.

b. Establishment of institutions for efficient coordination of sub-national democratic development policies.

c. Definition of clear service delivery responsibilities of Sub-national Administrations (SNAs).

d. Assignment of efficient tax and non-tax revenue sources to SNAs.

e. Implementation of fiscal transfers that ensure comparable levels of service delivery across SNAs.

f. Development of capacities for efficient decentralized public financial management.

g. Design and implementation of accountability mechanisms for SNAs to their constituencies.

Submission to the ADB Board of the second subprogram of the Decentralized Public Service and Financial Management reform subprogram 2 (Loan 2886) is expected in September 2015. The second subprogram, for a total amound of $35 million will equally include a policy-based loan and a project loan. The project loan component will aim to assist the establishment of the Sub-national Investment Fund, a grant mechanism for local infrastructure projects.

A recent mid-term review mission concluded that good reform progress has been achieved. Looking forward, further progress on functional decentralization, on expanding local revenue bases (with the assignment of tax-powers for Sub-national Administrations in particular) and overall capacity development of sub-national administrations (including the implementation of social accountability mechanisms) rank as the top reform priorities.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Government US$ 10.7 million

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

National Committee for Democratic Development at Subnational Level
Ministry of Interior Norodom Blvd,Sangkat Tonle Bassac,Khan
Chamcar Mon, Phnom Penh

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at:

How it works

How it works