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 $35 million will equally include a policy-based loan and a project loan. The project loan component will aim to assist the establishment of the Sub-national Investment Fund, a grant mechanism for local infrastructure projects.
A recent mid-term review mission concluded that good reform progress has been achieved. Looking forward, further progress on functional decentralization, on expanding local revenue bases (with the assignment of tax-powers for Sub-national Administrations in particular) and overall capacity development of sub-national administrations (including the implementation of social accountability mechanisms) rank as the top reform priorities.
Government US$ 10.7 million
National Committee for Democratic Development at Subnational Level
Ministry of Interior Norodom Blvd,Sangkat Tonle Bassac,Khan
Chamcar Mon, Phnom Penh
ACCOUNTABILITY MECHANISM OF ADB
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: http://www.adb.org/site/accountability-mechanism/main