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

  • Cambodia
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
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Aug 18, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Royal Government of Cambodia
The holder of the loan, grant, or other investment.
  • 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, etc.
Investment Amount (USD)
$ 35.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jul 2, 2020

Disclosed by Bank Aug 18, 2016

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Project 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
  • Asian Development Bank (ADB)

Government US$ 10.7 million

Contact Information

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

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