ADB Approves US$40 Million Loan for Key Reforms in Service Delivery in Cambodia

date_range 26-Jul-2023
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Phnom Penh, July 26, 2023 --

The Asian Development Bank (ADB) has approved a US$40 million policy-based loan to support the Government of Cambodia’s efforts to further enhance public service delivery by local administrations through a series of reforms in public finance and decentralisation.

According to an ADB’s press release this morning, this second and last subprogramme loan under the Second Decentralised Public Service and Financial Management Sector Development Programme completes a series of reforms to strengthen the role and capacity of local administrations to effectively deliver public services. Reforms under the second subprogramme are designed to strengthen planning and budgeting, revenue and expenditure management, and the capacities of staff at the local administration level to deliver improved services, bolster local government planning, and improve people’s access to public services.

“Reforms and digital solutions implemented under the programme will help align local plans with national and provincial budgets for a more effective and equitable delivery of basic public services like access to water, sanitation, and education,” said ADB Country Director for Cambodia Jyotsana Varma. “Measures undertaken under the programme will also boost women’s participation in local decision-making.”

This programme builds on ADB’s long standing support for decentralisation reforms in Cambodia, including the development of a policy and regulatory framework for decentralisation as well as support to strengthen revenues and their management at the subnational level. ADB has helped establish one-window service offices for more responsive service delivery, as well as ombudsperson offices to monitor the improved breadth, depth, and quality of services delivered.

The second subprogramme focuses on strengthening coordination for responsive and accountable service delivery and enhancing revenue and expenditure management to meet needs at the local government level. It further deepens reforms approved under the first subprogramme, which aims to develop public administration skills and competencies for local administration officials by operationalising the National School of Local Administration.

ADB has been a partner of Cambodia in supporting reforms in public finance management and decentralisation since 2002, with an emphasis on pursuing policies to deepen both administrative and fiscal decentralisation measures for improved service delivery, local economic development, and poverty reduction. This new programme loan is in line with ADB’s country partnership strategy for Cambodia for 2019–2023.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.