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

MANILA — The Asian Development Bank (ADB) has approved a $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 decentralization.

This second and last subprogram loan under the Second Decentralized Public Service and Financial Management Sector Development Program completes a series of reforms to strengthen the role and capacity of local administrations to effectively deliver public services. Reforms under the second subprogram 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 program 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 program will also boost women’s participation in local decision-making.”

This program builds on ADB’s long standing support for decentralization reforms in Cambodia, including the development of a policy and regulatory framework for decentralization 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 subprogram 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 subprogram, which aims to develop public administration skills and competencies for local administration officials by operationalizing the National School of Local Administration.

ADB has been a partner of Cambodia in supporting reforms in public finance management and decentralization since 2002, with an emphasis on pursuing policies to deepen both administrative and fiscal decentralization measures for improved service delivery, local economic development, and poverty reduction. This new program 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.