11 Table 2: Financing Plan ($ million) Source Asian Development Bank Government of Finland Government of Cambodia Total Source: Asian Development Bank estimates.
G.
Foreign Exchange
Local Currency
4.0 2.8 0.1 6.9
11.0 1.9 0.5 13.4
Total Cost 15.0 4.7 0.6 20.3
% 74 23 3 100
Implementation Arrangements 1.
Project Management
39. The Ministry of Interior (MOI) will act as Executing Agency (Appendix 6).46 In the context of decentralization and deconcentration,47 MOI has been tasked with building the central and local institutions that will support the operation of the entire sub-national system of governance and implementing the related capacity-building effort. While the Project will be executed predominantly at the commune level and rely on the decentralized structures strengthened under the Seila program, at the central level MOI plays a leading role in decentralization. MOI's main functions will be setting overall project direction, resolving implementation problems, reviewing project progress and performance against milestones (with reporting every 6 months), ensuring flow of funds to the communes48 and timely and adequate counterpart funding by the Government, and carrying out certain procurement under outputs 1 and 3. 40. The Ministry of Economy and Finance (MEF) will assist MOI in the smooth transfer of funds from the central to the commune levels. MEF has already created a local finance department to provide assistance and monitor the performance of sub-national administrations in the management of local finances. The Project will assign a domestic consultant to strengthen its operations. MEF also led the task force that drafted guidelines, standard operating procedures, and detailed instructions for financial management and procurement under donor-assisted projects.49 These guidelines, procedures, and instructions are expected to be formally approved by the Government in 2005, and the Project will provide an opportunity to apply them on a limited basis. 41. CARD, through its secretary general, will head a project steering committee established to provide policy and strategy guidance.50 CARD will also communicate project outcomes to the Council of Ministers. The steering committee will meet at least twice a year. An international consultant will assist CARD intermittently.
46
MOI is the Executing Agency for the Commune Council Development Project. Royal Government of Cambodia. 2005. Strategic Framework for Decentralization and Deconcentration Reforms. Phnom Penh. 48 First- and second-generation imprest accounts will be opened at the central level for this purpose (see Disbursement Arrangements section below). 49 This reflects the commitment made by Cambodia to implement the "Declaration by the Royal Government of Cambodia and Development Partners on Harmonization and Alignment" (December 2004), and thereby improve the management of external assistance. 50 The project steering committee will include the Cambodia National Mekong Committee, the Ministry of Agriculture, Forestry, and Fisheries, MEF, MOE, MOI, the Ministry of Rural Development, and the Ministry of Women's Affairs. Other ministries can join upon request. 47
