| TA Name |
Implementation of Financial Sector Subprogram 4 Triggers |
| Country |
Cambodia |
| Project Number |
34389-
04 |
| Fund Source/Amount[Proposed] |
| Japan Special Fund |
US$750,000
|
| Gov't. of Luxembourg |
US$500,000
|
|
| Thematic Classification |
Economic growth
|
| Linkage to Country/Regional Strategy |
The development framework for Cambodia's financial sector is based on the 2001-2010 Financial Sector Blueprint that was updated as the Financial Sector Development Strategy 2006-2015 and adopted by the Government in February 2007.Implementation of the Blueprint since 2001, has yielded some notable achievements as well as lessons to be learned (from international and domestic experience). Those experiences coupled with the new challenges to the financial sector, prompted the Government to request continuing ADB support to the sector to ensure the durability of its reform program. This led to the design and approval of the second financial sector cluster program (FSP II) in 2007. FSP II comprises a series of four single-tranched subprograms to be implemented from September 2006-December 2010. Subprograms are linked by policy triggers and milestones. A program of TAs was also programmed to help implement subprogram triggers and milestones. In preparation for subprogram 4, the proposed TA will help the executing agency (NBC) and the implementing agencies - Ministry of Economy and Finance and Ministry of Commerce implement the associated triggers and milestones.
|
| Impact |
The overall goal of FSP II is to promote the development of a sound, market-oriented financial system to enhance resource mibilization and support sustainable economic growth. The proposed TA will contribute towards achieving that goal.
|
| Outcome |
The expected outcome for FSP II and the proposed TA is a growing, resilient, and efficient financial system.
|
| Outputs and Timeframe |
The proposed TA is to help the EA and IAs implement key reforms in the financial sector. These will cover the reform triggers and expected milestones for subprogram 4 with a focus on (i) upgrading prudential regulations and surveillance of the banking, and (ii) MFIs in view of the effects of the global economic downturn on Cambodia's economy, (iii) complete the installation of the integrated accounting system for NBC, (iv) continue with the upgrade of the national payment, clearance, and settlement system, (v) complete the establishment of the national arbitration center, (vi) help the adoption of the draft commercial contracts law by the CoM and NA, and (vii) establish a credit information bureau.
|
| Geographical Location |
National |
| Summary of Environmental and Social Issues |
Not applicable
|
| Stakeholder Participation and Consultation |
During Fact-finding Mission and TA preparation
|
| Procurement |
| Consulting Services |
ADB, in coordination with the Government, will engage consultants on an individual basis in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). The CDTA international consultants will provide expertise in the following: (i) on-site supervision of banks and training (4 person months), (ii) supervision of MFIs (4 person-months), (iii) insurance regulations and supervision (4 person-months), (iv) information technology sytem (3 person-months), (v) commercila dispute resolution (3 person-months), (vi) commercial contract law (2 person-months), (vii) payments, clearance, and settlement system (10 person-months), and (viii) credit information system (3 person-months). One national consultant will be engaged, an IT expert (15 person-months), to assist the international credit information and the integrated accounting IT experts.
|
| Responsible ADB Officer |
Samiuela T. Tukuafu
|
| Responsible ADB Department |
Southeast Asia Department
|
| Responsible ADB Division |
Financial Sector, Public Management and Trade Division, SERD
|
| Concept Clearance |
16 Mar 2009 |
| Fact-finding |
22 Apr 2009
to 28 Apr 2009
|
| Approval |
26 Nov 2009 |
|
|
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