|
5.
FINANCIAL REQUIREMENTS AND ODA MOBILIZATION TARGETS
385. The
alleviation of poverty among Cambodia’s population through economic progress
and social development is the highest priority of the Royal Government. The
Rectangular Strategy of the Royal Government of the Third Legislature
of the National assembly is aimed at promoting economic growth, generate
employment for Cambodian workers, ensure equity and social justice, and
enhance efficiency of the public sector through the implementation of the
Governance Action Plan and in-depth reforms that are coordinated and
consistent across all levels and sectors. The Rectangular Strategy selects
key elements from Cambodia's Millennium Development Goals, Cambodia's
Socio-Economic Development Plan 2001-2005 (SEDP2), Cambodia’s National
Poverty Reduction Strategy 2003-2005 (NPRS), and various policies,
strategies, plans and other important reform programs. The implementation of
these strategies and policies will be achieved through a focused and
prioritized Public Investment Program (PIP) which is one important
instrument to implement these strategies and policies. The PIP is designed
within the framework of a three‑year rolling plan to capture priority
proposals and needs on an on-going basis. The programs and projects that
constitute our public investment program will be financed both from the
National Budget and with the assistance of our external development
partners. The PIP is comprised of the Government’s priority programs that
are being implemented and/or are planned to be implemented in various
sectors and constitute the basic information for the allocation of national
budget resources as well as for the mobilization of assistance from our
external development partners.
386. The Royal Government is currently in the process of
strengthening its public debt management system. The outcome of the
negotiations on the rescheduling of loans with the governments of the
United States and Russia
that were delivered in the 1970s and 1980s is likely to increase the debt
service burden on the limited domestic revenues of
Cambodia.
To optimize the benefits of the ODA for the people of Cambodia and to
minimize the burden on future generations, the Royal Government encourages
its development partners to consider financing through grants the
development programs in the social sectors, including Education and Health,
as well as programs for human resources development, and information
technology. The Royal Government would like to limit the use of concessional
loans for development activities that will result in a quick economic and
financial return to service the related debt charges. The use of
non-concessional loans for financing development programs will be strongly
discouraged.
387. Over the years, our external development partners have
been generous in providing support to Cambodia’s public investment program.
At the 1996 CG meeting, pledges of US$501 million for the year 1996 were
made by bi-lateral and multi-lateral partners. At the 1997, 1999, 2000, and
2001 CG meetings, the bi-lateral and multi-lateral development partners had
pledged US $ 450 million, 471 million, 548 million, and 556 million
respectively. At the last CG meeting in 2002, the pledges amounted to US$
635 million.
TABLE 3: PLEDGES AND DISBURSEMENTS: 2001-2003
(in
US$ millions)
|
EXTERNAL
DEVELOPMENT PARTNER |
ACTUAL DISBURSEMENTS
|
|
|
2002
|
2003
|
▪
Bi-lateral donors, excluding EU
member countries
▪
EU countries and EC
|
168.0
100.6 |
182.3
111.6 |
181.2
126.3 |
|
▪
UN Agencies
- Total
programs delivered
- Own resources disbursed
▪
IFIs
|
90.8
44.9
114.7 |
81.8
42.2
149.2 |
83.9
41.8
149.3 |
Non Governmental Organizations (Core or own resources)
|
43.4
|
45.6
|
47.2
|
TOTAL DISBURSEMENTS1
|
471.8
|
530.9
|
545.8
|
TOTAL PLEDGES
|
610.7
|
635.02
|
....3
|
Disbursements as % of Pledges
|
77.3%
|
83.6%
|
....
|
1
Based on UN agencies
own resources only. “Total programs delivered” by UN agencies include their
own resources
as well as resources mobilized by them from various sources,
including bi-lateral donors, for their
in-country programs.
2
Does
not include the NGOs.
3
CG
Meeting was not held in 2003.
388. The Royal Government is pleased to
report that over the last three year, 2001-2003, disbursements have steadily
increased from just under US$ 472 million in 2001 to over US$ 545 million
last year (2003). At the same time, the amounts pledged by bi-lateral and
multi-lateral partners have also increased from around US$ 556 million in
2001 to US$ 635 million in 2003. The ratio of disbursements to pledges has
also increased over the years. In 2002, the ratio of disbursements to
pledges increased to 83.6 percent from 77.3 percent in 2001 – representing a
greater absorptive capacity within the Government. The RGC is gratified by
the support of its external development partners and hopes that they will
continue to provide their support to enable
Cambodia
to achieve its goal of reducing poverty among its people.
389. At the previous six CG Meetings for
Cambodia the Royal Government had worked hard to keep resource mobilization
targets for external assistance at around US$500 million per annum to cover
on-going and new projects. Because of the large number of high priority
needs identified by the ministries it has not been possible to contain the
mobilization target within this limit. The total cost of the Government’s
planned development programs, both on-going and new programs, over the next
three years (2005-2007) is estimated to be around US $ 1,937.6 million. The
Royal Government of Cambodia has committed from its own resources US $ 290.4
million for these development programs. After adjustments for estimated
Government contribution (US$ 290.4 million), and taking into consideration
the requirements for budget support (US$ 150 million), and balance of
payments support/stand-by-facility from IMF (US$ 66 million);
the
total requirements for external assistance over the next three years amount
to US$ 1,863.2 million that averages to US$ 621.1 million per annum.
Some of our external development partners have already committed to provide
US$ 1,062.6 million.
Thus a gap of US $ 800.6 million in the financing of these
development programs remains at the present time for which the RGC is
seeking additional support from its external development partners.
390. The distribution of
the priority planned development programs in the PIP for 2005-2007 by sector
is as follows (Table 4):
-
43.2 percent for social sectors;
-
11.6 percent for economic sectors;
-
31.8 percent for infrastructure; and
-
13.3 percent for cross sectoral programs.
391. Of the total costs of
planned development programs over the next three years, US$ 1,937.6 million:
-
73.5 percent is for capital investment and 26.5 percent
for technical assistance; and
-
on-going and committed programs/projects account for
76.9 percent of the total planned public investments, and high priority
pipeline programs/projects 23.1 percent.
392. Of the planned
expenditure on on-going and committed programs/projects over the next
three years (2005-2007):
393. The distribution of
the total planned expenditure on high priority pipeline programs/projects,
US $ 447.63 million, to be started over the next three years (2005-2007) in
terms of capital investment and technical assistance is 54.5 and 45.5
percent, respectively. A detailed summary of the information on the planned
programs by sector, type of program (capital investment/technical
assistance), and the nature of the program (on-going/new), as well as the
resource mobilization target in each of these sub-categories is presented in
Table 4 and 5. More detailed information in individual programs/projects
constituting the PIP for 2005-2007 is presented as Annex I.
TABLE 4
PLANNED DEVELOPMENT PROGRAMS
BY SECTOR: 2005-2007,
(Amounts in Millions of US$)
|
SECTOR |
Planned Development
Program Costs 2005-2007 |
Committed Resources |
Total Resource
Mobilization Targets |
|
Government |
External Partners |
|
US$ |
% |
US$ |
% |
US$ |
% |
US$ |
% |
|
Social Sectors |
|
|
|
|
|
|
|
|
|
·
Education |
176.52 |
9.1% |
9.53 |
3.3% |
151.88 |
15.2% |
15.10 |
2.3% |
|
·
Health |
660.64 |
34.1% |
239.26 |
82.4% |
147.29 |
14.8% |
274.08 |
42.1% |
|
Sub-total |
837.16 |
43.2% |
248.79 |
85.7% |
299.17 |
30.0% |
289.19 |
44.4% |
|
Economic Sectors |
|
|
|
|
|
|
|
|
|
·
Agriculture & Land Mgt. |
171.43 |
8.8% |
5.51 |
1.9% |
135.56 |
13.6% |
30.35 |
4.7% |
|
·
Manufacturing & Trade |
54.06 |
2.8% |
0 |
0.0% |
20.60 |
2.1% |
33.47 |
5.1% |
|
Sub-total |
225.49 |
11.6% |
5.51 |
1.9% |
156.16 |
15.7% |
63.82 |
9.8% |
|
Infrastructure |
|
|
|
|
|
|
|
|
|
·
Transportation |
223.11 |
11.5% |
1.41 |
0.5% |
115.71 |
11.6% |
105.98 |
16.3% |
|
·
Water & Sanitation |
213.40 |
11.0% |
18.52 |
6.4% |
165.41 |
16.6% |
29.46 |
4.5% |
|
·
Power & Electricity |
116.11 |
6.0% |
6.20 |
2.1% |
105.78 |
10.6% |
4.12 |
0.6% |
|
·
Telecommunications |
64.19 |
3.3% |
9.60 |
3.3% |
54.10 |
5.4% |
0.50 |
0.1% |
|
Sub-total |
616.81 |
31.
8% |
35.73 |
12.3% |
441.00 |
44.3% |
140.06 |
21.5% |
|
Other Cross Sectoral Programs |
|
|
|
|
|
|
|
|
|
·
Environment & Conservation |
68.50 |
3.5% |
0 |
0.0% |
18.74 |
1.9% |
49.76 |
7.6% |
|
·
Community & Social Services |
63.48 |
3.3% |
0 |
0.0% |
50.72 |
5.1% |
12.76 |
2.0% |
|
·
Culture & Arts |
7.85 |
0.4% |
0 |
0.0% |
0 |
0.0% |
7.85 |
1.2% |
|
·
Dev. Management & Gov. |
118.29 |
6.1% |
350 |
0.1% |
30.77 |
3.1% |
87.17 |
13.4% |
|
Sub-total |
258.12 |
13.3% |
350 |
0.1% |
100.23 |
10.1% |
157.54 |
24.
2% |
|
TOTAL: All Sectors |
1,937.59 |
100.0% |
290.39 |
100.0% |
996.57 |
100.0% |
650.62 |
100.0% |
|
TOTAL: On-going & Commit. Proj. |
1,489.96 |
100.0% |
276.92 |
100.0% |
880.67 |
100.0% |
332.35 |
100.0% |
|
·
Capital Investments |
1,179.54 |
79.2% |
221.09 |
79.8% |
704.42 |
80.0% |
254.02 |
76.4% |
|
·
Technical Assistance |
310.42 |
20.8% |
55.83 |
20.2% |
176.25 |
20.0% |
78.33 |
23.6% |
|
TOTAL: Pipeline Projects |
447.63 |
100.0% |
13.46 |
100.0% |
115.90 |
100.0% |
318.26 |
100.0% |
|
·
Capital Investments |
244.03 |
54.5% |
2.94 |
21.8% |
37.36 |
32.2% |
203.73 |
64.0% |
|
·
Technical Assistance |
203.60 |
45.5% |
10.52 |
78.2% |
78.54 |
67.8% |
114.53 |
36.0% |
|
TOTAL: All Sectors |
1,937.59 |
100.0% |
290.39 |
100.0% |
996.57 |
100.0% |
650.62 |
100.0% |
|
·
Capital Investments |
1,423.57 |
73.5% |
224.04 |
77.1% |
741.78 |
74.4% |
457.75 |
70.4% |
|
·
Technical Assistance |
514.02 |
26.5% |
66.35 |
22.9% |
254.79 |
25.6% |
192.87 |
29.6% |
TABLE 5
ON-GOING, COMMITTED AND PIPELINE PROGRAMS/PROJECTS BY SECTOR: 2005-2007
(in Millions of US$)
|
SECTOR |
Planned Development
Program Costs in |
Committed Resources |
ODA Resource
Mobilization Target |
|
2005 |
2006 |
2007 |
2005-2007 |
Govt. |
External Partners |
SOCIAL SECTORS
|
|
|
|
|
|
|
|
|
Education |
|
|
|
|
|
|
|
|
●
On-going & Committed Projects |
55.89 |
52.36 |
53.15 |
161.41 |
9.53 |
151.88 |
0 |
|
●
Pipeline Projects |
7.90 |
3.90 |
3.31 |
15.10 |
0 |
0 |
15.10 |
|
Total: Education |
63.79 |
56.26 |
56.46 |
176.51 |
9.53 |
151.88 |
15.10 |
|
Health |
|
|
|
|
|
|
|
|
●
On-going & Committed Projects |
196.68 |
212.95 |
248.05 |
657.69 |
238.80 |
147.29 |
271.60 |
|
●
Pipeline Projects |
0.73 |
1.16 |
1.06 |
2.95 |
0.46 |
0 |
2.48 |
|
Total:
Health |
197.41 |
214.11 |
249.11 |
660.64 |
239.26 |
147.29 |
274.08 |
|
TOTAL: |
|
|
|
|
|
|
|
|
●
On-going & Committed Projects |
252.58 |
265.32 |
301.20 |
819.11 |
248.33 |
299.17 |
271.60 |
|
●
Pipeline Projects |
8.62 |
5.05 |
4.37 |
18.05 |
0.46 |
0 |
17.59 |
|
Total: Social Sectors |
216.20 |
270.37 |
305.57 |
837.16 |
248.79 |
299.17 |
289.19 |
ECONOMIC SECTORS
Agri. & Land Management |
|
|
|
|
|
|
|
|
●
On-going & Committed Projects |
54.78 |
41.75 |
37.10 |
133.64 |
5.05 |
128.00 |
0.59 |
|
●
Pipeline Projects |
12.64 |
11.86 |
13.29 |
37.79 |
0.45 |
7.56 |
29.76 |
|
Total Agri. & Land Mgt. |
67.42 |
53.61 |
50.39 |
171.43 |
5.50 |
135.56 |
30.35 |
|
Manufacturing & Trade |
|
|
|
|
|
|
|
|
●
On-going & Committed Projects |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
●
Pipeline Projects |
16.28 |
20.77 |
17.01 |
54.06 |
0 |
20.60 |
33.46 |
|
Total:
Manufactur. & Trade |
16.28 |
20.77 |
17.01 |
54.06 |
0 |
20.60 |
33.46 |
|
TOTAL: |
|
|
|
|
|
|
|
|
●
On-going & Committed Projects |
54.78 |
41.75 |
37.10 |
133.64 |
5.05 |
128.00 |
0.59 |
|
●
Pipeline Projects |
28.93 |
32.63 |
30.30 |
91.85 |
0.45 |
28.16 |
63.23 |
|
Total: Economic
Sectors |
83.71 |
74.38 |
67.40 |
225.49 |
5.50 |
156.16 |
63.82 |
INFRASTRUCTURE
|
|
|
|
|
|
|
|
|
Transportation |
|
|
|
|
|
|
|
|
●
On-going & Committed Projects |
48.50 |
64.28 |
15.84 |
128.64 |
1.41 |
115.71 |
11.50 |
|
●
Pipeline Projects |
36.10 |
43.38 |
15.00 |
94.48 |
0 |
0 |
94.48 |
|
Total: Transportation |
84.60 |
107.66 |
30.84 |
223.11 |
1.41 |
115.71 |
105.98 |
|
Water & Sanitation |
|
|
|
|
|
|
|
|
●
On-going & Committed Projects |
53.84 |
57.89 |
38.00 |
149.73 |
15.58 |
134.15 |
0 |
|
●
Pipeline Projects |
15.32 |
25.34 |
23.00 |
63.66 |
2.94 |
31.26 |
29.46 |
|
Total: Water
& Sanitation |
69.16 |
83.23 |
61.00 |
213.39 |
18.52 |
165.41 |
29.46 |
|
Power & Electricity |
|
|
|
|
|
|
|
|
●
On-going & Committed Projects |
13.21 |
47.37 |
51.40 |
111.98 |
6.20 |
105.78 |
0 |
|
●
Pipeline Projects |
3.92 |
0 |
0.20 |
4.12 |
0 |
0 |
4.12 |
|
Total: Power and
Electricity |
17.13 |
47.37 |
51.60 |
116.10 |
6.20 |
105.78 |
4.12 |
Telecommunications
|
|
|
|
|
|
|
|
|
●
On-going & Committed Projects |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
●
Pipeline Projects |
4.42 |
33.02 |
26.75 |
64.19 |
9.60 |
54.10 |
0.49 |
|
Total: Telecom. |
4.42 |
33.02 |
26.75 |
64.19 |
9.60 |
54.10 |
0.49 |
|
TOTAL: |
|
|
|
|
|
|
|
|
●
On-going & Committed Projects |
115.55 |
169.55 |
105.24 |
390.35 |
23.19 |
355.64 |
11.50 |
|
●
Pipeline Projects |
59.77 |
101.74 |
64.95 |
226.46 |
12.54 |
85.36 |
128.56 |
|
Total:
Infrastructure |
175.32 |
271.29 |
170.19 |
616.81 |
35.73 |
441.00 |
140.06 |
TABLE 5 (continued)
ON-GOING, COMMITTED AND PIPELINE PROGRAMS/PROJECTS BY SECTOR: 2005-2007
(in Millions of US$)
|
SECTOR |
Planned Development
Program Costs in |
Committed Resources |
ODA Resource
Mobilization Target |
|
2005 |
2006 |
2007 |
2005-2007 |
Govt. |
External Partners |
|
OTHER CROSS SECTORAL PROGRAMS |
|
|
|
|
|
|
|
|
Environment and Conservation |
|
|
|
|
|
|
|
|
●
On-going & Committed Projects |
9.98 |
8.83 |
0 |
18.81 |
0 |
18.74 |
0.07 |
|
●
Pipeline Projects |
1.74 |
16.74 |
31.20 |
49.69 |
0 |
0 |
49.68 |
|
Total: Environ. & Conser. |
11.72 |
25.57 |
31.20 |
68.50 |
0 |
18.74 |
49.75 |
|
Community & Social Services |
|
|
|
|
|
|
|
|
●
On-going & Committed Projects |
14.23 |
23.83 |
12.65 |
50.72 |
0 |
50.72 |
0 |
|
●
Pipeline Projects |
5.78 |
4.39 |
2.60 |
12.76 |
0 |
0 |
12.76 |
|
Total: Commu. & Social
Servi. |
20.01 |
28.22 |
15.25 |
63.48 |
0 |
50.72 |
12.76 |
|
Culture and Arts |
|
|
|
|
|
|
|
|
●
On-going & Committed Projects |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
●
Pipeline Projects |
3.27 |
3.04 |
1.53 |
7.85 |
0 |
0 |
7.85 |
|
Total:
Culture & Arts |
3.27 |
3.04 |
1.53 |
7.85 |
0 |
0 |
7.85 |
|
Dev. Management & Governance |
|
|
|
|
|
|
|
|
●
On-going & Committed Projects |
66.14 |
6.14 |
5.05 |
77.34 |
0.35 |
28.38 |
48.60 |
|
●
Pipeline Projects |
11.52 |
14.22 |
15.21 |
40.95 |
0 |
2.38 |
38.57 |
|
Total: Dev. Mgt & Gov. |
77.66 |
20.36 |
20.26 |
118.29 |
0.35 |
30.76 |
87.17 |
TOTAL:
|
|
|
|
|
|
|
|
|
●
On-going & Committed Projects |
90.36 |
38.80 |
17.70 |
146.87 |
0.35 |
97.85 |
48.67 |
|
●
Pipeline Projects |
22.31 |
38.40 |
50.54 |
111.25 |
0 |
2.38 |
108.87 |
|
Total: Cross
Sectoral Programs |
112.67 |
77.20 |
68.24 |
258.12 |
0.35 |
100.23 |
157.54 |
|
TOTAL: ALL PROGRAMS |
632.92 |
693.25 |
611.42 |
1,937.59 |
290.39 |
996.57 |
650.62 |
|
●
On-going & Committed Projects |
513.28 |
515.42 |
461.26 |
1,489.96 |
276.93 |
880.67 |
332.36 |
|
●
Pipeline Projects |
119.64 |
177.83 |
150.16 |
447.63 |
13.46 |
115.90 |
318.26 |
|
