ANNEX I

******

Unofficial Translation

 KINGDOM OF CAMBODIA
NATIONAL RELIGION KING

Royal Government of Cambodia
No. 02 SSR
 

DECISION
on

ACTION PLAN ON HARMONIZATION FOR 2006-2010

Royal Government of Cambodia

-     Having seen the Constitution of the Kingdom of Cambodia;

-     Having seen the Royal Decree NS/RKT/0704/001 dated 15 July 2004 on the Nomination of the Royal Government of Cambodia;

-     Having seen the Royal Kram 02/NS/94 dated 20 July 1994 promulgating the Law on the Organization and functioning of the Council of Ministers;

-     Having seen the Sub Decree 147ANK.BK dated 29 December 2005 on the Organization and Functioning of the Council for the Development of Cambodia;

-     Upon the request of the Senior Minister, Minister of Economy and Finance and First Vice Chairmen of the Council for the Development of Cambodia;

-     Pursuant to the need of the Royal Government

Hereby decided as follows:

Article 1:    The Royal Government’s Action Planon Harmonization to improve aid effectiveness for 2006-2010 is approved as appended with this Decision.

Article 2:    The Cambodian Rehabilitation and Development Board of the Council for the Development of Cambodia shall be responsible for monitoring the implementation of the Action Plan in collaboration with ministries and agencies involved and with development partners and shall report progress on the implementation of the Action Plan to the Royal Government on an annual basis.

Article 3:    The Cambodian Rehabilitation and Development Board of the Council for the Development of Cambodia shall have the authority to review and revise the Action Plan in response to development both in the national and international arenas upon discussion and agreement with ministries and agencies involved and with development partners, and shall report the revision to the Council of Ministers for information.

 Article 4:   The Office of the Council of Ministers, the Council for the Development of Cambodia, and concerned ministries and agencies of the Royal Government as well as the Technical Working Groups shall implement this Decision from now on.

Article 5:    This Decision shall be effective from the date of signature.

 

Phnom Penh, 14 February 2006

Signature

Prime Minister

Delivered to:
- The Royal Palace
- Secretariat of the Constitutional Council
- Secretariat of the Senate
- Secretariat of the National Assembly
- Cabinet of the Prime Minister
- Secretariat of the Royal government
- Office of the Council of Ministers
- Ministry of Foreign Affairs and International Cooperation
- As per Article 5 above “for implementation”
- Archive


ANNEX I: RGC'S ACTION PLAN ON HARMONIZATION, ALIGNMENT AND RESULTS: 2006-2010

 
SECTION A:   OWNERSHIP: RGC exercises effective leadership over its development policies, strategies,
                                          and coordinates development actions
Results Actions Needed Responsible RGC Institutions Lead Development Partners Milestones Timing

a) National Strategic Development Plan targets are achieved. (Indicator # 1)


1. Within the framework of NSDP, sector ministries and agencies develop sector plans and prioritized results-based programs, and a sector MTEF.
 


Chairs of sector TWGs 


Lead Facilitator(s) of sector TWGs 

 


Detailed sector plans, prioritized sector programs, and a MTEF prepared.

 


SeptMay 2006

 

2. Based on prioritized programs of sector ministries/agencies, the three year rolling PIP is updated annually to feed into the national budget preparation process.

MOP, SNEC, CDC/CRDB, and MEF

Lead Facilitator(s) of PPR TWG

Three year rolling PIP prepared and made available to MEF for preparation of National Budget 2007.

SeptJune 2006 and in subsequent years


b) CDC/CRDB  -- RGC's focal point for resource mobilization and aid coordination --   leads the processes of resource mobilization and aid coordination with all development partners.


1.  Implement the Strategic Framework for Development Cooperation Management approved by the COM with development partners support to strengthen the capacity of CDC/CRDB and sector ministries and agencies.

 


CDC/CRDB

 


Lead Facilitator(s) P&H TWG

 


Strategic Framework implemented through a Multi-Donor Support Program with committed funding from interested development partners.

 


2006-2010

 


c) Sector ministries & agencies lead the management of ODA supported activities.

 


1.  CDC/CRDB provides technical support to sector ministries and agencies on aid coordination and aid management issues based on needs identified and support requested by the Chair of the TWGs.


CDC/CRDB

 


Lead Facilitator(s) P&H TWG

 


CDC/CRDB with resources of the Multi-Donor Support Program delivers the support requested by Chairs of the TWGs.

On-going.
1.  Development partners' support is aligned with national development strategies, i.e. NSDP..


a) Development partners base their support on NSDP priorities and PIP. (Indicator #3)

 


1. Development partners review their country assistance strategies and policies to align their assistance with NSDP priorities and sector development plans.
 


CRDB/CDC and Chair of TWGs

 


All development partners

 


Review of development partners' country assistance strategies completed.

 


June 2006

 

2. Development partners align their development programs and projects to finance and implement agreed sector plans and prioritized sector programs included in the three year rolling PIP. MOP, MEF, CDC/CRDB  and Chairs of  TWGs

Lead donor Facilitator(s) of TWGs

 

All new ODA supported programs/projects fully aligned with PIP.

Dec  2006

 

2. Development partners make increasing use of strengthened Cambodian institutions, systems and
    procedures as they attain mutually agreed standards.

a) National public financial management and procurement systems that adhere to broadly accepted good practices. (Indicator # 2)

1. MEF continues to implement the PFM reform program with targeted capacity development support from development partners to strengthen its PFM and procurement systems based on international best practices.


MEF


Lead Facilitator(s) of PFM TWG.


Quarterly progress reports provided to GDCC.


On-going


b) Increasing proportion of development assistance delivered through national institutions, systems and procedures. (Indicator #5)


1. Development partners and MEF establish mutually agreed framework to carry out reliable assessments of the PFM and procurement systems and make use of this assessment to increasingly rely on these Government systems as mutually agreed standards are attained.


Chair of PFM TWG


Lead Facilitator(s) of PFM TWG.


1.  Development partners and MEF agree on a methodology for carrying out a reliable assessment of PFM and procurement systems.


June 2006

 


2.  First assessment carried out.


Dec 2006

 

3.  Development partners provide periodic reports to GDCC on the use of PFM and procurement systems.

June 2007  onwards

c) Development partners release aid disbursements according to agreed schedules in annual or multi-year framework. (Indicator #7)

1. Each development partner provides to CDC/CRDB reliable indicative commitments of aid over a multi-year framework and disburses aid in a timely and predictable fashion according to agreed schedule.


CDC/CRDB MEF

 


All development partners

 


Data on indicative commitments provided.

on-going

d) The number of parallel PIU/PMUs for day-to-day management and implementation of external funded projects and programs steadily reduced. (Indicator #6)


1. CDC/CRDB with support from development partners carries out a survey on number of existing PIU/PMUs, and develop a strategy to integrate parallel PIU/PMUs in the government' structure.
 


CDC/CRDB MEF

 


Lead Facilitator(s) of P&H TWG

 


1.  Survey completed and strategy developed and agreed with development partners.

 


September 2006

 

2.  Implement the agreed strategy.

Chair of TWGs

Lead Facilitator(s) of TWGs

 

1.  Strategy implemented.

 

October 2006 onwards

 

3.  CDC/CRDB and development partners secure an agreement that no new parallel PIU/PMUs will be established under new programs and projects.  CDC/CRDB Lead Facilitator(s) of TWGs 1.  Agreement secured. DecJune 2006
3.  RGC’s capacity to plan, manage, implement, and account for results of policies and programs
     strengthened with development partners’ support.

a) Capacity development issues are addressed in the formulation of Sector Plans and ODA supported programs/projects with development partners' financial support to achieve targeted development results. (Indicator#4).


1.  All sector plans and development programs/projects include an assessment of the existing capacity gaps and a capacity development plan to fill the gaps to achieve targeted development results.
 


Chair of TWGs


Lead Facilitator(s) of TWGs


Assessment of capacity gaps and a plan for capacity development included in all sector plans and program/project documents.


On-going

2.  Each sector TWG prepares and implements a capacity development program for their sector ministry/agency to fill identified capacity gaps.
 

Chair of TWGs

 

Lead Facilitator(s) of TWG

 

Actions to strengthen capacity of sector ministries/agencies included in TWGs Action Plans.

Starting with TWG Action Plans for 2006.

 

3. Development partners provide financial support for the application of MBPI/PMG schemes as an element of the capacity development strategy.

CAR, MEF, CDC/CRDB

Concerned sector ministry/agency

 

Lead Facilitator(s) of TWGs

 

1.  Formalities to implement MBPI/PMG schemes in Education, Health, CDC, Land and MOP completed.

Dec June 2006

 

      2.  Implementation of MBPI/PMG scheme expanded to other key sectors. On-going
4.  Development partners untie aid.
a) Increasing proportion of aid is untied. (Indicator #8)

1. CDC/CRDB with support from development partners carries out a survey to collect information on the proportion of aid delivered through “untied-aid” modality and based on survey findings, formulate and implement a strategy, jointly with development partners, to increase the proportion of untied ODA.

CDC/CRDB

 

Lead Facilitator(s) of P&H TWG

 

  • Survey completed and a strategy outlined.

  • Strategy implemented.

 

Dec 2006.

 

Dec 2007

 

SECTION C:    HARMONIZATION:  Development partners' actions are more harmonized, transparent and
                     collectively effective.
1.  Development partners implement common arrangements and simplify procedures.


a) Increasing proportion of ODA  is delivered through Sector/thematic Programs, and other Program Based Approaches (PBAs). (Indicator #9)


1. CDC/CRDB and development partners jointly set targets on the portion of ODA that is to be delivered through Sector/thematic Programs, and other Program Based Approaches (PBAs) to be reached by 2010 in the framework of NSDP, and develop and implement a strategy to reach the agreed targets.
 


Chair of P&H TWG

 


Lead Facilitator(s) of P&H TWG

 


1. Agreement on targets reached and a strategy developed.


Dec 2006

2.  Strategy implemented.

 

On-going starting in 2007

 

2. Each TWG prepares a plan to increase delegated cooperation within their sector/thematic area. Chair of TWG

Lead Facilitator(s) of TWGs

Periodic reports on cases of delegated cooperation provided by TWGs to GDCC.

On-going

 


b) Steadily decreasing number of separate, duplicative donor missions and diagnostic reviews and studies. (indicator # 10).


1. Each TWG prepares a calendar of field missions, and diagnostic reviews and studies planned by donors participating in the sector/thematic area of the TWG. 

 


Chair of TWGs


Lead Facilitator(s) of TWGs

 


Periodic reports provided by TWGs to GDCC.

 


On-going

 


c) Development partners successfully implement their Action plans to meet the commitments of the Paris Declaration.

 


1. Development partners provide an annual report to CDC/CRDB on progress made to implement their country action plans that have been prepared as part of the follow up to the Paris Declaration.

CDC/CRDB

Each development partner.

CDC/CRDB makes available to OECD/DAC Joint Venture on Monitoring of Paris Declaration periodic progress reports based on information provided by development partners.

On-going
2.  Promoting a harmonized approach to environmental assessments and other cross-cutting issues
     such as gender equality and other thematic issues.


a)  Strengthened application of EIAs and “strategic environmental assessment” approaches at the sector and national levels.


1. Concerned ministries and donors develop, in consultation with stakeholders, a common procedure to strengthen EIAs at sector and national level.
 


MOE & MAFF (lead) and other ministries

 


Lead Facilitator(s) of concerned TWGs.

 


Procedures to strengthen EIAs drafted.

 


To be established by concerned TWGs.

 

2. Concerned TWGs develop and implement an action plan to strengthen the technical and policy capacity of relevant institutions to carry out environmental analysis and to enforce legislation. Chair of concerned TWGs

Lead Facilitator(s) of concerned TWGs.

 

Periodic progress reports provided to GDCC. On-going

b) RGC's sector ministries and development partners adopt harmonized approaches to tackle cross-cutting issues, such as gender equality.

1. Concerned ministries and donors develop common guidelines to tackle cross-cutting issues e.g. gender, HIV/AIDS.

Sector ministries


Lead Facilitator(s) of TWGs.

 


Common procedures to tackle cross-cutting issues developed and endorsed by RGC and donors.

DecJune 2006
SECTION D:    MANAGING FOR RESULTS:  Managing resources and improving decision-making for results.

a) RGC and development partners use jointly agreed results-oriented reporting and assessment frameworks that have a manageable number of indicators to monitor progress against key dimensions of national and sector development strategies.(Indicator #11)


1. MOP develops and implements a framework to monitor the implementation of the NSDP and prepare an annual progress review of NSDP implementation.
 


MOP

 


Lead Facilitator(s) TWG-PPR

 


First Annual progress report for the year 2006 prepared by PPR-TWG and submitted to RGC.

 


March 2007 and annually thereafter.

 

2. Development partners ensure that the Standard Operating Procedures (SOP) for loan assistance and National Operational Guidelines (NOG) for grant assistance are followed in monitoring and reporting on their programs/projects to reduce burden on RGC implementing institutions.

Chair of TWGs

All development partners

 

Chair of TWGs provide periodic reports to GDCC on development partners compliance with SOPs and NOGs.

 

On-going

 

SECTION E:    MUTUAL ACCOUNTABILITY:  RGC and development partners are accountable for
                     development results.

a) RGC and development partners are mutually accountable for development results.


1. CDC/CRDBRGC and development partners jointly assess and report on a regular basis progress in implementing RGC's Action Plan on Harmonization, Alignment and Results.
 


CRDB/CDC Line ministries/agencies

 


All development partners

 


An annual rReport prepared and presented to GDCC.

 


On-going

 

2.   CDC/CRDBRGC and development partners jointly carry out a review of the effectiveness of the TWG mechanism. CDC/CRDB

Lead Facilitator(s) P&H TWG

 

Survey completed and recommendations submitted to GDCC. June 2006


b) Development partners provide timely, transparent and comprehensive information on aid flows to the RGC. (Indicator #12)


1. Development partners provide transparent and comprehensive information to CDC/CRDB on ODA flows (including contributions to NGOs) in a timely fashion, to enable integration into budget cycle.


CRDB/CDC

 


All development partners

 


Information on ODA flows provided within the timeframe requested by CRDB/CDC/CRDB.

 


On-going

 


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