National Strategic Development Plan
(NSDP), 2006-2010
&
Public Investment Program
(PIP), 2006-2008

Royal Government of Cambodia
Ministry of Planning

8^th MEETING PHNOM PENH, CAMBODIA
2-3 MARCH 2006
 

Planned Development Efforts

• Since 1994, many plans to guide rehabilitation and development

• NPRD in 1994

• SEDP I, 1996-2000 in 1996

• SEDP II, 2001-2005 in 2000 to implement Triangular Strategy

• Over last five years, other attempts:

• I-PRS, NPRS, CMDGs many sector strategies

Planned Development Efforts

• Concerns over multiple strategic development frameworks

• RGC decision to prepare a single NSDP to implement Rectangular Strategy and achieve CMDGs

• NSDP 2006-2010 overarching document giving RGC’s priority goals and strategies

• NSDP operationalizes Rectangular Strategy to achieve CMDGs and other priority goals.

• A PIP 2006-2008 prepared to support NSDP implementation

• Both approved by RGC on 27 January 2006

NSDP AND PIP

• NSDP and PIP 2006-2008 to guide EDPs to align and harmonize their efforts to improve aid-effectiveness and secure higher “net transfer of resources”

• RGC urges all EDPs to align their country assistance strategies with NSDP and programs/projects with PIP

NSDP Implementation Strategy

• RGC committed to NSDP implementation monitoring and carrying out annual review

• A monitoring framework to be formulated in next few months

• NSDP implementation review 2006 to be shared by end-March 2007

• NSDP is a “live” document to be adjusted and updated annually using agreed monitoring framework

• Responsible ministries/agencies to work out detailed goals, targets, actions in sector plans for national and sub-national levels

NSDP Preparation Process

• Prepared in a participatory and inclusive way

• Consultations and workshops at various stages focusing on “results”

• “Results matrix” of priority goals and other key features agreed by line ministries/agencies, EDPs, members of civil society

• Several drafts reviewed and revised between August and November 2005

• Final draft reviewed by inter-ministerial meetings at COM in December 2005 and January 2006

• Endorsed by COM on 27 January 2006

NSDP Overarching Priorities

• Cambodia at a critical threshold now to realize its opportunities.

• In line with RGC’s development vision, NSDP priorities emphasize nine overarching aspects across all its programs:

1. Poverty reduction and gender concerns

2. Credible reforms in all sectors

3. Robust, equitable, spatially and sectorally well-spread economic growth

4. Significant increase in real investment in productive sectors and human development

5. Targeted efforts to most needy and least served people₇ and areas

6. Focus on well-tried, cost-effective activities with quick  and high returns at grassroots level

7. Optimize factor productivity

8. Enhance household incomes by relying more on human labor in construction and similar activities especially in rural areas

9. Stress on institutional and human capacity building in all sectors

NSDP Sector Priorities

• Foster good governance

• Reinforce and fast track a multi-pronged attack on corruption

• Carry out specific legal and judicial reforms.

• Speed up and pursue public administration reform

• Add to and strengthen measures to make decentralization and de-concentration (D&D) more effective

• Create an enabling environment for good governance

• Safeguard and enhance peace, political stability and social order

• Broaden mid deepen integration of Cambodia into the region arid the world and attract investment

• Deepen and strengthen partnerships with civil society, private Sector and external development partners

• In agriculture sector, priorities are to:

• Intensify and diversity crop production

• Improve fisheries management

• Sustainable management of forestry through reform

• Environment conservation

• Carry out land reforms particularly to ensure land tenure to the poor

• To further advance Rural Development,

• A long with D & D, build rural infrastructure

• Enhance access to affordable rural credit

• Priorities in rehabilitation of physical infrastructure

• Develop transport and communication networks with maximum attention to attracting private sector to work on a BOT basis wherever possible

• In energy sector;

• Put in place necessary infrastructure to optimize use of valuable offshore oil and gas resources

• For attracting private sector, both domestic and foreign,

• Improve overall climate through various governance reforms

• Special attention to SMEs, including better and easier access to long and medium term finance

• Reforms to enhance private sector participation will address issues relating to trade as well

• Education is a priority area in human development and capacity building.

• Apart from providing universal basic education, attention to other levels including vocational training and higher education to build a critical mass of skilled and capable people to serve development needs in various spheres.

• Health Sector priorities include:

• Accelerated reforms in all areas

• Expand availability of health care cacilities and better access to poor

• Social attention to curtail spread to HIV/AIDS especially to families.

• Gender equity issues permeate all activities;

• Priority to address in all sectors, particularly in agriculture, health, education

• Further strengthening of gender mainstreaming in all aspects of governance and society.

NSDP Sector Allocations

• Based on four elements:

1. Expected availability of public sector investments

2. ensure judicious resource use in sectors and purposed not likely to be served by private investments

3. Focus on rural areas

4. Focus on sectors with high poverty reduction impact

• Total requirement of US$ 3,500 million in public sector during 2006-2010

• Resources are expected from:

1. Current account surplus of national budget

2. Grant aid from traditional development partners

3. Concessional loans from MFIs

4. Resources from non-traditional partners

5. Fund from possible debt relief

• Financial allocations to different sectors given in Table 5.2 of NSDP document.

• Of the total, nearly 33% will be spent in social sectors, 22% in economic sectors, and 25% in infrastructure

• Services and cross-sector programs to receive 14% with separate allocations for gender mainstreaming

Public Investment Program (PIP)

• NSDP to be implemented and operationalised through rolling three-year PIP

• PIP will be financed both from national budget and assistance from EDPs

• From now on, national budget will be accordingly aligned

• PIP gives priority programs being implemented and/or planned for implementation is various sectors.

• PIP 2006-2008 is in line with planned sector allocations in NSDP

• Some key features:

1. Over 80% of Royal Government’s committed resources for social sectors

2. Nearly 82% of resources needed for on-going and committed programs and only 18% available for new high priority programs

3. Newly mobilized resources for next three years need to reduce TA component to less then 15%

4. Nearly 98% allocated social sector resources will be used in on-going and committed programs

Conclusion

• Coordinated efforts will be given by RGC to ensure allocation of resources reflecting NSDP priorities

• MOP, CDC, MEF and SNEC will work together to:

1. Align national budget to support NSDP implementation through financing PIP

2. Prepare rolling PIP by MOP in close collaboration with CDC, MEF and SNEC and complete in time to take into account in preparing national budget.

3. Align mobilization of development cooperation resources with PIP

4. Align EDPs’ country assistance strategies with NSDP priorities and their development programs and projects with PIP.

Thank you for your kind attention.