COUNCIL FOR THE DEVELOPMENT OF CAMBODIA (CDC)

II. ROYAL GOVERNMENT'S FOCAL POINT FOR RESOURCE
MOBILIZATION AND AID COORDINATION

4. The Cambodian Rehabilitation and Development Board of the Council for the Development of Cambodia (CRDB/CDC) is the focal point within the Royal Government for the mobilization of Official Development Assistance (ODA), for coordination of ODA with all development partners (multilateral and bilateral development partners and NGOs), and for coordination with and between Royal Government ministries and agencies on ODA allocation and utilization issues.

5. The Council for the Development of Cambodia (CDC) consisting of two operational bodies: the Cambodia Rehabilitation and Development Board (CRDB) and the Cambodia Investment Board (CIB) was established to implement Royal Decree No. 03/NS 94 promulgated on 5 August 1994. The composition, role, functions and responsibilities of CDC including CRDB and CIB were outlined in detail in Sub-Decree No. #147 ANK.BK dated 29 December 2005. The role and responsibilities of CRDB/CDC are outlined in Articles 13, 14, 15 and 16 of the Sub-Decree #147 ANK.BK dated 29 December 2005 (Annex I).

6. As per the provisions in Article 13 of the Sub-Decree #147 ANK.BK dated 29 December 2005 on matters concerning public investment, the CRDB/CDC is:

to serve as the “ Focal Point “ and the “One-Stop Service” of the Royal Government for donor countries, international organizations and NGOs, as well as the “Focal Point” and “One-Stop Service” for ministries and other government institutions in the coordination of external aid allocation and utilization;
to sign pursuant to the delegation of authority of the Prime Minister and on behalf of the Royal Government, any legal agreements with bilateral and/or multilateral development partners and international organizations pertaining to acceptance and allocation of external development assistance;
to lead preparatory work, in cooperation with relevant ministries and institutions, for international conferences on resource mobilization such as the “Consultative Group Meeting for Cambodia “.

7. As per provisions of Article 14 in the Sub-Decree #147 ANK.BK, the role and responsibilities for public investment management of the CRDB/CDC, Ministry of Foreign affairs, the Ministry of Planning, Ministry of Economy and Finance, and the line ministries are as follows:

CDC shall be the coordinating body for setting strategic conceptual frameworks and public investment policies as well as setting up priorities for public investment projects for medium-term and for one year.
the Ministry of Foreign Affairs and International Cooperation shall be the diplomatic window.
the Ministry of Planning shall prepare and monitor 5-Year Plans and the public investment programs, in cooperation with the relevant ministries and institutions.
the Ministry of Economy and Finance shall prepare the macroeconomic framework for the medium-term and budget for implementing annual public investment programs and control the allocation of financing.
the line ministries shall prepare sectoral public investment projects and programs in cooperation with the Ministry of Planning and CDC, and is responsible respectively for implementation of their relevant projects and programs.

8. As per provisions of Articles 15 and 16 of Sub-Decree #147 ANK.BK, the ministries and institutions shall undertake and implement their functions with regards to public sector investments in coordination and through the “One-Stop Service” mechanism; and the Office of the Council of Ministers, ministries and institutions shall monitor the implementation of programs and/or projects within their respective responsibilities and in coordination with the “One-Stop Service” mechanism.

9. In the case of development programs whose implementation is to be financed through loans from bilateral and multilateral development partners:

the Cambodian Rehabilitation and Development Board of the Council for the Development of Cambodia shall be responsible for ensuring that the planned development programs are aligned with Cambodia's development priorities;
the Ministry of Economy and Finance shall review the program proposals to determine if they fall into priority categories to be financed from loans, approve the terms and conditions of the loans, and examine the implications of the repayment schedule of the loans in the framework of the total debt of the Royal Government as well as implications for the annual national Budget. The Ministry of Economy and Finance shall be the designated RGC signatory for all loan agreements as well as the depository of all loan documents. It shall ensure that the recurrent cost implications of all development programs are fully considered before signing on to proposals. It shall also maintain up-to-date information on loan disbursements and take prompt action to minimize costs under penalty provisions, if any, in the loan agreements.
The Royal Government ministries and agencies responsible for managing the implementation of the development programs financed through loans shall ensure that the development programs are implemented with full transparency and accountability to maximize the benefits for the people of Cambodia.

10. The Royal Government is aware of the capacity constraints both in CRDB/CDC and the line ministries and agencies to carry out their aid coordination and aid management functions. The Royal Government urges all development partners to give a high priority to supporting the development of capacity of all government institutions to enable them to take charge of efficiently managing their aid coordination and aid management functions in order to improve aid effectiveness.

11. The Royal Government is also aware that while the roles and responsibilities of institutions have been laid out in Royal decrees and Sub-Decrees, the current practices of some government institutions and some development partners do not adhere to the provisions of the existing rules and regulations. The current practice of some development partners to enter into agreements with individual government ministries and agencies without any prior coordination through the Royal Government’s designated focal point for aid coordination, the Cambodian Rehabilitation and Development Board at the Council for the Development of Cambodia, is a serious problem that hampers Royal Government’s efforts to efficiently manage its aid coordination functions. The Royal Government places a high priority on all parties conforming to and complying with the provisions of existing laws, rules and regulations.

12. To further strengthen the capacity of the CRDB/CDC and the ministries and agencies, the Royal Government shall expedite the process to provide CRDB/CDC with its own full time staff complement and budget resources. A merit based pay initiative (MBPI) will be implemented to support the capacity development of CRDB/CDC. Each ministry and agency of the Royal Government shall establish a focal point for aid coordination that shall be responsible for ensuring effective and timely coordination with the CRDB/CDC.

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