by Deputy Prime Minister KEAT CHHON

Minister of Economy and Finance and First Vice-Chairman of CDC

Palais du Gouvernement (CDC)

Phnom Penh, 19 March 2009

- H.E. Adrian Davis, Head of the UK Delegation

- H.E. Andrew Mace, British Ambassador

- Members of the Delegation from the DFID

- Excellencies and Colleagues from RGC's ministries and agencies

- Ladies and Gentlemen

1. It is a great honor for me to welcome the UK/DFID delegation to the Annual Bilateral Development Partnership Talks between our two governments, and I would like to extend my warm welcome to H.E. Adrian Davis, Head of the UK Delegation, to H.E. Andrew Mace, British Ambassador and the other members of UK/DFID Delegation. I would also thank my colleagues from government ministries and agencies and welcome them to these talks.

2. On behalf of the RGC and the Cambodian delegation, I would like to take this opportunity to express my Government’s sincere appreciation and heartfelt thanks to UK/DFID for its continuing support and commitment to the RGC's development priorities as set out in the Rectangular Strategy—Phase II and the National Strategic Development Plan (NSDP). DFID assistance has provided valuable support for the implementation of government major reform programs and contributed to deepen the democratization process in Cambodia.

3. The first Development Partnership Talks in April 2007 have further strengthened development cooperation between our two governments. These talks have provided a forum where on-going and future supports have been tailored to our national development priorities. Through these talks, opportunities have been provided to discuss the Government's development priorities and the short-term and long-term DFID vision and strategies that would best support the implementation of those priorities. At today's meeting we will therefore have an opportunity to review and discuss in more detail our joint progress and performance against what we had agreed in the last Talks, in a common view to accelerate and address challenges that have emerged, as well as the future of DFID support. It is our hope that our dialogue today, among our many objectives, can move us towards a common understanding to form a basis for DFID's consideration on the budget support component, which will be informed by the results of the PRGO appraisal mission. I believe that both the Royal Government and DFID have made significant progress towards meeting their commitments against the partnership principles agreed at our first meeting.

Excellencies, Ladies and Gentlemen

4. The Partnership Talks today are being held at the right time when DFID County Assistance Plan 2005-2008 has entered its final year of implementation. In the spirit of partnership that is one of the pillars of the Government's development strategy and has been anchored in DFID's leadership role in advancing the aid effectiveness agenda globally, the Royal Government has always valued the importance placed on dialogue on the future directions of DFID support. The decision to scale down implementation arrangements to reduce aid delivery transaction costs, and by working with other development partners through other best-practice modalities such as joint/delegated cooperation, represented UK/DFID's leading role in Cambodia in taking actions to implement the Accra Agenda for Action. The Royal Government is eager to see this leadership role contribute to strengthen a partnership for moving forward jointly.

Excellencies, Ladies and Gentlemen

5. The core objectives of today's talks are:

Firstly, to review the UK/DFID country programme evaluation and to consider how this influences DFID's proposed future directions for cooperation.
Secondly, to review progress in meeting the agreed commitment benchmarks between the Royal Government and UK/DFID as set out in the Partnership Principles. We will also examine DFID's Conditionality Policy in particular with regard to the provision of budget support under the PRGO programme.
Lastly, we will discuss any revision to the Partnership Principles that is required in light of the JMIs agreed at the CDCF meeting in December 2008 and other existing Government commitments.

6. The NSDP Mid-Term Review shows that we have made a lot of progress, and I am sure my colleagues from the Government will have a lot to show. They are here to provide any clarification that is sought. The only impression that I can make here is that we need to place the progress that we have made and challenges that we have encountered in this country's long-term perspectives. Progress today will set the stage for joint actions tomorrow. And I think this is what that is at the center of our Partnership Talks, and the proposed 10 year partnership agreement should be seen in this light. An appraisal mission on policy under the PRGO programme has been planned to be undertaken soon. I hope that discussions today will provide enough ground for DFID to evaluate progress in the implementation of conditionalities under the PRGO.

Excellencies, Ladies and Gentlemen

7. On behalf of the Royal Government of Cambodia, I would therefore like to take this opportunity to once again acknowledge UK/DFID's efforts in enhancing development cooperation activities by making aid work more effectively, in particular by its approach to providing budget support, under the PRGO programme, and strengthening government institutions' capacities in areas such as health and in the D&D reforms. In each of these areas it is important to acknowledge that DFID's development cooperation is of high quality and is an important influence in the development of policy. The UK is therefore a very important partner for Cambodia, not simply as a provider of highly-valued financial resources but, more important, as an example of an engaged partner that can bring ideas and transfer knowledge.

8. Finally, Excellencies, Ladies and Gentlemen, allow me to conclude these opening remarks simply by saying that these talks will give us a frank and fruitful discussion based on the spirit of goodwill and mutual understanding that exists in the relationship between our two countries. With these words I would like to officially open the Second Cambodia-UK Partnership Talks.

Thank you all for your kind attention.