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Nation - Religion - King

Annual Bilateral Development Partnership Talks Between

the Royal Government of Cambodia

and

UK Department for International Development (DFID)

Opening Remarks

by Sr. Minister KEAT CHHON, MP

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

Palais du Gouvernement (CDC)

Phnom Penh, 25 April 2007

- H.E. David Reader, British Ambassador

- Mr. Marshall Elliott, Head of DFID South East Asia

- Colleagues from ministries and agencies of the Royal Government of Cambodia

- Members of the Delegation from the DFID

- Ladies and Gentlemen

1. It is a great honor and a pleasure 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 greeting to Mr. Marshall Elliott, Head of DFID South East Asia, H.E Mr. David Reader, British Ambassador and the other members of UK/DFID Delegation to these Talks. I would also thank my colleagues from government ministries and agencies and welcome them to these talks. On behalf of the Royal Government of Cambodia and the Cambodian delegation, I would like to take this opportunity to express my Government’s sincere appreciation and heartfelt thanks to DFID for its continuing support and commitment to the RGC's development priorities as set out in National Strategic Development Plan (NSDP) for the years 2006-2010 to implement the RGC’s Rectangular Strategy in order to achieve the Cambodia's Millennium Development Goals (CMDGs). DFID assistance has helped us to speed up the implementation of major reform programs and to deepen the democratization process in Cambodia.

2. As this is our first Development Partnership Talks in 2007, let me start by emphasizing that the Royal Government considers these partnership talks to be an important event for increasing the partnership in development cooperation between our two governments. This applies equally to both the current and future portfolio that is tailored through these discussions to support our national development priorities. At this meeting we will therefore have an opportunity to discuss both the short-term and long-term DFID vision that will best support the RGC's priorities under the NSDP. Furthermore, we will discuss the RGC's priority sectors that are aligned to the NSDP together with DFID's benchmark relating to long-term partnerships and commitments. We trust that our dialogue today can move us towards a common vision on these issues and towards agreement on the next steps in establishing a budget support component to the DFID programme.

Excellencies, Ladies and Gentlemen

3. The today agenda for our talks is very much structured around the partnership to materialize DFID vision that was set out in the three-year Country Assistance Plan 2005-2008 (CAP) through concrete steps for the effectiveness of our future cooperation. I would like to highlight three key important features of the CAP that our today partnership talks will focus on:

First, the DFID joint formulation process of CAP with ADB, WB and UNDP benefits not only in reducing the burden on the Royal Government but it also enables the four institutions to move forward in meeting their commitments in the Paris Declaration aimed at enhancing aid effectiveness, and in identifying areas where they will work together and areas where they will engage through bilateral arrangements in delivering their assistance.

Second, DFID’s commitment to deliver its assistance through sector and program-based approaches and making use of pooled funding modality will not only reduce the transaction costs on Government, but sector and thematic programs provide a framework for better aligning ODA supported activities with our national development priorities, and for harmonizing donor practices around jointly agreed priorities and actions.

Third, DFID's commitment to finding ways to reduce the transaction costs on the Government by reducing the number of separate bilateral programs by providing its assistance through others or through joint donor offices.

Excellencies, Ladies and Gentlemen

4. Let me turn back to the agenda of our partnership talks that will focus on:

Firstly, DFID's vision for supporting Cambodia, including through other development partners. Establishing clarity in this vision will be particularly useful as we look to the future and a possible ten-year development partnership agreement between our countries, as well as ensuring that DFID's support is effective and has a maximum impact on Cambodia development.

Secondly, we will examine DFID's Conditionality Policy in particular with regard to the provision of budget support. We will discuss annual milestones relating to i) PFM, ii) poverty reduction policy, and iii) human rights. We may also discuss draft benchmarks around the partnership commitments and agreement on next steps.

Lastly, we will seek to establish a consensus on how DFID can best support RGC priorities under the NSDP, including identifying priority sectors for continued engagement and potential scaling-up, as well as areas for possible eventual withdrawal in the context of an overall consolidation of support.

5. I would like to take this opportunity to assure you that DFID’s contribution to our national development is linked closely to the NSDP to implement the RGC's Rectangular Strategy. DFID’s contribution includes highly valued technical assistance as well as financial support. The RGC also recognizes that DFID's vision in working with other development partners and RGC line ministries is parallel to the Royal Government’s Harmonisation, Alignment and Results Action Plan that seeks to reduce transaction costs in aid delivery and to promote the effectiveness of development assistance. DFID is and will continue to be one of our valued development partners in Cambodia. Once again, on behalf of the RGC I would like to take this opportunity to express my deep and sincere gratitude to the UK Department for International Development for its continuing support to Cambodia.

Excellencies, Ladies and Gentlemen

6. Allow me to conclude these opening remarks simply by saying that I am looking forward to a frank and fruitful discussion and to a continued spirit of mutual goodwill and understanding in our relationship between our two countries. With these words I would like to declare the official opening of the Cambodian-UK Partnership Talks, and I would like to invite HE Marshall Elliott, Head DFID South East Asia to have his Opening Remarks before I turn to the first of our agenda items. .

Thank you all for your kind attention.