COUNCIL FOR THE DEVELOPMENT OF CAMBODIA (CDC)

Table 3: Disbursements by Type and Terms of Assistance
(in thousands of US Dollars)

Type of Assistance	Terms of Assistance	1999 Actual	2000 Actual	2001 Provisional	Disbursements in 2001		Total Disbursements 1992-2001
Type of Assistance	Terms of Assistance	1999 Actual	2000 Actual	2001 Provisional	% distribution	Change over 2000	US $	% distribution
Free-Standing Technical cooperation	Grants Loans TOTAL	199,249 0 199,249	209,490 0 209,490	176,125 0 176,125	37.3% 0.0% 37.3%	-15.9% 0.0% -15.9%	1,575,530 13,735 1,589,265	38.3% 0.3% 38.6%
Investment-Related Technical cooperation	Grants Loans TOTAL	19,192 0 19,192	21,252 0 21,252	26,305 0 26,305	5.6% 0.0% 5.6%	23.8% 0.0% 23.8%	230,342 1,987 232,329	5.6% 0.0% 5.6%
Investment Project Assistance	Grants Loans TOTAL	58,830 55,646 114,476	67,171 76,789 143,960	92,462 97,342 189,804	19.6% 20.6% 40.2%	37.7% 26.8% 31.8%	861,888 441,177 1,303,065	20.9% 10.7% 31.7%
Budgetary Aid/ Balance of Payments Support	Grants Loans TOTAL	24,356 11,500 35,856	17,000 21,091 38,091	18,429 27,546 45,975	3.9% 5.8% 9.7%	8.4% 30.6% 20.7%	135,618 275,397 411,015	3.3% 6.7% 10.0%
Food Aid, Emergency and Relief Assistance	Grants Loans TOTAL	30,937 0 30,937	54,020 0 54,020	33,633 0 33,633	7.1% 0.0% 7.1%	-37.7% 0.0% -37.7%	580,680 0 580,680	14.1% 0.0% 14.1%
Total Disbursements	Grants Loans TOTAL	332,564 67,146 399,710	368,933 97,880 466,813	346,954 124,888 471,842	73.5% 26.5% 100.0%	-6.0% 27.6% 1.1%	3,384,058 732,296 4,116,354	82.2% 17.8% 100.0%

41. There are some noticeable changes in the composition of ODA in terms of type and terms of assistance. Overall, the loans component, 26.5 percent of the total ODA, in 2001 was significantly higher than the average of 17.8 percent for the 1992-2001 period. The loans portion of disbursements in 2001 increased by 27.6 percent over the year 2000 level. The increase in the loans portion of disbursements has implications for future national budgets because of the resulting increase in the size of the national debt and related debt service charges. The Ministry of Economy and Finance will be monitoring closely the financing of development programs/projects through loans; and will conduct comprehensive reviews of development programs/projects proposed to be financed through loans as an integral element of the prioritization/decision-making process. At this stage of development of Cambodia, the Royal Government of Cambodia places a high priority on securing financing of development programs/projects through grants from Cambodia’s development partners.

42. The two categories – “free-standing technical cooperation” and “investment project assistance” – continue to be the two major areas of support accounting for 70.3 percent of total ODA disbursements over the 1992-2001 period, and 77.5 percent of ODA disbursements in 2001. However, it is only in the years1994 and 2001 when “investment project assistance” has exceeded “free-standing technical cooperation”. It is worth noting that while “free-standing technical cooperation” is by and large composed of grants, the “investment project assistance” consists of both loans and grants. The detailed data on ODA disbursements by type and terms of assistance and by year for the 1992-2001 period is presented in Annex III. The developments on ODA disbursements by type and terms of assistance are summarized below.

43. Free-Standing Technical Cooperation: In 2001, disbursements for “free-standing technical cooperation” declined to US$ 176.1 million from US$ 209.5 million in 2000 - representing a decline of 15.9 percent from last year (2000). All of this assistance consisted of grants. The major donors included: Japan (US$ 29.4 million), United States (US$ 15.5 million), Australia (US$ 14.6 million), France (US$ 13.4 million), UN Agencies (US$ 13 million), Sweden (US$ 10.8 million), United Kingdom (US$ 8.1 million), and European Union (US$ 8 million).

44. Investment-related Technical Cooperation: Disbursements in 2001 for “investment-related technical cooperation” totaled US$ 26.3 million as compared to US$ 21.3 million in 2000 – representing an increase of 5.5 percent in 2001. All of this assistance consisted of grants. The major donors have included: France (US$ 10.7 million), European Union (US$ 10.5 million), Germany (US$ 2.4 million), and Australia (US$ 1.5 million).

45. Investment Project Assistance: In 2001, disbursements for “investment project assistance” amounted to US$ 189.8 million as compared to just under US$ 144 million in 2000 – representing an increase of 31.8 percent from the 2000 level and making it the area that received the largest share of ODA in 2001. This is only the second time since 1992 when this area received the largest share of ODA. The other year when ODA in this area exceeded other areas was in 1994. In 2001, of the total disbursements of US$ 189.8 million, US$ 92.5 million was grants and US$ 97.3 million was loans. The major donors included: Japan (US$ 54.5 million), Asian Development Bank (US$ 48.7 million), World Bank (US$ 38.5 million), China (US$ 15.1 million), France (US$ 10.2 million), United States (US$ 8.2 million), European Union (US$ 4.2 million), and IFAD (US$ 4 million). It is worth noting that while the assistance from the bi-lateral donors is mostly composed of grants, the assistance from the multi-lateral IFIs and IFAD is in the form of loans.

46. Budgetary Aid/Balance of Payments Support: The International Monetary Fund (IMF) resumed its operations in Cambodia in mid-1999. Based on the success of the 1999 and 2000 Consultative Group Meetings and the review of the Government’s Financial Sector Reform Program, the IMF began to provide support to a new Poverty Reduction Growth Facility (balance of payments support facility) for Cambodia. Under this arrangement US$11.5 million were disbursed in both 1999 and 2000, and US$ 22.9 million in 2001. The World Bank also started disbursing the under the Structural Adjustment Credit (SAC), it disbursed US$ 9.6 million in 2000 and US$ 4.6 million in 2001. Japan has also resumed non-project grant aid funds and disbursed US$ 14.1 million, US$ 17 million, and US$ 16.1 million in 1999, 2000, and 2001 respectively.

47. Food Aid, Humanitarian/Emergency Relief Assistance: In 2001, disbursements for “food aid, humanitarian/relief assistance” declined to US$ 33.6 million from US$ 54 million in 2000 - representing a decline of 37.7 percent over last year (2000). The relatively high level of assistance in this area in 2000 is attributable to donor’s response to the most severe flooding in 70 years in Cambodia in the year 2000. UN Agencies were the largest providers of food aid and emergency assistance in 2001 – US $ 25.7 million. Other significant donors included: Canada (US$ 2.6 million), Australia (US$ 2.1 million), France (US$ 1.7 million), and China (US$ 1.2 million).

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