CDC - First Cambodia Development Cooperation Forum

Kingdom of Cambodia
Nation Religion King

Royal Government of Cambodia

Policy Performance of the Royal Government of Cambodia

Report on Progress towards targets of 2006
Joint Monitoring Indicators

Prepared by
the Cambodian Rehabilitation and Development Board
of the Council for the Development of Cambodia
for the First Cambodia Development Cooperation Forum (CDCF)
on 19-20 June 2007

May 2007

I. Introduction

1. This Report documents progress towards achieving the targets of the Joint Monitoring Indicators (JMI) that were endorsed at the Consultative Group Meeting for Cambodia held on 2-3 March 2006. The period for evaluation the success of the JMIs extends until 30 April 2007.

2. The main inputs for preparing this progress report have been the reports provided by each TWG on the request of the Cambodian Rehabilitation and Development Board of the Council for the Development of Cambodia (CRDB/CDC) in its role as the Secretariat of the Government Donor Coordination Committee (GDCC). In addition, the preparation of this progress report has benefited from the information that has become available through statements, remarks, comments, and clarification shared and provided during each of the GDCC meetings that have been held in 2006 and 2007¹. Earlier drafts of this report also benefited from inputs and clarification produced by TWGs.

3. Overall, good progress has been made by RGC to achieve the targets of the agreed JMIs. Yet RGC recognizes that there are areas where more actions are needed promptly, and where the constructive engagement of Cambodia's development partners is most appreciated. RGC has strived to put in place, and harness, mechanisms to take forward the partnership that has been nurtured based on dialogue and broad-based participation to arrive at a common understanding that will enable the government to take ownership of the development processes and develop capacity. With respect to many of the JMIs, RGC has worked effectively and methodically to achieve notable results, although some of these have not been discussed at the GDCC meetings.

4. Notwithstanding these positive developments, there have been a few occasions where this partnership was perhaps not taken in good faith by some partners. There were issues that may have been discussed and resolved through closer dialogue and information sharing at technical level, but have been prematurely over-publicized by some partners so that they could be identified as advocates of those issues. The political ramifications associated with this seriously undermine RGC's drive toward greater ownership of reforms and development processes. RGC believes that the complex and longer-term nature of the reform issues that have been identified in national development strategy requires not only firm political commitments from both sides to move forward, but also that principles of partnership, as embodied in the Paris Declaration and the October 2006 Declaration on Enhancing Aid Effectiveness, be adhered to.

II. Background to the Joint Monitoring Indicators

5. Joint Monitoring Indicators (JMI) have evolved in Cambodia through the Consultative Group (CG) process originally informed by the need to establish indicators for the purpose of monitoring of progress made by the Royal Government of Cambodia (RGC) in key reform areas. Progress in achieving the targets of JMIs provided a basis for discussion between RGC and development partners during the CG meetings on development policies, strategies and the related development need. In the history of the CG meetings for Cambodia, only since late 2004 have RGC and development partners had an opportunity to jointly review and agree on a set of JMIs to be submitted for endorsement by the CG meetings, and monitor progress on a regular basis, following the endorsement by Samdech Prime Minister in September 2004 of the dialogue/coordination mechanism, comprising the joint Technical Working Groups (TWGs) and the high level Government Donor Coordinating Committee (GDCC).

6. Discussions were held at the first meeting of the newly created GDCC (2 December 2004) to review and agree on a set of JMIs to be submitted to the 7th CG meeting to be held on 6-7 December 2004. Since the 7th CG meeting, the GDCC met quarterly to review progress on the agreed JMIs. These quarterly meetings by representatives of RGC and development partners, including Senior Ministers, Ministers or Heads of government agencies, Ambassadors or Heads of diplomatic missions, and Heads of multilateral institutions, provided an opportunity for both sides to regularly review progress and be informed about constraints encountered to enable them to take necessary actions.

7. As reported to the CG meeting held on 2-3 March 2006, in terms of progress in achieving the targets of the agreed JMIs, overall, significant progress was made. The JMIs progress report also stated that periodic review suggested that significant progress was made in areas where (i) a clear linkage had been established between planned activities and resources needed to implement the activities; (ii) institution responsible for achieving the targets of the JMIs was clearly identified; and (iii) timeframe for achieving targets was realistic. In contrast, in areas where one or all of the above was missing, setback/weaknesses were observed.

8. Learning from these experiences, RGC attempted for the first time to establish basic principles and a process for the formulation of JMIs to be submitted to the CG meeting in a spirit of partnership and mutual accountability to achieve national development and reform goals. In the GDCC meeting held on 12 December 2005, Senior Minister Keat Chhon, Minister of Economy and Finance, First Vice Chairman of the Council for the Development of Cambodia, and Chairman of the GDCC, on behalf of the Royal Government, outlined these principles as follows:

The targets for monitoring progress in achieving our development and reform goals must be based on RGC's priorities outlined in the NSDP that has been formulated to implement RGC's Rectangular Strategy, and the reform programs of the Royal Government.
For each activity to be completed to achieve a target the responsible government institution must be identified.
A realistic time frame to complete the activity must be established taking into account the capacity of the concerned government institution and the complexity of the issue.
The financial and human resources required to carry out each activity must be identified as well as the source of these resources.

9. In terms of process, formulation of JMIs was done through the coordination mechanism that has been put in place. A request was sent by the GDCC Secretariat to the Chairs of all TWGs asking for a brief report on the progress that had been made in implementing the JMIs in their areas of responsibility and for proposed JMIs. Based on the information provided by TWGs, the GDCC secretariat prepared a draft that was reviewed by a meeting of the chairs of TWGs. The agreed draft JMIs was then consulted by the chairs with all the Lead Facilitators of TWGs. Based on these feedbacks, the draft JMIs was revised, reviewed and agreed at the GDCC meeting held on 15 February 2006. Even with such a lengthy consultation process, the discussion on these JMIs still occupied considerable time at the CG meeting.

III. Progress since the last CG Meeting, 2-3 March 2006

10. The set of Joint Monitoring Indicators (JMIs) endorsed by the last CG meeting, held on 2-3 March 2006, consisted of twelve targets, with a number of actions needed to achieve the targets agreed, responsible institution for implementing the agreed JMIs, concerned TWGs, timeframe as well as resource identified. The set of JMIs as agreed at the last CG Meeting including the consolidated status of each target is annexed to this Report.

Target: NSDP monitored annually

Actions needed:

Develop and implement a framework to monitor the implementation of the NSDP and prepare an annual progress review of NSDP implementation.

11. A framework for monitoring the implementation of NSDP, which was prepared by the Ministry of Planning with support of the Planning and Poverty Reduction TWG, has been reviewed with line ministries and development partners and approved by the Royal Government of Cambodia. The framework outlined RGC's commitment to monitoring the implementation of the NSDP by preparing an annual progress report and carrying out a comprehensive review towards the end of the NSDP timeframe of progress made in achieving the targeted development results identified in the NSDP and other Cambodia MDGs at the national and sub-national levels to guide and serve as important inputs in formulating development plan for the period after 2010.

12. The first Annual Progress Report on the implementation of NSDP, NSDP-APR 2006, has been prepared under the lead of the Ministry of Planning in close collaboration with the Ministry of Economy and Finance, the Cambodian Rehabilitation and Development Board of the Council for the Development of Cambodia, and the Supreme National Economic Council. The NSDP-APR 2006 provides review and updates on (i) progress made in implementing key strategies and actions in sectors outlined in the NSDP and in the preparation of sector plans at the national and sub-national levels where they do not exist at present; (ii) progress in achieving targets of selected core (results) indicators identified in the NSDP; and (iii) degree of alignment of external development partners' support with sectoral priorities targeted in the NSDP, as well as recommendations and proposed adjustments to the NSDP.

13. Like the NSDP, RGC has exercised effective ownership in preparing the NSDP-APR 2006. To be endorsed by RGC, the NSDP-APR 2006 will be presented as one of the main documents in the Cambodia Development Cooperation Forum (CDCF) scheduled to be held on 19-20 June 2007.

Target: Build partnerships to enhance aid effectiveness and mutual accountability

Actions needed:

Implement the RGC’s Strategic Framework for Development Cooperation Management.
Prepare progress report on a six month basis the implementation of RGC's Action Plan on Harmonization, Alignment and Results.
Review and strengthen aid coordination mechanisms including CG, GDCC and TWGs.

14. Significant progress has been made to build and strengthen partnership with all development partners to improve the effectiveness of development assistance for the development of Cambodia. Important initiatives have been taken to enhance aid effectiveness and strengthen mutual accountability. These have included measures/policy to provide a policy and institutional framework for the management of development cooperation activities, to enable implementation of actions to strengthen government ownership and leadership, increase alignment of development partners' support with national development priorities, harmonize the conduct of aid practices to enhance the effectiveness of aid for poverty reduction in a mutually accountable manner.

15. One of the most significant achievements in this particular regard is the approval by RGC of the Strategic Framework for Development Cooperation Management (SFDCM) in January 2006. It symbolizes RGC's firm commitment to full ownership and leadership of the development processes. The SFDCM reaffirms the role and responsibilities of line ministries and agencies for external resources mobilization and aid coordination functions in accordance with existing Laws and Regulations of the Kingdom of Cambodia. It outlines the objectives and basic principles and policy framework that shall guide the management of development cooperation in Cambodia. At the institutional level, the SFDCM reaffirmed the role of the Cambodian Rehabilitation and Development Board of the Council for the Development of Cambodia (CRDB/CDC) as designated focal point within RGC for the mobilization of ODA, for coordination of ODA with all development partners (multi- and bilateral and NGOs), and for coordination with and between RGC ministries and agencies on ODA allocation and utilization issues.

16. The SFDCM is being implemented under the leadership of CRDB/CDC with support from a group of development partners. Focus is being placed on strengthening capacity of RGC's focal point for aid coordination, CRDB/CDC, to enable it to effectively perform its mandated and vastly expanded functions as well as capacity development of line ministries and agencies to enable them to effectively manage development cooperation activities in the sectors/areas under their responsibility. Support to RGC to successfully implement the SFDCM, thereby contributing to improve aid effectiveness for poverty reduction in Cambodia, will be effective to the extent that all parties conform to and comply with the policies and principles put forth in the SFDCM. Non-adherence to the provisions of existing rules and regulations has not only hampered RGC's efforts to efficiently and effectively carry out aid coordination functions, but also weakened capacity institutionally. Therefore, efforts to increase aid effectiveness through coordination are put at risk. RGC encourages development partners to work through RGC's designated focal point for ODA mobilization and coordination to improve aid effectiveness.

17. The Action Plan on Harmonization, Alignment and Results (H-A-R) was approved by RGC on 14 February 2006 after extensive consultation with line ministries and development partners. It was formulated in accordance with the five partnership principles and the commitments of the Paris Declaration. The H-A-R Action Plan contains concrete activities informed by and linked to the priorities outlined in the SFDCM with clearly identified responsible implementing parties, to strengthen national systems, procedures and capacity, to achieve harmonized development partners' support aligned with national development priorities, and to ensure mutual accountability for development results. This will contribute to support the implementation and achievement of the goals and targets of the NSDP. The willingness to make utmost efforts to implement the H-A-R Action Plan has been expressed through singing a Declaration on Enhancing Aid Effectiveness between RGC and 14 development partners² on 5 October 2006. In the Declaration, RGC and development partners also committed to monitoring the implementation of the H-A-R Action Plan.

18. Based on request by the GDCC Secretariat to each Technical Working Group for information on progress made in the implementation of TWG Action Plans, JMIs, H-A-R Action Plan, and resources requirements, CRDB/CDC has consolidated the inputs provided by the TWGs and prepared a report on progress in the implementation of the H-A-R Action Plan as part of a report—Overview of Progress by all TWGs—to be shared at the GDCC meetings. As of now, the reports were shared during the GDCC meetings held on 5 October 2006 and 12 February 2007.

19. Prior to 2004, except for a few working groups, initiated and completely led by donors with limited participation from government ministries/agencies, there was no established mechanism for regular dialogue between RGC and the donor community apart from the periodic high level Consultative Group (CG) meetings. Efforts to put in place a government donor coordination mechanism took shape in September 2004, when Samdech Prime Minister endorsed the creation of joint government donor Technical Working Groups (TWGs), with each TWG led by the government and joined by development partners and other ministries/agencies. There are now 18 TWGs along the sectors or thematic areas. TWGs have been functioning for over two years, its work being coordinated by the high level Government-Donors Coordination Committee (GDCC), which comprises, on the government side, Ministers and Heads of agencies and, on the development partners, Ambassadors and Heads of development cooperation agencies in Cambodia. The GDCC-TWG mechanism, as it has been known, represented a fundamental change as far as development cooperation management is concerned in Cambodia where, at the sector/thematic level, RGC ownership and leadership of development process and activities have been enhanced to enable it to take the lead in planning, managing and monitoring of ODA activities for the sector/thematic areas identified in the NSDP jointly with development partners.

20. Since the first meeting of the GDCC in December 2004, the GDCC-TWG mechanism has functioned, as recognized by RGC, on a learning-by-doing basis. By any standard, the GDCC, with its secretariat located at CRDB/CDC, has regularly provided a forum for RGC and development partners to jointly assess progress in implementing agreed commitments, resolve bottlenecks and arrive at common understanding on key policy and reform areas. Specifically during the last CG meeting held on 2-3 March 2006, the process of preparation and formulation of Joint Monitoring Indicators (JMIs) that were to be submitted to the CG Meeting, was, for the first time in the history of the CG meetings held in Cambodia, completely led by RGC in discussion with development partners through the TWGs and GDCC. In 2006, GDCC met regularly to monitor progress in implementing the agreed JMIs.

21. The need to rationalize, streamline and strengthen the functioning of the mechanism and improve its efficiency and effectiveness called for a fresh look at it, especially the role and function of TWGs in this architecture, the principles to govern its functioning, and the linkages with other ministries and agencies and dialogue forums such as the GDCC and the annual Consultative Group meeting, which was later to become the Cambodia Development Cooperation Forum (CDCF). Samdech Prime Minister, opening the 8th CG Meeting for Cambodia (2-3 March 2006), recommended that such a review be undertaken.

22. The Review, including consultations (and buy-in by development partners), took nearly one year to complete. As a result, two important initiatives have been taken by RGC. First, the consultative group process, with its annual Consultative Group Meeting, was transformed into the Cambodia Development Cooperation Forum (CDCF) as a forum, under the leadership of the government, to dialogue on public policy/reform issues and associated financing frameworks, laying the foundation for a more broad-based dialogue/consultation with other national stakeholders including the private sector for the development of the nation in the future. Second, informed by the findings of the Review of the GDCC-TWG mechanism, a "Guideline on the Role and Functioning of Technical Working Groups" was prepared and adopted by RGC in February 2007, paving the way for rationalization, streamlining and strengthening of TWGs. In the Guideline, the role and functions of TWGs especially in relation to the NSDP, RGC's aid effectiveness priorities, development cooperation management/coordination, and capacity development; structural and operational issues; and the linkages between TWGs and government ministries/agencies, the GDCC and the CDCF, including the preparation and monitoring of agreed Joint Monitoring Indicators, have been clarified.

23. The efforts, and the time and energy, devoted to the Review and the important steps that have taken have proven wrong suggestions expressed at that time that it was too early for such a review to be undertaken. As Samdech Prime Minister put it in the opening of the 8th CG Meeting (2-3 March 2006): "now we have the horizon firmly in our sights": the NSDP as a single, unified national development strategy with its monitoring framework, the SFDCM that articulates national priorities to increase the effectiveness of ODA to realize goals and targets in the NSDP and the Cambodian MDGs, the H-A-R Action Plan to implement the aid effectiveness priorities, and a mechanism to dialogue on national development strategies and actions. In addition, we have firm commitments in the Declaration on Enhancing Aid Effectiveness that we will take actions. On this basis, RGC is optimistic that the partnership with all development partners will be further strengthened, and this partnership, based on mutual accountability, will contribute to increase the effectiveness of ODA, the ultimate objective being poverty reduction of the Cambodian people.

Target: Combat corruption

Actions needed:

Finalize and approve Anti-corruption Law, based on best international practices, and:

Prepare an implementation plan to enforce and manage the implementation of the Anti-corruption Law.
Disseminate information on reported cases on corruption and conviction on semi-annual basis.

24. The delay in the adoption of the Penal Code, has implications for this agreed JMI because ensuring consistency with the draft Penal Code has been considered the basis for finalizing the draft Anti Corruption Law. As a result, the draft Anti Corruption Law has not been adopted by the COM yet. Meanwhile, [MONASRI] has in fact taken a lead in preparing a draft implementation strategy for the anti-corruption law since March 2007.

25. Notwithstanding these setbacks, advance in the drafting process and improvement to the draft law can be highlighted:

As reported in the GDCC meeting held on 5 October 2006, the draft Anti Corruption Law was ready for an inter-ministerial meeting before submission for approval by the COM.
In the current draft, the three issues of anti corruption body, its independence, and the constitutionality of the draft law and its consistency with the Penal Code, have been strengthened.
The effectiveness and independence of the anti corruption body as stipulated in the draft Anti Corruption Law has been ensured. Its secretariat has been entrusted with a judicial police role as well as prosecutorial power for investigation and indictment.
The Penal Code, which is being finalized, contains stipulations on corruption, which cover the crime more comprehensively than did the initial draft Anti Corruption Law. With support from French cooperation, the Ministry of Justice and the Ministry of National Assembly Senate Relations and Inspection have been working to revise the draft Anti Corruption Law to include provisions from the draft Penal Code.

26. Notwithstanding the delay in the adoption of the Anti Corruption Law, RGC has taken bold measures in combating corruption involving government officials. These have included:

Restructuring and strengthening of the Anti Corruption Unit (Sub Decree 84 dated 22 August 2006).
Administrative sanctions were levied against seven officials in violations of the Forestry Law, with four transferred from position and the other three suspended.
Two officials were indicted and received prison terms on charges of encroaching on private property.
One official was charged with bribery, complicity in encroaching on public property and forestry, and fraud.
One official was charged by the court with destroying natural resources and environment (according to Article 22 of the Law on the Protection of Environment and Natural Resource Management), and with forest crimes (according to Article 101 of the Forestry Law).
One senior government official (in the Ministry of Rural Development) was charged with embezzlement of national budget (according to Article 37 of the Transitional Criminal Law).
Eleven government officials were sentenced by the court on charges of illegal logging in the Dragon Tail region of Rattanakiri province (according to Article 38 of the Transitional Criminal Law).

Recognizes the significance and urgent needs for the fight against corruption, the Government will make effort to further improve the corruption reporting system to be on a regular basis.[MSOffice2]

Target: Establish a well functioning, transparent and accountable legal and judicial system that protects individual rights as defined in the Constitution

Actions needed:

Develop a clear policy framework on access to information.
Complete the drafting and approval of the remaining fundamental Laws (Penal Procedure Code, Penal Code, Civil Code, Law on the Statue of the Judges, Law on Court organization and Functioning).
Establish timeframes to complete the remaining Laws and regulations needed to meet WTO requirements and carry out the tasks within the established time frames.
Establish time frames to complete the drafting, review and approval of various new Laws and regulations and amendments to existing Laws and regulations and ensure timely completion of the review, redrafting, and approval processes within the established time frames.
While the priority setting process is being put in place, priority will be given to:

Complete the Draft Law against Trafficking in Person and Sexual Exploitation and submit to COM.
Complete and adopt a National Plan to enforce the Law on Domestic Violence and Protection of the victims.
Complete preparation of regulations to enforce State Land Management Sub-Decree.
Elaborate and implement Article 18 of the Land Law.
Adopt RGC's strategy and regulations for the indigenous people.

27. The lack of assistance has, in part, led to delay in developing a policy framework for access to information. Yet the process is being studied by the Ministry of National Assembly Senate Relations and Inspection (MONASRI). A workshop has been organized to highlight the role of public information and universal principles to be included in drafting the law. MONASRI is currently seeking support from development partners on this matter.

28. The MONASRI has prepared its priority Action Plan which included Draft Law on Inspection and Draft Law on Access to Information to support RGC's effort on combating corruption as has been specified in the Rectangular Strategy. Regarding the draft Law on Inspection, MONASRI working group has met with Japanese experts on that law and it was suggested that the drafting be undertaken following the adoption of the Anti Corruption Law.

29. There has been advance in the effort to put into place fundamental laws for establishing a functioning legal system, although not all of the agreed activities have been completed as scheduled. Three codes met the schedule agreed at the last CG meeting (adoption by the COM): Penal Procedures Code and Civil Code, with the Civil Procedures Code promulgated on 6 July 2006. There has been delay to submit for adoption by the COM the Penal Code due to the fact that a number of specific laws were enacted before the adoption of the Penal Code. Therefore, the draft Penal Code needs extensive review to ensure consistency among those laws. Currently, the draft Penal Code is at the COM for an inter-ministerial meeting. There has also been delay to complete drafting laws related to the judiciary (Law on Organization and Functioning of the Courts, Law on the Amendment of the Law on the Organization and Functioning of the Supreme Council of the Magistracy, Statute of the Judge and Prosecutor) due to the lack of expertise in the Ministry of Justice and time constraints.

30. Necessary Laws and regulations needed to meet the WTO requirement have been prepared and enacted. These have included:

Draft Law on Secured Transaction, which is expected to be passed in mid 2007.
Law on Commercial Arbitration, which was promulgated on 5 May 2006.
Law on Commercial Enterprises, which was promulgated in June 2005.
Sub Decree to establish a new Inter-Ministerial Committee to implement the WTO commitments has been adopted on 7 March 2007.
Sub Decree on the implementation of the Law concerning Marks, Trade Names and the Act of Unfair Competition was adopted in July 2006.
Sub Decree on Special Economic Zones was adopted in December 2005.

31. After Cambodia ratified the UN Palermo Protocol to Prevent, Suppress and Punish Trafficking in Persons, Especially Women and Children and after Cambodia has prepared the draft general Penal Code, the draft Law on Suppression of Human Trafficking and Sexual Exploitation had to be adjusted to be in compliance with these documents. Any special penal law must fit to the domestic legal framework, both in terms of its legal technique and in terms of its value system. A revised draft is now under consultation. The Ministry of Justice and Ministry of Women's Affairs and other stakeholders are cooperating on this. Furthermore, an Inter-ministerial Task Force on Human Trafficking has been established to support this process.

32. The National Action Plan to Combat Violence against Women has been finalized and is now in the process of internal consultation within MOWA. Preparations for its official launch are underway. In anticipation of the plan, training has been conducted for Master Trainers of the Police as well as all provincial Judges and all commune and village chiefs. Furthermore, the Ministry of Interior and the Ministry of Women’s Affairs have cooperated in elaborating a draft Sub-Decree concerning the administrative decision and the cooperation of local authorities with the police forces, in relation to domestic violence. The Sub-Decree needs proper consultation to fit in with the D&D legal framework. However, with the Domestic Violence Law now in force for over a year, the adoption process of the Sub-Decree is urgent in order to ensure the proper applicability of the law.

33. The target of completing regulations to enforce the State Land Management Sub Decree was met to the point that state land registration may proceed. The adopted regulations have included: (i) Prakas No. 42 dated 10 March 2006 on identification, mapping and classification of state land; and (ii) Decision No. 52 dated 25 December 2006 on the criteria for state land classification annexing to the Prakas No. 42 dated 10 March 2006 on identification, mapping and classification of state land.

34. To implement Article 18 of the 2001 Land Law, an instructive circular was signed by the Prime Minister 26 February 2007. The Ministry of Land Management, Urban Planning and Construction will continue to widely disseminate this tool.

35. The preliminary draft of the policy on the registration and the right to use of indigenous communal land has been drafted. A regional and national consultation workshops and the international forum have been held, respectively on late-December 2006, late January and early February 2007, with the participation of around 400 participants who were senior governmental officials representing indigenous people, all relevant institutions, civil society, representatives of indigenous people, national and international organizations. Based on the result of these regional and national consultation workshops, the General Secretariat of the Council for Land Policy have revised the policy reflecting the feedbacks that have been collected. The draft policy was discussed by the Council of Land Policy on 25 April 2007. Once adopted by CLP it will be submitted to the Council of Ministers for final approval.

36. An inter-ministerial working group has targeted three indigenous villages for piloting the preparation of a Statute of Indigenous Community, which is the principal basis for the establishment and recognition of indigenous communities, to enable them to obtain status as a legal entity entitled to collective community land registration and titling. Three statutes, as a result, in the piloting villages of Tampuon Community in La’In village, Kaun Mom district and Tampuon Community in La’En Kren village, Ou’Chum district, Ratanakiri province, and Andong Kraleng village in Mondulkiri, have been registered and formally recognized by the Ministry of Interior.

37. Addressing the question of “what strategy does the Government have to protect indigenous community land before it gets registered?” based on feedbacks received from regional and national workshops the RGC decided that the procedures and mechanism set forth in the Sub-Decree No. 118 on State Land Management should be applied to pilot on interim protective measures. As per the Sub-decree, the Provincial State Land Management Committee and especially the District Working Group on State Land will continue the process of identification, mapping and classification of state land. Preliminary result of this process will be publicly disseminated to the community, to show the location of land each community has traditionally and currently lived on with the knowledge of neighboring communities and local authorities. After all differences have been solved, the Provincial State Land Management Committee will issue a temporary decision on legal claims.

Target: Further develop the Public Administration to serve people better and to become an effective development partner

Actions needed:

Implement the approved "Joint Government-Donor Strategy for Phasing Out Salary Supplementation Practices in Cambodia" by:

Implementing approved sectoral action plans; and
Establishing Priority Mission Groups (PMGs), and PMG/Merit Based Pay Initiatives (PMG/MBPIs) in MEF, MOH, and at least one other ministry/agency.

Improve pay and employment conditions in the civil service by developing and implementing:

A medium term strategy and action plan to enhance remuneration; and
A redeployment policy and action plan.

Design and implement an HRM policy and action plan to improve merit and performance management by introducing an HRM Guide and further developing the Human Resource Management Information System (HRMIS) for the Civil Service.
Enhance service delivery though developing a One Window Offices (OWOs) policy, legal framework and implementation plan, including establishment of at least 5 OWOs across Cambodia.

38. On phasing out salary supplementation, the Council for Administrative Reform (CAR) received answers to the questionnaire on salary supplementation practices. Further work to implement the approved strategy must wait for the completion of this initial step. Quality and timeliness of resources have critically affected progress in implementing the strategy to phase out salary supplementation. CAR is still waiting for the resources necessary for the implementation of the strategy to phase out salary supplementation. Necessary authorizations to hire consultants to carry out studies were only obtained in September 2006.

39. Following tripartite negotiations between CAR, the Ministry of Economy and Finance (MEF), and development partners, a Memorandum of Understanding (MOU) including the operations manual, the PFM MBPI was signed in May 2005. MEF has completed the selection process as stipulated in the Sub Decree 98, dated 5 August 2005, on the Implementation of the Merit Based Pay Incentive. MBPI payments commenced in late 2005. Work to establish an MBPI in the Ministry of Health (MOH) is on track to ensure that it meets the interest of the government and MOH. Although, agreement has been reached in principle between MOH, CAR and the health development partners to continue discussion on MOH MBPI, it is emphasized by CAR that the process shall follow stipulations in Sub Decree 98 on the Implementation of Merit Based Pay Incentives, which specifies that the establishment of a PMG is a first step which could be enriched through a special salary allowance funded by donors if they so desire. Work has also begun to discuss rolling out MBPI to the Ministry of Commerce (MOC). Discussions with MoC are on going to develop MOC MBPI in 2007.

40. Two studies to inform decision making on remuneration and deployment policies are being completed. Reports are now ready for circulation. Work is proceeding on developing concept papers on a medium term remuneration policy and an employment policy.

41. Concept papers on HRM and HRD were developed and circulated in the PAR TWG in October 2006 for comments and feedbacks. So far no comments have been received by CAR. Inter-ministerial consultations will be undertaken shortly on the HRM policy. The new policy will strengthen merit based practices and introduce performance enhancement mechanisms. Funding for developing a HRM Information System has also been secured.

42. The policy on service delivery was approved by the Council of Ministers on 5 May 2006 and is being implemented. A draft policy on One Window Services was prepared and is being integrated within the concept of “special operating agency” CAR is developing as service centers based on the PMG scheme.

43. Overall as far as implementing JMIs is concerned, the quality and timeliness of resources deployed, including assistance to strengthen internal capacity, will largely determine success. It has been easily stated that the resources devoted by the government and development partners through the PAR TWG fall well short of their commitment and do not match the seriousness of the situation. Only one of the members has targeted the reform as a priority. The PAR TWG agreed on the JMIs over a year ago. Resources and assistance necessary to their realization became available only during the summer.

44. Notwithstanding the progress that has been made to reform the Civil Service, the Royal Government is committed to widen and deepen the pace of the reform. The Civil Service shall rapidly become an effective provider of public services and a trusted development partner. However, the reform is about what can be done, not what should be done. It is a matter of capacity and sustainability. CAR has initiated the development of six policies and their implementation plan to deepen and widen the reform in the medium term. These reforms are fundamental and far-reaching—and clear. However, some development partners continue to ignore the National Program for Administrative Reform (NPAR), which is a coherent and holistic strategy, and rather to narrowly focus attention on a few elements of the reform that suit immediate needs and interests. They continue to advocate unsustainable and impractical reform options that do not correspond to Cambodia's needs and reality. One cannot strengthen the Civil Service by focusing narrowly on salary. It is the Government’s position that the civil service cannot be strengthened by pushing narrowly in salary and pay-return issue. CAR Secretariat needs assistance to support and develop its capacity, but not instructions or assistance for substitution. It is time, at least in the context of the Administrative Reform, to overhaul the TWG. CAR looks forward to work together with its development partners in a constructive partnership and with mutual respect and accountability.

Target: The RGC’s Strategic Framework for Decentralization and De-concentration (D&D) reforms developed, and initial preparation made for full implementation

Actions needed:

Preparation, Consultation and submission for approval by the National Assembly a set of the organic Laws on democratic development at Sub-national levels.
D&D and organic law implementation framework/outline prepared (preliminary provisional pending the enactment-approval by the National Assembly of the organic laws).
Review and formulate D&D support program for reform and Investment for Local Development.

45. Good progress has been made in the D&D reforms towards sub-national democratic development in Cambodia since the start of 2006. At the GDCC Meeting in June 2006, progress was reported on the three major components that were necessary to advance decentralization and deconcentration reforms in the short term, that is:

Completion of the draft Organic Law and submission to MOI;
Preparation of the preliminary Implementation Framework for the Organic Law; and
Completion of the independent study on options for future donor funding and support to decentralization and deconcentration reforms that was commissioned by the Ministry of Interior.

46. The first draft of the Organic Law, which consists of five volumes, was completed in December 2006. Consultations and discussions on the contents of the first draft are being conducted within the Ministry of Interior (MOI). A document with proposed entry points for engendering the draft organic law on D&D including suggestions and recommendations has been prepared and officially submitted to the MoI and NCDD. A follow up meeting and discussion was held between the delegation led by the Chair of the TWG-G/ Minister of Women’s Affairs and H.E. Sar Kheng, deputy Prime Minister and his colleagues, whereby H.E. gave his support and verbally agreed to the recommendations in the document. A task force has been formed to coordinate and take an active role in providing gender expertise for commenting on the draft Organic [MSOffice3] Law. On the basis of the consultations, the draft law is being redrafted by MOI. Presentations and discussions on various aspects of the draft law have also been done in the NCDD and in forums with the commune councils, NGOs, development partner community and line ministries. The target of submission of the draft Law to the National Assembly was not met because of the greater than expected technical and internal policy complications in the Law, giving rise to the need to include and integrate considerable details to avoid misunderstandings and ambiguity and to guide future long-term directions.

47. The four phases strategy for the implementation of the Organic Law that were identified by Deputy Prime Minister Sar Kheng and shared during the GDCC meeting in February 2006, were further developed in the form of a preliminary (or temporary) Implementation Framework. It was prepared during the first quarter of 2006 and adopted by the National Committee for the Management of Decentralization and De-concentration (NCDD) in September 2006. The Framework identifies the main components, priorities and sequencing of activities for the reform and implementation of the Organic Law. It also sets out the preparatory activities to be undertaken while the Law is being redrafted and awaits enactment by the Parliament. The preparatory phase component of the Framework was distributed in June 2006 to provide partners with a basis for planning their support for 2007. The Framework therefore provides preliminary guidance, choices and timeframes for ministries, international agencies and donors to develop flexible short-term, medium-term and long-term programs that are in alignment with the Royal Government’s policy and strategy. Nevertheless, the preliminary and provisional nature of the Implementation Framework has made it difficult to enforce its implementation. The Framework requires continuing review and expansion/revision in accordance with the changes in the draft Law and the issuance of supplementary policies as per the Strategic Framework for D&D adopted by RGC in 2005.

48. Under the leadership and guidance of the NCDD and in line with the Strategic Framework for D&D and the principles underlying the drafting of the Organic Law, RGC remains committed to the formulation and approval of a National Program on Sub-National Democratic Development by the end of 2007. Following review and possible updating of the existing terms of reference for the program design, it is anticipated that a team of consultants will be fielded in the third quarter of 2007 to work closely with the NCDD in undertaking the program design and periodically consulting with the D&D TWG. The design, under the leadership of the NCDD Task Force, is expected to result in a programming framework against which domestic and external resources would contribute to: i) articulation of fiscal, administrative and sectoral policies and the sub-national regulatory framework; ii) reformed institutional structures and governance systems and iii) socio-economic investments with a clear focus on poverty reduction. To reinforce a program-based approach, harmonization and alignment, the design would also be expected to include the establishment of a D&D Fund Facility and an Umbrella Agreement on Government-Donor Partnership in support to D&D.

Target: The RGC’s Public Financial Management reform program implemented

Actions needed:

Continue implementing the RGC's PFM Reform Program (complete Stage1/Platform 1 and begin implementing the action plan for Stage 2) and monitor impact through the agreed PFM Performance Management Framework/Indicators.

49. Significant progress has been made in the areas of the Public Financial Management Reform Program (PFMRP). Substantial and encouraging progress has been reported on the on-going PFMRP Platform 1 outcome of improving budget credibility and some preparatory work for Platform 2 targeted at strengthening accountability for achieving effective financial management. In 2006, RGC reported domestic revenue at 105.4% of target, increased rates and alignment of budget execution and domestic supplier arrears reduced by 38%. Though Platform 1 has not been fully completed, priority activities and work required to complete Platform 1 during 2007 have been identified and agreed during the Strategic Annual Review in Siem Reap on April 09-10, 2007. The remaining activities are to ensure the robustness of Platform 1 while moving to the next Platform. Concurrently it has been agreed to commence strategic planning during 2007 for the implementation of the next stage aimed at achievement of Platform 2 outcomes

50. Results so far include, improved revenue collection, introduction of Budget Strategic Plan (BSP) for 2007, expansion of the use of the banking system, measures taken to strengthen public procurement system, streamlining expenditure processing, and other new initiatives such as development of a new budget classification and new chart of accounts, the piloting of program budgeting in 2007, establishment of decentralized Internal Audit Units in line ministries, specification of a new ICT based Financial Management Information System (FMIS) as well as extensive capacity development including the introduction of the Merit Based Pay Initiative (MBPI) to address motivational issues.

51. Revenue Administration Framework has been gradually progressed. Revenue outturn against the approved budget was 114.7% and 105.4% in 2005 and 2006 respectively. Tax revenue increased by 20.4% in 2005 and 20.2% in 2006. Whereas non-tax revenues increased by 6.6% in 2005 and 9.3% in 2006. The steady increase in revenue is mainly due to favorable macroeconomic condition, efforts and strong collection under the existing tax system and new measures. The new measures include the implementation of ASYCUDA project and the preparations for risk management and draft on custom law, the government order on non-tax revenue and draft on casino law, sub-decree on the Provision of State Property Management, sub-decree on the amendment of sub-decree No. 73 on the modification of the rates of tariffs, specific taxes on certain merchandises and VAT on petroleum. These measures will further strengthening the revenue collection.

52. The BSP has been developed and introduced during FY2007 budget preparation, this required the inclusion of a capital budget encompassing national and development partner financed capital expenditures including ongoing projects. A new budget Cycle and Calendar have also been introduced providing more time for preparation of the macro economic framework and discussion between MEF, Line Ministries and other stakeholders.

53. Good progress has been made in cash management including government bank account consolidation and Treasury Single Account (TSA) operation, improve treasury payments system, develop cash plan, and arrears management. Hundred of unauthorized government accounts have been closed and strategic action plan to further reconcile and close the remaining unauthorized government accounts is underway. Computerize accounting system of the new chart of accounts has been put in place and strategic action plan for improving the TSA operation is underway including the expansion of banking use in both central and provincial transactions. Budget Management Committee (BMC) has been established to oversee and monitor budget implementation especially cash management with the assistance of Cash Management Unit (CMU). However, strategic action plan is being developed to further improve and expand roles and operation of BMC and CMU.

54. Reform of the public procurement system has been accelerated by MEF. To fill the gaps in the 1995 procurement sub-decree and the 1998 Implementing Rules and Regulations (IRR), and to update them in line with good public procurement practices, an amended sub-decree and IRRs were prepared. The new sub-decree, adopted by the Prime Minister on 18 October 2006, sets out the broad principles and parameters for the public procurement system, providing an improved framework for implementation of public procurement. In January 2007, the new internal rules and regulations (IRRs) including standard bidding documents were adopted to support implementation of the new sub-decree. The new IRRs provide detailed procurement procedures and greater clarity of roles and responsibilities in the management of the procurement function for further increasing economy, efficiency, and transparency.

55. Concerted capacity development efforts are now needed to strengthen the capacity of the MEF (Department of Public Procurement), line ministries, and provinces/municipalities in implementing the new procurement system. This will include training programs on the new procurement sub-decree, IRRs, standard procurement documents, and good public procurement practices.

56. Significant progress has been made to streamline budget execution procedures. A MEF circular, an inter-ministerial circular, and a manual were issued and took effect as of January 1, 2007. For non-procurement items the commitment and payments authorization process has been combined. For procurement items, commitment authority is extended for six months based on the procurement plan. The reform also allows financial controllers in line ministries to authorize salary payments (thus eliminating the previous thresholds for authorization). A cash advance system, up to 30% of total budget for non-procurement items and once per quarter (up to 25% of total budget) for procurement items, now applies to the seven priority line ministries implementing program budget pilots. Special execution arrangements are also being made for MOEYS and MOH. Early results in 2007 indicated that the processing time for commitment and payment approval for non-procurement items reduced from 23 days to 3 days or by 85%.

57. Further efforts in capacity strengthening and functional analysis of roles and responsibilities are needed to improve cash management. Continued consolidation of government accounts and successful application of the treasury single account would further facilitate optimal utilization of available resources and minimize idle cash balances. Establishing arrears database and arrears payment procedures would help achieve sustainable arrears elimination.

58. Based on Priority Action Program (PAP), MEF has introduced program budgeting pilot with seven ministries (MOEY&S, MOH, MOAFF, MRD, MLM, MOJ, and MOWA) as of January 2007. Although this introduction of program budgeting is only the first step of improving PAP toward program structure but it is important to start building budget policy linkages and improving budget preparation process. Program budgeting has been regarded as essential for introducing a stronger focus on results in public service provision, and has stressed the importance of monitoring performance indicators in the context of program budgets.

59. Though successfully introduced, the new chart of accounts has posed some initial implementation challenges; and therefore, budget executing and reporting capacity of spending ministries needs further strengthening. Similarly, improving implementation capacity of the seven priority ministries would ensure successful piloting and possible expansion of the program-based budgets.

60. In terms of preparation for Platform 2, good progress has also been made on internal audit and FMIS. An Internal Audit Department has been created within MEF and 19 decentralized Internal Audit Units have been formally established in Line Ministries. At present only 6 of these are operational in terms of staffing and training. The acquisition process for the proposed FMIS, required to achieve Platform 2 outcomes has moved forward and currently first stage bids are being evaluated. A new FMIS Unit has been established in the MEF and related project structures to facilitate implementation are in the process of being established. Further substantial work will need to take place during 2007 to finalize the acquisition process and create the RCG client side organization and capacity to work in partnership with the chosen contractor to deploy the FMIS in MEF, provincial treasuries and line ministries.

Target: Improve livelihoods of the rural poor, reduce poverty in particular in rural areas, and enhance food security and nutrition based on priorities outlined in the National Strategic Development Plan for 2006-2010.

Actions needed:

Develop a medium term strategy for agriculture and water building on the NSDP and existing MAFF and MOWRAM strategy documents.
.Establish a mechanism and periodically disseminate information on economic land concessions in accordance with the notice issued by the Prime Minister on 30 June 2005.
.Take appropriate action to reflect the priorities of the Fisheries sector to improve the livelihoods of rural communities in commune, district and provincial development plans as well as donor funding levels.
.To improve the livelihoods of the rural poor, 500 eligible households are settled on social land concessions with livelihood support and at least 10,000 hectares of suitable land confirmed as available for social land concessions.
Develop a social safety net policy to ensure food security and nutrition for the most vulnerable groups of the population.
Develop a nutrition surveillance system to monitor food security and nutrition.

61. A draft Agriculture and Water Strategy (2006-2010) has been prepared and is being submitted for approval. Building on the NSDP and existing Ministry of Agriculture, Forestry and Fisheries (MAFF) and Ministry of Water Resources and Meteorology (MOWRM) strategies, the Strategy has five main components:

Institutional Capacity Building and Management and Support Program for Agriculture and Water Resources;
Food Security Support Program (with input from the Food Security and Nutrition TWG);
Agricultural and Agri-business (value chain) Support Program;
Water Resources, Irrigation and Land Management Program; and
Agricultural and Water Research and Land Management Program.

62. Expanded TOR for design and costing of each of these programs are being developed (expected to be completed in early 2007). Task Management Groups are being defined (for ministerial approval), and a number of interested donors have already committed in principle to fund the program designs process. Donor support for the overall indicative Agriculture and Water Strategy implementation will be further informed and progressed as soon as costing is clarified as part of the current design phase. This is anticipated by mid 2007.

63. Information on the economic land concessions is available at the MAFF website (www.maff.gov.kh/elc), which has been updated every six months, in accordance with the notice issued by Samdech Prime Minister on 30 June 2005.

64. Participation of the private sector in development is one of the priorities of RGC. The government considers the private sector as an engine for growth. 2005 and 2006 have seen the increase in the number of Economic Land Concessions (ELC) awarded to the private sector in an overall investment climate in Cambodia that has gradually improved. The increase in the number of ELCs can be attributed to RGC's reform efforts including improving public services delivery to encourage private sector participation. Following the adoption of the Sub Decree on ELC, mechanisms have been made to ensure that stipulations and procedures set forth in the Sub Decree are followed in granting ELCs, taking into account the socio-economic and environmental impacts of ELCs. This has been done through an inter-ministerial ELC Technical Secretariat led by MAFF in close collaboration with other ministries/agencies. The current and future ELCs are granted only on land that has worn out with no prospect for tree plantation or forest development. Private land and indigenous community's land are strictly prohibited for ELCs.

65. Measures have been taken to reflect the priorities of the Fisheries sector to improve the livelihoods of rural communities at all levels. A letter has been sent by the Minister of Agriculture, Forestry and Fisheries on 17 July 2006 to relevant ministries, provincial governors, and the donor community requesting their assistance in achieving the Joint Monitoring Indicator. This is following Samdech Prime Minister's speech on 29 March 2006 at the MAFF Conference, “Taking Stock of 2005-2006 Performance and Setting Directions for 2006-2007”, which referred to the need for “All ministries, institutions, municipality and provincial departments in cooperation with the development partners must think of the priority to include the fishery sector to its development plan”.

66. The Fisheries Administration (FiA) launched an official workshop on Fisheries Law dissemination in Phnom Penh, 25-27 October, to government ministries, NGOs and donors. The Proclamation on the Functioning of the Fisheries Administration has been discussed and approved by MAFF. Meanwhile the draft Proclamation on Community Fisheries Guideline has been reviewed by MAFF. The endorsement of the Proclamation will be made once the amendment of the CF Sub-decree on Fisheries Management is adopted to comply with the new Fisheries Law.

67. Other measures have included flooded forest and marine conservation. The FiA have organized meetings to discuss appropriate measures to tackle the flooded forest cutting and land clearing within fishing lots and community fisheries. The FiA has also prepared the maps for demarcating the boundaries of flooded forest around Tonle Sap Great Lake. Funds for demarcation of the boundaries of the fishing lots are available. A 10-Year Action Plan of Coral Reef and Sea-Grass has been adopted by the MAFF and Fisheries and is awaiting publication.

68. An Institutional Review has also been conducted. The FiA reviewed the Fisheries Strategic Framework for Development Cooperation Management and is awaiting the Fisheries TWG approval. To comply with the Medium Term Expenditure Framework (MTEF) templates, the FiA is preparing the fisheries MTEF template and it is incorporated into FiA Action Plan 2007. To understand the roles for sub-national fisheries institutions, a study to supplement the Department of Fisheries' Institutional Review (released in February 2006) was reviewed by the FiA and is awaiting publication. The study reviews the roles of the local fisheries administration in terms of service provision to the wider fisheries sector at provincial, district and commune level.

69. The FiA has secured funding to implement the Annual FiA Action Plan from DFID/DANIDA as the entry point of adopting sector wide approach through harmonizing donor support. In addition to this, the Gender Mainstreaming Policy and Strategy in the fisheries sector has been drafted in pursuit of MAFF’s Gender Mainstreaming Policy and Strategy in the Agriculture Sector. The policy paper will be endorsed and used in fisheries by the end of 2007. Also, the FiA has developed the discussion paper on M&E in the Fisheries Sector and discussed in the TWGF. As the result, the establishment M&E Unit has been agreed by the FiA, to enhance the effectiveness against sector performance.

70. The number of established community fisheries is 509 and the community fish refuges are 62. FiA has undertaken substantial roles to strengthen the capacity of communities for sustainable management of the fisheries resources.

71. The target of having 500 eligible households settled on social land concessions with livelihood support was agreed in the context of implementing the two pilots on social land concession in the Memot district, Kampong Cham province, and the Kratie district, Kratie province within the project “Land Allocation for Social and Economic Development - LASED”. The results are as follows:

In Chorm Kravien Commune, Memot district, Kampong Cham province, 990 hectares are in the process of being registered as state private land. Eventually up to 150 families will be settled there.
In Chan Krang commune and Sambok commune, Kratie district, Kratie province, 4,400 hectares were registered as private state land in 2007. This would be space for more than 500 families.

72. At the same time, MLMUPC has issued other legal instruments supporting this social land concession program, namely a Joint Prakas No. 507 (between MLMUPC and MAFF), 26 December 26 2006, on mechanism for agricultural dissemination to farmers under the social land concession framework and drafted a Decision on the application for social land concession (form of social land concession contract, and other needed forms needed), as annexes to the Prakas No. 200, 19 November 19 2003, on the guideline for implementing Sub-decree on Social Land Concession.

73. RGC pays attention to landless families by making available at least 10,000 hectares of land for implementing the policy of land distribution in 2007. The following measures have been undertaken:

Parts of the 200,000 hectares of forest land that have been confiscated from by RGC have been reserved for social land concession (pending the enter into force of a Circular, on measures against illegal state land holding, to implement article 18 of the 2001 Land Law).
Parts of land available after cancellation of ELCs have been reserved to be used in social land concession program, in the form of partnership between large-scale agro-industry and small-scale agriculture farming. The sites of those lands are being studied by the MLMUPC and MAFF.

74. Limited progress has been made in developing a social safety net policy. The natural Government institution to respond to crises of food security and nutrition in the country is the National Committee for Disaster Management (NCDM). Various consultations with NCDM were held. A funding proposal to assist NCDM to develop and practice the mechanisms that would be used should a large scale intervention be required was prepared. Donor funding has not been secured. During 2006, NCDM was put in charge of the Government’s response to a possible outbreak of pandemic influenza in addition to natural disasters response. Interventions would go well beyond ensuring food security and nutrition. In view of the increasing risk of pandemic influenza, the TWG would advocate that the emergency response and capacity of NCDM be improved. However, this would go beyond the scope of the TWG. In view of the importance of the issue, it was suggested by the Food Security and Nutrition (FSN) TWG that the JMI should possibly be rephrased and be put under the responsibility of another TWG.

75. Limited progress has also been experienced in developing a Nutrition Surveillance System (NSS). A draft proposal has been developed and discussed in the FSN TWG meeting on 3 August 2006. This was followed by various meetings of a NSS task force. A workshop with key stakeholders was held in November. The number and needs of the stakeholders in developing a NSS to monitor FSN are vast and diverse. Coming up with a comprehensive NSS will be very costly. It is suggested by the FSN TWG that the development of a NSS to monitor FSN should no longer be a JMI. Strengthening of existing mechanisms through NIS and others and efforts to further streamline food security and nutrition related monitoring systems should be supported.

Target: Further rehabilitation and development of infrastructure to achieve sustainable socio-economic development and poverty reduction goals

Actions needed:

Reach agreement on a clear and transparent mechanism for budget allocation and disbursement and monitoring for repair and maintenance of roads.
Submit Road Law to COM for approval.
Submit Telecom Law to COM for approval.
Submit Water Supply and Sanitation Law (WSSL) to COM for approval. (partially met)
Prepare draft of Cambodia National Wood Energy Statistics & Wood Energy Policy. (partially met)

76. Since September 2006, an Inter-ministerial committee of the Ministry of Public Works and Transport (MPWT) and the Ministry of Economy and Finance (MEF) has been established to facilitate road maintenance issues. As a result, road maintenance has been obviously and gradually improved. Other targets of the Joint Monitoring Indicators have already been met or work is in progress to achieve the agreed targets. This included the approval by the Council of Ministers (COM) of the draft Telecom Law and is currently at the National Assembly; the completion of the draft Road Law for submission to COM. The draft Water Supply and Sanitation Law was submitted to COM in March 2005, and following review by OBSESS, COM requested MIME to make revision on 17 points in the draft. The draft now is being revised. A working group was established in February 2006 to begin work on the Cambodia National Wood Energy Statistics & Wood Energy Policy. It is expected that the draft policy will be finalized and submitted to COM by the second quarter of 2007.

Target: Foster the development of a socially cohesive, educationally advanced, and culturally vibrant society that is free of illiteracy and disease and follow the RGC's Strategic Plan–Neary Rattanak (women are precious gems)

Actions needed:

Increase the proportion of deliveries attended by skilled health personnel. (met)
Increase the net enrolment in primary school (total, and by sex). (not met)
Increase the survival rate from grades 1 to 6. (not met)
Implement the National Action Plan to combat violence against women. (partially met)
Increase coverage of effective drug & HIV/AIDS prevention, comprehensive care and support, and effective mitigations interventions. (met)

77. Progress has been made in the health related JMI. The proportion of deliveries attended by skilled health personnel has increased (as agreed in the JMI) from 31.8% in 2000 to 43.8% in 2005. The progress indicated by these figures is the outcome of the comparison between the Cambodia Demographic Health Surveys in 2000 and 2005, representing population based data. These numbers represent deliveries assisted by both public and private health sector service providers. The Ministry of Health Information System (HIS) cannot yet provide this combined information on a regular basis. Identifying proxy indicators in the HIS will enable reporting on progress for the JMI on a regular basis.

78. Net enrollment rates (NER) have declined between school year 2004/05 and 2005/06, from 91.9% to 91.3%. While the primary NER slightly decreased at the national level between 2004/05 and 2005/06, actually in 18 out of 24 provinces NER show slight to medium increases in the same period. In other words, NER decreased only in six provinces. The female NER went down from 90.7% to 89.7%, although the current rates are still an improvement compared to the NER for 2003/04, which was 90.1% and 88.6% in total and for girls respectively. Besides, NER for boys has increased from 92.1% to 93%, and the gross enrollment rate in primary school increased from 119.7% to 124% indicating that more children have access to primary schooling. Survival rate from grade 1-6 also declined from 52.6% to 48% between school year 2004/05 and 2005/06. The national level decrease seems largely attributable to large reductions in several provinces (e.g., Kampong Speu, Kep, Kratie, Sihanoukville). Similarly for girls, it decreased from 51.7% to 47.5%. Recommendations could be therefore made that concerted interventions are essential in specific areas in order to increase the overall NER and survival rates.

79. The key reason for this is the increase in drop-out rates over the last year. This highlights that this issue will receive the Ministry’s highest consideration at the next policy review. The policy review will look into existing studies and empirical data in Cambodia to identify strategies that will prevent drop-out and minimize repetition, both of which will improve cohort survival rate from grades 1-6. Possible key intervention strategies include: implementing early child development and school readiness program, completing incomplete schools, Abolishing informal payments, promoting right-age entry in grade 1, introducing of multi-grade teaching and flexible teaching/learning program in remote and ethnic minority areas, expansion of scholarship program for those poor students, in particular girls, at grade 5 and 6, timely distribution of textbooks, providing schools latrines and water facilities and expanding access to lower secondary schools. The Council of Ministers has adopted the draft Education Law on 9 March 2007 and submitted to the National Assembly for adoption.

80. The National Prevention Plan against Domestic Violence has been completed and is currently in the process of consultation and will be finalized in 2007.

81. Significant measures have been taken to increase coverage of effective drug and HIV/AIDS prevention, care and mitigation. These have included:

A national framework for Orphans and Vulnerable Children (OVC) is currently being developed and expected to be finalized by the first quarter of 2007.
A decentralization guideline for multi-sectoral response to HIV/AIDS and impact mitigation is being drafted.
Cambodia is aiming at the GFATM round 7 to further expand prevention, care and support for people living with HIV/AIDS and for impact mitigation effort.

Target: Ensure sustainable use of the natural resources taking into consideration the issues of livelihood and needs of the rural communities

Actions needed:

Develop and implement National Forest Program, by initial focus on:

Strengthening the enforcement of the Forestry Law, especially combating forest land clearing and encroachment.
Rationalizing and reclassify national forest lands to ensure sustainable use of these resources by further forest demarcation/demarcation of protected areas.
Completing Forest Cover Assessment 2005/2006.
Implementing Community Forestry program and develop Community Forestry
Implementing capacity building for forestry sector program/tree planting for socio-economic purposes.
Independent Monitoring in the forestry sector (Subject to donor grant funding).

Strengthen transparency by disseminating all relevant sector information on the activities of government agencies, including information on mining concession and military development zones, as well as donors and NGOs by periodically postings on TWG-F&E website.
Develop and implement a Land Management Policy and associated legal framework to improve sustainable utilization of land resources.
Strengthen and expand the scope of land registration by:

Issuing 300,000 land title certificates in 2006.
Increasing the percentage of cases successfully resolved by the cadastral commission: 450 cases successfully resolved out of 800 cases handled in 2006.[GTZ5]
Revision of cadastral service fee structure, especially for sporadic and subsequent registration, public dissemination of the new fee structure and stamp duty for subsequent registration.
State land mapping conducted in five districts and results placed in a publicly accessible state land data-base.

82. Progress has been made in achieving targets of the JMI in forestry sector except the independent monitoring in the forestry sector due to the lack of fund. Progress so far includes:

Enforcement of Forestry Law. As a result, 207,960 hectares of forest land are being taken back from offenders, including 9,324 hectares that are flood forest. 899 cases reported by the Forestry Administration's forest crime monitoring unit in 2006.
Forest demarcation. Forest demarcation is ongoing in 15 Forestry Administration cantonments. Maps of 16 Protected Areas (National Park and Wildlife Sanctuary) are being produced and work on-the-ground boundary demarcation by putting landmark is being carried out. Cambodia's forest estate to be demarcated in pilot provinces (320,000 ha and 600 km of boundary demarcated) and the Forestry Administration Guidelines on forest demarcation developed and tested in 2007.
Forest cover assessment. Work on the interpretation and classification of forest types has been completed. GRAS A/S Company is verifying the above data assessment, and this will be completed in May 2007.
Community Forestry Program. The National Community Forestry Guidelines approved, a National Coordination Committee established and support for up-scaling community forestry agreed. Some small project proposals have been developed and are looking for funding.
Capacity building and tree planting. Capacity building is going on, and tree planning has been conducted on 3,500 hectares of land.
Task Force on National Program established and a National Coordination to be recruited (position advertised).
TWG-F&E website functional and regularly updated.

83. Measures have been taken to obtain and disseminate information on mining concessions and military development zones. These have included:

The Ministry of Industry, Mines and Energy has disclosed information of mining areas.
The Ministry of National Defense has sent a representative to be member of the Forestry and Environment TWG and will disclose the military development zones in the TWG meeting.
The Ministry of Environment has been requested to share GIS data with stakeholders.
The Ministry of Agriculture, Forestry and Fisheries has disclosed information on economic land concessions.

84. Measures have been taken to develop and implement a Land Management Policy and associated legal framework to improve sustainable utilization of land resources. The Sub-decree on State Land Management has been prepared and now is in force as well as other related regulations for the implementation of this sub-decree.

85. Workshops were held to disseminate information on the process of identification, mapping and classification of state land and other related legal frameworks, for government officials involved: provincial/municipal governors, line ministries/agencies, provincial/municipal cabinet officers, and directors and deputy directors of provincial/municipal Departments of Land Management, Urban Planning, Construction and Cadastral. Besides, at the provincial level, dissemination workshops were organized for officials from related provincial departments, district authorities, district offices of Land Management and Cadastral as well as members of Commune Councils from 13 provinces (Kampong Cham, Takeo, Banteay Meanchey, Battambang, Kandal, Preah Vihear, Kampot, Kampong Thom, Prey Veng, Pursat, Rattanakiri, Mondulkiri, and the Kep municipality).

86. On technical aspects, MLMUPC has cooperated with all stakeholders to accelerate:

District/Khan strategic development plan in 15 districts/khans: Kampong Trach district, Pohnea Krek district, Stuong district, Phnom Prek district, Khan Mean Chey, Peam Ror district, Chantrea district, Snoul district, Steng Treng district, Koh Thom district, Keo Seima district, Chorm Ka’san district, O’Chrow district, and Boreibow district.
Urban Land Use Planning in 13 districts: Neakleurng, Baweit, Kampong Trach, Kratie, Chlong, Stengtreng, Anlong Veng, Poipet, Nimith, Mondul Seima, Ch’ba Morn, Samrong Tong, and Khan Steng Haw.
Participatory land use planning in the framework of natural resource management project at the community level and the Seila Program in 244 villages of 45 communes including preliminary land use maps in 345 communes.
Training course on the sketching of land use map in 56 communes.

87. On land registration, dispute resolution, fees, land valuation and state land mapping, progress can be highlighted as follows:

Issuing of at least 300.000 land titles. In 2006, some 318,255 land titles have been created. Among these, 282,276 titles have been handed out to the people while other remaining 35,979 titles that have been already signed and are in the delivery process.
Increasing land dispute resolution by the Cadastral Commission of at least 450 cases out of 800 cases in 2006. 291 cases of land dispute were completely solved, or 64.67% of the targeted cases, because it depends on the parties to the conflicts whether they need dispute resolution. Since its establishment, the total number of cases resolved by the Cadastral Commission, stood at 1,246, involving 6,641 families and 2,395 hectares of land. Together with the cases that have been solved under the process of systematic land registration, the total number of cases of land disputes that have been solved is 2,979, involving more than 10,000 families.
Revising cadastral service fee structure. The following regulations have been issued and dissemination held: (i) Guideline on the management of cadastral fee collection; (ii) Decision No. 51, 21 December 2006, on the provision of cadastral services; (iii) Decision No. 42, 10 October 2006, on the establishment of mechanism to receive complaints and solve disputes for the Land Management and Administration Project (LMAP); and (iv) Decision No. 43, 23 October 2006, on the code of ethics for officials working under LMAP project.
In order to assure the transparency in relation to the land transaction taxes, the Council of Land Policy is in the process of drafting policy on land evaluation (an inter-ministerial working group has been established).
State land mapping was in progress in 5 districts.

Target: Create an enabling environment for the development of private sector

Actions needed:

The draft Law on Concessions submitted to the National Assembly. All new Private Participation in Infrastructure (PPI) projects abide by the principles of transparency and accountability specified in the draft Law.
To strengthen Trade Facilitation:

Adopt and use a Single Administrative Document (SAD) under the Asycuda system.
Adopt and publish the inter-agency administrative agreements among all the relevant agencies on procedures and guidelines for the inspection and clearance of imported and exported goods.
Introduce a pilot Single Window (SW) for trade facilitation at the Port Authority of Sihanoukville (PAS).
Draft and adopt a sub-decree on trade facilitation through a risk management approach to inspections and clearance of imports and exports of goods, specifying the Customs and Excise Department (CED) as the lead agency for all types of inspections (documentary, physical, and electronic).

Prepare and adopt regulations (Prakas) clarifying registration procedures and documentary requirements, specifying procedures for amending Articles of Incorporation, clarifying the minimum requirements for Articles of Incorporation based on the Law on Commercial Enterprises, specifying requirements and procedures for annual declarations, and establishing procedures for decentralization of business registration.
Streamline and simplify all license requirements impacting SMEs.
Establish and make fully operational the "one-stop service" (OSS) in all Special Economic Zones (SEZs) consistent with the trade facilitation reforms to reduce both the time for, and cost of, trade clearance procedures, including the adoption of the SAD and the adoption of a risk management approach to inspections and clearance of goods.

88. Significant progress has been made to achieve the targets of the Joint Monitoring Indicators on private sector development. The draft Law on Concession has been prepared and submitted to the National Assembly. The Single Administrative Document (SAD) and explanatory notes have been approved by the steering committee. A Sub Decree on trade facilitation through a risk management approach to inspections and clearance of imports and exports of goods was adopted as Sub Decree 21 dated 1 March 2006. The establishment of an inter-agency administrative agreements and standard operation procedures among all the relevant agencies on procedures and guidelines for the inspection and clearance of imported and exported goods is underway following the selection of a qualified consultancy firm. However, delay has been experienced on a pilot Single Window (SW) for trade facilitation at the Port Authority of Sihanoukville (PAS). The Government has decided to implement the SW at a later stage, following the ASEAN single Window calendar, by 2012. [MSOffice6]

89. Measures have been taken to adopt regulations (Prakas) clarifying registration procedures and documentary requirements, specifying procedures for amending Articles of Incorporation, clarifying the minimum requirements for Articles of Incorporation based on the Law on Commercial Enterprises, specifying requirements and procedures for annual declarations, and establishing procedures for decentralization of business registration. These have included:

Announcement No. 2106 MOC/LAD dated September 08, 2006 regarding the Implementation of the Plan of Reform of company incorporation and decentralization of business registration.
Prakas No. 120 MOC/SM2006 dated June 20, 2006, specifying procedures on the Amendment of Articles of Incorporation.
Announcement No. 1415 MOC/SM2006 dated June 20, 2006, clarifying the 13 important requirements for Articles of Incorporation.
Prakas No. 149 MOC/ SM 2006 dated July 05, 2006, specifying requirements and procedures for annual declarations.

90. Progress has been made on Small and Medium Enterprises (SME). Under the SME Development Framework which was approved by the Royal Government on 29 July 2005, the SME Sub-committee has authorized the SME Secretariat to take the lead in the design of a Licensing Review Mechanism. On 7 June 2006, the SME Sub-committee approved a plan for establishment of a Licensing Review Mechanism along with a Manual for carrying out licensing reviews and was adopted by the Royal Government on 27 Oct 2006. The generic term of license is used in this plan to cover all regulatory instruments that a business needs in order to operate its activity. License Review Manual is a tool providing the criteria and methodology for reviewing licenses. The SME Sub-committee has also approved a recourse mechanism for businesses to file grievances regarding disputes resulting from licensing and inspection and to have decision reviewed.

91. Regarding the one stop service (OSS) in the Special Economic Zones (SEZs), an OSS has been operational at the Manhattan SEZ in Baveth, Svayrieng province with five agencies represented in a signle room (CDC, CED, Camcontrol, MOC and Ministry of Labor). An OSS will be established whenever a new SEZ becomes operational.

Annex

Joint Monitoring Indicators for 8th CG Meeting (2-3 March 2006)
Updated as of 12 February 2007

Target	Action Needed	Consolidated Status
1. NSDP monitored annually	i. Develop and implement a framework to monitor the implementation of the NSDP and prepare an annual progress review of NSDP implementation.	A framework for monitoring NSDP implementation has been prepared and approved by RGC. It outlines the monitoring of NSDP by: Preparing an annual progress report on the implementation of NSDP. Carrying out a comprehensive review, towards the end of 2009, of progress made in achieving the targeted development results of NSDP, e.g. reduction in the overall poverty rate from the current levels (2005 assessment) at the national and sub-national levels and other Cambodia MDGs; and identifying opportunities and constraints to guide and serve as important inputs in formulating NSDP 2011-2015. NSDP-APR 2006: MOP prepared a concept paper on how to approach the work of preparation of APR as early as August last year. This concept paper was considered and approved by a high level meeting of SNEC, MOP, MEF and CRDB on 31 August 2006. This concept paper was also shared with the TWG-PPR in October 2006. In mid November 2006, MOP wrote to all the RGC ministries and agencies to provide necessary inputs to prepare the APR along with detailed guidelines for this purpose. MOP received such inputs by the end of December 2006. Led and guided by HE Tuon Thavrak, Director-General, the staff of NSDP Secretariat at MOP has now completed preparation of the first draft along the lines envisaged in the concept paper. The first draft will be sent in the course of this week to all RGC ministries and agencies and external development partners for their consideration, comments, corrections and/or additional inputs, if any. We would request all to give this work highest priority so that we could get your inputs back to us by 28 February 2007. Based on such further inputs we will get a final draft ready for submission to the Council of Ministers by 31 March for consideration and approval.

2. Build partnerships to enhance aid effectiveness and mutual accountability.	i. Implement the RGC’s Strategic Framework for Development Cooperation Management.	The SFDCM, adopted by RGC in January 2006, is being implemented.
	ii. Prepare progress report on a six month basis the implementation of RGC's Action Plan on Harmonization, Alignment and Results.	TWGs have been asked to report progress in the implementation of the H-A-R Action Plan three times yearly; reported progress was presented to the GDCC meetings.
	iii. Review and strengthen aid coordination mechanisms including CG, GDCC and TWGs.	Review of GDCC-TWG mechanism conducted during April-July 2006. Consultations on the results second half of 2006. Based on Review findings, Guideline on the Role and Functioning of Technical Working Groups prepared and adopted by RGC on 23 Feb 2007.

3. Combat corruption	Finalize and approve Anti-corruption Law, based on best international practices, and:	Pending the adoption of the Penal Code by NA to ensure consistency.
	a. Prepare an implementation plan to enforce and manage the implementation of the Anti-corruption Law.
	b. Disseminate information on reported cases on corruption and conviction on semi-annual basis.

4. Establish a well functioning, transparent and accountable legal and judicial system that protects individual rights as defined in the Constitution.	i. Develop a clear policy framework on access to information.	Process is being studied by MONASRI.
	ii. Complete the drafting and approval of the remaining fundamental Laws (Penal Procedure Code, Penal Code, Civil Code, Law on the Statue of the Judges, Law on Court organization and Functioning). iii. Establish timeframes to complete the remaining Laws and regulations needed to meet WTO requirements and carry out the tasks within the established time frames.	Code of Civil Procedures promulgated on 6 July 2006. Civil Code sent to NA on 12 January 2007. Code of Penal Procedures being reviewed by legislative commission of NA. The draft Penal Code being reviewed by an inter-ministerial meeting before submission to COM. Law on the Organization and Functioning of the Courts is being finalized by MOJ. MOC is drafting a law to establish the Commercial Tribunal. Law on the Statute of the Judge, drafted by the Supreme Council of the Magistracy and sent to MOJ on 28 August 2006, is being reviewed by MOJ. Draft Law on Secured Transaction, expected to be passed in mid 2007. Law on Commercial Arbitration, promulgated on 5 May 2006. Law on Commercial Enterprises, promulgated in June 2005. Sub Decree to establish a new Inter-Ministerial Committee to implement the WTO commitments adopted on 7 March 2007. Sub Decree on the implementation of the Law concerning Marks, Trade Names and the Act of Unfair Competition adopted in July 2006. Sub Decree on Special Economic Zones adopted in December 2005.
	iv. Establish time frames to complete the drafting, review and approval of various new Laws and regulations and amendments to existing Laws and regulations and ensure timely completion of the review, redrafting, and approval processes within the established time frames.	MoNASRI has prepared its priority Action Plan which included a draft Law on Inspection and Access to Information.
	v. While the priority setting process is being put in place, priority will be given to:
	a. Complete the Draft Law Against Trafficking in Person and Sexual Exploitation and submit to COM.	Draft Law on Suppression of Human Trafficking and Sexual Exploitation being adjusted to ensure full compliance with the Palermo Protocol and the Cambodian Penal Code.
	b. Complete and adopt a National Plan to enforce the Law on Domestic Violence and Protection of the victims.	The National Prevention Plan completed; to be finalized in 2007.
	c. Complete preparation of regulations to enforce State Land Management Sub-Decree.	Prakas No. 42 (10 March 2006) on State Land Identification and Mapping of State Land and State Land Classification. Decision No. 52 (25 December 2006) on Criteria for State Land Classification. Drafts of Joint Prakas (between MOI and MLMUPC) on State Private Land Use Planning; and Norms on identifying technical aspects of state land mapping and database.
	d. Elaborate and Implement Article 18 of the Land Law.	Circular on measures against illegal State Land Holding approved by COM on 9 February 2007.
	e. Adopt RGC's strategy and regulations for the indigenous people	Preliminary draft completed. Consultation workshops held (most recently in February 2007) and results worked on by the General Secretariat of the Council for Land Policy. Draft policy to incorporate comments and to be submitted to COM.

5. Further develop the Public Administration to serve people better and to become an effective development partner.	i. Implement the approved "Joint Government-Donor Strategy for Phasing Out Salary Supplementation Practices in Cambodia" by: a) implementing approved sectoral action plans; and b) establishing Priority Mission Groups (PMGs), and PMG/Merit Based Pay Initiatives (PMG/MBPIs) in MEF, MOH, and at least one other ministry/agency.	Answered to questionnaire on salary supplement practices received by CAR. Requested means to capture and analyze data not yet secured. Further work to implement the strategy awaiting this initial step. PFM MBPI commenced in late 2005. Work on MOH MBPI underway. MBPI in MOC under discussion.
	ii. Improve pay and employment conditions in the civil service by developing and implementing: a) a medium term strategy and action plan to enhance remuneration; and b) a redeployment policy and action plan	Two studies to inform decision on remuneration and deployment policies completed and now being circulated. Developing concept papers on medium term remuneration policy and employment policy proceeding.
	iii. Design and implement an HRM policy and action plan to improve merit and performance management by introducing an HRM Guide and further developing the Human Resource Management Information System (HRMIS) for the Civil Service.	Concept papers on HRM and HRD developed and circulated within PAR TWG in October 2006; yet no comments provided since. Inter-ministerial consultations to be held shortly on HRM policy. Funding for HRMIS secured.
	iv. Enhance service delivery though developing a One Window Offices (OWOs) policy, legal framework and implementation plan, including establishment of at least 5 OWOs across Cambodia.	Policy on service delivery approved by COM on 5 May 2006. Draft Policy on One Window Services prepared.

6. The RGC’s Strategic Framework for Decentralization and De- concentration (D&D) reforms developed, and initial preparation made for full implementation.	i. Preparation, Consultation and submission for approval by the National Assembly a set of the organic Laws on democratic development at Sub-national levels. ii. D&D and organic law implementation framework/outline prepared (preliminary provisional pending the enactment-approval by the Nat. Assembly of the organic laws). iii. Review and formulate D&D support program for reform and Investment for Local Development.	First draft Organic Law completed by MOI in 2006 and under consultations. Implementation Framework prepared and adopted by NCDD, and the preparatory phase component circulated. A national program on sub national democratic development to be completed by 2007. Project to Support Democratic Development through D&D (PSDD) approved by RGC and development partners in January 2007.

7. The RGC’s Public Financial Management reform program implemented.	i. Continue implementing the RGC's PFM Reform Program (complete Stage1/Platform 1 and begin implementing the action plan for Stage 2) and monitor impact through the agreed PFM Performance Management Framework/Indicators.	Significant progress on the work to complete stage 1/Platform 1: strengthening procurement system, streamlining budget processing, introduction of new chart of accounts and budget classification, and program budgeting in priority ministries.

8. Improve livelihoods of the rural poor, reduce poverty in particular in rural areas, and enhance food security and nutrition based on priorities outlined in the National Strategic Development Plan for 2006- 2010.	i. Develop a medium term strategy for agriculture and water building on the NSDP and existing MAFF and MOWRAM strategy documents. ii. Establish a mechanism and periodically disseminate information on economic land concessions in accordance with the notice issued by the Prime Minister on 30 June 2005	The draft Agriculture and Water Strategy (2006-2010) prepared and submitted for approval. Information on ELC available at the MAFF website.
	iii. Take appropriate action to reflect the priorities of the Fisheries sector to improve the livelihoods of rural communities in commune, district and provincial development plans as well as donor funding levels.	The Fisheries Law has been disseminated and training conducted for relevant fisheries stakeholders. Proclamation on the Functioning of the Fisheries Administration has been approved by MAFF. Fisheries Forum and Fisheries Forum on Women in the Fisheries Sector were conducted. DOF's institutional review including a review on the roles of local fisheries administration in service provision has been conducted. Support from Samdech Prime Minister on the priorities in the fisheries sector has been sought. In addition, a request from the Minister of MAFF has been sent to relevant ministries, governors and donor community for their assistance in support FiA in achieving the JMI. Funding has been secured through an MOU with DANIDA for the FiA and TWGF Action Plan. Protection and demarcation of flooded forest. Marine conservation: a 10 year Action Plan of Coral Reef and Sea-Grass has been adopted by MAFF. Community Fisheries (CF) and Community Fish Refuge: CF to date is 509 and established community fish refuges are 62.
	iv. To improve the livelihoods of the rural poor, 500 eligible households are settled on social land concessions with livelihood support and at least 10,000 hectares of suitable land confirmed as available for social land concessions.	Two pilots within the project LASED. MLMUPC, through an inter-ministerial working group, in the process of identifying 500 poor families for social land concession. Parts of forest land taken back from illegal holding reserved for social land concessions. Parts of lands from cancelled ELCs reserved for social land concessions.
	v. Develop a social safety net policy to ensure food security and nutrition for the most vulnerable groups of the population.	The Nation Committee for Disaster Management INCDM) natural Government institution to respond to crises of food security and nutrition in the country Various consultations with NCDM held. A funding proposal prepared to assist NCDM to develop and practice the mechanisms that would be used should a large scale intervention be required (donor funding has not been secured). During 2006, NCDM was put in charge of the Government’s response to a possible outbreak of pandemic influenza in addition to natural disasters response. Interventions would go well beyond ensuring food security and nutrition. In view of the increasing risk of pandemic influenza, the TWG would advocate that the emergency response and capacity of NCDM be improved. However, this would go beyond the scope of the TWG. In view of the importance of the issue, the JMI should possibly be rephrased and be put under the responsibility of another TWG.
	vi. Develop a nutrition surveillance system to monitor food security and nutrition.	A draft proposal has been developed and discussed in TWG-FSN Meeting in Aug 2006. This was followed by various meetings of a NSS task force. A workshop with key stakeholders was held in November. The number and needs of the stakeholders in developing a NSS to monitor FSN are vast and diverse. Coming up with a comprehensive NSS will be very costly. It is suggested that the development of a NSS to monitor FSN should no longer be a JMI. Strengthening of existing mechanisms through NIS and others and efforts to further streamline food security and nutrition related monitoring systems should be supported.

9. Further rehabilitation and development of infrastructure to achieve sustainable socio-economic development and poverty reduction goals.	i. Reach agreement on a clear and transparent mechanism for budget allocation and disbursement and monitoring for repair and maintenance of roads.	In September 2006, an Inter-ministerial committee of MPWT and MEF established to facilitate road maintenance issues.
	ii. Submit Road Law to COM for approval	Draft Road Law submitted to COM.
	iii. Submit Telecom Law to COM for approval	Draft Telecom Law currently at the NA.
	iv. Submit Water Supply and Sanitation Law (WSSL) to COM for approval	Draft WSSL submitted to COM in March 2005 and is being revised. Draft Law on Water Resources Management submitted to NA for adoption.
	v. Prepare draft of Cambodia National Wood Energy Statistics & Wood Energy Policy	A working group established in February 2006 to work on the issue. The draft policy to be finalized and submitted to COM by the first quarter of 2007.

10. Foster the development of a socially cohesive, educationally advanced, and culturally vibrant society that is free of illiteracy and disease and follow the RGC's Strategic Plan – Neary Rattanak (women are precious gems).	i. Increase the proportion of deliveries attended by skilled health personnel.	Proportion of deliveries attended by skilled health personnel increased from 31.8% in 2000 to 43.8% in 2005.
	ii. Increase the net enrolment in primary school (total, and by sex).	Total NER declined from from 91.9% to 91.3% between school year 2004/05-2005/06. Female NER declined from 90.7% to 89.7% between school year 2004/05-2005/06.
	iii. Increase the survival rate from grades 1 to 6.	Total survival rate decreased from 52.6% to 48.1% between school year 2004/05-2005/06. Female survival rate decreased from 51.7% to 47.5% between school year 2004/05-2005/06.
	iv. Implement the National Action Plan to combat violence against women.	National Prevention Plan against Domestic Violence completed and to be finalized in 2007.
	v. Increase coverage of effective drug & HIV/AIDS prevention, comprehensive care and support, and effective mitigations interventions.	A national framework for OVCs currently being developed and to be finalized by the first quarter of 2007. A decentralization guideline for multi-sectoral response to HIV/AIDS and impact mitigation being drafted. Cambodia is aiming at the FGATM round 7 to further expand prevention, care and support for people living with HIV/AIDS and for impact mitigation effort.

11. Ensure sustainable use of the natural resources taking into consideration the issues of livelihood and needs of the rural communities.	i. Develop and implement National Forest Program, by initial focus on:
	a. strengthening the enforcement of the Forestry Law, especially combating forest land clearing and encroachment;	207,960 ha of forest land are being taken back from offenders, which includes 9,324 ha that is flood forest. 899 cases reported by the Forestry Administration's forest crime monitoring unit in 2006
	b. rationalizing and reclassify national forest lands to ensure sustainable use of these resources by further forest demarcation/demarcation of protected areas;	Forest demarcation is ongoing in 15 Forestry Administration cantonments. Cambodia's forest estate to be demarcated in pilot provinces (320,000 ha and 600 km of boundary demarcated) and the Forestry Administration Guidelines on forest demarcation developed and tested in 2007. 16 Protected Areas (National Park and Wildlife Sanctuary) are being produced map and on ground boundary demarcation by putting landmark.
	c. completing Forest Cover Assessment 2005/2006.	Interpretation and classification of forest types completed. GRAS A/S Company is verifying the above data assessment, and will be completed in May 2007.
	d. implementing Community Forestry program and develop Community Forestry	The National Community Forestry Guidelines approved, a National Coordination Committee established and support for up-scaling community forestry agreed. Small project proposals developed and looking for funding.
	e. implementing capacity building for forestry sector program/tree planting for socio-economic purposes.	Capacity building is going on, and tree planning has been conducted on 3,500 ha of land.
	f. Independent Monitoring in the forestry sector (Subject to donor grant funding)	No fund for this activity.
	ii. Strengthen transparency by disseminating all relevant sector information on the activities of government agencies, including information on mining concession and military development zones, as well as donors and NGOs by periodically postings on TWG-F&E website.	MIME disclosed information of mining areas. MoD sent a representative to be a member of TWG and will disclose the military development zones in the TWG meeting. MoE will be requested to share GIS data with stakeholders. MAFF disclosed information on economic land concessions.
	iii. Develop and implement a Land Management Policy and associated legal framework to improve sustainable utilization of land resources.	Sub Decree on Land Management in force. Dissemination workshops held for governors, line ministries/agencies, provincial cabinet officers, directors and deputy directors of provincial department of Land Management, Urban Planning and Construction and Cadastral. Down to provincial level, dissemination workshops held for related provincial departments, district authorities, district offices of Land Management, Urban Planning and Construction and Cadastral, and members of Commune Council from 13 provinces. District/khan strategic development plan in 15 districts/khans. Urban Land Use Planning in 13 districts. Participatory land use planning in the framework of natural resource management project at community level and the SEILA Program in 244 villages of 45 communes including preliminary land use maps in 345 communes.
	iv. Strengthen and expand the scope of land registration by:
	issuing 300,000 land title certificates in 2006;	In 2006 318,255 land titles issued.
	increasing the percentage of cases successfully resolved by the cadastral commission: 450 cases successfully resolved out of 800 cases handled in 2006;	In 2006, 291 cases resolved.
	Revision of cadastral service fee structure, especially for sporadic and subsequent registration, public dissemination of the new fee structure and stamp duty for subsequent registration.	Guideline on the management of cadastral fee collection. Decision No. 51 (21 December 2006) on provision of cadastral services. Decision No. 42 (10 October 2006) on establishment of mechanism to receive complaints and solve disputes for the Land Management and Administration Project (LMAP). Decision No. 43 (23 October 2006) on the code of ethics for officials working under LMAP.
	State land mapping conducted in five districts and results placed in a publicly accessible state land data-base.	MLMUPC at Step 4 (out of 5) of District Strategic Development Plan in 5 districts.
12. Create an enabling environment for the development of private sector.	i. The draft Law on Concessions submitted to the National Assembly. All new Private Participation in Infrastructure (PPI) projects abide by the principles of transparency and accountability specified in the draft Law.	Draft Law on Concession has been submitted to the NA
	ii. To strengthen Trade Facilitation: a) adopt and use a Single Administrative Document (SAD) under the Asycuda system);	SAD and explanatory notes approved by Steering Committee.
	b) adopt and publish the inter-agency administrative agreements among all the relevant agencies on procedures and guidelines for the inspection and clearance of imported and exported goods; and	Following selection of qualified consulting firm, establishment of an Inter Agency Agreement and Standard Operation Procedures is underway.
	c) introduce a pilot Single Window (SW) for trade facilitation at the Port Authority of Sihanoukville (PAS);	The Government has decided to implement the SW at a later stage, following the ASEAN single Window calendar, by 2012
	d) draft and adopt a sub-decree on trade facilitation through a risk management approach to inspections and clearance of imports and exports of goods, specifying the Customs and Excise Department (CED) as the lead agency for all types of inspections (documentary, physical, and electronic).	Sub Decree 21 ANKR.BK dated 1 March 2006.
	iii. Prepare and adopt regulations (Prakas) clarifying registration procedures and documentary requirements, specifying procedures for amending Articles of Incorporation, clarifying the minimum requirements for Articles of Incorporation based on the Law on Commercial Enterprises, specifying requirements and procedures for annual declarations, and establishing procedures for decentralization of business registration.	Announcement No. 2106 MOC/LAD dated September 08, 2006 regarding the Implementation of the Plan of Reform of company incorporation and decentralization of business registration. Prakas No. 120 MOC/SM2006 dated June 20, 2006 specifying procedures on the Amendment of Articles of Incorporation. Announcement No. 1415 MOC/SM2006 dated June 20, 2006 clarifying the 13 important requirements for Articles of Incorporation. Prakas No. 149 MOC/ SM 2006 dated July 05, 2006 specifying requirements and procedures for annual declarations.
	iv. Streamline and simplify all license requirements impacting SMEs. iv. Establish and make fully operational the "one-stop service" (OSS) in all Special Economic Zones (SEZs) consistent with the trade facilitation reforms to reduce both the time for, and cost of, trade clearance procedures, including the adoption of the SAD and the adoption of a risk management approach to inspections and clearance of goods.	A plan for establishment of a Licensing Review Mechanism approved by SME Sub-Committee June 7. Manual for carrying out licensing reviews adopted by RGC on 27 Oct 2006. The SME Sub-committee also approved a recourse mechanism for businesses to file grievances regarding disputes resulting from licensing and inspection and to have decision reviewed. OSS to be established whenever a SEZ approved.