TWG: Decentralization and Deconcentration

TWG Action Plan

16.      The TWG planned to implement eighth activities, and satisfactory progress is reported on six activities.

17.     Completion of the draft organic law(s) on sub-national democratic development by the first quarter. The draft Organic Law establishes structures and systems at provincial, municipal, district, khan, commune and sangkat levels as well as a strong Implementing Authority that will oversee implementation of the Organic Law. Annotations and explanatory notes of the draft law are now being formulated. Presentations on the draft law are being prepared. Draft law containing 4 of 5 volumes (in English and Khmer) have been submitted to MOI in June, and have been presented and discussed in a series of review meetings within MOI. The Khmer translation audit and/or verification were conducted with CDRI assistance. Volume 5 (elections) of the law is still under formulation. The TWG reported that the delay on this activity is due to greater than expected technical and internal policy complications in the law; and the need to include and integrate considerable detail to avoid misunderstandings and ambiguity and to guide future long-term direction.

18.     Consultations on the draft law with the IMC Task Force (TF) and other stakeholders (including the TWG on D&D) starting the 2nd quarter. Draft law and summaries have been reviewed by MOI starting June. Presentation to NCDD and consultations with other stakeholders, including donors, are being scheduled starting end of September to early October. The TWG asked GDCC to take cognizance of the creation by royal decree signed on August 18, 2006, of the National Committee for the Management of D&D (NCDD), which takes over the responsibilities of the IMC (of the drafting the organic law) and the NCSC, and also oversee other D&D related activities, including the formulation of the government SNDD Program.

19.    Formulation by MoI of the preliminary and provisional framework/outline for implementation of D&D reforms and organic law by the first quarter. This provisional implementation framework focuses on the activities in the preparatory phase to be done in 2006 while the organic law is being formulated. During this first phase, crucial preparatory work will be completed, including consultations on the draft Organic Law and the preliminary Implementation Framework, and the formulation of a preliminary Royal Government Program for SNDD that includes the transition and phasing out of Seila. An interim implementation authority, the NCDD, was created by Royal Decree in August. The NCDD is set to hold its organizational meeting by the end of September where the review of the draft organic law and the implementation framework are main items in the agenda. Preparatory work within MOI, including its organizational review and restructuring, is in progress and resulted in the sub-decree for the transformation of the General Department of Administration into the General Department of Local Administration. Preliminary draft of the implementation framework is being finalized by MOI for adoption by the NCDD. Preparatory phase component of the draft implementation framework was distributed to IMC members, donors and other stakeholders in the 1st week June.

20.   Review and formulation of D&D support programs of donors to consider the organic laws, strategic framework for D&D, and the recommendations of the independent study. The TWG reported that this is an on-going activity and review and/or program design missions are being deployed. The TWG asked GDCC to advice donors to submit their D&D support programs for review by the NCDD to ensure their consistency and alignment to SNDD policy.

21.     Preliminary and provisional transition arrangements for support programs. Preparatory work on the Government’s SNDD program has been started, with the Terms of Reference for program formulation set for discussion and approval by the NCDD on its first meeting. The donor community will be requested to contribute immediate financial support for the SNDD program formulation.

22.     Completion of the independent study and review and decisions on the study by IMC/MOI. Review, discussion and decision on study by IMC was conducted on May 18, 2006. Presentation to donors of study results and IMC decisions on the study was done on May 24, 2006, and a report was submitted April 28, 2006.

23.     Preliminary arrangements for and implementation of the recommendations of the study adopted by the IMC. Preliminary arrangements are incorporated as activities in the preparatory phase of the preliminary implementation plan/framework. Implementation arrangements for the formulation of the government’s SNDD program are also underway. SNDD program formulation incorporates the study and design of the D&D/SNDD fund and the RGC-donor umbrella agreement. Transition and phase-out arrangements for the Seila program are underway, with MOI initiating and coordinating the process.

24.    Issuance by the IMC/MoI of supplementary policies to the June 17, 2005 D&D framework which are allied and associated to SNDD policy. Supplementary, allied and associated SNDD policies were issued by the DPM/MOI in various occasions, including matters such as the creation of the D&D Donor Fund, the formulation of a suitable Donor-Government Umbrella Agreement, the transition and phase out of Seila, and the creation of the interim implementation authority that consolidates functions of the NCSC, IMC and other D&D institutions. The TWG recommended that, through the GDCC forum, other TWGs, donors and ministries need to consider and align, as appropriate, their activities in accordance with the updated D&D/SNDD policy framework.

Joint Monitoring Indicators

25.     Preparation, consultation and submissions for approval by the National Assembly of the organic law on sub-national democratic development (SNDD). The draft law (in English and Khmer versions) has been reviewed by MOI. Translation and verification have been conducted to ascertain correctness and appropriateness of terminologies. Consultations with IMC/NCDD and other stakeholders have been set to start in September.

26.     D&D and organic law implementation framework/outline prepared (preliminary and provisional pending the enactment/approval by the National Assembly of the organic law). The draft implementation framework for the four phases is being discussed and finalized by MOI and prepared for review and approval by the NCDD. Detailed preparatory phase component of the implementation framework was distributed in early June to the stakeholders including the IMC members and donors.

27.     Review and formulate D&D support program for reform and investment for local development. Preparatory work on the formulation of the Government SNDD program is in progress. TOR has been set for review and approval by the NCDD in September. The UNDP-led donor program formulation is underway, with periodic consultations between the design team and MOI. A review is being carried out by NCDD/MOI of donor programs for SNDD proposed for 2007 implementation to ensure consistency and alignment with the SNDD policy framework.

Implementation status of the H-A-R Action Plan

28.    Sector ministries and agencies lead the management of ODA supported activities and Increasing proportion of development assistance delivered through national institutions, systems and procedures. An Independent Study commissioned by the IMC to develop options for sustainable donor support to decentralization and de-concentration reforms was completed in April. The IMC has made preliminary decisions drawing on some of the recommendations in the Independent Study report, pending adoption of the Organic Law. These include, among others:

  1. Study and design of a Decentralization and Deconcentration Fund (D&D Fund) for pooled donor resources, undertaken in consultation and partnership with donors;

  2. Preparation of a Royal Government-Donor umbrella Agreement on Decentralization and Deconcentration Support that will serve to align donors to the SNDD policy, the Organic Law and the Royal Government’s Implementation Framework and Program for SNDD.

29.   The number of parallel PIU/PMUs for day-to-day management and implementation of external funded projects and programs steadily reduced. The TWG has participated in the survey on number of existing PMUs/PIUs in the MOI structure, and submitted a survey questionnaire in early March.

30.     Capacity development issues are addressed in the formulation of Sector Plans and ODA supported programs/projects with development partners' financial support to achieve targeted development results. Assessment of capacity development issues for SNDD/D&D reform are being prepared and designed as a component of the government’s SNDD program. It is the intention of the National Committee (NCDD) to formulate and adopt a preliminary Royal Government Program for Sub-national Democratic Development (SNDD Program) for 2006-2012. The SNDD Program is primarily intended as an interactive implementation plan for the benefit and the use of the Royal Government and its national and sub-national components. Terms of Reference for its formulation are being prepared and the call fro funding support will soon be made by the NCDD.

Resource mobilization

31.     The TWG has reported that it has been able to mobilize the resources to implement its Action
Plan for 2006.

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