TWG: Decentralization and Deconcentration

TWG Action Plan

16.    The TWG planned to implement seven activities and has reported progress on all scheduled activities.        

  1. Completion by the First Quarter of the draft organic law(s) on sub-national democratic development which 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.  A first draft of the annotations and explanatory notes of the draft law has been formulated. Guidelines for a number of regulations under the organic law (ex. Conflict resolution, code of conduct, gender mainstreaming) are also being prepared. The first drafts of the law, Volumes 1-4, were completed in June with the summaries presented to the NCDD in September. The first draft of Volume 5 was completed in December. MOI review and discussions have been conducted since June. TWG reported that the technical details and internal policy complications in the draft organic law caused the delay in the formulation of the first draft.

  2. Consultations on the draft law with the IMC Task Force (TF) and other stakeholders (including the TWG on D&D) starting the 2nd quarter. An interim implementation authority, the NCDD, was created by Royal Decree in August to take over the coordination of the D&D reform process from the IMC. The NCDD held its organizational meeting in September. The agenda of meeting included the presentation of the highlights of the first draft (vol.1-4) of the law, adoption of the provisional implementation framework and the TOR of the RGC’s SNDD program formulation activity, and the creation of the NCDD Task Force (TF) and NCDD Secretariat. Consultations and presentations on the highlights of the first draft were done by MOI in various fora, starting in August with the call for election funding and National Congress of Communes/Sangkats. These consultations involved various stakeholders and sectors. As part of the review process, the draft law was subjected to a translation audit by the CDRI. These presentations and consultations were considered inadequate as they were limited to the highlights of the draft law. Some stakeholders were clamoring for the chance to review the details in the law. However, the MOI maintained that the details will be released as soon as the NCDD has reviewed and finalized everything.

  3. 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. It also includes key activities in the succeeding phases of implementation from 2007-2013 and onwards. 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. Preparatory work, including the conduct of studies on the delineation of urban areas, baseline information setting of subnational structures, and the other studies recommended by the Independent Study, are being done by the MOI as NCDD Secretariat. Preliminary 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. The preliminary implementation framework is currently being reviewed and updated to reflect the accomplishments in 2006 and review and reset, as necessary, the activities arising from the changes called for in the draft organic law and the succeeding D&D policy issuances.

  4. 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 have been 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 RGC-Donor Umbrella Agreement, the transition and phase out of Seila and the creation of the interim implementation authority (NCDD) that consolidates the functions of the NCSC, the IMC and the other D&D institutions. MOI is currently drafting a memorandum summarizing the contents of the organic law and how the draft law has translated and expanded the strategic framework into the legal framework of the organic law.

  5. Preliminary arrangements for and implementation of the following recommendations of the independent study adopted by the IMC were (i) formulation of a preliminary Royal Government Program for SNDD to be adjusted where necessary once the Organic Law is adopted; (ii) design of a common flexible strategy through which the relevant components and functions of Seila will be phased out and incorporated into new and existing government institutions, as a part of the overall Program for SNDD; (ii) study and design of a Decentralization and Deconcentration Fund (D&D Fund) for pooled donor resources, undertaken in consultation and partnership with donors; (iv) 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. The TOR for the SNDD Program formulation has been approved by the NCDD. Implementation arrangements for the SNDD program formulation are underway, and incorporate the study and design of the D&D/SNDD fund and the RGC-Donor Umbrella Agreement. The arrangements for the transition and phase out of Seila have been underway since September, with MOI initiating and coordinating the process.

  6. 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. The report was submitted on April 28, 2006.

  7. 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; and preliminary and provisional transition arrangements for support programs. The NCDD TF and/or the NCDD Secretariat have been coordinating the review and provisional arrangements for the formulation and implementation of D&D support programs of donors.

Joint Monitoring Indicators

17.   Organic law(s) on sub-national democratic development submitted to and adopted by the National Assembly and Senate. A first draft of the organic law consisting of 5 volumes has been completed in December. MOI has been conducting consultations and review internally and with other stakeholders in government on various aspects of the draft law. The drafting process has been constrained by the greater than expected technical and internal policy complications in the law, giving rise to the need to include and integrate considerable detain in the law to avoid misunderstandings and ambiguity and to guide future long-term direction.

18.   D&D and organic law implementation framework/outline prepared (preliminary and provisional pending the enactment/approval by the National Assembly of the organic laws). A draft implementation framework was prepared during the First Quarter and adopted by the NCDD in September. The component on the Preparatory Phase (2006) was circulated by the IMC in June. The implementation framework sets out the key activities and time lines for the implementation of the organic law. It also sets out the preparatory activities undertaken while the law is being drafted and enacted. The preliminary and provisional nature of the implementation framework makes 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 to the 2005 Strategic Framework on D&D.

19.   Review and formulation of D&D support program for reform and investment for local development. The donor program for SNDD support, the successor to the Seila/PLG program, has been reviewed by the NCDD TF. Since the organic law/SNDD legal framework and the RGC SNDD program (which would provide the evaluation framework for D&D support programs) are still in the process of formulation, the donor D&D support program formulation and review process required several meetings with the NCDD TF and the MOI to thresh out issues.

Implementation status of the H-A-R Action Plan

20.    Sector ministries and agencies lead the management of ODA supported activities and increasing proportion of development assistance delivered through national institutions, systems and procedures. 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: (i) study and design of a Decentralization and Deconcentration Fund (D&D Fund) for pooled donor resources, undertaken in consultation and partnership with donors; (ii) 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.

21.   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.

22.   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. 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 for funding support will soon be made by the NCDD. Implementation arrangements have been underway under the coordination of the MOI.

Resource mobilization

23.   The TWG did not report on this matter.

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