1. INTRODUCTION

1. The purpose of the National Operational Guidelines for Development Cooperation is to set out policies and operational procedures for planning and management of the implementation of development cooperation activities. The guidelines have been developed based on the principles embodied in OECD/DAC "Good Practice Papers" 1 , and best practices in the planning and implementation of development cooperation programs in Cambodia over the last decade 2 . Additional guidance has been provided in the Declaration by the Royal Government of Cambodia and Development Partners on Harmonization and Alignment (signed on 2 December 2004, Phnom Penh).

2. The guidelines are a key element in the implementation of Royal Government's Action Plan on Harmonization, Alignment and Managing for Results to strengthen government systems and procedures 3 . Recognizing the constraints that some development partners may face, for the time being, the adoption of the Guidelines by individual development partners will be at their discretion. However, progress in use of these guidelines by individual development partners will be monitored and periodically reported in progress reports on the implementation of RGC's Action Plan on Harmonisation and Alignment. The Royal Government believes that the use of these guidelines--as a common reference document on policies, operational procedures, and institutional responsibilities at each stage of the program/project cycle 4 --by all national and international development partners would not only significantly improve aid effectiveness but should also reduce administrative burdens on the Government related to management of development partner supported activities.

1.1 METHODOLOGY

3. Originally conceived as a study, the preparation of these guidelines for development cooperation was commissioned by the Government-Development partner Partnership Working Group. The Working Group was established in late 2002 pursuant to a proposal of the Royal Government made at the 6th Consultative Group Meeting in June 2002. The preparation of operational guidelines was one of three efforts commissioned by the Working Group on harmonization issues. Sub-groups consisting of representatives of Government and development partner agencies were formed to facilitate and guide the work in each of the three areas 5 . The Sub-Group that has been facilitating and guiding the work on the preparation of the operational guidelines is chaired by H.E. Vongsey Vissoth, Deputy Secretary General, Ministry of Economy and Finance. Its members include representatives of Government ministries and Japan, DANIDA, France, CIDA, AUSAID, DFID, European Commission, GTZ, SIDA, UNDP, WHO, ADB, and World Bank. The Sub-Group endorsed a "Plan of Action for Preparation of Guidelines" in February 2003. Subsequently, the Sub-Group reviewed and approved a detailed implementation plan prepared by consultants. The approved plan called for the gradual preparation of guidelines in phases. In the first phase, consultants were tasked with preparing guidelines for two modules for development cooperation activities: (a) identification and formulation and (b) reporting and reviews. The consultants' reports on these modules were reviewed at meeting of the Sub-Group on 21st June 2004. At this meeting, the Sub-Group decided to revise the previously approved plan for the gradual preparation of 11 modules. The revision called for collapsing the guidelines into fewer modules following the stages of the program/project cycle and expediting the pace of work for completion of all modules.

4. These guidelines cover grant assistance to Cambodia. Separate guidelines covering loans and other forms of credit are presented in the "Manual on Standard Operating Procedures for Externally Assisted Projects under the Purview of the Ministry of Economy and Finance, Royal Government of Cambodia", and its two supporting manuals: "Standard National Competitive Bidding Documents for the Procurement of Works", and "Financial Management".

1.2 OUTLINE OF THE GUIDELINES

5. The guidelines presented in this report follow the sequence of the program and project cycles and are organized under the following six headings:

  1. Framework for development cooperation management (Chapter 2).

  2. Identification and formulation (Chapter 3).

  3. Management of implementation (Chapter 4).

  4. Financial management and control (Chapter 5)6 .

  5. Monitoring, reviews and evaluation (Chapter 6).

  6. Project completion and closure (Chapter 7).

The guidelines also include several annexes.

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