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The Priority Mission associated with CRDB 10.1 In order to contribute to the implementation of the National Strategic Development Plan (NSDP), the Royal Government of Cambodia (RGC) approved the Strategic Framework for Development Cooperation Management (SFDCM) in January 2006. The harmonisation and alignment of development assistance, in the context of the NSDP and in accordance with the RGC Action Plan on Harmonisation, Alignment and Results (H-A-R), is a priority activity of the RGC in promoting the impact of development assistance and accelerating pro-poor economic growth in Cambodia. 10.2 Acknowledging this priority, Article Twelve of the SFDCM, provides for the establishment of a Merit-Based Pay Initiative (MBPI) to be established to support a Priority Mission Group (PMG). This PMG/MBPI is an important element of the CRDB Capacity Development Strategy that is designed to ensure a significant and sustainable improvement in aid management capacity. The PMG/MBPI performance outcomes – implementation of the H-A-R Action Plan and improved aid management for the NSDP - are therefore intrinsically linked to the implementation Capacity Development Strategy. Features of the CRDB PMG Scheme 10.3 The CRDB proposed PMG/MBPI initiative is consistent with RGC regulations, notably Sub-Decree 98 on 'The Implementation of Merit Based Pay Supplement Incentive' (August 2005) and the Joint Government-Donor Strategy for Phasing-Out Salary Supplementation Practices (January 2006). 10.4 The PMG/MBPI initiative is designed to provide an incentive to personnel in positions that are critical to the attainment of CRDB's mission, as well as to rationalise the current arrangement of ad hoc salary supplements. This will provide transparency and consistency in the remuneration of RGC staff while placing an emphasis on developing a performance culture by establishing a linkage between the provision of financial incentives and the setting and monitoring of performance goals. Staff to be covered by PMG 10.5 The CRDB PMG scheme will apply to civil servants within CRDB. The procedures of the PMG scheme require that priority activities are identified and then assigned by Department. This activity has still to be completed but it is anticipated that approximately twenty officials will be nominated for MBPI payments, about a third of whom will be at Director level or above, and the remainder Deputy Directors. The CRDB organisation chart (page 20), and the functional analysis and workplan will be used to guide the identification of PMG/MBPI positions. Service contract holders will be considered for an alternative incentive scheme, elaborated in Section XIV. Duration, Financial Arrangements and Reporting/Monitoring 10.6 The PMG/MBPI will, at a minimum, support activities during the period 2007-2010 and will be financed in full by the Multi-Donor Support Program (MDSP), which provides capacity development support to CRDB. A Memorandum of Understanding will be prepared between the MDSP co-financing donors and CRDB management, utilising the portion of the MDSP budget that has already made an appropriate provision and the approval of CAR will be secured prior to the scheme's launch. 10.7 Funding requirements are not expected to exceed USD 5,000 per month, and will most likely be substantially less. Payments to individuals will be made on the scales identified for the PMG in Sub Decree 98 (see Table Seven) but they will be tiered, in intervals of 20%, based on performance, which will be monitored and assessed quarterly. Unsatisfactory reviews for two consecutive quarters will result in removal from the scheme. Table Seven: PMG Incentive Scales
source: Sub-Decree 98 of August 2005 10.8 The PMG will allow for other ad hoc salary supplementations to be phased out, with the longer-term sustainability of the scheme being subject to discussion within RGC regarding CRDB receiving its own staffing establishment (as opposed to staff being seconded from elsewhere in RGC or contracted annually). At this time, more formal discussions can begin with Government about longer-term arrangements, including a phased approach to Government assuming increased responsibility for payment as part of its broader pay reform strategy. 10.9 The payment and reporting modality to be used for donor-funded payments is through established channels of the MDSP, with the MDSP auditing arrangements also being used to audit the PMG initiative. As part of the broader capacity development work, these functions may be assumed by CRDB once sufficient capacity is in place; the MDSP will continue to report on all project expenditures and this function will be increasingly taken over by the Administration Department during the lifetime of the program. Initial Selection Criteria 10.10 PMG positions will be informed by the priority mission and the functional analysis, which assigns priority activities to the respective Departments in a transparent and merit-based manner. Selection of staff in these positions will be similarly transparent and merit-based, informed by a weighted consideration of the following factors:
10.11 In addition, Department Directors must display:
Performance Management and Assessment 10.12 The performance management mechanism will be a key management tool, applied at an organisational level as CRDB's objectives and priority activities are regularly assessed against the overall annual workplan and established indicators of progress. Key features of the performance management system are elaborated in the next section. PMG Implementation Arrangements 10.13 PMG will be implemented with the oversight of a Committee structure based on a simplified form of that adopted by the MEF model. All participating staff will sign performance contracts. The Administration Department will be supported to implement most of the routine administrative tasks associated with the scheme and a PMG manual will be developed to establish standards and procedures. |
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