The Asian Development Bank (ADB) has approved over $29 million in financing to help the Government of Cambodia improve service delivery through key reforms in public financial management and decentralization, especially in rural areas, where most of the country’s poor life.
The Second Decentralized Public Service and Financial Management Sector Development Program include a $20 million policy-based loan that will support a programmatic approach to strengthening local governments’ fiscal planning and management, as well as public administration. It also includes a $9.35 million project loan to help build the National School of Local Administration, a dedicated training centre for local government officials. In addition, the government will provide the project with $1.7 million in financing.
“The project aims to help local governments across Cambodia provide sustainable, effective, and efficient delivery of basic public services, while also bridging the urban-rural divide,” said ADB Senior Public Management Specialist Jhelum Thomas. “The project is much needed, as the coronavirus disease (COVID-19) pandemic has seen significant numbers of people move from urban to rural areas. This will put more pressure on local governments to provide social assistance and basic services such as roads, water supply, and sanitation to support inclusive and equitable growth.”