cambodia: country operations business plan (2021-2023)

Country Operations Business Plan

October 2020

Cambodia 2021–2023 This document is being disclosed to the public in accordance with ADB's Access to Information Policy.

CURRENCY EQUIVALENTS (as of 14 October 2020)

Currency unit – riel/s (KR)

KR1.00 = $0.00024 $1.00 = KR4,105

ABBREVIATIONS ADB

ADF – –

Asian Development Bank Asian Development Fund

COL – concessional ordinary capital resources lending COVID-19 – coronavirus disease CPS – country partnership strategy GMS – Greater Mekong Subregion TA – technical assistance

NOTE

In this report, “$” refers to United States dollars

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Vice-President Ahmed M. Saeed, Operations Group 2 Director General Ramesh Subramaniam, Southeast Asia Department (SERD) Country Director Sunniya Durrani-Jamal, Cambodia Resident Mission (CARM), SERD Team leader David Freedman, Country Economist, CARM, SERD Team members Cambodia Country Team, CARM, SERD

Office of Public–Private Partnership Team Private Sector Operations Department Team Procurement, Portfolio and Financial Management Department Team SERD Team

Sustainable Development and Climate Change Department Team

CONTENTS

Page

I. CONSISTENCY OF BUSINESS PLAN WITH COUNTRY PARTNERSHIP STRATEGY 1

II. INDICATIVE RESOURCE PARAMETERS 1

III. SUMMARY OF CHANGES TO LENDING AND NONLENDING PROGRAMS 2

APPENDICES

1. Country Assistance Results Areas 3

2. List of Linked Documents 6

3. Indicative Assistance Pipeline 7

4. Assistance Program for Current Year 13

5. Indicative Knowledge Products and Events 16

I. CONSISTENCY OF BUSINESS PLAN WITH COUNTRY PARTNERSHIP STRATEGY 1. The country operations business plan presents the indicative program of support of the Asian Development Bank (ADB) for Cambodia during 2021–2023. In March 2020, the World Health Organization declared the coronavirus disease (COVID-19) pandemic. The pandemic is a serious threat to Cambodia’s development and has created priorities that were not anticipated in ADB’s country partnership strategy (CPS) for Cambodia, 2019–2023. These include urgent actions to prevent a public health emergency, rollout of social assistance programs to prevent a sudden rise in poverty, and design and implementation of policies for economic recovery. 2. ADB has been working closely with the Government of Cambodia to minimize negative impacts from the pandemic, while continuing to invest in the medium- to long-term drivers of sustainable development. The 2020 country programming mission was extended to allow additional time to assess potential impacts from COVID-19. While the pandemic has created new priorities for ADB support, it has also reinforced the continued relevance of the core CPS pillars and the operational priorities under ADB’s Strategy 2030.1 The government remains committed to supporting the CPS within the broader framework of its Rectangular Strategy Phase IV and Cambodia’s National Strategic Development Plan, 2019–2023.2 The country operations business plan presents an indicative program of assistance for 2021–2023 that aligns with the CPS and will support Cambodia’s post-COVID-19 recovery. 3. ADB will ensure that the design of new projects and programs complements the financing that has been provided through the countercyclical pandemic response option, and other COVID-19 support. There is good potential for nonsovereign operations in agribusiness and energy. ADB’s sovereign and nonsovereign operations in Cambodia will adopt a ‘One ADB’ approach involving the Office of Public Private–Partnership and the Private Sector Operations Department, among others. ADB’s lending program will help to introduce new technologies and innovations and will be complemented by technical assistance (TA), knowledge sharing, and policy advisory support. ADB programs will support regional cooperation and integration and will emphasize gender equity, climate change and disaster resilience, capacity building, and institutional development.

II. INDICATIVE RESOURCE PARAMETERS 4. Cambodia, a group A developing member country, is eligible for concessional ordinary capital resources lending (COL). The indicative COL resources available for commitment for 2021–2023 is $836.7 million. The final allocation will depend on available resources, project readiness, the outcome of the country performance assessments, and other factors. Cofinancing and funding from other sources, including Asian Development Fund (ADF) grants from the ADF 13 thematic pool for projects addressing specific challenges, will be explored.3 5. The 2019 debt sustainability analysis update of the World Bank and the International Monetary Fund assessed Cambodia to be at low risk of debt distress.4 The indicative lending

1 ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific. Manila. 2 Government of Cambodia. 2018. Rectangular Strategy Phase IV. Phnom Penh; and Government of Cambodia. 2019.

National Strategic Development Plan, 2019–2023. Phnom Penh. 3 The proposed ADF 13 framework introduces a single thematic pool. Group A countries, including International

Development Association gap countries and, on a very selective basis, group B countries, are eligible. The single thematic pool addresses thematic priorities in gender equity, climate change adaptation and disaster risk reduction, and regional cooperation and integration including regional public goods.

4 International Monetary Fund and World Bank. 2019. Cambodia – Joint Bank-Fund Debt Sustainability Analysis: 2019 Update. Washington, DC: World Bank Group.

2

pipeline for 2021–2023 includes firm projects with total COL lending of $1,260.7 million, $29.4 million of ADF grants, and $166.0 million of cofinancing. While indicative lending during 2021–2023 exceeds the indicative resources available for commitment, the final lending and nonlending program will be subject to confirmation of government priorities, resource availability, and available headroom under ADB’s policy-based lending ceiling. The 2021–2023 program includes seven regional cooperation projects with a total value of $588.1 million. The nonlending pipeline will support project preparation and implementation, capacity building, and knowledge work. The bulk of nonlending support will be provided through regional TA facilities. The proposed firm lending and nonlending pipeline for 2021–2023 is in Appendix 3, while the assistance program for 2020 is in Appendix 4. Appendix 5 lists indicative knowledge products and events.

III. SUMMARY OF CHANGES TO LENDING AND NONLENDING PROGRAMS 6. 2020. The Road Network Improvement Project (phase 2); and subprogram 2 under the Strengthening Public Financial Management Program have been reprogrammed to 2021 to allow additional time for preparation. A $250.0 million emergency countercyclical financing support program has been approved under ADB’s countercyclical pandemic response option.5 Because of increased investment needs, COL financing for the Grid Reinforcement Project has been increased from $100.0 million to $127.8 million. A new regional TA—Policy Advice for COVID-19 Economic Recovery—has been added to the nonlending pipeline, along with two new national TA projects to support e-government and economic diversification. 7. 2021. Because of increased scope, COL financing for subprogram 2 of the Strengthening Public Financial Management Program has increased from $30.0 million to $40.0 million and COL financing for the Livable Cities Investment Project (phase 1) has increased from $170.0 million to $180.0 million. A $15.0 million project to support audit strengthening has been replaced by a Small Expenditures Financing Facility with the same amount. The Greater Mekong Subregion (GMS) Health Care Project was previously listed as standby for 2021 but is now listed as firm and has been renamed the GMS Healthy Border Special Economic Zones Project. A new grant-financed project—the Community-Based Tourism COVID-19 Recovery Project—has been added. New TA projects will build capacity for public investment management and support women’s entrepreneurship. 8. 2022. Three new projects have been added for 2022 to strengthen program alignment with the CPS objectives and support Cambodia’s recovery from the coronavirus pandemic. The new projects are (i) the Trade and Competitiveness Program, subprogram 1 ($80.0 million) which will build on the economic revival strategy for COVID-19; (ii) the Energy Efficiency Sector Development Program ($80.0 million) which will leverage energy efficiency for economic competitiveness and environmental sustainability; (iii) additional financing under the Grid Reinforcement Project ($50.0 million) to further strengthen grid infrastructure. The GMS Cross-Border Livestock Health and Value Chains Improvement Project ($75.0 million) has been reprogrammed from standby to firm and will support livestock production and disease prevention. The Road Network Improvement Project (phase 3) has been reprogrammed from 2022 to 2023. 9. 2023. Five projects are programmed for 2023. In line with the CPS and anticipated needs following the coronavirus pandemic, these projects will (i) strengthen social protection; (ii) expand renewable energy; (iii) strengthen integrated natural resource management; (iv) improve regional connectivity; and (v) support sustainable urbanization.

5 The loan agreement for the Cambodia COVID-19 Active Response and Expenditure Support Program was signed

on 10 July and funds were disbursed on 14 August 2020.

Appendix 1 3

COUNTRY ASSISTANCE RESULTS AREAS

Key Country Development Outcomes that ADB Contributes to

ADB

Key Areas of Assistance Indicative Resourcesa Available for Commitment in 2021–2023 Changes from Last COBP

1. Energy (CPS pillarsb 1, 3)

Renewable energy promoted Environmental sustainability ensured Climate change preparedness enhanced Economic competitiveness improved

Electricity transmission and distribution Energy efficiency and conservation Renewable energy generation: solar Energy storage services Energy sector development and institutional reform

Amount: $123.8 million (COL) and $50.0 million (cofinancing) Share of COBP envelope: 9.6%

The key country development outcome has been updated from “Promoting energy linkages and ensuring sustainable environment and preparing for climate change”. “Energy efficiency and conservation” has been added as a key area of assistance.

2. Transport (CPS pillarsb 1, 3)

Logistics and transport networks improved

National, provincial, and rural road improvement Road asset management Greater Mekong Subregion road corridor improvement

Amount: $163.8 million (COL) Share of COBP envelope: 12.7%

No change

3. Water and Other Urban Infrastructure and Services (CPS pillarsb 1, 3)

Urban planning and management strengthened Rural and urban infrastructure developed

Urban flood protection Urban sewerage Urban solid waste management Urban policy, institutional and capacity development Urban water supply


The country development outcomes have been updated to improve alignment with ADB’s country partnership strategy. “Urban flood protection”; “urban sewerage”; “urban solid waste management”; “urban policy, institutional, and capacity development”; and “urban water supply” have been added to the key areas of assistance while “road transport (non-urban)”; “multimodal transport”; “urban water supply and sanitation”; and “transport policies and institutional development” have been removed.

4 Appendix 1


ADB


4. Education (CPS pillarb 2)

Science, technology, engineering, and mathematics (STEM) education strengthened Secondary school graduates’ skills in math and science improved Upskilling/re-skilling opportunities for workers and technical and vocational education and training students expanded

Education sector development Women’s enrollment in technical and vocational education and training Upper secondary education ICT


The country development outcome has been revised to “Secondary school graduates’ skills in math and science improved.” “Technical and vocational education and training” has been changed to “Women’s enrollment in technical and vocational education and training in the key areas of assistance and “ICT” has been added.

5. Agriculture, Natural Resources, and Rural Development (CPS pillarsb 1, 3)

Agriculture and rural development promoted

Integrated natural resource management Forestry Fishery Irrigation Rural flood protection Rural water policy, institutional, and capacity development Livestock Agro-industry, marketing, and trade Rural market infrastructure

Amount: $259.5 million (COL), $23.3 million (ADF grant), and $113.0 million (cofinancing) Share of COBP envelope: 21.9%

“Rural flood protection”; “rural water policy, institutional, and capacity development”; “livestock”; “forestry”; and “fishery” have been added as key areas of assistance. “Agriculture research and application” has been removed.

6. Public Sector Management (CPS pillarsb 3, 4)

Institutional capacity reform promoted Public administration Public expenditure and fiscal management Decentralization


“Social protection initiatives” has been added as a key area of assistance.

Appendix 1 5


ADB


Social protection initiatives

7. Finance (CPS pillarsb 1, 3)

Development of finance sector promoted Capital markets developed

Banking systems and nonbank financial institutions Finance sector development Inclusive finance Money and capital markets Small and medium-sized enterprises and entrepreneurship


The country development outcome has been updated to “Capital markets developed.” The area of assistance “Central banking systems” has been replaced by “Banking systems and nonbank financial institutions”. “Insurance and contractual savings” has been removed.

8. Industry and Trade (CPS pillarsb 1, 3, 4)

Global and regional trade and investment opportunities expanded FDI in capital formation Small and medium-sized enterprises and entrepreneurship promoted

Medium and large-sized industries Small and medium-sized enterprises development Trade and services Industry and trade sector development


Industry and trade is a newly proposed sector, and will complement the long-standing policy-based lending program on inclusive finance sector development to support the CPS focus on trade and competitiveness.

9. Healthb (CPS pillar 2)

Cross-border health risks successfully reduced

Health system development Control of communicable diseases Control of noncommunicable diseases

Amount: $20.0 million (COL) and $6.1 million (ADF grant) Share of COBP envelope: 2.0%

Health has been added to complement ADB’s long-standing program on regional cooperation and integration and support the CPS objective of strengthening human capital.

ADB = Asian Development Bank, ADF = Asian Development Fund, COBP = country operations business plan, COL = concessional OCR lending, CPS = country partnership strategy, FDI = foreign direct investment, ICT = information and communications technology, OCR = ordinary capital resources. a The term “resources” covers concessional OCR lending, regular OCR lending, and ADF grants. b ADB’s country partnership strategy (CPS) for Cambodia, 2019–2023 consists of four pillars, namely: (i) accelerate competitiveness and economic diversification;

(ii) strengthen human capital and lifelong learning; (iii) foster green, inclusive, and sustainable development and (iv) improve governance. Source: Asian Development Bank estimates.

6 Appendix 2

LIST OF LINKED DOCUMENTS http://www.adb.org/Documents/COBP/?id=CAM-2021

1. Portfolio at a Glance: Cambodia

http://www.adb.org/Documents/COBP/?id=CAM-2021

Appendix 3 7

INDICATIVE ASSISTANCE PIPELINE

Table A3.1: Lending Products, 2021–2023

Project/Program Namea Sector Poverty

Targeting Operational

Priority Division

Year of

TRTA/ PRF

Cost ($ million)

Total

ADB

Gov’t Co-

financec

Regular OCR COL

ADF Grantsb Total

2021 Firm Strengthening Public

Financial Management Program (subprogram 2) (PBL)

PSM GI OP6 CARM 2016 40.0 0.0 40.0 0.0 40.0 0.0 0.0

Sustainable Coastal and Marine Fisheries Project

ANR GI OP1, OP2, OP3, OP5,

OP6

SEER 2018 100.0 0.0 50.0 5.0 55.0 5.0 40.0d

Science and Technology (Upper Secondary Education) Investment Program (tranche 1)

EDU GI OP1, OP2, OP6

SEHS 2020 40.0 0.0 40.0 0.0 40.0 0.0 0.0

Inclusive Financial Sector Development Program (subprogram 3) (SDP)

FIN GI OP1, OP2 SEPF 2014 40.0 0.0 40.0 0.0 40.0 0.0 0.0

Small Expenditures Financing Facility

TRA/ WUS/ ANR/ ENE

GI OP6 CARM 15.0 0.0 15.0 0.0 15.0 0.0 0.0

Livable Cities Investment Project (phase 1)

WUS GI OP1, OP2, OP3, OP4, OP6, OP7

SEUW 2018 180.0 0.0 180.0 0.0 180.0 0.0 0.0

Greater Mekong Subregion Healthy Border Special Economic Zones Project

HLT GI OP2, OP7 SEHS 2020 26.1 0.0 20.0 6.1 26.1 0.0 0.0

Road Network Improvement Project (phase 2)

TRA GI OP1, OP2, OP3, OP6,

OP7

SETC 2018 87.0 0.0 80.0 0.0 80.0 7.0 0.0

Community-Based Tourism COVID-19 Recovery Project

ANR GI OP1, OP2, OP5

SEER 2018 3.5 0.0 0.0 0.0 0.0 0.5 3.0e

Total, Firm 2021 531.6 0.0 465.0 11.1 476.1 12.5 43.0

8 Appendix 3



Priority Division

Year of

TRTA/ PRF

Cost ($ million)

Total

ADB

Gov’t Co-

financec

Regular OCR COL

ADF Grantsb Total

2021 Standby Second Decentralized

Public Service and Financial Management Program (subprogram 2) (PBL)

PSM GI OP6 SEPF 2016 30.0 0.0 30.0 0.0 30.0 0.0 0.0

Grid Reinforcement Project (additional financing)

ENE GI OP1 SEEN 2018 50.0 0.0 50.0 0.0 50.0 0.0 0.0

Greater Mekong Subregion Cross-Border Livestock Health and Value Chains Improvement Project

ANR GI OP1, OP5 SEER 2020 75.0 0.0 50.0 12.0 62.0 0.0 13.0f

Trade and Competitiveness Program (subprogram 1) (SDP)

IND/FIN/PSM

GI OP1, OP2 SEPF 80.0 0.0 80.0 0.0 80.0 0.0 0.0

Total, Standby 2021 235.0 0.0 210.0 12.0 222.0 0.0 13.0 2022 Firm Second Decentralized

Public Service and Financial Management Program (subprogram 2) (PBL)

PSM GI OP6 SEPF 2019 30.0 0.0 30.0 0.0 30.0 0.0 0.0

Water Resources Management Program (tranche 1)g

ANR GI OP1 OP2, OP3, OP5

SEER 2018 140.0 0.0 75.7 4.3 80.0 0.0 60.0h

Skills for Future Economy Investment Program

EDU GI OP1, OP2, OP6

SEHS 2016 100.0 0.0 100.0 0.0 100.0 0.0 0.0

Energy Efficiency Sector Development Program (SDP)

ENE GI OP3 SEEN 2021 80.0 0.0 50.0 0.0 50.0 0.0 30.0f

Grid Reinforcement Project (additional financing)

ENE GI OP1 SEEN 2018 50.0 0.0 50.0 0.0 50.0 0.0 0.0

Appendix 3 9



Priority Division

Year of

TRTA/ PRF

Cost ($ million)

Total

ADB

Gov’t Co-

financec

Regular OCR COL

ADF Grantsb Total

Trade and Competitiveness Program (subprogram 1)

IND/FIN/PSM

GI OP1, OP2 SEPF 80.0 0.0 80.0 0.0 80.0 0.0 0.0

Greater Mekong Subregion Cross-Border Livestock Health and Value Chains Improvement Project

ANR GI OP1, OP3, OP5, OP7

SEER 2020 75.0 0.0 50.0 12.0 62.0 0.0 13.0f

Total, Firm 2022 555.0 0.0 435.7 16.3 452.0 0.0 103.0 2022 Standby National Project on

Energy Storage for Utility-Scale Solar Plants

ENE GI OP3 SEEN 2020 40.0 0.0 20.0 0.0 20.0 0.0 20.0f



SEUW 2018 80.0 0.0 80.0 0.0 80.0 0.0 0.0

Building Resilience and Protecting Livelihoods Project

EDU/ HLT

GI OP1, OP2, OP7

SEHS 2022 100.0 0.0 100.0 0.0 100.0 0.0 0.0

Total, Standby 2022 220.0 0.0 200.0 0.0 200.0 0.0 20.0

2023 Firm Building Resilience and

Protecting Livelihoods Project

EDU/ HLT

GI OP1, OP2, OP7

SEHS 2022 100.0 0.0 100.0 0.0 100.0 0.0 0.0

Strengthening Natural Resources Management and Disaster Resilience Project

ANR GI OP1, OP3, OP7

SEER 2020 82.0 0.0 80.0 2.0 82.0 0.0 0.0

National Project on Energy Storage for Utility-Scale Solar Plants

ENE GI OP3 SEEN 2020 40.0 0.0 20.0 0.0 20.0 0.0 20.0f



SEUW 2019 80.0 0.0 80.0 0.0 80.0 0.0 0.0

10 Appendix 3



Priority Division

Year of

TRTA/ PRF

Cost ($ million)

Total

ADB

Gov’t Co-

financec

Regular OCR COL

ADF Grantsb Total

Road Network Improvement Project (phase 3)

TRA GI OP1, OP2, OP3, OP6,

OP7

SETC 2020 90.0 0.0 80.0 0.0 80.0 10.0 0.0

Total, Firm 2023 392.0 0.0 360.0 2.0 362.0 10.0 20.0 Total, Firm, 2021–2023 1,478.6 0.0 1,260.7 29.4 1,290.1 22.5 166.0

ADB = Asian Development Bank; ADF = Asian Development Fund; ANR = agriculture, natural resources, and rural development; CARM = Cambodia Resident Mission; COL = concessional OCR lending; EDU = education; ENE = energy; FIN = finance; GI = general intervention; Gov’t = government; HLT = health; IND = industry and trade; OCR = ordinary capital resources; OP1 = addressing remaining poverty and reducing inequalities; OP2 = accelerating progress in gender equality; OP3 = tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; OP4 = making cities more livable; OP5 = promoting rural development and food security; OP6 = strengthening governance and institutional capacity; OP7 = fostering regional cooperation and integration; PBL = policy-based lending; PRF= project readiness financing; PSM = public sector management; SDP = sector development program; SEEN = Energy Division, Southeast Asia Department; SEER = Environment, Natural Resources, and Agriculture Division, Southeast Asia Department; SEHS = Human and Social Development Division, Southeast Asia Department; SEPF = Public Management, Financial Sector, and Trade Division, Southeast Asia Department; SETC = Transport and Communications Division, Southeast Asia Department; SEUW = Urban Development and Water Division, Southeast Asia Department; TRA = transport; TRTA = transaction technical assistance; WUS = water supply and other urban infrastructure and services. a The lending program includes envisaged ADF grant financing from the ADF 13 thematic pool, subject to the outcome of a project selection and prioritization

process. Given the provisional nature of the indicative lending program, the composition of lending instruments in the actual loan delivery may change. b (i) ADF grants can be considered only under the ADF 13 single thematic pool, and (ii) the specific thematic priorities that the project is addressing (e.g., ADF 13

thematic pool grant for $7.0 million to be proposed through disaster risk reduction strategic area) c Where feasible, additional resources may be explored and mobilized from ADB’s development partners in Cambodia and in the reg ion. Potential cofinanciers

include Agence Française de Développement (AFD); ASEAN Infrastructure Fund; Asian Infrastructure Investment Bank; Department of Foreign Affairs and Trade, Australia; Economic Development Cooperation Fund and Export−Import Bank of Korea; European Commission – Asia Investment Facility; European Investment Bank; International Fund for Agricultural Development; Japan International Cooperation Agency; Nordic Development Fund; the World Bank; other global climate funds (e.g., Global Climate Fund, Strategic Climate Fund); and ADB-administered trust funds such as the Japan Fund for Poverty Reduction.

d AFD, ASEAN Infrastructure Fund, and to be determined. e Japan Fund for Poverty Reduction. f To be determined. g Formerly Integrated Water Resources Management Tranche (MFF) 1. h AFD. Source: Asian Development Bank estimates.

Appendix 3 11

Table A3.2: Nonlending Products and Services, 2021–2023

Assistance Name Sector Division Assistance

Type

Sources of Funding

ADB Othersa

Total ($'000) Source

Amount ($'000) Source

Amount ($'000)

2021 Country Technical Assistance Strengthening Capacity for Public Investment

Management PSM CARM KSTA TASF 1,000.0 TF 1,000.0 2,000.0

Women's Entrepreneurship and the Fourth Industrial Revolution Project

IND CARM KSTA JFPR 2,000.0 2,000.0

Total, Country Technical Assistance, 2021 1,000.0 3,000.0 4,000.0 2021 Regional Technical Assistance Enhancing Trade Facilitation in Southeast Asia IND SEPF KSTA ... JFPR 1,000.0 1,000.0 Southeast Asia Agriculture, Natural

Resources, and Rural Development Facility (phase 2) (additional financing)

ANR SEER TRTA TASF 5,000.0 5,000.0

Southeast Asia Public Management, Finance Sector, and Trade Policy Facility (additional financing)

FIN SEPF TRTA TASF 3,500.0 3,500.0

Southeast Asia Transport Project Preparatory Facility (phase 3)

TRA SETC TRTA TASF 5,000.0 ... 5,000.0

Southeast Asia Energy Sector Development, Investment Planning and Capacity Building Facility (additional financing)

ENE SEEN TRTA TASF 3,500.0 TBD 500.0 4,000.0

Support for Human and Social Development in Southeast Asia (additional financing)

EDU/ HLT

SEHS TRTA TASF 4,000.0 ... 4,000.0

Southeast Asia Urban Services Facility (additional financing)

WUS SEUW TRTA TASF 5,000.0 TBD 5,000.0 10,000.0

Total, Regional Technical Assistance, 2021 26,000.0 6,500.0 32,500.0 Total, Country and Regional Technical Assistance, 2021 27,000.0 9,500.0 36,500.0

2022 Country Technical Assistance Strengthening Trade and Competitiveness IND/FIN/

PSM CARM TRTA TASF 2,000.0 ... 2,000.0

Total, Country Technical Assistance, 2022 2,000.0 2,000.0 2022 Regional Technical Assistance Southeast Asia Public Management, Finance

Sector, and Trade Policy Facility (additional financing)

FIN SEPF TRTA TASF 3,500.0 ... 3,500.0

12 Appendix 3


Type

Sources of Funding

ADB Othersa



Amount ($'000)

Southeast Asia Transport Project Preparatory Facility (phase 3) (additional financing)

TRA SETC TRTA TASF 5,000.0 ... 5,000.0


WUS SEUW TRTA TASF 5,000.0 TBD 5,000.0 10,000.0

Enhancing Gender Equality Results in Southeast Asian Developing Member Countries (phase 2) (additional financing)

PSM SEHS TRTA TASF 1,500.0 1,500.0

Total, Regional Technical Assistance, 2022 15,000.0 5,000.0 20,000.0 Total, Country and Regional Technical Assistance, 2022 17,000.0 5,000.0 22,000.0

2023 Regional Technical Assistance Southeast Asia Urban Services Facility

(additional financing) WUS SEUW TRTA TASF 7,000.0 TBD 1,000.0 8,000.0

Southeast Asia Agriculture, Natural Resources, and Rural Development Facility (phase 3)

ANR SEER TRTA TASF 5,000.0 ... 5,000.0

Support for Human and Social Development in Southeast Asia II

EDU/ HLT

SEHS TRTA TASF 3,000.0 ... 3,000.0

Total, Regional Technical Assistance, 2023 15,000.0 1,000.0 16,000.0 Total, Country Technical Assistance, 2021–2023 3,000.0 3,000.0 6,000.0 Total, Regional Technical Assistance, 2021–2023 56,000.0 12,500.0 68,500.0 Total, Country and Regional Technical Assistance, 2021–2023 59,000.0 15,500.0 74,500.0

ADB = Asian Development Bank; ANR = agriculture, natural resources, and rural development; CARM = Cambodia Resident Mission, Southeast Asia Department; EDU = education; ENE = energy; FIN = finance; HLT = health; IND = industry and trade; JFPR = Japan Fund for Poverty Reduction; KSTA = knowledge and support technical assistance; PSM = public sector management; SEEN = Energy Division, Southeast Asia Department; SEER = Environment, Natural Resources, and Agriculture Division, Southeast Asia Department; SEHS = Human and Social Development Division, Southeast Asia Department; SEPF = Public Management, Financial Sector and Trade Division, Southeast Asia Department; SETC = Transport and Communications Division, Southeast Asia Department; SEUW = Urban Development and Water Division, Southeast Asia Department; TASF = Technical Assistance Special Fund; TBD = to be determined; TF = trust fund; TRA = transport; TRTA = transaction technical assistance; WUS = water and other urban infrastructure and services. a As appropriate, support from global, regional, and bilateral grant funds as well as from ADB-administered trust funds will be explored to add value to ADB’s

nonlending operations, including access to high-value technology, innovation, and best practices. Key fund examples include Agence Française de Développement Trust Fund for Project Preparation, ASEAN Australia Smart Cities Trust Fund, Clean Energy Fund, Canadian Climate Fund for the Private Sector in Asia, e-Asia and Knowledge Partnership Fund, Global Environment Facility, High Level Technology Fund, JFPR, Japan Fund for the Joint Crediting Mechanism, Project Readiness Improvement Trust Fund, and Water Financing Partnerships Facility (with support from the Netherlands and the Bill and Melinda Gates Foundation). Support from the Department of Foreign Affairs and Trade of Australia, among other bilateral partners, will also be explored.

Source: Asian Development Bank estimates.

Appendix 4 13

ASSISTANCE PROGRAM FOR CURRENT YEAR

Table A4.1: Lending Products, 2020


Targeting Priority

Area Division

Year of

TRTA/ PRF

Cost ($ million)

ADB

Total Regular

OCR COL ADF

Grants Total Gov’t Co-

finance

2020 Firm Grid Reinforcement

Project ENE GI OP3 SEEN 2018 173.1 0.0 127.8 0.0 127.8 38.6 6.7b

Second Decentralized Public Service and Financial Management Sector Development Program (subprogram 1) (SDP)

PSM GI OP6, OP2 SEPF 2016 29.4 0.0 29.4 0.0 29.4 0.0 0.0

COVID-19 Active Response and Expenditure Support Program (PBL)

PSM GI OP1, OP2 SEPF/ CARM

N/A 250.0 0.0 250.0 0.0 250.0 0.0 0.0c

Agricultural Value Chain Competitiveness and Safety Enhancement Projectd

ANR GI OP1, OP2, OP3, OP5,

OP7

SEER 2018 110.0 0.0 70.0 0.0 70.0 7.0 33.0e

Total, Firm 2020 562.5 0.0 477.2 0.0 477.2 45.6 39.7

ADB = Asian Development Bank; ADF = Asian Development Fund; ANR = agriculture, natural resources, and rural development; CARM = Cambodia Resident Mission, Southeast Asia Department; COL = concessional OCR lending; COVID-19 = coronavirus disease; ENE = energy; GI = general intervention; Gov’t = government; N/A = not available; OCR = ordinary capital resources; OP1 = addressing remaining poverty and reducing inequalities; OP2 = accelerating progress in gender equality; OP3 = tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; OP5 = promoting rural development and food security; OP6 = strengthening governance and institutional capacity; OP7 = fostering regional cooperation and integration; PBL = policy-based lending; PRF= project readiness financing; PSM = public sector management; SDP = sector development program; SEEN = Energy Division, Southeast Asia Department; SEER = Environment, Natural Resources, and Agriculture Division, Southeast Asia Department; SEPF = Public Management, Financial Sector, and Trade Division, Southeast Asia Department; TRTA = transaction technical assistance. a Given the provisional nature of the indicative lending program, the composition of lending instruments in the actual loan delivery may change. All policy-based

lending operations will be subject to resource availability and available headroom. Investment lending accounted for 91.7% of sovereign lending commitments in 2017-2019, while conventional PBL was 8.3% and RBL was 0.0%.

b $6.7 million ($4.7 million from Strategic Climate Fund – Scaling Up Renewable Energy Program in Low-Income Countries and $2.0 million from Clean Energy Fund). c Additional cofinancing is being discussed with the Japan International Cooperation Agency and the World Bank. d Formerly Agriculture Value Chain Infrastructure Improvement Project. e Agence Française de Développement. Source: Asian Development Bank estimates.

14 Appendix 4

Table A4.2: Nonlending Products and Services, 2020


Type

Sources of Funding

ADB Others



Amount ($'000)

2020 Country Technical Assistance Knowledge and Advisory Services for

Economic Diversification IND CARM KSTA

... TF 225.0 225.0

Supporting Digital Cambodia for Inclusive Development Project

PSM CARM KSTA ...

JFPR 2,000.0 2,000.0

Total, Country Technical Assistance 2020 ... 2,225.0 2,225.0 2020 Regional Technical Assistance Southeast Asia Agriculture, Natural

Resources, and Rural Development Facility (phase 2)

ANR SEER TRTA TASF 3,200.0 DFAT, WFPFa 650.0 3,850.0

Greater Mekong Subregion Sustainable Agriculture and Food Security Program (additional financing)

ANR SEER KSTA ... PRCF 750.0 750.0

Strengthening Safeguards Management in Southeast Asia (additional financing)

PSM SEOD KSTA TASF 2,200.0 ... 2,200.0

Southeast Asia Public Management, Finance Sector, and Trade Policy Facility (additional financing)

FIN SEPF TRTA TASF 2,000.0 ... 2,000.0

Early Harvest’ Implementation of the Cross-Border Transport and Trade Facilitation in the Greater Mekong Subregion

IND SEPF KSTA ... Asia Regional Trade and

Connectivity Trust Fund

1,500.0 1,500.0

Sustaining the Gains of Regional Cooperation in the Greater Mekong Subregion (additional financing)

PSM SERC KSTA TASF 800.0 RCIF/PRCF ... 800.0

Support for Human and Social Development in Southeast Asia (additional financing)

EDU SEHS TRTA TASF 700.0 ... 700.0

Preparing Education Sector Programs Facility (additional financing)

EDU SEHS TRTA TASF 2,110.0 ... 2,110.0

Technology-Enabled Innovation in Education in Southeast Asia

EDU/ICT SEHS TRTA ... JFPR 2,000.0 2,000.0


WUS SEUW TRTA TASF 3,100.0 JFPRb 4,000.0 7,100.0

Support to the Association of Southeast Asian Nations Economic Community

PSM SEPF KSTA ... DFAT 2,900.0 2,900.0

Appendix 4 15


Type

Sources of Funding

ADB Others



Amount ($'000)

Policy Advice for COVID-19 Economic Recovery in Southeast Asia

PSM SERC KSTA TASF 5,000.0 ... 5,000.0

Enhancing Effectiveness of Subregional Programs to Advance Regional Cooperation and Integration in Southeast Asia

PSM SERC KSTA ... EAKPF 500.0 500.0

Southeast Asia Energy Sector Development, Investment Planning and Capacity Building Facility (additional financing)

ENE SEEN TRTA CEFPF 1,500.0 1,500.0

Strengthening Regional Health Cooperation in the Greater Mekong Subregion (additional financing)

HLT SEHS KSTA TASF 2,000.0 ... 2,000.0

Strengthening the Enabling Environment for Disaster Risk Financing (phase 2)

FIN SDSC KSTA TASF 500.0 RCIF 500.0 1,000.0

Total, Regional Technical Assistance 2020 21,610.0 14,300.0 35,910.0 Total, Country and Regional Technical Assistance 2020 21,610.0 16,525.0 38,135.0

ADB = Asian Development Bank; ANR = agriculture, natural resources, and rural development; CARM = Cambodia Resident Mission, Southeast Asia Department; CEFPF = Clean Energy Financing Partnership Facility; COVID-19 = coronavirus disease; DFAT = Department of Foreign Affairs and Trade; EAKPF = e-Asia and Knowledge Partnership Fund; EDU = education; ENE = energy; FIN = finance; HLT = health; ICT = information and communication technology; IND = industry and trade; JFPR = Japan Fund for Poverty Reduction; KSTA = knowledge and support technical assistance; PRCF = Poverty Reduction and Regional Cooperation Fund; PSM = public sector management; RCIF = Regional Cooperation and Integration Fund; SDSC = Sustainable Development Sector Group; SEEN = Energy Division, Southeast Asia Department; SEER = Environment, Natural Resources, and Agriculture Division, Southeast Asia Department; SEHS = Human and Social Development Division, Southeast Asia Department; SEOD = Office of the Director General, Southeast Asia Department; SEPF = Public Management, Financial Sector, and Trade Division, Southeast Asia Department; SERC = Regional Cooperation and Operations Coordination Division, Southeast Asia Department; SEUW = Urban Development and Water Division, Southeast Asia Department; TASF = Technical Assistance Special Fund; TF = trust fund; TRTA = transaction technical assistance; WFPF = Water Financing Partnership Facility; WUS = water and other urban infrastructure and services. a Netherlands Trust Fund under the WFPF. b Includes $2 million support for the Citywide Inclusive Sanitation for Phnom Penh. Source: Asian Development Bank estimates.

16 Appendix 5

INDICATIVE KNOWLEDGE PRODUCTS AND EVENTS

Table A5.1: Knowledge Products and Events for 2021

Title of Publication or Event Subject Type

Department or Sector Group or Thematic Group Funding Source

Cambodia Power Sector Forum Energy Event organization SEEN/CARM Transaction Advisory TA (TRTA) and CARM budget

South-to-South Dialogue Energy Event organization SEEN/SDCC/ CARM

Climate Investment Fund

Road Embankment Protective Works using Bio-engineering Method Transport Training or Capacity Development

SERD TBC

Asian Development Outlook, 2021 Economics Publication and documentation

ERCD Non-TA

Asian Development Outlook Supplement, 2021 Economics Publication and documentation

ERCD Non-TA

Asian Development Outlook Update, 2021 Economics Publication and documentation

ERCD Non-TA

An analysis of the cost drivers and competitiveness of SEZs for new and high technology exports

Economics Publication and documentation

CARM TA

Green Bond Market Development in ASEAN+3 Economics Publication and documentation

ERCD TA

4th Asia Finance Forum Finance Event organization SDCC TA Recent researches on Time Release Study (TRS) in Southeast

Asia Industry and trade Publication and

documentation SERD TA

9th International Skills Forum Education Event organization SDCC TA 9415 16th Asia Clean Energy Forum Energy Event organization SDCC TA Handbook on Hydrogen Energy Energy Publication and

documentation SDCC TA

ASEAN Green Infrastructure Investment Opportunities Report Finance Publication and documentation

SERD TA

Long-skills development roadmap Education Publication and documentation

SEHS TBC

Policy brief on long-term human resources development Education Publication and documentation

SEHS TBC

Analysis of the population census (2019) Economics Publication and documentation

CARM RETA

Rural Roads Strategy and Masterplan Transport Publication and documentation

SERD Ongoing loan

Asian Transport Forum 2021 Transport Event organization SDCC TA 9420

Appendix 5 17



Social Protection Expenditure Review Report Social development and protection

Training or capacity development

SDCC/ILO TA9341

Asia-Pacific Social Protection Week Social development and protection

Signature event SDCC TA 9534

Social Protection Indicator Social development and protection

Signature publication

SDCC TA 9534

Asia and the Pacific Gender Forum Gender Signature Event SDCC TA and Non-TA Training for subnational officials on gender and climate proofing of

infrastructure projects Governance and

public sector management


TBC

Managing and improving tax compliance workshop Governance and public sector management


SDCC DRMTF

Workshop on property tax policy and administration Governance and public sector management


SDCC TA 9990

Comparative Analysis of Tax Administration in Asia and the Pacific 2021 Edition

Governance and public sector management

Publication and documentation

SDCC DRMTF

Total number of publications = 14 Total number of events = 13

ASEAN = Association of Southeast Asian Nations; CARM = Cambodia Resident Mission, Southeast Asia Department; DRMTF = Establishment of the Domestic Resource Mobilization Trust Fund; ERCD = Economic Research and Regional Cooperation Department; ILO = International Labour Organization; RETA = regional technical assistance; SDCC = Sustainable Development and Climate Change Department; SEEN = Energy Division, Southeast Asia Department; SEHS = Human and Social Development Division, Southeast Asia Department; SERD = Southeast Asia Department; SEZs = special economic zones; TA = technical assistance; TBC = to be confirmed. Source: Asian Development Bank.

18 Appendix 5

Table A5.2: Additional Knowledge Products and Events Delivered in 2020



Transforming Power Development Planning through Integrating SEA into an IRP Approach in the GMS Region

Energy Publication and documentation

SEEN Transaction Advisory TA

Asia Fintech Policy Roundtable Meeting Finance Event organization SDSC-FIN TA 15th Asia Clean Energy Forum Energy Event organization SDSC TA Review of the ADB Clean Energy Program Energy Publication and

documentation SDSC TA

Handbook on Microgrid for Power Quality and Connectivity Energy Publication and documentation

SDSC TA

Waste to Energy in the Age of the Circular Economy: Handbook of Best Practices

Energy Publication and documentation

SDSC TA

Asian Development Outlook, 2020 Economics Publication and documentation

ERCD Non-TA

Asian Development Outlook Supplement, 2020 Economics Publication and documentation

ERCD Non-TA

Asian Development Outlook Update, 2020 Economics Publication and documentation

ERCD Non-TA

Book Launch "Asia's Journey to Prosperity: Policy, Market, and Technology Over 50 Years"

Economics Event organization ERCD

Closed door policy forum with senior leaders Economics Event organization Asia Small and Medium Enterprise Monitor, 2020 Economics Publication and

documentation ERCD TA

Do Women Benefit from FDI? FDI and Labor Market Outcomes in Cambodia

Economics Publication and documentation

ADBI Admin Core Budget (Staff)

Cambodia Secondary Education Blueprint Education Publication and documentation

SEHS/CARM Policy and Advisory TA

Assessing Skills and Training for Industry 4.0 in High-Growth Industries in Southeast Asia: Cambodia Report

Education Publication and documentation

SDSC-EDU and SEHS/CARM

TA 9415

Assessing Skills and Technology for High-Growth Industries in Southeast Asia: Insights from Cambodia, Indonesia, the Philippines, and Viet Nam


SDCC TA 9415

Science, Technology, Education, and Mathematics (STEM) Study in Cambodia, Uzbekistan, Kyrgyz Republic and Bangladesh


SDSC-EDU and SEHS/CARM

RETA 9415

A workshop on Science, Technology, Education, and Mathematics (STEM) Study in Cambodia, Uzbekistan, Kyrgyz Republic and Bangladesh

Education Event organization SDSC-EDU and SEHS/CARM

RETA 9415

Tax and digitalization workshop Governance and public sector management

Event organization SDCC DRMTF

Appendix 5 19



Ecosystem-based adaptation for improving water sector resilience in Cambodia

Agriculture and natural resources


SEER TA 8179

Gender mainstreaming in climate change adaptation investments in Cambodia



SEER TA 8179

Agriculture, Natural Resources, and Rural Development Sector Assessment, Strategy and Roadmap



SEER DOC budget

Policy brief on Surface Water Resources in Tonle Sap and Lower Mekong River Basins



SEER TA 7610

Policy brief on governance reforms Governance and public sector management


CARM TBC

Women's leadership forum Governance and public sector management

Event organization CARM TBC

Climate Risk Country Profile: Cambodia (joint publication with World Bank, for tentative delivery in Q4 2020)

Climate change Publication and documentation

SDCC/CCDRM TG TA 9414

Total number of publications = 19 Total number of events = 7

ADB = Asian Development Bank; ADBI = Asian Development Bank Institute; CAM = Cambodia, CARM = Cambodia Resident Mission, Southeast Asia Department; CCDRM TG = climate change and disaster risk management thematic group; DOC = Department of Communications; DRMTF = Establishment of the Domestic Resource Mobilization Trust Fund; ERCD = Economic Research and Regional Cooperation Department; FDI = foreign direct investment; GMS = Greater Mekong Subregion; IRP = integrated resource planning; RETA = regional technical assistance; SDCC = Sustainable Development and Climate Change Department; SDSC = Sustainable Development Sector Group; SDSC-EDU = education sector group, sector advisory service cluster; SDSC-FIN = finance sector group, sector advisory service cluster; SEA = South East Asia; SEEN = Energy Division, Southeast Asia Department; SEER = Environment, Natural Resources, and Agriculture Division, Southeast Asia Department; SEHS = Human and Social Development Division, Southeast Asia Department; TA = technical assistance; TBC = to be confirmed;

TRTA = transaction technical assistance.

Source: Asian Development Bank.

20 Appendix 5

Table A5.3: Innovation, Advanced Technology, and Pilot Initiatives to be Implemented in 2021

Item Nature Project Number

Sector or Theme Division

Use of technology (tablet on wheels) for deepening students’ STEM learning in piloted upper secondary schools (enhancing students’ knowledge and skills through hands-on and experimental teaching and learning using tablet on wheels)

PLT 47136-003 EDU SEHS, CARM

Use of ICT for social protection programs PLT 53308-001 SOD CARM, SEHS Use of ICT for public administration and delivery of services at subnational governments INO 53308-001 GOV CARM, SEHS Use of ICT for prevention of livestock epidemics and farm-to-fork traceability of livestock

products INO/PLT 53240-002 ANR SEER

Utilizing a $1 million grant from the High-Level Technology Fund to pilot air-to-water generation technology for supply of drinking water to villages where there is no groundwater during the dry season and for treatment of contaminated groundwater

TCH 0670-0671 WUS SEUW

Deposit protection scheme INO 44263-003 FIN SEPF Total number of innovation, advanced technology, and pilot initiatives = 6

ANR = agriculture, natural resources, and rural development; CARM = Cambodia Resident Mission, Southeast Asia Department; EDU = education; FIN = finance; GOV = governance; ICT = information and communication technology; INO = innovation; PLT = pilot initiative; SEER = Environment, Natural Resources and Agriculture Division, Southeast Asia Department; SEHS = Human and Social Development Division, Southeast Asia Department; SEPF = Public Management, Financial Sector and Trade Division, Southeast Asia Department; SEUW = Urban Development and Water Division, Southeast Asia Department; SOD = social development; STEM = science, technology, engineering and mathematics; TCH = advanced technology; WUS = water and other urban infrastructure and services. Source: Asian Development Bank.

https://www.adb.org/projects/47136-003/main

https://www.adb.org/projects/53308-001/main#project-pds

https://www.adb.org/projects/53308-001/main#project-pds

https://www.adb.org/projects/53240-002/main