Document of The World Bank

FOR OFFICIAL USE ONLY

Report No: 42366-KH

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED GRANT

IN THE AMOUNT OF SDR 12.8 MILLION (US$20 MILLION EQUIVALENT)

TO

THE KINGDOM OF CAMBODIA

FOR A

DEMAND FOR GOOD GOVERNANCE PROJECT

October 23, 2008

Sustainable Development Department East Asia and Pacific Region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS (Exchange Rate Effective - August 31, 2008)

Currency Unit = Cambodian Riel (KHR) KHR 4130 = US$1

US$ 1 = SDR 0.6357

FISCAL YEAR January 1 � December 31

ABBREVIATIONS AND ACRONYMS

AC Arbitration Council ACF Arbitration Council Foundation ACG Anti-Corruption Guidelines (of the WB Group) ACWG Anti-Corruption Working Group (of RGC) AM Amplitude Modulation APR Annual Progress Report ARPI Annual Review of Project Implementation AusAID Australian Agency for International Development AWP Annual Work Plan CAR Council for Administrative Reform CAS Country Assistance Strategy CFA Counterpart Funds Account CMDGs Cambodia Millennium Development Goals CPI Corruption Perception Index CPIA Country Policy and Institutional Assessment CRDAP Cambodia Radio Development Assistance Project CSA Civil Society Assessment CSO Civil Society Organizations D&D Decentralization and De-concentration DANIDA Danish International Development Agency DFGG Demand for Good Governance DFID Department for International Development (United Kingdom) DM Development Marketplace DO District Ombudsman DPM Deputy Prime Minister DST District Support Team EA Executing Agency EAP East Asia and Pacific EMP Environmental Management Plan EMR Electro Magnetic Radiation ExCom Executive Committee (of PRDC) FM Financial Management FMDM Financial Management and Disbursement Manual

FOR OFFICIAL USE ONLY

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization.

iii

FMM Financial Management Manual FY Fiscal Year GAC Governance and Accountability GGF Good Governance Framework GGP Good Governance Plan GMC Grant-Making Committee GTZ Deutsche Gesellschaft fuer Technische Zusammenarbeit (German Technical

Cooperation Agency) IA Implementing Agency IDA International Development Association IEG Independent Evaluation Group IFR Interim Financial Report ILO International Labor Organization INT Integrity Vice Presidency (World Bank) IPA International Procurement Agent IPC Inter-Ministerial Procurement Committee ISA International Standards of Auditing KAF Konrad Adenauer Foundation LICUS Low Income Countries Under Stress LIL Learning and Innovation Loan M&E Monitoring and Evaluation MBPI Merit Based Pay Initiative MEF Ministry of Economy and Finance MOI Ministry of Interior MOLVT Ministry of Labor and Vocational Training MONASRI Ministry of National Assembly � Senate Relations and Inspection

NCDD National Committee for Management of Decentralization and De-concentration

NCDDS NCDD Secretariat NGO NOL

Non-Governmental Organization No Objection Letter

NSA Non-state Actors NSDP National Strategic Development Plan OWSO One Window Service Office PCG Project Coordination Group PCO Project Coordination Office PECSA Program to Enhance Capacity in Social Accountability

PFMRP Public Financial Management Reform Program PIM Project Implementation Manual PMG Priority Mission Group PMT Project Management Team PPF Project Preparation Facility PRDC Provincial Rural Development Committee PST Program Support Team QPPR Quarterly Portfolio Performance Review QPR Quarterly Progress Report RAMP Risk Assessment and Mitigation Plan

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RGC Royal Government of Cambodia RNK Radio National Kampuchea ROC Regional Operations Committee RS Rectangular Strategy RTO Research and Training Organization SI State Institution SIDA Swedish International Development Agency SOE Statement of Expenses SOP Standard Operating Procedures TA Technical Assistance TAF The Asia Foundation TBP Talk Back Program TGGP Transparency and Good Governance Plan TI Transparency International TOR Terms of Reference TTL Task Team Leader UNOPS United Nations Office for Project Services US United States USAID United States Agency for International Development WB World Bank WBI World Bank Institute WDI World Development Indicators WDR World Development Report

Vice President: James W. Adams Acting Country Director: Deborah A. Bateman

Country Manager Qimiao Fan Sector Manager: Cyprian F. Fisiy

Task Team Leader: Bhuvan Bhatnagar

v

CAMBODIA

Demand for Good Governance Project

CONTENTS

Page

I. STRATEGIC CONTEXT AND RATIONALE ..................................................................... 1 A. Country and sector issues.................................................................................................... 1

B. Rationale for Bank involvement ......................................................................................... 4 C. Higher level objectives to which the project contributes .................................................... 5

II. PROJECT DESCRIPTION................................................................................................. 6

A. Lending instrument ............................................................................................................. 6 B. Project development objective and key indicators.............................................................. 7

C. Project components............................................................................................................. 7 D. Lessons learned and reflected in the project design.......................................................... 15 E. Alternatives considered and reasons for rejection ............................................................ 17

III. IMPLEMENTATION....................................................................................................... 19 A. Partnership arrangements .................................................................................................. 19

B. Institutional and implementation arrangements ................................................................ 20 C. Monitoring and evaluation of outcomes/results................................................................ 24 D. Sustainability..................................................................................................................... 25

E. Critical risks and possible controversial aspects............................................................... 27 F. Loan/credit conditions and covenants............................................................................... 32

IV. APPRAISAL SUMMARY ............................................................................................... 35 A. Economic and financial analyses ...................................................................................... 35 B. Technical........................................................................................................................... 36

C. Fiduciary ........................................................................................................................... 36 D. Social................................................................................................................................. 38

E. Environment...................................................................................................................... 39 F. Safeguard policies............................................................................................................. 41 G. Policy exceptions and readiness........................................................................................ 41

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Annex 1: Country and Sector Background ................................................................................... 42

Annex 2: Major Related Projects Financed by the Bank and/or other Agencies.......................... 51

Annex 3: Results Framework and Monitoring.............................................................................. 54

Annex 4: Detailed Project Description ......................................................................................... 82

Annex 5: Project Costs................................................................................................................ 102

Annex 6: Implementation Arrangements .................................................................................... 103

Annex 7: Financial Management and Disbursement Arrangements .......................................... 123

Annex 8: Procurement Arrangements......................................................................................... 138

Annex 9: Economic and Financial Analysis ............................................................................... 172

Annex 10: Safeguard Issues ........................................................................................................ 174

Annex 11: Project Good Governance Framework ...................................................................... 190

Annex 12: Communication Strategy........................................................................................... 209

Annex 13: Risk Management Framework for Non-State Institution Component ...................... 216

Annex 14: Project Preparation and Supervision......................................................................... 225

Annex 15: Proposed Supervision Strategy ................................................................................. 227

Annex 16: Documents in the Project File ................................................................................... 230

Annex 17: Statement of Loans and Credits ................................................................................ 233

Annex 18: Country at a Glance................................................................................................... 234 MAP IBRD 33381R

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CAMBODIA

DEMAND FOR GOOD GOVERNANCE (DFGG) PROJECT

PROJECT APPRAISAL DOCUMENT

East Asia and Pacific Region

EASSO Date: October 22, 2008 (Acting) Country Director: Deborah A. Bateman Sector Manager: Cyprian F. Fisiy Project ID: P101156 Lending instrument: Specific Investment Loan (International Development Association-IDA Grant)

Team Leader: Bhuvan Bhatnagar Sectors: Law and justice (30%); Other social services (22.5%); General public administration sector (17.5%); Sub-national government administration (15%); Media (15%) Themes: Participation and civic engagement; Other accountability/anti-corruption; Decentralization; Judicial and other dispute resolution mechanisms; Other public sector governance. Environmental screening category: B (Partial Assessment) Safeguard screening category: B (Partial Assessment)

Project Financing Data: [ ] Loan [ ] Credit [X] Grant [ ] Guarantee [ ] Other: For Loans/Credits/Others: Total Bank financing (US$m.): 20.00 Proposed terms: Standard grant terms.

Financing Plan (US$m.) Source Local Foreign Total

Borrower IBRD/IDA AusAID (parallel financing to RNK and ACF) Others (parallel contributions to ACF) Total

1.44

1. 44

20.00 3.62

0.22 23.84

1.44 20.00 3.62

0.22 25.28

Borrower: Kingdom of Cambodia Responsible agency: Ministry of Interior Address: 275 Norodom Blvd., Sangkat Tonle Bassac, Phnom Penh, Cambodia Contact Name: H.E. Ngy Chanphal, Secretary of State Fax/Phone: (855) 23721791, (855) 23987082

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Estimated IDA disbursements (FY/US$m) FY 2009 2010 2011 2012

Annual 7.70 4.61 4.27 3.42 Cumulative 7.70 12.31 16.58 20.00 Project implementation period: March 2009 to March 2013 Expected effectiveness date: March 31, 2009 Expected closing date: March 31, 2013 Does the project depart from the CAS in content or other significant respects? Ref. PAD I.C

No

Does the project require any exceptions from Bank policies? Ref. PAD 4.F Have these been approved by Bank management? Is approval for any policy exception sought from the Board?

No N.A. No

Does the project include any critical risks rated �substantial� or �high�? Ref PAD 3.E

Yes

Does the project meet the Regional criteria for readiness for implementation? Ref. PAD 4.G

Yes

Project development objective Ref. PAD 2.B, Technical Annex 3 The development objective of the proposed project is to enhance the demand for good governance (DFGG) in priority reform areas by strengthening institutions, supporting partnerships, and sharing lessons. The state and non-state institutions and partnerships supported will be those that promote, mediate, respond to, or monitor to inform DFGG. The four priority reform areas, where DFGG approaches will be supported are those identified in the Governance Pillar of the Country Assistance Strategy (CAS), i.e., private sector development, management of natural resources, public financial management, and decentralization and citizens� partnerships for better governance. Project description [one-sentence summary of each component] Ref. PAD 2.C, Technical Annex 4 The project has three components: (i) Support to State Institutions, (ii) Support to Non-State Institutions, and (iii) Coordination and Learning. In Component 1, four state institutions will improve and scale up programs that promote, mediate, respond to, or monitor for DFGG in the priority reform areas of the CAS. In Component 2, non-state actors will develop their own programs in the priority reform areas. Some of these programs will be in partnership with the four state institutions supported in Component 1 (funded through partnership grants); others would be independent of them (funded through thematic grants). The third component supports overall coordination of the project and promotes learning, awareness raising and capacity building on demand-side approaches. This, in part, is intended to create a �ripple effect� beyond the institutions and programs supported in Components 1 & 2.

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Which safeguard policies are triggered, if any? Ref. PAD 4.F, Technical Annex 10 Environmental Assessment The safeguard classification of the project is Category B (Partial Assessment). The trigger for the Environmental Assessment (OP/BP 4.01) policy was the Radio National of Kampuchea (RNK) transmitter issue (see PAD para 100). The safeguard measures being undertaken are described in Annex 10. Significant, non-standard conditions, if any, for: Ref. PAD 3.F Board presentation: There are no project-specific conditions for the Board beyond the standard conditions applied to all Bank projects. Loan/credit effectiveness: Beyond the standard conditions, the following are the project-specific conditions for effectiveness:

� The overall Project Implementation Manual (PIM), acceptable to IDA, has been adopted by the Project Coordination Office (PCO);

� The Operational Manual for Component 2, acceptable to IDA, has been adopted by The Asia Foundation (TAF), and cleared by the DFGG Project Coordinator;

� The Project Coordination Group (PCG) and the Grant-Making Committee have been established in accordance with their terms of reference and through a process acceptable to IDA; and

� Subsidiary Agreements have been executed on behalf of the Royal Government of Cambodia (RGC) with the Arbitration Council Foundation (ACF) and TAF.

Covenants applicable to project implementation: The following are the covenants which will be included in the Financing Agreement: Covenants applicable to all IAs and to overall project implementation:

� All project activities shall be carried out in accordance with the appraised Project Proposals and the policies, procedures and processes in the approved PIM, unless previously discussed with and approved by IDA.

� A PCG, with adequately qualified membership, shall meet on a regular basis and carry out its functions, in accordance with the approved PIM, throughout project implementation.

� Annual Work Plans (AWPs) for the next calendar year shall be prepared by each implementing agency (IA) and the PCO by 30th September of each year, starting in 2009, for discussion with IDA, in accordance with the formats specified in the approved PIM, using indicators and methods satisfactory to IDA.

� AWPs, approved by the PCG and the Bank, shall be adopted by each IA and the PCO by 30th December of each year, starting in 2009, for the next calendar year.

� Quarterly Progress Reports shall be prepared by each IA and the PCO, and consolidated by the PCO, in accordance with the formats specified in the approved PIM, using indicators and methods satisfactory to IDA.

x

� Annual Progress Reports shall be prepared by each IA and the PCO by 30th March of the subsequent year for discussion with IDA, in accordance with the formats specified in the approved PIM, using indicators and methods satisfactory to IDA.

� Financial accounts shall be prepared and maintained on the basis of the approved Financial Management and Disbursement Manual for the project.

� Quarterly Interim Financial Reports for each component/subcomponent will be prepared by each IA and submitted separately to IDA within 45 days after the end of each quarter, however, one copy will be provided to the PCO for information sharing and oversight.

� Annual audits of the financial statements for the entire project shall be conducted by independent auditors under terms of reference acceptable to IDA, and will be submitted to IDA within six months of the end of the fiscal year.

� Adequate policies, procedures and resources shall be maintained by the IAs and the PCO to monitor and evaluate progress in project implementation and achievement of development objectives, in accordance with indicators and methods satisfactory to IDA.

� Baselines and other relevant monitoring systems, acceptable to IDA, shall be put in place by the IAs and the PCO by 30th June, 2009.

� The PCO, in collaboration with the IAs, shall organize an Annual Review of Project Implementation by 30th April of each year, starting in 2009, and a Mid-Term Progress Review by 30th June, 2011, using indicators and methods satisfactory to IDA.

� A Final Evaluation Report shall be prepared by the PCO, in collaboration with the IAs, for discussion with IDA by 30th June, 2013, using indicators and methods satisfactory to IDA.

� Each IA and the PCO shall ensure that project implementation is carried out in accordance with the provisions of the signed Good Governance Framework and the Anti-Corruption Guidelines in a manner satisfactory to IDA.

� The PCO shall develop and implement the Merit Based Pay Initiative Manual and the Priority Mission Group Manual, both satisfactory to IDA, throughout the implementation of the Project; and not amend, suspend, abrogate, repeal or waive any provisions of the said manuals without the prior agreement of IDA.

Covenants applicable to specific components or subcomponents are highlighted in the PAD (see para 83).

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I. STRATEGIC CONTEXT AND RATIONALE A. Country and sector issues 1. Cambodia has achieved impressive growth and poverty reduction over the last decade. Emerging from decades of civil conflict, the country has restored peace and political stability. Although Cambodia remains one of the poorest countries in the world with a per capita income of US$ 480.00 per annum, its economic growth averaged 7.1 percent in the decade from 1994-2004 (WB 2006), and reached 10.2 percent in 2007. At the same time, poverty rates have fallen from an estimated 47 percent to 35 percent between years 1994 and 2004 (WB 2006), with reference to the National Poverty Line of roughly US$ 0.45 per day. 2. While the country has made good progress on these fronts, the governance environment remains weak. Cambodia comes close to the bottom for most indicators of governance. The CPIA ratings for �property rights and rule-based governance�, �quality of public administration�, and �transparency and control of corruption� indicators remain at 2.5 on a 1 to 5 (best) scale, placing it among the lowest-rated IDA countries. The WBI Governance Indicators ranked the country in the eighth percentile in terms of control of corruption and the twenty-first percentile in terms of government effectiveness for 2007. A recent study found that most institutions in the national governance system are still weak, if not dysfunctional (TI 2006). The study also noted that combating widespread corruption will take years of reforms, and will require strong and sustained political will. 3. Governance improvements will be critical for continued high growth and poverty reduction. Extensive global research over the last two decades convincingly shows that the quality of governance has a significant impact on economic growth and poverty reduction. The Government has recognized the importance of strengthening governance in its National Strategic Development Plan (NSDP) 2006-10 and in the Rectangular Strategy (RS) 2004-08. It has identified key areas for governance reform including the legal and judicial system, public financial management, public administration, and decentralization. The need to implement such reforms has become increasingly urgent with the prospect of significant revenues from the extraction of oil, gas and mineral resources. 4. Progress in strengthening governance has been uneven and relatively slow. A good start has been made with respect to public financial management reforms, decentralization, and the use of participatory processes by the Government in preparing the National Poverty Reduction Strategy. Overall, however, the capacity of the public administration system and the accountability institutions remain weak and progress has been slower than expected in implementing the needed reforms. There have been significant delays in key initiatives such as the passage and implementation of the anti-corruption law, adoption of a policy framework for access to information, and dissemination of information on corruption cases (WB 2007a). Finally, recent fiduciary challenges in donor-supported operations in Cambodia have highlighted

2

the urgency of tackling corruption and improving transparency and accountability. 1 5. There is a need for a broader engagement in governance reform. It is becoming increasingly evident that the Government alone cannot address the multiple dimensions of governance challenges � no matter how much it is supported by donors� unless there is a parallel effort involving a broad range of stakeholders (WB 2007c; Ackerman 2004; Ackerman 2005). Critical among these are non-state actors (NSAs) such as non-governmental organizations (NGOs), community organizations, independent media, think tanks and citizens themselves. Involvement of NSAs can add credibility to the Government�s efforts and help sustain improvements in governance. In a country where public administration capacity and systems are weak, NSAs can help promote greater awareness of reform processes, enhance their transparency, and make them more responsive to the needs of citizens. 6. Expanding the engagement of non-state actors in governance is challenging. There is a relatively strong presence of NSAs, in particular NGOs and the media (WB 2007b) in Cambodia. However, their effectiveness is often constrained by problems of proliferation, fragmentation, and limited scale of interventions, as well as by insufficient coordination, and uneven links with Cambodian grassroots and the state. Their participation in governance reforms has also been hindered by their limited understanding and knowledge of, and capacity for promoting transparency and accountability in, public sector programs. Further, improvements in the internal management and accountability systems of NSAs themselves are required to enhance their credibility vis-à-vis government and citizens. In addition, some NSAs have adopted confrontational approaches in their dialogue with the Government, thereby limiting constructive engagement. Conversely, NSAs sometimes feel undermined by government restrictions and lack of responsiveness. 7. Prospects for constructive engagement between the Government and non-state actors are improving. While the Government has had limited engagement with NSAs in the past, there is a slow shift in its perception and approach. It has publicly recognized that �achieving good governance will require the active participation and commitment of all segments of the society, enhanced information sharing, accountability, transparency, equality, inclusiveness, and the rule of law� (RGC 2004). A number of key Government policy documents, such as the RS, the Governance Action Plan, and the Decentralization and De-concentration (D&D) Strategic Framework, recognize the helpful role civil society can play in governance processes. With encouragement from the donor community, the Government has created a space for engagement of civil society in a number of reform and policy processes (e.g., in Consultative Group meetings, drafting of new laws, and Technical Working Groups). This is clearly a positive change, although the quality and openness of some consultation processes can be enhanced, and more is required in terms of institutionalization. Additionally, there is an increased awareness among citizens on matters related to governance and corruption (PACT 2007) and a limited but growing domestic constituency making claims for better governance.

1 Past investigations by the World Bank�s Integrity Vice Presidency (INT) in various sector projects found instances of fraud, corruption and collusion in some of the procurement process and implemented contracts.

3

8. Promising governance initiatives within the state also need to be strengthened. While support to NSAs is a key part of any new approach to tackle governance challenges in Cambodia, further reform is also needed within the state. In different parts of the Government, a few institutions have emerged as �islands of good governance�. These have attempted to increase the transparency and accountability of their programs and activities to the public. But often these state initiatives tend to be small-scale, dispersed, and resource-constrained. Their expansion, consolidation, and sustainability are not guaranteed. Moving forward, these promising institutions and initiatives would have to be strengthened. These would also benefit from being brought together, with each other and with NSAs, for exchange of ideas and experiences, and tapping of potential synergies and impact to be derived from collaboration. 9. The approach must be long-term. Given the challenges of post-conflict reconstruction and the magnitude of governance issues faced by the country, a long-term approach to strengthening relevant institutions, programs and mechanisms is needed. Experience in this area shows that supporting difficult governance reforms will take a sustained effort over at least ten to fifteen years (WB 2007c). This must be kept in mind when developing and assessing any new proposal for engagement in this area. 10. In this context, the proposed project will complement �supply-side� with �demand-side� approaches for good governance. Traditionally, initiatives to improve governance have focused on the �supply side,� namely the strengthening of the civil service, public administration, and public financial administration. However, a growing body of international experience is showing that stimulating demand-side approaches is critical to successful governance reform.2 Accordingly, while supply-side efforts are necessary, broader and more lasting results may only be achieved if complemented by measures that strengthen the �demand for good governance� (DFGG). The Government has expressed a willingness to go beyond supply-side approaches for improving governance and asked the Bank to assist in the design and financing of a project to strengthen DFGG. It understands, however, that no single project can address all the challenges for promoting DFGG and a comprehensive, long-term effort will be required.

2 A growing body of international experience shows that DFGG approaches contribute to improvements in governance and service delivery. For evidence see (i) Reinikka, R. and Svensson, J.: The Power of Information: Evidence from a Newspaper Campaign to Reduce Capture, Policy Research Working Paper 3239, World Bank, Washington, D.C. March 2004; (ii) Svensson, J. and Bjorkman, M: Power to the People: Evidence from a Randomized Field Experiment of a Community-Based Monitoring Project in Uganda, Policy Research Working Paper 4268, June 2007; and (iii) World Development Report 2004: Making Services Work for Poor People, World Bank, Washington, D.C., 2004. Similarly, citizen participation in monitoring of public expenditures, service delivery, and government performance contributes to making governments more responsive and accountable to citizens. For evidence see: (i) Robinson, M.: Budget Analysis and Policy Advocacy: The Role of Nongovernmental Public Action, Institute of Development Studies, Working Paper 279, Sussex, September 2006; (ii) Case Study 2 - Porto Alegre, Brazil: Participatory Approaches in Budgeting and Public Expenditure Management, Social Development Notes, No. 71, The World Bank, March 2003.; (iii) Sirker, K., and Cosic, S.: Empowering the Marginalized: Case Studies of Social Accountability Initiatives in Asia, The World Bank Institute, 2007; and (iv) Social Accountability Series by South Asia Sustainable Development Department (2007).

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11. Defining DFGG. Conceptually, DFGG refers to the extent and ability of citizens and other NSAs to enhance their �voice� and hold the state accountable, making it responsive to their needs. In turn, DFGG enhances the capacity of the state to become more transparent, accountable and responsive to citizens. The strengthening of DFGG can be done in four ways (see Annex 3 for further details):

(a) by disclosing, demystifying, and disseminating key information on government policies, programs and budgets to citizens, and enhancing their capacity to act on this information (i.e., by promoting demand);

(b) by creating and strengthening formal and informal avenues of consultation, feedback, and dispute resolution between citizens and public officials (i.e., by mediating demand);

(c) by developing programs and initiatives (mostly) within the state that answer to the demand for services, either through improvements and innovations in service delivery, performance incentives, or joint planning (i.e., by responding to demand); and

(d) by promoting regular monitoring and oversight of the public sector by independent actors such as the media, civil society and citizens (i.e., by monitoring to inform demand), thereby generating key information that feeds back into the process of promoting DFGG and completing as well as continuing the demand cycle.

12. The project will support these four ways of strengthening DFGG by both working with NSAs and building on promising state- led innovations, as described in more detail below. B. Rationale for Bank involvement 13. The project is responding to calls for broader engagement in Cambodia. The Governance and Anti-Corruption (GAC) Strategy of the Bank has emphasized the important role of constituencies outside the state executive, particularly in challenging governance environments such as that in Cambodia (WB 2007c). Cambodians consulted in the context of the GAC Strategy noted that the Bank has provided leadership on supply-side governance reform in the past; they also considered that the Bank was well placed to work with a broad range of stakeholders � the private sector, civil society, donors, parliamentarians, media and reformers within the Government � to create a stronger demand for good governance. The Bank is, in part, responding to this urging for broader engagement through this project. 14. The project is fully consistent with the governance focus of the CAS and complements the demand-side work of other Bank operations. The Bank has prioritized support to demand-side approaches to good governance in the current Country Assistance Strategy (CAS), and has gradually increased its involvement in this area through a series of activities: a Civil Society Assessment (CSA) which maps the sector and assesses its potential for engagement in DFGG activities; a US $1.00 million component for civil society activities in additional financing through the on-going Rural Infrastructure and Local Governance Project; grants to NGOs under the Small Grants Program; an Institutional Development Fund grant to support government-civil society consultations on the legal and policy environment for NGOs and associations; advice to the Government on the preparation of a policy on public access to information; activities related

5

to citizen participation and enhanced disclosure of information in five on-going projects; a US$ 2.00 million grant from the Low Income Countries Under Stress (LICUS) Trust Fund for a Program to Enhance Capacity in Social Accountability (PECSA) for NSAs; and a proposed Empowerment of the Poor in Siem Reap Project that, inter alia, will strengthen poor people�s organizations and better link them to the tourism sector. Complementing and building on these initiatives, the DFGG project will be the first free-standing and full-scale effort in this area. 15. The Bank has increasing knowledge and experience in demand-side approaches to governance reform. While there is a growing interest in demand-side approaches in Cambodia, especially in civil society, there is limited knowledge and experience of the �state of the art.� The Bank can help fill this gap. It has links to community leaders, NGO practitioners, government officials, academics and others around the world who have pioneered and practice demand-side approaches, although often on a small-scale and in a dispersed manner. Building on the work of these practitioners, it is supporting DFGG work in several countries. The Bank can thus draw on this cross-national knowledge to transfer best global practices and experiences to Cambodia. In this way, it can provide substantial value-added in the design and delivery of DFGG in Cambodia, with appropriate contextual adaptation. 16. The Bank is well positioned to complement the work of others in Cambodia in strengthening DFGG. Several donors and international NGOs have longer histories of supporting demand-side activities in Cambodia (see Annex 2 for further details). However, past efforts have often only involved civil society organizations (CSOs), and were viewed with suspicion and mistrust by the Government. This experience suggests that, in the Cambodian political context, such efforts can only be effective when there is cons tructive engagement between the Government and NSAs. Enjoying, as it does, strong working relationships with both key CSOs and the Government, the Bank is well placed to facilitate such engagement. C. Higher level objectives to which the project contributes

17. The project will contribute to long-term efforts to strengthen governance in Cambodia. Addressing governance issues involves changing behaviors and building capacities, which typically entail long-term processes. In addition, experience from other countries suggests that demand-side efforts often face opposition from those having vested interests in the status quo. Thus, a significant and lasting impact on governance will require a series of cumulative initiatives over time rather than any single intervent ion. The project can contribute, in a modest way, to the Government�s and the Bank�s higher level objectives of gradually improving governance, and, can demonstrate approaches for building DFGG in Cambodia. It is intended to create a �ripple effect� within the country, informing, complementing and facilitating the work of others. 18. CAS objectives will be supported through the project. The project will focus on DFGG activities in the four priority reform areas selected for support under the Governance Pillar of the CAS, namely: (i) promoting private sector development; (ii) strengthening the management of Cambodia�s natural resources; (iii) improving public financial management; and (iv) supporting decentralization and promoting citizens� partnerships for better governance (WB 2005). These are sectors which have significant strategic importance for the overall national development

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agenda and in which governance issues are binding constraints (as discussed in Annex 1). The project provides an opportunity to strengthen the linkages between demand-side approaches and supply-side activities supported through a number of operations in these sectors. The specific CAS outcomes to which the project will contribute are shown in Table 1 below.

19. The project will promote learning about demand-side approaches. The project will, in a modest way, break new ground for demand-side approaches by working with both state and non-state actors concurrently, and constructively linking their work. This is expected to generate lessons of practical relevance both for Cambodia and other countries into what works, what does not and why, in the area of DFGG. The project could also pave the way for future work on strengthening governance in Cambodia as well as other countries. Therefore, beyond governance and sectoral objectives, the project will contribute to higher-order learning objectives. To this end, an active and fully funded learning-by-doing approach and a robust monitoring and evaluation (M&E) system have been included in the project.

II. PROJECT DESCRIPTION A. Lending instrument 20. Specific Investment Grant. The project will be financed by IDA through a Specific Investment Grant for US$ 20.00 million equivalent. An alternative considered was the use of a series of separate Learning and Innovation Loans (LILs)/Grants � one for each institution. This option was rejected, however, as it was considered to restrict the achievement of the project development objective. This requires bringing together and linking several state and non-state institutions, working on different sectors and different dimensions of DFGG, and using the demonstration effect to provide pointers and inspiration for others. The promotion of synergies, learning and dissemination across a broad array of institutions calls for a concerted operation which would be difficult within the constraints of a LIL, or even a series of LILs. Thus, a Specific Investment Grant was chosen as the optimal instrument.

Table 1. CAS outcomes to which the DFGG Project will contribute

• Increased awareness of laws relating to land. • Increased involvement of citizens and NGOs in tracking service delivery through social accountability

mechanisms. • Improved capacity of CSOs to analyze the impact of budget allocations and provide feedback at local

and national levels . • Improvements over time in citizens� perceptions of public service quality based on citizen surveys. • Capacity of CSOs strengthened for applying social accountability tools. • Methods in place to increase the dissemination of laws and policies to civil society and citizens. • Increased availability, dissemination and use of public information to increase accountability. • Increased ability of citizens to interpret and use public information. • Greater use of media to disseminate and discuss information on government actions and public policies. • Media begins to report on public policy issues and civil society efforts on social accountability. • Greater involvement of citizens in accountability processes at national and sub-national levels. (Source: Results Matrix, Cambodia CAS FY05-08)

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21. Full grant financing from IDA was requested by the borrower in view of the nature of the activities being funded. Parallel financing to the IDA Grant will be provided by the Australian Agency for International Development (AusAID) to support two of the project subcomponents (see paras 30 and 33). B. Project development objective and key indicators 22. Development Objective. The development objective of the proposed project is to enhance the demand for good governance in priority reform areas by strengthening institutions, supporting partnerships, and sharing lessons. The state and non-state institutions and partnerships supported will be those that promote, mediate, respond to, or monitor for DFGG (see para 11). The four priority reform areas, where DFGG approaches will be supported are those identified in the Governance Pillar of the CAS, i.e., private sector development, management of natural resources, public financial management, and decentralization and citizens� partnerships for better governance (see para 18). 23. Outcome Indicators. The key outcome indicators for the overall project are composite indicators that capture the extent to which the state and non-state institutions and programs supported by the project are effective in promoting, mediating, responding to, or monitoring to inform DFGG. The intermediate outcome indicators for the overall project are: (a) strengthened capacity to undertake DFGG activities in state and non-state institutions, (b) increased number and enhanced effectiveness of partnerships between and among state and non-state actors, and (c) increased number of Cambodian lessons and experiences in DFGG activities assessed and communicated (see Annex 3 for further details). 24. These key outcome indicators will be assessed through a combination of quantitative and qualitative methods. In addition, the M&E design calls for tracking of inputs, outputs, processes, and impacts of the activities carried out by specific project components and subcomponents (see paras 70-74). C. Project components 25. Overview. The project has three components: (i) Support to State Institutions, (ii) Support to Non-State Institutions, and (iii) Coordination and Learning. In Component 1, four state institutions will improve and scale up programs that promote, mediate, respond to or monitor for DFGG in the priority reform areas of the CAS. In Component 2, non-state actors will develop their own programs in the priority reform areas. Some of these programs will be in partnership with the four state institutions supported in Component 1 (funded through partnership grants); others would be independent of them (funded through thematic grants). The project includes separate funding channels for state and non-state actors so as to avoid competition for a limited pool of funds. 26. The third component supports overall coordination of the project and promotes learning, awareness raising and capacity building on demand-side approaches. This, in part, is intended to create a �ripple effect� beyond the institutions and programs supported in Components 1 and 2. The three components and their subcomponents are described below (see Annex 4 for further details).

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Component 1: Support to State Institutions [Estimated cost US$ 15.91 million; IDA financing US$ 10.66 million3] 27. The project�s first component will support four state institutions (SIs) and their programs. These institutions have committed leadership and/or demonstrated success in fulfilling one or more of the DFGG functions (promotion, mediation, response or monitoring). In addition, they are active in the priority reform areas of the CAS.4 The institutions were selected as Implementing Agencies (IAs) for the project through a thorough process of consultations with Government, donors, civil society organizations and citizens over a six-month period. This generated a shortlist of potential candidates for support. The selection process was further informed by an existing assessment of options for increasing social accountability in Cambodia carried out by the Department for International Development (DFID) and the Bank country team (Burke and Vanna 2005), and two rapid institutional assessments of transparency institutions undertaken by different Bank teams (Bou and Salazar 2005; Mohan 2006). Inputs were also sought from the project�s key counterpart agency, the Ministry of Interior (MOI). Finally, a rapid but insightful political economy analysis was conducted to identify leaders and organizations that were likely to support demand-side approaches in the Government. 28. Nature of Support: The nature of expected support to the selected institutions will vary, but will generally cover: (a) improving and scaling up the scope and coverage of existing operations; (b) piloting new initiatives; (c) adding communication and partnership programs to support and extend these activities; (d) building capacity through technical assistance (TA) and training; (e) improving facilities, office equipment, supplies, and transportation; (f) providing performance-based salary incentives; (g) supporting M&E and learning activities, (h) implementing fiduciary arrangements; and (i) using other anti-corruption, good governance and risk management measures. Given the mixed track record of capacity building support in international development programs, a judicious combination of formal and informal training, mentoring, coaching, learning-by-doing, and study tours will be supported under this component. These different methods are expected to provide lessons regarding capacity enhancement processes in support of DFGG. 29. Component 1 will be structured into four subcomponents, each corresponding to one of the chosen SIs. The following provides a brief institutional profile, highlighting the ways in which they enhance DFGG in the priority reform areas of the Government�s RS and the Bank�s CAS, and summarizes the activities to be supported by the project (see Annex 4 for further details).5

3 Other sources of financing for this and other components include Government funding, parallel financing from AusAID, and stakeholder contributions (for the Arbitration Council). These contributions are detailed in Annex 5 and the PAD Data Sheet. 4 Through the process described in this paragraph, four state institutions were selected for support in the project. These fall under three out of the four priority areas in the Governance Pillar of the CAS. Originally, a fifth state institution � the National Assembly Committee on Budget � was also included as it linked to the remaining priority reform area, i.e., Public Financial Management. However, this state institution was dropped because there was no forthcoming reform champion to lead project preparation. This prioritization also helped simplify the overall design of the project. 5 The detailed project proposals for each subcomponent are included in the project files and available upon request.

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30. Component 1A: Support to the Arbitration Council (AC) {Estimated cost US$ 2.76 million; IDA financing US$ 2.34 million6} - The AC is a state institution linked to the Ministry of Labor and Vocational Training (MOLVT). As a quasi-judicial authority, it is mandated to resolve, through voluntary mediation and mandatory arbitration, collective labor disputes which cannot be settled through prior conciliation (undertaken by the MOLVT). Since its establishment in 2003, the AC has provided a fast, transparent, and fair (law-based) service to firms and employees, mainly in the garment sector. The only example of it s kind in South East Asia, it is a model body that demonstrates the Government�s commitment to upholding the International Labor Organization�s (ILO) Core Labor Standards and showcases the potential of alternative dispute resolution mechanisms in mediating DFGG. The project will sustain, strengthen, and allow the scale-up of the AC�s capacity to effectively mediate and resolve labor disputes. It will improve the institution�s research and analytical capacity; provide effective tools and access to specialized TA; expand its services to other geographic and economic sectors (beyond Phnom Penh, and garments); and expand training, outreach and dissemination programs. A further area of focus is the strengthening of the AC�s institutional and financial sustainability beyond the project�s implementation period. In this way, the subcomponent will contribute to the RS and CAS objective of promoting private sector development by enhancing a credible and fair mechanism for resolving disputes between employers and employees. 31. Component 1B: Support to the Ministry of National Assembly-Senate Relations and Inspection (MONASRI) {Estimated cost US$ 2.50 million; IDA financing US$ 2.42 million} � This relatively new Ministry was set up to provide an interface between the executive and legislative arms of the state and provide an oversight function. Its mandate includes law dissemination and complaints handling, but to date it has little capacity or resources for these roles. The project support to MONASRI will focus on these two areas, in particular, with respect to one single piece of legislation � the Land Law, recognized as one of the most relevant for Cambodians and for which there remain persistent problems of enforcement. The project will introduce a new results-oriented and partnership-based way of doing business. Starting with a small number of provinces in Year 1, there will be a gradual scale-up to the nationwide level by Year 4 of the project. Lessons will be learned throughout the implementation period. The component is expected to promote and mediate DFGG by strengthening MONASRI�s capacity to inform citizens of their rights under the Land Law and provide an effective channel for complaints and concerns to be expressed, carrying out these functions by establishing and expanding partnerships with other SIs and NSAs. The lessons learned by MONASRI in law dissemination and complaints handling with respect to the Land Law are expected to be mainstreamed by the agency and used for other critical laws in the future. In this way, the subcomponent will contribute to the RS and CAS objectives of improving the management of natural resources and the rule of law. 32. Component 1C: Support to the One Window Service Office (OWSO) and District Ombudsman (DO) Office {Estimated cost US$ 4.76 million; IDA financing US$ 3.53 million} - The OWSO is a pioneering experiment in providing administrative services to citizens and small businesses under a single roof and in a speedy, transparent, and corruption-free manner. The DO

6 Component 1A will receive US$ 200,000 in parallel financing support from AusAID to provide the seed funding for operational costs of the Arbitration Council Foundation (ACF), an NGO, which will manage the implementation of this subcomponent. See Annex 6 for further details on the institutional arrangements for Component 1A.

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is an avenue for receiving complaints from citizens, the business community and civil society on the performance and conduct of district officials. These institutions respond to and mediate DFGG and have been piloted by the MOI in two provinces in the northwest of the country (Siem Reap and Battambang). Given the promise and initial success of these pilots, the project will provide support for establishing similar offices in one urban district in each province of the country (except Phnom Penh).7 Starting with a limited number of provinces in Year 1, the project will gradually scale up to cover all provinces. The phased implementation will enable lessons to be learned in the process. Further, the intention is to significantly improve and strengthen these institutions through capacity building, improved equipment, enhanced competencies, more partnerships (with other SIs and NSAs) and wider outreach. A series of citizens� participation and feedback measures will also accompany the introduction of these district institutions. The subcomponent will help pilot flagship reforms at the district level which will guide the implementation of the recently-adopted Organic Law on Sub-national Democratic Development. In this way, the subcomponent will contribute to the RS and CAS objectives of supporting decentralization and promoting citizen�s partnerships for governance. 33. Component 1D: Support to Radio National of Kampuchea (RNK) {Estimated cost US$ 5.89 million; IDA financing US$ 2.38 million} � This component builds on the AusAID-funded Cambodia Radio Development Assistance Project (CRDAP) that introduced the popular �Talk Back Program� (TBP), modeled on radio call- in-shows. The TBP invites senior government officials to share information about their policies, programs and budgets, and provides opportunities for citizens to call in and directly question public officials. The project will expand TBP�s coverage, introduce new feature stories on governance issues, and revamp the newsroom function in RNK, which is the only broadcaster of AM programs in the country covering remote and rural areas. To provide RNK the required editorial freedom, an Editorial Policy and Code of Conduct have been introduced during project preparation. Additionally, through continued AusAID-funded technical assistance, the organizational capacity of RNK will be developed to produce and broadcast quality information services, manage its corporate functions, and develop and initiate a long-term sustainability strategy. These measures will help RNK increase its public interest programming and audience share, and begin its transition into a public radio broadcaster engaged in promoting and mediating DFGG. 8 In this way, the subcomponent will contribute to the RS and CAS objective of promoting citizen�s partnerships for governance by strengthening the media. Component 2: Support to Non-state Institutions [Estimated cost US$ 4.27 million; IDA financing US$ 4.27 million] 34. Though the state can do much to enhance opportunities for citizens to contribute to better governance, whe ther or not people seize these opportunities depends critically on the support and guidance they receive from CSOs and other independent actors outside the state. However, in Cambodia, NSAs themselves are in need of capacity development in use of DFGG approaches and need sustained support (see para 6). Hence the second component of the project is designed to provide grants and capacity building assistance to NSAs so as to strengthen their governance-

7 As the current model may not function in a city the size of Phnom Penh, no OWSO will be set up there. Instead a study into possible OWSO models that could be applied in Phnom Penh will be undertaken in Year 2 of the project. 8 Private media support for public interest broadcasting has often been lacking, presumably due to a lack of commercial return.

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related work.9 This will be the first Bank-financed project in Cambodia (and perhaps the first for the Bank overall) to provide such support on a large scale. To ensure its independence, the Government has agreed that this component will be implemented by The Asia Foundation (TAF), a non-state actor with adequate capacity, experience and presence in Cambodia (see paras 64-65). 35. Components 2A and 2B: Grant Financing {Estimated cost US$ 3.99 million; IDA financing US$ 3.99 million} - These components will provide funds to various NSAs (such as, national and local NGOs, other grassroots organizations, independent policy and research centers, independent media, professional associations,10 business associations,11 and trade unions) to support their proposals for scaling up ongoing or piloting new activities that strengthen DFGG and contribute to specific development or sector objectives (see below). All NSAs receiving grants will be required to commit to a set of constructive engagement principles, which are being prepared in consultation with the Government and NSAs. There will be two categories of grants:

(a) Partnership Grants {Estimated cost US$ 1.03 million; IDA financing US$ 1.03 million} - Approximately 25 percent of grant funds allocated to this component would go to activities designed and proposed by NSAs but to be implemented in partnership with one or more SIs targeted in Component 1 (see paras 30-33). These grants are intended to promote ways and means for the four SIs and NSAs to work together to extend the reach, scope and effectiveness of their programs including independent monitoring of and assessments of the state institutions� activities. Through partnership grants, for example, CSOs might undertake to prepare particular communities or social groups to respond to the feedback opportunities afforded by RNK, or to pioneer new feedback mechanisms that would enhance the effectiveness of the DO in the OWSO.

(b) Thematic Grants {Estimated cost US$ 2.96 million; IDA Financing US$ 2.96 million} -

The bulk of the grant funds (about 75 percent) would go to support NSA-led DFGG initiatives in the four priority reform areas of the CAS, which would be independent of the activities of the four SIs to be funded under Component 1. Thematic grants will facilitate mainstreaming of DFGG in the key sectors12 where governance issues are binding constraints for poverty reduction in Cambodia (see para 18). These are meant to enhance citizens� contributions to governance, promoting innovations in social accountability, strengthening networking, building coalitions and dialogue with state actors, and improving the enabling environment for DFGG. Activities supported by thematic grants might include, for example, monitoring natural resource extraction or revenue flows in several provinces by a network of national NGOs and grassroots organizations, supported by an independent research center; or, campaigning for and

9 The detailed proposal for this component is included in the project files and available upon request. 10 These include national associations for accountants and auditors. 11 These include the national chambers of industry and commerce. 12 These are: private sector development, natural resources management, decentralization and citizens� partnerships, and public financial management.

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contributing to the preparation of a Freedom of Information framework by a coalition of independent media groups.13

36. The project will provide three different sizes of grants. The Bank-commissioned CSA (WB 2007b) and consultations during project preparation14 indicate that funding and capacity building needs are likely to vary across types of initiatives and NSAs. Thus different sizes of grants would be germane (although without rigid boundaries). Firstly, there is a shortage of national- level NSAs (e.g. professional associations ) and national coalitions reaching to grassroots and province level or offering horizontal linkages between DFGG practitioners, for which large grants (from US$ 50,000-150,000) would be needed. Medium-scale grants (from US$ 15,000-50,000) would be best suited for the scaling up of pilots, supporting innovations based on social accountability practices that have been proven in other countries, or for strengthening geographic or sector-specific networks. And, finally, small grants (up to US$ 15,000) would be most appropriate for supporting grassroots initiatives or piloting new DFGG ideas. Hence, two grant-making mechanisms will be used:

(a) Development Marketplace-like competition.15 Two high-profile events will be held during the implementation period of the project in which applicants will compete for medium and large grants. The application process will be open to all NSAs, though there will be more rigorous requirements for applicants for larger grants. The events will also serve as learning forums, providing a �trade fair� flavor in which practitioners present displays about their experiences and workshops on matters of governance are held.

(b) Small Grant process. There will be a swift, one-stop process for deciding on smaller

grants. These are meant to especially support grassroots organizations that may be intimidated by the high-profile process described above, and groups wanting to quickly test a promising approach.

37. Component 2C: Capacity Building and Learning: {Estimated cost: US$ 0.28 million; IDA financing US$ 0.28 million} � Recognizing that capacity building for NSAs is as important as providing funds to them, this component will provide support for building the capacity of NSAs in social accountability, continuing the momentum of PECSA (see para 59). Capacity building assistance will include help in preparing cost-effective project proposals and viable project implementation strategies, as well as training in fiduciary matters. It will engage skilled evaluators, independent institutions and communication specialists to provide support in its M&E activities and in the dissemination of experience. In addition, a multi-stakeholder Grant-Making Committee (GMC) will be formed and given full independence to make funding decisions (see para 67). 38. Flexibility. Recognizing its innovative character, the component design builds in considerable flexibility. Experience will be assessed at three different points in project 13 A negative list of items that cannot be funded (e.g., civil works or environmentally hazardous goods) will also be included for both types of grants . 14 These included consultations in Phnom Penh and six different regions of the country. The regional consultations brought together NSAs from different provinces and districts covering a large part of Cambodia. 15 The Development Marketplace will be adapted and renamed for the Cambodian context. It will be given a Khmer brand name that will resonate locally and generate widespread buy-in and interest.

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implementation: (i) after conclusion of the PECSA pilot;16 (ii) after the first development marketplace (DM)-like event; and (iii) at the project�s mid-term review. All three inputs may lead to adjustments in design of the component � e.g., in grant criteria and grant-making mechanisms, in allocation of resources across grant categories and/or mechanisms, in the purposes for which these are allocated, or yet in the balance between grants and capacity building programs. In addition, following up on the CSA, and before implementation starts, the project will undertake a more detailed and systematic mapping of NSAs, especially at the national level, as well as their funding and capacity building needs. This will help further fine-tune project actions to different types of NSAs and their needs. 39. In sum, this component is aimed at facilitating greater effectiveness of the Component 1 SIs (through the Partnership Grants) and extend ing DFGG approaches more broadly throughout the four priority reform areas (through the Thematic Grants). The experience of collaboration with the state is in turn expected to foster a culture of constructive engagement that NSAs would carry over to other contexts. The component is highly unusual for a Bank-financed project; hence it is admittedly untried, untested and risky. However, the strong returns expected from bringing NSAs into more prominent governance roles in Cambodia justify the risks. Anticipation of areas of vulnerability also permits timely identification of measures that would both reduce their likelihood and/or mitigate their impact. To this end, the project has prepared a detailed Risk Management Framework for the component, which anticipates likely political, institutional, sustainability and other risks and proposes specific measures to address them (see Annex 13 for further details). Component 3: Coordination and Learning [Estimated cost US$ 2.45 million; IDA financing US$ 2.42 million] 40. The diverse themes and multiple institutions involved in the project require a solid system for coordination and oversight of project implementation across the IAs. Further, given the novel nature of the project, an approach of continuous learning and sharing of experience is also proposed. Thus, the third component of the project will have two subcomponents, focusing on coordination and learning respectively. 41. Component 3A: Coordination of DFGG Project Implementation {Estimated cost: US$ 1.52 million; IDA financing US$ 1.50 million} - This component will support effective implementation of the project overall, ensuring its timely progress and strategic relevance vis-à-vis the evolving Cambodian context. As the project�s Executing Agency, the MOI, will have a coordinating role, working closely with the IAs to ensure that the project�s overall development objectives are achieved. To this end, it will establish the Project Coordination Office (PCO), the multi-agency Project Management Team (PMT), and the Project Coordination Group (PCG) (see para 68) that will support project implementation in key management areas. It will also prepare a Project Implementation Manual, setting forth guidelines and procedures, and roles and responsibilities of different project actors. The MOI will manage the Annual Work Plan cycle, coordinating preparation and implementation of work programs and budgets. The PCO will serve as the Secretariat of the PCG, promoting information-sharing across IAs and addressing

16 PECSA will help test and fine-tune the grant-making mechanisms by providing a limited number of NSAs with social accountability grants and by road-testing the GMC and its selection processes. These two grant-making mechanisms will be scaled up through Component 2 of the project.

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implementation problems as they arise. It will ensure attention to project fiduciary (audit, procurement and financial management), safeguard (environmental and social), and governance (anti-corruption and risk management) issues, providing capacity building assistance to IAs in areas of common interest. It will also serve as principal liaison with the Bank, facilitating project supervision, providing periodic progress reports, and organizing an Annual Review of Project Implementation (ARPI). And, as part of its coordination role, the MOI will also be charged with ensuring complementarities and harmonization with other donor programs of relevance, through mechanisms such as the ARPI, the Annual Good Governance Forum (see below), and periodic meetings and assessments. 42. Component 3B: Learning. {Estimated cost: US$ 0.93 million; IDA financing US$ 0.93 million) - Beyond ensuring effective implementation of the project, this component will seek to support the broader, gradual, and necessarily longer-term process of governance reform in Cambodia by raising awareness of and building capacity in designing and implementing DFGG activities across and beyond the institutions directly supported by Components 1 and 2. By pursuing a proactive posture of dialogue with the IAs and establishing a Learning and Communication Focus Group (LCFG) that would identify opportunities for cooperation the subcomponent will promote cross-fertilization and synergies across the IAs. Through an Awareness Raising and Capacity Building Program, it will promote learning about and adoption of DFGG approaches and practices, by supporting an Annual Good Governance Forum,17 workshops and seminars more specifically focused, and study tours. Through a Communications Program, it will enhance understanding and visibility of the project, generate interest and support for its programs, track perceptions of their impact, and disseminate information on similar initiatives, through a variety of tools. Both programs will focus particularly on the next generation of potential DFGG champions, as well as the general public. To support content development of the above programs, an action-oriented Studies Program will also be carried out, which will include, inter alia, assessments of interest in DFGG approaches, identifying and analyzing relevant DFGG lessons, and monitoring and evaluation of project implementation. In the short term (within the project implementation period), the component is expected to motivate and begin to build capacity for a broader group of SIs, so that, in the medium-to-longer term they can better inform and respond to demands, concerns and grievances of Cambodia�s citizens. It is expected that by supporting good practice, seeking complementarities and promoting partnerships between the state and civil society where these add value ; identifying, analyzing and disseminating lessons learned; and making gradual advances in capacity building both within and beyond the institutions directly involved in project implementation, a �ripple effect� of constructive engagement across state and non-state institutions would be promoted.

43. Project Summary. As can be seen from Figure 1 below, the first component�s focus is on four specific state institutions and their programs within the priority reform areas of the CAS. The second component broadens the focus by working with a larger set of non-state actors that will both partner with the four specific state institutions (through the partnership grants), as well as work on a wider set of reform areas (through the thematic grants). The third component is the

17 The Good Governance Forum would be an annual event to: (i) report on implementation of the project to the general public/interested stakeholders; (ii) showcase and share experiences on demand-side approaches beyond the project, (iii) disseminate DFGG concepts and �how to� tools; and (iv) recognize, reward and link DFGG practitioners.

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widest in scope, since it will not just coordinate and learn from the activities of the partner state and non-state institutions, but also attempt to extend the effects of the project to other institutions and reformers. Thus, the project�s strategy can be seen as both deepening (in the four state institutions) and broadening (through the non-state actors and the intended �ripple effect�) demand-side approaches. Through such a strategy, the project, in a modest way, attempts to enhance the use and knowledge of DFGG approaches in Cambodia.

Figure 1: Summary of the Project�s Main Elements

D. Lessons learned and reflected in the project design 44. As the project is one of the first of its kind, both for Cambodia and globally, there are no obvious precedents from which to draw lessons. Instead, the project design has been built around certain �principles� that were culled from stakeholder consultations, the Bank�s GAC Strategy,

Support to State Institutions

Support to Non-State Institutions

Coordination and Learning

Component-1

Component-2

Component-3

1A. AC

1D. RNK 1C. OWSO-DO

1B. MONASRI

2B. Thematic Grants

2A. Partnership Grants

Decentralization and Citizens� Partnerships for Better Governance

Natural Resource Management

Private Sector Development

Public Financial Management

For work with 4 State Institutions

3A. Coordinating Project Implementation 3B. Learning

2C. Capacity Building & Learning

Ripple Effect

For work on 4 priority reform areas or themes

Priority Reform Areas

(from CAS Governance

Pillar)

PECSA

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analytical assessments and other studies on the Cambodian governance context, and international literature on social accountability and DFGG. These key design principles are summarized below. 45. A �positive� approach needs to be adopted. While the weaknesses of governance in Cambodia are well recognized, the fact remains that even in this challenging context there are certain reformers keen on change and a few examples of positive governance reform. If supported and strengthened, these committed leaders and promising examples can become models that inspire and motivate the engagement of others. The project has therefore adopted this �positive approach�, i.e., one that identifies and rewards the good performers, rather than focusing on a negative �name, shame, and blame� strategy. 46. The design should be long-term and gradual. International experience, as captured in the Bank�s GAC strategy, suggests that in weak governance environments, taking a long-term perspective to reform is the most prudent and realistic form of engagement. Behavioral and institutional change take time, and thus results are not achieved quickly. Several precedents in Cambodia are worth noting. The system of commune development has been under implementation and consolidation over the past 15 years. The recently initiated Public Financial Management Reform Program (PFMRP) is also designed as a long-term program. In a similar fashion, the Bank has made a long-term commitment to supporting DFGG in Cambodia over 10 to 15 years, of which the proposed project is the first large-scale intervention. 47. The design should be flexible. Experience also shows that the early stages of reform are the most difficult; mistakes will be made and will need correction; and persistence will be required in the face of many setbacks. Overall, the approach to reform must be flexible and allow for changes in course as experience is gained. In the specific case of the project, this is recognized from the start and has motivated the adoption of a strong learning and adaptive planning approach. M&E will be critical and has been carefully designed in each component. An ARPI will enable regular reflection and adaptation. The mid-term review of the project will also require close attention. In addition, approximately US$ 1 million18 has been kept aside as unallocated funds in the overall project budget to respond to opportunities and challenges as they arise during project implementation (see Annex 5 for further details). 48. For long-lasting change, the focus should be on strengthening institutions. Global experience also shows that the sustainability of reform ultimately depends on credible and effective institutions. Innovative programs and projects by themselves are effective for short-term mobilization of demand, but for long- lasting change there is a need for durable institutions. Thus, the bulk of the project support is for institutional strengthening and capacity development such as improving operational efficiency and client responsiveness; ensuring skilled and motivated core staff, and access to technical assistance where needed; providing formal and informal training, and learning by doing opportunities; and ensuring financial sustainability. 49. Existing institutions that have shown promising governance innovations and/or have committed leaderships should be targeted. Experience suggests that, for sustainability and 18 The actual amount in the unallocated category will be approximately US$ 1.13 million, given the rounding off based on the SDR value of the Grant.

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ownership, it is imperative to build on a country�s own institutions and initiatives rather than impose reforms from the outside or create new programs. The decision of the project was hence to strengthen �islands of good governance� that have proven solid initial results and/or whose leaders have shown keen interest and desire to work on scaling up DFGG initiatives. This strategy also signals the Bank�s long-term commitment and support for homegrown solutions, avoids unnecessary start-up project time and costs, and is likely to be less risky overall. 50. Both state and non-state sectors need to be supported. Based on the recognition that activities or functions that strengthen DFGG can be undertaken by institutions both within and outside the state, the project is providing support to both kinds of institutions. Most critical is the mandate of the institution (i.e., whether it is performing a function of promoting, mediating, responding to, or monitoring for DFGG) rather than where it is situated (see para 53). 51. Constructive engagement between state and non-state actors must be promoted. Collaboration rather than confrontation is seen as a critical success factor for DFGG and social accountability initiatives globally (Ackerman 2004; Ackerman 2005). The project is encouraging partnerships and links between state and NSAs that could last beyond the life of the project. It has been designed from entry to avoid tensions between civil society and Government and to emphasize synergy and partnerships. For example, Component 1 maximizes the reach of SIs into civil society by specifically funding their partnership plans. Similarly, Component 2 provides grants for NSAs willing to partner with the four SIs in Component 1. In addition, all NSAs receiving grants in Component 2 are expected to commit to a set of constructive engagement principles. Taking into account a long-term (10 to15 year) perspective, the project proposes to start with more complementary approaches, and move to more challenging work in later stages, once trust has been built between SIs and NSAs. Finally, Component 3 will build links between the four SIs in terms of knowledge sharing, cross- learning, and partnerships during implementation, as appropriate. Care will be taken to ensure that these relationships add value to the work of the concerned institutions and do not impose unnecessary burdens. 52. One should aim to create a �ripple effect� for DFGG reform. The strategy of building �coalitions of reform� has proven to be essential in combating systemic weaknesses in governance (WB 2007c). By focusing on a select set of committed DFGG institutions and leaders, and linking them together, the project is seeking to build stronger networks of support around novel governance reform. It also aims to create a demonstration effect for further reform in more challenging sectors and agencies over time by focusing on positive examples. It is hoped that the success of a few can help support and inspire many others in Cambodia to deepen and broaden DFGG. Systematic learning, evaluation, and effective communication have therefore been emphasized in project design, particularly for Component 3. Coalition building and networking would also be explicitly supported through the large and medium grants in Component 2, as well as through the ongoing PECSA (see para 59). E. Alternatives considered and reasons for rejection 53. Focusing only on non-state actors. Demand-side approaches have thus far mostly supported NSAs such as NGOs, citizen organizations, and independent media. However, as the conceptualization of DFGG (see para 11) suggests, the four functions that strengthen DFGG can

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be undertaken by either a state or non-state institution. For instance a state-run broadcasting corporation involved with disseminating information about public programs and providing citizen feedback to public officials is clearly promoting DFGG. Likewise, ombudsman offices, vigilance commissions and grievance redress mechanisms in line agencies, if effective, are also mediating DFGG. The response function of DFGG is most often provided through the state. The project team therefore made a conscious decision to support both state and non-state institutions. What matters for strengthening DFGG in this context is what an institution does rather than where it is situated. Extending support to state institutions also provides an incentive for reform within Government and for it to request IDA financing for such an operation. Indeed, it is likely that the Government would not be interested in an IDA operation that was exclusively supporting NSAs. Finally, the institutional mapping done by the project revealed that there were a number of Government institutions in Cambodia trying to �do the right thing� on the demand side, which urgently require resources, capacity building and other support for their activities. 54. Pre-selecting institutions versus having the process completely �demand driven�. The project has adopted a mixed route in this regard. It pre-selected the SIs that will implement Component 1 during the process of project preparation. However, it kept the process of selecting NSAs demand-driven through a DM-like competition. The pre-selection of SIs had many strategic advantages: (i) it avoided creating tricky competition for project funds among state agencies; (ii) it ensured that the project targeted a broad array of institutions covering different criteria and DFGG functions; and (iii) it allowed substantial capacity building and joint planning with each of the supported institutions to be undertaken during project preparation � which was essential since DFGG is a relatively new concept in Cambodia. In contrast, in the case of NSAs, competition would be healthy and would be preferred compared to the Government or the Bank handpicking favorites. It would allow for experimentation, diversification, and innovation in a context where engagement of NSAs in governance reforms is challenging. The upfront capacity building required for NSAs is being provided through PECSA, the parallel program executed by the Bank, one year prior to the start of project implementation (see para 59). 55. Focusing on a single sector or theme. The option of launching a host of DFGG activities (involving a combination of promotion, mediation, response, and monitoring) within a single theme (e.g., natural resource management) or service sector (e.g., health or education) would have had the advantage of possibly getting more long-term results in that sector or theme. However, the systemic nature of governance impediments in Cambodia suggests that a comprehensive, multi-sectoral strategy is ultimately needed. Further, engaging an entire sector in governance reform in a challenging environment would be difficult to achieve in a relatively short period (even through a sector-wide approach). Numerous vested interests and opposing constituencies would have to be dealt with. Instead, an approach that is more opportunistic and identifies multiple entry points for engagement is likely to have more traction and achieve results within the short implementation period of a project. This latter approach was taken and has enabled the project to become a single cross-cutting operation on demand-side governance, allowing for greater alignment with other Bank projects under the CAS (see para 18). 56. Focusing on single geographic area. This option would involve for instance, a program for DFGG that would be applied in a single province (e.g., Siem Reap). As with the option above, this focused approach could help concentrate a series of interventions, creating a synergy

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for long-term reform in the given geographical context. However, implementing this kind of a focused approach in any given provincial or regional location in the present Cambodian context is highly improbable because in practice little authority in matters of governance is devolved to this level. It would require partnership across multiple ministries and actors, which are more accountable to national authorities. Further, there appeared to be no readily available champion at a provincial/regional level to take on what is potentially a risky project. A national- level approach with willing reformers is therefore a more realistic approach at entry. III. IMPLEMENTATION

A. Partnership arrangements 57. Partnerships with donors and agencies. The project is building upon and drawing technical cooperation from several donors and agencies that have initiated or previously funded the institutions and programs to be supported by the project. These include the ILO (for the AC subcomponent), KAF and GTZ (for the OWSO-DO subcomponent), AusAID (for the RNK subcomponent) and DFID and DANIDA (for Component 2). Annex 2 further identifies other donors and international agencies working on various aspects of good governance in Cambodia. It is proposed that ongoing analysis and dialogue will be undertaken by the PCO to continue to strengthen complementarities and harmonization with other donors. 58. The project will receive approximately US$ 3.61 million equivalent in the form of parallel financing from AusAID. This will largely fund the technical assistance and institutional strengthening activities for the RNK in Component 1D, as well as provide seed capital for operating expenses of the ACF in Component 1A. Australia, Netherlands and the United Kingdom have also provided funding during project preparation to support often underemphasized aspects of the project design, such as communication, political economy analysis, risk assessment and mitigation, and coordination and learning. 59. Complementarity with PECSA. As mentioned earlier, the capacity building of NSAs in anticipation of the project is also being supported by the complementary PECSA, which was launched in May 2007. PECSA is a US$ 2.00 million grant financed by the LICUS Trust Fund. It is designed to provide training, mentoring, and other types of capacity building for NSAs to better equip them to take up the opportunities presented by the proposed project. It is also building a mutual support network of NSAs to help create an enabling environment for DFGG in Cambodia more broadly. Additionally, it will support internal accountability and integrity systems of NSAs since these will be critical for the implementation of the project, and are a good in their own right. Finally, PECSA provides a limited number of CSO grants to pilot and demonstrate social accountability activities. This competitive grant making will help test and fine-tune the DM-like and small grant mechanisms which subsequently will be scaled up through Component 2 of the project. 60. Partnerships between and among state and non-state institutions. As explained earlier, the project�s design explicitly promotes the establishment and strengthening of partnerships between SIs and NSAs, and among SIs themselves and NSAs themselves, as appropriate (see para 51).

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B. Institutional and implementation arrangements 61. A modular design strategy has been adopted. The project has been designed in a modular fashion � that is, each subcomponent under Component 1, and Components 2 and 3 will have separate IAs. They will each hold designated accounts to which funds will be channeled directly from IDA, except in the case of the ACF (IA for Component 1A) and TAF (IA for Component 2) since as NGOs these agencies are not allowed to hold designated accounts for IDA funds.19 This modular approach has distinct advantages. First, it allows maximum independence and flexibility for each IA to execute their specific component or subcomponent. Secondly, it reduces the layers of fund flows and with it transaction costs, delays and potential leakages, albeit requiring an increase in parallel arrangements. Thirdly, a modular design diversifies risks by allowing other parts of the project to move forward even if there are delays or problems with a particular subcomponent. In the worst case, specific subcomponents can be dropped (totally or partly, and be possibly replaced with activities and a corresponding shift in project funds to others), without compromising the effectiveness of the rest of the project. 62. The MOI is the overall executing agency in charge of overseeing implementation. While a modular strategy has the above advantages, it also means that there is an enhanced need for coordination and cross- learning so as to ensure adherence to overall project development objectives, facilitate interactions with the Bank, create a synergy between the different elements of the project, and ensure that its impact goes beyond the sum of its parts. The MOI has coordinated the preparation of the project and has been appointed as the overall Executing Agency (EA) for the project responsible for overseeing and facilitating its implementation. The MOI was chosen to play this role as: (i) It has been mandated to lead implementation of the Government�s D&D policy, which seeks to strengthen delivery of public services and administration at the local level and houses the Secretariat of the National Committee for Management of D&D (NCDD) Reform. In this capacity, it already facilitates inter-ministerial coordination. (ii) It is the Government�s focal point for NGO relations, handling a national registry of NGOs and responsible for laws and policies relating to NGOs and associations. (iii) It has recently taken on responsibilities for implementing local development investments, working with multiple donors, including the Bank. (iv) Finally, the MOI has key reform champions at the highest political and technical levels (including its Senior Minister, who is also the ranking Deputy Prime Minister), who are committed to supporting DFGG programs in the country. As the overall EA, the MOI�s core responsib ility will be to implement Component 3 of the project (Coordination and Learning) as described below (see para 68). 63. Institutional and implementation arrangements for Component 1 (State Institutions). As noted earlier, each subcomponent under Component 1 will have a separate IA. The key principle used in the design of the institutional arrangements for this component is to work with the existing IA structures to promote ownership and sustainability over the longer term. Other features of the arrangements are as follows: (i) Implementation will be mainly handled by existing agency staff. However, measures have been incorporated into each subcomponent to bring in new staff from other ministries and the market on a contractual basis, and to further complement available skills with national and international consultants, as needed during 19 In these components, the ACF and TAF will pre-finance all project activities and then claim reimbursement from IDA (see para 89 and Annex 7 for more details).

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implementation. The core staff for each subcomponent is expected to be fully in place before Board approval. (ii) The pre- implementation period of the project (from April 2008 � March 2009) is being used to train staff already on board and to prepare key management systems. Once the project is effective, staff capacity will continue to be enhanced through formal training, coaching, mentoring, and learning-by-doing. (iii) It is proposed that the transparent merit-based pay initiative (MBPI) system, established under the PFMRP, be used and extended to provide performance incentives for core project staff in strategic management positions. In addition, the project would support the Government�s own Priority Mission Group (PMG) system of incentives for sub-national and other operational staff under the project.20 (iv) The Multi-stakeholder Advisory Committees, comprising of SIs and NSAs, that were set up to guide the preparation of each State Institutions subcomponent will continue to provide strategic feedback and oversight during implementation. (v) Emphasis is placed on partnership with NSAs wherever possible, and also included through budgeted partnership plans. (vi) Finally, the M&E systems for each IA will, in part, rely on third-party monitoring and independent evaluation and feedback. Specific institutional structures for each subcomponent are described in more detail in Annex 6 and are included in the final Project Proposals that have been prepared by each IA before negotiations. 64. Institutional and i mplementation arrangements for Component 2 (Non-State Institutions). As mentioned earlier, the Government has agreed that the NSA component will be implemented by a NSA, thus signaling its independence and highlighting its multi-stakeholder nature. Through a rigorous process in which several alternatives were considered, the MOI narrowed down the options to three international NGOs with adequate capacity and experience in both governance issues and complex grant-making in Cambodia. The three NGOs were invited to submit proposals on how they would implement the component and were all subsequently interviewed. From this group, the MOI chose TAF to implement this component, and the MEF has agreed with and confirmed this selection. 65. The Bank is satisfied that TAF, which has over 50 years experience working across Asia (including Cambodia), is qualified to implement this component. It already manages grant-making and other programs that support capacity building of civil society and the business community in Cambodia, including over 50 projects in FY 2006/7, ranging in size from US$ 3,000 to US$ 700,000. Over time, it has administered over 700 grants to CSOs in Cambodia. TAF is also the Nationa l Facilitator for the �Civil Society and Pro-Poor Markets� component of the DFID-DANIDA Natural Resources and Livelihoods Program, and intends to closely coordinate the implementation of the two projects to ensure synergies and avoid duplication. 66. To supervise implementation of the component, TAF will establish a dedicated and highly professional management team and a group of full-time staff, who are familiar with the nuances of Cambodian political life. The component will also receive support from existing TAF units, in particular: the Grants and Finance Team (Phnom Penh), the Training and Capacity Building

20 The PMG sub-decree and guiding manual are currently being revised to include the same merit-based principles and decentralized administrative structure as the MBPI. During the project, it is expected that the two systems will be harmonized and merged into a single system of salary incentives. The Government�s �in principle� agreement for both the MBPI and PMG systems for the project has been obtained during negotiations, but disbursements for the PMG system will be subject to the preparation of a manual for managing these incentives under the project.

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Team (Phnom Penh), and the Civil Society Team (San Francisco). TAF�s highly professional staff in headquarters in the USA and other Asian countries will provide additional support, as needed, during implementation. 67. Grants given by the component will be decided upon by a multi-stakeholder Grant Making Committee (GMC) comprising individuals from (but not required to represent) CSOs, the private sector, Government and other stakeholders. The selection of the GMC will be undertaken in a highly transparent manner by a search committee composed of one representative each from the Government, the Bank, TAF, and a Cambodian CSO network. The selected GMC members should be widely respected and high-profile within their sectors. As part of project preparation, TAF will prepare terms of reference for the GMC, a Code of Conduct (which all GMC members will be required to sign and which will help guard against conflicts of interest), and a set of clear and merit-based grant eligibility and rating criteria that will be widely disseminated and used for grant selection. These will be drafted by negotiations, and should be approved by the Government before effectiveness. 68. Institutional and implementation arrangements for Component 3 (Coordination and Learning). The following arrangements have been reviewed and agreed for Component 3 (see Annex 6 for more details):

(a) Project Coordinator - An Under Secretary- level (or higher) official will be appointed to supervise overall project implementation, oversee the work of the Project Coordination Office (PCO), and chair the Project Coordination Group (see below). Higher- level oversight will be provided by the Deputy Prime Minister/Minister of Interior.

(b) Project Coordination Office (PCO) - The PCO will be responsible for daily management

of the project, tracking progress, solving problems as needed, ensuring timely reporting, and overseeing adherence to best management practices on the part of all IAs. It will serve as the Secretariat for the Project Coordination Group and the Project Management Team (see below) and as the focal point of contact and dialogue with the Bank supervision team. The PCO will consist of a full- time Project Director, a Project Manager and a core technical team with skills and experience in key areas of project management (for instance, procurement, financial management, risk management, M&E), combined, to the extent possible, with other substantive areas (such as governance/social accountability, institution building, learning and communications ). It will have three small units for: (i) Project Coordination, (ii) Learning and Communication, and (iii) M&E. The core team will be composed of staff drawn from within the MOI, other government agencies, or the market, to be complemented by consultants/technical assistants from outside.

(c) Project Coordination Group (PCG) - The PCG is meant to be a formal advisory

committee whose core responsibility will be to provide strategic, high- level oversight to the project; review, advise on and approve Annual Work Plans; review annual progress and performance based on systematic M&E information; and address serious coordination and management issues that transcend the mandate of any one IA. It will identify bottlenecks and issues that require the attention of the MOI team and/or the

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Deputy Prime Minister (DPM). It will also be responsible for advising on and tracking learning and partnerships across state and non-state institutions and ensur ing appropriate linkages with supply-side initiatives undertaken by the Government. The PCG will comprise the Project Directors of the five IAs; representatives of civil society (drawn from the Multi-stakeholder Advisory Committees of each IA that will be continued during project implementation); representatives of the MEF, Ministry of Planning, Cambodia Development Council and the Council for Administrative Reform (CAR); the DFGG Project Director, and the DFGG Project Coordinator. The DFGG Project Director will serve as the Executive Secretary of the PCG and the DFGG Project Coordinator will serve as the Chairperson. The multi-stakeholder PCG will increase the comfort level and experience of state and non-state actors to collaborate together in implementing governance reforms. It is expected to meet at least twice a year.

(d) Project Management Team (PMT) � The PMT will be a sub-group of the PCG

comprising the DFGG Project Director as chairperson, and the Project Directors from each of the IAs, although it can at its discretion invite other stakeholders to participate in its activities. The PMT is meant to meet monthly to provide regular coordination, supervision and monitoring of project implementation among the key day-to-day managers of all components. The PMT will identify and agree on actions to address emerging issues and problems, and, where necessary, refer to the PCG major issues of inter-agency cooperation and strategy, or any other aspect that cannot be resolved at the level of individual agencies or the PMT.

(e) Learning and Communication Focus Group (LCFG) � The LCFG will be specifically

created to provide inputs and guidance to the design and implementation of Component 3B. The LCFG will also discuss and help prioritize the themes and activities that would best meet the learning needs of the IAs. Its members will be drawn from the IAs and include a small number of selected development practitioners to facilitate access to external experience on DFGG approaches.

69. During appraisal, it was agreed that the implementation of Component 3B (and some parts of Component 3A) would be facilitated by bringing on board external technical assistance in the area of capacity building, research and communications. The MOI will therefore partner with a Research and Training Organization (RTO), which would likely be a non-state institution (such as an academic institute or CSO) with Cambodian roots. The RTO is expected to have strong expertise in public administration/public policy issues, and be capable of mobilizing the diverse set of substantive skills required to support implementation of Component 3B. It is expected to design and prepare the Annual Work Plans for the three programs under Component 3B, organize agreed training events and seminars, undertake commissioned research and assist in dissemination of lessons generated from the project. Final decisions on implementation of Component 3B will, however, remain with the PCO. Participation in the project will build, in turn, the capacity of the RTO to offer similar services to Government in the future.

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C. Monitoring and evaluation of outcomes/results 70. A decentralized M&E system is being set up. M&E is an integral part of the project design given its learning and demonstration objectives. As each of the IAs involved is implementing very different programs in different sectors, the M&E of each component and subcomponent will be managed independently by the concerned IA. Between 3 and 5 percent of the total IA budget has been allocated to this activity in each case. Responsibility for managing M&E activities will be given to a dedicated team within each IA. For Component 3, M&E will be undertaken by the PCO, which will contract a reputable research firm that will assist it in compiling, aggregating and further analyzing M&E and results indicators from each of the IAs and for the overall project. Reporting of indicators will be done through Annual Work Plans (AWPs), Quarterly Progress Reports (QPR), and Annual Progress Reports (APRs ) being prepared by each IA and aggregated by the PCO. Regular management meetings will be held by each IA to take stock of M&E findings and to discuss their incorporation into work plans and decision making. In addition, the PCO in the MOI will hold regular meetings of the PCG, to review progress and discuss issues as they arise. It will also organize an intensive ARPI (see Annex 3 and 6 for details). 71. M&E capacities vary and will have to be strengthened. The capacity to take on robust M&E activities varies across the IAs. At one end are institutions such as TAF and the ACF, with strong, fairly experienced M&E units. At the other are RNK and MONASRI, which have little experience with M&E. Therefore, the project will invest in additional technical M&E staff as needed for each of the IAs. It will also support training programs on basic M&E methods and principles (including on-the-job training) for existing IA staff. Such training will be organized by the PCO through the aforementioned M&E research firm (Component 3), which will also act as a �common pool� resource to guide and complement M&E staff in the IAs. 72. A mix of quantitative and qualitative methods will be used. The M&E strategies for capturing the outcomes and results indicators for the project and its components involve the use of a diverse mix of both quantitative and qualitative tools. These include instruments such as citizens� report cards, scorecards, focus group discussions, �most significant change� surveys, audience polls, case studies and special assessments (see Annex 3 for details). In most cases, while quantitative indicators will be used for input and output monitoring, the measurement of outcomes and results will be done through perception or qualitative indicators (even if quantified). This is necessitated by the fact that many of the outcome indicators that capture the results of DFGG activities tend to be qualitative in nature. 73. Independent evaluation will also be used. Given the varying internal M&E capacities, and recognizing the need to have independent evaluations of performance and impact as a basic building block of a DFGG approach, the project is also emphasizing external or �third-party� monitoring by competent national research institutes and CSOs. This includes, under Component 1, the conduct of baseline, mid-term and/or end-term evaluations for the AC, MONASRI and OWSO-DO subcomponents, and an annual audience share and listeners� perception survey for RNK. For Component 2, TAF will contract an independent NGO to conduct random checks on grant recipients, and will use a Cambodian think tank to undertake a survey of the component

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and assess particular grants every two years.21 For capturing the �learning� and �ripple effect� objectives under Component 3, the M&E research firm contracted by the PCO will undertake an informal annual survey of targeted stakeholders in both the state and non-state sectors. This will measure their awareness and understanding of DFGG and changing perceptions regarding the levels of constructive engagement between citizens and the state. These independent monitoring arrangements are also meant to promote partnerships between state and non-state institutions. Apart from what has been designed upfront, it is expected that independent monitoring of the performance of the state institutions (Component 1) will also be undertaken by non-state grant recipients under Component 2. 74. The results and lessons from M &E activities will be widely disseminated. In line with the knowledge sharing goals of the project, the Awareness Raising and Capacity Building Program under Component 3 will promote learning about and adoption of DFGG approaches and practices, by supporting an Annual Good Governance Forum, workshops and seminars more specifically focused. Through the Communications Program (also under Component 3), the project will reach out to the broader public to, inter alia, disseminate project results and track perceptions of its impact. Both programs will build on the M&E activities carried out by the various IAs as well as on specific assessments undertaken through Component 3�s Studies Program. Finally, to ensure full disclosure and transparency, the AWP, QPR and APR will be posted on the websites of each IA and the PCO. D. Sustainability 75. High-level political commitment has been demonstrated in the institutions being supported. There is support from the highest (ministerial) levels in each of the IAs, meeting a key criterion for their selection. Such support reveals ownership and should help in ensuring sustainability. Further, as the MOI is the overall EA, the project has the committed support of the ranking Deputy Prime Minister, who is also Senior Minister for the MOI, and has been endorsed by the Prime Minister. While cognizant of the potential risks and novelty of the project, these leaders have demons trated their commitment by setting up high- level project teams to help design their agency�s programs. The IAs have shown their willingness to adopt new participatory ways of working by engaging in an intense project preparation process spanning almost two years. This has included a high degree of consultation with a wide range of stakeholders, development of partnership plans, and a number of institutional and internal assessments. All of the above has resulted in strong ownership of the project by the various IAs. 76. Specific sustainability mechanisms are embedded within each component and subcomponent. These mechanisms are as follows:

21 In addition, certain project funded NSA initiatives related to public expenditure tracking or budget analysis may lead to savings of public resources. Similarly, the AC subcomponent may result in savings due to strikes avoided and the OWSO subcomponent may reduce financial costs of receiving decentralized services. To this end, Components 2 and 3 include a budget for conducting specific case studies to capture the financial impacts of such initiatives through greater efficiency in use of public resources. These will form part of the final supervision and evaluation records for the project.

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(a) Component 1. Cost recovery and financial sustainability plans have been included or are to be developed during implementation for the RNK, AC, and OWSO-DO subcomponents (see Annex 9 for further details). For the RNK, sustainability of its public interest programming is being sought through institutionalization of an Editorial Policy that will govern all its programming, establishment of a Board of Directors, and retention of advertising revenue. For the AC, best efforts will be made to obtain stakeholder contributions (from employers associations and trade unions) during the project as part of a partial cost recovery effort at the target rate of 2.5 percent for Year 1, 5 percent for Year 2, 10 percent for Year 3, and 15 percent for Year 4 of project implementation. (These contributions are expected to represent approximately 8 percent of total project costs for the subcomponent.) For the OWSO-DO subcomponent, the recurrent costs of running the OWSO and DO offices will be transferred to the Government at the rate of 50 percent in Year 3 and 100 percent in Year 4 of project implementation. Revenues generated through service fees collected at the OWSO offices will be retained at the district level to ensure the financial sustainability and viability of these offices. For MONASRI, sustainability of the new results and partnership-oriented way of doing business is sought through provisions for mainstreaming the experience acquired with Land Law dissemination to the Ministry�s law dissemination function more broadly.

As mentioned earlier in para 63, the project will be implemented as far as possible with

existing structures of the four SIs, rather than through parallel or new arrangements. This approach will ensure greater sustainability of the programs. In three of the cases (AC, MOI, and RNK) these structures have been tried and tested through existing programs.

(b) Component 2. For the NSAs that receive grants under Component 2, sustainability

measures include: (i) capacity building, awareness raising and learning (already ongoing through PECSA) so they can increase and continue their demand-side activities; (ii) support to coalition building and networking of organizations (through the large and medium grants and PECSA) so they can continue and spread the work of partners; (iii) options for increasing the duration of the grants to provide for medium-term sustainability; and (iv) awarding repeater grants to consolidate and scale up activities.

The grant-making facility may also continue beyond the project�s life through continued

coordination with other donors, most importantly with AusAID, DANIDA, DFID, SIDA and USAID. Component 2 has been prepared in consultations with these donors and a joint mapping exercise is proposed during the pre- implementation phase to identify and assess current donor programs which provide support to NSAs in Cambodia. This is expected to result in a joint donor strategy for strengthening NSAs, with a longer-term view of harmonizing and sustaining this support. Finally, TAF has a history of grant-making to NSAs in Cambodia and is expected to continue this work beyond the project, incorporating the lessons learned.

(c) Component 3. Sustainability of learning activities under Component 3B depend

significantly on the broader enabling environment in Cambodia and on the MOI�s capacity, mandate and leverage vis-à-vis other SIs. The M&E activity and flexibility foreseen in the subcomponent�s design are meant to closely track demand for and

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effectiveness of programs, and allow adjustment (including eventual scale up) if necessary under evolving circumstances.

77. The Bank aims to continue support to strengthen DFGG in partnership with other donors. As noted earlier, governance reform is a long-term endeavor. Despite the ownership, the financial and other sustainability measures included in the project, continued Government and donor funding will be needed for the near future to promote DFGG. This project is seen as the first free-standing �testing ground� for demand-side approaches. If it succeeds in achieving its development objectives, it will likely be followed by further financing and technical support from the Government, the Bank and donors. To this end, the Bank has made a long-term commitment to DFGG approaches in Cambodia and is, in principle, open to promoting scaling up of successful initiatives and supporting experimentation with other DFGG approaches. E. Critical risks and possible controversial aspects 78. As a multi-agency operation working with both SIs and NSAs on the relatively new topic of DFGG, the project promises to generate important lessons in the area of governance reform, which will be of great value in challenging governance environments both in Cambodia and elsewhere. However, this is relatively uncharted territory both for the country and the Bank and project implementation admittedly may be a �messy business.� The most significant risks and strong mitigation measures are summarized in Table 2.

Table 2: Risk Mitigation Measures Risks Risk Mitigation Measures Risk Rating with

Mitigation To project development objective 1. Political will to support the project will not be sustained.

By engaging with existing institutions and scaling up their on-going programs the project has ensured that there is a degree of ownership for the program from the start. It has been endorsed by the Prime Minister and the ranking Deputy Prime Minister. It fits Government policies described in the RS and the NSDP. The risk that current political will may waver due to change in champions and/or subversion by public officials who resist enhanced accountability cannot be eliminated. However, the project includes several measures to mitigate this risk: (i) Emphasis on constructive engagement across state and non-state actors, and on partnerships and networks, will generate support and likely pressure for continued implementation of DFGG approaches from multiple sources -- within Government and civil society. (ii) Champions in the Government and civil society (including leadership of the IAs and members of the PCG and GMC) will be encouraged to advocate for DFGG and the benefits it can bring Cambodia. (iii) Special attention will be paid to building the capacity and confidence of mid-level bureaucrats so that they continue to implement DFGG programs, even if there are changes at the top. (iv) Support for the MBPI and PMG systems will provide a salary incentive for government staff to sustain implementation. Additional incentives will be explored through the judicious use of study tours, overseas training and other carefully designed measures. (v) The communication program, which will disseminate results and showcase performance, will provide reputational incentives for the state institutions and actors to stay engaged. (vi) A consistent donor message, generated through the coordination process,

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will be shared with the Government on the importance of demand-side approaches to governance. (vii) Finally, the project team will continue to carry out the informal political economy assessment that it has undertaken regularly during project preparation to anticipate and address political uncertainties.

2. Complexity in project design and multiplicity of actors involved will lead to poor management, implementation and coordination.

The complexity is inherent in the ambitious development objectives proposed and in the strategy to include both state and non-state institutions. Risks are being mitigated by: (i) Selecting existing institutions and ongoing programs with some degree of proven capacity and experience to deliver project activities; (ii) Having them take a leading role in the intense and high-quality project preparation, with support from external consultants and the Bank where needed, to build ownership and understanding. (iii) Promoting learning by and capacity building of the SIs through a PPF Advance which supports pre-implementation activities. (iv) Simplifying the design of individual subcomponent programs to match IA capacities, by dropping activities and/or phasing and sequencing implementation. (v) Simplifying the design of the overall project by dropping entire subcomponents (see footnote 4). (vi) Allocating significant project funds to institutional strengthening and capacity building. (vii) Preparing time-bound implementation and procurement plans for the first 18 months for each component and subcomponent, with clear benchmarks and responsibilities. (viii) Building in regular monitoring and oversight, through the PCO and PCG and in each component and subcomponent, to ensure that management and progress of IA programs is on track. (ix) Using a flexible and gradual implementation approach that allows progressive adjustments to design based on lessons of implementation. (x) Adopting a modular project structure (see para 61), so that each IA has independence to move ahead with their programs even if others are falling behind. (xi) Finally, a much greater than normal supervision effort on the part of the Bank is proposed to track progress and advise on adjustments in a timely manner (see Annex 15).

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3. Project life of four years is too short to achieve desired results.

As all SI subcomponents build on existing programs or activities, so the majority of project-supported activities are ongoing for some time. In the case of Component 2, as many of the grants will be for short-term initiatives, results are expected within the project implementation period. There is also scope for repeater grants. Further, the two-year project preparation process includes an eleven-month period of activities funded through a PPF Advance that gives a head-start to the work that would have been done in the first year of implementation. Taking this into account, the project implementation period can be considered to be effectively about five years. Finally, it is accepted upfront that the project�s intended outcomes will be delivered over a longer horizon, and there is a commitment from the Bank to support DFGG approaches as a long-term strategy. It is expected that important lessons can be learned about supporting DFGG during the implementation period of the project that can feed into future initiatives.

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4. Partnerships and initiatives supported by the project will not be sustained and will not create the envisaged �ripple effect� on other agencies and reformers.

In Cambodia, a culture of SIs and NSAs working together, and the kinds of innovations being tried in the project are not the norm. The risk of these partnerships breaking down and initiatives being dropped after the project closes are substantial. Risk mitigation measures are as follows: (i) The emphasis on a strong coordination, learning, and communication program that is included in each component (and is the prime objective of Component 3B) is expected to generate strong momentum for continuation of DFGG initiatives beyond the project implementation period. (ii) Component 3 is also expected to showcase the supported IAs

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and their programs thus �inspiring� others to replicate DFGG activities. (iii) Component 2 and PECSA explicitly support networking and coalition building of NSAs. (iv) The project design stresses capacity building of SIs and NSAs aimed at longer-term institutional change and partnerships. (v) Finally, the project recognizes, rewards and links �good people doing good things� on DFGG in Cambodia, who would be expected to keep these activities and partnerships going after the project.

To component results 1. Capacity of state institutions is too weak to deliver on planned programs.

Since most of the IAs selected in the project are building on their existing programs, there is already in place some degree of proven capacity and experience to deliver on the project activities. Key challenges lie however in scaling up programs. In addition, except the MOI, the other IAs have not implemented a Bank-financed project before. Risk mitigation measures are as follows: (i) A strong TA and capacity building program has been built into the project design. (i i) The pre-implementation period is being used to help prepare and train the IAs, and put in place systems, aiming to ensure a smooth and rapid transition to implementation after project effectiveness. (iii) During implementation, Annual Work Plans, with clear benchmarks, will be prepared, and a heavy investment will be made in M&E and learning lessons to make implementation more effective. (iv) An active communication campaign and a number of consultation mechanisms will assist IAs to listen and learn from different stakeholders and to enhance capacity based on feedback. (v) Finally, the modular structure of the project will allow scope for reallocating funds if performance of a specific institution falls short.

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2. Limited capacity of the MOI to coordinate IAs and lead the learning program.

Although the MOI has previous experience in implementing Bank-financed projects, cross-institutional coordination, involving various ministries and in close partnership with NSAs, will be a challenge. In addition, the learning program, critical to the creation of a �ripple effect� and to the ultimate success of the project, is a new area of engagement for the MOI. To address the risks posed by these challenges, the following measures have been taken: (i) Strategic use of the authority of the Senior Minister of the MOI, who is also the ranking Deputy Prime Minister, to ensure that the IAs deliver on their promises and performance and the MOI can effectively play its coordination role. (ii) Simplification of project design, avoiding dispersion and focusing the scope on activities that can be shown to add value. (iii) Adoption of a gradual approach to implementation of the learning program, with a strong M&E element and a thorough mid -term review built in, as the basis for adjusting design of Component 3B as needed. (iv) Outsourcing the delivery of a significant set of activities to the RTO while ensuring capacity building for MOI staff and retaining the necessary responsibility for implementation with the PCO. (v) Capacity building for the MOI team during the project preparation period through the PPF Advance. (vi) Finally, the modular structure of the project in part avoids the danger of the whole project becoming hostage to capacity constraints within the MOI. While this is true for Component 3B, it represents a greater risk in the case of Component 3A, where the MOI has mandatory responsibilities as the project�s EA.

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3. Failure of the MBPI and PMG systems of salary incentives to materialize or be continued by RGC.

The MBPI system is currently only being implemented for the MEF and there is agreement in principle between the Bank and the Government that it would be extended to the Ministries in the proposed project. The MOI has employed an international expert to help design the system to be used, modeling it on the existing MEF system as far as possible. In addition, the DFGG project will be one of the first donor projects that

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would provide support for the PMG system of incentives, given the intention of the Government to harmonize and eventually merge these two systems. The �in -principle� agreements for including both systems in the project and the cost-sharing commitments of the Government have been achieved at negotiations. However, there remains a political challenge of getting the systems (particularly the revised PMG system) implemented, and securing the financial commitment from the Government to continue this beyond the project. This is a portfolio-wide issue in Cambodia, and Country Management is working diligently with the authorities, and in collaboration with other donors, to ensure the implementation, harmonization and sustainability of these incentive systems . In the absence of some form of incentive system, the effectiveness of Component 1 may be threatened.

4. Corruption and/or use of project resources for patronage purposes .

The systemic nature of corruption and the culture of patronage that exists in Cambodia is an obvious risk to project components. While the project will benefit from the Bank�s portfolio-wide activities for strengthening anti-corruption efforts, several risk mitigation measures are being specifically highlighted in the project: (i) The project has prepared a �Good Governance Framework� with comprehensive and detailed measures to promote transparency and anti-corruption for each of its components and subcomponents (see Annex 11). The framework outlines several actions � such as, disclosure of key project documents and budgets, establishment of an independent grievance redress mechanism, citizen feedback, third-party monitoring, formal audits, and targeted communication and outreach. (ii) An International Procurement Agent (IPA) has been deployed by the Government to handle procurement of all Bank projects and this will be the mechanism used for this project as well. Use of the IPA will eliminate a great deal of potential for corruption and leakage of project funds. (iii) To avoid patronage in deployment of project staff, the MBPI and PMG manuals being developed will have clear and objective guidelines on recruitment, award of incentives and evaluation of performance. (iv) All staff working on the project, as well as the higher leadership of the IAs, will sign a Code of Ethical Conduct prior to effectiveness of the project. (v) All staff and senior leadership working on the project will be provided training and capacity building programs on Ethics and Good Governance. (vi) Controls on �soft� (mainly SOE-based) expenditures will be sharpened; (vii) Experience from other projects in EAP suggests that significant risks can be mitigated if the designs include a modular implementation structure which minimizes interdependence of components and subcomponents. This allows the project to stop working with specific institutions and programs where there are problems of capture and mismanagement, without unfairly punishing others. (viii) Specific legal safeguards will be designed into the overall financing agreement for the project and the project agreements with the ACF and TAF to ensure proper use of project funds. (ix) Finally, aggressive monitoring and supervision are proposed in the project to ensure the mitigation measures are implemented in a quality manner (see Annex 15).

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5. Capture or subversion of the grant �making process to NSAs by political elites and powerful interests.

The credibility and integrity of the grant-making process in Component 2 is critical to its success. However, since this is the first time the Government will be sponsoring this kind of NSA-managed initiative focused exclusively on DFGG issues, there is a high risk of attempts towards political subversion of the process. Risk mitigation measures are as follows: (i) TAF, which is the IA for this component, has a strong track record of professionalism and integrity in grant-making in

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Cambodia and elsewhere in Asia. It is well-respected by the Government and is expected to maintain close contact with key officials to anticipate and address concerns. (ii) Grant-making will be undertaken based on clear and rigorous criteria and procedures. The Government is helping to craft these criteria and procedures and has agreed to abide by the rules of the game. There is high-level MOI commitment to ensure independence and integrity of the grant-making process, and, as the EA, it will be expected to mediate if there is undue pressure from other SIs. (iii) Grant-making will emphasize the principle of �constructive engagement� between the SIs and the grantees, so this will help reduce the need for the Government to intervene in the process; (iv) A transparently and carefully chosen multi-stakeholder GMC will make grant selection, based on clear and rigorous criteria and procedures. The GMC members will sign a Code of Conduct to ensure independence and integrity. They will be required to avoid any situation of potential conflict of interest in their capacity of reviewing grant applicants. (v) A strong communication and outreach campaign will accompany the grant-making including the DM -like competition (which itself will be a public event). The transparency of the process is expected to reduce interference and capture. (v i) There will be active involvement of third party NSAs in oversight and reporting results , which will help identify capture or subversion of the grant-making process. (vii) An independent grievance redress mechanism will be established in Component 3A (Coordination) to receive and act on any complaints of wrong doing. (viii) Finally, the Bank will closely supervise the grant-making and will intervene, as appropriate, to ensure integrity of the process.

6. Politically sensitive activities get funded through Component 2 grants, creating controversy and conflict with Government.

As the NSA grants will be �demand-driven�, there is substantial risk that the activities supported could be politically sensitive or motivated. To minimize this, the principle of �constructive engagement� is central to Component 2. This will be defined in a transparent manner in the grant application guidelines and criteria, which are being prepared with inputs from the Government. The partnership grants are also expected to create precedents for NSAs and SIs collaboration, which will build trust. A negative list of items that cannot be funded (e.g., civil works or environmentally hazardous goods) will be included. Additionally, the GMC and TAF will conduct a due diligence of potential grantees prior to being awarded grants, in order to assess, inter alia, the sensitivity and motivations behind their proposals. Where required, TAF, helped by carefully chosen local interlocutors, will undertake sensitization and diplomacy exercises with both NSAs and SIs to avoid potential conflicts arising from the initiatives funded through the component. Finally, the Bank will continue to support an enabling environment for constructive engagement between the state sector and civil society by brokering forums for Government-civil society dialogue on governance issues and complementary work through other planned and ongoing initiatives (see para 14).

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Overall risk rating S Rating: N- Negligible Risk, L-Low Risk, M - Medium Risk, S-Substantial Risk, and H-High Risk 79. The high- level political commitment at entry, flexible and viable project design, modular component structure, longer-term approach to governance reform, focus on experimentation and learning, emphasis on communication and participatory planning, and building on existing institutions and programs are key responses to the substantial risks involved in a project of this nature. Despite these risks, the project is considered a worthwhile undertaking given the urgency

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to tackle the severe governance challenges in Cambodia. The key to its success will lie in managing implementation aggressively � monitoring and supervising progress continually, recognizing that implementation will perhaps not always go as planned, being persistent, making adjustments in real time, dropping things that do not work, and going where there is demand and opportunity. In this way, the project will provide a testing ground for demand-side approaches, which can generate important lessons not just for Cambodia but also for other countries with challenging governance environments. Thus, overall the potential rewards of the project are likely to outweigh its risks. F. Loan/credit conditions and covenants 80. Negotiation Conditions. Beyond the standard conditions, the following project-specific conditions for negotiations have been fulfilled by the Government :

� The final Project Proposals, acceptable to IDA, have been prepared by each IA and the PCO.

� The MOI and the relevant SIs obtain an �in principle� written agreement from the MEF

and CAR to establish their MBPI and PMG schemes. � A draft Project Implementation Manual (PIM), acceptable to IDA, has been prepared by

the PCO, discussed with the IAs, and cleared by the DFGG Project Coordinator. � A draft Financial Management and Disbursement Manual (FMDM), acceptable to IDA,

has been prepared by the PCO, discussed with the IAs, and cleared by the DFGG Project Coordinator.

� A draft Operational Manual for Component 2, acceptable to IDA, has been prepared by

TAF, and cleared by the DFGG Project Coordinator. � An overall Good Governance Framework (GGF) for the project, and the Good

Governance Plans (GGP) for each component and subcomponent, acceptable to IDA, have been completed, signed, and adopted by the Minister [or other suitable high- level authority] responsible for each IA and the PCO.

81. Board Conditions. There are no project-specific conditions for the Board beyond the standard conditions applied to all Bank projects. 82. Effectiveness Conditions. Beyond the standard conditions, the following are the project-specific conditions for effectiveness:

� The overall Project Implementation Manual, acceptable to IDA, has been adopted by the PCO.

� The Operational Manual for Component 2, acceptable to IDA, has been adopted by TAF,

and cleared by the DFGG Project Coordinator.

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� The PCG and the GMC have been established in accordance with their TORs and through

a process acceptable to IDA.

� Subsidiary Agreements have been executed on behalf of the RGC with the ACF and TAF.

83. Covenants. The following are the covenants that will be included in the Financing Agreement: Covenants applicable to all IAs and to overall project implementation:

� All project activities shall be carried out in accordance with the appraised Project Proposals and the policies, procedures and processes in the approved PIM, unless previously discussed with and approved by IDA.

� A PCG, with adequately qualified membership, shall meet on a regular basis and carry

out its functions, in accordance with the approved PIM, throughout project implementation.

� AWPs for the next calendar year shall be prepared by each IA and the PCO by 30th

September of each year, starting in 2009, for discussion with IDA, in accordance with the formats specified in the approved PIM, using indicators and methods satisfactory to IDA.

� AWPs, approved by the PCG and the Bank, shall be adopted by each IA and the PCO by

30th December of each year, starting in 2009, for the next calendar year.

� QPRs shall be prepared by each IA and the PCO, and consolidated by the PCO, in accordance with the formats specified in the approved PIM, using indicators and methods satisfactory to IDA.

� APRs shall be prepared by each IA and the PCO by 30th March of the subsequent year for

discussion with IDA, in accordance with the formats specified in the approved PIM, using indicators and methods satisfactory to IDA.

� Financial accounts shall be prepared and maintained on the basis of the approved FMDM

for the project.

� Quarterly Interim Financial Reports (IFRs) for each component/subcomponent will be prepared by each IA and submitted separately to IDA within 45 days after the end of each quarter, however, one copy will be provided to PCO for information sharing and oversight.

� Annual audits of the financial statements for the entire project shall be conducted by

independent auditors under terms of reference acceptable to IDA, and will be submitted to IDA within six months of the end of the fiscal year.

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� Adequate policies, procedures and resources shall be maintained by the IAs and the PCO

to monitor and evaluate progress in project implementation and achievement of development objectives, in accordance with indicators and methods satisfactory to IDA.

� Baselines and other relevant monitoring systems, acceptable to IDA, shall be put in place

by the IAs and the PCO by 30th June, 2009. � The PCO, in collaboration with the IAs, shall organize an Annual Review of Project

Implementation by 30th April of each year, starting in 2009, and a Mid-Term Progress Review by 30th June, 2011, using indicators and methods satisfactory to IDA.

� A Final Evaluation Report shall be prepared by the PCO, in collaboration with the IAs,

for discussion with IDA by 30th June, 2013, using indicators and methods satisfactory to IDA.

� Each IA and the PCO shall ensure that project implementation is carried out in

accordance with the provisions of the signed Good Governance Framework and the Anti-Corruption Guidelines in a manner satisfactory to IDA.

� The PCO shall develop and implement the MBPI Manual and the PMG Manual, both

satisfactory to IDA, throughout the implementation of the Project; and not amend, suspend, abrogate, repeal or waive any provisions of the said manuals without the prior agreement of IDA.

Covenants applicable to specific components or subcomponents:

� No withdrawal shall be made for payments of PMG incentives for Project Staff under Component 1B, 1C and 1D, until the PCO has prepared a PMG manual for the project, satisfactory to IDA.

� The ACF shall (i) make best efforts to ensure that financial contributions from private

and public sources, including trade unions and employers� associations, are introduced during the project as part of a partial cost recovery effort at the rate of at least 2.5 percent of project costs for 2009, 5 percent for 2010, 10 percent for 2011, and 15 percent for 2012 of project implementation in order to ensure sustainability of the ACF and the AC; and (ii) ensure that a study of the AC�s financial and institutional sustainability is carried out by the project�s Mid-Term Progress Review.

� The MONASRI shall ensure that subcomponent activities are carried out at all times in

accordance with the MONASRI�s Law Dissemination Strategy and annual work plans satisfactory to IDA.

� The Secretariat of the NCDD, in its capacity as Implementing Agency for Component

1C, shall ensure that the recurrent costs (excluding PMG incentives) of the OWSO are transferred from the project to the Government at the rate of 50 percent in 2011 and 100 percent in 2012 of project implementation.

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� The RNK shall ensure that: (i) it produces and expands the broadcasting of programs under the call- in-show format (�Talk-Back Programs�) addressing the governance issues and topics; introduces new feature stories on governance issues; and revamps RNK�s newsroom function; (ii) the programs and stories being produced are governed by its Editorial Policy, including a code of conduct; (iii) such programs shall be broadcast through its stations on a regular basis and such broadcasting will form about 15 percent of its daily broadcasting hours in 2009 of the project; 20 percent by 2010; 25 percent by 2011 and at least 30 percent by the end of the project; (iv) the Environmental Management Plan relating to repair and/or relocation of the transmitter is completed and implemented in a manner satisfactory to the IDA,22 by 30th December, 2009; and (v) should the transmitter be relocated, no expenses related to the relocation shall be eligible until the Environmental Management Plan is approved by the RGC and IDA.

� In the case of Component 2, TAF shall: (i) create the GMC; and (ii) ensure that no grants

shall be awarded to NSAs for the construction of new buildings or the purchase of land. � The MOI, in its capacity as the Executing Agency, responsible for implementing

Component 3, shall: (i) maintain a PCO, with adequately qualified staff (including consultants), throughout project implementation; (ii) discharge its responsibilities as coordinator of the project in accordance with the policies, procedures, resources and timeframe specified in the approved PIM; and (iii) organize, in collaboration with the IAs, an Annual Good Governance Forum for SIs and NSAs to report on progress in implementation of the project, present lessons learned on good governance, and bring in views from independent experts and experience from other projects.

IV. APPRAISAL SUMMARY A. Economic and financial analyses 84. The project is expected to generate economic benefits by improving governance. Over time, the project is expected to generate economic benefits for Cambodia through its effects on improving governance, which is recognized as an impediment to growth in critical areas of the economy, i.e., private sector development, natural resources management, public financial management, and decentralization. Two of the project�s subcomponents � support to the AC (Component 1A) and to the OWSO-DO (Component 1C) � involve activities that help to improve governance relating to the domestic private sector by improving labor relations and the registration of small businesses. These therefore also contribute specifically towards improving the local business and investment climate and enhancing productivity (e.g., through reduced threat of worker�s strikes and reduction of transaction costs) for both small and large businesses. Others (MONASRI, RNK and the Non-state Institutions Component) contribute to improving the general governance environment which in turn will have a positive effect on the investment climate in the country. 85. Cost recovery and financial sustainability plans have been included or are to be developed during implementation (see para 76). 22 See paras 100-102.

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B. Technical 86. The project design benefits from international as well as local experience. The overall project design is based on principles derived from international and local experience (see Section II.D). The design of specific subcomponents under Component 1 and 2 has drawn on international best practices (e.g., international examples of arbitration councils, one-window offices, law dissemination programs, public radio programs, and civil society grants mechanisms) and the advice of well-regarded practitioners. Suitability of these practices for local conditions was validated through the intensive participatory process used in the preparation phase and the Multi-stakeholder Advisory Committees established by each IA to assist with project design (see para 93). Many of the activities supported by the project build upon evaluation of existing programs and accumulated local experience. As mentioned earlier, the project has also benefited from regular political economy analysis of governance and institutional issues in Cambodia, as well as assessments of the incentive structures of key stakeholders and the power relationships between them.23 87. The project implementation will adjust actions to fit experience. Nevertheless, in the emerging practice of DFGG, there are no well-established, dominant paradigms. Recognizing this, the project features a learning-by-doing approach on technical matters and includes a strong learning subcomponent. Several subcomponents, such as the MONASRI and OWSO programs, and Components 2 and 3 have been explicitly designed with gradual and phased implementation approaches so there can be progressive adjus tment based on implementation experience. To this end, M&E has likewise been stressed in each component and subcomponent of the project. Finally, the project provides for modification of the design after each ARPI and the Mid-Term Review, based on the experience during implementation. Significant resources have been kept aside as unallocated funds to address unanticipated needs during implementation. C. Fiduciary 88. Financial Management Arrangements. The financial management (FM) inherent control environment is assessed as high risk before mitigation, and rated as substantial risk with suggested mitigation measures. The project control risk is assessed as moderate after a number of mitigation measures have been incorporated in the project design. The overall FM risk, however, is assessed as substantial (see Annex 7 and 11 for further details). The FM arrangements have been decentralized to the IA level, and the FM capacities of the different IAs vary significantly. FM assessments indicate that the FM capacities of MONASRI and RNK are weak, while the NCDDS/MOI, the MOI/PCO, the ACF and TAF have stronger FM experience. However, only the MOI has prior experience with a Bank-financed project. An action plan has been formulated to address current financial management deficiencies in the IAs, which has concrete mitigation measures such as: annual activity planning and budgeting; the establishment of a separate computerized accounting and financial management system for the project; appointment of

23 The task team worked with a highly experienced local political economist for two years to systematically undertake this analysis and deliberately build the findings into the design of the project. In addition, it benefited from political economy assessments such as Hughes, C. and Un, K: Cambodia Governance Analysis, March 2007.

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adequate number of qualified staff to manage implementation; intensive staff training;24 and, regular oversight by the PCO. Financial staff will be placed on the MBPI system to attract qualified and experienced staff. They would also be expected to perform by a Code of Ethical Conduct, which will be publicly endorsed by project leaders. All staff and project leaders will be provided regular training and capacity building on ethics and good governance. Cash transactions will be minimized. There will be regular financial reporting to the MEF, other stakeholders and IDA. Internal and external audit systems are also being set up as outlined below in para 91. 89. Disbursement Arrangements. IDA funds will flow from the IDA Grant Account to four Designated Accounts denominated in US Dollar maintained by four state IAs (MOI/PCO, NCDDS, RNK and MONASRI) at the financial institutions acceptable to IDA. In the case of the ACF and TAF, as both IAs are non-state entities, no designated account is permissible. Therefore, the ACF and TAF will pre-finance project expenditures and will apply for reimbursement from IDA on a regular basis through the MEF.25 Withdrawal from the grant account will follow traditional methods of reimbursement of expenditures based on statement of expenditures (SOE). Upon Grant effectiveness, the state IA shall prepare a withdrawal application (WA Form 2380) for the initial advance not exceeding the amount specified in the legal agreement and will submit it to IDA. Replenishment withdrawal applications shall be submitted in accordance with the instructions in the Disbursement Letter issued by IDA. 90. Procurement Arrangements. Procurement under the project will be carried out in accordance with the Bank�s Procurement and Consultant Guidelines, dated May 2004, revised October 2006, and the provisions stipulated in the Legal Agreements, including the agreed Procurement Plans. To address the weak procurement capacity of some project IAs, to minimize the risk of procurement by some IAs with moderate capacity, and consistent with the Government�s decision agreed by the Bank to require an International Procurement Agent (IPA) for all Bank-financed projects in Cambodia, procurement of goods, works and consultants’ services under the project will be carried out by the IPA on behalf of the IAs and the PCO. Exceptions to the use of the IPA are: (i) procurement from United Nations Agencies; (ii) all consultant services contract procured through Single Source Selection (of consulting firms) and Sole Source Selection (of individual consultants) with the Bank’s prior concurrence; (iii) hiring by the ACF of experts on a short-term notice for emergency/urgency labor disputes; (iv) contract for ACF�s internal financial auditor which is to be undertaken by ACF�s Board of Directors; and (v) all procurement under Component 2 of the Project. To mitigate the broader fiduciary risks resulting from the weak governance environment, including procurement, in the country, extensive measures for improving governance in project implementation and increasing

24 For example, all staff nominated for FM positions will go through an accounting training program for six months followed by an examination based on a syllabus of the Khmer Institute of Certified Public Accountants . The PCO will undertake additional FM training during pre-implementation and implementation, particularly on IDA procedures. 25 For efficiency and cost effectiveness, TAF will use a suitable firm as a disbursement contractor. TAF will advance funds to the disbursement contractor to meet all Component 2 subgrant disbursements. TAF staff and the disbursement contractor will carry out comprehensive financial supervision of the subgrant recipients. In addition, TAF will contract an independent NGO to conduct random checks on subgrant recipients and a Cambodian think tank to undertake a survey of the component and assess particular subgrants every two years. Grantees will also receive capacity building assistance on fiduciary matters. See Annex 13 for further details.

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transparency and accountability in the procurement process have been incorporated in the project�s design (see Annex 8 and 11 for further details). 91. Audit Arrangements. Each IA will be responsible for preparing the Interim (Unaudited) Financial Reports (IFRs) for its component or subcomponent to be submitted to IDA. One copy of the IFRs will also be submitted to the PCO for information sharing and monitoring. At end of the year, the PCO will prepare a consolidated set of annual project financial statements of the entire project (except for the ACF for Project related funds), for the purposes of an audit by an external auditor. A separate audit will be undertaken by the ACF as part of their regular annual auditing requirements. This audit would cover all expenses of the ACF, including non Project funds. The auditor will review project performance in accordance with the International Standards on Auditing (ISA) as required by IDA. In addition, internal audits will be conducted through the Internal Audit Unit being set up in the PCO. D. Social 92. The project aims to strengthen people�s voice in governance. The key social impact of the project relates to strengthening public voice on governance issues as this is at the heart of DFGG. The Land Law dissemination by MONASRI and governance-related programming by RNK will provide new information to citizens (including disadvantaged groups such as women, children and minorities) about their rights and opportunities to influence government decisions. The mediation efforts of the DO and AC will build trust among citizens and worker�s unions that their views can have influence and that they can be safe in expressing them. Grassroots social accountability initiatives that mobilize collective action to solve governance problems will be funded through Component 2. In this way, the project will build the capacity of citizens directly and through NSAs, to hold politicians and government officials accountable for probity and effectiveness in the performance of their duties. However, such an endeavor naturally carries certain social, political and institutional risks, as noted in the Section III.E above. 93. Participation of different stakeholders is a core aspect of the project. By its very nature, DFGG requires participation of different segments of society. The theme of �constructive engagement� between state and non-state actors and consequently an emphasis on participation is present in all elements of the project. A participatory process for designing the project�s components was undertaken wherein each IA organized a set of national workshops involving key stakeholders relevant to its operations to obtain feedback on proposed activities. A Multi-stakeholder Advisory Committee, consisting of a sub-set of these stakeholders, was established for each SI to collaboratively develop their respective proposal for project support. This was meant to build ownership, improve the quality of the proposals, and establish a network of support for implementation of the project. These advisory groups met several times with the project preparation teams in each SI to discuss the draft project proposals and will continue to perform this function during the implementation stage. The IAs themselves have met regularly with each other to exchange ideas and experiences under the overall coordination of the MOI. This too is expected to continue during implementation through the PCO. In this way a network of DFGG institutions is gradually being formed and will allow greater sustainability of the project�s activities. For each SI, Partnership Plans have been developed and allocated budgets. The Partnership Grants in Component 2 will further encourage multi-stakeholder collaboration.

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An emphasis on participatory monitoring through independent CSOs has also been placed in the M&E framework for the project (see para 73). 94. Communication is critical for all components of the project. A sound communication strategy has been developed for the project that will help mobilize broader support for work on DFGG in Cambodia, and help sustain and expand results. The communication strategy will aim to explain the project to different stakeholders, as well as assist the project to listen and learn from different stakeholders during implementation. Thus, communication will contribute to both outreach and learning-by-doing. 95. The project�s communication strategy will work at three levels. First it will help promote the expanded services offered by the SIs, by marketing them (using mass media, interpersonal and even entertainment channels) to wider audiences as these services develop. This will help generate positive and increased demand for these services. Second it will help bring in additional NSAs to be funded through the project. It will also explain to rejected applicants why their application was not selected. Additionally, it will enhance the transparency of the grant-making process. Third it will advocate for, and promote, project results and exchange of ideas among key decision makers to ensure the project�s sustainability over its 4 year span and beyond, to generate complimentary and supplementary efforts, and to deepen the understanding of demand-side approaches in Cambodia. This will encourage other decision makers to undertake further investments in DFGG � enabling the desired �ripple effect� from the project. 96. To achieve the best results, communication efforts will be phased over the life of the project. Major investments will be made in the first year within Components 1 and 2, to widen understanding of and involvement with both. Communication efforts for the overall project will start small and then expand out in the subsequent years with increase in concrete results and lessons learned. Because communication is a relatively new venture for the institutions supported by the project, initial emphasis will be placed on building capacity within the institutions to ensure effective communication interventions, starting early in the pre- implementation phase. In addition, the communication strategy is expected to be implemented in partnership with professional firms and expert consultants (see Annex 12 for further details). 97. Further, in order to maximize the effectiveness of the nationwide land law dissemination campaign in Component 1B and the radio programs in Component ID, culturally apt and gender sensitive communication mechanisms pertinent to different social groups, such as women, youth, or ethnic minorities, will be designed and used, when appropriate. E. Environment

98. During project preparation, two issues emerged � minor civil works required under Component 1C (and possibly under Component 3), and repair and/or relocation of RNK�s transmitter under Component 1D -- which merited additional attention from the standpoint of environmental safeguards. These are described below. 99. Minor civil works are envisaged in two cases. Under Component 1C, construction and/or renovation of offices for the OWSO and DO that will be established in the participating districts

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is foreseen. Under Component 3, similar works may be required to accommodate the PCO (and possibly a Governance Resource and Learning Center). In both cases, it is expected that existing buildings will be rehabilitated and that new construction will be minor. The IAs have confirmed that all works will be done on existing Government property and there will be no land acquisition or involuntary resettlement. The IAs will follow a set of specific environmental safeguards guidelines that have been agreed upon by the Government and Bank at project appraisal (see Annex 10). Civil works are excluded from the eligible activities to be funded in Component 2. 100. Repair of RNK�s transmitter. During project preparation, a technical assessment of the transmission system was undertaken jointly by RNK and AusAID-supported engineers and revealed that (i) the existing 200 kW transmitter was operating at only 20-30 percent of its rated capacity; and (ii) repairs were the least-cost option to increase its power output, so as to allow better coverage in remote areas in the country. RNK requested financing of about US$ 290,000 for repair (and purchase of spare parts) of the main (200 kW) transmitter and a standby (25 kW) transmitter. The study also recommended that a due diligence analysis be undertaken to: (i) determine whether the increase in output could be done within the internationally recognized general public safety limits for radio frequency electromagnetic radiation (EMR);26 and (ii) assess whether, and what, measures would be necessary to ensure safety of workers and nearby residents at the current site. Following the study�s recommendations, RNK (with AusAID funding) carried out two technical assessments which were subsequently evaluated by an independent review funded by the Bank.27 The conclusion was that the EMR emissions from the RNK transmission tower, at its current and increased capacity, are within internationally accepted general public safety levels but a number of measures should be implemented to improve the site hazard signage and restrict access around the AM mast. 101. A set of preventive safety and security measures in relation to the EMR emissions from the transmitter are being undertaken by RNK during the pre- implementation period (see Annex 10). In addition, building on the assessments undertaken during preparation, RNK has agreed to prepare an Environmental Management Plan (EMP) to ensure the application of sound environmental and social safeguard practices and standards, should there be a need to further repair the RNK transmitter in the future. An EMP may also be required if the Government decides to eventually relocate the transmitter complex to a new site away from populated areas due to general encroachment as a result of rapid urban growth in the vicinity of the transmission site or for any other reason. The negotiated Financing Agreement includes standard Bank requirements for implementation of such an EMP. 102. Public disclosure. The MOI posted the agreed safeguards framework (presented in Annex 10) and the relevant assessment reports (including the environmental safeguards guidelines for civil works) on its website.28 The relevant safeguards-related documents were also sent to the Bank Infoshop.

26 As specified in the International Commission on Non-Ionizing Radiation Protection (ICNIRP) Guidelines: Guidelines for limiting exposure to time-varying electric, magnetic, and electromagnetic fields (up to 300 Ghz). Health Phys., 98:494-522, 1998. 27 A summary of their findings can be found in Annex 10. 28 See http://www.interior.gov.kh/dfgg_public_disclosure.asp

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F. Safeguard policies

Safeguard Policies Triggered by the Project Yes No Environmental Assessment (OP/BP 4.01) [X] [ ] Natural Habitats (OP/BP 4.04) [ ] [X] Pest Management (OP 4.09) [ ] [X] Physical Cultural Resources (OP/BP 4.11) [ ] [X] Involuntary Resettlement (OP/BP 4.12) [ ] [X] Indigenous Peoples (OP/BP 4.10) [ ] [X] Forests (OP/BP 4.36) [ ] [X] Safety of Dams (OP/BP 4.37) [ ] [X] Projects in Disputed Areas (OP/BP 7.60)* [ ] [X] Projects on International Waterways (OP/BP 7.50) [ ] [X]

103. The safeguard classification of the project is Category B (Partial Assessment). The trigger for the Environmental Assessment (OP/BP 4.01) policy was the RNK transmitter issue (see para 100). The safeguard measures being undertaken are described in Annex 10. The project does not trigger the policy on indigenous peoples (OP 4.10) since none of the activities specifically target ethnic minorities or indigenous communities. G. Policy exceptions and readiness 104. The project does not require exceptions from any Bank policies. It also meets the country-specific and regional criteria for readiness for implementation. 105. As the scheduled Board date for the project has been shifted to the second quarter of FY09 when IDA Grant resources will be available and the new Government will have taken office, all IAs and the PCO will undertake almost eleven months of pre- implementation activities which will be funded through a second PPF Advance. The Advance will support the setting up and strengthening of the project implementation systems and teams in different IAs and the PCO. It will also provide these teams with training in project management, fiduciary matters, risk management, good governance and anti-corruption, monitoring and evaluation, communication, and other relevant areas. These activities are designed to make the project ready for implementation as soon as it becomes effective. And, then the hard work will really start�.

* By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties’ claims on the disputed areas

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Annex 1: Country and Sector Background

CAMBODIA: Demand for Good Governance Project

A. Background: Major Country and Sector Issues � Governance Challenges in Cambodia

1. Cambodia has achieved impressive growth and poverty reduction over the last decade. Emerging from two decades of civil conflict and isolation, which ended only in 1991 with the signing of the Paris Peace Agreements, the country has managed to restore peace and macroeconomic stability. Political stability was only fully established following national elections in 1998. State institutions are gradually being re-built and the transition to a market-based economy is occurring rapidly. The economy has grown at over 9 percent per annum since 1998 and reached 10.2 percent in 2007. Similarly, poverty rates fell from an estimated 47% to 35% from 1994-2004, with reference to the National Poverty Line of roughly US$ 0.45 per day, and have likely declined further since 2004 due to continued high economic growth.29

2. Notwithstanding the impressive achievements, the country remains poor. With US$ 480.00 income per-capita, the country counts among low-income countries under stress (LICUS) and is heavily aid dependent. On a per-capita basis aid has averaged US$ 33.00 per annum between 1999 and 2005. A third of the population still lives below the poverty line and one in five live below the food poverty line � and inequality appears to be increasing. 30 Growth has been narrowly based on garment exports and tourism, with agriculture only recently making a sustained contribution.

3. Poor governance remains a severe challenge for broad-based development. Cambodia rated at 2.5 on a scale of 1 to 5 (best) on several indicators of public sector management and institutions by the CPIA in 2007. This places it in the fourth lowest quintile among low income countries on issues pertaining to public sector management and institutions. It compares poorly with EAP countries in WBI indicators and these indicators worsened between 1998 and 2006 in government effectiveness, rule of law, regulatory quality, voice and accountability, and particularly � in control of corruption (see Figure 1). Cambodia was ranked 162 out of 179 countries in the Corruption Perception Index (CPI)

29 World Bank (2006): Cambodia: Halving Poverty by 2015? Poverty Assessment 2006, World Bank, Phnom Penh. 30 WB 2006, cited above.

Figure A1.1 WBI Governance Indicators for Cambodia 2007

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for 2007.31 As several studies now show, the existing systems of promoting integrity, accountability and good governance in Cambodia are at best weak, if not dysfunctional.32 Moreover, public officials are not used to being scrutinized or criticized for their performance by citizens and representatives of civil society and the expression of critical or even questioning opinions is often not encouraged or accepted.33

4. Governance issues are affecting citizens� daily lives. Recent public opinions surveys in Cambodia show that: (i) 72 percent of respondents paid a bribe to obtain services;34 (ii) 44 percent of respondents think that government efforts to fight corruption are ineffective and 43 percent believe that corruption will increase in the next three years;35 (iii) 45 percent of respondents stated that the country is going in the wrong direction primarily due to corruption;36 and (iv) only 44 percent of respondents believe that local officials are honest.37 Faith in local authorities is particularly low in communities that depend upon access to natural resources, where rent seeking and corruption benefit richer, better-connected households. Equally, the donor community in Cambodia warned in 2007 that corruption inhibits foreign investment and job creation; corrodes the social and moral capital of the country and its international image; deprives the Government of hundreds of millions of dollars in lost revenue; and continues to relegate more than a third of Cambodians to live in poverty.38

5. Governance impediments are also constraining key sectors. Analytical work by the Bank and others has shown that governance impediments are constraining the growth and poverty reduction in critical sectors of the economy and limiting the progress towards the Cambodia Millennium Development Goals (CMDGs). The specific governance constraints to four priority reform areas that have been explicitly identified in the Bank�s Country Assistance Strategy (CAS) for Cambodia 39 include the following:

(a) Private Sector Development. The Bank Group�s 2004 Investment Climate Assessment findings identified overlapping trade facilitation, inspection, and licensing processes of various agencies as contributing to an excessive regulatory burden and a high incidence of corruption. A Cambodia Competitiveness Report released by the Economic Institute of Cambodia in 2005 describes corruption as the key deterrent for foreign investment, while the World Economic Forum�s Growth Competitiveness Index 2007 ranked Cambodia 110 out of 141 countries. Poor regulation exposes exporters to complex and costly practices that limit competitiveness (overlapping agency roles; excess cost and time to

31 Corruption Perceptions Index 2007, Transparency International. http://www.transparency.org/. The task team recognizes the limitations of interpreting and using perception data and has, to the extent possible, cross-referenced this with other available data and information. In the case of Cambodia, currently available data and information mostly highlights severe governance challenges. 32 TI (2006). National Integrity Systems: Country Study Report Cambodia, Transparency International. 33 See World Bank (2007b): Conditions and Capacities for Social Accountability in Cambodia, by Center for Advanced Studies, World Bank, Phnom Penh, forthcoming. 34 TI (2007). Report on the Transparency International Global Corruption Barometer 2007 35 TI 2006, cited above. 36 IRI (2007): Survey on Cambodian Public Opinion, International Republican Institute (IRI), Phnom Penh. 37 World Bank (2007d). Sharing Growth: Equity and Development in Cambodia, World Bank, Phnom Penh. 38 Statement delivered by US Ambassador Joseph A. Mussomeli on behalf of the donor community �Taking Stock of Joint Monitoring Indicators for Corruption� on February 12, 2007. 39 See World Bank (2005). Country Assistance Strategy for the Kingdom of Cambodia, The World Bank Group, Phnom Penh.

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clear imports/exports, including high unofficial costs; and smuggling). Finally, the weak court system and lack of awareness of and adherence to the Labor Law leads to recurring labor disputes and strikes, which gravely affect the climate for trade and investment in the country.

(b) Natural Resource Management (NRM). With 85 percent of the population living in rural areas, and 79 percent of the poor mainly depending on agriculture and natural resource for their livelihoods, economic growth and poverty reduction will largely depend on the rural economy. The governance record in the NRM sector so far has been less than satisfactory.40 The widely spread administration of property rights across several government agencies stalls the resolution of land disputes.41 Lack of clear assessment, mapping, classification, and registration of state lands (almost 80% of total land area) facilitates encroachment on forests and illegal sales. The weak judicial system enables land grabbing by powerful groups, increasing vulnerability of local communities, particularly poor and indigenous groups.

(c) Public Financial Management (PFM)). The joint WB-ADB Integrated Fiduciary Assessment and Public Expenditure Review, 2003 found that Cambodia needs to make more progress on fiscal, fiduciary, and institutional42 challenges in order to implement its development agenda. In comparative perspective, its PFM system ranks below average, indicating the need for substantial upgrading. Low public sector wages provide a breeding ground for corrupt practices and are a leading cause of Cambodia�s poor standing on public sector performance. Institutional checks and balances on executive power remain weak. Delayed and unpredictable releases of funds, cash-based nature of the budget system, and diversion of resources from budget to private uses are just some of governance impediments to strengthened PFM oversight and accountability.43

(d) Decentralization and citizens� partnerships for better governance. Decentralization offers important possibilities to increase interaction of CSOs with local authorities, but it also faces several challenges, such as: fragmented national framework for decentralization and de-concentration (D&D);44 lack of discretion and horizontal integration; inadequate amounts, predictability and timeliness of funding from central to local levels; and limited own-source revenue at local level.45 Commune/Sangkat

40 One out of three persons surveyed in Cambodia stated that the land issues have not been handled properly in the survey conducted by IRI 2007, cited above. 41 The Ministry of Land Management, Urban Planning and Construction (established in 1999) is the government agency with primary responsibility for land management. Actual implementation of land registration, administration of land transactions, collection of land taxes and land use planning are carried out by the Provincial and Municipal offices of the MLMUPC. The Ministry of Agriculture, Forestry and Fisheries has manages forestry land and wetlands. The MEF’s State Property Department has responsibility for administration of state immovable properties. Due to the weak capacity of the courts to deal with land cases, a National Land Dispute Settlement Commission with provincial committees was set up in 1999 to resolve, out of court, land disputes. De-mining of land and the allocation of the de-mined land is the responsibility of provinces. Similarly, the allocation of forestry and fishing concessions seem to be undertaken at provincial level or by politicians at all levels. 42 The National Audit Authority and the Parliament need be strengthened (TI 2007). 43 WB 2005, cited above. 44 In Cambodia, decentralization refers to the transfer of governmental powers, mandates and resources from central government to sub-national authorities; while de-concentration refers to assignment of central administration to a lower level of administration. 45 WB 2005, cited above.

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Councils, which allow for broad-based participation in decisions on priorities for local public services, still lack the authority, administrative capacity, and financial resources to accelerate local development, and have limited means for dispute resolution. Further, the district level of the administration is particularly weak, with few delegated powers, lack of capacity, and no downward accountability.

Citizens issues are: underdeveloped mechanisms for citizens to participate in local planning, implementation, and to hold government to account, both in terms of capacity and laws; limited CSOs� capacity to articulate demand for accountability and monitor government performance; lack of trust in the weak judicial system; weak social accountability mechanisms and limited access to information; and weak link between legislative oversight and greater accountability. Although the emergent civil society in Cambodia46 is gradually influencing the dynamics of decision-making in the public sector, the roles of CSOs in accessing, generating, using and sharing information are still underdeveloped. Citizens have scant information on the local issues because their main source of information, the national broadcast media, does not cover local concerns.47 Although print media is fairly independent compared with that in other countries48 and reports on corruption, killing of political figures, and public policy issues, defamation and disinformation charges have been brought against the authors of such publications in several instances. Barring a few exceptions, broadcast media (especially TV) remains under strong influence of the executive branch. 49

B. The Government�s and World Bank�s Strategic Framework and Progress Made

B.1 Overall Governance Strategy and Progress

6. Government strategy. Given the constraints listed above, and with increased pressure from the donor community, the Royal Government of Cambodia (RGC) has put good governance at the heart of its reform strategies - such as in the National Strategic Development Plan (NSDP) 2006-2010, and the Rectangular Strategy for Growth, Employment, Equity and Efficiency 2004-08 (RS). The NSDP has been framed as the operationalization of the RS, linking the vision in the RS to concrete goals, targets and strategies. A good start has been made to initiate PFM reforms, D&D, and the use of participatory processes by the RGC in preparing the national poverty reduction strategy. The Ministry of National Assembly-Senate Relations, and Inspection (MONASRI) and the Anti-Corruption Unit in the Council of Ministers were established in 1999 to act as watchdogs on corruption. However, neithe r of these bodies is independent, and both lack the resources and capacity to perform their designated functions properly. An anti-corruption law was drafted in 1995, but it has yet to be passed.50 The effectiveness of accountability mechanisms is compromised by a number of factors including: entrenched patronage structures; dominance by the executive and weak capacity of the National Assembly and the judiciary. In legal and judicial reforms, the RGC has created administrative structures but

46 By 2006 there were some 800 registered local NGOs in Cambodia. (WB 2007a). 47 WB 2007b, cited above. 48 The Press Freedom Index places Cambodia at 108 out of 168 countries in its global ranking. 49 TI 2006, cited above. 50 The government has also agreed in principle to promulgate a Public Access to Information Law which is to be discussed at Council of Ministers. If passed, this could be an important advance for civic engagement (CPIA 2007).

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produced limited reforms to date. Average civil service wages are well bellow the poverty line. Only modest beginning at selective pay reform has been made.51 Overall, progress has been slower than expected in implementing the needed reforms. 7. Bank strategy. The World Bank has also placed governance as its central theme in its Country Assistance Strategy (CAS) for Cambodia for 2005-2008. Pillar 1 of the CAS is specifically dedicated to activities intended to help implement improvements in governance that are needed if Cambodia is to meet the CMDGs. Following the four priority sectors that were identified as having critical governance impediments, Pillar 1 (the Governance Pillar) of the CAS, establishes four objectives: (a) Objective 1: Promote private sector development for poverty reduction, (b) Objective 2: Improve natural resources management, (c) objective 3: Improve public financial management; and (d) Objective 4: Support decentralization and promote citizen�s partnership for governance. Progress in terms of achieving governance improvements towards these four objectives is described below. B.2 Progress in Key Priority Sectors 52 8. There has been mixed progress towards achieving the expected CAS outcomes in the four governance objectives (Pillar 1) of the CAS. The recent CAS Progress Report estimates that 30 percent of the 134 progress indicators have been completed and an additional 43 percent are largely on track. The progress is strongest in the objectives 2 and 3 while it is modest in the objectives 1 and 4 as described below. 9. Progress in Private Sector Development. The RGC has made some significant progress in improving the private sector investment climate and in implementing trade facilitation reforms, but more work needs to be done, particularly on the structural reforms needed to support sustainable, private sector- led growth. The implementation of the Financial Sector Development Strategy 2006-2015 was launched in 2007 to strengthen financial industries.53 The Ministry of Labor established the Arbitration Council in 2003 with support from employer associations and unions to manage labor dispute resolution process and it has shown encouraging results. The World Bank is focusing its efforts on operationalizing a PSD reform program (2005-2010) through the 2005 Trade Facilitation and Competitiveness Project with an aim to streamline import and export processes. Similarly, the Bank has supported policy reforms in PSD through the Poverty Reduction and Growth Operation. At the level of micro-enterprise, the Bank is developing a project called Empowerment of the Poor in Siem Reap (FY09).54 The high cost of informal fees, weak enforcement of the labor law, and the lack of commercial laws remain critical challenges.

51 World Bank (2007a): Cambodia: Country Assistance Evaluation, Independent Evaluation Group, the World Bank, Washington, DC, 2007. 52 The information on the latest progress is based mainly on World Bank (2008). Country Assistance Strategy Progress Report for the Kingdom of Cambodia for the Period FY 05-08, World Bank, April 17, 2008, and Annex 2 prepared by the World Bank staff for Staff Report for the 2007 Article IV Consultation, Cambodia, International Monetary Fund, July 2007. 53 The securities market is expected to be opened in 2009. 54 This project seeks to improve incomes and capacities of the poor in Siem Reap by more effectively linking their livelihoods to the province�s tourism industry.

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10. Progress in Natural Resources Management. The RGC is addressing the NRM issues and the donors are assisting with a number of programs as detailed in the NRM framework. Sub-decrees on State Land Management and on Economic Land Concessions (ELCs) have been adopted, and management of forest resources is being improved. The objectives of the Bank�s Land Management and Administration Project (2002) are to reduce poverty, promote social stability, and stimulate economic development. The Bank with other development partners has drafted a NRM Strategic Partnership Framework which addresses key challenges to sustainable NRM. Some remaining issues are: transparency in the issuance of ELCs; low awareness of citizens of their rights under the land law; and low effectiveness of implementing the laws governing access and title to natural resources.

11. Progress in Public Finance Management. The RGC launched its Public Financial Management Reform Program (PFMRP) in 2004 to address organizational reform, including staff incentives.55 Ministry of Finance (MEF) has made good progress with major reforms in 2007, including: a significant streamlining of budget execution procedures, the introduction of program budgeting, and adoption of a new chart of accounts.56 These follow on significant reforms in 2005 related to customs and tax revenue collection, treasury payments, and streamlining of procurement processes. The Bank is supporting the PFMRP, including oil revenue management, through the Public Financial Management and Accountability Project (June 2006). The Bank also coordinated joint effort of 11 donors committed to assist in strengthening the RGC�s ability to lead and implement this agenda and to provide support via a sector wide approach (SWAp). Further progress is hindered by delays in key reforms, such as the passage and implementation of the anti-corruption law, adoption of a policy for access to information, and dissemination of information on corruption.

12. Progress in Decentralization and Civic Engagement. D&D policies are a core part of the RGC reform agenda. Some of the key milestones undertaken recently in this regard are: the �Strategic Framework for D&D Reforms� that outlines government strategy to improve democratic and accountable peoples� institutions at provincial, district, and commune levels was introduced in 200557; the MOI implemented two district reform pilots that included setting up of �One Window Service� & District Ombudsman Offices in the provinces of Siem Reap and Battambang58; Commune Council elections were held in April 2007; and the Organic Laws were approved by the National Assembly in April 2008. The Bank�s primary investment support to decentralization is through the ongoing Rural Investment and Local Governance Project (RILGP, FY03-FY06), for which additional financing was provided in FY08. 13. In the area of civic engagement and citizens� partnerships for better governance, the RGC has explicitly recognized that �achieving good governance will require the active participation and commitment of all segments of the society, enhanced information sharing, accountability, 55 The government also adopted a Merit-based pay initiative in the MEF to tackle issues of performance and capacity. The MBPI aims to introduce the principles and practices of meritocracy into the Cambodian civil service. 56 IMF (2007). Staff Report for the 2007 Article IV Consultation, Cambodia , International Monetary Fund, Washington, DC. 57 The RGC established the National Committee for Management of D&D reforms (NCDD), which is an inter-ministerial body with its secretariat in the MOI, to manage the transfer of powers to these sub-national levels of government. Accordingly, more funds are flowing to local government units. 58 The pilots were evaluated to be successful by both internal and independent reviews.

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transparency, equality, inclusiveness, and the rule of law� (RS, RGC 2004). With encouragement from the donor community, the Government has created a space for engagement of civil society in a number of reform and policy processes (e.g., in Consultative Group meetings, drafting of new laws, and Technical Working Groups). The Bank�s recent activities in this area and towards improvement of the DFGG enabling environment include: a Civil Society Assessment that maps the sector and assesses its potential for engagement in DFGG activities; a $1 million component for civil society activities in additional financing for the on-going Rural Infrastructure and Local Governance Project; grants to NGOs under the Small Grants Program; an Institutional Development Fund grant expected to support government-civil society consultations; citizen participation and enhanced disclosure of information in five on-going projects; and the launch of a $2 million grant from the LICUS Trust Fund for a Program to Enhance Capacity in Socia l Accountability (PECSA) for non-state actors. 14. While continued efforts of the RGC to decentralize and de-concentrate administrative responsibilities to the commune level are promising, participation of citizens at the local level (in particular the district level) still remains weak. Likewise, the effectiveness of the non-state sector in governance reform has not reached its full potential. C. Moving Forward: Complementing Supply-Side Efforts with Demand-Side Approaches for Good Governance

15. There is a need for a broader engagement in governance reform. Despite the Bank�s best efforts, the IEG rated the outcomes in overcoming the governance issues between 2005 and 2007 as unsatisfactory and reinforced the message that the Bank should continue to pursue reforms in governance. The RGC�s development plans recognize the importance of governance and lay out sound actions. However, as the Bank�s recent Governance and Anti-Corruption Strategy notes, strengthening accountability in challenging governance environments such as those in Cambodia, requires systematic engagement with a broad range of stakeholders.59 Critical among these stakeholders are various kinds of non-state actors (NSAs) such as civil society organizations, NGOs, think tanks, community organizations, and the media. A growing number of global case studies show that both state and society are best strengthened by establishing mechanisms that allow governments and NSAs to work constructively with each other, thus creating a positive feedback loop that can lead to improvements in governance in the short, medium and long terms.60 Involvement of NSAs, as critical stakeholders in governance reform, can add credibility to the Government�s efforts and help sustain improvements in governance. In Cambodia, where public administration capacity and systems are weak, NSAs can help promote greater awareness of reform processes, enhance their transparency, and make them more responsive to the needs of citizens. This role has thus been explicitly acknowledged in the Bank�s CAS, which notes that a broader-based demand for reforms is required as a complementary force to drive and sustain the governance reform process in Cambodia.

59 World Bank (2007c). Strengthening Bank Group Engagement on Governance and Anti-Corruption, The World Bank, Washington, DC. 60 See by Ackerman, J.: (i) State-Society Synergy for Accountability: Lessons for the World Bank , World Bank Working Paper No. 30, April 2004; and (ii) Social Accountability and the Public Sector, Social Development Paper No. 82, The World Bank, 2005.

49

16. Expanding the engagement of non-state actors is challenging. While engaging NSAs in governance reform is essential, the recent Civil Society Assessment reports that the notion of CSOs contributing to good governance by seeking and disseminating government information, participating in processes of public decision-making and holding government accountable is still an innovative idea, which is challenging to put in effect in the Cambodian context. The effectiveness of NSAs is often constrained by problems of proliferation and fragmentation, insufficient coordination, and shallow links with grassroots and the state. In addition, some non-state actors have adopted confrontational approaches in engaging with the Government, thereby limiting constructive engagement.61 17. Prospects for constructive engagement with NSAs are, however, improving due to changing public and government attitudes. The Government has often regarded non-state actors with limited trust, but there is a slow shift in its approach to them as highlighted earlier. This is clearly a positive direction, although the quality and openness of some consultation processes can be enhanced, and more is required in terms of institutionalization. Additionally, there is an increased awareness among citizens on matters related to governance and corruption. Recent public opinion surveys in Cambodia 62 show that: (i) 51 percent of respondents knows more about corruption than 12 months ago,63 (ii) acceptance of corruption �as a fact of life� decreased between 1998 and 2004,64 and (iii) when asked �should you do something about corruption?� 47 percent of the respondents said �Yes� while an additional 30 percent said �Yes, but it isn�t easy�; only 13 percent said �No�.65 The demographic transition Cambodia is undergoing - wherein a rising proportion of population comprises persons belonging to the post-conflict era and to a burgeoning middle class - is also favoring stronger public demand for good governance. When it comes to issues about which they are particularly concerned, citizens have become more vocal in demonstrating their dissatisfaction. For example, the illegal sale of state lands by local and national authorities has resulted in widespread protests by local people and NGOs. Further, labor disputes in the past often led to strikes, demonstrations and even violence, putting pressure on the Government to improve the resolution process. These trends suggest an opportune time for promoting constructive partnerships between state and non-state actors and improving mechanisms that allow voicing of grievances and exercising client power. 18. Promising governance initiat ives within the state also need to be strengthened. While support to non-state actors is a key part of any new approach to tackle governance challenges, reform is also needed within the state. In different parts of the Government, a few institutions have emerged as �islands of good governance�. These have attempted to increase the transparency and accountability of state institutions to citizens and civil society. But often these state initiatives tend to be small-scale, dispersed, and resource-constrained. Their expansion, consolidation, and sustainability are not guaranteed. For example, the Arbitration Council, which as mentioned earlier was set up to be the main agency responsible for resolution of labor 61 WB 2007b, cited above. 62 Although there are still some debates on the methodological accuracy of these various public opinion surveys, the findings undoubtedly indicate raised awareness and willingness to demand change with respect to the severe governance challenges for Cambodia. 63 IRI 2007, cited above. 64 CSD (2005): Corruption and Cambodian Households: Survey on Perceptions, Attitudes and Impact of Everyday Forms of Corrupt Practices in Cambodia . Center for Social Development, Cambodia, March 2005. 65 IRI 2007, cited above.

50

disputes, has so far only reached one sector (garments) and one region (Phnom Penh) and remains financially unsustainable. Similarly, service delivery innovations such as the One Window Service Office are currently limited in their scope and coverage. Moving forward, promising initiatives such as these need to be strengthened to achieve stronger governance impact. 66 And, these need to be brought together with each other, and with non-state actors, for exchange of ideas and experiences, synergies and greater impact. 19. It is in this context that the proposed project will complement �supply-side� with �demand-side� approaches for good governance. Traditionally, initiatives to improve governance have focused on the �supply side,� namely the strengthening of public financial management and public administration. While supply-side efforts are necessary, broader and more lasting results may only be achieved if complemented by measures that strengthen the �demand for good governance� (DFGG). Conceptually, DFGG refers to the extent and ability of citizens and other NSAs to enhance their �voice� and hold the state accountable, making it responsive to their needs. In turn, DFGG enhances the capacity of the state to become more transparent, accountable and responsive to citizens.67 20. DFGG approaches can be powerful instruments for governance reform. A growing body of international experience shows that DFGG approaches, which call for disclosure, demystification and dissemination of information, empower citizens to demand good governance through a range of feedback avenues, leading to improvements in governance and service delivery. 68 Similarly, community participation in monitoring of public expenditures, service delivery, and government performance goes a long way toward making governments more responsive and accountable to citizens.69 As a result, a growing number of citizens� initiatives around the world are applying and promoting approaches toward building accountability that rely on civic engagement.70

66 Annex 4 provides more details on the mandate, role, and selection process for some of these state innovations that are being supported under the project, including the Arbitration Council and One Window Service Office. 67 See Attachment 1 to Annex 3 for the conceptual framework for DFGG being used by the project. 68 For evidence see (i) Reinikka, R. and Svensson, J.: The Power of Information: Evidence from a Newspaper Campaign to Reduce Capture, Policy Research Working Paper 3239 , World Bank, Washington, D.C. March 2004; (ii) Svensson, J. and Bjorkman, M: Power to the people: Evidence from a Randomized Field Experiment of a Community-Based Monitoring Project in Uganda , Policy Research Working Paper 4268, June 2007; and (iii) World Development Report 2004: Making Services Work for Poor People, World Bank, Washington, D.C., 2004. 69 For evidence see: (i) Robinson, M.: Budget Analysis and Policy Advocacy: The Role of Nongovernmental Public Action, Institute of Development Studies, Working Paper 279, Sussex, September 2006; (ii) Case Study 2 - Porto Alegre, Brazil: Participatory Approaches in Budgeting and Public Expenditure Management , Social Development Notes, No. 71, The World Bank, March 2003.; (iii) Sirker, K., and Cosic, S.: Empowering the Marginalized: Case Studies of Social Accountability Initiatives in Asia, The World Bank Institute, 2007; and (iv) Social Accountability Series by South Asia Sustainable Development Department (2007). 70 For examples of social accountability initiatives see: (i) Arroyo, D. and Sirker, K.: Stocktaking of Social Accountability Initiatives in the Asia and Pacific Region, The WBI CESI Learning Program, 2005, (ii) Caddy, J., Peixoto, T. and McNeil, M: Beyond Public Scrutiny: Stocktaking of Social Accountability in OECD Countries, WBI, 2007, and (iii) McNeil, M., and Mumvuma, T.: Demanding Good Governance: Stocktaking of Social Accountability Initiatives by in Anglophone Africa, WBI, 2006.

51

Annex 2: Major Related Projects Financed by the Bank and/or other Agenc ies CAMBODIA: Demand for Good Governance Project

Latest Supervision

(ISR) Rating Sector Issue Project

On-going Bank Projects

Impl. Progress

(IP)

Devt. Objective

s (DO) Support growth and poverty reduction based on improving business climate, higher agricultural productivity, and effective public services delivery. Support policy and institutional reform through trade facilitation, export diversification, land tenure, increasing the poor�s access to land, credible budget management and reducing fiduciary risk. Relates to current CAS Objectives 1 to 5.

First Poverty Reduction and Growth Operations 1 (P071103)

MS MS

Land tenure security through development of national policies, regulatory framework, institution for land management, issuance and registration of titles, and establishment of efficient, transparent land administration system. Relates to current CAS Objective 2.

Land Management and Administration Project (P070875)

MS MS

Strengthening public financial management through improved mobilization and management of public resources, management of human resources and external audit. Relates to current CAS Objective 3.

Public Financial Management and Accountability Project (P087945)

S S

Development of medium-term plan, auditing programming, planning, reporting strategies, and capacity of National Audit Authority (NAA). Support external independent scrutiny of public expenditure and Public Financial Management Reform. Relates to current CAS Objective 3.

Strengthening National Audit Authority � IDF Grant (P099488)

U U

Implementation of key procurement reform actions as agreed in RGC action plan by strengthening the legal framework for public procurement through adoption of new procurement sub-decree, implementation rules and regulations and standardized procurement documents, and identifying a single office as the lead agency for procurement policy making and oversight in the country. Relates to CAS Objective 3.

Improvement of Efficiency of Public Procurement (P092190)

S S

Rural development and poverty reduction through supporting provision of priority public goods and services at commune level; promote good local governance through support of decentralized and de-concentrated participatory local governance systems at the commune and provincial levels. Relates to current CAS Objective 4.

Rural Investment and Local Governance Project (P071146) and Additional Financing (P105715)

S S

Rating: S = Satisfactory; MS = Moderately Satisfactory; U = Unsatisfactory

1 Rating of PRGO is pending finalization at the time of preparing this PAD.

52

OED/IEG Ratings Completed Projects (Principal Performance Ratings) Outcome Sustain

-ability ID

Impact Development of accounting standard, Accounting and Auditing Standard Board through provision of consulting services and TA. Establishment of professional association of accounting and auditing profession. Relates to current CAS Objective 3.

Financial Accountability Project � IDF Grant (P068338) 2

Induce decentralized participatory, poverty-oriented rural development approaches in some poorest areas and gaining experience in program management for formulating and implementing national strategy for rural development. Relates to current CAS Objectives 4 and 6.

Northeast Village Development Project (P058841)

S

L

M

Rehabilitation and reconstruction of social and economic infrastructure through financing small-scale projects, creating short-term employment opportunities, expanding community opportunity to identify development needs and manage small scale projects, increasing line ministry experience and capacity in developing investment criteria for local infrastructure. Relates to current CAS Objectives 4 and 6.

Social Fund I (P037088) S L SU

Social and economic infrastructure of the poor through provision of small-scale community-based sub-projects; creation of short-term employment targeting migration workers and demobilized soldiers; strengthening capacity of communities to implement development projects and sustain them; and donor coordination and co-finance. Relates to current CAS Objectives 4 and 6.

Social Fund II (P050601)

S

L

M

Enhancing capacity of Cambodian public sector to perform critical tasks effectively. Inducing coordinated effort to shift civil services incentive to a sustainable one and create a system of accountable and transparent governance. Relates to current CAS Objective 6.

Economic and Public Sector Capacity Building Project (P071247) 3

Rule of law through labor education. Production of training materials, provision of training to labor inspectors, women workers, government officials, judges on application of labor law and regulations. Relates to current CAS Objective 6.

Labor Law Education � IDF Grant (P061148)

Implementation of Social Land Concessions on a pilot basis. Supporting sustainable livelihoods for social land concession recipients; identifying appropriate land, social land concessions beneficiaries and providing livelihood support based on transparency and rule of law. Relates to current CAS Objective 2.

Land Allocation for Social and Economic Development (P084787)

Rating: S = Satisfactory; L = Likely; M = Modest; SU = Substantial 2 No IEG/OED ratings available for IDF projects. 3 This project was completed in December 2007 and therefore uses the new ICR/IEG evaluation criteria. The summary ratings were: Outcomes = U (Unsatisfactory), Risk to Development Outcome = S (Substantial), Bank Performance = MS (Moderately Satisfactory), Borrower Performance = MS.

53

Projects of other international agencies

Agency Project Description

AusAID Cambodia Radio Development Assistance Program

Implemented by The Australian Broadcasting Corporation in partnership with Radio National of Kampuchea. The total fund is US$ 2.40 million for the period from 2005 to 2008.

DFID/ DANIDA

Natural Resource Management and Livelihood (NRML) Program

Implemented in collaboration with RGC, DFID, and DANIDA. Five years project (July 2006- December 2010). The total fund is US$ 60.00 million (60% from DANIDA and 40% from DFID)

ILO Labor Dispute Resolution Project (LDRP)

Implemented in collaboration with MOLVT through the Arbitration Council in Cambodia (from January 2002-January 2007) and funded by the U.S. Department of Labor (USDOL).

KAF Asia Urbs III

Implemented by the Rhein-Sieg-Kreis (Germany), the City of Spoleto (Italy), the Konrad-Adenauer-Foundation, and BBJ Servis with the funding from the European Commission. The project runs from December 2004 � November 2007. It has since been extended till March 2008.

UNDP Access to Justice Project (A2J)

Implemented by UNDP in partnership with MOJ, MOI, and CLJR. The project is initially planned for the period between 2006 and 2009, but now with funding from Spain government the project expanded to 2011 with the total funding of approximately US$ 3.50 million.

USAID/EWMI Human Rights and Justice (HRAJ)

Implemented by East West Management Institute (EWMI) with funding from USAID. Project will end in 2008.

USAID/PACT

Anti-Corruption Coordinated Action Program (ACCAP)/Mainstreaming Anti-Corruption for Equity (MAE)

Implemented by PACT Cambodia with funding from USAID and DANIDA. The MAE (and its predecessor ACCAP) has the combined total funding of about US$ 6.00 million. The project started late 2006 and will end 2010.

USAID/PACT Local Administration and Reform Program (LAAR)

Implemented by PACT Cambodia. The project is from October 2005 to September 2010 with funding of US$ 14.40 million.

54

Annex 3: Results Framework and Monitoring CAMBODIA: Demand for Good Governance Project

Table-1: Results Framework

PDO Project Outcome Indicators 1 Use of Project Outcome

Information To enhance the demand for good governance (DFGG)2 in priority reform areas3 by strengthening institutions4, supporting partnerships, and sharing lessons.

1. Promoting DFGG in priority reform areas.

§ Level of awareness (as %) among targeted5 stakeholders of information disclosed and disseminated through relevant6 DFGG programs and institutions supported by the project.

§ Percentage of informed stakeholders who have found this information relevant/useful for improving governance and/or achieved greater understanding/ clarity of issues disseminated.

2. Mediating DFGG in priority reform areas:

§ Number of disputes and instances of citizens� feedback identified and mediated through relevant DFGG programs and institutions supported by the project.

§ Percentage of these disputes and instances of citizens� feedback that are adequately resolved or addressed.

3. Responding to DFGG in priority reform areas:

§ Number of responses by

To evaluate the effectiveness of the project in strengthening demand for good governance (DFGG) in priority reform areas For each responsible agency to assess the performance and effectiveness of DFGG programs supported by the project and use the information to improve project results and build support for DFGG beyond the project

1 Note that most of the outcome indicators for the overall project are composite indicators that aggregate the component and subcomponent indicators of specific implementing agencies. These sub-indicators also include those emerging from the grant-funded NSA initiatives in Component 2 (see explanation below in paras 2 and 3 of this Annex). 2 Conceptually, the project proposes that strengthening DFGG can be done through four processes/functions � promotion, mediation, response, and monitoring. This conceptual framework for DFGG that underlies the choice of project outcome indicators is elaborated in Attachment 1 to this Annex. 3 Priority reform areas, coincident with the Governance Pillar of the Bank�s CAS, are: (a) private sector development; (b) management of natural resources; (c) public financial management; and (d) decentralization and enhanced citizens� partnerships for better governance. 4 Both state and non-state institutions will be supported in the project. 5 Target groups for dissemination activities will differ across different components/subcomponents. 6 Not all programs and institutions will perform each DFGG function (i.e, promotion, mediation, etc.)

55

government to demands triggered through relevant DFGG programs and institutions supported by the project.

§ Percentage of relevant stakeholders satisfied with these responses.

4. Monitoring to inform DFGG in

priority reform areas:

§ Number of public sector institutions or activities whose performance is monitored independently through DFGG programs and institutions supported by the project.

§ % of these institutions or activities that used and acted on information for adjusting their performance and actions

Intermediate Outcomes Intermediate Outcome Indicators Use of Intermediate Outcome Monitoring

A. Strengthened capacity and effectiveness of state institutions (SIs) and non state actors (NSAs) to undertake DFGG programs in priority reform areas (All components).

Strengthened Capacity and Effectiveness:

§ Self assessment and expert assessment of increased capacity to undertake DFGG programs by participating SIs and NSAs (% reporting high or increased capacity)

§ Stakeholder feedback, self assessment, and expert assessment of effectiveness of SI and NSA programs supported by the project (% rating high or increased effectiveness)

§ Revenues generated by SIs as a percentage of operating costs (where relevant for financial sustainability).

To monitor progress and evaluate the effectiveness of project support for capacity building and use the information to improve project results. To assess financial sustainability of certain SI programs after the project ends.

B. Partnerships supported between and among state and non-state actors to undertake DFGG activities (All components).

Supporting State & Non-State Partnerships:

§ Number of partnerships between and among SIs and NSAs established or continued under the project.

§ Self assessment, and expert assessment of effectiveness of these partnerships (% noting high)

§ Number of new or existing partnerships between and among SIs

To monitor progress and performance of project supported partnerships and use the information to improve project results

To assess impact of the project in increasing the number, effectiveness and sustainability of SI-NSA partnerships

56

and NSAs for which the agencies (i) express interest, (ii) make a concrete plan, and (iii) take the first steps to continue partnerships beyond life of the project.

C. Lessons and experiences with DFGG activities in the project and beyond assessed and communicated to SIs and NSAs within and beyond the project (all components).

Capturing and Sharing Lessons

§ Number of lessons (measured as cases, reports, studies, etc.) of DFGG activities (generated by the project, from other programs in Cambodia, and internationally) that are assessed, documented, disseminated, and used in training and capacity building programs .

§ % of stakeholders (within and beyond the project) reporting increased access to information on DFGG initiatives

§ Number of newly created NSA networks, resource centers, or informal coalitions established to share and disseminate lessons of DFGG experience

§ Self assessment, and expert assessment of increased trust and evidence of constructive engagement between NSAs and government agencies

§ Number of SIs and NSAs (within and beyond the project) that (i) express interest, (ii) make a concrete plan, and (iii) take the first steps to undertake new or continue existing DFGG activities beyond the life of the project.

To learn and share lessons and experiences about what works, what does not and why in supporting DFGG activities in Cambodia

To assess the impact of the project in increasing awareness and understanding of SIs and NSAs regarding DFGG

To assess the impact of the project in changing willingness of SIs and NSAs to undertake DFGG activities beyond the project

Arrangements for results monitoring: 1. Each Implementing Agency (IA) will have its own M&E system. As described in Annex 4 and 6, each agency being supported under the project is being treated as a separate implementing agency (IA). As each of these IAs are implementing very different programs in different sectors, the M&E of each component and subcomponent will be managed independently by the concerned IA and a significant allocation of funding (between 3-5%) has been dedicated towards this activity in each case. The responsibility for managing the M&E activities will be undertaken by dedicated internal units within each of the IAs. Each IA has also developed its own Results Framework with separate performance and outcome indicators relevant to its particular program, which is available in their respective Project Proposals (see Annex 15). Reporting of these IA-specific indicators will be done through the Quarterly Progress Reports (QPR), Annual Work Plans (AWP), and Annual Progress Reports (APR) to be prepared by each IA and presented in

57

aggregate by the M&E unit within the Project Coordination Office (PCO) housed in the Ministry of Interior (MOI) � the project�s Executing Agency. 7 Regular management, oversight, and assessment meetings within each IA and through the Project Management Team (PMT) and Project Coordination Group (PCG) have been planned to take stock of the M&E findings and incorporate them into action plans and decision making. In addition the PCO in MOI will organize an Annual Review of Project Implementation and take decisions regarding design and implementation modalities based on monitoring indicators. 2. Aggregation through the DFGG Framework. While each of the individual IAs will be monitoring indicators relevant to their own program, there remains a challenge in aggregating results at the project level. For this purpose, the project is relying upon a conceptual framework for DFGG (see attachment 1 to this Annex) that has guided the project�s design. This framework identifies four elements or processes that strengthen DFGG � promotion, mediation, response, and monitoring of demand. As each institution and program supported under the project is in some way performing one or more of these four functions, the project- level outcome indicators have also been formulated around this framework.8 In this way, even though the project is dealing with diverse sectors and institutions, there is a common framework around which aggregate results can be measured. 3. Aggregate Results as Composite Indices. The use of a common framework to aggregate results across the different elements of the project requires that the project- level outcome indicators will in most cases take the form of composite indicators that aggregate all the relevant IA-level indicators for a particular outcome.9 The aggregation of results indicators will be done by the PCO based on the individual IA outcome indicators that have been collected for their respective sector and program. For example: the outcome indicator �Number of disputes and instances of feedback identified and/or mediated through relevant DFGG programs and institutions supported by the project� will be a composite indicator that the PCO will base on the following:

i. number of labor dispute cases handled by the Arbitration Council (AC), ii. number of disputes and complaints related to land law implementation received

and handled by the Ministry of National Assembly Senate Relations and Inspection (MONASRI)

iii. number of local disputes or complaints received by the District Ombudsman (DO) across all targeted districts,

7 See Annex 6 for more details on the reporting arrangements. It is important to note that the overall project results framework is a complement to and not a substitute for the IA level results frameworks. 8 These are the indicators that have been reported in the results framework (Table-1 of this Annex). 9 An alternative approach to aggregating IA-level indicators would be to have a single instrument (e.g., survey) that randomly captures perceptions of citizens and other stakeholders on the different dimensions of DFGG � in a sense measuring the �level of DFGG� in the country. However, the scale and scope of the project is too fragmented and specific elements too focused for such a general instrument to make sense. Designing an elaborate sampling strategy to overcome the scope issues would also be very challenging and not add much more value than having a composite index. Finally, the specificity of the IA-level outcome indicators is greater than what would be achieved through indicators in an aggregate perceptions survey. Therefore, using composite indices based on the IA outcomes is a more robust approach.

58

iv. number of requests, complaints or instances of feedback received through the Talk Back Program (TBP) in Radio National Kampuchea (RNK), and

v. number of disputes and instances of feedback identified and/or mediated by NSAs through Component 2.

4. Change Captured through Percentage Differences. Given that the scope of the different programs is quite diverse, the scale of the sub- indicators above would be very different as well, e.g., while the number of labor disputes handled by AC would be in the hundreds, there will be far fewer disputes and complaints received by the DO (given past experience). Therefore, changes in the sub- indicator would be captured through percentage differences over time. This way the first-order scale effects of the sub- indicator would be accounted for. 5. Weighting for �Composite� Indices. The formula for aggregation of sub- indicators to form composite indices will be determined once the baseline values and final target values of each have been established. In some cases, aggregation may take the form of a simple sum or average. In others, however, there may be a need for some form of weighting or manipulation to come up with a meaningful composite indicator. For instance, scale problems may continue to remain despite using percentage changes to monitor change, if the baseline value for these indicators is very low. A case in point would be the DO and OWSO where the simple expansion of these offices to new districts will create such enormous percentage increases in indicators like �number of disputes� or �number of citizen service requests� that other sub- indicators would be �crowded out�. In situations like this, weighting options such as: (a) dividing by number of districts for OWSO-DO sub- indicators, (b) capturing percentage achievement of pre-determined target values across indicators, (c) using baseline scale factors for �correcting� percentage change values, or (d) some other appropriate weighting scheme, would have to be used for constructing meaningful composite indices. 10 In either case, however, the composite indices would be recorded along with each sub- indicator so that there is no loss of underlying information and complete transparency with regards to its construction. 6. Aggregation of Relevant Sub-Indicators Only. As all IAs are not involved in each DFGG function, there will also be some composite results indicators that only aggregate over a few IAs. For example: the outcome indicator on �Number of responses by government to demands triggered through relevant DFGG programs and institutions supported by the project� will be an aggregate of only two sub- indicators:

i. Number of citizen service delivery requests catered to at OWSOs ii. Number of government or policy responses triggered via learning activities

(Annual Good Governance Forum, studies, etc.) conducted by the PCO 7. Mix of Quantitative and Qualitative Tools. The M&E strategies for capturing the outcomes and results indicators for the project and its components involve the use of a diverse mix of both quantitative and qualitative tools. These include the use of instruments such as

10 Beyond ensuring �numerical� equivalence between sub-indicators (which is a problem of scale as described above in the case of the OWSO-DO), there is also an issue of ensuring �subjective� equivalence between sub-indicators. For instance, the PCO may want to scale a major policy change triggered by the project at a higher level than smaller responses made to demands from the project. Again, the decisions on appropriate weighting for situations like this will have to be made on a case-to-case basis. But whatever weighting scheme is used would be kept constant over time to make the composite index meaningful.

59

citizen�s report cards, scorecards, focus group discussions, �most significant change� surveys, audience polls and phone surveys, case studies and special assessments. In most cases, while quantitative indicators will be used for process, input, and output monitoring, the measurement of outcomes and results will be done through perception or qualitative indicators (even if quantified through scoring). This is necessitated by the fact that many of the outcome indicators that capture the results of DFGG activities tend to be qualitative in nature. 8. Emphasis on Independent Evaluation. Given the varying internal M&E capacities of the IAs and the PCO, and recognizing the need to have independent evaluations of performance and impact as a basic building block of a DFGG approach, the project is also emphasizing external or �third-party� monitoring by competent national research institutes and CSOs. This includes the conduct of baseline, mid-term and/or end-term evaluations for the AC, MONASRI and OWSO-DO subcomponents, an annual audience share and listeners� perception survey for RNK, and an annual stakeholder performance scorecard and biannual expert audit for the AC under Component 1. For Component 2, TAF will contract an independent NGO to conduct random checks on grant recipients and a Cambodian think tank to undertake a survey of the component and assess particular grants at mid-term and end of the project. For capturing the �ripple effect� and �learning� objectives under Component 3, the PCO will contract an independent CSO to undertake an informal annual survey of targeted stakeholders in both the state and non-state sectors. This will measure their awareness and understanding of DFGG and changing perceptions regarding the levels of constructive engagement between citizens and the state. These independent monitoring arrangements (especially for Component 1) that have been built into the M&E framework for the IAs are also meant to promote partnership between state and non-state institutions.11 9. Specific Evaluation Case Studies. Beyond the regular M&E and independent evaluation systems described above, the project will also conduct specific evaluation case studies to capture the financial consequences of project- funded initiatives. For instance, certain NSA initiatives related to public expenditure tracking or budget analysis may lead to savings of public resources. However, as the project does not know in advance whether such initiatives will emerge through the demand-driven grant procedures in Component 2, specific targets and indicators cannot be pre-determined for them in the results matrix. Instead, Component 2B and 3B include a budget for conducting specific case studies of the impact of such initiatives which will form part of the final supervision and evaluation records for the project. Additionally, studies on the economic value of the functioning of the AC (in terms of savings from industrial strikes avoided) and of the reduced financial costs of receiving administrative services through the OWSO will also be undertaken as part of the M&E activities of Component 1A and 1C respectively. Component 3B also includes resources for other studies that may be required to better understand the relative effectiveness and impact of the DFGG programs undertaken. 10. Wide Dissemination of Results. Finally, in line with the knowledge sharing goals of the project, the results from the various M&E activities will be shared widely through the IAs as well as through the PCO. The Awareness Raising and Capacity Building Program under

11 Apart from what has been designed upfront, it is expected that some degree of independent monitoring of the performance of the state institutions (Component 1) will also be undertaken by grant recipients under the non-state component (Component 2).

60

Component 3 will promote learning about DFGG approaches and practices, by supporting an Annual Good Governance Forum, workshops and seminars more specifically focused on particular issues and lessons captured through M&E. The Communications Program (also under Component 3), will reach out to the broader public to, inter alia, disseminate project results and track perceptions of its impact. Both programs will build on the M&E activities carried out by the various IAs as well as on specific assessments undertaken through Component 3�s Studies Program (see Annex 4 for more details). Further, all progress reports (QPR, AWP, and APR) will be placed online through the respective IA�s website.

61

Tab

le -2

: Arr

ange

men

ts fo

r R

esul

ts M

onito

ring

1

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

Proj

ect O

utco

me

Indi

cato

rs2

1. P

rom

otin

g D

FGG

in p

rior

ity r

efor

m a

reas

.

C

ompo

site

: Lev

el o

f aw

aren

ess (

as %

age)

am

ong

targ

eted

stak

ehol

ders

of i

nfor

mat

ion

disc

lose

d an

d di

ssem

inat

ed th

roug

h re

leva

nt D

FGG

pr

ogra

ms a

nd in

stitu

tions

supp

orte

d by

the

proj

ect.

To b

e ca

lcul

ated

af

ter s

ub-

indi

cato

r ba

selin

es

com

plet

e

TBD

TB

D

TBD

TB

D

Ann

ual;

reco

rded

in

Ann

ual R

epor

t A

ggre

gate

d fro

m su

b-in

dica

tors

usin

g ap

prop

riate

wei

ghtin

g sc

hem

e to

be

deci

ded

afte

r ba

selin

es a

re c

ompl

ete.

PCO

in M

OI3

Sub-

indi

cato

rs:

- %

of u

nion

and

em

ploy

er o

rgan

izat

ion

lead

ers

and

repr

esen

tativ

es a

war

e of

the

AC

and

labo

r ar

bitra

tion

proc

ess v

ia A

C o

utre

ach

To b

e ca

lcul

ated

in

pre

-impl

. pe

riod

- 10

%

incr

ease

-

10%

in

crea

se

Bi-a

nnua

l; re

cord

ed in

re

leva

nt A

nnua

l R

epor

t

Bas

elin

e, M

id-T

erm

and

En

d Te

rm fo

cus g

roup

di

scus

sion

s (FG

Ds)

and

ke

y in

form

ant i

nter

view

s (K

IIs)

with

sam

ple

(sel

ecte

d ra

ndom

ly

prop

ortio

nal t

o �s

ize�

4 of

sect

or) o

f uni

on &

em

ploy

er g

roup

lead

ers

and

repr

esen

tativ

es.

Alte

rnat

ivel

y, a

sam

ple

surv

ey w

ith a

stan

dard

qu

estio

nnai

re c

ould

be

adm

inis

tere

d w

orke

rs a

nd

empl

oyer

s in

diff

eren

t w

orkp

lace

s, w

hich

will

be

chos

en to

repr

esen

t the

AC

F th

roug

h co

ntra

cted

co

nsul

tant

s/N

GO/

rese

arch

ag

ency

/firm

(with

op

tion

of

cond

uctin

g si

mul

tane

ousl

y w

ith P

CO

)

1 T

hese

arr

ange

men

ts w

ill b

e fu

rther

dev

elop

ed b

efor

e ef

fect

iven

ess.

Bas

elin

e st

udie

s are

pla

nned

for e

ach

subc

ompo

nent

and

com

pone

nt p

rior t

o pr

ojec

t ef

fect

iven

ess.

Det

aile

d de

sign

of m

etho

dolo

gica

l app

roac

hes f

or th

e da

ta c

olle

ctio

n in

stru

men

ts w

ill b

e un

derta

ken

prio

r to

thes

e ba

selin

es.

2 In th

e ta

ble

abov

e �c

ompo

site

� ind

icat

ors r

efer

to p

roje

ct-le

vel i

ndic

ator

s tha

t are

obt

aine

d th

roug

h so

me

wei

ghte

d av

erag

e of

IA le

vel s

ub-in

dica

tors

. �A

ggre

gate

� in

dica

tors

on

the

othe

r han

d re

fer t

o pr

ojec

t-le

vel i

ndic

ator

s tha

t are

obt

aine

d/m

easu

red

dire

ctly

and

are

not

com

pose

d of

sub-

indi

cato

rs. S

ub-in

dica

tors

them

selv

es

are

IA-s

peci

fic in

dica

tors

der

ived

from

thei

r res

pect

ive

resu

lts fr

amew

orks

. 3 F

or e

ach

of th

e co

mpo

site

indi

cato

rs, t

he P

CO

will

be

resp

onsi

ble

for a

ggre

gatin

g re

sults

pro

vide

d by

the

IAs u

sing

an

appr

opria

te w

eigh

ting

sche

me,

pro

vidi

ng

qual

ity c

ontro

l, an

d pr

oduc

ing

an a

naly

tical

sum

mar

y of

the

resu

lts.

4 Sec

tor s

ize

can

be m

easu

red

thro

ugh

diff

eren

t ind

ices

like

num

ber o

f firm

s, si

ze o

f rev

enue

, num

ber o

f em

ploy

ees,

etc

�

62

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

dist

ribut

ion

of ta

rget

ed

sect

ors5

- % o

f peo

ple

awar

e of

land

law

and

thei

r rig

hts

unde

r the

law

thro

ugh

MO

NA

SRI d

isse

min

atio

n ca

mpa

ign

in ta

rget

ed d

istri

cts a

nd a

t the

nat

iona

l le

vel6

To b

e ca

lcul

ated

fo

r a n

ew

set o

f di

stric

ts

each

yea

r7 st

artin

g in

pr

e-im

pl.

Perio

d

20%

in

crea

se

in L

D

targ

eted

di

stric

ts

20%

in

crea

se

in L

D

targ

eted

di

stric

ts8

20%

in

crea

se

in L

D

targ

eted

di

stric

ts

20%

in

crea

se in

LD

ta

rget

ed

dist

ricts

Ann

ual;

reco

rded

in

Ann

ual R

epor

t H

ouse

hold

(HH

) sur

vey

an

d FG

Ds w

ith se

para

te

grou

ps o

f tar

gete

d ci

tizen

s in

sam

ple

of 8

dis

trict

s per

ye

ar

MO

NA

SRI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

- %

of c

itize

ns a

war

e of

loca

l adm

inis

tratio

n an

d se

rvic

es, a

nd e

xist

ence

of O

WSO

, and

DO

(onc

e es

tabl

ishe

d) in

targ

eted

dis

trict

s

To b

e ca

lcul

ated

in

Yr 1

30

%

incr

ease

Ba

selin

e an

d en

d-te

rm; r

ecor

ded

in

rele

vant

Ann

ual

Rep

ort

Bas

elin

e an

d en

d su

rvey

s in

a sa

mpl

e of

targ

eted

di

stric

ts

NC

DD

S th

roug

h co

ntra

cted

co

nsul

tant

s/N

GO

/re

sear

ch

agen

cy/fi

rm

- % o

f RN

K li

sten

ers w

ho c

laim

they

lear

ned

mor

e ab

out g

over

nanc

e is

sues

thro

ugh

RN

K

prog

ram

s sup

porte

d by

the

DFG

G p

roje

ct (T

BP,

ne

ws a

nd fe

atur

e pr

ogra

ms)

To b

e ca

lcul

ated

in

pre

-impl

. pe

riod

10%

in

crea

se

10%

in

crea

se

10%

in

crea

se

10%

in

crea

se

Ann

ual;

reco

rded

in

Ann

ual R

epor

t A

nnua

l sta

ndar

dize

d A

udie

nce

Res

earc

h Su

rvey

(nat

iona

l)

RN

K th

roug

h co

ntra

cted

co

nsul

tant

s/N

GO

/re

sear

ch

agen

cy/fi

rm

5 Sec

tor s

ize

can

be m

easu

red

thro

ugh

diff

eren

t ind

ices

like

num

ber o

f firm

s, si

ze o

f rev

enue

, num

ber o

f em

ploy

ees,

etc

�

6 The

Law

Dis

sem

inat

ion

cam

paig

n w

ill b

e bo

th a

t the

targ

eted

dis

trict

s lev

el (m

ore

inte

nse

inte

ract

ive

cam

paig

n) a

nd a

t the

nat

iona

l lev

el u

sing

mas

s med

ia. T

he

base

line

stud

y fo

r the

nat

iona

l lev

el w

ill b

e do

ne o

nly

once

and

no

late

r tha

n Ju

ne 3

0th, 2

009.

The

impa

ct e

valu

atio

n m

etho

dolo

gy th

at is

bei

ng d

esig

ned

will

pro

vide

fu

rther

det

ails

of t

he m

etho

dolo

gy a

nd a

rran

gem

ents

for t

he n

atio

nal b

asel

ine

and

subs

eque

nt an

nual

eva

luat

ion

stud

ies.

Not

e al

so th

at th

is su

b-in

dica

tor i

s lik

ely

to

itsel

f be

a co

mpo

site

indi

cato

r sum

mar

izin

g th

e re

spon

ses o

n di

ffer

ent q

uest

ions

rela

ted

to �a

war

enes

s� o

f the

Lan

d La

w in

the

diff

eren

t sur

veys

. 7 T

he sa

mpl

ing

for t

he M

ON

ASR

I sur

veys

will

follo

w a

�ste

p� m

etho

dolo

gy �

that

is, i

n th

e ba

selin

e du

ring

pre-

impl

emen

tatio

n 8

dist

ricts

will

be

cove

red,

whi

ch

will

be

the

targ

ets o

f LD

in Y

r1. I

n Y

r 1, t

he su

rvey

will

sam

ple

4 of

thes

e di

stric

ts to

cap

ture

bef

ore-

afte

r cha

nge,

and

ano

ther

4 o

ut o

f the

8 d

istri

cts t

hat w

ill b

e ta

rget

ed fo

r LD

in Y

r 2, a

nd so

on.

In th

e fin

al y

ear,

the

8 di

stric

ts w

ill c

over

4 fr

om th

e Y

r 4 L

D a

nd 4

mor

e sp

read

from

all

prev

ious

dis

trict

s to

see

whe

ther

aw

aren

ess l

evel

s hav

e ch

ange

d ov

er ti

me.

For

ass

essi

ng th

e ou

tcom

es o

f the

nat

iona

l lev

el L

D c

ampa

igns

, a se

para

te a

sses

smen

t met

hodo

logy

will

be

devi

sed

durin

g th

e pr

e-im

plem

enta

tion

phas

e.

8 Incr

ease

will

onl

y be

trac

ked

for t

hose

dis

trict

s whe

re L

D w

as a

ctua

lly u

nder

take

n. F

or o

ther

s the

act

ual a

war

enes

s lev

els w

ill b

e ob

tain

ed, b

ut w

ould

not

be

part

of

the

targ

et c

alcu

latio

n. T

he ta

rget

val

ues w

ill b

e re

vise

d ba

sed

on th

e ba

selin

e va

lues

eac

h ye

ar.

63

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

- Ave

rage

% a

war

enes

s of d

isse

min

ated

in

form

atio

n am

ong

rele

vant

stak

ehol

ders

in

area

s co

vere

d by

awar

enes

s and

dis

clos

ure

cam

paig

ns o

f rel

evan

t NSA

s sup

porte

d by

the

DM

9

N.A

. -

TBD

10

10%

in

crea

se

10%

in

crea

se

Ann

ual;

reco

rded

in

Ann

ual R

epor

t A

nnua

l NSA

pro

gres

s re

ports

with

met

hodo

logy

gu

idan

ce fr

om T

AF

M&

E un

it. C

ompi

led

by T

AF

with

pos

sibi

lity

of

wei

ghtin

g.11

NSA

s sup

porte

d th

roug

h D

M

- % o

f sta

keho

lder

s (w

ithin

and

bey

ond

the

proj

ect)

repo

rting

aw

aren

ess o

f DFG

G p

rinci

ples

an

d ap

proa

ches

thro

ugh

PCO

lear

ning

act

iviti

es

0 40

%

50%

60

%

70%

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

Ann

ual i

nfor

mal

surv

ey o

f pr

ojec

t sta

keho

lder

s fro

m

SIs a

nd N

SAs u

sing

sim

ple s

corin

g/ra

ting

ques

tionn

aire

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

C

ompo

site

: Per

cent

age

of in

form

ed st

akeh

olde

rs

who

hav

e fo

und

this

info

rmat

ion

rele

vant

/use

ful

for i

mpr

ovin

g go

vern

ance

and

/or h

ad

unde

rsta

ndin

g/cl

arity

of i

ssue

s dis

sem

inat

ed.

To b

e ca

lcul

ated

af

ter s

ub-

indi

cato

r ba

selin

es

com

plet

e

TBD

TB

D

TBD

TB

D

Ann

ual;

reco

rded

in

Ann

ual R

epor

t A

ggre

gate

d fro

m su

b-in

dica

tors

usin

g ap

prop

riate

wei

ghtin

g sc

hem

e to

be

deci

ded

afte

r ba

selin

es a

re c

ompl

ete.

PCO

in M

OI

Sub-

indi

cato

rs:

- Le

vel o

f und

erst

andi

ng (a

s % sc

orin

g hi

gh o

n ra

ting

scal

e) o

f lab

or a

rbitr

atio

n pr

oces

s am

ong

unio

n an

d em

ploy

er o

rgan

izat

ion

lead

ers a

nd

repr

esen

tativ

es

To b

e ca

lcul

ated

in

pre

-impl

. pe

riod

- 5%

in

crea

se

- 5%

in

crea

se

Bi-a

nnua

l; re

cord

ed in

re

leva

nt A

nnua

l R

epor

t

Focu

s Gro

up D

iscu

ssio

ns

(FG

Ds)

and

/or k

ey

info

rman

t int

ervi

ews

(KII

s) w

ith sa

mpl

e (s

elec

ted

rand

omly

pr

opor

tiona

l to

�siz

e� o

f se

ctor

) of u

nion

&

empl

oyer

gro

ups

AC

F

9 T

he P

DO

out

com

e in

dica

tors

for p

rom

otio

n an

d m

onito

ring

unde

r Com

pone

nt 2

will

be

track

ed fo

r NSA

s rec

eivi

ng g

rant

s fro

m th

e D

evel

opm

ent M

arke

tpla

ce-li

ke

com

petit

ion.

For

smal

l gra

nts,

whi

ch a

re m

ore

in th

e na

ture

of g

rass

root

s ini

tiativ

e, o

utco

me

mon

itorin

g w

ill b

e do

ne th

roug

h in

divi

dual

cas

e st

udie

s of a

rand

om

sam

ple

of th

ese

durin

g th

e m

id-te

rm a

nd e

nd-te

rm e

valu

atio

ns b

y th

e in

depe

nden

t thi

nk ta

nk to

be

cont

ract

ed b

y TA

F. If

pos

sibl

e, fo

r Yr2

and

Yr4

the

resu

lts fr

om

thes

e ca

se st

udie

s will

be

inco

rpor

ated

in th

e ov

eral

l out

com

e in

dica

tors

for t

he c

ompo

nent

. 10

As t

his w

ill b

e de

term

ined

thro

ugh

the

base

line

valu

es.

11 A

s the

NSA

initi

ativ

es su

ppor

ted

thro

ugh

the

DM

will

in th

emse

lves

be

quite

div

erse

, the

NSA

com

pone

nt su

b-in

dica

tor t

hat w

ill b

e re

porte

d to

the

PCO

will

itse

lf be

a c

ompo

site

indi

cato

r tha

t wou

ld li

kely

requ

ire so

me

form

of w

eigh

ting

by T

AF

(to co

ver b

oth

scal

e an

d su

bjec

tive

diff

eren

ces a

cros

s ini

tiativ

es).

64

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

- % o

f peo

ple

in ta

rget

ed d

istri

cts,

and

at th

e na

tiona

l lev

el, c

over

ed b

y M

ON

ASR

I lan

d la

w

diss

emin

atio

n w

ho fi

nd in

form

atio

n us

eful

and

w

ho u

sed

the

info

rmat

ion12

.

To b

e ca

lcul

ated

fo

r new

set

of

dis

trict

s ea

ch y

ear

5%

incr

ease

in

LD

ta

rget

ed

dist

ricts

5%

incr

ease

in

LD

ta

rget

ed

dist

ricts

5%

incr

ease

in

LD

ta

rget

ed

dist

ricts

5%

incr

ease

in

LD

targ

eted

di

stric

ts

Ann

ual;

reco

rded

in

Ann

ual R

epor

t H

ouse

hold

(HH

) sur

vey

an

d FG

Ds w

ith se

para

te

grou

ps o

f tar

gete

d ci

tizen

s in

sam

ple

of 8

dis

trict

s per

ye

ar

MO

NA

SRI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

-

% o

f citi

zen

and

busi

ness

repr

esen

tativ

es

repo

rting

hig

h va

lue/

rele

vanc

e of

info

rmat

ion

on

loca

l adm

inis

tratio

n, O

WSO

, and

DO

shar

ed

thro

ugh

peop

le�s

par

ticip

atio

n m

easu

res i

n ta

rget

ed d

istri

cts

To b

e ca

lcul

ated

in

pre

-impl

. pe

riod13

5%

incr

ease

5%

in

crea

se

5%

incr

ease

5%

in

crea

se

Ann

ual;

reco

rded

in

Ann

ual R

epor

t FG

Ds a

nd K

IIs w

ith

citiz

en a

nd b

usin

ess

repr

esen

tativ

es u

nder

take

n at

the

conc

lusi

on o

f an

nual

citi

zen

foru

m in

ea

ch ta

rget

ed d

istri

ct

NC

DD

S th

roug

h th

e N

GO

hos

ting

the

Ann

ual

Citi

zen

Foru

ms

- %

of R

NK

list

ener

s pro

vidi

ng a

hig

h sc

ore

on

usef

ulne

ss o

f inf

orm

atio

n di

ssem

inat

ed th

roug

h R

NK

pro

gram

s

To b

e ca

lcul

ated

in

pre

-impl

. pe

riod

5%

incr

ease

5%

in

crea

se

5%

incr

ease

5%

in

crea

se

Ann

ual;

reco

rded

in

Ann

ual R

epor

t A

nnua

l sta

ndar

dize

d A

udie

nce

Res

earc

h Su

rvey

(nat

iona

l)

RN

K th

roug

h co

ntra

cted

co

nsul

tant

s/N

GO

/re

sear

ch

agen

cy/fi

rm

- Ave

rage

% o

f rel

evan

t sta

keho

lder

s rat

ing

rele

vant

NSA

aw

aren

ess a

nd d

iscl

osur

e ca

mpa

igns

as r

elev

ant f

or th

eir c

onte

xt

To b

e ca

lcul

ated

in

YR

1

- 5%

in

crea

se

5%

incr

ease

5%

in

crea

se

Ann

ual;

reco

rded

in

Ann

ual R

epor

t A

nnua

l NSA

pro

gres

s re

ports

with

met

hodo

logy

gu

idan

ce fr

om T

AF

M&

E un

it. C

ompi

led

by T

AF

with

pos

sibi

lity

of

wei

ghtin

g.

NSA

s sup

porte

d th

roug

h D

M

- % o

f sta

keho

lder

s (w

ithin

and

bey

ond

the

proj

ect)

who

indi

cate

gre

ater

cla

rity,

un

ders

tand

ing,

and

abi

lity

to a

pply

diff

eren

t D

FGG

prin

cipl

es a

nd a

ppro

ache

s sh

ared

thro

ugh

PCO

lear

ning

act

iviti

es

0 40

%

50%

60

%

70%

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

Ann

ual i

nfor

mal

surv

ey o

f pr

ojec

t sta

keho

lder

s fro

m

SIs a

nd N

SAs u

sing

sim

ple s

corin

g/ra

ting

ques

tionn

aire

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

2. M

edia

ting

DFG

G in

pri

ority

ref

orm

are

as.

12

Thi

s ref

ers t

o w

hat t

he ta

rget

aud

ienc

e do

es (c

hang

es it

s beh

avio

r) w

ith th

e in

form

atio

n be

ing

diss

emin

ated

. The

impa

ct e

valu

atio

n m

etho

dolo

gy n

ote

bein

g pr

epar

ed w

ill o

utlin

e ho

w th

is in

form

atio

n is

to b

e ca

ptur

ed.

13 T

his w

ill o

nly

be d

one

for t

he tw

o di

stric

ts w

here

OW

SO a

nd D

O o

ffic

es e

xist

in th

e pr

e-im

plem

enta

tion

perio

d.

65

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

Com

posi

te: N

umbe

r of d

ispu

tes a

nd in

stan

ces o

f fe

edba

ck id

entif

ied

and

med

iate

d th

roug

h re

leva

nt D

FGG

pro

gram

s and

inst

itutio

ns

supp

orte

d by

the

proj

ect.

To b

e ca

lcul

ated

af

ter s

ub-

indi

cato

r ba

selin

es

com

plet

e

TBD

TB

D

TBD

TB

D

Ann

ual;

reco

rded

in

Ann

ual R

epor

t al

ong

with

sub-

indi

cato

rs

Agg

rega

ted

from

sub-

indi

cato

rs u

sing

appr

opria

te w

eigh

ting

sche

me

to b

e de

cide

d af

ter

base

lines

are

com

plet

e.14

PCO

in M

OI

Sub-

indi

cato

rs:

- n

umbe

r of

labo

r dis

pute

cas

es h

andl

ed b

y th

e A

C

148

5%

incr

ease

10

%

incr

ease

10

%

incr

ease

10

%

incr

ease

Q

uarte

rly

colle

ctio

n an

d re

porti

ng

ACF

cas

e lo

g an

d da

taba

se

AC

F

- n

umbe

r of l

and

disp

utes

and

com

plai

nts

rece

ived

and

han

dled

by

MO

NA

SRI

To b

e ca

lcul

ated

in

Yr 1

15

- 10

%

incr

ease

10

%

incr

ease

10

%

incr

ease

Q

uarte

rly

colle

ctio

n an

d re

porti

ng

Com

plai

nts d

atab

ase

in

enha

nced

syst

em

MO

NA

SRI

- n

umbe

r of l

ocal

dis

pute

s or c

ompl

aint

s re

ceiv

ed a

nd m

edia

ted

by D

Os

acro

ss a

ll ta

rget

di

stric

ts

2 ov

er 2

di

stric

ts

10

over

9

dist

ricts

30

ove

r 17

dis

trict

s 45

ove

r 24

dist

ricts

90

ove

r 24

dist

ricts

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

DO

reco

rds a

nd

inde

pend

ent a

udit

by C

SO

NC

DD

S th

roug

h co

ntra

cted

co

nsul

tant

s/N

GO

/re

sear

ch

agen

cy/fi

rm

- n

umbe

r of r

eque

sts,

com

plai

nts,

and

inst

ance

s of

feed

back

rece

ived

on

the

Talk

Bac

k Pr

ogra

m

in R

NK

To b

e ca

lcul

ated

fo

r 200

816

10%

in

crea

se

10%

in

crea

se

10%

in

crea

se

10%

in

crea

se

Qua

rterly

co

llect

ion

and

repo

rting

RN

K re

cord

s for

eac

h TB

P R

NK

- Num

ber o

f dis

pute

s and

inst

ance

s of f

eedb

ack

iden

tifie

d an

d m

edia

ted

by re

leva

nt N

SAs

supp

orte

d th

roug

h th

e D

M.

To b

e ca

lcul

ated

in

YR

1

- TB

D

10%

in

crea

se

10%

in

crea

se

Ann

ual;

reco

rded

in

Ann

ual R

epor

t A

nnua

l NSA

pro

gres

s re

ports

with

met

hodo

logy

gu

idan

ce fr

om T

AF

M&

E un

it. C

ompi

led

by T

AF

with

pos

sibi

lity

of

wei

ghtin

g.

TAF

and

NSA

gr

ant r

ecip

ient

s

Com

posi

te: P

erce

ntag

e of

thes

e di

sput

es o

r in

stanc

es o

f fee

dbac

k th

at a

re a

dequ

atel

y re

solv

ed o

r add

ress

ed

To b

e ca

lcul

ated

in

YR

1

- TB

D

TBD

TB

D

Ann

ual;

reco

rded

in

Ann

ual R

epor

t A

ggre

gate

d fro

m su

b-in

dica

tors

usin

g ap

prop

riate

wei

ghtin

g sc

hem

e to

be

deci

ded

afte

r ba

selin

es a

re c

ompl

ete

PCO

in M

OI

14

For

num

ber o

f dis

pute

s rec

eive

d by

the

DO

, the

agg

rega

tion

will

like

ly re

quire

the

PCO

to d

ivid

e th

is b

y nu

mbe

r of D

O o

ffic

es so

that

the

scal

e di

ffer

ence

s are

no

rmal

ized

. 15

Eff

orts

to e

nhan

ce th

e co

mpl

aint

s han

dlin

g fu

nctio

n of

MO

NA

SRI w

ill o

nly

star

t fro

m Y

r 2 a

fter a

stud

y to

info

rm th

ese

effo

rts is

und

erta

ken

in Y

r 1.

16 R

NK

doe

s not

cur

rent

ly c

ompi

le th

is d

ata.

66

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

Sub-

indi

cato

rs:

- % o

f la

bor d

ispu

te c

ases

succ

essf

ully

reso

lved

th

roug

h A

C p

roce

ss17

68

% (T

BC

) fo

r G

arm

ents

an

d PN

H;

Base

line

for o

ther

s TB

C

Act

ual

Val

ue18

A

ctua

l V

alue

A

ctua

l V

alue

A

ctua

l V

alue

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

ACF

cas

e lo

g an

d da

taba

se

AC

F

- %

of d

ispu

tes a

nd c

ompl

aint

s res

olve

d di

rect

ly

by M

ON

ASR

I or b

y re

leva

nt M

inis

try to

whi

ch

they

wer

e for

war

ded

To b

e ca

lcul

ated

in

YR

1

- 3%

in

crea

se

3%

incr

ease

3%

in

crea

se

Ann

ual;

reco

rded

in

Ann

ual R

epor

t C

ompl

aint

s dat

abas

e in

en

hanc

ed sy

stem

M

ON

ASR

I

- %

of l

ocal

dis

pute

s or c

ompl

aint

s suc

cess

fully

re

solv

ed b

y D

Os a

cros

s all

targ

et d

istri

cts (

whe

re

poss

ible

/feas

ible

)

0%

Incr

ease

(ta

rget

20

%)

25%

in

crea

se

(targ

et

25%

)

20%

in

crea

se

(targ

et

30%

)

33%

in

crea

se

(tar

get

40%

)

As a

bove

D

O re

cord

s and

in

depe

nden

t aud

it by

loca

l CS

O

NC

DD

S th

roug

h co

ntra

cted

co

nsul

tant

s/N

GO

/re

sear

ch

agen

cy/fi

rm

- % o

f lis

tene

r sat

isfa

ctio

n w

ith v

erba

l rep

lies b

y R

NK

�s g

uest

s to

requ

ests

mad

e by

citi

zens

on

TB

P

To b

e ca

lcul

ated

in

the

base

line

study

3%

incr

ease

3%

incr

ease

3%

incr

ease

3%

incr

ease

Ann

ual;

reco

rded

in

Ann

ual R

epor

t In

stan

t sam

ple

surv

ey o

f ca

llers

on

TBP

who

rais

ed

thes

e de

man

ds o

n ai

r

RN

K

- % o

f dis

pute

s and

inst

ance

s of f

eedb

ack

iden

tifie

d an

d m

edia

ted

by re

leva

nt N

SAs

supp

orte

d th

roug

h th

e D

M th

at w

ere

satis

fact

orily

resp

onde

d to

To b

e ca

lcul

ated

in

YR

1

- 3%

in

crea

se

3%

incr

ease

3%

in

crea

se

As a

bove

N

SA re

cord

ing

and

repo

rting

to T

AF;

C

ompi

led

by T

AF

with

po

ssib

ility

of w

eigh

ting.

TAF

and

NSA

gr

ant r

ecip

ient

s

3.

Res

pond

ing

to D

FGG

in p

rior

ity r

efor

m

area

s.

17

Thi

s sub

-indi

cato

r will

be

disa

ggre

gate

d by

sect

or a

nd re

gion

, sin

ce a

t pre

sent

alm

ost 9

5% o

f AC

cas

es c

ome

from

Gar

men

ts fi

rms i

n Ph

nom

Pen

h an

d th

e lik

ely

succ

ess r

ate

will

be

low

er fo

r the

new

sect

ors t

hat t

he A

C w

ould

han

dle

afte

r its

exp

ansi

on.

18 A

s the

�suc

cess

ful�

reso

lutio

n of

AC

cas

es li

es b

eyon

d th

e di

rect

acc

ount

abili

ty o

f the

AC

or A

CF,

no

targ

et v

alue

s hav

e be

en se

t for

this

sub-

indi

cato

r as i

t wou

ld

not c

orre

ctly

ass

ess A

C�s

�per

form

ance

� des

pite

bei

ng a

n im

porta

nt re

sult

indi

cato

r for

the

proj

ect.

Ther

efor

e, o

nly

actu

al v

alue

s wou

ld b

e tra

cked

.

67

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

Com

posi

te: N

umbe

r of r

espo

nses

by

gove

rnm

ent

to d

eman

ds tr

igge

red

thro

ugh

rele

vant

DFG

G

prog

ram

s and

inst

itutio

ns su

ppor

ted

by th

e pr

ojec

t

To b

e ca

lcul

ated

af

ter

base

lines

av

aila

ble

TBD

TB

D

TBD

TB

D

Ann

ual;

reco

rded

in

Ann

ual R

epor

t al

ong

with

sub-

indi

cato

rs

Agg

rega

ted

from

sub-

indi

cato

rs u

sing

appr

opria

te w

eigh

ting

sche

me

to b

e de

cide

d af

ter

base

lines

are

com

plet

e.19

PCO

in M

OI

Sub-

indi

cato

rs:

- Num

ber o

f citi

zen

serv

ice

deliv

ery

trans

actio

ns

com

plet

ed in

OW

SOs a

cros

s tar

gete

d di

stric

ts

6000

tra

nsac

tions

ov

er 2

di

stric

ts20

60%

in

crea

se

(targ

et

9,60

0 ov

er 9

di

st.)21

50%

in

crea

se

(targ

et

14,4

00

over

17

dist

.)

35%

in

crea

se

(targ

et

19,4

40

acro

ss

24 d

ist.)

10%

in

crea

se

(targ

et

21,3

85

over

24

dist

.)

Ann

ual

com

pila

tion

from

O

WSO

repo

rts

OW

SO re

cord

s; ag

greg

ated

by

DST

N

CD

DS

(DST

)

- Num

ber o

f gov

ernm

ent o

r pol

icy

resp

onse

s tri

gger

ed v

ia le

arni

ng a

ctiv

ities

(Ann

ual G

ood

Gov

erna

nce

Foru

m, s

tudi

es, e

tc.)

cond

ucte

d by

th

e PC

O

To b

e ca

lcul

ated

in

YR

1

Act

ual

Val

ue

Act

ual

Val

ue

Act

ual

Val

ue

Act

ual

Val

ue

Ann

ual;

reco

rded

in

Ann

ual R

epor

t Fo

llow

-up

of

inve

stiga

tion

of

reco

mm

enda

tions

/act

ion

plan

s dev

elop

ed a

s par

t of

the

Ann

ual G

ood

Gov

erna

nce

Foru

ms

cond

ucte

d by

PC

O

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

Com

posi

te:

Perc

enta

ge o

f rel

evan

t sta

keho

lder

s sa

tisfie

d w

ith th

ese

resp

onse

s To

be

calc

ulat

ed

afte

r ba

selin

es

avai

labl

e

TBD

TB

D

TBD

TB

D

Com

pile

d an

nual

ly; p

art o

f an

nual

repo

rt

Agg

rega

ted

from

sub-

indi

cato

rs u

sing

appr

opria

te w

eigh

ting

sche

me

to b

e de

cide

d af

ter

base

lines

are

com

plet

e.

PCO

in M

OI

19

Wei

ghtin

g do

wn

of th

e O

WSO

tran

sact

ions

wou

ld b

e re

quire

d he

re to

nor

mal

ize

the

scal

e di

ffer

ence

s. 20

Thi

s rep

rese

nt th

e ro

unde

d of

f val

ue o

f tot

al tr

ansa

ctio

ns in

Sie

m R

eap

(467

3) a

nd B

atta

mba

ng (1

235)

OW

SOs

in 2

007.

21

The

targ

et v

alue

s are

roun

ded

off f

igur

es d

eriv

ed fr

om a

n as

sum

ptio

n of

500

tran

sact

ions

/OW

SO fo

r new

ly c

reat

ed O

WSO

off

ices

, and

a 1

0% in

crea

se in

num

ber

of tr

ansa

ctio

ns in

exi

stin

g O

WSO

s per

yea

r. Th

e lo

wer

targ

et fo

r new

OW

SOs i

s due

to (a

) fac

t tha

t the

exi

stin

g O

WSO

s are

in re

lativ

ely

big

citie

s by

Cam

bodi

an

stan

dard

s, a

nd (b

) the

Sie

m R

eap

and

Bat

tam

bang

OW

SOs h

ave

been

ope

ratio

nal f

or a

bout

3 y

ears

and

ther

efor

e m

ost c

itize

ns a

re w

ell a

war

e of

thei

r exi

sten

ce.

68

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

Sub-

indi

cato

rs:

- % o

f clie

nts s

atis

fied

with

qua

lity

of se

rvic

es

prov

ided

at O

WSO

s acr

oss t

arge

ted

dist

ricts

To

be

calc

ulat

ed

in Y

R 122

- 5%

in

crea

se

5%

incr

ease

5%

in

crea

se

Ann

ual;

reco

rded

in

Ann

ual R

epor

t A

nnua

l OW

SO e

xit

surv

eys a

nd b

asel

ine

and

end

term

eva

luat

ion

stud

ies (

in fo

rm o

f citi

zen

repo

rt ca

rds)

NC

DD

S th

roug

h co

ntra

cted

co

nsul

tant

s/N

GO

/re

sear

ch

agen

cy/fi

rm

- % o

f rel

evan

t sta

keho

lder

s sat

isfie

d by

go

vern

men

t or p

olic

y re

spon

ses t

rigge

red

via

lear

ning

act

iviti

es c

ondu

cted

by

the

PCO

To b

e ca

lcul

ated

in

YR

1

- 3%

in

crea

se

3%

incr

ease

3%

in

crea

se

Ann

ual;

reco

rded

in

Ann

ual R

epor

t Fo

llow

-up

of

reco

mm

enda

tions

/act

ion

plan

s de

velo

ped

as p

art o

f th

e A

nnua

l Goo

d G

over

nanc

e Fo

rum

s co

nduc

ted

by P

CO

PCO

in M

OI

thro

ugh

co

ntra

cted

co

nsul

tant

s/N

GO

/re

sear

ch

agen

cy/fi

rm

4.

Mon

itori

ng to

info

rm D

FGG

in p

rior

ity

refo

rm a

reas

:

Com

posi

te: N

umbe

r of p

ublic

sect

or in

stitu

tions

or

act

iviti

es w

hose

per

form

ance

is m

onito

red

inde

pend

ently

thro

ugh

DFG

G p

rogr

ams

supp

orte

d by

the

proj

ect.

1 5

9 13

17

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

Sum

of s

ub-in

dica

tors

PC

O in

MO

I

Sub-

indi

cato

rs:

- Num

ber o

f sta

te in

stitu

tions

supp

orte

d by

the

proj

ect (

from

Com

pone

nt 1

and

3) t

hat u

nder

take

in

depe

nden

t mon

itorin

g th

roug

h N

SAs23

1 5

5 5

5 A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

Thro

ugh

Ann

ual W

ork

Plan

s and

trac

king

/ ve

rific

atio

n o

f im

plem

enta

tion

prog

ress

of

SIs

and

PC

O

PCO

in M

OI

- Num

ber o

f pub

lic se

ctor

inst

itutio

ns m

onito

red

thro

ugh

NSA

initi

ativ

es su

ppor

ted

unde

r C

ompo

nent

2

To b

e ca

lcul

ated

in

YR

1

- 4

8 12

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

From

dat

abas

e of

gra

nt

reci

pien

ts. C

ompi

led

by

TAF

with

pos

sibi

lity

of

wei

ghtin

g.

TAF

22

The

pre

-im

plem

enta

tion

phas

e ba

selin

e w

ill, h

owev

er, m

easu

re th

e sa

tisfa

ctio

n ra

te a

mon

g ci

tizen

s in

dist

ricts

with

out O

WSO

s for

serv

ices

that

will

be

prov

ided

by

the

OW

SO o

nce

it is

set u

p.

23 A

s des

crib

ed in

par

agra

ph 5

abo

ve, s

ince

eac

h of

the

SIs h

as b

een

enco

urag

ed to

intro

duce

inde

pend

ent m

onito

ring

by C

SOs f

or th

eir p

rogr

ams,

this

indi

cato

rs

will

take

a v

alue

of 5

from

yea

r 1 a

nd st

ay a

t tha

t dur

ing

the

cour

se o

f the

pro

ject

.

69

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

Com

posi

te: P

erce

ntag

e of

thes

e in

stitu

tions

or

activ

ities

that

use

d an

d ac

ted

upon

info

rmat

ion

for a

djus

ting

thei

r per

form

ance

and

act

ions

TBD

TB

D

TBD

TB

D

TBD

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

Wei

ghte

d av

erag

e of

sub-

indi

cato

rs

PCO

in M

OI24

Sub

-indi

cato

rs:

- Per

cent

age

of st

ate

inst

itutio

ns su

ppor

ted

by th

e pr

ojec

t (fr

om C

ompo

nent

1 a

nd 3

) tha

t use

in

depe

nden

t mon

itorin

g th

roug

h N

SAs t

o ta

ke

man

agem

ent a

nd/o

r cor

rect

ive

actio

ns25

20%

10

0%

100%

10

0%

100%

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

Thro

ugh

Ann

ual W

ork

Plan

s and

trac

king

/ ve

rific

atio

n o

f im

plem

enta

tion

prog

ress

of

SIs

and

PC

O

PCO

in M

OI

- Per

cent

age

of p

ublic

sect

or in

stitu

tions

and

ac

tiviti

es th

at u

se th

e in

depe

nden

t NSA

m

onito

ring

data

to ta

ke s

trate

gic

man

agem

ent

and/

or c

orre

ctiv

e ac

tions

To b

e ca

lcul

ated

in

YR

1

- 15

%

25%

33

%

Ann

ual;

reco

rded

in

Ann

ual R

epor

t Fr

om d

atab

ase

of g

rant

re

cipi

ents

, who

will

ass

ess

whe

ther

cor

rect

ive

actio

ns

wer

e ta

ken.

26 C

ompi

led

by

TAF

with

pos

sibi

lity

of

wei

ghtin

g.

TAF

Inte

rmed

iate

Out

com

e In

dica

tors

1. S

tren

gthe

ned

Cap

acity

and

Eff

ectiv

enes

s

Com

posi

te: S

elf a

sses

smen

t and

exp

ert

asse

ssm

ent o

f inc

reas

ed c

apac

ity to

und

erta

ke

DFG

G p

rogr

ams b

y pa

rtici

patin

g SI

s and

NSA

s (%

repo

rting

hig

h or

incr

ease

d ca

paci

ty27

)

To b

e ca

lcul

ated

in

pre

-impl

. pe

riod

- TB

D

- TB

D

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Agg

rega

ted

from

sub-

indi

cato

rs u

sing

appr

opria

te w

eigh

ting

sche

me

to b

e de

cide

d af

ter

PCO

in M

OI

24

Ver

ifica

tion

of th

ese

resp

onse

act

ions

will

be

unde

rtake

n by

the

PCO

as p

art o

f the

Ann

ual P

rogr

ess R

evie

ws.

25 A

gain

, giv

en th

at th

e de

sign

of t

he S

I sub

com

pone

nts a

nd c

ompo

nent

3 e

xplic

itly

invo

lves

use

of t

his i

ndep

ende

nt m

onito

ring

for s

trate

gic

deci

sion

mak

ing,

this

in

dica

tor w

ill ta

ke a

val

ue o

f 100

% fr

om y

ear 1

and

stay

at t

hat d

urin

g th

e co

urse

of t

he p

roje

ct.

26 A

dditi

onal

ly, s

peci

fic c

ase

stud

ies w

ill b

e un

derta

ken

as st

and-

alon

e ex

erci

ses i

n ca

ses w

here

the

finan

cial

impa

ct o

f the

se N

SA m

onito

ring

initi

ativ

es c

an b

e as

sess

ed.

27 T

he in

tern

al a

sses

smen

ts a

re m

eant

to c

aptu

re �i

ncre

ased

� cap

acity

(a �f

low

� or �

chan

ge� v

aria

ble)

, whi

le th

e ex

pert/

exte

rnal

ass

essm

ents

wou

ld c

aptu

re �h

igh�

ca

paci

ty (a

�sto

ck� o

r �cu

rren

t val

ue� v

aria

ble)

. The

reas

on fo

r thi

s is t

o en

sure

that

one

get

s a m

eani

ngfu

l mea

sure

of t

he c

hang

e in

cap

acity

, whi

ch fo

r the

inte

rnal

(s

taff

) ass

essm

ent i

s bet

ter c

aptu

red

by lo

okin

g at

a fl

ow v

aria

ble

as it

is li

kely

that

staf

f may

sim

ply

reco

rd a

ver

y hi

gh se

lf-a

sses

smen

t of c

apac

ity e

ach

year

, but

w

hen

aske

d to

com

pare

ove

r tim

e th

e re

spon

se c

ould

be

mor

e ac

cura

te. F

or e

xter

nal s

take

hold

ers o

n th

e ot

her h

and

one

can

capt

ure

this

by

look

ing

at th

e st

ock

varia

ble

itsel

f.

70

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

ba

selin

es a

re c

ompl

ete.

Sub-

indi

cato

rs:

- % o

f AC

, SA

C, a

nd A

CF

staf

f tha

t rep

ort a

n in

crea

sed

unde

rsta

ndin

g an

d in

stitu

tiona

l ca

paci

ty to

perf

orm

thei

r res

pect

ive

role

s in

the

labo

r arb

itrat

ion

and

disp

ute

reso

lutio

n pr

oces

ses

To b

e ca

lcul

ated

in

pre

-impl

. pe

riod

- 70

%

- 80

%

Bi-a

nnua

l; re

cord

ed in

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f AC

, A

CF,

and

SA

C st

aff a

nd

ratin

gs fr

om K

IIs a

nd

FGD

s

PCO

in M

OI

thro

ugh

co

ntra

cted

co

nsul

tant

s/N

GO

/re

sear

ch

agen

cy/fi

rm28

- %

of M

ON

ASR

I sta

ff th

at re

port

an in

crea

sed

unde

rsta

ndin

g an

d in

stitu

tiona

l cap

acity

to

unde

rtake

law

diss

emin

atio

n an

d co

mpl

aint

s ha

ndlin

g fu

nctio

ns

To b

e ca

lcul

ated

in

pre

-impl

. Pe

riod

- 70

%

80

%

Bi-a

nnua

l; re

cord

ed in

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f M

ON

ASR

I sta

ff an

d ra

tings

from

KII

s and

FG

Ds

PCO

in M

OI

thro

ugh

co

ntra

cted

co

nsul

tant

s/N

GO

/re

sear

ch

agen

cy/fi

rm

- % o

f DST

, OW

SO a

nd D

O o

ffic

e st

aff t

hat

repo

rt an

incr

ease

d un

ders

tand

ing

and

inst

itutio

nal c

apac

ity to

und

erta

ke th

eir f

unct

ions

To b

e ca

lcul

ated

in

pre

-impl

. pe

riod

- 60

% fo

r ne

w

dist

ricts

- 80

%

Bi-a

nnua

l; re

cord

ed in

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f DST

, O

WSO

, and

DO

offi

ce

staf

f and

ratin

gs fr

om K

IIs

and

FGD

s

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

%

of s

taff

of R

NK

that

repo

rt an

incr

ease

d un

ders

tand

ing

and

inst

itutio

nal c

apac

ity to

un

derta

ke D

FGG

pro

gram

s (T

BP,

feat

ures

, and

ne

wsr

oom

)29

To b

e ca

lcul

ated

pr

e-im

pl.

perio

d

- 70

%

- 80

%

Bi-a

nnua

l; re

cord

ed in

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f RN

K

staf

f and

ratin

gs fr

om K

IIs

and

FGD

s

PCO

in M

OI

thro

ugh

co

ntra

cted

co

nsul

tant

s/N

GO

/re

sear

ch

agen

cy/fi

rm

- % o

f uni

on a

nd e

mpl

oyer

gro

up re

pres

enta

tives

th

at re

port

a hi

gh c

onfid

ence

in in

stitu

tiona

l ca

paci

ty o

f the

AC

to u

nder

take

labo

r dis

pute

re

solu

tion

To b

e ca

lcul

ated

pr

e-im

pl.

perio

d

- 10

%

incr

ease

-

10%

in

crea

se

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

FGD

s and

KII

s of u

nion

an

d em

ploy

er g

roup

re

pres

enta

tives

and

le

ader

s to

be

guid

ed b

y A

CF

reco

mm

enda

tions

PCO

in M

OI

thro

ugh

co

ntra

cted

co

nsul

tant

s/N

GO

/re

sear

ch

agen

cy/fi

rm

28

The

firm

will

wor

k in

con

sulta

tion

with

the

AC

F, w

ho w

ill a

dvic

e an

d ag

ree

on th

e ev

alua

tion

tool

s, m

etho

dolo

gy, q

uest

ionn

aire

s, e

tc.

29 T

his i

nclu

des:

staf

f per

cept

ion

ratin

gs/s

core

s on

RN

K m

anag

emen

t dec

isio

ns, o

rgan

isat

iona

l cul

ture

and

cha

nge

man

agem

ent.

71

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

- % o

f tar

gete

d ex

perts

that

repo

rt a

high

in

stitu

tiona

l cap

acity

of t

he M

ON

ASR

I to

unde

rtake

LD

and

CH

func

tions

To b

e ca

lcul

ated

pr

e-im

pl.

perio

d

- 40

%

- 60

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f not

ed

law

dis

sem

inat

ion,

land

an

d co

mpl

aint

s han

dlin

g ex

perts

, don

ors (

e.g.,

GTZ

, UN

DP)

, NG

Os

(e.g

., PA

CT,

CLE

C, e

tc.)

and

com

plem

entar

y ag

enci

es (e

.g.,

MLU

PC,

MO

J) a

nd ra

tings

from

K

IIs &

FG

Ds

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

- % o

f tar

gete

d ex

perts

that

repo

rt a

high

in

stitu

tiona

l cap

acity

of t

he O

WSO

and

DO

of

fice

to u

nder

take

thei

r res

pect

ive

func

tions

To b

e ca

lcul

ated

pr

e-im

pl.

perio

d

- 40

%

- 60

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f D&

D

expe

rts, d

onor

s (e.g

., G

TZ, U

NC

DF,

DFI

D,

etc.

) and

NSA

s usi

ng K

IIs

and

FGD

s.

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

%

of t

arge

ted

med

ia, d

evel

opm

ent

and

gove

rnan

ce e

xper

ts th

at re

port

a hi

gh in

stitu

tiona

l ca

paci

ty in

RN

K to

und

erta

ke D

FGG

pro

gram

s

To b

e ca

lcul

ated

in

pre

-imp.

pe

riod

- 10

%

incr

ease

-

10%

in

crea

se

Bi-a

nnua

l; re

cord

ed in

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f not

ed

sect

or e

xper

ts, d

onor

s, an

d co

mpl

emen

tary

age

ncie

s an

d ra

tings

from

KII

s and

FG

Ds

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

(A

vera

ge) %

of N

SAs s

uppo

rted

from

C

ompo

nent

2 th

at re

port

a hi

gh (b

ased

on

ratin

g sc

ale)

ach

ieve

men

t of t

heir

capa

city

targ

ets f

or

unde

rtaki

ng th

eir s

peci

fic D

FGG

pro

gram

s and

ac

tiviti

es30

To b

e ca

lcul

ated

in

YR

1

- 50

%

55%

60

%

Ann

ual;

reco

rded

in

Ann

ual R

epor

t A

nnua

l NSA

self

asse

ssm

ent q

uest

ionn

aire

on

the

degr

ee to

whi

ch

they

hav

e ac

hiev

ed th

eir

inte

nded

cap

acity

goa

ls.

To b

e re

porte

d in

NSA

an

nual

pro

gres

s rep

orts

an

d co

mpi

led

by T

AF.

NSA

s sup

porte

d un

der C

ompo

nent

2

with

gui

danc

e fro

m T

AF.

Expe

rt as

sess

men

t of %

of N

SAs s

uppo

rted

from

C

ompo

nent

2 th

at h

ave

incr

ease

d aw

aren

ess a

nd

capa

city

to u

nder

take

DFG

G p

rogr

ams a

nd

activ

ities

To b

e ca

lcul

ated

in

YR

2

- 40

%

- 50

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Mid

-term

and

end

-term

FG

Ds a

nd K

IIs w

ith

sam

ple

of N

SA g

rant

ees

by in

depe

nden

t thi

nk ta

nk

to a

sses

s the

ir ca

paci

ty

TAF

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

30

Aga

in a

s the

supp

orte

d pr

ogra

ms a

nd a

ctiv

ities

of N

SAs a

re li

kely

to b

e qu

ite d

iffer

ent t

he c

apac

ity q

uest

ion

has t

o be

ask

ed re

lativ

e to

thei

r spe

cific

con

text

. The

av

erag

ing

will

be

a �s

impl

e av

erag

e�.

72

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

and

awar

enes

s. Th

ey w

ill

also

con

duct

self

asse

ssm

ent q

uest

ionn

aire

to

che

ck d

iver

genc

e w

ith

self

repo

rting

.

- % o

f PC

O st

aff t

hat r

epor

t an

incr

ease

d un

ders

tand

ing

and

inst

itutio

nal c

apac

ity to

un

derta

ke D

FGG

pro

gram

s an

d le

arni

ng

activ

ities

To b

e ca

lcul

ated

in

YR

2

- 70

%

- 80

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f PC

O

staf

f and

ratin

gs fr

om K

IIs

and

FGD

s

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

- %

of t

arge

ted

expe

rts th

at re

port

a hi

gh

inst

itutio

nal c

apac

ity in

PC

O to

und

erta

ke D

FGG

pr

ogra

ms

and

lear

ning

act

iviti

es

To b

e ca

lcul

ated

in

YR

2

- 40

%

- 60

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f not

ed

sect

or e

xper

ts, d

onor

s, an

d co

mpl

emen

tary

age

ncie

s an

d ra

tings

from

KII

s and

FG

Ds

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

C

ompo

site

: Sta

keho

lder

feed

back

, sel

f as

sess

men

t, an

d ex

pert

asse

ssm

ent o

f ef

fect

iven

ess o

f SI a

nd N

SA p

rogr

ams s

uppo

rted

by th

e pr

ojec

t (%

ratin

g hi

gh o

r inc

reas

ed

effe

ctiv

enes

s)31

To b

e ca

lcul

ated

in

YR

2

- TB

D

- TB

D

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Agg

rega

ted

from

sub-

indi

cato

rs u

sing

appr

opria

te w

eigh

ting

sche

me

to b

e de

cide

d af

ter

base

lines

are

com

plet

e.

PCO

in M

OI

Sub-

indi

cato

rs:

% o

f AC

, SA

C, a

nd A

CF

staf

f tha

t rep

ort a

n in

crea

sed

effe

ctiv

enes

s of

the A

C p

roce

ss

To b

e ca

lcul

ated

in

pre

-impl

. Pe

riod

- 70

%

- 80

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f AC

, A

CF,

and

SA

C st

aff a

nd

ratin

gs fr

om K

IIs a

nd

FGD

s

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

%

of u

nion

and

em

ploy

er g

roup

repr

esen

tativ

es

and

othe

r sta

keho

lder

s tha

t rep

ort a

hig

h co

nfid

ence

in th

e in

depe

nden

ce, c

redi

bilit

y an

d ef

fect

iven

ess o

f the

AC

To b

e ca

lcul

ated

in

pre

-impl

. Pe

riod

- 40

%

- 60

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

FGD

s and

KII

s of u

nion

an

d em

ploy

er g

roup

re

pres

enta

tives

, lea

ders

an

d po

ssib

ly o

ther

st

akeh

olde

rs

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

31

Her

e ag

ain,

the

inte

rnal

ass

essm

ents

(exc

ept f

or C

ompo

nent

2) w

ill lo

ok a

t the

�inc

reas

ed� e

ffec

tiven

ess,

whi

le th

e ex

tern

al a

sses

smen

ts (e

xper

t and

stak

ehol

der)

lo

ok a

t a �h

igh�

eff

ectiv

enes

s. T

his i

s do

ne to

cap

ture

act

ual c

hang

e in

eff

ectiv

enes

s mor

e m

eani

ngfu

lly.

73

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

Expe

rt ra

ting

(%) o

f qua

lity

of a

war

ds g

iven

by

the

AC

To

be

calc

ulat

ed

in p

re-im

pl.

perio

d

- 60

%

- 75

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Bi-a

nnua

l aud

it by

exp

erts

fo

r a sa

mpl

e of

AC

aw

ards

In

depe

nden

t ex

pert

s co

ntra

cted

vi

a A

CF

% o

f MO

NA

SRI s

taff

that

repo

rt an

incr

ease

d ef

fect

iven

ess o

f the

ir LD

and

CH

func

tions

To

be

calc

ulat

ed

in p

re-im

pl.

Perio

d

- 70

%

- 80

%

Bi-a

nnua

l; re

cord

ed in

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f M

ON

ASR

I sta

ff an

d ra

tings

from

KII

s and

FG

Ds

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

%

of t

arge

ted

expe

rts in

sect

ors t

hat r

epor

t a h

igh

effe

ctiv

enes

s of t

he D

FGG

pro

gram

s und

erta

ken

by M

ON

ASR

I

To b

e ca

lcul

ated

in

pre

-impl

. pe

riod

- 40

%

- 60

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f not

ed

law

dis

sem

inat

ion,

land

an

d co

mpl

aint

s han

dlin

g ex

perts

, don

ors (

e.g.,

GTZ

, UN

DP)

, NG

Os

(e.g

., PA

CT,

CLE

C, e

tc.)

and

com

plem

enta

ry

agen

cies

(e.g

., M

LUPC

, M

OJ)

and

ratin

gs fr

om

KII

s & F

GD

s

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

% o

f citi

zens

in ta

rget

ed d

istri

cts a

nd o

ther

ex

perts

giv

ing

a hi

gh ra

ting

on th

e qu

ality

of

MO

NA

SRI’s

law

dis

sem

inat

ion

and

com

plai

nts

hand

ling

func

tions

To b

e ca

lcul

ated

in

Yr 1

- 40

%

50%

60

%

Ann

ual;

reco

rded

in

Ann

ual R

epor

t H

ouse

hold

(HH

) sur

vey

an

d FG

Ds w

ith se

para

te

grou

ps o

f tar

gete

d ci

tizen

s in

sam

ple

of 8

dis

trict

s per

ye

ar

MO

NA

SRI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

%

of O

WSO

and

DO

off

ice

staf

f tha

t rep

ort a

n in

crea

sed

effe

ctiv

enes

s of t

heir

offic

es

To b

e ca

lcul

ated

in

pre

-impl

. Pe

riod

- 60

% fo

r ne

w

dist

ricts

- 80

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f DST

, O

WSO

, and

DO

offi

ce

staf

f and

ratin

gs fr

om K

IIs

and

FGD

s

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

%

of t

arge

ted

expe

rts re

porti

ng a

hig

h ef

fect

iven

ess o

f the

OW

SO a

nd D

O o

ffice

s To

be

calc

ulat

ed

in Y

r2

- 40

%

- 60

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f D&

D

expe

rts, d

onor

s (e.g

., G

TZ, U

NC

DF,

DFI

D,

etc.

) and

NSA

s usi

ng K

IIs

and

FGD

s.

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

74

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

- % o

f citi

zens

in ta

rget

ed d

istri

cts g

ivin

g hi

gh

satis

fact

ion

ratin

g on

qua

lity

and

perf

orm

ance

of

the

OW

SO a

nd D

O o

ffice

s

To b

e ca

lcul

ated

in

Yr 1

- 5%

in

crea

se

for

exist

ing

offic

es

5%

incr

ease

fo

r ex

istin

g of

fices

5%

incr

ease

A

nnua

l; re

cord

ed

in a

pplic

able

A

nnua

l Rep

ort

Ann

ual O

WSO

exi

t su

rvey

s and

bas

elin

e an

d en

d te

rm e

valu

atio

n st

udie

s (in

form

of c

itize

n re

port

card

s)

NC

DD

S th

roug

h co

ntra

cted

co

nsul

tant

s/N

GO

/re

sear

ch

agen

cy/fi

rm

% o

f sta

ff o

f RN

K th

at re

port

an in

crea

sed

effe

ctiv

enes

s of t

heir

DFG

G p

rogr

ams

(TB

P,

feat

ures

, and

new

sroo

m)

To b

e ca

lcul

ated

in

pre

-impl

. pe

riod

- 70

%

- 80

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f RN

K

staf

f and

ratin

gs fr

om K

IIs

and

FGD

s

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

%

of t

arge

ted

med

ia, d

evel

opm

ent a

nd

gove

rnan

ce e

xper

ts th

at re

port

a hi

gh

effe

ctiv

enes

s of t

he D

FGG

pro

gram

s RN

K

unde

rtake

s

To b

e ca

lcul

ated

in

pre

-impl

. pe

riod

- 10

%

incr

ease

-

10%

in

crea

se

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f not

ed

med

ia a

nd ra

dio

expe

rts,

dono

rs, a

nd

com

plem

enta

ry a

genc

ies

thro

ugh

ratin

gs fr

om K

IIs

and

FGD

s

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

% o

f RN

K li

sten

ers a

nd o

ther

stak

ehol

ders

32

prov

idin

g a

high

scor

e on

bal

ance

, neu

tralit

y,

cred

ibili

ty a

nd o

vera

ll qu

ality

of R

NK

pr

ogra

ms33

To b

e ca

lcul

ated

in

pre

-im

pl.

perio

d

10%

in

crea

se

10%

in

crea

se

10%

in

crea

se

10%

in

crea

se

Ann

ually

co

mpi

led;

in

Ann

ual R

epor

t

Targ

eted

FG

Ds a

nd K

IIs

with

sepa

rate

list

ener

gr

oups

usi

ng sc

orin

g qu

estio

nnai

re a

nd sa

mpl

e su

rvey

of n

oted

sect

or

expe

rts

RN

K th

roug

h co

ntra

cted

co

nsul

tant

s/N

GO

/re

sear

ch

agen

cy/fi

rm

(Ave

rage

) % o

f NSA

s sup

porte

d fr

om

Com

pone

nt 2

that

repo

rt an

a h

igh

(bas

ed o

n ra

ting

scal

e) a

chie

vem

ent o

f the

ir gr

ant

obje

ctiv

es

To b

e ca

lcul

ated

in

Yr 1

- 50

%

55%

60

%

Ann

ual;

reco

rded

in

Ann

ual R

epor

t A

nnua

l NSA

self

asse

ssm

ent q

uest

ionn

aire

w

ith q

uest

ion

on p

rogr

ess

tow

ards

ach

ievi

ng g

rant

ob

ject

ives

with

reas

ons.

To b

e re

porte

d in

NSA

an

nual

pro

gres

s rep

orts

an

d co

mpi

led

by T

AF

NSA

s sup

porte

d un

der C

ompo

nent

2

with

gui

danc

e fro

m T

AF.

32

Thi

s in

clud

es ex

tern

al ta

rget

ed m

edia

, dev

elop

men

t and

gov

erna

nce

expe

rts.

33 T

his i

ndic

ator

refe

rs so

lely

to p

rogr

ams s

uppo

rted

by th

e D

FGG

pro

ject

, i.e

., TB

P, n

ews a

nd fe

atur

e pr

ogra

ms.

75

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

Expe

rt as

sess

men

t of %

of N

SAs s

uppo

rted

from

C

ompo

nent

2 w

ho h

ave

a hi

gh (b

ased

on

ratin

g sc

ale)

ach

ieve

men

t of t

heir

gran

t obj

ectiv

es

To b

e ca

lcul

ated

in

Yr 2

- 40

%

- 50

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Mid

-term

and

end

-term

FG

Ds a

nd K

IIs w

ith

sam

ple

of N

SA g

rant

ees

by in

depe

nden

t thi

nk ta

nk

to a

sses

s the

ach

ieve

men

t of

thei

r gra

nt o

bjec

tives

. Th

ey w

ill a

lso

cond

uct

self

asse

ssm

ent

ques

tionn

aire

in N

SA to

ch

eck

dive

rgen

ce w

ith se

lf re

porti

ng a

nd w

here

re

leva

nt a

surv

ey o

f tar

get

cons

titue

ncie

s to

be

reac

hed

by th

e in

itiat

ive

for o

btai

ning

out

side

st

akeh

olde

r fee

dbac

k.

TAF

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

% o

f sta

ff o

f PC

O th

at re

port

an in

crea

sed

effe

ctiv

enes

s of t

heir

DFG

G p

rogr

ams

and

lear

ning

act

iviti

es

To b

e ca

lcul

ated

in

Yr2

- 60

%

- 75

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f PC

O

staf

f and

ratin

gs fr

om K

IIs

and

FGD

s

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

- %

of t

arge

ted

expe

rts th

at re

port

a hi

gh

effe

ctiv

enes

s in

PCO

to u

nder

take

DFG

G

prog

ram

s an

d le

arni

ng a

ctiv

ities

To b

e ca

lcul

ated

in

Yr 2

- 40

%

- 60

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Sam

ple

surv

ey o

f not

ed

sect

or e

xper

ts, d

onor

s, an

d co

mpl

emen

tary

age

ncie

s an

d ra

tings

from

KII

s and

FG

Ds

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

- %

of r

elev

ant s

take

hold

ers (

incl

udin

g PC

G,

Lear

ning

Tas

k Fo

rce,

SIs

, etc

.) gi

ving

a h

igh

ratin

g on

the

effe

ctiv

enes

s of t

he P

CO

�s le

arni

ng

and

coor

dina

tion

activ

ities

To b

e ca

lcul

ated

in

Yr 2

- 50

%

- 70

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Mid

-term

and

end

-term

ta

rget

ed su

rvey

, KII

s, an

d FG

Ds

of P

CG

, SI s

taff

, ou

tsid

e ex

perts

, and

oth

er

stak

ehol

ders

rele

vant

to

PCO

lear

ning

act

iviti

es

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

Com

posi

te: R

even

ues g

ener

ated

by

SIs a

s a

prop

ortio

n of

ope

ratin

g co

sts (

whe

re re

leva

nt fo

r fin

anci

al su

stai

nabi

lity)

.

To b

e ca

lcul

ated

in

Yr 1

- 23

%

avg.

30

%

avg.

33

% a

vg.

Ann

ual;

reco

rded

in

Ann

ual R

epor

t A

vera

ge o

f sub

-indi

cato

rs

PCO

in M

OI

Sub-

indi

cato

rs:

76

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

- Rev

enue

gen

erat

ed th

roug

h tri

-par

tite

cont

ribut

ions

by

AC

as %

of o

pera

ting

cost

s 0

2.5%

5%

10

%

15%

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

AC

F fin

anci

al re

cord

s A

CF

- Ave

rage

cos

t rec

over

y ra

tio (i

n %

) of O

WSO

s (i.

e., s

ervi

ce fe

e re

venu

e as

pro

porti

on o

f op

erat

ing

cost

s)

50%

50

%

60%

70

%

80%

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

OW

SO fi

nanc

ial r

ecor

ds;

com

pile

d by

DST

N

CD

DS

(DST

)

- Rev

enue

gen

erat

ed a

nd re

tain

ed34

by

RN

K a

s a

% o

f ope

ratin

g co

sts

To b

e ca

lcul

ated

in

Yr 1

- 5%

10

%

15%

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

RN

K fi

nanc

ial r

ecor

ds

RN

K

2.

Sup

port

ing

Stat

e &

Non

-sta

te p

artn

ersh

ips

Com

posi

te: N

umbe

r of �

partn

ersh

ips�35

bet

wee

n an

d am

ong S

Is a

nd N

SAs e

stab

lishe

d or

co

ntin

ued

unde

r the

pro

ject

.

TBC

TB

D

TBD

TB

D

TBD

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

Com

pile

d fr

om IA

pr

ogre

ss re

ports

afte

r as

sess

ing

valid

ity o

f �p

artn

ersh

ip� r

elat

ion.

PCO

in M

OI

Sub-

indi

cato

rs:

- Num

ber o

f �pa

rtner

ship

s� be

twee

n an

d am

ong

SIs a

nd N

SAs e

stab

lishe

d un

der t

he p

roje

ct th

at

invo

lve

sign

ifica

nt c

omm

erci

al re

latio

nshi

p (e

.g.,

cons

ultin

g co

ntra

ct).

0 A

ctua

l V

alue

A

ctua

l V

alue

A

ctua

l V

alue

A

ctua

l V

alue

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

Agg

rega

ted

(wei

ghte

d su

m) f

rom

IA p

rogr

ess

repo

rts a

fter a

sses

sing

va

lidity

of �

partn

ersh

ip�

rela

tion.

PCO

in M

OI

- Num

ber o

f �pa

rtner

ship

s� be

twee

n an

d am

ong

SIs a

nd N

SAs e

stab

lishe

d un

der t

he p

roje

ct

with

out s

igni

fican

t com

mer

cial

rela

tions

hip.

0 A

ctua

l V

alue

A

ctua

l V

alue

A

ctua

l V

alue

A

ctua

l V

alue

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

Com

pile

d fr

om IA

pr

ogre

ss re

ports

afte

r as

sess

ing

valid

ity o

f �p

artn

ersh

ip� r

elat

ion.

PCO

in M

OI

34

The

indi

cato

r rel

atin

g to

reve

nue

rete

ntio

n w

ill re

mai

n in

clud

ed p

rovi

ded

that

the

agre

emen

t reg

ardi

ng th

e re

venu

e re

tent

ion

is re

ache

d w

ith M

EF. I

f not

, the

n si

mpl

e re

venu

e ge

nera

tion

will

be

track

ed a

s a m

easu

re o

f �po

tent

ial�

finan

cial

sust

aina

bilit

y of

the

RN

K.

35 T

he p

roje

ct w

ill u

se th

e fo

llow

ing

defin

ition

for p

artn

ersh

ips -

"A

par

tner

ship

is a

col

labo

rativ

e re

latio

nshi

p be

twee

n en

titie

s to

wor

k to

war

d sh

ared

obj

ectiv

es

thro

ugh

a m

utua

lly a

gree

d di

visi

on o

f lab

or".

Stri

ctly

, by

this

def

initi

on p

ure

com

mer

cial

rela

tions

hips

shou

ld n

ot b

e re

gard

ed a

s par

tner

ship

s. R

ecog

nizi

ng,

how

ever

, tha

t in

the

spec

ific

cont

ext o

f the

pro

ject

and

giv

en th

e la

ck o

f suc

h re

latio

nshi

ps b

etw

een

SIs a

nd N

SAs i

n C

ambo

dia,

som

e di

rect

com

mer

cial

re

latio

nshi

ps (e

.g.,

the

hirin

g of

a le

gal a

war

enes

s NSA

by

MO

NA

SRI t

o as

sist

in it

s LD

func

tion)

that

refle

ct e

lem

ents

of �

partn

ersh

ip� w

ill b

e se

para

tely

trac

ked

as

wel

l. Th

e to

tal n

umbe

r of p

artn

ersh

ips w

ill b

e th

e su

m o

f the

se tw

o fo

rms o

f rel

atio

nshi

ps. T

he P

CO

will

mak

e a

case

-by-

case

det

erm

inat

ion

of w

heth

er a

par

ticul

ar

rela

tions

hip

shou

ld b

e ca

tego

rized

as a

par

tner

ship

or n

ot.

77

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

Com

posi

te: S

elf a

sses

smen

t, an

d ex

pert

asse

ssm

ent o

f eff

ectiv

enes

s of t

hese

par

tner

ship

s (%

not

ing

high

)

To b

e ca

lcul

ated

in

Yr 2

- 50

%

- 70

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Agg

rega

ted

from

sub-

indi

cato

rs u

sing

appr

opria

te w

eigh

ting

sche

me

to b

e de

cide

d af

ter

base

lines

are

com

plet

e.

PCO

in M

OI

Sub-

indi

cato

rs:

- % o

f rep

rese

ntat

ives

and

staf

f in

partn

erin

g ag

enci

es ra

ting

high

eff

ectiv

enes

s of t

he

partn

ersh

ips e

stab

lishe

d un

der p

roje

ct

To b

e ca

lcul

ated

in

Yr 2

- 50

%

- 70

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Mid

-term

and

end

-term

ta

rget

ed su

rvey

, KII

s, an

d FG

Ds o

f sta

ff an

d le

ader

s/ m

anag

emen

t of i

nvol

ved

inst

itutio

ns.

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

- %

of r

elev

ant e

xter

nal e

xper

ts ra

ting

high

ef

fect

iven

ess o

f the

par

tner

ship

s esta

blish

ed

unde

r pro

ject

To b

e ca

lcul

ated

in

Yr 2

- 50

%

- 70

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Mid

-term

and

end

-term

ta

rget

ed su

rvey

, KII

s, an

d FG

Ds

of re

leva

nt e

xper

ts

and

exte

rnal

stak

ehol

ders

on

thes

e pa

rtner

ship

s

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

A

ggre

gate:

Num

ber o

f new

or e

xist

ing

partn

ersh

ips b

etw

een

and

amon

g SI

s and

NSA

s fo

r whi

ch th

e ag

enci

es (i

) exp

ress

inte

rest

, (ii)

m

ake

a co

ncre

te p

lan,

and

(iii)

take

the

first

step

s to

con

tinue

par

tner

ship

s bey

ond

life

of th

e pr

ojec

t.

To b

e ca

lcul

ated

in

Yr 4

- -

- 20

O

ne-o

ff;

reco

rded

in F

inal

C

ompl

etio

n R

epor

t for

pro

ject

Fina

l IA

Ann

ual P

rogr

ess

Rep

orts

bac

ked

with

ev

iden

ce su

ch a

s MO

Us,

mee

ting

min

utes

, etc

.

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

3. C

aptu

ring

and

Sha

ring

Les

sons

C

ompo

site

: Num

ber o

f les

sons

(mea

sure

d as

ca

ses,

stud

ies,

repo

rts, e

tc) o

f DFG

G a

ctiv

ities

(g

ener

ated

from

the

proj

ect,

from

oth

er p

rogr

ams

in C

ambo

dia,

and

inte

rnat

iona

l) th

at a

re a

sses

sed,

do

cum

ente

d, d

isse

min

ated

, and

use

d in

trai

ning

an

d ca

paci

ty b

uild

ing

prog

ram

s

0 TB

D

TBD

TB

D

TBD

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

Sum

of s

ub-in

dica

tors

w

ith w

eigh

ting

(if

requ

ired)

PCO

in M

OI

Sub-

indi

cato

rs:

- Num

ber o

f les

sons

(cas

es, r

epor

ts, s

tudi

es) a

nd

expe

rienc

es fr

om w

ithin

the

proj

ect t

hat a

re

asse

ssed

, doc

umen

ted,

dis

sem

inat

ed, a

nd u

sed

in

train

ing

and

capa

city

bui

ldin

g pr

ogra

ms

0 0

2 5

10

Ann

ual;

reco

rded

in

Ann

ual R

epor

t Pr

ojec

t rec

ords

and

le

arni

ng d

atab

ase;

Le

arni

ng T

ask

Forc

e w

ill

valid

ate

qual

ity

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

78

Tar

get V

alue

s D

ata

Col

lect

ion

and

Rep

ortin

g

Indi

cato

rs

Bas

elin

e YR

1 YR

2 YR

3 YR

4 Fr

eque

ncy

and

Rep

orts

D

ata

Col

lect

ion

Inst

rum

ents

R

espo

nsib

ility

fo

r D

ata

Col

lect

ion

- Num

ber o

f les

sons

(cas

es, r

epor

ts, s

tudi

es)

draw

n fr

om o

ther

DFG

G a

ctiv

ities

in C

ambo

dia

that

are

ass

esse

d, d

ocum

ente

d, d

isse

min

ated

, and

us

ed in

trai

ning

and

cap

acity

bui

ldin

g pr

ogra

ms

in th

e pr

ojec

t

0 TB

D

TBD

TB

D

TBD

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

Proj

ect r

ecor

ds a

nd

lear

ning

dat

abas

e;

Lear

ning

Tas

k Fo

rce

will

va

lidat

e qu

ality

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

- N

umbe

r of l

esso

ns (c

ases

, rep

orts

, stu

dies

) dr

awn

from

inte

rnat

iona

l DFG

G e

xper

ienc

e th

at

are

asse

ssed

, doc

umen

ted,

dis

sem

inat

ed, a

nd

used

in tr

aini

ng a

nd c

apac

ity b

uild

ing

prog

ram

s in

the

proj

ect

0 TB

D

TBD

TB

D

TBD

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

Proj

ect r

ecor

ds a

nd

lear

ning

dat

abas

e;

Lear

ning

Tas

k Fo

rce

will

va

lidat

e qu

ality

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

A

ggre

gate:

% o

f sta

keho

lder

s (w

ithin

and

bey

ond

the

proj

ect)

repo

rting

incr

ease

d ac

cess

to

info

rmat

ion

on D

FGG

initi

ativ

es

0 30

%

40%

50

%

60%

A

nnua

l; re

cord

ed

in A

nnua

l Rep

ort

Ann

ual s

urve

y, F

GD

s and

K

IIs

with

rele

vant

pro

ject

st

akeh

olde

rs fr

om S

Is a

nd

NSA

s usi

ng si

mpl

e sc

orin

g/ra

ting

ques

tionn

aire

PCO

in M

OI

thro

ugh

cont

ract

ed

cons

ulta

nts/

NG

O/

rese

arch

ag

ency

/firm

Agg

rega

te: N

umbe

r of n

ewly

cre

ated

NSA

ne

twor

ks, r

esou

rce

cent

ers,

or in

form

al c

oalit

ions

es

tabl

ishe

d to

shar

e an

d di

ssem

inat

e le

sson

s of

DFG

G e

xper

ienc

e

To b

e ca

lcul

ated

in

Yr 1

- TB

D

TBD

TB

D

Ann

ual;

reco

rded

in

Ann

ual R

epor

t TA

F as

sess

men

t TA

F

Com

posi

te: S

elf a

sses

smen

t, an

d ex

pert

asse

ssm

ent o

f inc

reas

ed tr

ust a

nd e

vide

nce

of

cons

truct

ive

enga

gem

ent b

etw

een

NSA

and

go

vern

men

t age

ncie

s

To b

e ca

lcul

ated

in

Yr 2

- 50

%

- 70

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Agg

rega

ted

from

sub-

indi

cato

rs u

sing

appr

opria

te w

eigh

ting

sche

me

to b

e de

cide

d af

ter

base

lines

are

com

plet

e.

PCO

in M

OI

Sub-

indi

cato

rs:

- % o

f rep

rese

ntat

ives

and

staf

f in

SIs a

nd N

SAs

supp

orte

d by

pro

ject

not

ing

incr

ease

d tru

st a

nd

evid

ence

of c

onst

ruct

ive

enga

gem

ent

betw

een

NSA

and

gov

ernm

ent a

genc

ies

To b

e ca

lcul

ated

in

Yr 2

- 50

%

- 70

%

Bi-a

nnua

l; re

cord

ed in

ap

plic

able

A

nnua

l Rep

ort

Mid

-term

and

end

-term

ta

rget

ed su

rvey

, KII

s, an

d FG

Ds o

f sta

ff an

d le

ader

s/ m

anag

emen

t of i

nvol

ved

inst

itutio

ns.

PCO

in M

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Attachment 1 to Annex 3: What is �Demand for Good Governance (DFGG)�?

The starting point in developing a program to support DFGG is to be clear upfront about what the term means 1. Conceptually, �DFGG� refers to the extent and ability of citizens, civil society organizations, and other non-state actors to hold the state accountable and to make it responsive to their needs. And in turn, this DFGG enhances the capacity of the state to become transparent, accountable, and participatory in order to respond to these demands.2 Given this conceptualization of DFGG, operationally the project approaches strengthening of DFGG as a process, which has four key elements: 1. Promotion of Demand � The ability of citizens, civil society, and other non-state actors to

demand better governance depends on their access to information, and the degree to which they can act effectively on this information. Thus, DFGG depends on (a) disclosure of information - the level of transparency of the government (regarding budgets, expenditures, programs, etc.), (b) demystification of information - strengthening the level of awareness and understanding of citizens (on laws, rights, budgets, policies, etc.), and (c) dissemination of information� spreading information (related to governance issues, processes, finances, laws, etc) to the ordinary public. In promoting demand, these three �Ds� should be followed by a �C� - collective action � i.e., mobilizing broader action and advocacy around this information. Accordingly, initiatives such as freedom of information, awareness campaigns, rights education, and media programs that �promote� demand are the first element of DFGG.

2. Mediation of Demand � While mobilizing demand through advocacy and information

dissemination are important, these pressures only become �effective� through mediation and institutionalized feedback to the state. Thus, strengthening DFGG also involves (a) creation and strengthening of avenues for feedback of citizens and civil society to public officials, (b) encouraging consultation of these actors in decision making and public actions of executive agencies, as well as (c) formal and informal mechanisms for dispute resolution through initiatives such as interface meetings between citizens and public officials, grievance redress mechanisms, and ombudsman�s offices.

3. Response to Demand � After mediation comes response, without which demand alone would

remain powerless and non-credible and result in unmet expectations. Thus, institutionalizing DFGG includes developing programs and initiatives within the executive that respond to demand either through (a) innovations in service delivery, (b) response based performance incentives, or (c) participatory action planning.

1 Although most people have a basic idea of what DFGG refers to, these conceptualizations would differ from person to person, especially because the terms is intricately linked to other similar notions such as �social accountability� or �participatory/democratic governance�. 2 Drawing an analogy to the idea of �demand� in the field of economics is enlightening here. In economics, the demand for a good or commodity is not just a simple want or desire for that good � it is a want backed by the ability to pay for it. It is only that affordability that makes the demand effective. Similarly, DFGG is not just about wanting� better governance. It becomes �demand� for good governance only when that want is backed by an ability to realize it � that is when citizens are truly empowered. The four elements of DFGG enumerated above are thus ways in which the �wants� for good governance can be translated into effective �demands� for good governance.

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4. Monitoring to Inform Demand � Finally, the last element of increasing DFGG is the process of regular monitoring and oversight of the public sector by non-executive actors such as the parliament, the media, and civil society. This could take the form of (a) participatory monitoring (using citizen feedback surveys of government performance, social audits, media investigations, etc.), (b) independent budget and policy analysis, and (c) formal oversight mechanisms (parliamentary committees, vigilance commissions, etc.). These generate key information for the executive, civil society, and ordinary citizens which feeds back into the process of promoting DFGG � thus completing as well as continuing the cycle (Figure 1).

Figure A3.1: Four Core Elements of DFGG

The above operational interpretation of what DFGG entails, explains why the project is targeting support to institutions that perform one (or more3) of the above functions � promotion, mediation, response, or monitoring for DFGG. These four elements of strengthening DFGG can also be seen as �building blocks� that are required on the demand side to complement efforts towards governance reform on the supply side in any particular context. It is also important to note here that the above definition of DFGG has a key implication � it means that the institutions that strengthen DFGG can be both government institutions and non-state ones. It is commonly understood how non-state institutions can promote, mediate, respond to or monitor DFGG. However, a state-run broadcasting corporation involved with disseminating information about public programs and budgets, and providing feedback of citizens to public officials is also clearly promoting demand. Likewise, ombudsman offices, vigilance commissions and grievance redress mechanisms in line agencies are also mediating demand. Moreover, the response function of DFGG is something that is most often only provided through the state executive. What matters for strengthening DFGG under this project is therefore what an institution does rather than where it is situated. 4

3 A given institution can actually serve more than one (even all four) of the elements of DFGG, although in practice most institutions would have a core competency in one particular area. 4 The notion of DFGG is therefore broader than that of social accountability, which has been defined as an approach to exacting accountability that relies only on civic engagement.

MONITOR - Participatory monitoring - Indept. budget analysis - Formal oversight

PROMOTE - Disclosure,

Demystification and Dissemination

- Collective Action

MEDIATE - Feedback - Consultation - Dispute resolution

DFGG RESPOND

- Service delivery innovations

- Performance rewards - Participatory action plans

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Annex 4: Detailed Project Description CAMBODIA: Demand for Good Governance Project

A. Overview:

1. The project has three components each with several subcomponents as outlined below:

Component 1: Support to State Institutions

1A. Support to the Arbitration Council (AC) 1B. Support to Ministry of National Assembly-Senate Relations & Inspection (MONASRI) 1C. Support to the One Window Service Office and District Ombudsman (OWSO-DO) 1D. Support to Radio National of Kampuchea (RNK)

Component 2: Support to Non-State Institutions 2A. Partnership Grants 2B. Thematic Grants 2C. Capacity Building and Learning

Component 3: Coordination and Learning 3A. Coordination of Project Implementation 3B. Learning

2. The project�s development objective, as described earlier, is to enhance the demand for good governance in priority reform areas by strengthening institutions, supporting partnerships, and sharing lessons. This is to be achieved in large part through support to a select group of institutions and programs engaged in strengthening DFGG (through promotion, mediation, response, or monitoring functions) in their specific areas of activity, which are in the key priority sectors of the Bank�s Country Assistance Strategy�s (CAS�s) Governance Pillar5. Furthermore, both state and non-state institutions are to be targeted, since the task of strengthening of DFGG depends on what an institution does rather than whether it is within or outside the state.6

3. Thus, Component 1 focuses on four state institutions (SIs) in their efforts to model and scale-up new openings for citizen awareness, voice and influence. These SIs, as described in more detail below, were chosen for their demonstrated success or commitment to undertake innovations towards strengthening DFGG in the priority sectors of the CAS Governance Pillar.

4. Component 2 targets non-state actors (NSAs).7 It will help them to develop their own programs, in partnership with the four SIs (from Component 1) or independently, so as to

5 The CAS priority sectors in the Governance Pillar are: (a) private sector development; (b) management of natural resources; (c) public financial management and (d) decentralization and citizens� partnerships for better governance [WB 2005]. 6 See Attachment 1of Annex 3 for the conceptual framework of DFGG that the project is adopting. An important implication of this framework is the recognition that the functions of promotion, mediation, etc. can be performed by both state and non-state actors. 7 Given the Cambodian context, it was particularly important to avoid competition between state and non-state actors for a limited pool of funds. For this reason, the project has separate funding channels for the two.

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connect citizens in meaningful and constructive ways with governance reform processes in the four priority themes of the project (from CAS Governance Pillar).

5. The third component supports overall coordination of the project. It will also promote learning, awareness raising and capacity building on demand-side governance approaches in a broader context. This, in part, is intended to catalyze a �ripple effect� beyond the institutions and programs supported in Components 1 and 2 (see Figure 1). The three components and their subcomponents are described in more detail below.

Figure A4.1: The Three Components of the DFGG project

B. Component 1: Support to State Institutions [Estimated cost US$ 15.91 million; IDA financing US$ 10.66 million8] 6. The first component of the project will support four promising SIs and programs with committed leaderships and demonstrated success in fulfilling one or more of the DFGG functions (promotion, mediation, response or monitoring) 9. These institutions belong or relate to the priority reform areas of the CAS�s Governance Pillar. 7. Nature of Support: The nature of expected support to the selected institutions will vary, but will generally cover: (a) improving and scaling up the scope and coverage of existing operations; (b) piloting new initiatives; (c) adding communication and partnership programs to support and extend these activities; (d) building capacity through technical assistance (TA) and training; (e) improving facilities, office equipment, supplies, and transportation; (f) providing performance-based salary incentives; (g) supporting M&E and learning activities, (h) implementing fiduciary arrangements; and (i) using other anti-corruption, good governance and risk management measures. Given the mixed track record of capacity building support in international development programs, a judicious combination of formal and informal training, 8 Other sources of financing for this and other components include Government Counterpart funding, parallel financing from AusAID, and tripartite stakeholder contributions (for the AC). These contributions are detailed in Annex-5 and the PAD Data Sheet. 9 See Attachment 1 in Annex-3 for a description of the conceptual framework for DFGG.

Support to State Institutions

Support to Non-State Institutions

CCoooorr ddiinn aattiioonn aann dd LLeeaarr nniinngg

Component-1 Compoenent-2

Component-3

Building partnerships

Sharing lessons Creating a �ripple effect�

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mentoring, coaching, learning-by-doing, and study tours will be supported under this component. These different methods are expected to provide lessons regarding capacity enhancement processes in support of DFGG. 8. Selection Process and Criteria : The SIs to be supported under the project were pre-selected during project preparation. This was done for several reasons. First, it avoided creating tricky competition for project funds among state agencies. Second, it allowed the project to target a broad distribution of institutions covering different criteria. Finally, given that DFGG is a relatively new concept in Cambodia, it was recognized that a lot of capacity building and joint planning would be needed upfront during project preparation with each of the supported institutions. This could only be done if the institutions were chosen during the design phase. 9. The project team therefore went through a series of consultations with government, donors, and civil society organizations over a six-month process to generate a shortlist of potential candidates for support. This search was further informed by an existing assessment of options for increasing social accountability in Cambodia carried out by DFID and the World Bank country team (Burke and Vanna 2005), and two rapid institutional assessments of transparency institutions done recently by different World Bank teams (Bou and Salazar 2005; Mohan 2006). Inputs were also sought from the project counterpart agency � the Ministry of Interior (MOI). Finally, a rapid but insightful political economy analysis was conducted to identify those leaders who were likely to support demand-side approaches in the RGC, and the organizations and programs which they were leading. 10. The available spectrum of Cambodian state institutions undertaking DFGG-related functions of promotion, mediation, response, and monitoring were then narrowed down based on the following criteria in order of importance:

a. The set of institutions should cover or relate to the priority sector themes of the CAS Governance Pillar and the RS, as highlighted above;

b. The mandate and activities of each institution (or of the chosen program within it) should cover at least one element of strengthening DFGG, viz. promotion, mediation, response, or monitoring;

c. Each institution should have demonstrated success and/or have a committed leadership willing to support DFGG activities;

d. The set of institutions should cover diverse parts of the state machinery � executive, legislature, judiciary, and independent oversight agencies; and

e. The set of institutions (and, to the extent possible, each individual institution) should also cover both national and local levels of engagement.

11. Through this process, four SIs were selected for support, which corresponded to three out of the four priority sectors in the CAS Governance Pillar. Originally, a fifth SI � the National Assembly Committee on Budget � was also included as it linked to the remaining priority sector, viz. public financial management. However, because there was no forthcoming reform champion with commitment to prepare a convincing proposal for project support from the National

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Assembly Committee, this SI was dropped early on during project preparation. 10 The support to the remaining four SIs is described under the four subcomponents of Component 1 below. Component 1A: Support to the Arbitration Council (AC) {Estimated cost US$ 2.76 million; IDA financing US$ 2.34 million} 12. Background: Since its establishment in 2003, the AC has become an effective statutory body that has provided a fast, transparent, and fair (law-based) mediation service to resolve disputes between firms and employees, mainly in the garment sector. It is a national SI associated with the Ministry of Labor and Vocational Training (MOLVT) and is the only example of its kind in South East Asia. As a quasi-judicial authority, it is mandated to resolve, through voluntary mediation and mandatory arbitration, collective labor disputes which cannot be resolved through prior conciliation. 13. The AC is a model institution that demonstrates the RGC�s commitment to upholding the ILO�s Core Labor Standards and showcases the potential of alternative dispute resolution mechanisms in mediating DFGG. Despite its success, however, it continues to face four key challenges. First, the smooth functioning and independence of the AC relies on a delicate balance of relationships between the MOLVT, the Arbitration Council Foundation (ACF)11, labor unions, and firms/employer associations. Secondly, the reach of the AC has largely been limited to only one sector (garments) and one region (the greater Phnom Penh area), from which over 90% of cases originate. Thirdly, while the success rate of AC cases is high, almost one third remain unresolved and just over half of arbitral awards are implemented. Raising these numbers would greatly enhance the credibility and value of the AC. Lastly, the AC is currently dependent on external financing and is managed almost entirely through a non-state entity, the ACF, but depends functionally on a process that initiates within the MoLVT. In the medium-to-longer term, the AC therefore faces a financial and institutional sustainability challenge.12 14. Scope of Activities Supported: The project�s support to the AC will attempt to address these challenges thereby making the AC a more broad-based, credible, efficient, and sustainable organization. The activities to be funded under this subcomponent are the following:

a. AC Institutional Integrity and Sustainability � consolidating the process of selection of arbitrators; conducting Arbitrators Meetings, Arbitrators� Retreats and Working Groups; developing a financial and institutional sustainability plan (including a study on the economic value of AC services); and undertaking short-term fundraising activities.

b. Labor Dispute Resolution � funding direct costs of arbitrating cases; introducing a

pilot system of �designated mediators� to attempt settlement agreements prior to formal arbitration; funding administrative and legal support to Arbitration Panels;

10 This Committee may nonetheless get support from the ongoing Bank-financed Public Financial Management program in Cambodia. 11 The ACF is a non-state institution that was established in 2004 with assistance from the ILO to help manage the functioning of the AC. For more details on the current institutional structure for the AC see Annex 6. 12 In this regard, AusAID will be providing parallel financing of US$ 200,000 to the ACF to provide it the necessary seed capital for pre-financing its operating expenses as a contribution towards the AC�s financial and institutional independence and sustainability.

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development of legal tools and systems for legal and industrial relations research; creating legal bench books and a lega l research database; conducting capacity building programs and training sessions for arbitrators, ACF staff, and staff of the AC Secretariat (SAC); and introducing initiatives to expand the scope of the AC (e.g., mobile teams, regional partnership arrangements, and pilot �direct access� to AC initiative) to other sectors and regions.

c. Partnerships and Stakeholder Outreach and Training � setting up a �Project Collaboration Committee� with membership of the MOLVT, ACF, unions, and employers� associations; conducting an annual National Industrial Relations Conference; forming an independent Industrial Relations Society; establishing an International Advisory Group with ILO assistance; stakeholder training; maintaining the AC website; publishing and disseminating AC awards and information on dispute resolution; and funding various media and promotional tools (e.g., an AC soap opera, public service announcements, a dispute resolution training video, and annual publicity campaigns).

d. General Operations and Project Management � including equipment, training,

ACF staff salaries, and M&E activities. 15. Expected Outcomes: Through the above support, the subcomponent�s aim will be to contribute to an effective governance environment for private sector development in Cambodia, by enhancing the extent to which a well- functioning labor arbitration system builds workers� and employers� confidence that disputes will be resolved effectively and fairly. The work of the AC will enhance DFGG by mediating the conflicting demands of worker and employer groups, promoting greater awareness of the Labor Law and labor arbitration process, and responding to the demand for better enforcement and adherence to the Labor Law. The subcomponent relates to the first objective of the CAS Governance Pillar, viz. promoting private sector development for poverty reduction. Component 1B: Support to the Ministry of National Assembly-Senate Relations and Inspection (MONASRI) {Estimated cost US$ 2.50 million; IDA financing US$ 2.42 million} 16. Background: MONASRI was created in 1999 as part of the RGC�s institutions involved in strengthening the rule of law. Its core activities that relate to strengthening DFGG include: (a) dissemination of existing laws to increase awareness of rights and provide an avenue for citizens to express their complaints (to be supported under the DFGG project); (b) carrying out inspections for controlling corruption, power abuses, and misconducts, and (c) drafting new legislation. 17. Challenges: While different donors have begun to support the last two core activities of the Ministry, the critical functions of law dissemination (LD) and complaints handling (CH) have thus far not received any assistance. Consequently, while MONASRI has several departments working on LD and CH functions for several years and has offices located in 24 provinces/municipalities, these efforts have been hampered by a shortage of strategic preparation, human resources and budget constraints. There has further been a lack of

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partnerships13 with many civil society organizations (CSOs), who have extensive programs and experience in LD and CH14and insufficient collaboration with other concerned SIs. As a result, by its own evaluation, the effectiveness of MONASRI�s performance with regards to these two critical functions has been limited. However, the Ministry is headed by a committed Lady Senior Minister, who is keen on strengthening the capacity of the Ministry in these two areas and direct its efforts towards the intended goals of promoting and mediating DFGG. 15 18. Scope of Activities Supported: The project support to MONASRI will try to address the above challenges by introducing a new partnership and results oriented way of performing the LD and CH functions. This new results and partnership oriented way of doing business will be developed by focusing on one law � the Land Law � which is recognized as one of the most pertinent for ordinary Cambodians and for which there remain persistent problems of governance and enforcement. Starting with a small number of provinces in year one, the program will scale-up to the nation-wide level by the final year of the project. Lessons will be drawn and applied throughout the phased implementation. The specific activities to be funded under the subcomponent include:

a. Law Dissemination and Complaints Handling � creation of new communications tools and strategies for land law dissemination using print material, educational videos, website, public forums, public relations, and mass media; establishing annual business planning and monitoring system; technical assistance and mentoring through an international expert communications/LD advisor; setting up partnership arrangements with the Ministry of Land, and other intermediaries (e.g., village elders, commune councils, district ombudsman, NGOs, independent media, etc.) to assist in LD and CH work; and conducting a review of existing CH mechanisms available to citizens for land disputes.

b. Capacity Building and Institutional Strengthening- developing and implementing

an organizational change plan to make the LD and CH operations of the Ministry more efficient; introduc ing MBPI and PMG systems for staff salary incentives (for approximately 70 staff); setting up an improved financial management system; developing and implementing a Staff Learning Plan with assistance from an international organizational learning specialist; implementing a comprehensive staff training program based on a needs assessment; developing a business plan for Land Law dissemination; and conducting Intra-Ministry learning and knowledge sharing workshops.

19. Expected Outcomes: The support to MONASRI is expected to promote and mediate DFGG by increasing citizens� awareness of their rights and obligations under the Land Law and helping channel and address citizens� complaints through an enhanced CH mechanism. This will 13 MONASRI has already begun to remedy this. It organized a workshop in August 2007 with CSOs and SIs to discuss specific areas of collaboration. These ideas will be pursued in the pre-implementation and implementation phases to translate them into suitable contracts and compacts for partnerships. 14 Most of the CSOs active in land LD and CH are members of The Land Action Network for Development (LAND) which is part of the NGO Forum in Cambodia (http://www.ngoforum.org.kh ). 15 The commitment of the Ministry was also showcased through the appointment of its Secretary of State as the head of the technical working group in charge of preparing the proposal for support from the project.

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contribute to the RGC�s and the Bank�s CAS higher level objectives of improving governance in natural resources management, promoting citizen�s partnerships for better governance and improving the rule of law. At the same time, the subcomponent will strengthen the institutional capacity in MONASRI for carrying out LD and CH functions on a nation wide scale (which is their legislative mandate) using a combination of its own staff and partnerships with other SIs and CSOs. Component 1C: Support to the One Window Service Office (OWSO) and District Ombudsman (DO) Office {Estimated cost US$ 4.76 million; IDA financing US$ 3.53 million} 20. Background: The OWSO and DO offices are newly-created institutions currently being piloted by the Ministry of Interior (MOI) � with assistance of the EU-funded Asia Urbs project implemented by the Konrad Adenauer Foundation (KAF) - in two provinces in the northwest of the country, viz. Siem Reap and Battambang. The institutions have been in operation since 2005. 21. The OWSO is a pioneering experiment in providing certain administrative services16 to citizens and small businesses under a single roof in a speedy, transparent, and corruption-free manner. This is markedly different from the old structures in these districts and the system that exists in other districts of Cambodia. In most districts there is no transparency and the majority of citizens and small businesses have to pay hefty unofficial fees and wait long periods to obtain the licenses and registrations required by law. 22. The DO is an avenue for receiving and when possible resolving complaints and conflicts from citizens, the business community, and civil society on the performance and conduct of district officials. The DO is also an agent to fight corruption and build a good relation between citizens, businesspeople and the district administration. 23. Challenges: The internal and external evaluations of these district reforms and innovations suggest that these new institutions are greatly appreciated by citizens 17. However several shortcomings remain. The OWSOs have very limited competenc ies compared to citizen�s needs; staff-client ratios are high; equipment and infrastructure of the offices is limited; fees charged are insufficient to cover operational costs; and there are some delays in provision of certain services. What is more, the OWSOs currently only cater to an urban population. The DO office faces even greater challenges. It has so far not been as successful as the OWSO in terms of attracting attention and citizen interaction. Many citizens are not aware of the DO�s existence and mandate. Further, the culture of raising complaints against the administration is still not developed, which has meant that the DO offices have so far received a negligible number of official complaints. 24. Scope of Activities Supported: Despite these limitations, the institutions have provided key benefits to citizens, small businesses, and local authorities in both the pilot districts and show

16 These include licenses and documentation relating to land management, commerce, urban planning and construction, industry, and tourism (e.g., permits for setting up small guesthouses, shops, putting up advertising billboards, small constructions, notarization, etc.) 17 An exit survey of OWSO clients done by KAF as part of its Mid-Term Assessment of the Asia Urbs project showed that 55.8% of clients found the quality of service delivery at these offices as �good�, while another 30.8% rated it as �very good�. The re mainder responded to it as �average�.

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great promise for the future. There is thus a great demand from other provinces and regions to expand this model to other districts across the country and through this set a precedent for future Decentralization and De-concentration (D&D) reforms in Cambodia that ensued with the passage of the �Organic Law� (on D&D) in April 2008. The proposed subcomponent in the project responds to this demand. It aims to establish new OWSO and DO offices in at least one urban district/khan in each province of the country (except Phnom Penh), and an additional pilot one in a rural district. Starting with a limited number of provinces in year one, the project will gradually scale up to cover all provinces, and the phased implementation will enable lessons to be learned while doing. The strategy would also be to strengthen the mandate and competencies of these institutions (through greater capacity building, equipment, enhanced competencies, more partnerships and wider outreach) rather than simply replicating them. Further, efforts to introduce some measures of people�s participation in the target districts (which were piloted at a small scale in Siem Reap and Battambang) will also be part of the proposed subcomponent. Specific activities proposed include:

a. Expansion and Strengthening of OWSO � establishing legal frameworks for setting up and expanding competencies of OWSOs; preparation and renovation of new OWSO buildings; furnishing offices with modern equipment; staff training and capacity building; development of OWSO websites with information on services and fees available within and outside the OWSO; undertaking a feasibility study on and thereafter setting up a pilot rural OWSO; and conducting a study on a potential OWSO model for Phnom Penh Municipality.

b. Extending and Strengthening the Capacity of the DO � designing a transparent

and democratic system for electing the DO; training and election of DOs in each new district; setting up and equipping of DO offices; and capacity building and support to the DO.

c. Implementing New Forms of Citizens Participation and Outreach � conducting

Annual Citizens� Forums and Semi-Annual Business and Citizen�s Representative meetings in each targeted district; setting up a Monthly Citizen�s Hours with the District Governor; and regular information campaigns for publicizing the OWSO and the DO offices.

d. M&E and Learning � establishing an internal M&E and reporting system;

contracting out to an independent NGO/think tank the baseline and end evaluation studies; conducting periodic external monitoring in the form of an annual exit survey of OWSO and DO customers, a voluntary client scorecard of OWSO-DO performance, and focus group discussions with a sample of key stakeholders; and undertaking cross/peer learning events across different district OWSO-DO staff.

e. Project Management � setting up a �district support team� to manage

subcomponent activities; establishing an inter-ministerial �technical advisory group� to provide policy and legal support; introducing MBPI and PMG systems of salary incentives; acquiring new transport and office equipment; undertaking

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supervision missions and travel; staff training and capacity building; and recruiting additional technical assistants and contract staff.

25. Expected Outcomes: Together, these initiatives will contribute to the RGC�s higher level objectives of increasing accountability towards citizens through strengthened local governance. The Strategic Framework for D&D of the RGC has already drawn heavily from the experience of the two pilot districts where these district reforms were introduced. The expansion under the subcomponent will now represent the flagship reforms at the district level that will guide the implementation of the recently adopted Organic Law on D&D. The subcomponent will strengthen DFGG in the targeted districts by responding to the needs of citizens and small businesses for certain administrative services to be delivered in an efficient, transparent, and accountable manner; by providing an avenue for mediating complaints and concerns of citizens and small businesses regarding the district administration; and by promoting awareness and participation of citizens in decisions, policies, and programs of district governments. In this way, it will contribute directly to the 4th objective of the CAS Governance Pillar, viz., to support decentralization and promote citizens� partnerships for better governance (social accountability). Further, as most of the licensing and registration services offered at the OWSOs pertain to small and micro enterprises such as guest houses and restaurants, the subcomponent would also be promoting a better business climate in the targeted urban districts. Component 1D: Support to Radio National Kampuchea (RNK) {Estimated cost US$ 5.89 million; IDA financing US$ 2.38 million} 26. Background: RNK is the national public radio broadcasting agency in Cambodia that was re-established in 1979 after the civil war. Its legislative mandate requires it to broadcast parliamentary proceedings as well as public interest programs. It has traditionally been used to only broadcast official proceedings and news without the need for audience orientation. Over the past few years, however, with the support of the AusAID-funded Cambodia Radio Development Assistance Program (CRDAP), RNK has initiated a process for rebuilding its image and credibility through a rapidly popularizing one hour talkback program (TBP) called �Our Life, Our Society� modeled on radio call- in-shows. The TBP is pushing the boundaries by providing people with a chance to have a dialogue with decision makers on key issues of concern. Findings from an Audience Research Study as well as a joint review by AusAID, Radio Australia, and the Bank reveal a high level of stakeholder satisfaction with the quality of the TBP. 27. Challenges: Building on the success of the TBP, RNK is keen on further diversification of its programming through increasing public interest programming while still fulfilling its mandate to broadcast parliamentary proceedings. But it faces many challenges in this effort. Firstly, apart from the TBP, there is a lack of programming that provides citizens with balanced, accurate and up-to-date information on public interest issues. News services are poorly developed, and the TBP itself has only limited air time. RNK also faces internal challenges as an organization. The staffing competency needs to be improved as current RNK staff have insufficient skills in program production and presentation. There is also limited knowledge of and a lack of focus on RNK�s audience interests. RNK has no advisory or governing board or any other external reference point. It has no corporate or business plan and no Editorial Policy to govern its programming.

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28. Scope of Activities Supported: Project support to RNK, which will be provided in collaboration with AusAID (through an extension of the CRDAP), will help tackle these challenges. The project will expand TBP�s coverage, introduce new feature stories on governance issues, and revamp the newsroom function in RNK. To provide RNK the required editorial freedom and journalistic ethic, an Editorial Policy and Code of Conduct have been introduced during project preparation itself. Additionally, with support from AusAID funded technical assistance, the organizational capacity of RNK will be developed to produce and broadcast quality information services, manage its corporate functions, and develop and initiate a long term sustainability strategy. Specific activities that will be funded include the following:

a. Program Content Development � expanding TBP programming from 180 to 240 programs per year; introduc ing approximately 450 ten minute feature stories and 52 one hour weekend wrap-ups on current affairs and topics of interest; renovating the news services of RNK to provide accurate, timely and independent information to listeners; introduction of the editorial policy and code of conduct mentioned above; and developing partnerships between RNK and CSOs, SIs, and donors to share experiences, develop content and monitor and provide feedback on RNK programming.

b. Capacity Building � strengthening of the organizational capacity of RNK to

produce and broadcast quality information services; training and enhancing staff for managerial departments (e.g., human resources, marketing, financial management, strategic planning, etc.); developing a sustainability strategy; and international technical assistance through a �twinning arrangement� with Radio Australia (funded via AusAID).

29. Expected Outcomes: The support to RNK through this subcomponent will help to promote and mediate DFGG through providing balanced, accurate and up-to-date radio programs which inform, and facilitate dialogue between citizens, CSOs, businesses and government. It will also strengthen the capacity of RNK to increase its public interest programming and audience share, and begin its transition into a public radio broadcaster delivering quality programs efficiently and effectively to all Cambodians. The subcomponent forms part of the theme of strengthening media as an instrument for promoting citizens� partnerships for better governance and relates to the 4th objective of the CAS Governance Pillar. C. Component 2: Support to Non-state Institutions [Estimated cost US$ 4.28 million; IDA financing US$ 4.28 million] 30. The second component of the project is designed to strengthen the contribution of non-state actors (NSAs) to DFGG by providing grants and capacity-building assistance to enhance their governance-related work. This will be the first Bank-financed project in Cambodia (and perhaps the first in the world) to provide such support. It is designed to give practical support for the government�s strategy of developing a partnership approach to tackle its governance

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challenges18, working with civil society, the private sector, donors and others. This component, overall, seeks to deepen the contribution of NGOs, CSOs, independent media and other NSAs to one or more of the DFGG functions (promotion, mediation, response or monitoring). A civil society assessment, commissioned by the Bank and now nearing completion19, reveals that, for a series of reasons, there is very little opportunity for ordinary citizens to express concerns or views about issues they care about and few NSAs that contribute to DFGG. The Component will aim to address this gap. 31. Nature of Support: The main type of support to be provided comprises grant funding. This will mostly be through an open, competitive process, provisionally called �Development Marketplace� (DM).20 Small or less experienced NSAs and those who seek rather immediate funding to pilot a new approach will be able to apply for Small Grants via a streamlined, one-step process. In addition, grantees (and where applicable their SI partners) would be able to receive capacity building assistance in the form of training and one-on-one guidance in the institutional and procedural arrangements for the component, in skills relating to DFGG and in the lessons of experience from social accountability practice in Cambodia � especially from previously supported activities under this component. Hence support will consist of (a) funding to scale up the scope and coverage of existing operations and successful pilots; (b) financing of NSA partnerships programs with one or other of the SIs in Component 1; (c) funding for pilot or small-scale activities designed to take DFGG approaches into new areas; (d) institutional strengthening, capacity building support and guidance to new or potential grantees; and (e) robust and participatory monitoring and evaluation (M&E) activities, in particular those designed to draw lessons of social accountability experience in Cambodia that will be valuable for the capacity building activities. 32. Selection Process for Implementing Agency (IA): The MOI recognized that, to ensure independence, this component would best be implemented by a non-state actor with adequate capacity and experience. To make the selection, it considered a variety of non-governmental and donor agencies, international and Cambodian. From these, three likely candidates were identified and invited to submit proposals; all did so. By reviewing these and interviewing the proposers, the Bank and the project coordination team within MOI compiled an evaluation of the proposals which was used by the Deputy Prime Minister and Senior Minister, MOI, to select the Asia Foundation (TAF) as the IA for Component 2. Subsequently, the MEF agreed with and confirmed the appointment of TAF. TAF already manages grant-making and other programs that 18 The government�s �Rectangular Strategy� (RS), presented in 2004, places good governance at the core of Cambodia’s development agenda. For this, the RS stressed the need to foster strong and innovative partnership with stakeholders, including the private sector, development partners, and civil society. 19 The civil society assessment has been conducted by the Centre for Advanced Study and is provisionally titled �Conditions and Capacities for Social Accountability in Cambodia�. The study has entailed extensive field work (particularly on 5 case studies of civic engagement), interviews and focus group discussions with civil society organizations (in Phnom Penh and 4 provinces), analysis of completed questionnaires received from 123 NGOs, a public opinion survey reaching 900 people in 4 provinces, and a stocktaking of existing social accountability practices in Cambodia. 20 TAF is currently consulting local stakeholders to come up with a Khmer title for the DM before project implementation. This would enable greater local ownership, understanding and visibility for this grant competition. It would also avoid confusion with the Bank-executed DM grant schemes for NSAs. To date, World Bank DMs (at the global level or through 42 country-level competitions) have disbursed over US$34 million in awards to 820 winning proposals .

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support capacity building of civil society and the business community in Cambodia. Thus it is well-equipped to implement this component (see Annex 6 for more details on TAF). 33. Selection Process for Grants: Proposals for Small Grants and concept notes (CNs) for grants over $15,000 will be widely solicited from NSAs in Cambodia. The proposals and CNs will be screened by the IA to establish that they are appropriate and do not include certain excluded expenditure categories.21 Those cleared will be submitted to an independent and multi-stakeholder Grant-Making Committee (GMC) for deliberation. Small Grant proposals will be decided on directly by the GMC and successful proposals will receive funding thereafter. The GMC will also at this point decide which CNs have adequate merit. The authors of those CNs will be invited to submit full proposals. These proposals will be entered into the DM� a high-profile public event in which all proposals will be showcased and at which GMC members will interview proposers and decide which ones they consider to have most merit. These events will also serve as learning forums. They will provide a �trade fair� flavor in which other practitioners present displays about their social accountability experiences, and workshops are held for public debate on matters of governance. Applicants for Partnership Grants (see below) would need to demonstrate that their proposals relate to Component 1 and are supported by the relevant SI. After the DM, the GMC will meet to agree which proposals should receive grants (further details of the grant process are provided in Annex 6). 34. Links to, and Relationship with, PECSA: As described in the main text of the PAD, PECSA is a two-year program for capacity building for NSA in the area of social accountability. 22 The PECSA program is intended, inter alia, to pilot the grant mechanisms that will be used in the non-state component.23 Further, in terms of capacity building, during the course of implementing the component, TAF will help grantees identify their capacity-building needs related to DFGG, and will liaise with PECSA to explore how these might be met. In mid-CY2009, MOI, the Bank and TAF would jointly consider whether certain services of PECSA are still in high demand and are unlikely to be met by existing institutions when PECSA closes (scheduled to be at the end of CY2009), and whether the DFGG project should be adjusted so as to help meet such needs. This might be achieved by providing continuing funding for PECSA�s capacity building activities, by bringing these within the remit of Component 2 of the project, or by developing a partnership with another program.24 35. Mechanisms for Channeling Support: The Component would offer three mechanisms for channeling its support to NSA: firstly, Partnership Grants � to finance NSA activities designed in dialogue with the SIs supported by the project and that are intended to extend the reach, scope and/or effectiveness of the SI subcomponents; secondly, Thematic Grants � to finance NSA initiatives in one or other of the 4 thematic areas of focus in the DFGG project (from the CAS

21 This includes civil works, land purchase, or any other element that might trigger the Bank�s safeguard policies. 22 PECSA is the Program to Enhance Capacity in Social Accountability. See Attachment 1 to this Annex for a short description of the PECSA program. 23 PECSA includes a $500,000 grant Component, piloting the NSAC funding mechanisms, including: the Grant-Making Committee, selection criteria, Development Marketplace, small grants program, and the M&E mechanisms both for purposes of due diligence and for learning and dissemination. 24 The component will also work closely with the �Civil Society and Pro-Poor Markets� initiative of the �Natural Resources and Livelihoods Program� funded by the Department for International Development (DFID) and the Danish Development Agency (DANIDA) that has somewhat similar objectives.

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Governance Pillar); and thirdly, Capacity Building and Learning � to enhance the ability of NSAs to design and execute activities supported by the project and to ensure that lessons from the experience of this component are rigorously drawn and widely shared. These mechanisms for support correspond with the three subcomponents of component 2 as described below. Component 2A: Partnership Grants {Estimated cost US$ 1.03 million; IDA financing US$ 1.03 million} 36. Approximately 25 percent of grant funds would go to activities designed and proposed by NSAs in consultation with one or more SIs of Component 1. Grants are intended to help extend the reach, scope and effectiveness of the SI programs and support independent monitoring and assessments of them. Activities supported should, therefore, not include items that should be funded by the SI subcomponent directly. 37. Partnership Grants would be processed through the same approach as the Thematic Grants, with the exception that the proposals are expected to be developed by NSAs in discussion with the relevant SIs. To ensure this is the case, all proposals and CNs will be shared by TAF with the relevant SI, who would be given adequate time to submit any supportive comments or reservations. In the latter case, the proposals would not be considered for Partnership Grants. Component 2B: Thematic Grants {Estimated cost US$ 2.96 million; IDA financing US$ 2.96 million} 38. The bulk of the grant funds would go to support NSA initiatives that are independent of the activities of the SIs in Component 1, but which enhance citizens� voice in issues of governance, promote innovations in social accountability, and strengthen governance-related networking, coalition-building and dialogue with state actors. This enables the project to enhance citizens� contribution to broader issues of governance in relation to one or more of the four sector themes. These grants fall into three scale categories, with overlapping but somewhat differing objectives:

a. Coalitions; grants up to $150,000 for extensive coalition-building linking grassroots and district- level actors to national networks; or support national- level NSAs (e.g. professional associations) and organizations in the area of social accountability and governance reform. These grants are also expected to support horizontal coalitions;

b. Innovation, scaling up and bridging: grants up to $50,000 for significant activities

that introduce new DFGG approaches or that scale up promising pilots, with an emphasis on activities that involve partnerships at grassroots level;

c. Piloting and grassroots: small grants, up to $15,000, for small-scale piloting of

new approaches and supporting governance activities of local NSAs. Here, simple application procedures would be used.

Component 2C: Capacity-Building and Learning {Estimated cost US$ 0.28 million; IDA financing US$ 0.28 million}

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39. The third subcomponent will provide support for building the capacity of NSAs in social accountability, continuing the momentum of PECSA. It will also engage skilled evaluators, independent institutions and communications specialists in evaluating the programs financed by the grants and the dissemination of learning from experience. 40. TAF will provide training, coaching and other capacity building support to grantees and those who�s CNs have been approved and who are developing full proposals. These activities will be designed and executed by TAF to ensure applicants have adequate tools, resources and guidance to manage their grants. It will further address various aspects of grantees� organizational needs (including CSO governance, strategic planning, organizational learning, human resource development, communications, relations with local governments and with the business community, etc). TAF will also offer two major learning events (NSA forums) on governance and the roles of NSAs; one at the midpoint, and the other towards the project�s close as part of this subcomponent. These would draw particularly on experiences of earlier grants. 41. The elements of this subcomponent include monitoring of the activities of grantees and assessing their impact in four stages: (i) pre-grant monitoring or due diligence by TAF; (ii) random spot-checking by an independent agency based on a checklist of implementation criteria; (iii) TAF review of quarterly financ ial and narrative reports; and (iv) independent project assessment by a Cambodian think-tank, measuring changes in citizen perception on governance issues using a survey approach. The think tank will also undertake detailed case-studies on certain social accountability mechanisms piloted through support from Component 2. 42. In sum, this Component is aimed at facilitating greater effectiveness of the Component 1 SIs (through the Partnership Grants) and extend ing DFGG approaches more broadly throughout the four priority reform areas (through the Thematic Grants). The experience of collaboration with SIs is in turn expected to foster a culture of constructive engagement that NSAs would carry over to other contexts. 43. The component is highly unusual for a Bank-financed project; hence it is admittedly untried, untested and high risk. However, the strong returns expected from bringing NSAs into more prominent governance roles in Cambodia justify the risks. Anticipation of areas of vulnerability also permits timely identification of measures which would both reduce their likelihood and/or mitigate their impact. To this end, the project has prepared a detailed Risk Management Framework for Component 2, which anticipates likely political, institutional, sustainability and other risks and proposes specific measures to address them. (See Annex 13). 44. Further, recognizing its innovative character, the Component design builds in considerable flexibility. Experience will be assessed at three different points in project implementation: (i) after conclusion of the PECSA pilot;25 (ii) after the first marketplace event; and (iii) at the project�s mid-term review. All three inputs may lead to adjustments in design of the component � e.g., in grant criteria and grant-making mechanisms, in allocation of resources across grant

25 PECSA will help test and fine-tune the DM-like and small grant mechanisms by providing a limited number of NSAs with social accountability grants. These two grant-making mechanisms will be scaled up through the Component 2 of the project.

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categories and/or mechanisms, in the purposes for which these are allocated, or in the balance between grants and capacity building programs. D. Component 3: Coordination and Learning [Estimated cost US$ 2.45 million; IDA financing US$ 2.42 million] 45. The diverse themes and multiple institutions involved in the DFGG project require a solid system for coordination and oversight of project implementation across implementing agencies (IAs).26 Further, given the novel nature of the project, an approach of continuous learning and sharing of experience is also necessary. Thus, the third component of the project will aim to (a) ensure effective implementation of the DFGG project, consistent with agreed management guidelines and best practice, and timely progress in the direction of achieving the project�s overall development objectives; and (b) promote learning about and facilitate adoption of DFGG approaches and practices within and beyond the SIs and NSAs that participate in the DFGG project. The MOI, which is the overall executing agency (EA) for the project, will be in charge of implementing this component. The Ministry is well placed to play this role - not only has it been mandated to lead implementation of the Government�s D&D policy, it is also the RGC�s focal point for NGO relations and has key reform champions at the highest political and technical levels committed to supporting DFGG programs (see Annex 6 for more details). 46. Expected Outcomes of Component 3: The fundamental outcome expected from Component 3 is a successfully implemented project, undertaken to schedule, with efficient use of resources. In addition, the component is expected to ensure: (a) increased capacity within the participating agencies for both project implementation and DFGG activities in general; (b) strengthened collaboration among project agencies; (c) broader government and civil society awareness and understanding of DFGG principles, approaches and their respective roles and responsibilities; and (d) increased trust between government and civil society. In the medium-to- longer term (i.e., beyond the implementation period), it is hoped that a �ripple effect� can be promoted, leading to constructive engagement across state and non-state sectors, increased use of DFGG approaches by civil society, and improved good governance practices by government agencies can be promoted. 47. Design principles: Given the above objectives and recognizing the capacity constraints of the MOI, the strategic approach followed in preparation of this component has been driven, inter alia, by the following key principles:

• All activities under this Component must �add value�, responding to demands that are perceived now or are likely to arise in the course of project implementation. Design of the component has likewise avoided creating unnecessary demands on any of the IAs or imposing an excessive burden on the MOI.

• Broad-based awareness raising and capacity building are critical to promoting DFGG but lie beyond the interest or mandate of any one specific IA, and thus call for a centralized response housed in the MOI.

26 Given the diverse nature of their organizations and programs, each of the SIs being supported under Component 1, as well as TAF (for Component 2), is being treated as a separate implementing agency (IA) under the project. This �modular� structure allows maximum independence and flexibility in implementation. See Annex 6 for more details.

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• The component should seek to carefully monitor implementation outcomes and results, to capture and share experience across IAs (SIs and NSAs) and beyond, and to promote synergies where relevant and possible.

• In addition, design of the component (as is also the case in other components) should incorporate some flexibility and room to adapt to early implementation experience and evolving circumstances.

• Clarity of vision, consistent messaging, and broad dissemination of results on DFGG approaches are key to creating a �ripple effect� in novel areas.

• Institutional structures should be kept tight and lean, and require a core group of competent and highly motivated staff and TA in the MOI. A gradual, �no regrets� approach to core team composition should be taken, with greater reliance on external technical assistance (TA) initially, bringing in and strengthening permanent staff as clarity is gained on the MOI�s mandate and structure.

48. Based on these design principles, Component 3 has been structured into two subcomponents as described below. Component 3A: Coordination of Project Implementation {Estimated cost US$ 1.52 million; IDA financing US$ 1.50 million} 49. The first subcomponent aims to promote effective implementation of the DFGG project by (i) ensuring that the project is carried out in accordance with best professional practice and in a timely manner; and (ii) ensuring its strategic relevance and timely progress in the direction of achieving the project�s overall development objectives. As such, project implementation will be a responsibility of the various IAs but will require overall coordination by the MOI. A Project Implementation Manual (PIM) will set forth guidelines and procedures applicable to all IAs, and specify the MOI�s role and responsibilities as EA. 50. The MOI will carry out the following activities under this subcomponent: manage the Annual Work Plan (AWP) cycle, inter alia, coordinating AWP preparation and monitoring its implementation and consistency with the agreed four-year project proposals of the IAs; serve as the secretariat for the Project Coordination Group (PCG);27 through the PCG, to the extent possible, address problems as they arise; elevate to the attention of the Minister of the MOI critical issues that transcend the mandate of the IAs and their respective authorities; facilitate cooperation, information sharing, synergies across IAs, and capacity building through a pool of technical assistants in areas of common interest;28 undertake other �mandatory� EA functions 29 including, inter alia, statutory reporting, arrangement of independent audits, fiduciary management and oversight, and overall risk management; ensure adherence to the Good Governance Framework (GGF) and IA-specific Good Governance Plans (GGPs); serve as the focal point for interaction with the Bank, reporting on a regular basis, coordinating presentation of disbursement requests,

27 See Annex 6 for description. 28 Demand for such TA lies predominantly in four areas: basic concepts, issues, and approaches to strengthening DFGG; basic project management skills; M&E concepts and methodologies; and World Bank-specific project implementation processes and procedures (e.g., procurement, financial management, disbursement). 29 As mentioned above, the PCO is expected to discharge this role by �adding value� to the work of the IAs rather than becoming an additional bureaucratic layer.

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and facilitating the Bank�s supervision; provide periodic progress reports and organize an Annual Review of Project Implementation (ARPI), focusing on achievement of project objectives and the effectiveness of its programs, involving external participants as appropriate to ensure inputs from sectors with relevant experience in DFGG approaches; and ensure complementarities and harmonization with other government and donor-financed programs of relevance. Component 3B: Learning {Estimated cost US$ 0.93 million; IDA financing US$ 0.93 million} 51. This subcomponent aims to promote learning about and facilitate adoption of DFGG approaches and practices within and beyond the SIs and NSAs that participate in implementation of the project. Building on results from Components 1 and 2, and drawing from relevant experience elsewhere, the subcomponent seeks to support the broader, gradual, and necessarily longer-term process of governance reform in Cambodia. It will promote greater familiarity with and understanding of concepts, tools, challenges and concrete examples of DFGG across SIs � within and beyond those directly involved in Component 1. It will also complement Component 2 initiatives, through which partnerships between SIs and NSAs will be fomented. 52. Working in close partnership with an external Research and Training Organization (RTO), a M&E research firm, and a Learning and Communication Focus Group (LCFG),30 the MOI will be carrying out the following activities under this subcomponent:

a. Promoting cross-fertilization and synergy: The IAs will be �learning by doing� and, despite their very diverse mandates and programs, are likely to have valuable experience to share that can reinforce DFGG practices across different sectors. Tapping this experience and, in the process, identifying opportunities for cooperation across IAs, and between IAs and NSAs, will be pursued by the MOI by adopting a proactive posture of dialogue with the IAs, identifying good practices, complementarities, and opportunities for experimentation across IAs. These opportunities for synergy will be managed through the AWP preparation process, and by suitably adapting the agenda of the PMT meetings.

b. Awareness Raising and Capacity Building Program: The MOI will promote learning about and adoption of DFGG approaches and practices, through seminars, workshops, and study tours organized through the RTO and other partners, targeting the broader public but with a special focus on potential DFGG champions in the state sector. The Awareness Raising and Capacity Building Program will be comprised, at a minimum, of the following activities: an Annual Good Governance Forum, combined with the proposed NSA Forum (under Component 2), open to a broad range of SIs and NSAs, built around the experience and results of Components 1 and 2, and other cases within Cambodia and abroad; seminars and workshops, focused on specific themes to be explored in greater depth, structured around sectors, levels of government, cross-cutting issues or tools (at least two per year); study tours, targeting potential champions and leaders from the four SIs and from the NSA sector (four during the project�s timeframe, initially combined with PECSA events). The details of first two years of the Awareness Raising and Capacity Building Program will be developed during the pre-implementation period by the PCO in collaboration with the RTO and LCFG based on

30 See Annex 6 for description.

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a �training needs assessment� of the different IAs.31Other modalities of learning and more events can be undertaken, depending on the implementation arrangements that are put in place and results of the initial implementation period (see Annex 6).

c. Communications Program: In support of the above and building on its results, a Communications Program will aim to enhance the visibility of the project, generate interest and support for its programs, track perception of their impact, share results and experience, and disseminate information on other similar initiatives. While directed at diverse segments, it will especially seek to identify and engage the next generation of DFGG champions. The Communications Program will use a variety of tools including: mass media stories and spots; printed material; targeted campaigns; and a web portal. 32

d. Studies Program: To support content development for the above programs and facilitate the promotion of partnerships where relevant, a program of action-oriented studies is proposed, covering the following types of activities: assessments of interest in DFGG approaches (at start of implementation, before the Mid-Term Review (MTR), and at the end of the project); monitoring and evaluation of project implementation; identifying and analyzing relevant lessons ; and other specific studies as needed, e.g., case studies, thematic papers, and other training and dissemination materials suggested through the M&E activities or identified in the AWP process.

53. Component 3B�s impact depends significantly on the broader enabling environment in Cambodia and on the MOI�s mandate, leverage and coordination capacity across the broader array of SIs. Changes therein can greatly affect how the subcomponent is implemented, especially in the outer years. Two important features in the subcomponent�s design will be to ensure a solid M&E activity that closely tracks demand for and effectiveness of programs; and flexibility in the design so that it can adapt to evolving circumstances. The MTR for this subcomponent will merit special attention in order to evaluate strategies, plans, programs and activities. The MTR will also assess the use of the DFGG website and the demand for DFGG-related material and, based on this, will consider the establishment of a permanent �Governance Resource and Learning Center� at the MOI, as well as the demand for expanding DFGG initiatives beyond the project in the medium-term. E. Summary 54. The scope of the project�s components moves from specific to general � while the first component�s focus is on four specific (state) institutions and their programs, the second component broadens the focus by working with a larger set of (non-state) institutions and programs who will both work around the four specific SIs and also on a wider set of issues within the sectoral themes of the project. The third component is the widest in scope, since this will not just coordinate and learn from the activities of the partner state and non-state institutions, but also attempt to extend the impact of the project to other institutions and reformers.

31 It is expected that the work of designing this program (as well as the Communications and Studies Programs) will initiate during the pre-implementation period but may not be able to conclude by effectiveness, due to the procurement process that needs to be followed, which may take several months. 32 See Annex 12 for a summary of the proposed Communication Strategy for the project.

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55. Thus, the project�s strategy can be seen as both deepening (in the four SIs) and broadening (through the non-state institutions, supported by Component 2, and a �ripple effect�, promoted by Component 3) demand-side approaches. Through such a strategy, the project is in a modest way attempting to enhance DFGG in Cambodia through support to certain state and non-state institutions engaged in priority areas of reform. Figure 2 below provides a summary of the project�s key elements.

Figure A4.2: Summary of the Project�s Main Elements

Support to State Institutions

Support to Non-State Institutions

Coordination and Learning

Component-1

Component-2

Component-3

1A. AC

1D. RNK 1C. OWSO-DO

1B. MONASRI

2B. Thematic Grants

2A. Partnership Grants

Decentralization and Citizens� Partnerships for Better Governance

Natural Resource Management

Private Sector Development

Public Financial Management

For work with 4 State Institutions

3A. Coordinating Project Implementation 3B. Learning

2C. Capacity Building & Learning

Ripple Effect

For work on 4 priority reform areas or themes

Priority Reform Areas

(from CAS Governance

Pillar)

PECSA

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Attachment 1 to Annex 4: Description of Program for Enhancing Capacity for Social Accountability (PECSA)

1. Recognizing that the tools and approaches that have proved most effective in social accountability are mostly very new in Cambodia and that NSA themselves ask for help to enhance their capacities and adapt tools from elsewhere to the Cambodian context, the Bank has designed the Program to Enhance Capacity in Social Accountability (PECSA). PECSA is a 2.5 year capacity building program is designed to enhance the ability and confidence of non-state actors in Cambodia to undertake social accountability activities, particularly relating to the four sector themes of the CAS Governance Pillar. This program, which has been warmly endorsed by the Deputy Prime Minister, was formally launched at a National Event on December 3 in Phnom Penh. PECSA is a Bank- implemented program, with a dedicated PECSA Coordination Unit housed within the Bank�s Phnom Penh office. The program has been financed by a LICUS trust fund grant and has been designed in close consultation with key stakeholders including local, national and international CSOs, government and donors.33 2. PECSA will precede DFGG project implementation by more than a year. This pre-implementation capacity building will lay the groundwork so that non-state actors are better prepared to use the DFGG project resources effectively once it is approved for implementation. However, the capacity building undertaken by the PECSA will not only benefit the DFGG project, as it is envisaged that civil society will use this capacity to engage with other institutions, reform areas and themes as well, thus contributing to a broader ripple effect. 3. PECSA will undertake several forms of capacity building for NSAs. One would be training and mentoring by leading global social accountability institutions. Another would be exchange visits to learn from other social accountability experiences in the Asia region, and scholarships for further learning. PECSA will run special programs relevant to the DFGG sector themes (such as training for journalists, commune council members and labor unions). Additionally, it will support internal accountability and integrity systems of NGOs since these will be critical to the later implementation of the DFGG project. 4. Apart from capacity building, PECSA will also work towards creating a mutual support network of Cambodian CSOs working on social accountability. By sharing ideas, experiences, and pursuing joint programs between state and non-state actors as well as between grassroots and national level CSOs, this networking effort is expected to create a more enabling environment for DFGG in Cambodia. Finally, PECSA will provide a limited number of grants to CSOs to pilot and demonstrate SA activities. This �competitive� grant making will help test and fine tune the mechanisms and processes for grant making which will be subsequently scaled up through Component 2 of the DFGG project (described above). 33 There were several reasons for seeking external assistance for this piece of support � (i) flexibility � external trust fund financing would allow general broad based capacity building for non-state institutions and allow the project�s direct resources to focus on programs and institutions working directly on implementation activities and partnerships with the state side counterparts , (ii) timing � as mentioned above, the DFGG project resources are not likely to flow till the end of CY2008 or beginning of CY2009, at which point it would require immediate involvement of non-state actors. Therefore, one needed a critical capacity building effort prior to project effectiveness to ensure that NSAs take adequate advantage of the opportunities offered by the project.

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Annex 5: Project Costs CAMBODIA: Demand for Good Governance Project

IDA share

Govt. share1 AusAID Other2 Total % of

Project Cost By Component and/or Activity US

$million US

$million US

$million US

$million US

$million Total

Component 1: Support to State Institutions

1A. Support to the AC 2.34 0.20 0.22 2.76 11%

1B. Support to MONASRI 2.42 0.09 2.50 10%

1C. Support to the OWSO-DO 3.53 1.23 4.76 19%

1D. Support to RNK 2.38 0.09 3.42 5.89 23%

Subtotal Component 1 10.66 1.41 3.62 0.22 15.91 63%

Component 2: Support to Non-State Institutions

2A. Partnership Grants (incl. Administration)3 1.03 1.03 4%

2B. Thematic Grants (incl. Administration) 2.96 2.96 12%

2C. Capacity Building and Learning 0.28 0.28 1% Subtotal Component 2 4.27 4.27 17%

Component 3: Coordination and Learning 2.42 0.03 2.45 10%

First Project Preparation Facility (PPF) Advance 1.10 1.10 4%

Second PPF Advance4 0.55 0.55 2%

Total Baseline Cost 19.01 1.44 3.62 0.22 24.29 96% Unallocated Funds and Contingencies5 0.99 0.99 4%

Total Project Costs 20.00 1.44 3.62 0.22 25.28 100% Total IDA Financing Required6 20.00

Notes: 1/ RGC share includes contributions for MBPI, PMG, and civil works and recurrent expenses for OWSOs. 2/ The other funding source refers to contributions from employer organizations and workers unions for the AC. 3/ The precise division of funds between partnership and thematic grant categories (i.e., 2A and 2B) may vary in practice, according to project experience and demand. 4/ Although the total value of the second PPF was US$ 0.85 million, only US$0.55 million is expected to be spent prior to project effectiveness. The remaining funds are absorbed in the project implementation budgets. 5/ Contingency costs reflect not just physical and price contingencies, but also a pool of unallocated resources to allow flexibility in adjusting the project�s design in response to opportunities and challenges as they arise during project implementation. As presented earlier in the document, such flexibility is essential for a project of this nature. Note also that due to rounding off the negotiated SDR value of the Grant, the actual US$ amount in the unallocated category will be approximately US$ 1.13 million. 6/ There are no identifiable taxes and duties, so the total IDA financing, net of taxes, is US$ 20.00 million.

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Annex 6: Implementation Arrangements CAMBODIA: Demand for Good Governance Project

A. Overall Institutional Arrangements:

1. Separate Implementing Agency (IA) for each Element of Project: The project has been designed in a modular fashion � that is, each subcomponent under the State Institutions Component and Components 2 and 3 will have separate IAs. This has several advantages. First, it allows maximum independence and flexibility fo r each IA to execute their specific component or subcomponent. Secondly, it reduces the layers of fund flows and with it transaction costs, delays, and potential leakages, albeit requiring an increase in parallel arrangements. Thirdly, a modular design diversifies risks by allowing other parts of the project to move forward even if there are delays or problems with a particular subcomponent. In the worst case, specific subcomponents can be dropped (totally or partly, and possibly replaced with other activities or a corresponding shift in project funds to other subcomponents), without compromising the effectiveness of the rest of the project. 2. There will thus be a total of six IAs :

(a) Component 1A: Arbitration Council Foundation (ACF)

(b) Component 1B: Ministry of National Assembly Senate Relations and Inspection (MONASRI)

(c) Component 1C: Secretariat of the National Committee for Management of

De-concentration and Decentralization Reform (NCDDS)1

(d) Component 1D: Radio National Kampuchea (RNK)

(e) Component 2A-C: The Asia Foundation (TAF)

(f) Component 3A-B: Ministry of Interior (MOI) 3. The MOI is also the Executing Agency (EA) for the project: While a modular strategy has the above advantages, it also means that there is an enhanced need for coordination and cross- learning so as to ensure adherence to overall project development objectives, facilitate interactions with the Bank, create a synergy between the different elements of the project, and ensure that its impact goes beyond the sum of its parts. The MOI, which has coordinated the preparation of the project, has therefore been appointed as the overall Executing Agency (EA) for the project, responsible for overseeing and facilitating its implementation. The MOI is well placed to play this coordination role. Firstly, it has been mandated to lead implementation of the Government�s D&D policy, which seeks to strengthen delivery of public services and administration at the local level and houses the Secretariat of the National Committee for Management of D&D Reform (NCDD). In this capacity it already facilitates inter-ministerial 1 This is housed in the General Department of Local Administration in the MOI as described later.

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Ministry of Interior (MOI) Executing Agency

Component 1: Support to State Institutions

Component 2: Support to Non-state Institutions

Project Coordinator (MOI)

1A. ACF

1D. RNK

1C. NCDDS/

MOI

1B. MONASRI

2 A-C. TAF

Grant Making Committee

(GMC)

Project Coordination Group (PCG) and

Project Management Team (PMT) Component 3A: Coordination of Project Implementation (MOI)

Project Coordination Office (PCO)

Component 3B: Learning MOI/PCO in collaboration

with independent RTO and

coordination on D&D issues. Secondly, it is the Government�s focal point for NGO relations, handles a national registry of NGOs, and is mandated to prepare the draft NGO Law. Thirdly, it has recently taken on responsibilities for implementing a range of local development investments, working in partnerships with several donors. Finally, the MOI has key reform champions at the highest political and technical levels (including the Senior Minister of the MOI, who is also the ranking Deputy Prime Minister), who are committed to supporting DFGG programs in the country. As the overall EA, the MOI�s core responsibility will be to implement Component 3 of the project (Coordination and Learning) as described below. 2 4. A summary of the overall institutional structure for the project is provided in Figure 1 below and the specific institutional and implementation arrangements are described thereafter.

Figure A6.1: Overall Institutional Structure of the DFGG Project

2 The MOI is thus both an IA and the EA. For simplicity, however, it has been referred to only as the EA in the rest of the document.

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B. Specific Institutional Arrangements for Each Component:

B.1. Component 1 - Support to State Institutions

5. Key Principles Applied: The key principles used for setting up the institutional arrangements for the state institution component are as follows:

(a) Each state institution (SI) is treated as an IA - As part of the modular design and as shown in Figure 1 above, each of the four SIs being supported under Component 1 is being treated as a separate IA under the project.

(b) Component 2 will be implemented by a non-state actor (NSA) � In order to ensure credibility and independence of the non-state window of the project, the MOI agreed to have an NSA implement this component.

(c) Existing structures are being used � Given the project�s focus on strengthening institutions, the project will be implemented using, as far as possible, existing structures of the IAs, rather than setting up parallel or new arrangements. This approach will ensure greater sustainability of the programs. In three cases (RNK, MONASRI and AC), these structures have been tried and tested through existing programs.

(d) Extensive capacity building for existing staff will be provided - As far as possible, implementation will be handled by existing agency staff. To address current capacity constraints, each subcomponent incorporates plans and resources to build staff capacity through training, mentoring, and learning-by-doing. The pre- implementation period of the project will also be used to train staff, prepare management systems and fine-tune institutional arrangements.

(e) A performance-based incentive system for project staff is being set up � The quality of implementation of the state institution subcomponents will depend heavily on the performance of their staff. Therefore, a merit-based pay initiative (MBPI) is being set up to provide performance incentives for strategic management positions. This is modeled on the system that is being used in the Ministry of Economy and Finance (MEF) as part of the Public Financial Management and Accountability Project. In addition, the project will be one of the first donor projects to support the PMG system of salary incentives, which will apply to sub-national and operational staff.

(f) Technical assistance is included as needed - Where required, new staff from other ministries or from the market will be brought in on a contractual basis to support implementation. Teams will be further complemented with national and international consultants for technical assistance (TA).

(g) Multi-stakeholder Advisory Committees will guide implementation � These advisory committees were set up to guide the preparation of each state subcomponent. They will continue to provide strategic feedback and oversight during implementation.

(h) Partnership with non-state actors (NSAs) is being encouraged - The implementation arrangements of the SIs also include an emphasis on partnership with NSAs wherever appropriate. Each institution has developed a partnership plan as part of their Project Proposal. In addition, the partnership grants under Component 2 will help support implementation of their respective subcomponents. (i) Independent evaluation and cross-learning are also emphasized � Finally, the monitoring and evaluation (M&E) systems embedded in the institutional structures for each IA have drawn in third-party or independent evaluation and feedback

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elements. An emphasis on learning across IAs has also been placed so that each agency can learn from others and use this to address capacity constraints.

6. Drawing on these principles, the specific institutional structures in each subcomponent of Component 1 are described in more detail below. Figures summarizing the arrangements for each subcomponent are provided at the end of this annex. Institutional Arrangements for Component 1A � Support to the AC

7. Current Structure and Capacity: The current structure for supporting the AC involves different actors. The Arbitration Council itself is composed of 30 part-time arbitrators, who are nominated by unions, employer organizations and the Ministry of Labor and Vocational Training (MOLVT). Technical and managerial support to the AC is provided through the Arbitration Council Foundation (ACF), an NGO created in 2004 with assistance from the ILO for precisely this function. Clerical and registry tasks for the AC are handled by the Secretariat of the Arbitration Council (SAC), which is housed in the MOLVT. As the entry point of the labor dispute resolution process, the MOLVT attempts to conciliate differences between parties and, where this does not occur, passes on cases to the AC via the SAC. Although the AC has been quite successful in resolving labor disputes, it has had difficulty in expanding its reach beyond the garment sector and the Phnom Penh area, largely due to staffing constraints. 8. Subcomponent Implementation Arrangements: The subcomponent will be implemented through the existing operational structure of the AC, with the ACF as the IA in charge. The ACF currently consists of 18 full- time staff governed by a Board of Directors. The day-to-day management is handled by an Executive Director and a Deputy Executive Director, who report to the Board. The ACF has three departments: (a) the Legal Support Team, (b) the Communications and Training Team, and (c) the Finance and Administration Team. Each of these is headed by a Manager, who reports to the Executive Director. The Executive Director will be designated the Project Director for the subcomponent and, with the support of the Deputy Executive Director and Managers of the three departments of the ACF, will form the subcomponent�s Management Team, which will meet at least once every month to review progress in project implementation. The three departmental units will continue their current roles and will be supplemented with three to five additional staff to cover the expanded functions of procurement, legal advice and general administration, as well as the scale-up of the AC�s activities, foreseen in the subcomponent �s work program. Staffing of the SAC will also be enhanced in anticipation of an increased work load of cases coming to the AC. 9. The subcomponent will be implemented in close coordination with the MOLVT through a Project Collaboration Committee that will be set up with membership of the AC, ACF, and MOLVT. This committee will build on the Technical Working Group that handled project preparation. In addition, the multi-stakeholder technical advisory group that guided preparation of the AC proposal will evolve into a Stakeholder Advisory Group. This will consist of members from labor unions, employer organizations, ILO, civil society, as well as the MOLVT and will provide strategic advice and oversight during implementation. (See Figure 2 for a summary of the institutional arrangements.)

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Institutional Arrangements for Component 1B � Support to MONASRI

10. Current Structure and Capacity: MONASRI was established in 1999 and is led by a Senior Minister assisted by 5 Secretaries of State and 5 Under Secretaries of State. It is comprised of three General Departments, each managed by a Director General; a Financial Inspection Entity, which is supervised directly by the MEF; and a Department of Internal Audit, which is under the direct control of the Senior Minister. Each General Department has several sub-departments, which manage different aspects of the Ministry�s core functions including law dissemination (LD), complaints handing (CH), and inspection. At the sub-national level, MONASRI has 24 Provincial/Municipal Departments. These consist of three offices each in charge of inspection, general administration, and relations of the National Assembly and Senate with local authorities, respectively. Despite this elaborate structure and a high number of staff on record, MONASRI�s technical capacity for undertaking its core functions of LD and CH is limited. Further, the Ministry does not have prior experience in implementing Bank projects, although it is familiar with Bank policies and operations through its inspection role. 11. Subcomponent Implementation Arrangements: Given the above capacity constraints, MONASRI will enhance and improve its human, physical and financial resources in order to implement their subcomponent effectively and transparently. The Ministry will use existing structures for implementation, but will reorganize some of these functions. No new offices will be created but additional staff will be needed particularly for the LD function. Selection and management of staff will be done following the MBPI and PMG prescribed processes and rules. The Senior Minister will provide managerial oversight to the Project, with the assistance of the Secretary of State, who will serve as Project Director. A full- time Project Manager (Deputy General Director) will be responsible for daily management of the Project. The current Technical Advisory Committee (TAC) will be reconstituted and continue during the implementation phase. Five of the 12 departments of MONASRI will be directly involved in the Project. With the Project Director and Manager, a total of 37 staff will be involved in implementation at the National level. Project activities at the provincial level will be carried out under the direction of the MONASRI Provincial Departments, where an estimated 16 staff will be involved in the first year and 32 each year thereafter. The technical design and delivery of the land law dissemination campaigns will be done with the help of various intermediaries (such as journalists, communal leaders, CSOs, etc.) and through outsourcing to media firms as part of the new �partnership� approach being adopted in the MONASRI subcomponent. Further, given the limited capacity in MONASRI at present, provision has been made for an extensive learning program during the pre-implementation phase itself. An international technical advisor has also been budgeted for during this period to help with the preparation and implementation of an LD strategy and manual for MONASRI for the first two years of project implementation. (See Figure 3 for a summary). Institutional Arrangements for Component 1C � Support to the OWSO and DO

12. Current Management Structure and Capacity: The two OWSO and DO offices that have been piloted in the urban capital districts of Siem Reap and Battambang provinces were set up with the assistance of the EU-funded Asia Urbs Project. A consortium of six European and Cambodian agencies under the leadership of the Konrad Adenauer Foundation (KAF) managed the entire implementation. Although efficient and successful, this institutional arrangement did not establish a sustainable basis for scaling up these offices to other provinces, particularly on a

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national scale. Since project activities were undertaken by an independent executing agency, there was no significant capacity built at the national level in the MOI to create and manage these offices. The significant international technical assistance (TA) costs also added to the overall budget for the pilots. Finally, there was a lack of coordination with other D&D initiatives of the government, which are currently managed by the NCDD that is headed by the Deputy Prime Minister and Senior Minister for the MOI. 13. Subcomponent Implementation Arrangements: In view of these limitations with the current structure, the implementation of the OWSO-DO subcomponent has been placed in the hands of the Secretariat of the NCDD (NCDDS) that is housed in General Directorate of Local Administration in the MOI. The operations arm of the subcomponent that deals with administrative and back-end support functions (such as contracting, procurement and accounting) will be managed at the national level by the existing Program Support Team (PST) of the NCDDS and at the provincial level by the Executive Committee (ExCom) of the Provincial Rural Development Committee (PRDC). Presently, the NCDDS/MOI, with assistance from the PST and PRDC ExCom, is implementing a US$74 million annual donor portfolio covering a total of 14 different donor projects, including Bank operations. The existing systems at both national and sub-national level are therefore well equipped to handle the implementation for the subcomponent. 14. The policy arm of the subcomponent that deals with the actual reforms and supervision of core activities will be managed at the national level. A District Support Team (DST) will be set up prior to project effectiveness within the NCDDS/MOI and will look after all district level initiatives and projects of different donors, starting with the OWSO-DO subcomponent.3 It will consist of a combination of core staff of the MOI and a set of technical consultants. Supporting the DST will be an Inter-Ministerial Technical Advisory Group consisting of the key ministries that will be delegating functions to the OWSO. Together they will directly supervise and monitor the implementation of the OWSO-DO policy reforms and will have a direct line of contact with the individual districts. At the local level, a designated staff in the PRDC ExCom will be recruited to act as the focal point for the OWSO and DO and will report to the DST. All local running expenses of the OWSO offices will be either directly serviced by the ExCom or contracted out to the OWSO and monitored by the ExCom. This process will ensure greater autonomy, accountability, and high performance standards for the OWSOs and the DO. (See Figure 4 for summary). Institutional Arrangements for Component 1D � Support to RNK

15. Current Structure and Capacity: There are currently six departments at RNK � (i) National and International News; (ii) Foreign Languages; (iii) Programming; (iv) Technical Support; (v) General Support; and (vi) FM 96.4 Within the 6 departments there are 19 offices and total staff strength of 387 on paper. However, staff capacities and motivation levels are very low

3 The DST will likely merge with the existing �District Initiative Working Group� that has been providing coordination and support to the District Initiative Programme (DIP), and the inter-commune cooperation project (ICC) funded by other donors. 4 Of these, the Foreign Languages Department no longer functions due to a breakdown of the RNK Short Wave transmitter. Also, the FM 96 Radio Station is in practice under the direct control of the Ministry of Information and does not report to RNK. This leaves only four effective departments in the organization.

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primarily on account of low salaries, lack of equipment and training. The role of international technical assistance and �twinning�, provided by Radio Australia through the AusAID-funded Cambodia Radio Development Assistance Project (CRDAP) since June 2005, has been critical in augmenting the capacity of RNK as an institution. Despite this assistance, RNK continues to have very weak capacity relative to the subcomponent activities that are proposed under the project. 16. Subcomponent Implementation Arrangements: Given the gradual decline in RNK capacity over the years, the institution is in need of a makeover not only for the new programming envisaged under the subcomponent, but also for undertaking basic corporate functions (like human resources, finance, marketing, strategic planning, and administration) that will be required for efficient implementation. In view of this, the capacity building needs of RNK were assessed with the help of AusAID funded consultants (from Radio Australia) and a comprehensive multi-year TA program has been formulated and will be funded through parallel AusAID financing of about US$ 3.41 million. This TA program will expand the scope of current TA that Radio Australia is providing for the talk back program in RNK.5 17. Apart from this international TA, RNK will use a combination of civil servants, contractual staff and trainees to meet its skills needs during the subcomponent implementation period. All staffing (regular and contractual) for the subcomponent will be done on an advertisement and competitive selection basis so as to ensure high skill standards. Just over a quarter of the current staff of RNK will be involved in implementation. The existing organisational structure of RNK will also be modified, but radical changes will be avoided as these will be difficult to implement. The proposed structure would utilise existing offices, integrate some areas, and create new offices. The multi-stakeholder Advisory Committee that currently exists for AusAID�s CRDAP program and consists of both state and non-state actors will be continued under the project and will transition into a �Board of Directors� for RNK by the project�s end. Offices not directly relevant to the DFGG project (e.g., FM 96 and the Foreign Languages Departments) will remain under RNK�s management with support from the government, should they continue to function. (See Figure 5 for a diagram of the proposed new organizational chart for RNK, designed to facilitate implementation of the subcomponent). B.2. Component 2 - Support to Non-State Institutions

18. Selection of The Asia Foundation (TAF) as IA: As mentioned earlier, the RGC agreed to appoint a NSA with adequate capacity and experience to implement this Component in order to ensure its independence. Through an identification process in which many alternatives were considered, the MOI narrowed down the options to three international NGOs with adequate capacity and experience of both governance issues and complex grant-making in Cambodia as possible candidates for this role. The three NGOs were asked to submit proposals on how they would implement the component and were all subsequently interviewed. From this process MOI chose The Asia Foundation (TAF) to be the IA to whom it will provide a grant to implement Component 2. Subsequently, the MEF agreed with and confirmed the appointment of TAF.

5 The project proposal prepared by RNK describes the TA program as well and will therefore be appraised jointly by the Bank and AusAID.

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19. TAF Capacity and Experience: TAF has over 50 years experience working across Asia, including Cambodia. It already manages grant-making and other programs that support capacity building of civil society and the business community in Cambodia including more than 50 projects in FY 2006/7 ranging in size from US$3,000 to US$700,000. It has widespread experience of sub-grant management and civil society capacity building throughout Asia and a highly professional headquarters team supporting these operations. It has already administered over 700 grants to CSOs in Cambodia. Further, TAF is also the National Facilitator for the �Civil Society and Pro-Poor Markets� component of the multi-donor Natural Resources and Livelihoods Program funded by DFID and DANIDA, which has somewhat similar objectives to this Component. For these reasons, TAF is well-qualified to implement Component 2. 20. Proposed TAF Management Arrangements for Component : TAF will establish a Secretariat in its Phnom Penh office, which will be responsible for the Component alongside its other programs in Cambodia. This Secretariat will report to the Country Representative of TAF in Cambodia and will consist of a core team of full time staff, including a senior Project Director. The Project Director will be the main contact person for the project and will provide guidance and technical expertise to the overall Component and coordinate with the MOI and the Bank. Additional specialists will be brought in when necessary, such as for monitoring, eva luation and communication. The Component would of course also receive support from existing TAF units, in particular: the Grants and Finance Team (Phnom Penh), the Training and Capacity Building Team (Phnom Penh), and the Civil Society Team (San Francisco). In implementing this component, TAF will pre-finance project related expenditures out of its own resources and will apply reimbursement through the MEF. Implementation Arrangements for Grant Making under Component 2

21. The principal implementation arrangement (for subcomponents 2A and 2B) is a competitive grant mechanism that responds to proposals from non-state actors. As described in the project description (Annex 4), two mechanisms for making grants will be used under the component � (a) a Small Grants (SG) Program, and (b) a grants competition modeled on the Bank�s �Development Marketplace� (DM). The process for selection of grantees that was summarized in Annex 4 is presented schematically in Figure-6 at the end of this annex. The implementation responsibilities, steps, and principles adopted under the grant making process are described below. 22. Screening by TAF. As the IA for the component, TAF�s main role in managing the grant making process (beyond administrative and organizational duties and communications) will be to review and appraise grant proposals at different stages of the application process. At entry, proposals will be screened by the IA to establish that they meet the eligibility criteria.6 Those

6 The tentative eligibility criteria to be applied to all applications (DM and SG) are that the proposal should: (i) relate to a DFGG focus area; (ii) present a logical implementation strategy; (iii) possess sound administration and financial systems; (iv) have endorsement by a recognized NSA (for small grantees); and (v) support DFGG project �principles on constructive engagement� (see footnote 7 below). Additional eligibility criteria to be applied to DM applicants are that they must: (a) demonstrate commitment to fruitful dialogue with the RGC; (b) show ability to operate in two or more provinces (for large grantees); and (c) entail a partnership with a Component 1 state institution (in the case of partnership grants). These criteria are still to be finalized through consultation with the MOI, Bank, and other stakeholders.

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applying for small grants (under $15,000) would use a standard application form (in English or Khmer). Others would first submit Concept Notes (CNs) � again, using a standard and widely distributed template, in English or Khmer. Those seeking Partnership Grants (PGs) would need to demonstrate that their proposal relates to one of the activities of Component 1 and enjoys the support of the relevant SIs. All applicants will also be asked to agree to a set of �Principles for Constructive Engagement.�7 All but applicants for the small grants would also need to demonstrate prior operational experience, including sound administrative and financial systems. Applicants for the largest grants would need to demonstrate prior experience in building partnerships and/or coalitions. Beyond these factors, in choosing between applications, a set of transparent rating criteria will be established jointly by TAF, MOI and the Bank.8 TAF will prepare brief appraisal reports of all proposals and CNs for review by the Grant-Making Committee based on the eligibility and rating criteria. 23. Grant-Making Committee: A Grant-Making Committee (GMC) � comprising senior representatives of civil society, the private sector, government and other stakeholders � will be established to decide on the awarding of grants under the component. The GMC will be independent from government � as the Deputy Prime Minister (DPM) has affirmed - to ensure the credibility and neutrality of this Component in the eyes of non-state actors. The DPM will determine the two GMC members from government.9 All other GMC members will be recommended by a Selection Committee (comprising representatives of MOI, the Bank, TAF and the principal NGO umbrella organization in Cambodia) and will be approved by the DPM and the Bank. GMC members must be prepared to sign a code of conduct (drafted by TAF, in consultation with government and civil society) that ensures probity and avoids potential conflicts of interest. The GMC, which will meet every quarter, is also intended to serve for the grant-making component of PECSA (see below). In advance of GMC meetings, TAF will identify, with the GMC Chair, one or two appropriate reviewers within the Committee to lead the discussion of each proposal or CN. All proposals, CNs, and appraisals will be shared with all GMC members prior to each meeting. The GMC will decide which small grants to award or no t, and which proposers should be invited to submit full proposals, based on the CN and using the established rating criteria.10 24. DM�like Competition: All those who submit full proposals (i.e., all those whose concept notes were decided by the GMC to have adequate merit) will also be invited to prepare a display on their proposal to be mounted at the next DM-like competition (which will be renamed in Khmer to give it greater local ownership, understanding, and visibility). Two DM-like competitions will be he ld during the project - one in 2009 and one in 2011.11 These would be high-profile learning events and occasions to catalyze public debate on matters of governance apart from being forums for grantees to compete. Hence, although the central area of the event (which would be akin to a trade fair) would comprise stalls displaying the competing proposals, 7 This would be prepared by TAF in consultation with leading non-state actors and would enumerate elements of constructive engagement between NSAs and government. 8 This list of rating criteria will be finalized prior to project negotiations. 9 An additional representative from MEF may also be considered. 10 For full proposals that are particularly technical, a written review by a technical expert on a pre -agreed slate may be commissioned. 11 There will also be a pilot DM organized as part of the PECSA program during 2008, which will enable a road-test of this grant-making mechanism in Cambodia.

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the DM-like competition will also include governance-related displays of other organizations, past DM winners, small grants, or PECSA grant winners. During the DM-like competition, two or more GMC members (which comprise the panel for each proposal) will interview their designated NSA, to probe the relative merits of each proposal. 25. Award of Grants: After the close of the DM, the GMC will convene to consider all proposals. The panel for each proposal will give their recommendations, but the GMC will also consider: views of other GMC members, the appraisal by TAF, advice from any outside reviewer used, the views of the visiting public and, in the case of Partnership Grant proposals, the comments of the relevant SI. The GMC will then decide which grants should be awarded. The GMC decisions will be announced publicly at a grant-giving ceremony the day after the DM, designed to celebrate the winning proposals. These awards will be conditional, however, and will only be confirmed once TAF has conducted a fiduciary review to assure itself that the potential grantee is capable of managing funds for the agreed-upon proposal. Implementation Arrangements for Capacity Building and Monitoring in Component 2

26. The smaller Capacity Building and Learning subcomponent (2C) comprises monitoring and evaluation of the grants, dissemination of experience, providing support and guidance to grantees and broader activities to enhance the capacity of NSAs in the governance field. This will be fully managed by the proposed Secretariat in TAF which will monitor the activities of the grantees and assess their impact in three ways: (a) pre-grant monitoring; (b) random spot-checking by an independent NSA based on a checklist of project criteria; and (c) review of quarterly financial and narrative reports. TAF will also appoint a Cambodian think-tank to conduct an independent project assessment by measuring changes in citizen perception on governance issues using a survey approach and undertaking detailed case-studies on select social accountability mechanisms piloted by grantees. 27. Link with PECSA12: For the capacity building function, TAF will provide training, coaching and other support to grantees (and for those whose CNs have been approved and who are developing full proposals) to ensure they have adequate tools, resources and guidance to manage their grants. In doing so, it will ensure there are strong links with the PECSA program. Before the end of 2009, TAF, the Bank and MOI will consider whether Component 2 should be adjusted in order to continue some or all of the PECSA services, in which case a budget reallocation from grants to capacity building would be agreed. Other potential donors might also be invited to contribute to, and perhaps even house, such a capacity building program.

12 As described earlier in the PAD, PECSA (Program to Enhance Capacity in Social Accountability) is a two-year Bank-implemented program that aims to build capacity of NSAs in Cambodia in the area of social accountability. It has a dedicated PECSA Coordination Unit housed within the Bank�s Phnom Penh office. See Attachment 1 to Annex 4 for a more detailed description.

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B.3. Component 3 � Coordination and Learning

28. MOI capacity and challenges: As mentioned earlier, given its role as the overall EA for the project, the MOI will also act as the IA for Component 3, working in straight cooperation with the other IAs. The MOI has increasing capacity and experience in managing development projects through its role in implementing the D&D policy of the RGC. However, this capacity is concentrated in the General Department of Local Administration, which acts as the Secretariat of the NCDD. Further, the increasing load of donor projects being implemented by the Ministry is placing several challenges on its capacity. Prominent among these are: its very broad and diverse mandate; an organizational structure which may change in response to a fast-evolving context; the articulation of operational strategies and plans; and the availability of resources (e.g., permanent staff). Of specific relevance to the DFGG project is the fact that MOI is being called upon to work with multiple ministries and in close partnership with CSOs in its role as the EA. This cross-institutional coordination and broad dissemination/learning role, critical to the success of the project, is both a challenge and an opportunity - one on which MOI can draw lessons learned from its experience in implementing other projects supported by the World Bank, the Asian Development Bank, and various bilateral agencies. Implementation Arrangements for Component 3 29. During project preparation, different implementation arrangements were considered for this component based on the design principles for the component that were outlined in Annex 4 (see para 47). It was agreed that while the MOI would be responsible for oversight and general management of both subcomponents in Component 3, it would focus predominantly on delivery (i.e., day-to-day management) of Subcomponent 3A and outsource responsibility for the day-to-day management of Subcomponent 3B to a firm or research and training organization combining international and local expertise. In addition, it would contract the services of a reputable research firm to assist it in the M&E tasks of the PCO for Component 3 as well as for consolidation of M&E findings of the whole project. As a result of these discussions, the following organizational structure for Component 3 has been agreed: 30. Project Coordinator: An undersecretary of state level (or above) official will be appointed to supervise overall project implementation, oversee the work of the Project Coordination Office, and chair the Project Coordination Group (as described below). Higher- level oversight will be provided by the Deputy Prime Minister/Minister of Interior. 31. Project Coordination Office (PCO): It is envisaged that a PCO will be established within the MOI. The Project Coordinator will head the PCO, whose core staff will consist of a full-time Project Director, Project Manager, and a team of technical staff, drawn from the MOI or other government agencies, with skills and experience in project management, and more specifically in the areas of procurement, financial management, M&E, etc. The PCO will have three small units that will comprise government and contract staff, supported by technical advisers (TA):

(a) Project Coordination Unit: Functions will include oversight and coordination in planning and budgeting, financial management, internal audit, procurement and asset management, MBPI, PMG, and management information systems.

(b) Learning and Communication Unit: Functions will include guiding and overseeing the preparation and delivery of the annual Awareness Raising and Capacity Building,

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Communication and Studies Programs, by the appointed RTO. The PCO will monitor implementation of the agreed AWPs and will coordinate training and learning activities across the five IAs and the RTO.

(c) Monitoring and Evaluation Unit: Assisted by the M&E research firm, the functions of this unit will include managing and supporting the M&E function across all components, developing forms/report formats to collect information on progress and performance, assisting in the development and testing tools/methods for evaluation, training M&E staff from the IAs, compiling and aggregating information from Components 1 and 2, and reporting regularly to the RGC and the Bank.

32. The PCO will be responsible for overseeing the daily management of the project, tracking progress, problem solving, ensuring timely reporting, and promoting adherence to best management practices on the part of all IAs. It will serve as the secretariat for the Project Coordination Group and the Project Management Team and as the focal point of contact and dialogue with the World Bank supervision team. Planning, coordination, M&E, overall fiduciary management, and ensuring harmonization and consistency across the IAs will be its other core functions. 33. Project Coordination Group (PCG): A high- level PCG will provide oversight to the project and facilitate cooperation among IAs. It will be comprised of the Project Directors of the four SI subcomponents and TAF; four representatives of civil society drawn from the Advisory Committees of each SI; one senior representative each from the MEF, the Council for Administrative Reform (CAR), the Ministry of Planning, and the Cambodia Development Council. The MOI Project Coordinator will serve as chairperson of the PCG, while the DFGG Project Director will serve as the Secretary of the PCG. The Deputy Project Director and the thematic Coordinators will participate in meetings, supporting discussions and assisting in the work of the PCG, but will not be formal members. The PECSA Coordinator will also participate as an observer. 34. The PCG�s core responsibility will be to provide strategic, high- level oversight to the DFGG project and ensure overall implementation progress, based on systematic M&E information produced by the IAs and consolidated by the MOI�s PCO. It will provide the authority for key project implementation arrangements (e.g., MBPI, PMG, contracting arrangements, selection of IAs and partners) and review, advise on, and approve annual work plans and budgets proposed by the IAs and consolidated by the PCO. The PCG is expected to identify serious coordination and management issues that transcend the mandate of any one IA, their respective authorities, and the PMT. It will be responsible for advising on and tracking learning and partnerships across SIs and NSAs, and will also follow and ensure appropriate linkages with supply-side initiatives undertaken by the government in sectors not directly involved in the DFGG project. The PCG is meant to meet twice yearly or as required by the needs of project implementation. Special meetings or sessions of the PCG may be requested by the MOI or the IAs to address specific areas of interest. Other participants may be invited to attend as appropriate to ensure constructive discussion and resolution of the issues at hand. 35. Project Management Team (PMT): The PMT will be a small sub-group of the PCG, comprised of the DFGG Project Director, as chairperson, and the Project Directors of the IAs, although at its discretion it may invite other PCO TA and key staff, and other government and CSO representatives to participate in its activities. The PMT is expected to meet monthly to provide the

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necessary regular coordination, supervision and monitoring of project implementation among the key day-to-day managers of all three components. It will focus on short-term and overall project progress and performance, project finances, issues/problems arising during implementation and the necessary actions to address them. The agenda of the PMT meetings will be drafted in consultation with M&E officers at the PCO, who will help identify issues associated with progress and performance. The PMT will identify and agree on actions to address emerging issues/problems and, where necessary, will refer major issues of inter-agency cooperation and good governance policy and strategy to the PCG. It will subsequently provide follow-up with respect to pending issues. The PCO will also act as the secretariat to the PMT, propose meeting agendas, recording and distributing minutes, and facilitating follow-up on agreed actions. 36. Research and Training Organization (RTO): Following the discussions on institutional arrangements at appraisal, it was agreed that the MOI will contract a local Research and Training Organization (RTO) that will provide advisory and implementation support for Component 3B, under the overall guidance of the PCO. The RTO is expected to have strong expertise in public administration/public policy issues, and be capable of mobilizing the diverse set of substantive skills required to support implementation of Component 3B. Its functions will include: (i) preparing the Annual Work Plans for the three programs under Component 3B; (ii) designing, organizing and facilitating training events, study tours, seminars and workshops on key governance issues so as to promote a broader network of DFGG stakeholders; (iii) undertaking specific research tasks, including identification, documentation and dissemination of lessons learned through the project and relevant experience elsewhere; (iv) assisting the MOI in supporting the PCG and the Learning and Communications Focus Group; and (v) identification and dissemination of lessons generated from the project. The hiring of an external RTO can bring to MOI- led programs the experience and credibility of an experienced non-state partner to promote learning within the SIs and the CSO community more broadly. Participation in the project will build, in turn, the capacity of the RTO to offer similar services to the Government in the future. Final decisions on implementation of Component 3B will, however, remain with the PCO so as to ensure high- level government ownership of the DFGG project. 37. Learning and Communication Focus Group (LCFG): The LCFG will be created during the pre-implementation period and will remain active throughout the life of the project to provide inputs and guidance to the design and implementation of Component 3B on Learning and Communication. The core of the LCFG will be drawn from the IAs, including those implementing Component 2 (TAF) and Subcomponent 3B (MOI). The LCFG members from the IAs will be appointed by the respective Project Director from among the agency personnel responsible for M&E, learning and communication programs. There will be a limit of two persons per institution. In addition to the IA core group, a small number of selected development practitioners will be invited by the MOI to participate in the LCFG in order to facilitate access to external experience on good governance approaches, and to provide guidance to the implementation of Subcomponent 3B. The LCFG will discuss and help to prioritize the themes and activities which would best meet the learning needs of the IAs, and of the overall project, based on the Training Needs Assessment to be carried out during the pre- implementation stage and updated as needed thereafter. It will periodically review the activities under each component, identifying those with the potential to provide lessons and contribute to a wider knowledge of DFGG concepts and approaches in Cambodia, within and beyond the IAs. It will also help to identify examples of other initiatives, tools and approaches of

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relevance, drawing on experience from Cambodia and abroad. As partnership-based learning proceeds over the life of the project, the LCFG will help to assess the results and will advise on appropriate target groups and modalities to enhance the learning outcomes of the project. It will thus contribute to the design and implementation of the three Subcomponent 3B programs.

C. Overall Reporting Arrangements:

C.1 Project Level Reports

38. Project Implementation Manual: As the EA, the MOI will develop a comprehensive Project Implementation Manual (PIM). The PIM will build on the specific Project Proposals developed by each of the IAs, including the overall proposal that is being prepared by the MOI for the overall project. The PIM will contain the Good Governance Framework (GGF) for the overall project and Good Governance Plans (GGPs) for individual IAs which will constitute a legal covenant and will have to be adhered to under the project. It will also include information on different aspects of project implementation such as roles and responsibilities of the different IAs, budgets, procurement, reporting and auditing requirements, etc. The PIM will also include the overall four-year work programs contained in each IA�s Project Proposal, including the component or subcomponent budget and detailed timeline of project activities that will be undertaken by each IA and for the project overall, against which progress will be monitored during implementation. 39. Mid-Term Progress Report: The Mid-Term Progress Report (MTPR) will be prepared by the PCO, in collaboration with the IAs, at the end of the second year of project implementation (but no later than 30th June 2011). It will reflect the accumulated progress indicators and data on the agreed M&E frameworks and will form the basis for the Mid-Term Review (MTR) for the project. The MTPR will be a critical document to assess the results of the project and reflect upon whether any changes in the project design or implementation arrangements are required to ensure greater effectiveness. 40. Final Evaluation Report: The Final Evaluation Report will be prepared by the PCO, in collaboration with the individual IAs, at the end of the 4th year of project implementation (but no later than June 30th 2013). It will be based on the findings of the end-term reviews and evaluations of the project components and subcomponents, and should reflect lessons regarding project design and results that will be useful for future DFGG operations. 41. Annual Review of Project Implementation (ARPI): The discussions and analysis of the above reports will be done in the corresponding ARPI that will be organized by the PCO and PCG. As mentioned above, this will be a thorough review of each Component and subcomponent�s design and will focus on achievement of project objectives and the effectiveness of its programs with a view to solving outstanding concerns and/or modifying project design or implementation modalities as required. It will also involve external participants as appropriate to ensure inputs from sectors with relevant experience in DFGG approaches. C.2 Reporting Requirements for each IA

42. A standard reporting system is being established across all IAs to ensure consistency and facilitate easy consolidation by the PCO. The details of these will be specified in the PIM that is

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being prepared by the MOI for the project as a whole. A summary of the key reporting requirements expected of each IA is given below. 43. Annual Work Plan (AWP). Each IA will produce a detailed AWP. These plans will form the framework against which to monitor progress and performance, and evaluate outcomes. They will be carefully developed with the key stakeholders and implementing officers, and should be realistic. The AWP will comprise a summary of activities to be undertaken, and will include an implementation schedule, a resources schedule and cost schedule for the next year of project implementation. Specific teams within each IA will have primary responsibility for drafting these plans, which are to be submitted to the Bank, through the PCO, by 30th September of the previous year for which they are designed. 44. Quarterly Progress Report (QPR): The QPR should provide concise and factual information on progress and performance against plans and budgets, and present provisional results of the key indicators. Divergences from the AWP will be highlighted and briefly explained, and any emerging or recurrent issues and problems will be noted, and actions taken or recommended will be indicated. Performance indicators and milestones will be compiled and summarised. The report will also provide a summary of project expenditure in the quarter and cumulative expenditure to date (against budget). QPRs will be compiled by each IA using the staff or TA consultants that relate to finance, procurement and contract administration. QPRs will be aggregated by the PCO and submitted to the Bank, with an introductory section for the overall project. 45. Annual Progress Report (APR): Following the end of each project year, an APR will be prepared by each IA and for the project as a whole. The APR will collate and summarise the information on all performance indicators and milestones relevant to the IA. The report will also provide information on the outcome indicators described in the results framework and findings from evaluation studies for each IA. Progress of key activities against plan will be presented, including associated issues and problems, and actions and recommendations. A summary of annual expenditure against budget and the progress of procurement against the procurement plan will be included. The risk assessment matrix will be reviewed and changes to the communications and partnerships strategies described. The AWP for the upcoming year will be attached to the report of each IA. The PCO will compile the APRs of the various IAs and submit these to the Bank no later than March 30th of the subsequent year for which they are prepared. 46. Each of the above reports (AWP, QPR, and APR) will be posted on the websites of each IA to ensure full transparency and disclosure. In addition to the above, each IA will also be preparing financial and audit reports, which would be compiled for the project as a whole by the PCO. The details of these reporting requirements are provided in Annex 7.

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Figure A6.2: Institutional Arrangements for Component 1A: Support to the AC

Executive Director (Acts as Project Director)

Legal and Support Team Manager

Communications and Training Team Manager

Finance and Administration Team Manager

Deputy Executive Director (Lead for M&E)

International Legal Advisor Senior Legal Officers

Legal Officers Translator

Communications Officer Training Assistant

Finance and Admin. Officers Driver/Messenger

Housekeeper

Organizational Structure of ACF

Arbitration Council (AC) Arbitrators nominated by stakeholders. Hears cases

in 3-member panels Oversees ACF

Secretariat of Arbitration Council (SAC)

Carries out clerical and registry functions

Arbitration Council Foundation (ACF)

IA for overall subcomponent � will provide management and technical support

to AC; will do reporting to MOI and

IDA

Ministry of Labor and Vocational

Training (MOLVT)

Oversees SAC; forwards cases to AC

via SAC

Project Collaboration Committee (PCC)

Facilitates information sharing and coordinates joint activities between

MOLVT and ACF

Stakeholder Advisory Group (SAG)

Consults with and advises ACF

ACF Board of Directors

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Figure A6.4: Institutional Arrangements for Component 1C: Support to the OWSO and DO

Abbreviations: PCO = Project Coordination Office CAU = Contract Administration Unit PAU = Program Administration Unit FU = Financial Unit M&E = Monitoring and Evaluation (Unit) PLAU = Provincial Local Administration Unit TSU = Technical Support Unit PRDC = Provincial Rural Development Committee EXCOM = Executive Committee

NCDD

CAU PAU M&E

FU District Support Team

PRDC EXCOM

FU CAU PLAU TSU

Inter Ministerial Technical Advisory Group

Program Support Team

District Administration: OWSO and DO

Operations Policy

NCDD Secretariat/ Directorate of Local Administration

WB PCO

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TAF review Appraisal against set criteria +

organization assessment Reject / Consider

Small Grant proposal forms

(SGPFs)

Concept Notes (CNs) - Proposals

over $15K

Grant-Making Committee (GMC) Reviews CNs, SGPFs

& TAF appraisals (Apprs)

Confirms Agrees SG

Small Grants

awarded

Applic-ants told of GMC decisions & why

NSA whose CNs are approved invited to

submit full proposals (FPs)

Review of FPs GMC selects 1 or more member to review (and

possibly an outside technical reviewer), + 2 members to be Panel for each FP. TAF will

conduct appraisal separately Reports with +ves and -ves

Grant Decisions GMC studies all reviews;

interviews proposers during DM GMC meets to compare views of all panels and decide grants REJECT APPROVE

Development Marketplace All proposals are promoted in public event.

(and SG winners/others can show their activities) Visiting public can express their preferences.

DM Grants awarded

Celebrity gives out awards

Applic-ants told of GMC decisions

Handholding By Cambodian

capacity building organization (PECSA role)

TAF Fiduciary Review Capacity building in Fin.

Management etc, as required Grant Confirmed

Partnership Grants (PG) For PG proposals the

relevant state institution (SI) is also asked if they

support the proposal. Comments forwarded to

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For PGs Relevant SI is again asked for support or comment. Response

is sent to GMC support

Figure A6.6: Flow Chart of Proposed Grant-Making Procedure under Component 2

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Annex 7: Financial Management and Disbursement Arrangements CAMBODIA: Demand for Good Governance Project

A. Summary of the Financial Management Assessment 1. An assessment of the project financial management (FM) arrangements was carried out to determine the adequacy of the proposed FM arrangements of the project and whether they meet the IDA�s requirements as per OP/BP 10.02. These arrangements are acceptable if they: (a) are capable of correctly and completely recording all transactions and balances relating to the project; (b) facilitate the preparation of regular, timely and reliable financial statements; (c) safeguard the projects assets; and (d) include auditing arrangements acceptable to the Bank. The proposed FM arrangements have been assessed as adequate. 2. The DFGG project has three components: (i) Support to State Institutions, (ii) Support to Non-State Institutions, and (iii) Coordination and Learning. In Component 1, four state institutions (SIs) will improve and scale up programs that promote, mediate, respond to or monitor for DFGG in the four priority reform areas of the Bank�s Country Assistance Strategy�s (CAS) Governance Pillar. In Component 2, non-state actors (NSAs) will develop their own programs in these priority reform areas. The third component supports overall coordination of the project and promotes learning, awareness raising and capacity building on DFGG. There are a total of five implementing agencies (IAs)1 for Component 1 and 2 and an Executing Agency (EA), viz., the Ministry of Interior (MOI) which will implement Component 3 and will house the Project Coordination Office (PCO). (See Annex 6 for more details on institutional arrangements). 3. A FM capacity assessment was carried for each IA and the EA which concluded that:

a. Two of the IAs - MONASRI (Component 1B) and RNK (Component 1D) had very weak capacity and also had no experience in handling donor funded projects;

b. Adequate capacity exists at the NCDDS/MOI (Component 1C), which will be supported by the Program Support Team of NCDD, and at the ACF (Component 1A) - an NGO established to provide financial and administrative support to AC;

c. The capacity at TAF is adequate to manage the non-state component (Component 2). d. There is also little capacity at MOI/PCO (Component 3 and EA) for financial

management, therefore FM capacity and staff need to be established at MOI/PCO. However, the MOI/PCO has gained some experiences from implementing the two Project Preparation Facilities (PPF) of the DFGG project.

4. Although centralization of financial management was considered as an option, decentralization of responsibility to each IA has been incorporated into the design for the following reasons :

1 These are the Arbitration Council Foundation (ACF) for Component 1A, Ministry of National Assembly-Senate Relations and Inspection (MONASRI) for Component 1B, the Secretariat of the National Committee for Management of Decentralization and De-concentration Reforms (NCDDS) in the MOI for Component 1C, Radio National Kampuchea (RNK) for Component 1D, and The Asia Foundation (TAF) for Component 2.

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• The ongoing government public financial management reform program supports building capacity at line ministries.

• Centralization of the FM functions would create unnecessary additional procedures which would have the potential for delaying implementation.

• Whilst FM capacity is weak in three of the four state implementing agencies, the project objective of building capacity at these institutions was considered consistent with government objectives for public financial management reforms.

• The two non-state institutions, The Asia Foundation (TAF) and Arbitration Council Foundation (ACF) are required to maintain separate financial records by their charters.

• Centralization of all FM for the project would not be consistent with the assessed capacity of MOI (even with mitigation measures including recruitment of additional consultants and staff). MOI will therefore concentrate on FM for Component 3 (Project coordination and Learning), consolidation of annual financial reports and providing overall FM oversight.

5. Given the above, the design of the FM arrangements was based on the following model:

• Each IA will be responsible for its FM function and management of fund flows;

• Qualified and experienced financial staff will be recruited externally for the PCO until government staff are fully trained;

• Adequate safeguards in terms of intensive staff training and adequate oversight by the PCO and the Ministry of Economy and Finance (MEF) will be incorporated into the design; and

• Financial staff will be placed in the Merit Based Pay Initiative (MBPI) or Priority Mission Group (PMG) systems being proposed for the project to attract qualified and experienced staff within the ministries or from outside recruitment.

6. The inherent risk to the project from the country environment is assessed as high due to the weak financial control environment within which it will be implemented and weak systems of the public sector. Other risks arise from weak capacity of individual state institutions. A number of mitigation measures have been incorporated into the project design including a Good Governance Framework (Annex 11 to this PAD) which reduce the inherent risk to Substantial and reduce the control risks to Moderate. The overall FM risk is assessed as Substantial. B. Country Issues 7. Public Financial Management Reform Program. The Royal Government of Cambodia (RGC) has been implementing a comprehensive Public Financial Management Reform Program (PFMRP) with the full support of the donor community, including the Bank. The program aims at strengthening governance through enhanced public financial management for effective service delivery. It is a detailed, prioritized and sequenced action plan for public financial management reform. The program adopts a platform approach which systematically assesses progress at each stage of implementation before moving to the next step. The PFMRP arose from earlier

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diagnostic work of the Bank 2 and others which concluded that the overall fiduciary risk in Cambodia was high due to weak capacity, weak financial management practices, weak control environment, weaknesses in the National Treasury (NT) operations (especially in the area of cash management), inadequacies in the public sector accounting system, weak internal and external auditing capacity and failure to integrate ODA with the National Budget and accounting systems. 8. Platform I focused on improving budget credibility through i) improved government revenue policy, forecasting and administration; ii) improved budget formulation and comprehensiveness; iii) improvements in existing centralized budget execution systems; and iv) improving cash and bank account management. In addition a number of preparatory activities (e.g. legislative enhancement, Chart of Accounts, Financial Management Information System (FMIS) specification, program budgeting pilot) for later platforms were implemented. The reforms under Platform I have been a significant factor in i) achieving revenues in excess of budgeted amounts; ii) significantly reducing payments made by cash; iii) enacting legislation on budget and procurement; iv) implementation of a GFS compliant budget; and v) improved aggregate control of expenditure. 9. Stage 2 which became effective in fiscal year 2008 has as its objective, through further progress on Platform I and achievement of the Platform II activities, improved financial accountability. This encompasses: i) improving lines of accountability to clarify roles, functions and responsibilities between various levels of government within spending institutions through updating and reviewing laws that specify roles for PFM to improve accountability at National and Sub national levels; ii) further implementation of the new budget classification and new chart of accounts; iii) improved budget execution, accounting and financial management information systems; iv) improved statutory financial reporting and transparency; v) improved external and internal auditing and responsiveness to audit findings, vi) implementation of a fiscal decentralization framework; and vii) capacity development. Achievement of these objectives will result in progressively improving capacity at Line Ministry and Sub National Level. Stage 2 will also provide for further preparatory work towards improve comprehensiveness and integration of budget through integration of recurrent and capital budgets, strengthening of the program budgeting system and deepening of the on going Medium Term Expenditure Framework (MTEF). 10. A review of the PFMRP Platform I activities (2004 � 2007) undertaken by a panel of independent experts contracted by the World Bank in April 2007 concluded that whilst substantial progress had been made in a number of areas the gains needed to be cemented with a concerted implementation effort � this has been built into the design of Platform II. As noted Platform II includes many activities to improve national accounting and FMIS systems, in the meantime the barriers to integrate individual ODA projects more fully into country systems remain high. Although significant improvements have been made in the macro Public Financial Management Environment these have yet to impact substantially at Ministry level. 11. A recent Joint Portfolio Effectiveness Review (JPER) undertaken by the RGC, the ADB and the Bank also identified similar issues and weaknesses and agreed to implement a series of remedial measures in a time bound action plan. These measures include: (i) delegation of 2 Including the 2003 Country Financial Accountability Assessment (CFAA).

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authority over the management of project designated accounts to executing agencies that have in place adequate quality and control systems; (ii) streamlining of approva l processes; (iii) harmonization of a FM manual � which is now in place and a related Prakas has been issued in February 2007; (iv) utilization of uniform FM software � that is under review by the MEF; (v) consolidation of project FM functions; and (vi) implementation of a consolidated training program. 12. A number of activities aimed at strengthening the PFM architecture are now under implementation but are unlikely to materially impact on the FM arrangements for this project in the near term. A FM action plan has therefore been prepared as part of this document to address the weaknesses inherent in the national PFM systems. C. Risk Analysis

Table A7.1: Summary of Risk Analysis

Risk Risk Assessment

Risk Mitigation Measures Risk after Mitigation

Inherent Risk Country level: There is a weak control environment with severe weaknesses in National Treasury (NT) operations, especially in the area of cash management, poorly paid civil service, inadequacies in the public accounting system, and weak internal and external auditing capacity.

High The NT weaknesses and the generic PFM inadequacies are being addressed through the PFMRP which has gone into its second phase. Senior Managers of Ministries formulate their management philosophy and ethical standards and communicate these through written codes of conduct, standards of discipline, formal training and performance appraisal. Placing of all project staff on merit based pay initiative (MBPI) and PMG systems to provide adequate compensation. Senior Managers carry out regular risk assessment and regularly review action plans to mitigate risks. Extensive training on procurement and financial management will be organized during project preparation. Establishment of an internal audit unit within the PCO. Good Governance Framework developed and monitored by Senior Managers and Project Coordination Staff.

Substantial

Entity Level. Some p roject IAs have no experience in management of donor funded projects.

Substantial The project will be implemented by four state institutions (MONASRI, RNK, NCDDS/MOI and MOI/PCO) and two non-state institutions (ACF and TAF). The MOI through the Project Coordination Office (PCO), which is the implementing agency of

Moderate

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Component 3, will also be responsible for overall coordination and project monitoring. Extensive training to be provided to all project staff (PCO staff, IA�s staff and provincial staff) on Standard Operation Procedures, Procurement Manual and Financial Management Manual and detailed Project Implementation Manual. The training will be completed before the project begins implementation. Technical Advisors/Consultants will support project implementation management. Regular MEF oversight and recruitment of FM Advisor at MOI/PCO to provide on-going training and supervision of IAs� financial staff.

Project Level. Project has four IAs for Component 1 with some involving provincial level activities.

Substantial The DFGG will have project specific FM arrangements: detailed Project Implementation Manual adopting the Standard Operation Procedures, annual planning, budgeting and reporting on financial performance, project staff adequately trained; project designated accounts; regular supervision missions and monitoring of interim financial reports; and regular internal and external audits.

Moderate

Overall inherent risk Substantial

Control Risk Budgeting. Government budgeting system is very basic with no program, project, and activity analysis.

Substantial Annual budget plans to be prepared in sufficient detail to be used as a management tool and revised bi-annually. Financial budgets will be linked to physical outputs through the operating plan. IA staff will be given training in budget preparation.

Moderate

Funds Flow. Government funds may be released slowly.

Substantial A Designated Account (DA) will be established at financial institutions acceptable to IDA for each IA, except for ACF and TAF which will pre-finance project expenditures and later reimburse from IDA. The IDA funds will flow to the DAs managed by each IA. Funds released from government will also flow directly into the Counterpart Funds Accounts.

Moderate

Staffing . Staff skills in accounting and financial management are very low. Lack of suitable staff that can be trained before project start. Low staff morale due to low pay.

High A staff training program has been designed and identified FM staff in the IAs have already started basic training in accounting theory using a training syllabus adopted by Khmer Institute of Certified Public Accountants during project preparation. In addition, practical training will be provided on FM and PM Manuals approved by MEF for both financial and non-financial staff before project effectiveness

Moderate

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Clear job descriptions and minimum qualification criteria will be established for all accounting positions. Staff selected to work on the project will be placed on the MBPI and PMG schemes. If suitable staff are not identified within the ministry, external recruitment will be undertaken.

Accounting Policies and Procedures . There are no formal accounting policies and procedures as line ministries are not required to maintain accounts.

Moderate A project specific Financial Management and Disbursement Manual (FMDM) is already prepared and incorporates Bank comments FMDM clearly defines the roles of the PCO and IA staff, including provincial staff. An improved internal control environment will be supported by clear definition of accounting and managerial staff and adequate segregation of duties. A uniform Project accounting system has been established at each IA, with the exception of ACF and TAF of wh ich existing accounting systems have been found acceptable. A suitable software package will be selected. A common chart of accounts and standard reporting formats are included in FMDM.

Low

Internal Control . Internal control environment is considered weak in Cambodia due to low civil service wages, appointments based on patronage and weak or absent of audit arrangements.

Substantial Salary issue is addressed through placing project staff on MBPI and PMG schemes. Project staff are to be selected based on job descriptions, qualification and experience criteria and a transparent selection process. In addition, a performance evaluation system will be established. Standard Operating Procedures (SOP), Procurement Manual (PM) and Financial Management and Disbursement Manual (FMDM) clearly define roles and responsibilities of staff. Internal audit will assist management in effective internal control by monitoring, evaluating and reporting on control procedures and their effectiveness. Require managers to issue annual letters of assurance certifying that funds are used in compliance with grant agreement and agreed financial policies and procedures for intended purposes.

Moderate

Inability to properly account for advances, fuel and allowances.

Substantial The project shall maintain an advance register, vehicle logbook and fuel register, which shall be reviewed by auditors (both internal and external) and by the Bank mission.

Moderate

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Internal Audit. Internal Audit Department (IAD) has been established in MOI (but not functioning) but not in other state institutions.

High An internal audit unit will be established in the PCO of MOI to supplement MOI own internal audit department. The internal auditor will be responsible for auditing all IAs and provincial units of IAs.

Substantial

External Audit. Low Independent auditors will be engaged to conduct the audit of the project financial statements annually.

Low

Reporting and Monitoring. Budget and actual expenditure reports are currently prepared by IAs but not adequate for efficient budget execution.

Moderate The format of the quarterly Interim Financial Reports (IFRs) will be agreed. Each IA will be responsible for preparing its own quarterly IFRs as part of the overall progress reporting and monitoring of the project and submitted to IDA within 45 days after the end of each quarter. However, one copy of the IFRs will be provided to the PCO for review and oversight.

Low

Overall Control Risk Moderate

Overall Project Risk Rating Substantial

Risk rating � H (high), S (Substantial), M (Moderate) and N (Negligible Risk). D. Financial Management Arrangements 3

D.1 Organization & Staffing 13. Each state IA will designate a Project Accountant to be responsible for project financial management. Under the Project Accountant, at least two or three accounting officers will be appointed to support project accounting work. The Project Accountant will be responsible for ensuring that the financial management arrangements (including disbursement, reporting, auditing, budgeting, accounting, internal controls, provincial project accounts (if any), counterpart funds accounts, quarterly Interim Financial Reports (IFRs)) are maintained to an acceptable standard. The participating state IAs have identified around 14 staff who are currently undergoing training in accounting theory based on Corporate Accounting Technician (CAT) syllabus of Khmer Institute of Public Accountants and Auditors (affiliated with Chartered Institute of Certified Corporate Accountants of London). These staff will go through six months of basic training in accounting followed by training on project accounting. Two subcomponents (MONASRI and OWSO-DO), which will have provincial operations will be required to identify at least one accounting staff for each province before planned provincial operations. These provincial staff will be trained to manage account processing at the provincial level. 14. In addition to providing financial management support for component 3 the finance unit of the PCO will be responsible for coordinating with MEF on annual counterpart funds requirements, producing annual project financial statements, and arranging the audits of the financial statements annually. To ensure that the PCO has the capacity to do this, it will recruit a national FM Advisor (FMA), who will be a qualified accountant with at least 10 years of experience in the public or private sector. His/her duties would be to train and supervise all IA 3 For details of the overall institutional and implementation arrangements please see Annex 6.

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accounting staff, provide guidance to IA Project Accountant for effective management of project finances and assist the Project Coordinator in monitoring the financial progress of the Project. He would also assist the IA managers in periodic evaluation of risks and monitoring of the implementation of the Good Governance Plans. 15. Both ACF and TAF Cambodia have a number of experienced staff which experienced with several donors-funded projects. TAF is managing several donor funded projects in Cambodia (USAID, DFID, DANIDA and the World Education Trust). Additionally, TAF headquarters has managed Bank-funded projects. An adequate number of experienced staff will be assigned to handle the FM arrangements with some newly recruited staff. D.2 Accounting Policies, System and Procedures 16. The FM arrangements of the state IAs will be based on the RGC Standard Operating Procedures (SOP) and Project Financial Management Manual (FMM) for externally financed projects, which were developed in 2005 and issued by Sub-Decree in February 2007. The FMM sets out general principles on planning, budgeting, accounting, reporting and auditing of externally funded projects. The laid out procedures in this manual have been supplemented to provide for the specific circumstances of this project and are set out in the Financial Management and Disbursement Manual (FMDM) for the project. The FMDM will apply both to state and non-state components and includes a common chart of accounts to be used by all IAs so that project financ ial statements can be easily consolidated. 17. A common computerized accounting system will be installed at each state IA and staff trained on operations of the system. In selecting the software package, consideration will be given to software packages currently in use in IDA funds projects and reporting needs of the Project managers, the MEF and IDA. 18. Accounting policies will be in accordance with International Accounting Standard (IAS) applicable for project accounting. For purpose of preparing and consolidating the project financial statements for the entire project at the end of the year, the Cash basis of accounting will be used by each IA in prepare its financial accounting books. 19. Both ACF and TAF have established clear policies and procedures for FM. ACF maintains its accounting records by using Sun Accounting Software. TAF maintains its accounting records by using QuickBooks accounting software. Both systems are capable of reporting donor activities separately as required by each donor. D.3 Budgeting 20. Project Managers supported by the Project Accountants will take the primary responsibility for budget preparation and execution. Where practical, the budgets will include physical targets. The annual budget of each IA will be submitted to the PCO. The PCO will review the budgets for conformity with authorized project costs, realism, and consistency with agreed project implementation plans. The individual IA budget will be consolidated by the PCO and presented to the MEF and IDA. The budget cycle runs from January 1 to December 31.

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D.4 Control of Soft Expenditures 21. The FMDM includes a number of measures to strengthen the controls related to soft expenditures (e.g. per diems, travel, accommodation, fuel, training, workshop and seminar costs). This is appropriate given the significant portion of the total project costs budgeted for soft expenditures. Proper budgeting, authorization, control, monitoring and accounting of these expenditures are the responsibility of the Project Directors. The PCO will have special oversight responsibilities. The project financial officers will be responsible for ensuring that the management controls specified in the FMDM are enforced. These controls include:

• Procedures for Budgeting and Acquitting of Expenditures for Workshops. This will include, for example, controls on attendance, controls against budgeted expenditures, and the PCO internal auditor undertaking verification (including spot checks, where appropriate).

• Procedures for control of fuel

• Maintenance of Advance Records

22. The PCO Internal Audit Unit will have responsibility to carry out reviews of internal control systems, risk assessment, and staff performance. PCG and Project Directors will review the complaints and grievance systems to ensure that they are properly administered and both internal and external suggestions/complaints received are handled in a timely manner by concerned managers. Annually, a workshop is proposed to assess the effectiveness of the risk management and control systems with members of PCG, key national stakeholders, and Bank supervision team. D. 5 Financial Management Arrangements for Grants 23. Prior to entering into a grant agreement it will be TAF�s responsibility to ensure that the recipient organization is capable of managing funds for the agreed-upon program. If necessary a time-bound action plan will be agreed with successful grant applicants so as to ensure FM arrangements are acceptable. During implementation of grants, TAF staff will carry out financial supervision of grant recipients, the frequency will be based on the amount of the grant advanced in a fiscal year. TAF will be governed by the operational manual prepared for Component 2 which has been agreed with the IDA and will be subject to review by the PCO internal audit department and also as part of Bank supervision. D. 6 Funds Flow 24. IDA funds will be channeled to the respective DAs maintained by each IA, except the ACF and TAF. Disbursement from the DAs will require two signatures - one is the Project Director or his delegates and another is the Chief of the Finance Unit of such IA or his delegates as outlined in the FM manual:

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25. For Component 1A, the ACF will pre-finance the project expenditures and reimburse later from IDA through the MEF on a regular basis. 26. For Component 2, TAF will disburse funds from its own resources and request reimbursement from the IDA on a regular basis. TAF will contract a reputed local legal or accounting firm to disburse funds on its behalf and advance sufficient funds from its own resources to facilitate timely disbursement of funds. TAF will be responsible for all authorization of payments in accordance with grant agreement and for issuing instructions for release of funds to grant recipients. The fiduciary responsibility for ensuring payments are made for intended purposes will be with TAF and the disbursement agent will act as TAF� agent. The arrangements proposed by TAF have been assessed as adequate. 27. Withdrawal of IDA Funds. Implementing agencies will prepare Withdrawal Applications (replenishment based on SOEs, Direct Payment or Reimbursement) for authorization by MEF before submission to IDA. 28. Government counterpart funds will be channeled through the Counterpart Funds Accounts (CFA) to be maintained by each IA, except for ACF and TAF where such funds will not be required. The replenishment to the CFA will be done on a regular basis.

Table A7.2: Allocation of Grant Proceeds

Category IDA Amount in USD)(1) Financing %

(1) Goods, Works, Consultants� Services, Training and Workshops, ACF Operating Costs, and Incremental Operating Costs:

(a) under Component 1A for ACF (2)

(b) under Component 1B for MONASRI (3)

(c) under Component 1C for NCDDS (4)

(d) under Component 1D for RNK (5)

(e) under Component 2 for TAF (6)

(f) under Component 3 for PCO/MOI (7)

[US $ 2,341,685]

[US $ 2,012,785]

[US $ 2,428,947]

[US $ 1,944,560]

[US $ 182,296]

[US $ 2,282,600]

100%

For IOC of OWSO and DO offices 100% in Year 1-2, 50%

in Year 3.

(2) Sub-grants under Component 2 [US $ 3,300,031] 100%

(3) MBPI

(a) under Component 1B for MONASRI

(b) under Component 1C for NCDDS

[US $ 192,694]

[US $ 60,192]

90% in Year 1

85% in Year 2

80% in Year 3

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(c) under Component 1D for RNK

(d) under Component 3 for PCO/MOI

[US $ 240,887]

[US $ 139,471]

75% in Year 4

(4) PMG

(a) under Component 1B for MONASRI

(b) under Component 1C for NCDDS

(c) under Component 1D for RNK

[US $ 210,031]

[US $ 1,042,289]

[US $ 190,476]

90% in Year 1

85% in Year 2

80% in Year 3

75% in Year 4

(5) Management Costs under Component 2 [US $ 792,673] 100%

(6) Refund of Project Preparation Advances [US $ 1,646,640] Amount payable pursuant to Section 2.07 of the General

Conditions

(6) Unallocated (8) [US $ 991,743]

TOTAL AMOUNT [US $ 20,000,000]

Notes: (1) Note that the allocation of Grant proceeds in the negotiated Financing Agreement for the project is denominated

in SDR and due to rounding off and exchange rate fluctuations, the actual US$ equivalents for these categories may eventually differ from what is presented in the table.

(2) The allocation of Category 1(a) for ACF approximately consists of $109,950 for Goods, $351,313 for Consultants� Services, $359,187 for Training and Workshops, $788,245 for ACF Operating Costs and $732,990 for Incremental Operating Costs.

(3) The allocation of Category 1(b) for MONASRI approximately consists of $500,507 for Goods, $637,350 for Consultants� Services, $544,248 for Training and Workshops and $330,680 for Incremental Operating Costs.

(4) The allocation of Category 1(c) for NCDDS approximately consists of $637,950 for Goods, $351,500 for work, $544,964 for Consultants� Services, $400,733 for Training and Workshops and $493,800 for Incremental Operating Costs .

(5) The allocation of Category 1(d) for RNK approximately consists of $693,180 for Goods, $691,060 for Consultants� Services, $36,400 for Training and Workshops and $523,920 for Incremental Operating Costs.

(6) The allocation of Category 1(e) for TAF approximately consists of $14,650 for Consultants� Services, $54,248 for Training and Workshops and $113,398 for Incremental Operating Costs.

(7) The allocation of Category 1(f) for MOI/PCO approximately consists of $162,000 for Goods, $100,000 for works, $1,603,600 for Consultants� Services, $225,000 for Training and Workshops and $192,000 for Incremental Operating Costs

(8) Due to rounding off of the negotiated SDR value of the Grant, the actual US$ amount in the unallocated category will be approximately US$ 1,126,662.

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E. Disbursement Arrangements 29. Separate withdrawal applications (WAs) would be submitted by each IA accompanied by reconciled bank statements from the depository bank showing all transactions of the DAs. The project will use transaction based disbursement procedures: using the DAs for most expenditures, with replenishment on the basis of statements of expenditures (SOEs); direct payment method may also be used for expenditures above the levels for SOEs with full documentation support; reimbursement for eligible expenditures pre-financed by the government, ACF or TAF. E.1 Uses of Statements of Expenditures (SOEs) 30. Expenditures expected to be disbursed on the basis of SOEs are as follows: (a) works contracts costing less than US$100,000 equivalent each; (b) goods contracts costing less than US$100,000 equivalent each; (c) services of consultant firms costing less than US$100,000 equivalent each; (d) services of individual consultant costing less than US$50,000 equivalent each; (e) sub-project grants; (f) training and workshop; (g) ACF operating cost; (h) incremental operating costs; (i) MPBI; (j) PMG; and (k) TAF management costs. 31. Disbursement for any expenditure exceeding the above limits will be made against submission of full documentation and signed contracts. 32. The documentation supporting SOE disbursements will be retained by the project during the life of the project and until one year after the receipt of the audit report for the last year in which the last disbursement would be made. These documents will be made available for review by the auditors and IDA supervision missions. 33. Should the auditors or IDA supervision mission find that disbursements have been made that are not justified by supporting documentations, or are ineligible, IDA will have the right to withhold further advances to the DA�s. IDA may exercise this right until the Borrower has refunded the amount involved or (if IDA agrees) has submitted evidence of other eligible expenditures that offset the ineligible amounts. E.2 Designated Accounts (DAs): 34. To facilitate disbursement of project proceeds, one DA will be managed by each state IA for project expenditures under its respective components. ACF and TAF will pre-finance and reimburse directly from IDA. The DA denominated in US dollar will be established at a financial institution acceptable to IDA on terms and conditions satisfactory to IDA. Payment in cash will be minimized and limited to the petty cash transactions only. Direct payments to suppliers will be encouraged. 35. The authorized allocation of the DAs will be

§ DA-MONASRI: US$ 100,000.

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§ DA-NCDDS/MOI: US$ 100,000. § DA-RNK: US$ 100,000. § DA-PCO/MOI: US$ 100,000.

36. The DAs should be replenished on a monthly basis (irrespective of the amount involved) to assure liquidity of funds. Designated Account ceilings will be revised when required. All replenishment applications will be accompanied by reconciled bank statements from the depository bank showing all transactions of the designated accounts. F. Reporting and Monitoring 37. Each IA will be responsible for preparing quarterly IFRs using the agreed format for submission to MEF and IDA within 45 days after the end of each quarter starting from the first quarter following the project�s first disbursement. However, one copy of the monthly financial reports will be submitted to PCO for information sharing. As the quarterly IFRs will also be used as a monitoring tool, it will report project progress with adequate description, explanation and analysis of variances. The IFRs shall include: (1) Discussion of Project Progress; (2) Statement of Sources and Uses of Funds by Disbursement Category; (3) Uses of Funds by Project Activity; and (4) Procurement Status Report. If required, additional output monitoring and performance indicators will be identified and developed to suit project needs during implementation. They will not be subject to audit. The format of the IFRs will be agreed during project negotiation. 38. At the end of the year, from the 4th quarter of the IFRs, the PCO will be responsible for preparing the annual project financial statements for the entire project for audit purposes. F.1 Internal Audit 39. The Internal Audit Department (IAD) within MOI was established through the Sub-Decree No. 22 in March 2006 and with Prakas from the MOI issued in April 2007, the Director of the IAD reports directly to the minister. Currently there are 15 experienced staff working in the IAD with various backgrounds including finance, law and IT. There are plans to recruit 50 additional staff from newly graduates. However, no formal office space has yet been allocated and the department lacks adequate office furniture and equipment. The LASED project includes some funds to address these shortcomings. 40. Given the relative inexperience of the MOI-IAD and the demands already placed on it, as an interim measure, an internal audit unit for the DFGG project is proposed to be set up within the PCO. The unit will be staffed with an experienced Internal Auditor and two assistants. The internal auditors will be responsible for systematic and periodic review of all project operations, accounting processes and cash management for both state and non-state window of the Project, the audit findings will be provided to IDA. The authority of the internal audit unit within the PCO over other agencies and ministries is provided for through the FMDM.

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F.2 External Audit 41. The Audit Law of Cambodia assigns the function of external audit to the National Audit Authority (NAA), which is an independent body reporting to the National Assembly. However, as identified in the 2003 IFAPER, the NAA is a new organization with weak capacity. Therefore, an independent annual audit of the project financial statements is required. 42. The project financial statements will be audited annually in accordance with International Standard on Auditing (ISA) by independent auditors acceptable to IDA based on TORs acceptable to IDA. The auditor should be appointed prior to the first audit period to allow the auditor able to submit the audit report within the due date. The audited financial statements will be submitted to IDA within six months after the end of each fiscal year. The cost of the audit will be financed from the project proceeds. 43. There would be two separate audits. The first audit would be coordinated by the PCO and cover all the IAs, except for the ACF for Project related funds. A second audit would be undertaken separately by the ACF a part of their regular annual auditing requirements. This would cover all expenses of the ACF, including non-Project funds. The term of reference for the ACF audit must be acceptable to the MEF and IDA. The auditor is required to issue a single opinion covering project accounts, the usage of statement of expenditures, and the management of designated accounts. In addition, a management letter outlining any internal control weaknesses will also be issued by the external auditor together with the audit reports. F.3 Supervision Plan 44. As the overall FM risk rating of the project is substantial, supervision of project financial management will be performed initially more than twice a year. The FM supervision of the project will include but not be limited to operation of designated accounts, evaluation of the quality of budgets, project financial monitoring and management reviews of financial reports, quality of IFRs, relevancy of the FM Manual, internal controls, work and document flow and quality of financial records, and follow up of audit (internal and external) and mission findings. FM supervision will also include reviews of the statements of expenditures (on a sample basis), and compliance with covenants. Based on supervision results, the risk will be re-assessed and the frequency of supervision recalibrated. G. Financial Management Action Plan (The project start date is assumed as March 31, 2009)

Actions Responsibility Completed by Staffing Agree on job descriptions, qualification/experience criteria and number of accounting positions for each IA (as required for MBPI).

PCO/IAs/Consultant Completed

Appointment of financial staff

Internal Recruitment

External Recruitment

Each state IA

December 31, 2008

January 31, 2009 Appointment of Project Accountants at PCO and each IAs PCO/IAs December 31, 2008 Appointment of PCO Financial Management Advisor PCO January 31, 2009

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Appointment of Internal Auditors PCO March 1, 2009 Staff Training Training on Standard Operating Procedures to senior project managers and all staff

Initial

Follow up

MEF/PCO December 31, 2008

January 31, 2009

Training on good internal controls practices (setting ethical standards, code of conduct, performance appraisal and discipline) to senior managers.

PCO/Consultant December 31, 2008

Training workshop on risk assessment and management

Follow up workshop on risk review and updating

PCO/Consultant December 31, 2008

January 31, 2009 Training on Financial Management Manual

Module 1 FM Overview

Module 2 FM Responsibilities of Managers and Project Staff

Module 3 IDA FM Procedures

MEF/PCO

Completed

December 31, 2008

December 31, 2008 Training on Basic Accounting to FM staff

Identify training institute

Nominate trainees

Commence training

Paper 1-4

Paper 5-6

PCO/Selected Training Institute

Completed

Completed

Completed

Completed

December 31, 2008 Training on FMDM and IDA procedures to all FM staff of IAs MEF/PCO December 31, 2008 Accounting System Draft Financial Management and Disbursement Manual PCO/Consultant Completed Design chart of accounts and selection of software package PCO/Consultant December 31, 2008

Interim Financial Reports Prepare and agree on the format of the Interim Financial Reports (IFRs). IAs/IDA Project negotiation Audit Arrangements Appoint an independent auditor acceptable to IDA to carry out the audit of annual project financial statements in accordance with TORs satisfactory to IDA.

IPA Prior to the first audit period

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Annex 8: Procurement Arrangements CAMBODIA: Demand for Good Governance Project

A. General 1. Procurement for the proposed project would be carried out in accordance with the World Bank�s �Guidelines: Procurement under IBRD Loans and IDA Credits� dated May 2004, revised October 2006, and �Guidelines: Selection and Employment of Consultants by World Bank Borrowers� dated May 2004, revised October 2006. The general description of various items under different expenditure categories are described below. For each contract to be financed by the Grant, the different procurement methods or consultant selection methods, the need for prequalification, post-qualification, estimated cost, prior review requirements and time frame are agreed between the Recipient and the Bank project team in the Procurement Plan. The Procurement Plan will be updated at least annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. 2. Procurement of Goods: Goods procured under this project would primarily include: office furniture, office equipment, audio visual equipment, and vehicles, etc. Goods, other than those under Sub-grants in Part B of the Project, estimated to cost the equivalent of US$ 100,000 or more per contract shall be procured through the International Competitive Bidding (ICB) method and the procedures set forth in the Bank�s Procurement Guidelines and using the Bank�s applicable Standard Bidding Documents. Goods, other than those under Sub-grants in Part B of the Project estimated to cost less than US$ 100,000 equivalent per contract may be procured through the National Competitive Bidding (NCB) method and the procedures set forth in the Sub-decree 14 on Promulgating of the Standard Procedure for Implementing the World Bank and the Asian Development Bank Assisted Projects dated February 26, 2007 and relevant provisions of the Royal Government of Cambodia Externally Assisted Project Procurement Manual for Goods, Works and Services, subject to the improvements listed in the Annex to the DGA. Goods, other than those under Sub-grants in Part B of the Project estimated to cost less than US$ 20,000 equivalent per contract may be procured through the Shopping method and the procedures set forth in the aforesaid Sub-decree and Procurement Manual. Vehicles estimated to cost less than US$ 100,000 equivalent may be procured from UNOPS under the method Procurement from United Nations Agencies. Goods under Sub-grants in Part B of the Project estimated to cost the equivalent of US$ 150,000 or more per contract shall be procured through the ICB method, less than US$ 150,000 per contract through the NCB method, and less than US$ 50,000 per contract through the Shopping method, in accordance with the procedures indicated above for each method.

3. Procurement of Works : Works procured under this project would include only office renovation. Works estimated to cost the equivalent of US$ 300,000 or more per contract shall be procured through the International Competitive Bidding (ICB) method and the procedures set forth in the Bank�s Procurement Guidelines and using the Bank�s applicable Standard Bidding Documents. Works estimated to cost less than US$ 300,000 equivalent per contract may be procured through the National Competitive Bidding (NCB) method and the procedures set forth in the aforesaid Sub-decree and Procurement Manual, and subject to the improvements listed in the Annex to the DGA. Works estimated to cost less than US$ 40,000 equivalent per contract may be procured through the Shopping method and the procedures set forth in the aforesaid Sub-decree

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and Procurement Manual. Works will not be permissible as a financing category under Part B of the Project. 4. Selection of Consultants: Consultant services are expected in the following areas: capacity building, baseline assessment, project management, economic value study, monitoring and evaluation, etc. Services, other than those under Sub-grants in Part B of the Project, requiring hiring of firms would generally be procured through Quality-and Cost-based Selection (QCBS) method. However, for assignments estimated to cost less than US$ 50,000 equivalent per contract the method Selection Based on Consultants’ Qualifications (CQS) may be used, and for external audit assignments the Least Cost Selection Method (LCS) may be used. Services, other than those under Sub-grants in Part B of the Project, for tasks under circumstances which meet the requirements of paragraph 3.10 of the Consultant Guidelines may, with the Bank’s prior agreement, be procured through the Single Source Selection method. Services, other than those under Sub-grants in Part B of the Project requiring hiring of individual consultants may be procured in accordance with the provisions of Section V of the Consultant Guidelines, whereas Sole Source Selection of individual consultants may be done only with the Bank�s prior agreement and under the circumstances described in paragraph 5.4 of the Consultant Guidelines. Shortlists of consultants for consulting services estimated to cost less than US$ 100,000 equivalent per contract may be composed entirely of national consultants. Consultant services under Sub-grants in Part B of the Project requiring hiring of firms estimated to cost the equivalent of US$ 100,000 or more per contract shall be procured through Quality-and Cost-based Selection (QCBS) method, less than US$ 100,000 equivalent per contract through the Selection Based on Consultants’ Qualifications (CQS) method. Consultant services under Sub-grants in Part B of the Project requiring hiring of individual consultants may be procured in accordance with the provisions of Section V of the Consultant Guidelines, whereas Sole Source Selection of individual consultants may be done only with the Bank�s prior agreement and under the circumstances described in paragraph 5.4 of the Consultant Guidelines.

5. Sub-Grants under Part B - Support to Non - State Institutions , since the sub-grants will be demand driven based on proposals submitted by various non - state institutions such as national and local NGOs, other grassroots organization, policy and research centers, independent media, professional associations, business associations and trade unions, and the proposals will be evaluated against an established and pre-disclosed technical and qualification criteria, it is not known up front at this time what is the nature and value of the sub-grant and the procurement in such sub-grant. Nevertheless, procurement of goods, works and consultant�s service in the sub-grant proposed by the above beneficiary of the sub-grant shall follow the procurement methods and procedures stipulated in the above paragraphs 1 � 4. 6. Training Workshop and Incremental Operating Cost: Contracts for training and workshops and related procurement should follow one of the available methods under the Guidelines above. Incremental Operating Costs can be incurred on the basis of an annual or semi-annual plan approved in advance for the Project specified procedures for the financial control and approval of training and related expenditures.

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B. Assessment of Agency�s Capacity to Implement Procurement

7. Consistent with the Government�s decision to require an International Procurement Agent (IPA) for all IDA-financed projects in Cambodia, unless otherwise agreed between the RGC and the IDA, all procurement activities financed wholly or partially by IDA to be undertaken under the project will be carried out by the International Procurement Agent (IPA) on behalf of the Implementing Agencies (IAs) � MONASRI, ACF, RNK, PCO, and OWSO & DO under Ministry of Interior (MOI) with the exception of those to be procured with IDA�s prior concurrence through Procurement from UN Agencies, Single Source Selection of consulting firms and Sole Source Selection of individual consultants, hiring by the ACF of experts on a short-term notice for emergency/urgent labor disputes, contract for ACF�s financial auditor which is to be undertaken by ACF�s Board of Directors, and all procurement under Part B of the Project, which may be procured by the implementing agencies themselves, including TAF and the recipients of the Sub-grants under Part B. Procurement financed exclusively from other than IDA resources, including by the Government, will not require the IPA. The IPA will handle all procurement of works, goods, and consulting services, from preparation of bidding documents up to the stage ready for the signing of contract. All IAs will only provide technical inputs required by the IPA. In order to coordinate and follow-up of procurement activities between IAs, the IPA, MEF, and the Bank, each IA will assign at least one procurement staff to be Procurement Coordinator for the proposed DFGG project. Assessment of all the IAs Procurement Capacity indicated that for State Component, only OWSO has one procurement staff in the administration unit who has experienced with WB project (RILGP) and other donors� assisted projects and should be assigned as procurement coordinator with the IPA, and for Non-State Component, The Asia Foundation (TAF) has one qualified procurement staff with sufficient procurement knowledge and experience who will be further trained in the World Bank procurement procedures and this staff member will guide and assist recipients of the sub-grants in carrying out their procurement and also to assist TAF in carrying out its own procurement of consultant services and goods. In carrying out its own procurement, TAF procurement staff will report to the procurement committee that is led by the Deputy Country Representative. MONASRI, ACF, RNK and Project Coordinator Office (PCO) under MOI are required to recruit one qualified consultant to handle the coordination of procurement activities with the IPA. 8. As mentioned above that MONASRI, ACF, RNK, and PCO currently do not have adequate capacity to effectively undertake procurement under the Project in accordance with the Bank�s Procurement Guidelines and procedures. There is also the high fiduciary risk in Cambodia in the context of the weak governance environment in the country, including procurement. Consequently, the current procurement risk under the Project is high but this will be managed and mitigated through the wide range of strengthening measures that are being incorporated in the Project design and legal agreements, as listed in the Action Plan below. With the incorporation of the capacity strengthening measures and the extensive requirements for improving governance, including transparency and accountability in the procurement process, the residual procurement risk under the Project is determined to be Substantial.

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B.1 Action Plan

a. Adoption and implementation of a Good Governance Framework (GGF) (anti-corruption action plan) � included as Annex 11 to the PAD. The GGF includes various elements for improving governance thorough enhanced public disclosure, complaints mechanism, integrity pacts, and involvement of civil society, strengthened financial management and procurement arrangements, and redress of project-specific implementation needs. The attached GGF has been agreed in-principle by the IAs and a few remaining provisions related to technical aspects will be agreed by Negotiations.

b. IPA to carry out, on behalf of the IAs, all procurement under the Project, with the

exception of those to be procured with IDA�s prior concurrence through Procurement from UN Agencies, Single Source Selection of consulting firms and Sole Source Selection of individual consultants methods, hiring by the ACF of experts on a short-term notice for emergency/urgent labor disputes, contract for ACF�s financial auditor which is to be undertaken by ACF�s Board of Directors, and all procurement under Part B of the Project, which may be procured by the implementing agencies themselves, including TAF and the recipients of the Sub-grants under Part B. Since a competitive process is not involved in these methods, it is not cost-efficient to pay the IPA service fee for such type of procurement.

c. One qualified Procurement Coordinator each to be engaged by MONASRI, ACF, RNK,

PCO168 and assigned to serve as the focal point for coordination and follow-up of procurement activities between the IAs, IPA, MEF, and the Bank. Under Part B of the Project, TAF has one qualified procurement staff with sufficient procurement knowledge and experience that will be further trained in the World Bank procurement procedures and this staff member will guide and assist recipients of the sub-grants in carrying out their procurement and also to assist TAF in carrying out its own procurement of consultant services and goods. In carrying out its own procurement, TAF procurement staff will report to the procurement committee that is led by the Deputy Country Representative.

d. Required application under NCB of Kingdom of Cambodia�s Standard Procurement

Manual for Externally Assisted Projects, including Standard Bidding Documents. The Procurement Manual, which has been endorsed by WB and ADB for use under Project�s financed by them in Cambodia, in itself includes numerous procedural requirements for further enhancing transparency and accountability in NCB, Shopping and nationally competed consulting services procurement. These include requirements for wider publicity of bidding opportunities and procurement plans, enhanced disclosure of contract award information, provisions against fraud and corruption, procurement complaints handling mechanism, integrity certifications from bidders, contractors, and bid evaluation committee members, involvement of civil society in the procurement process, clear record keeping requirements, defined roles and responsibilities of government staff involved with procurement, streamlined approval process, etc. In addition, the NCB-Annex in the legal

168 Since October 6, 2008, RNK and PCO have sent the TORs for the procurement coordinator to IPA, but the EOI has not been advertised yet (as of November 4, 2008). ACF and MONASRI are preparing the TORs for the procurement coordinator.

142

agreement will list the Bank�s further requirements for procedural improvement and control.

e. Low thresholds to reduce the use of less competitive methods such as Shopping and to

promote maximum competition through ICB. Bulk of the competitive procurement by value to be done through ICB.

f. Bulk of the procurement under the Project to be subject to the Bank�s prior review. This

includes also Single Source Selection and Procurement from UN Agencies. g. Expanded scope of post-reviews by the Bank to include checks for indicators of collusion

and end-use deliveries in addition to verifying procedural compliance. h. At least two supervision missions per year, including ex-post review. i. Oversight by RGC�s Anti-Corruption Working Group for World Bank financed projects.

C. Procurement Plan 9. The Borrower has developed a procurement plan for the first 18 months of project pre-implementation and implementation which is attached in this Annex and provides the basis for the procurement methods. This plan has been agreed between the Borrower and the Project Team and is available at Ministry of National Assembly-Senate Relations and Inspection (MONASRI), The Arbitration Council (AC) of the Ministry of Labor and Vocational Training (MOLVT), Radio National of Kampuchea (RNK) of the Ministry of Information, One Window Services Office (OWSO) and District Ombudsman (DO) of the Ministry of MOI, The Asian Foundation, and Project Coordination Office in MOI. It will also be available in the project�s database and in the Bank�s external website. The Procurement Plan will be updated in agreement with the Project Team annually or as required to reflect the actual project implementation needs and improvements in institutional capacity. D. Frequency of Procurement Supervision 10. In addition to the prior review supervision to be carried out by the Bank on a continuous basis, the capacity assessment of the Implementing Agencies recommends that procurement supervision missions, including ex-post review, be conducted at least twice per year. E. IDA Review Requirement 11. The following contracts will be subject to prior review by the Bank: (a) the first contract each for goods and works procured under NCB procedures by each Implementing Agency, including recipients of Sub-grants; (b) the first contract for goods and works procured under shopping by each Implementing Agency, including recipients of Sub-grants; (c) each contract for goods estimated to cost the equivalent of US$ 100,000 or more; (d) each contract for works estimated to cost the equivalent of US$ 300,000 or more, (e) each contract for consultants� services provided by a firm estimated to cost the equivalent of US$ 100,000 or more, (f) each

143

contract for the employment of individual consultants estimated to cost the equivalent of US$ 50,000 or more, and (g) each contract involving Single-Source Selection of firms or Sole Source Selection of individual consultants, irrespective of value, shall be subject to prior review by IDA. 12. All other contracts shall be subject to ex-post review by the Bank. The percentage to apply for contracts subject to ex-post review is 30%. F. Details of the Procurement Arrangement Involving International Competition during

the first 18 months for the pre-implantation and implementation of the Project

1. Goods

1.1 List of contract Package which will be procured following ICB Contract Package

No.

Description of Contract Package

Total Estimated Cost (USD)

Method of Procurement

Domestic Preference

Review by

Bank (Prior/ Post)

Estimated Date of

Invitation for Bids

Procuring Agency

ICB 1 - OWSO

Computer equipment (53 desktops, 2 laptops, 16 Printers, 1 Scanner, 7 Cash registers, 8 Photocopiers, 1 Fax Machine)

104,700 ICB yes Prior 01 �Dec -08

OWSO through

IPA

ICB 1 - RNK

Audio Visual Equipment (Antenna, Transmitter fitting etc.)

270,000 ICB yes Prior 01-Apr-09 RNK through

IPA

1.2 All ICB contracts and all direct contracting contracts (if any) will be subject to prio r

review by the Bank.

2. Consulting Services

2.1 List of Consulting Assignments with short-list of international firms/individuals.

144

Contract Package

No.

Description of Contract Package

Total Estimated

Cost (USD)

Selection Method

Review by

Bank (Prior /

Post)

Estimated Date of

Invitation for Proposal/

CVs

Procuring Agency

Comment

CS -1 PCO

M&E Consultant

334,000 QCBS Prior 01-Oct-08 PCO through

IPA

CS -2 PCO

Research and Training Organization

702,000 QCBS Prior 01-Jan-09 PCO through

IPA

CS -1 MONASRI

Communication Advisor for Pre-implementation and implementation period

272,500 QCBS Prior 01-Dec-08 MONASRI through IPA

Phased Contract

CS -2 MONASRI

Baseline Study (Pre Implementation) /M&E

115,000 QCBS Prior 01-Oct-08 MONASRI through

IPA

Phased Contract

CS-1 AC TA Project Management Consultant (Pre-implementation)

40,000 Sole Source Selection of individual consultant

Prior 01-Mar-08 MOI PPF2, Further TA is expected to be required during pre-effectiveness.

CS-2 AC 3 Short Term Legal Experts (Pre -listed Consultants for Labor Dispute)

12,000.00 (average contract

amount is 4,000.00)

Selection of Individual

Consultants

Prior 01-Dec-08 ACF expert on a short notice for emergency/ urgent labor disputes

CS-3 AC Production Firm for (1) Public service announcement/Develop sport, (2)Soap opera, and (3) Training Video

83,800 Single Source

Selection of consulting

firm

Prior 15-Nov-08 ACF

(a) Consultancy services estimated to cost above US$ 100,000 for firms and US$ 50,000 for

individuals per contract, and all Single Source Selection of consultants (firms and individuals) will be subject to prior review by the Bank.

(b) Short lists composed entirely of national consultants: short lists of consultants for

services estimated to cost less than US$ 100,000 equivalent per contract may be composed entirely of national consultants in accordance with the provisions of paragraph 2.7 of the Consultant Guidelines.

145

Attachment 1 to Annex 8: National Competitive Bidding Procedures The procedure to be followed for National Competitive Bidding shall be those set forth in the Sub-decree 14 on Promulgating of the Standard Procedure for Implementing the World Bank and the Asian Development Bank Assisted Projects dated February 26, 2007 and relevant provisions of the Royal Government of Cambodia Externally Assisted Project Procurement Manual for Goods, Works and Services with modifications set forth below in order to ensure economy, efficiency and transparency and broad consistency with the provisions of Section I of the of the Guidelines for Procurement under IBRD Loans and IDA Credits published by the Association in May 2004 and revised in October 2006 (the Guidelines) as required by paragraph 3.3 and 3.4 of the Guidelines. Eligibility

§ The eligibility of bidders shall be as defined under Section I of the Guidelines; accordingly, no bidder or potential bidder shall be declared ineligible for contracts financed by the Association for reasons other than those provided in Section I of the Guidelines.

§ Foreign bidders shall not be asked or required to form joint ventures with national bidders in order to submit a bid.

§ Bidders located in the same province or city as the procuring entity shall not be given preference over bidders located outside that city or province.

Qualification Criteria

§ The assessment of the qualification of a bidder shall be conducted separately from the technical and commercial evaluation of the bid and in strict adherence to the qualification criteria that shall be clearly specified in the bidding documents.

§ Such assessment shall only take into account a bidder�s capacity and resources to perform the contract, specifically its experience and past performance on similar contracts, capabilities with respect to personnel, equipment and construction and manufacturing facilities, and financial capacity.

Bid Submission, Bid Opening and Bid Evaluation

§ The evaluation of a bid shall be made in strict adherence to the criteria that shall be clearly specified in the bidding documents and quantified in monetary terms for evaluation criteria other than price; merit points shall not be used in bid evaluation.

§ No bidder shall be rejected on the basis of a comparison with the Borrower�s estimate and budget ceiling without the Association�s prior concurrence.

§ A copy of the minutes of the public bid opening shall be promptly provided to all bidders and to the Association with respect to contracts subject to prior review.

§ Neither shall all bids be rejected nor shall new bids invited without Association�s prior written concurrence.

146

Complaints by Bidders and Handling of Complaints

§ The Borrower shall implement the complaint handling mechanism in accordance with Section 7 of the above mentioned Procurement Manual.

Fraud and Corruption

§ The Association shall declare a firm or individual ineligible, either indefinitely or for a stated period, to be awarded a contract financed by the Association, if it at any time determines that the firm or individual has, directly or through an agent, engaged in corrupt, fraudulent, collusive, coercive or obstructive practices in competing for, or in executing, a contract financed by the Association.

Right to Inspect/Audit

§ Each bidding document and contract financed from the proceeds of a Credit shall include a provision requiring bidders, suppliers, contractors and subcontractors to permit the Association, at its request, to inspect their accounts and records relating to the bid submission and performance of the contract and to have said accounts and records audited by auditors appointed by the Association.

§ The deliberate and material violation by a bidder, supplier, contractor or subcontractor of such provision may amount to obstructive practice.

14

7

Atta

chm

ent 2

for

Ann

ex 8

: Pro

cure

men

t Pla

ns

Proc

urem

ent P

lan

for t

he F

irst

18

Mon

ths o

f DFG

G P

roje

ct

For

Pre-

Impl

emen

tatio

n an

d Im

plem

enta

tion

Peri

ods

Task

Man

ager

: Bhu

van

Bhat

naga

r

Gra

nt S

tart

Dat

e:

Gra

nt

End:

Proc

urem

ent A

ccre

dite

d St

aff:

Oith

ip

Mon

gkol

saw

at

I. C

ivil

Wor

ks

C

ontr

act

Pack

age

No.

D

escr

iptio

n of

Con

trac

t Pa

ckag

e

Tot

al

Estim

ated

C

ost (

USD

)

Met

hod

of

Proc

urem

ent

(IC

B/N

CB/

Sh

oppi

ng et

c.)

Dom

estic

Pr

efer

ence

(fo

r IC

B on

ly)

Yes

/No

Rev

iew

by

Ban

k (P

rior

/Pos

t)

Proc

urin

g A

genc

y’s

Nam

e

Estim

ated

D

ate

of

Invi

tatio

n fo

r Bid

s

Estim

ated

C

ontr

act

Sign

ing

Dat

e

Estim

ated

C

ontr

act

End

Dat

e

Com

men

t

PC

O -

WO

RK

S

1

Offi

ce R

enov

atio

n - P

CO

100,

000

NCB

N

o Pr

ior

PCO

thru

IP

A

1-D

ec-0

8 1-

Mar

-09

1-Ju

n-09

PCO

TO

TAL

100,

000

O

WSO

- W

OR

KS

1 O

WSO

cons

truct

ion

in

Takh

mao

, KD

L 50

,000

N

CB

No

Prio

r O

WSO

th

roug

h IP

A 15

-Dec

-08

15-M

ar-0

9 15

-Jul

-09

2 O

WSO

cons

truct

ion

in

Steu

ng S

en, K

TM

50,0

00

NCB

N

o Po

st

OW

SO

thro

ugh

IPA

15-D

ec-0

8 15

-Mar

-09

15-J

ul-0

9

3 O

WSO

con

struc

tion

in

Och

rov,

BM

C 50

,000

N

CB

No

Post

O

WSO

th

roug

h IP

A 15

-Dec

-08

15-M

ar-0

9 15

-Jul

-09

4 O

WSO

cons

truct

ion

in

Peam

Ro,

PV

G

50,0

00

NCB

N

o Po

st

OW

SO

thro

ugh

IPA

15-D

ec-0

8 15

-Mar

-09

15-J

ul-0

9

5 O

WSO

cons

truct

ion

in

Kra

tie, K

RT

50,0

00

NCB

N

o Po

st

OW

SO

thro

ugh

IPA

15-D

ec-0

8 15

-Mar

-09

15-J

ul-0

9

6 O

WSO

cons

truct

ion

in

Mitt

aphe

ap, S

HV

50,0

00

NCB

N

o Po

st

OW

SO

thro

ugh

IPA

15-D

ec-0

8 15

-Mar

-09

15-J

ul-0

9

7 O

WSO

Ren

ovat

ion

in

Thbo

ng K

hmom

, KPC

50

,000

N

CB

No

Post

O

WSO

th

roug

h IP

A 15

-Dec

-08

15-M

ar-0

9 15

-Jul

-09

8 D

ST O

ffice

Ren

ovat

ion

(AC

, net

wor

k, n

ew d

oor)

1,

500

Shop

ping

N

o Po

st

OW

SO

thro

ugh

IPA

15-J

an-0

9 15

-Mar

-09

15-M

ay-0

9

OW

SO

TOTA

L 35

1,50

0

D

FGG

TO

TAL

- CIV

IL

WO

RK

S

451,

500

14

8

II -

Goo

ds

PCO

- G

OO

DS

1 V

ehic

les

90

,000

U

NO

PS

No

Prio

r PC

O

1-N

ov-0

8 1-

Mar

-09

1-Ju

l-09

2 C

ompu

ters

and

Equi

pmen

t (La

ptop

, D

eskt

op, P

rinte

r Las

er B

&

W, P

rinte

r Col

or,

Softw

are

)

15

,600

Sh

oppi

ng

No

Prio

r PC

O th

roug

h IP

A

1-N

ov-0

8 30

-Jan

-09

1-M

ay-0

9

1st S

hopp

ing

in

the y

ear

3 A

udio

Visu

al E

quip

men

t (L

CD

Pro

ject

or, D

igita

l C

amer

a, D

igita

l Vid

eo

Cam

era)

6,00

0

Shop

ping

N

o Po

st

PCO

thro

ugh

IPA

1-

Apr

-09

1-Ju

l-09

1-A

ug-0

9

4 O

ffice

Fur

nitu

re &

Fili

ng

Cab

inet

s

17,1

00

Shop

ping

N

o Po

st

PCO

thro

ugh

IPA

1-

Dec

-08

1-M

ar-0

9 1-

Apr

-09

5 A

ir-Co

nditi

oner

s & w

ater

co

oler

s

11,0

00

Shop

ping

N

o Po

st

PCO

thro

ugh

IPA

1-

Dec

-08

1-M

ar-0

9 1-

Apr

-09

PCO

TO

TAL

- GO

OD

S

13

9,70

0

A

C -

GO

OD

S

1

Pass

enge

r van

38

,000

U

NO

PS

No

Prio

r A

CF

15-J

an-0

9 1-

Jun-

09

31-J

ul-0

9

2 M

otor

cycl

es

1,20

0

Shop

ping

N

o Pr

ior

AC

F th

roug

h IP

A

1-Fe

b-09

1-

Apr

-09

1-M

ay-0

9 1s

t Sho

ppin

g in

th

e yea

r

3 C

ompu

ter a

nd P

erip

hera

ls (L

apto

p co

mpu

ter,

desk

top

com

pute

rs,

Prin

ters

, sca

nner

, N

etw

ork

cabl

e,

Phot

ocop

ies,

tel

epho

ne

sets

)

16,5

35

Shop

ping

N

o Po

st

AC

F th

roug

h IP

A

15-M

ar-0

9 15

-May

-09

15-J

un-0

9

4 A

udio

Visu

al E

quip

men

t (D

igita

l Vid

eo D

igita

l C

amer

a, T

elev

isio

n, D

VD

play

er, V

oice

Rec

orde

r)

3,72

0

Shop

ping

N

o Po

st

AC

F th

roug

h IP

A

15-M

ar-0

9 15

-May

-09

15-J

un-0

9

5 O

ffice

Fur

nitu

re (O

ffice

de

sk, m

eetin

g ta

ble

(set

) m

eetin

g ch

airs

, adj

usta

ble

chai

rs, F

iling

cab

inet

, Li

brar

y Fu

rnitu

re,

misc

ella

neou

s Fur

nitu

re

(loun

ge R

ecep

tion)

10,0

70

Shop

ping

N

o Po

st

AC

F th

roug

h IP

A

15-M

ar-0

9 15

-May

-09

15-J

un-0

9

AC

TOTA

L - A

C -

GO

OD

S

69,5

25

R

NK

- G

OO

DS

1 Pi

ck-u

p D

oubl

e Ca

b

29,0

00

UN

OPS

N

o Pr

ior

RN

K

01 D

ec 0

8 01

Apr

09

01 Ju

n 09

14

9

2 M

otor

cycl

es

8,50

0

Sho

ppin

g

No

Post

R

NK

Th

roug

h IP

A 01

Mar

09

01 M

ay 0

9 31

May

09

3 Co

mpu

ter a

nd o

ther

eq

uipm

ent f

or p

re-

impl

emen

tatio

n

19

,840

S

hopp

ing

N

o Po

st

RN

K

Thro

ugh

IPA

01 N

ov 0

8 01

Jan

09

31 Ja

n 09

PP

F2

4 Co

mpu

ter E

quip

men

t (D

eskt

op, c

ompu

ters

Pr

inte

rs, P

hoto

copi

er)

84

,800

N

CB

No

Prio

r R

NK

Th

roug

h IP

A 01

Nov

08

01 F

eb 0

9 01

Mar

09

1st

NC

B in

the

year

5 Fa

x M

achi

ne, T

elep

hone

hy

brid

and

Tele

phon

e set

9,

870

S

hopp

ing

No

Post

R

NK

Th

roug

h IP

A 01

Feb

09

01 A

pr 0

9 01

May

09

6

Aud

io V

isual

Equ

ipm

ent

(Del

ay U

nit,

Rec

orde

r M

icro

phon

e, W

alki

e-ta

lkie

, Out

side

Broa

dcas

ter,

Qua

lity

radi

o se

ts &

con

nect

ion

for r

elay

, Mix

ers)

81

,900

N

CB

No

Post

R

NK

Th

roug

h IP

A

01 M

ar 0

9 01

Jul 0

9 01

Sep

09

7 N

ews r

oom

stud

io

Ref

urbi

shm

ent (

Pre-

Impl

emen

tatio

n)

8,00

0

Sho

ppin

g

No

Prio

r R

NK

Th

roug

h IP

A 01

Oct

08

01 D

ec 0

8 01

Jan

09

PPF2

, Firs

t Sh

oppi

ng in

the

year

8 A

udio

Visu

al E

quip

men

t (S

tudi

o re

furb

ishm

ent)

12

,000

S

hopp

ing

N

o Po

st

RN

K

Thro

ugh

IPA

01 M

ar 0

9 01

May

09

01 A

ug 0

9

9 A

udio

Visu

al E

quip

men

t (A

nten

na, T

rans

mitt

er

fittin

g &

upg

radi

ng

exist

ing

trans

mitt

ers)

27

0,00

0

ICB

ye

s Pr

ior

RN

K

Thro

ugh

IPA

01 A

pr 0

9 01

Oct

09

31 Ja

n 10

10

Offi

ce F

urni

ture

20,0

30

NCB

N

o Po

st

RN

K

Thro

ugh

IPA

01 D

ec 0

8 01

Mar

09

01 M

ay 0

9

11

Prom

otio

nal M

ater

ials

(T-

Shirt

s)

2,00

0

Sho

ppin

g

No

Post

R

NK

Th

roug

h IP

A 01

Aug

09

01 O

ct 0

9 31

Oct

09

12

Prom

otio

nal M

ater

ials

(bill

boar

ds, p

oste

rs,

stick

ers,

annu

al re

ports

)

18

,000

S

hopp

ing

N

o Po

st

RN

K

Thro

ugh

IPA

01 A

ug 0

9 01

Oct

09

31 O

ct 0

9

13

IT In

frastr

uctu

re

refu

rbis

hmen

t and

in

stalla

tion

4,00

0

Sho

ppin

g

No

Post

R

NK

Th

roug

h IP

A 01

Aug

09

01 D

ec 0

9 31

Jan

10

RN

K

TOTA

L - G

OO

DS

56

7,94

0

MO

I/OW

SO -

GO

OD

S

1

Veh

icle

s 2

50,0

00

UN

OPS

N

o Pr

ior

OW

SO

15-J

an-0

9 15

-May

-09

15-A

ug-0

9

2 M

otor

cycl

es 2

7 33

,750

N

CB

No

Prio

r O

WSO

thru

IP

A

15-J

an-0

9 15

-Apr

-09

1-Ju

n-09

Fi

rst N

CB

in th

e ye

ar

3

Com

pute

r equ

ipm

ent (

53

desk

tops

, 2 la

ptop

s, 16

Pr

inte

rs, 1

Sca

nner

, 7

Cas

h re

gist

ers,

8 Ph

otoc

opie

rs, 1

Fax

M

achi

ne)

104,

700

ICB

Yes

Pr

ior

OW

SO th

ru

IPA

1-

Dec

-08

30-A

pr-0

9 31

-Jul

-09

4 A

udio

Visu

al E

quip

men

t (1

LC

D P

roje

ctor

with

sc

reen

and

1D

igita

l C

amer

a)

2,00

0 Sh

oppi

ng

No

Post

O

WSO

thru

IP

A

1-Ja

n-09

1-

Mar

-09

1-A

pr-0

9

15

0

5

Offi

ce F

urni

ture

(Des

k an

d Ch

airs

, Com

pute

r de

sk, M

eetin

g ta

ble/

chai

r/Fur

nitu

re

info

rmat

ion

boar

ds, F

iling

ca

bine

t and

Saf

es

37,7

25

NCB

N

o Po

st

OW

SO th

ru

IPA

1-

Feb-

09

1-M

ay-0

9 30

-Jun

-09

6 In

form

atio

n ca

mpa

ign

(pos

ters

, lea

flets,

sti

cker

s�)

18,0

00

Shop

ping

N

o Pr

ior

OW

SO th

ru

IPA

1-

Feb-

09

1-M

ay-0

9 30

-Jun

-09

Firs

t Sho

ppin

g in

th

e yea

r

OW

SO

TOTA

L - G

OO

DS

246,

175

M

ON

ASR

I - G

OO

DS

1 Pi

ck-u

p D

oubl

e Cab

(3

Veh

icle

s)

75,0

00

UN

OPS

N

o Pr

ior

MO

NA

SRI

1-Ja

n-09

1-

Mar

-09

1-M

ay-0

9

2 M

otor

cycl

es (9

uni

ts)

13,5

00

Shop

ping

N

o Po

st

MO

NA

SRI

thru

IPA

1-D

ec-0

8 1-

Feb-

09

1-M

ar-0

9

3 G

ener

ator

s (2

unit

s)

3,00

0 Sh

oppi

ng

No

Post

M

ON

ASR

I th

ru IP

A 1-

Dec

-08

1-Fe

b-09

1-

Mar

-09

4

Offi

ce E

quip

men

t (24

de

skto

p an

d 6

lapt

op

com

pute

r, 8

Prin

ters

, 5

Scan

ners

, 30

USB

Fla

sh

driv

es, 8

Pho

toco

pier

s, 5

Fax

Mac

hine

and

24

Aut

ovol

tage

Reg

ulat

or)

66,4

70

NCB

N

o Pr

ior

MO

NA

SRI

thru

IPA

1-D

ec-0

8 1-

Mar

-09

1-M

ay-0

9 Fi

rst N

CB

in th

e ye

ar

5

Aud

io V

isual

Equ

ipm

ent

( 2 L

CD P

roje

ctor

with

Sc

reen

, 6 D

igita

l cam

eras

, 3

Dig

ital V

ideo

Cam

eras

, 9

Dig

ital V

oice

R

ecor

ders

, 2 T

V &

Vid

eo

play

ers)

19,9

50

Shop

ping

N

o Pr

ior

MO

NA

SRI

thru

IPA

1-Ja

n-09

1-

Mar

-09

1-A

pr-0

9 Fi

rst S

hopp

ing

in

the y

ear

6

Offi

ce F

urni

ture

(24

Com

pute

r des

k, 8

Ph

otoc

opie

rs d

esk,

34

Stan

dard

Cha

irs, 6

Fili

ng

Cabi

net,1

safe

, 4

book

shel

ves,

1 re

adin

g ta

ble)

9,84

0 Sh

oppi

ng

No

Post

M

ON

ASR

I th

ru IP

A 1-

Dec

-08

1-Fe

b-09

1-

Mar

-09

7 W

ater

Disp

ense

r (5

uni

ts)

750

Shop

ping

N

o Po

st

MO

NA

SRI

thru

IPA

1-D

ec-0

8 1-

Feb-

09

1-M

ar-0

9

8

Publ

ishin

g of

IEC

M

ater

ials

Foru

m M

eetin

g (C

olor

ed P

oste

rs, C

olor

ed

Broc

hure

s, Le

afle

ts,

Sum

mar

y La

ws,

Bulle

tins,

Law

Boo

ks)

52,5

00

NCB

N

o Po

st

MO

NA

SRI

thru

IPA

1-Fe

b-09

1-

May

-09

1-A

ug-0

9

MO

NA

SRI

TOTA

L - G

OO

DS

241,

010

DFG

G

TOTA

L - G

OO

DS

(ALL

) 1,

264,

350

15

1

III -

Con

sulta

nt S

ervi

ces

PC

O -

CO

NSU

LTA

NT

SER

VIC

ES

1 In

tern

atio

nal

Con

sulta

nt S

peci

alist

1.1

M&

E Co

nsul

tant

Fi

rm

334,

000

QCB

S Pr

ior

PCO

thro

ugh

IPA

1-

Oct-0

8 1-

Mar

-09

1-M

ar-1

3 PP

F2

1.2

Res

earc

h an

d Tr

aini

ng

Org

aniz

atio

n Fi

rm

702,

000

Q

CBS

Prio

r PC

O th

roug

h IP

A

1-Ja

n-09

1-

Jun-

09

1-D

ec-1

3

To

tal I

nter

natio

nal

1,03

6,00

0

2 N

atio

nal C

onsu

ltant

Sp

ecia

list

2.1

Ass

ista

nt P

roje

ct M

anag

er

IC

16,0

00

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

PCO

thro

ugh

IPA

1-

Mar

-08

1-Oc

t-08

31-J

ul-0

9 PP

F2, 8

pe

rson

/mon

th

2.2

Fina

nce

Man

agem

ent

Adv

isor

IC

27,0

00

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

PCO

thro

ugh

IPA

1-

Nov

-08

15-J

an-0

9 15

-Jul

-10

Com

bine

d Pre

-im

plem

enta

tion

and

year

one

2.3

Inte

rnal

Aud

itor

IC

24,0

00

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

PCO

thro

ugh

IPA

1-

Mar

-09

15-M

ay-0

9 31

-Dec

-10

Ann

ual e

xten

sion

to m

eet 3

2 pe

rson

/mon

th

requ

ired

2.4

Proc

urem

ent/A

sset

M

anag

emen

t Offi

cer

IC

13,5

00

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

PCO

thro

ugh

IPA

1-

Nov

-08

15-J

an-0

9 15

-Jul

-10

Ann

ual e

xten

sion

to m

eet 2

4 pe

rson

/mon

th

requ

ired

2.5

Nat

iona

l HRM

& D

A

dvise

r (in

cl M

BPI

over

sight

) IC

12

,000

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

PC

O th

roug

h IP

A

1-N

ov-0

8 15

-Jan

-09

15-J

ul-1

0 16

per

son/

mon

th

requ

ired

2.6

Partn

ersh

ips,

lear

ning

and

Com

mun

icat

ion

Offi

cer

IC

27,0

00

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

PCO

thro

ugh

IPA

1-

Mar

-08

1-Oc

t-08

1-A

pr-1

0 C

ombi

ned P

re-

impl

emen

tatio

n an

d ye

ar o

ne

2.7

Plan

ning

and

M&

E O

ffic

ers

IC

27,0

00

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

PCO

thro

ugh

IPA

1-

Nov

-08

15-J

an-0

9 15

-Jul

-10

Ann

ual e

xten

sion

to m

eet 4

8 pe

rson

/mon

th

requ

ired

2.8

Trai

ning

Coo

rdin

ator

IC

21

,600

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

PC

O th

roug

h IP

A

1-M

ar-0

8 1-

Oct-0

8 1-

Apr

-10

Com

bine

d Pre

-im

plem

enta

tion

and

year

one

2.9

Web

site

des

ign

and

mai

nten

ance

Fi

rm

8,

000

CQ

S Po

st

PCO

thro

ugh

IPA

1-

Mar

-09

1-Ju

n-09

1-

Dec

-09

2.10

Ex

tern

al F

inan

cial

aud

it (M

EF)

Firm

48

,000

LC

S Pr

ior

MEF

th

roug

h IP

A N

/a

1-M

ar-0

9 1-

Mar

-13

MEF

will

pro

cure

A

udit

Bund

ling

and

subj

ect t

o B

ank’

s prio

r re

view

2.11

M

EF F

inan

cial

Ass

istan

t IC

96

,000

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Prio

r PC

O th

roug

h IP

A

1-Ja

n-09

1-

Mar

-09

1-M

ar-1

3

15

2

To

tal N

atio

nal

Con

sulta

nt

23

9,60

0

PCO

TO

TAL

- Con

sulta

nt

Serv

ices

1,

275,

600

A

C -

CO

NSU

LTA

NT

SER

VIC

ES

1.1

Stud

y on

eco

nom

ic v

alue

Fi

rm

40,0

00.0

0 CQ

S Po

st

AC

F th

roug

h IP

A

15-N

ov-0

8 15

-Mar

-09

15-J

un-0

9 Fu

nded

from

PP

F-2

1.2

Stud

y su

stain

abili

ty P

hase

1

(sco

ping

and

TO

R)

(Pre

- im

plem

enta

tion)

IC

10

,000

.00

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

AC

F th

roug

h IP

A

15-N

ov-0

8 15

-Feb

-09

31-M

ar-0

9 Fu

nded

from

PP

F-2

1.3

Stud

y su

stain

abili

ty P

hase

2

(stu

dy it

self)

Fi

rm

30,0

00.0

0 CQ

S Po

st

AC

F th

roug

h IP

A

15-M

ay-0

9 15

-Sep

-09

15-D

ec-0

9

1.4

Susta

inab

ility

and

fu

ndra

ising

Con

sulta

nt

IC

40,0

00.0

0 Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

A

CF

thro

ugh

IPA

1-

Dec

-09

1-A

pr-0

9 31

-Mar

-13

Bud

gete

d fo

r 80

days

of a

ssist

ance

1.5

Stud

y on

dem

and

for A

C se

rvic

es

IC

10,0

00.0

0 Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

A

CF

thro

ugh

IPA

15

-Apr

-09

1-A

ug-0

9 1-

Nov

-09

Budg

eted

as l

ump

sum

1.6

Base

line

study

(Pre

- Im

plem

enta

tion)

Fi

rm

20,0

00.0

0 CQ

S Po

st

AC

F th

roug

h IP

A

15-N

ov-0

8 15

-Feb

-09

31-M

ar-0

9 Fu

nded

from

PP

F-2

1.7

TA p

roje

ct m

anag

emen

t co

nsul

tant

(Pre

- im

plem

enta

tion)

IC

40

,000

.00

SSS

Prio

r M

OI

1-M

ar-0

8 1-

Jun-

08

1-N

ov-0

8

SSS

fund

ed fr

om

PPF-

2. F

urth

er

TA is

expe

cted

to

be re

quire

d du

ring

pre-

effe

ctiv

enes

s.

Pr

e-lis

ted

Con

sulta

nts

for

Labo

r Disp

ute

12

,000

.00

(ave

rage

co

ntra

ct

amou

nt is

4,

000.

00

Cos

ts ar

e di

fficu

lt to

pre

dict

giv

en

the e

mer

genc

y na

ture

of t

he

situa

tions

whe

n su

ch ex

perts

are

requ

ired.

1.8

Shor

t Ter

m L

egal

Exp

ert

IC

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Prio

r A

CF

1-D

ec-0

8 1-

Apr

-09

31-M

ar-1

3 ex

pert

on a

shor

t no

tice

for

emer

genc

y/ur

gent

la

bor d

isput

es

1.9

Shor

t Ter

m L

egal

Exp

ert

IC

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Prio

r A

CF

1-D

ec-0

8 1-

Apr

-09

31-M

ar-1

3 ex

pert

on a

shor

t no

tice

for

emer

genc

y/ur

gent

la

bor d

isput

es

1.10

Sh

ort T

erm

Leg

al E

xper

t IC

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s

Prio

r A

CF

1-D

ec-0

8 1-

Apr

-09

31-M

ar-1

3 ex

pert

on a

shor

t no

tice

for

emer

genc

y/ur

gent

la

bor d

isput

es

2 N

atio

nal

Con

sulta

nts/S

peci

alist

s

90,0

00.0

0

2.1

Prod

uctio

n Fi

rm fo

r (1)

Pu

blic

serv

ice

anno

unce

men

t/Dev

elop

Fi

rm

83,5

00.0

0 SS

S Pr

ior

ACF

15

-Nov

-08

15-F

eb-0

9 31

-Dec

-10

SSS

justi

ficat

ion

to b

e su

bmitt

ed

15

3

spor

t, (2

)Soa

p op

era,

and

(3) T

rain

ing

Vid

eo (4

) m

edia

cons

ulta

nt

2.2

Med

ia m

onito

ring

Firm

2,

500.

00

CQS

Post

A

CF

thro

ugh

IPA

15

-Dec

-08

1-A

pr-0

9 31

-Mar

-10

2.3

Fina

ncia

l aud

it Fi

rm

4,00

0.00

LC

S Po

st

ACF

15

-Jan

-09

1-M

ar-0

9 1-

May

-09

purs

uant

to A

CF

lega

l re

quire

men

ts,

exem

ptio

n fro

m

proc

urem

ent

soug

ht -

see

emai

l fro

m A

CF

to W

B d

ated

5-

Sept

-08

3 A

CF

Reg

ular

Sta

ff

34

,690

.50

3.1

Seni

or L

egal

Offi

cer 1

IC

16

,011

.00

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

ACF

1-

Dec

-08

1-A

pr-0

9 30

-Sep

-10

Repl

acem

ent o

f Ex

istin

g St

aff

Wai

ver f

rom

IP

A s

ough

t

3.2

Proc

urem

ent a

nd A

dmin

O

ffic

er

IC

18,6

79.5

0 Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

A

CF

1-N

ov-0

8 1-

Jan-

09

30-S

ep-1

0

Repl

acem

ent o

f Ex

istin

g St

aff

Waiv

er fr

om IP

A

soug

ht

Dur

ing

pre-

effe

ctiv

enes

s pe

riod,

cost

s fu

nded

from

PPF

2

AC

TOTA

L - C

onsu

ltant

Se

rvic

es

32

6,69

0.50

R

NK

- C

ON

CU

LTA

NT

SER

VIC

ES

1 In

tern

atio

nal

Con

sulta

nt/S

peci

alist

-

1.1

Qua

ntita

tive a

nd

qual

itativ

e re

sear

ch

Firm

50

,000

CQ

S Po

st

RN

K

Thro

ugh

IPA

01 A

pr 0

9 01

Aug

09

01 D

ec 0

9 Se

vera

l pha

ses

2 N

atio

nal C

onsu

ltant

/ Sp

ecia

list

-

-

2.1

HR

Cons

ulta

nt fo

r Pre

Im

plem

enta

tion

and

impl

emen

tatio

n pe

riods

IC

37

,500

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

R

NK

Th

roug

h IP

A 01

Oct

08

01 D

ec 0

8 31

Jan

10

Com

bine

d Pre

-im

plem

enta

tion

and

year

1

2.2

Parti

cipa

tory

con

cept

s, m

etho

d an

d to

ols

F

irm

4,

000

CQ

S Po

st

RN

K

Thro

ugh

IPA

01 F

eb 0

9 01

Jun

09

01 N

ov 0

9

2.3

Mar

ketin

g Co

nsul

tant

IC

25

,000

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

R

NK

Th

roug

h IP

A

01 M

ar 0

9 01

May

09

01 M

ay 1

0

2.4

Fina

ncia

l Spe

cial

ist fo

r Pr

e-im

plem

enta

tion

and

impl

emen

tatio

n pe

riods

IC

25

,840

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

R

NK

Th

roug

h IP

A 01

Oct

08

01 D

ec 0

8 31

Jan

10

Com

bine

d Pre

-im

plem

enta

tion

and

year

1

2.5

Proc

urem

ent S

peci

alist

IC

24

,000

Se

lect

ion

of

Indi

vidu

al

Post

R

NK

Th

roug

h IP

A 01

Nov

08

01 Ja

n 09

01

Jan

10

15

4

Con

sulta

nts

2.6

Phys

ical

Ass

et

man

agem

ent s

peci

alist

IC

8,00

0

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

RN

K

Thro

ugh

IPA

01 M

ar 0

9 01

May

09

01 Ja

n 10

2.7

Web

site

Dev

elop

men

t an

d A

nnua

l rev

amp

Firm

18

,700

CQ

S Po

st

RN

K

Thro

ugh

IPA

01 O

ct 0

8 30

Jan

09

30 M

ar 0

9 PP

F2

2.8

Com

para

tive

anal

ysis

of

new

s cov

erag

e, b

alan

ce,

inde

pend

ent o

f pro

gram

co

nten

t and

FG

Ds t

o as

sess

incr

ease

aw

aren

ess/u

nder

stand

ing

of is

sues

and

inte

rvie

ws

with

sta

ff

Firm

11

,000

CQ

S Po

st

RN

K

Thro

ugh

IPA

01 Ju

n 09

01

Oct

09

01 Ja

n 10

2.9

Esta

blis

h lis

tene

r gro

ups

Firm

24

,000

CQ

S Po

st

RN

K

Thro

ugh

IPA

01 Ja

n 09

01

May

09

01 N

ov 0

9

RN

K

TOTA

L - C

onsu

ltant

Se

rvic

es

22

8,04

0

M

OI/O

WSO

- C

ON

SULT

AN

T SE

RV

ICES

1 In

tern

atio

nal

Con

sulta

nt S

peci

alist

1.1

Base

line

Ass

essm

ent

Firm

60

,000

Q

CBS

Post

O

WSO

th

roug

h IP

A 1-

Jan-

09

1-Ju

n-09

1-

Oct-0

9 Se

vera

l Pha

ses

2 N

atio

nal C

onsu

ltant

Sp

ecia

list

2.1

Web

site

desig

n IC

3,00

0

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

OW

SO

thro

ugh

IPA

1-M

ay-0

8 1-

Aug

-08

1-N

ov-0

8 PP

F2

2.2

Nat

iona

l TA

for P

olic

y (p

re-im

plem

enta

tion)

IC

12

,000

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

O

WSO

th

roug

h IP

A

15-F

eb-0

8 1-

May

-08

31-D

ec-0

8 PP

F2

2.3

2 N

atio

nal T

As f

or D

ST

for P

olic

y IC

28

,800

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

O

WSO

th

roug

h IP

A 15

-Jan

-09

1-M

ay-0

9 30

-Apr

-10

2.4

Nat

iona

l TA

for

Ope

ratio

n (p

re-

impl

emen

tatio

n)

IC

3,

600

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

O

WSO

th

roug

h IP

A 15

-Feb

-08

1-M

ay-0

8 31

-Dec

-08

PPF2

2.5

Nat

iona

l TA

for

Ope

ratio

n IC

10

,800

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

O

WSO

th

roug

h IP

A 15

-Jan

-09

1-M

ay-0

9 30

-Apr

-10

2.6

24 C

hief

s of D

Os (

24

sepa

rate

cont

ract

s)

IC

100,

344

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s

Post

Lo

cal

Elec

tion

Com

mitt

ee

01-J

an-0

9 30

-May

-09

30-M

ay-1

2

Sele

ctio

n by

el

ectio

n (n

on-

gove

rnm

ent

offic

ial)

and

the

Cont

ract

nee

d to

be

mad

e be

twee

n O

WSO

and

eac

h Ch

ief o

f DO

2.7

Stud

y on

Phn

om P

enh

OW

SO

Firm

15

,000

CQ

S Po

st

OW

SO

thro

ugh

IPA

1-M

ay-0

9 1-

Sep-

09

1-Ja

n-10

15

5

2.8

Stud

y on

rura

l OW

SO

Firm

10

,000

CQ

S Po

st

OW

SO

thro

ugh

IPA

1-Ju

l-09

1-N

ov-0

9 31

-Jan

-10

2.9

Clie

nt E

xit s

urve

y, D

O

Aud

it, &

Con

duct

Foc

us

Gro

up D

iscus

sion

(FD

G)

Firm

65

,500

Q

CBS

Post

O

WSO

th

roug

h IP

A 1-

Apr

-09

1-Oc

t-09

15-N

ov-1

0

2.11

Sh

ort V

ideo

on

OW

SO

and

DO

IC

5,00

0

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

OW

SO

thro

ugh

IPA

1-D

ec-0

8 1-

Feb-

09

30-J

ul-0

9

2.12

4

DST

Nat

iona

l C

onsu

ltant

s IC

21

,600

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

O

WSO

th

roug

h IP

A 1-

Nov

-08

1-Ja

n-09

30

-Dec

-09

TOTA

L

TOTA

L - C

onsu

ltant

Se

rvic

es

33

5,64

4

M

ON

ASR

I - C

ON

SULT

AN

T SE

RV

ICES

1 In

tern

atio

nal

cons

ulta

nt/sp

ecia

list

1.1

Com

mun

icat

ion

Adv

isor

for P

re -

Impl

emen

tatio

n an

d Im

plem

enta

tion

Perio

d

Firm

27

2,50

0

QCB

S Pr

ior

MO

NA

SRI

thru

IPA

1-D

ec-0

8 1-

Jun-

09

1-Ju

l-11

Phas

ed C

ontra

ct

1.2

Com

plai

nt h

andl

ing

study

(I

TA)

Firm

60

,000

Q

CBS

Post

M

ON

ASR

I th

ru IP

A 1-

Oct-0

8 1-

Mar

-09

1-Ju

l-09

1.3

Lean

ing

plan

(ITA

) Fi

rm

15,0

00

CQS

Post

M

ON

ASR

I th

ru IP

A 1-

Jan-

09

1-A

pr-0

9 1-

May

-09

1.4

Base

line

Stud

y (P

re

Impl

emen

tatio

n)/M

& E

Fi

rm

115,

000

Q

CBS

Prio

r M

ON

ASR

I th

ru IP

A 1-

Oct-0

8 31

-Mar

-09

1-M

ar-1

3 Ph

ased

Con

tract

2 N

atio

nal C

onsu

ltant

/ Sp

ecia

list

2.1

Nat

iona

l lan

d la

w

Spec

ialis

t NTA

(Pre

- Im

plem

enta

tion)

IC

9,

900

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

M

ON

ASR

I th

ru IP

A 1-

Jun-

08

1-Se

p-08

1-

Nov

-08

2.2

Nat

iona

l Exp

ert l

and

law

IC

18,0

00

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s

Post

M

ON

ASR

I th

ru IP

A 1-

Jan-

09

1-M

ar-0

9 1-

Sep-

09

2.3

CSO

Civ

il So

ciet

y or

gani

zatio

n co

nsul

tant

IC

20

,000

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

M

ON

ASR

I th

ru IP

A 1-

Feb-

09

1-A

pr-0

9 1-

Aug

-09

2.4

Nat

iona

l Pro

cure

men

t Sp

ecia

list

IC

12,0

00

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s

Post

M

ON

ASR

I th

ru IP

A 1-

Nov

-08

1-Ja

n-09

1-

Aug

-09

2.5

Vid

eo P

rodu

ct

Firm

18

,000

CQ

S Po

st

MO

NA

SRI

thru

IPA

1-D

ec-0

8 1-

Mar

-09

1-D

ec-0

9

2.6

Prod

uctio

ns P

ublic

Se

rvic

e A

nnou

ncem

ent

spot

Firm

30

,000

CQ

S Po

st

MO

NA

SRI

thru

IPA

1-M

ar-0

9 1-

Jun-

09

1-D

ec-0

9

2.7

Web

site

Dev

elop

er

Firm

5,00

0

CQS

Post

M

ON

ASR

I th

ru IP

A 1-

Jan-

09

1-A

pr-0

9 1-

Jul-0

9

MO

NA

SRI

TOTA

L - C

onsu

ltant

Se

rvic

es

57

5,40

0

TA

F - C

ON

SULT

AN

T SE

RV

ICES

15

6

1 In

tern

atio

nal

cons

ulta

nt/sp

ecia

list

1.1

Fixe

d-te

rm te

chni

cal

supp

ort

IC

11,5

00

Sele

ctio

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In

divi

dual

C

onsu

ltant

s Po

st

TAF

Imm

edia

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y af

ter

Proj

ect

App

rova

l

TBD

TB

D

2 na

tiona

l co

nsul

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/spec

ialis

t

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Fixe

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chni

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IC

3,

150

Se

lect

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of

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vidu

al

Con

sulta

nts

Post

TA

F Im

med

iate

ly

afte

r Pr

ojec

t A

ppro

val

TBD

TB

D

2.2

Web

-site

Dev

elop

er

IC

1,

500

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

TA

F Im

med

iate

ly

afte

r Pr

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t A

ppro

val

TBD

TB

D

TAF

TOTA

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16

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DFG

G

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ON

SULT

AN

TS (A

LL)

2,

757,

525

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G

OV

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LL

PRO

CU

REM

ENT

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GET

4,

473,

375

AC

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CQS

Sele

ctio

n Ba

sed

on

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sulta

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Qua

lific

atio

ns

IC

In

divi

dual

Con

sulta

nt

IPA

In

tern

atio

nal P

rocu

rem

ent

Age

nt

MEF

M

inist

ry o

f Eco

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d Fi

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e

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I M

inist

ry o

f Int

erio

r SU

MM

AR

Y P

RO

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REM

ENT

PLA

N -

FIR

ST 1

8 M

ON

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MO

NA

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Min

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of N

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nal

Ass

embl

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enat

e Re

latio

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nd In

spec

tion

IA

C

IVIL

W

OR

KS

G

OO

DS

C

ON

SUL-

TA

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TO

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NCB

N

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10

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0

139,

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1,

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600

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0

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One

Win

dow

Ser

vice

O

ffice

A

C

69

,525

326,

691

39

6,21

6

PCO

Pr

ojec

t Coo

rdin

atio

n O

ffice

R

NK

567,

940

228,

040

79

5,98

0

QCB

S Q

ualit

y an

d C

ost B

ased

Se

lect

ion

OW

SO

351,

500

246,

175

335,

644

93

3,31

9

RN

K

Rad

io N

atio

nal O

f K

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ON

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241,

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575,

400

81

6,41

0

OV

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LL

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500

1,26

4,35

0

2,74

1,37

5

4,

457,

225

15

7

Proj

ect P

rocu

rem

ent P

lan

for

Firs

t 18

mon

ths f

or th

e AC

F Pr

ojec

t Nam

e: C

ambo

dia -

Dem

and

for G

ood

Gov

erna

nce P

roje

ct (D

FGG

): C

ompo

nent

1A

- Su

ppor

t to

Arb

itrat

ion

Cou

ncil

(IA

- A

CF)

G

rant

Sta

rt D

ate:

G

rant

En

d:

Task

Man

ager

: Bhu

van

Bhat

naga

r

Proc

urem

ent A

ccre

dite

d St

aff:

Oith

ip

Mon

gkol

saw

at

I. G

oods

Con

trac

t Pa

ckag

e N

o.

Des

crip

tion

of C

ontr

act

Pack

age

Tot

al

Estim

ated

C

ost

(USD

)

Met

hod

of

Proc

urem

ent

(IC

B/N

CB/

Sh

oppi

ng

etc.

)

Dom

estic

Pr

efer

ence

(for

IC

B on

ly)

Yes

/No

Rev

iew

by

Ban

k (P

rior

/Pos

t)

Proc

urin

g A

genc

y’s

Nam

e

Estim

ated

D

ate

of

Invi

tatio

n fo

r Bid

s

Estim

ated

C

ontr

act

Sign

ing

Dat

e

Estim

ated

C

ontr

act

End

Dat

e

Com

men

t

1 Pa

ssen

ger v

an

38,0

00

UN

OPS

N

o Pr

ior

ACF

15

-Jan

-09

1-Ju

n-09

31

-Jul

-09

2

Mot

orcy

cles

1,

200

Sh

oppi

ng

No

Prio

r A

CF

thro

ugh

IPA

1-

Feb-

09

1-A

pr-0

9 1-

May

-09

1st S

hopp

ing

in

the y

ear

3 Co

mpu

ter a

nd P

erip

hera

ls

(Lap

top

com

pute

r, de

skto

p co

mpu

ters

, Prin

ters

, sca

nner

, N

etw

ork

cabl

e, P

hoto

copi

es,

te

leph

one

sets)

16,5

35

Shop

ping

N

o Po

st

AC

F th

roug

h IP

A

15-M

ar-0

9 15

-May

-09

15-J

un-0

9

4 A

udio

Visu

al E

quip

men

t (D

igita

l Vid

eo D

igita

l Cam

era,

Te

levi

sion,

DV

D p

laye

r, V

oice

R

ecor

der)

3,72

0

Shop

ping

N

o Po

st

AC

F th

roug

h IP

A

15-M

ar-0

9 15

-May

-09

15-J

un-0

9

5 O

ffice

Fur

nitu

re (O

ffice

des

k,

mee

ting

tabl

e (se

t) m

eetin

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airs,

adj

usta

ble

chai

rs, F

iling

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bine

t, Li

brar

y Fu

rnitu

re,

misc

ella

neou

s Fur

nitu

re

(loun

ge R

ecep

tion)

10,0

70

Shop

ping

N

o Po

st

AC

F th

roug

h IP

A

15-M

ar-0

9 15

-May

-09

15-J

un-0

9

TOTA

L

69,5

25

15

8

II. C

onsu

ltant

Ser

vice

s

Con

trac

t Pa

ckag

e N

o.

Des

crip

tion

of C

ontr

act

Pack

age

Firm

or

Indi

vidu

al

Tot

al

Estim

ated

C

ost (

USD

)

Met

hod

of

Proc

urem

ent

(QC

BS/Q

BS/L

CS,

etc

fo

r fir

ms

and

IC fo

r in

divi

dual

s)

Rev

iew

by

Ban

k (P

rior

/Pos

t)

Proc

urin

g A

genc

y’s

Nam

e

Estim

ated

D

ate

of

Invi

tatio

n fo

r Pr

opos

al/

CV

s

Estim

ated

C

ontr

act

Sign

ing

Dat

e

Estim

ated

C

ontr

act

End

Dat

e

Com

men

t

1 I

nter

natio

nal

cons

ulta

nt/sp

ecia

list

20

2,00

0.00

1.1

Stud

y on

eco

nom

ic v

alue

Fi

rm

40,0

00.0

0 CQ

S Po

st

AC

F th

roug

h IP

A

15-N

ov-0

8 15

-Mar

-09

15-J

un-0

9 Fu

nded

from

PP

F-2

1.2

Stud

y su

stain

abili

ty P

hase

1

(sco

ping

and

TO

R) (

Pre-

im

plem

enta

tion)

IC

10

,000

.00

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

AC

F th

roug

h IP

A

15-N

ov-0

8 15

-Feb

-09

31-M

ar-0

9 Fu

nded

from

PP

F-2

1.3

Stud

y su

stain

abili

ty P

hase

2

(stu

dy it

self)

Fi

rm

30,0

00.0

0 CQ

S Po

st

AC

F th

roug

h IP

A

15-M

ay-0

9 15

-Sep

-09

15-D

ec-0

9

1.4

Susta

inab

ility

and

fund

raisi

ng

Cons

ulta

nt

IC

40,0

00.0

0 Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

A

CF

thro

ugh

IPA

1-

Dec

-09

1-A

pr-0

9 31

-Mar

-13

Bud

gete

d fo

r 80

days

of

assi

stan

ce

1.5

Stud

y on

dem

and

for A

C se

rvic

es

IC

10,0

00.0

0 Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

A

CF

thro

ugh

IPA

15

-Apr

-09

1-A

ug-0

9 1-

Nov

-09

Budg

eted

as

lum

p su

m

1.6

Base

line

study

(Pre

- Im

plem

enta

tion)

Fi

rm

20,0

00.0

0 CQ

S Po

st

AC

F th

roug

h IP

A

15-N

ov-0

8 15

-Feb

-09

31-M

ar-0

9 Fu

nded

from

PP

F-2

1.7

TA p

roje

ct m

anag

emen

t co

nsul

tant

(Pre

- im

plem

enta

tion)

IC

40

,000

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Prio

r M

OI

1-M

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8 1-

Jun-

08

1-N

ov-0

8

SSS

fund

ed fr

om

PPF-

2. F

urth

er

TA is

expe

cted

to

be r

equi

red

durin

g pr

e-ef

fect

iven

ess.

Pr

e-lis

ted

Con

sulta

nts f

or

Labo

r D

isput

e

12

,000

.00

(ave

rage

co

ntra

ct

amou

nt is

4,

000.

00

Cos

ts ar

e di

ffic

ult t

o pr

edic

t giv

en th

e em

erge

ncy

natu

re o

f the

sit

uatio

ns w

hen

such

expe

rts ar

e re

quire

d.

1.8

Shor

t Ter

m L

egal

Exp

ert

IC

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Prio

r A

CF

1-D

ec-0

8 1-

Apr

-09

31-M

ar-1

3 ex

pert

on a

shor

t no

tice

for

emer

genc

y/ur

gent

labo

r disp

utes

1.9

Shor

t Ter

m L

egal

Exp

ert

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Se

lect

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of

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vidu

al

Con

sulta

nts

Prio

r A

CF

1-D

ec-0

8 1-

Apr

-09

31-M

ar-1

3 ex

pert

on a

shor

t no

tice

for

emer

genc

y/ur

gent

labo

r disp

utes

15

9

1.10

Sh

ort T

erm

Leg

al E

xper

t IC

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s

Prio

r A

CF

1-D

ec-0

8 1-

Apr

-09

31-M

ar-1

3 ex

pert

on a

shor

t no

tice

for

emer

genc

y/ur

gent

labo

r disp

utes

2

Nat

iona

l C

onsu

ltant

s/Spe

cial

ists

90

,000

.00

2.1

Prod

uctio

n Fi

rm fo

r (1)

Pub

lic

serv

ice

anno

unce

men

t/Dev

elop

sp

ort,

(2)S

oap

oper

a, an

d (3

) Tr

aini

ng V

ideo

(4) m

edia

co

nsul

tant

Firm

83

,500

.00

SSS

Prio

r A

CF

15-N

ov-0

8 15

-Feb

-09

31-D

ec-1

0 SS

S ju

stific

atio

n to

be

subm

itted

2.2

Med

ia m

onito

ring

Firm

2,

500.

00

CQS

Post

A

CF

thro

ugh

IPA

15

-Dec

-08

1-A

pr-0

9 31

-Mar

-10

2.3

Fina

ncia

l aud

it Fi

rm

4,00

0.00

LC

S Po

st

ACF

15

-Jan

-09

1-M

ar-0

9 1-

May

-09

purs

uant

to A

CF

lega

l re

quire

men

ts,

exem

ptio

n fro

m

proc

urem

ent

soug

ht -

see

emai

l fro

m A

CF

to W

B d

ated

5-

Sept

-08

3 A

CF

Reg

ular

Sta

ff

34

,690

.50

3.1

Seni

or L

egal

Offi

cer 1

IC

16

,011

.00

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

ACF

1-

Dec

-08

1-A

pr-0

9 30

-Sep

-10

Repl

acem

ent o

f Ex

istin

g St

aff

Wai

ver f

rom

IP

A s

ough

t

3.2

Proc

urem

ent a

nd A

dmin

O

ffic

er

IC

18,6

79.5

0 Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

A

CF

1-N

ov-0

8 1-

Jan-

09

30-S

ep-1

0

Repl

acem

ent o

f Ex

istin

g St

aff

Wai

ver f

rom

IP

A so

ught

D

urin

g pr

e-ef

fect

iven

ess

perio

d, co

sts

fund

ed fr

om P

PF

2 TO

TAL

326,

690.

50

16

0

Proj

ect P

rocu

rem

ent P

lan

for F

irst

18

mon

ths f

or M

ON

ASR

I

Proj

ect N

ame:

Cam

bodi

a - D

eman

d fo

r G

ood

Gov

erna

nce

Proj

ect (

DFG

G):

Com

pone

nt 1

B -

Supp

ort t

o M

ON

ASR

I

G

rant

Sta

rt D

ate:

G

rant

En

d:

Task

Man

ager

: Bhu

van

Bhat

naga

r

Proc

urem

ent A

ccre

dite

d St

aff:

Oith

ip

Mon

gkol

saw

at

I. G

oods

Con

trac

t Pa

ckag

e N

o.

Des

crip

tion

of C

ontr

act

Pack

age

Tot

al

Estim

ated

C

ost

(USD

)

Met

hod

of

Proc

urem

ent

(IC

B/N

CB/

Sh

oppi

ng

etc.

)

Dom

estic

Pr

efer

ence

(fo

r IC

B on

ly)

Yes

/No

Rev

iew

by

Ban

k (P

rior

/Pos

t)

Proc

urin

g A

genc

y’s

Nam

e

Estim

ated

D

ate

of

Invi

tatio

n fo

r Bid

s

Estim

ated

C

ontr

act

Sign

ing

Dat

e

Estim

ated

C

ontr

act

End

Dat

e

Com

men

t

1 Pi

ck-u

p D

oubl

e Cab

(3

Veh

icle

s)

75,0

00

UN

OPS

N

o Pr

ior

MO

NA

SRI

1-Ja

n-09

1-

Mar

-09

1-M

ay-0

9

2 M

otor

cycl

es (9

uni

ts)

13,5

00

Shop

ping

N

o Po

st

MO

NA

SRI

thru

IPA

1-D

ec-0

8 1-

Feb-

09

1-M

ar-0

9

3 G

ener

ator

s (2

units

) 3,

000

Shop

ping

N

o Po

st

MO

NA

SRI

thru

IPA

1-D

ec-0

8 1-

Feb-

09

1-M

ar-0

9

4

Offi

ce E

quip

men

t (24

des

ktop

an

d 6

lapt

op c

ompu

ter,

8 Pr

inte

rs, 5

Sca

nner

s, 30

USB

Fl

ash

driv

es, 8

Pho

toco

pier

s, 5

Fax

Mac

hine

and

24

Aut

ovol

tage

Reg

ulat

or)

66,4

70

NCB

N

o Pr

ior

MO

NA

SRI

thru

IPA

1-D

ec-0

8 1-

Mar

-09

1-M

ay-0

9 Fi

rst N

CB

in th

e ye

ar

5

Aud

io V

isual

Equ

ipm

ent (

2

LCD

Pro

ject

or w

ith S

cree

n, 6

D

igita

l cam

eras

, 3 D

igita

l V

ideo

Cam

eras

, 9 D

igita

l V

oice

Rec

orde

rs, 2

TV

&

Vid

eo p

laye

rs)

19,9

50

Shop

ping

N

o Pr

ior

MO

NA

SRI

thru

IPA

1-Ja

n-09

1-

Mar

-09

1-A

pr-0

9 Fi

rst S

hopp

ing

in th

e yea

r

16

1

6

Offi

ce F

urni

ture

(24

Com

pute

r de

sk, 8

Pho

toco

pier

s des

k, 3

4 St

anda

rd C

hairs

, 6 F

iling

Ca

bine

t,1 sa

fe, 4

boo

kshe

lves

, 1

read

ing

tabl

e)

9,84

0 Sh

oppi

ng

No

Post

M

ON

ASR

I th

ru IP

A 1-

Dec

-08

1-Fe

b-09

1-

Mar

-09

7 W

ater

Disp

ense

r (5

uni

ts)

750

Shop

ping

N

o Po

st

MO

NA

SRI

thru

IPA

1-D

ec-0

8 1-

Feb-

09

1-M

ar-0

9

8

Publ

ishi

ng o

f IEC

Mate

rials

Fo

rum

Mee

ting

(Col

ored

Po

sters

, Col

ored

Bro

chur

es,

Leaf

lets,

Sum

mar

y La

ws,

Bulle

tins,

Law

Boo

ks)

52,5

00

NCB

N

o Po

st

MO

NA

SRI

thru

IPA

1-Fe

b-09

1-

May

-09

1-A

ug-0

9

MO

NA

SRI

TOTA

L - G

OO

DS

24

1,01

0

II. C

onsu

ltant

Ser

vice

s

Con

trac

t Pa

ckag

e N

o.

Des

crip

tion

of C

ontr

act

Pack

age

Firm

or

Indi

vidu

al

Tot

al

Estim

ated

C

ost (

USD

)

Met

hod

of

Proc

urem

ent

(CQ

S/LC

S,

etc

for

firm

s an

d IC

for

indi

vidu

als)

Rev

iew

by

Ban

k (P

rior

/Pos

t)

Proc

urin

g A

genc

y’s

Nam

e

Estim

ated

D

ate

of

Invi

tatio

n fo

r Pr

opos

al/

CV

s

Estim

ated

C

ontr

act

Sign

ing

Dat

e

Estim

ated

C

ontr

act

End

Dat

e

Com

men

t

1 In

tern

atio

nal

cons

ulta

nt/sp

ecia

list

1.1

Com

mun

icat

ion

Adv

isor f

or

Pre -

Impl

emen

tatio

n an

d Im

plem

enta

tion

Perio

d

Firm

272,

500

Q

CBS

Prio

r M

ON

ASR

I th

ru IP

A 1-

Dec

-08

1-Ju

n-09

1-

Jul-1

1 Ph

ased

Con

tract

1.2

Com

plai

nt h

andl

ing

study

(I

TA)

Firm

60,0

00

QCB

S Po

st

MO

NA

SRI

thru

IPA

1-Oc

t-08

1-M

ar-0

9 1-

Jul-0

9

1.3

Lean

ing

plan

(ITA

) Fi

rm

15,0

00

CQS

Post

M

ON

ASR

I th

ru IP

A 1-

Jan-

09

1-A

pr-0

9 1-

May

-09

1.4

Base

line

Stud

y (P

re

Impl

emen

tatio

n)/M

& E

Firm

115,

000

Q

CBS

Prio

r M

ON

ASR

I th

ru IP

A 1-

Oct-0

8 31

-Mar

-09

1-M

ar-1

3 Ph

ased

Con

tract

2 N

atio

nal C

onsu

ltant

/ Sp

ecia

list

2.1

Nat

iona

l lan

d la

w S

peci

alist

N

TA (P

re -

Impl

emen

tatio

n)

IC

9,90

0

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s

Post

M

ON

ASR

I th

ru IP

A 1-

Jun-

08

1-Se

p-08

1-

Nov

-08

2.2

Nat

iona

l Exp

ert l

and

law

IC

18

,000

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

M

ON

ASR

I th

ru IP

A 1-

Jan-

09

1-M

ar-0

9 1-

Sep-

09

2.3

CSO

Civ

il So

ciet

y or

gani

zatio

n co

nsul

tant

IC

20,0

00

Sele

ctio

n of

In

divi

dual

Po

st

MO

NA

SRI

thru

IPA

1-Fe

b-09

1-

Apr

-09

1-A

ug-0

9

16

2

Con

sulta

nts

2.4

Nat

iona

l Pro

cure

men

t Sp

ecia

list

IC

12

,000

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

M

ON

ASR

I th

ru IP

A 1-

Nov

-08

1-Ja

n-09

1-

Aug

-09

2.5

Vid

eo P

rodu

ct

Firm

18,0

00

CQS

Post

M

ON

ASR

I th

ru IP

A 1-

Dec

-08

1-M

ar-0

9 1-

Dec

-09

2.6

Prod

uctio

ns P

ublic

Ser

vice

A

nnou

ncem

ent s

pot

Firm

30,0

00

CQS

Post

M

ON

ASR

I th

ru IP

A 1-

Mar

-09

1-Ju

n-09

1-

Dec

-09

2.7

Web

site

Dev

elop

er

Firm

5,

000

CQ

S Po

st

MO

NA

SRI

thru

IPA

1-Ja

n-09

1-

Apr

-09

1-Ju

l-09

MO

NA

SRI

TOTA

L - C

onsu

ltant

Ser

vice

s

57

5,40

0

IC

:

Ind

ivid

ual C

onsu

ltant

C

QS:

S

elec

tion

Base

d on

C

onsu

ltant

s’ Q

ualif

icat

ions

M

OI:

Min

istry

of I

nter

ior

N

CB

: Nat

iona

l Com

petit

ive

Bid

ding

16

3

Proj

ect P

rocu

rem

ent P

lan

for F

irst

18

mon

ths f

or N

CD

DS

Pr

ojec

t Nam

e: C

ambo

dia -

Dem

and

for

Goo

d G

over

nanc

e Pr

ojec

t (D

FGG

) : C

ompo

nent

1C

� S

uppo

rt to

OW

SO-

DO

Gra

nt S

tart

Dat

e:

Gra

nt

End:

Task

Man

ager

: Bhu

van

Bhat

naga

r

Proc

urem

ent A

ccre

dite

d St

aff:

Oith

ip

Mon

gkol

saw

at

I. C

ivil

Wor

ks

Con

trac

t Pa

ckag

e N

o.

Des

crip

tion

of C

ontr

act

Pack

age

Tot

al

Estim

ated

C

ost

(USD

)

Met

hod

of

Proc

urem

ent (

ICB/

NC

B/

Shop

ping

et

c.)

Dom

estic

Pr

efer

ence

(fo

r IC

B on

ly)

Yes

/No

Rev

iew

by

Ban

k (P

rior

/Pos

t)

Proc

urin

g A

genc

y’s

Nam

e

Estim

ated

D

ate

of

Invi

tatio

n fo

r Bid

s

Estim

ated

C

ontr

act

Sign

ing

Dat

e

Estim

ated

C

ontr

act

End

Dat

e

Com

men

t

1 O

WSO

cons

truct

ion

in

Takh

mao

, KD

L 50

,000

N

CB

No

Prio

r O

WSO

th

roug

h IP

A

15-D

ec-0

8 15

-Mar

-09

15-J

ul-0

9

2 O

WSO

con

struc

tion

in S

teun

g Se

n, K

TM

50,0

00

NCB

N

o Po

st

OW

SO

thro

ugh

IPA

15-D

ec-0

8 15

-Mar

-09

15-J

ul-0

9

3 O

WSO

con

struc

tion

in O

chro

v,

BM

C 50

,000

N

CB

No

Post

O

WSO

th

roug

h IP

A

15-D

ec-0

8 15

-Mar

-09

15-J

ul-0

9

4 O

WSO

con

struc

tion

in P

eam

R

o, P

VG

50

,000

N

CB

No

Post

O

WSO

th

roug

h IP

A

15-D

ec-0

8 15

-Mar

-09

15-J

ul-0

9

5 O

WSO

con

struc

tion

in K

ratie

, KR

T

50,0

00

NCB

N

o Po

st

OW

SO

thro

ugh

IPA

15-D

ec-0

8 15

-Mar

-09

15-J

ul-0

9

6 O

WSO

cons

truct

ion

in

Mitt

aphe

ap, S

HV

50,0

00

NCB

N

o Po

st

OW

SO

thro

ugh

IPA

15-D

ec-0

8 15

-Mar

-09

15-J

ul-0

9

7 O

WSO

Ren

ovat

ion

in T

hbon

g K

hmom

, KPC

50

,000

N

CB

No

Post

O

WSO

th

roug

h IP

A

15-D

ec-0

8 15

-Mar

-09

15-J

ul-0

9

8 D

ST O

ffice

Ren

ovat

ion

(AC

, ne

twor

k, n

ew d

oor)

1,50

0 Sh

oppi

ng

No

Post

O

WSO

th

roug

h IP

A 15

-Jan

-09

15-M

ar-0

9 15

-May

-09

TOTA

L 35

1,50

0

16

4

II. G

oods

Con

trac

t Pa

ckag

e N

o.

Des

crip

tion

of C

ontr

act

Pack

age

Tot

al

Estim

ated

C

ost

(USD

)

Met

hod

of

Proc

urem

ent (

ICB/

NC

B/

Shop

ping

et

c.)

Dom

estic

Pr

efer

ence

(fo

r IC

B on

ly)

Yes

/No

Rev

iew

by

Ban

k (P

rior

/Pos

t)

Proc

urin

g A

genc

y’s

Nam

e

Estim

ated

D

ate

of

Invi

tatio

n fo

r Bid

s

Estim

ated

C

ontr

act

Sign

ing

Dat

e

Estim

ated

C

ontr

act

End

Dat

e

Com

men

t

1 V

ehic

les 2

50

,000

U

NO

PS

No

Prio

r O

WSO

15

-Jan

-09

15-M

ay-0

9 15

-Aug

-09

2 M

otor

cycl

es 2

7 33

,750

N

CB

No

Prio

r O

WSO

thru

IP

A

15-J

an-0

9 15

-Apr

-09

1-Ju

n-09

Fi

rst N

CB

in th

e ye

ar

3 Co

mpu

ter e

quip

men

t (53

de

skto

ps, 2

lapt

ops,

16 P

rinte

rs,

1 Sc

anne

r, 7

Cas

h re

giste

rs, 8

Ph

otoc

opie

rs, 1

Fax

Mac

hine

)

104,

700

ICB

Yes

Pr

ior

OW

SO th

ru

IPA

1-

Dec

-08

30-A

pr-0

9 31

-Jul

-09

4 A

udio

Visu

al E

quip

men

t (1

LCD

Pro

ject

or w

ith sc

reen

and

1D

igita

l Cam

era)

2,

000

Shop

ping

N

o Po

st

OW

SO th

ru

IPA

1-

Jan-

09

1-M

ar-0

9 1-

Apr

-09

5

Offi

ce F

urni

ture

(Des

k an

d Ch

airs

, Com

pute

r des

k,

Mee

ting

tabl

e/ch

air/F

urin

ture

, in

form

atio

n bo

ards

, Fili

ng

cabi

net a

nd S

afes

37,7

25

NCB

N

o Po

st

OW

SO th

ru

IPA

1-

Feb-

09

1-M

ay-0

9 30

-Jun

-09

6 In

form

atio

n ca

mpa

ign

(pos

ters

, le

afle

ts, st

icke

rs�

) 18

,000

Sh

oppi

ng

No

Prio

r O

WSO

thru

IP

A

1-Fe

b-09

1-

May

-09

30-J

un-0

9 Fi

rst S

hopp

ing

in th

e yea

r

TOTA

L

24

6,17

5

III.

Con

sulta

nt S

ervi

ces

Con

trac

t Pa

ckag

e N

o.

Des

crip

tion

of C

ontr

act

Pack

age

Firm

or

Indi

vidu

al

Tot

al

Estim

ated

C

ost (

USD

)

Met

hod

of

Proc

urem

ent

(QC

BS/Q

BS/L

CS,

etc

fo

r fir

ms

and

IC fo

r in

divi

dual

s)

Rev

iew

by

Ban

k (P

rior

/Pos

t)

Proc

urin

g A

genc

y’s

Nam

e

Estim

ated

D

ate

of

Invi

tatio

n fo

r Pr

opos

al/

CV

s

Estim

ated

C

ontr

act

Sign

ing

Dat

e

Estim

ated

C

ontr

act

End

Dat

e

Com

men

t

1 In

tern

atio

nal C

onsu

ltant

Sp

ecia

list

1.1

Base

line

Ass

essm

ent

Firm

60,0

00

QCB

S Po

st

OW

SO

thro

ugh

IPA

1-Ja

n-09

1-

Jun-

09

1-Oc

t-09

Seve

ral P

hase

s

2 N

atio

nal C

onsu

ltant

Sp

ecia

list

2.1

Web

site

desig

n IC

3,00

0

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

OW

SO

thro

ugh

IPA

1-M

ay-0

8 1-

Aug

-08

1-N

ov-0

8 PP

F2

2.2

Nat

iona

l TA

for P

olic

y (p

re-

impl

emen

tatio

n)

IC

12

,000

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

O

WSO

th

roug

h IP

A 15

-Feb

-08

1-M

ay-0

8 31

-Dec

-08

PPF2

16

5

2.3

2 N

atio

nal T

As f

or D

ST fo

r Po

licy

IC

28

,800

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

O

WSO

th

roug

h IP

A 15

-Jan

-09

1-M

ay-0

9 30

-Apr

-10

2.4

Nat

iona

l TA

for O

pera

tion

(pre

-impl

emen

tatio

n)

IC

3,60

0

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

OW

SO

thro

ugh

IPA

15-F

eb-0

8 1-

May

-08

31-D

ec-0

8 PP

F2

2.5

Nat

iona

l TA

for O

pera

tion

IC

10

,800

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

O

WSO

th

roug

h IP

A 15

-Jan

-09

1-M

ay-0

9 30

-Apr

-10

2.6

24 C

hief

s of D

Os (

24 se

para

te

cont

ract

s)

IC

10

0,34

4

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s

Post

Lo

cal

Elec

tion

Com

mitt

ee

01-J

an-0

9 30

-May

-09

30-M

ay-1

2

Sele

ctio

n by

el

ectio

n (n

on-

gove

rnm

ent

offic

ial)

and

the

Con

tract

nee

d to

be

mad

e be

twee

n O

WSO

an

d ea

ch C

hief

of

DO

2.7

Stud

y on

Phn

om P

enh

OW

SO

Firm

15,0

00

CQS

Post

O

WSO

th

roug

h IP

A 1-

May

-09

1-Se

p-09

1-

Jan-

10

2.8

Stud

y on

rura

l OW

SO

Firm

10,0

00

CQS

Post

O

WSO

th

roug

h IP

A 1-

Jul-0

9 1-

Nov

-09

31-J

an-1

0

2.9

Clie

nt E

xit s

urve

y, D

O A

udit,

&

Con

duct

Foc

us G

roup

D

iscus

sion

(FD

G)

Firm

65,5

00

QCB

S Po

st

OW

SO

thro

ugh

IPA

1-A

pr-0

9 1-

Oct-0

9 15

-Nov

-10

2.11

Sh

ort V

ideo

on

OW

SO a

nd D

O

IC

5,00

0

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

OW

SO

thro

ugh

IPA

1-D

ec-0

8 1-

Feb-

09

30-J

ul-0

9

2.12

4

DST

Nat

iona

l Con

sulta

nts

IC

21

,600

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

O

WSO

th

roug

h IP

A 1-

Nov

-08

1-Ja

n-09

30

-Dec

-09

TOTA

L

335,

644

16

6 Pr

ojec

t Pro

cure

men

t Pla

n fo

r Fir

st 1

8 m

onth

s for

RN

K

Proj

ect N

ame:

Cam

bodi

a - D

eman

d fo

r Goo

d G

over

nanc

e Pro

ject

(DFG

G) :

Com

pone

nt 1

D -

Sup

port

to R

adio

Nat

iona

l Kam

puch

ea (I

A -R

NK

)

Gra

nt S

tart

Dat

e:

Gra

nt E

nd:

Task

Man

ager

: Bhu

van

Bhat

naga

r

Proc

urem

ent A

ccre

dite

d St

aff:

Oith

ip M

ongk

olsa

wat

I.

Goo

ds

Con

trac

t Pa

ckag

e N

o.

Des

crip

tion

of C

ontr

act

Pack

age

Tot

al

Estim

ated

C

ost

(USD

)

Pr

ocur

emen

t M

etho

d (I

CB/

NC

B/

Shop

ping

et

c.)

Dom

estic

Pr

efer

ence

(fo

r IC

B on

ly)

Rev

iew

by

Ban

k (P

rior

/Pos

t) Pr

ocur

ing

Age

ncy

Estim

ated

D

ate

of

Invi

tatio

n fo

r Bid

s

Estim

ated

C

ontr

act

Sign

ing

Dat

e

Estim

ated

C

ontr

act

End

Dat

e C

omm

ent

1 Pi

ck-u

p D

oubl

e Ca

b

29,0

00

UN

OPS

N

o Pr

ior

RN

K

01 D

ec 0

8 01

Apr

09

01 Ju

n 09

2 M

otor

cycl

es

8,50

0

Sho

ppin

g

No

Post

R

NK

Th

roug

h IP

A 01

Mar

09

01 M

ay 0

9 31

May

09

3 Co

mpu

ter a

nd o

ther

equ

ipm

ent

for p

re-im

plem

enta

tion

19

,840

S

hopp

ing

N

o Po

st

RN

K

Thro

ugh

IPA

01 N

ov 0

8 01

Jan

09

31 Ja

n 09

PP

F2

4 Co

mpu

ter E

quip

men

t (D

eskt

op,

com

pute

rs P

rinte

rs,

Phot

ocop

ier)

84

,800

N

CB

No

Prio

r R

NK

Th

roug

h IP

A 01

Nov

08

01 F

eb 0

9 01

Mar

09

1st

NC

B in

the

year

5 Fa

x M

achi

ne,

Tel

epho

ne

hybr

id an

d Te

leph

one s

et

9,87

0

Sho

ppin

g

No

Post

R

NK

Th

roug

h IP

A 01

Feb

09

01 A

pr 0

9 01

May

09

6

Aud

io V

isual

Equ

ipm

ent

(Del

ay U

nit,

Rec

orde

r M

icro

phon

e, W

alki

e-ta

lkie

, O

utsid

e Br

oadc

aste

r, Q

ualit

y ra

dio

sets

& c

onne

ctio

n fo

r re

lay,

Mix

ers)

81

,900

N

CB

No

Post

R

NK

Th

roug

h IP

A 01

Mar

09

01 Ju

l 09

01 S

ep 0

9

7 N

ews r

oom

stud

io

Ref

urbi

shm

ent (

Pre-

Impl

emen

tatio

n)

8,00

0

Sho

ppin

g

No

Prio

r R

NK

Th

roug

h IP

A 01

Oct

08

01 D

ec 0

8 01

Jan

09

PPF2

, Firs

t Sh

oppi

ng in

the

year

8 A

udio

Visu

al E

quip

men

t (S

tudi

o re

furb

ishm

ent)

12

,000

S

hopp

ing

N

o Po

st

RN

K

Thro

ugh

IPA

01 M

ar 0

9 01

May

09

01 A

ug 0

9

9 A

udio

Visu

al E

quip

men

t (A

nten

na, T

rans

mitt

er fi

tting

&

upgr

adin

g ex

istin

g tra

nsm

itter

s)

27

0,00

0

ICB

ye

s Pr

ior

RN

K

Thro

ugh

IPA

01 A

pr 0

9 01

Oct

09

31 Ja

n 10

10

Offi

ce F

urni

ture

20,0

30

NCB

N

o Po

st

RN

K

Thro

ugh

IPA

01 D

ec 0

8 01

Mar

09

01 M

ay 0

9

11

Prom

otio

nal M

ater

ials

(T-

Shirt

s)

2,00

0

Sho

ppin

g

No

Post

R

NK

Th

roug

h IP

A 01

Aug

09

01 O

ct 0

9 31

Oct

09

12

Prom

otio

nal M

ater

ials

(bill

boar

ds, p

oste

rs, s

ticke

rs,

18

,000

S

hopp

ing

N

o Po

st

RN

K

Thro

ugh

IPA

01 A

ug 0

9 01

Oct

09

31 O

ct 0

9

16

7

annu

al re

ports

)

13

IT In

frastr

uctu

re re

furb

ishm

ent

and

inst

alla

tion

4,00

0

Sho

ppin

g

No

Post

R

NK

Th

roug

h IP

A 01

Aug

09

01 D

ec 0

9 31

Jan

10

TOTA

L

56

7,94

0

II. C

onsu

ltant

serv

ices

Con

trac

t Pa

ckag

e N

o.

Des

crip

tion

of C

ontr

act

Pack

age

Fir

m o

r In

divid

ual

Tot

al

Estim

ated

C

ost (

USD

)

Proc

urem

ent

met

hod

(QC

BS/

QB

S/L

CS,

etc

fo

r fir

ms &

IC

for

indi

vidu

als)

Rev

iew

by

Ban

k (P

rior

/Pos

t) Pr

ocur

ing

Age

ncy

Estim

ated

D

ate

of

Invi

tatio

n fo

r Pr

opos

al/

CV

s

Estim

ated

C

ontr

act

Sign

ing

Dat

e

Estim

ated

C

ontr

act

End

Dat

e C

omm

ent

1 In

tern

atio

nal

Con

sulta

nt/S

peci

alist

1.1

Qua

ntita

tive

and

qual

itativ

e re

sear

ch

Firm

50,0

00

CQS

Post

R

NK

Th

roug

h IP

A 01

Apr

09

01 A

ug 0

9 01

Dec

09

Seve

ral p

hase

s

2 N

atio

nal C

onsu

ltant

/ Sp

ecia

list

2.1

HR

Cons

ulta

nt fo

r Pre

Im

plem

enta

tion

and

impl

emen

tatio

n pe

riods

IC

37,5

00

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

RN

K

Thro

ugh

IPA

01 O

ct 0

8 01

Dec

08

31 Ja

n 10

C

ombi

ned P

re-

impl

emen

tatio

n an

d ye

ar 1

2.2

Parti

cipa

tory

con

cept

s, m

etho

d an

d too

ls

Firm

4,

000

CQ

S Po

st

RN

K

Thro

ugh

IPA

01 F

eb 0

9 01

Jun

09

01 N

ov 0

9

2.3

Mar

ketin

g Co

nsul

tant

IC

25,0

00

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

RN

K

Thro

ugh

IPA

01 M

ar 0

9 01

May

09

01 M

ay 1

0

2.4

Fina

ncia

l Spe

cial

ist f

or P

re-

impl

emen

tatio

n an

d im

plem

enta

tion

perio

ds

IC

25

,840

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

R

NK

Th

roug

h IP

A 01

Oct

08

01 D

ec 0

8 31

Jan

10

Com

bine

d Pre

-im

plem

enta

tion

and

year

1

2.5

Proc

urem

ent S

peci

alist

IC

24,0

00

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

RN

K

Thro

ugh

IPA

01 N

ov 0

8 01

Jan

09

01 Ja

n 10

2.6

Phys

ical

Ass

et m

anag

emen

t sp

ecia

list

IC

8,

000

Se

lect

ion

of

Indi

vidu

al

Con

sulta

nts

Post

R

NK

Th

roug

h IP

A 01

Mar

09

01 M

ay 0

9 01

Jan

10

2.7

Web

site D

evel

opm

ent a

nd

Ann

ual r

evam

p F

irm

18

,700

CQ

S Po

st

RN

K

Thro

ugh

IPA

01 O

ct 0

8 30

Jan

09

30 M

ar 0

9 PP

F2

2.8

Com

para

tive a

naly

sis o

f new

s co

vera

ge, b

alan

ce, i

ndep

ende

nt

of p

rogr

am co

nten

t and

FG

Ds

to a

sses

s inc

reas

e aw

aren

ess/u

nder

stand

ing

of

issue

s and

inte

rvie

ws w

ith st

aff

Firm

11,0

00

CQS

Post

R

NK

Th

roug

h IP

A 01

Jun

09

01 O

ct 0

9 01

Jan

10

2.9

Esta

blish

liste

ner g

roup

s F

irm

24

,000

CQ

S Po

st

RN

K

Thro

ugh

IPA

01 Ja

n 09

01

May

09

01 N

ov 0

9

TOTA

L

228,

040

16

8

Proj

ect P

rocu

rem

ent P

lan

for F

irst

18

mon

ths f

or T

AF

Pr

ojec

t Nam

e: C

ambo

dia -

Dem

and

for G

ood

Gov

erna

nce P

roje

ct

(DFG

G) :

Com

pone

nt 2

- Su

ppor

t to

Non

-Sta

te In

stitu

tions

- Th

e Asia

n Fo

unda

tion

(IA)

G

rant

Sta

rt D

ate:

G

rant

En

d:

Task

Man

ager

: Bhu

van

Bhat

naga

r

Proc

urem

ent A

ccre

dite

d St

aff:

Oith

ip

Mon

gkol

saw

at

II. C

onsu

ltant

Ser

vice

s

Con

trac

t Pa

ckag

e No.

D

escr

iptio

n of

Con

trac

t Pa

ckag

e

Firm

or

Indi

vidu

al

Tot

al

Estim

ated

C

ost (

USD

)

Met

hod

of

Proc

urem

ent

(CQ

S/LC

S,

etc

for

firm

s an

d IC

for

indi

vidu

als)

Rev

iew

by

Ban

k (P

rior

/Pos

t)

Proc

urin

g A

genc

y’s

Nam

e

Estim

ated

D

ate

of

Invi

tatio

n fo

r Pr

opos

al/

CV

s

Estim

ated

C

ontr

act

Sign

ing

Dat

e

Estim

ated

C

ontr

act

End

Dat

e

Com

men

t

1 In

tern

atio

nal

cons

ulta

nt/sp

ecia

list

1.1

Fixe

d-te

rm te

chni

cal s

uppo

rt

IC

11

,500

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

TAF

Imm

edia

tel

y af

ter

Proj

ect

App

rova

l

TBD

TB

D

2 N

atio

nal

cons

ulta

nt/sp

ecia

list

2.1

Fixe

d-te

rm te

chni

cal s

uppo

rt

IC

3,

150

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

TAF

Imm

edia

tel

y af

ter

Proj

ect

App

rova

l

TBD

TB

D

2.2

Web

-site

Dev

elop

er

IC

1,50

0

Sele

ctio

n of

In

divi

dual

C

onsu

ltant

s Po

st

TAF

Imm

edia

tel

y af

ter

Proj

ect

App

rova

l

TBD

TB

D

TAF

TOTA

L - C

onsu

ltant

Se

rvic

es

11,5

00

16

9

Proj

ect P

rocu

rem

ent P

lan

for F

irst

18

mon

ths f

or P

CO

/MO

I

Proj

ect N

ame:

Cam

bodi

a - D

eman

d fo

r G

ood

Gov

erna

nce P

roje

ct (D

FGG

): C

ompo

nent

3 - C

oord

inat

ion

and

Lear

ning

(IA

- M

OI-P

roje

ct C

oord

inat

ion

Offi

ce (P

CO

))

Gra

nt S

tart

Dat

e:

Gra

nt

End:

Task

Man

ager

: Bhu

van

Bhat

naga

r

Proc

urem

ent A

ccre

dite

d St

aff:

Oith

ip

Mon

gkol

saw

at

I. C

ivil

Wor

ks

Con

trac

t Pa

ckag

e No.

D

escr

iptio

n of

Con

trac

t Pa

ckag

e

Tot

al

Estim

ated

C

ost

(USD

)

Met

hod

of

Proc

urem

ent

(IC

B/N

CB/

Sh

oppi

ng

etc.

)

Dom

estic

Pr

efer

ence

(fo

r IC

B on

ly)

Yes

/No

Rev

iew

by

Ban

k (P

rior

/Pos

t)

Proc

urin

g A

genc

y’s

Nam

e

Estim

ated

D

ate

of

Invi

tatio

n fo

r Bid

s

Estim

ated

C

ontr

act

Sign

ing

Dat

e

Estim

ated

C

ontr

act

End

Dat

e

Com

men

t

1 O

ffice

Ren

ovat

ion

10

0,00

0

NCB

N

o Pr

ior

PCO

th

roug

h IP

A

1-D

ec-0

8 1-

Mar

-09

1-Ju

n-09

TOTA

L

10

0,00

0

II. G

oods

C

ontr

act

Pack

age N

o.

Des

crip

tion

of C

ontr

act

Pack

age

Tot

al

Estim

ated

C

ost

(USD

)

Met

hod

of

Proc

urem

ent

(IC

B/N

CB/

Sh

oppi

ng

etc.

)

Dom

estic

Pr

efer

ence

(fo

r IC

B on

ly)

Yes

/No

Rev

iew

by

Ban

k (P

rior

/Pos

t)

Proc

urin

g A

genc

y’s

Nam

e

Estim

ated

D

ate

of

Invi

tatio

n fo

r Bid

s

Estim

ated

C

ontr

act

Sign

ing

Dat

e

Estim

ated

C

ontr

act

End

Dat

e

Com

men

t

1 V

ehic

les

90

,000

U

NO

PS

No

Prio

r PC

O

1-N

ov-0

8 1-

Mar

-09

1-Ju

l-09

2 C

ompu

ters

and

Equi

pmen

t (La

ptop

, D

eskt

op, P

rinte

r Las

er B

&

W, P

rinte

r Col

or,

Softw

are

)

15,6

00

Shop

ping

N

o Pr

ior

PCO

thro

ugh

IPA

1-

Nov

-08

30-J

an-0

9 1-

May

-09

1st S

hopp

ing

in

the y

ear

3 A

udio

Visu

al E

quip

men

t (L

CD

Pro

ject

or, D

igita

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Annex 9: Economic and Financial Analysis CAMBODIA: Demand for Good Governance Project

A. Introduction 1. This annex presents an assessment of the economic benefits that are expected as a result of the investments planned under the DFGG project in Cambodia. Due to the nature of these investments, which focus largely on governance and institutional capacity building, it has not been possible to undertake a conventional economic analysis of the benefits that might arise from these investments for the Cambodian economy. All project components aim at facilitating economic and/or non-economic opportunities for state and non-state actors to work together in improving governance. An economic cost-benefit analysis might not be able to evaluate the project, as most benefits deriving from it are non quantifiable in terms of economic or financial returns. However, the positive contribution that the project will have on the economy can be summarized as follows. B. Economic Benefits 2. The project is expected to generate economic benefits for Cambodia through its effects on improving governance, which is recognized as an impediment to growth in critical areas of the economy, i.e., private sector development, natural resources management, public financial management, and decentralization. 3. Two of the project�s subcomponents � Component 1A: Support to the Arbitration Council (AC) and Component 1C: Support to the One Window Service Office (OWSO) and District Ombudsman (DO) � involve activities that help to improve the governance of the domestic private sector by improving labor relations and the registration process for small businesses. These therefore also contribute specifically towards improving the local business and investment climate and enhancing productivity (e.g., through reduced threat of worker�s strikes and reduction of transaction costs in getting business licenses) for both small and large businesses. 4. Others elements of the project (viz. Component 1B: Support to the Ministry of National Assembly Senate Relations and Inspection (MONASRI); Component 1D: Support to Radio National Kampuchea (RNK) and Component 2: Support to Non-State Institutions) contribute to improving the general governance environment and domestic accountability which in turn will have a positive effect on the investment climate in the country, rule of law, as well as on the implementation of core governance reforms and achievement of their intended objectives. C. Financial Sustainability 5. Financial sustainability issues are relevant for three of the subcomponents in Component 1, viz. for support to the AC (1A), the OWSO-DO (1C) and RNK (1D). Specific measures to contribute to this financial sustainability are embedded within each of their subcomponent programs and are described below.

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6. For financial sustainability of the AC and the ACF, the AC will make best efforts to ensure that financial contributions from private and public sources, including trade unions and employers� associations, are introduced during the project as part of a partial cost recovery effort at the rate of at least 2.5 percent of project costs for 2009, 5 percent for 2010, 10 percent for 2011, and 15 percent for 2012 of project implementation (see Table 1). These contributions represent approximately 8% of total project costs for the subcomponent. In addition, the AC will be undertaking fund raising activities as well as making proposals for other donor and international financing on a sustained basis to ensure its financial independence is secure.

Table A9.1: Anticipated tripartite contributions to the AC

2008 Year 1 (2.5%) Year 2 (5%) Year 3 (10%) Year 4 (15%)

Total in USD 0 21,598 36,139 69,676 103,674

7. For the OWSO-DO subcomponent, the recurrent costs of running the OWSO and DO offices will be transferred to the RGC at the rate of 50% in Year 3 and 100% in Year 4 of project implementation. Revenues generated through service fees collected at the OWSO offices will be retained at the district level to ensure the financial sustainability and viability of these offices. It is envisaged that through a combination of increased transaction intensity, a slight increase in service fees, and a range of cost reduction/efficiency measures the OWSOs will become financially sustainable by the end of the project. 8. For the RNK, sustainability of its public interest programming is being sought through institutionalization of an Editorial Policy, establishment of a Board of Directors, and retention of advertising revenue. Other options for the RNK�s financial sustainability beyond the DFGG project include: additional funds from Ministry of Information (current annual grant amounts USD 300,000); additional funds from other donors; and revenues from marketing and commercial sponsorships. The presence of successful commercial and NGO radio broadcasters in Cambodia illustrate that external funding sources are viable.

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Annex 10: Safeguard Issues CAMBODIA: Demand for Good Governance Project

A. Background 1. This annex summarizes the issues and the impacts that are likely to arise during implementation of the DFGG project, and outlines the approach proposed for further analysis and mitigation of environmental/social impacts. It has been updated to reflect developments resulting from analyses undertaken by the Government and its consultants, before the appraisal and in the immediate period thereafter, and adjustments to the proposed mitigation approach, agreed between the Government and the Bank at negotiations. B. Civil Works under Components 1 and 3 2. Minor civil works are envisaged in two cases. Under Component 1C, construction and/or renovation of offices for the One Window Service Office (OWSO) and District Ombudsman (DO) that will be established in each of the participating districts is foreseen. Under Component 3, similar small works may be required to accommodate the Project Coordina tion Office and Governance Resource Center. In both cases, it is expected that existing buildings will be rehabilitated and that new construction will be minor. The Implementing Agencies (IAs) have confirmed that all works will be done on existing RGC property and there will be no land acquisition or involuntary resettlement. Civil works have been excluded from potential activities to be funded under Component 2 (Non-state Institutions). 3. Given that these are minor civil works, a set of environmental safeguard guidelines involving a simple three-step procedure of screening, design, and compliance have been established and are included in the Project Implementation Manual (PIM) to be followed by the concerned IAs (see Attachment 1 to this Annex).1 The Bank reviewed the guidelines and found them to be an adequate basis for addressing environmental and social issues that might arise in the context of carrying out civil works under Components 1 and 3 of the DFGG project. These guidelines will be disclosed in the MOI, NCDD and Bank websites. C. Transmitter Repairs under Subcomponent 1D 4. The issue. During project preparation, a technical assessment of the transmission system was undertaken jointly by RNK and AusAID-supported engineers and revealed that (i) the existing 200 kW transmitter was operating at only 20-30 percent of its rated capacity; and (ii) repairs were the least-cost option to increase its power output, so as to allow better coverage in remote areas in the country of the main (200 kW) transmitter and a standby (25 kW) transmitter. RNK requested IDA financing of about US$290,000 for repair (and purchase of spare parts) for the main (200 kW) transmitter and a standby (25 kW) transmitter. The technical assessment report 1 These have been modeled on the guidelines for similar small civil works included in the �Commune/Sangkat Fund Project Implementation Manual� (C/S Fund PIM) that has been endorsed by the RGC through �Decision No. 024 SSR / NCSC� of the NCDD, formerly known as the National Committee to Support the Commune/Sangkat (NCSC), dated May 20, 2005.

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observed however that there could be potential health and safety issues associated with repair and operation of the transmitter and the transmission antenna tower as the current location has become surrounded by residential development which is encroaching on the station site. It therefore recommended that a due diligence analysis be carried out to: (i) determine whether the increase in output could be done within the internationally recognized general public safety limits for radio frequency electromagnetic radiation (EMR)2; and (ii) assess whether, and what, measures would be necessary to ensure safety of workers and nearby residents at the current site. 5. Due diligence analysis. RNK agreed to conduct, during preparation, the recommended due diligence analysis of safety and health issues, with the support of AusAID and Radio Australia. The due diligence analysis concluded that transmission at the maximum output level of 500 kW was possible without creating health risks to households living in the vicinity. Consequently, there will be no need to resettle people living near the radio transmitter due to their level of exposure to EMR. The studies carried out to arrive to this conclusion are discussed below.

6. At the time of the pre-appraisal, RNK advised that, over the medium term, it planned to relocate the transmitter to an unoccupied site. In addition, since full analysis, a final decision, and implementation of relocating the transmitter to a new site would extend over several months, perhaps even longer, they still planned to repair the transmitter at the current site. Accordingly, the following safety and security initiatives were agreed with the Bank and have been undertaken:

(a) RNK ordered a spare part that enabled it do preliminary repairs to the transmitter, increase transmission output to 80-160 kW, and take EMR readings immediately after the repair. The part was delivered and installed in February 2008. A technical consulting firm was contracted by Radio Australia to measure and evaluate the EMR levels on the RNK site. Their report was submitted on March 13, 2008.

(b) Hazard signs (in both Khmer and English) were posted on the front and rear of the

power transformer cabinet, as recommended in the first EMR assessment report.

(c) RNK committed to operate the transmitter at its current location at output levels that did not violate acceptable general public safety limits, to submit itself to independent monitoring of EMR levels, and to publicly disclose the information.

(d) RNK started to explore the feasibility of relocating the transmission facilities to a new

location, away from populated areas, and to canvass alternative sites, including potential environmental and social impacts at each location.

7. The first EMR assessment report indicated that, at 100 kW transmission level, dwellings along the East and South walls of the RNK site would be subject to EMR above the safe limits. The report recommended that output power should not exceed 100 kW at any time at the present location; the antenna should be relocated to a new site, away from populated areas; and access of

2 As specified in International Commission on Non-Ionizing Radiation Protection (ICNIRP) Guidelines: Guidelines for limiting exposure to time-varying electric, magnetic, and electromagnetic fields (up to 300 Ghz). Health Phys., 98:494-522, 1998.

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the general public to the site should be restricted. However, given its limited scope, this first EMR assessment report was not able to provide a clear understanding of the current or potential health and safety impacts associated with operation of the transmitter at the current site, nor to identify and assess options to address such impacts. 8. The appraisal mission held extensive discussion with the Government, Radio Australia and AusAID on the urgency of addressing potential health risks at the current site in the event that the concerns raised by the first EMR report were to be confirmed. Accordingly, the scope of a three-part EMP (see Attachment 2 to this Annex), to be carried out during the pre-implementation period, was discussed and agreed. The EMP would comprise the following:3

(a) Part 1: Assessment of EMR readings, potential health impacts and mitigation options associated to operation of the transmission tower at the current site at different levels of output.

(b) Part 2: In case that the health and safety issues raised by the first EMR assessment were to be confirmed, detailed solutions would need to be developed to allow for continued transmission while avoiding or mitigating health impacts to workers and household (should these be needed), through: (i) technical options at the current location, at an alternative site, or through other mechanisms or technology on a temporary basis; or (ii) mitigation measures (social and/or environmental) to address the health risks at the current RNK broadcasting site until the antenna could be moved to a permanent location. If, however, the findings of Part 1 were to reveal that transmission can be increased at the current site without risk to workers and households in the vicinity, Part 2 of the proposed EMP would not need to be pursued.

(c) Part 3: In case that the health and safety issues raised by the first EMR assessment were to be confirmed or if the Government eventually decides to relocate the transmission complex to a new site away from populated areas for other reasons (such as the rapid urban growth in the vicinity of the transmission site), a set of activities would be carried out to ensure that potential environmental and social issues that might arise are identified and adequately addressed.

9. AusAID and Radio Australia agreed to support RNK in undertaking Part 1 of the proposed EMP and accordingly contracted another technical consulting firm to (i) review the first EMR assessment report; (ii) conduct a more thorough site evaluation, including new EMR readings; and (iii) carry out a coverage study for transmission from the current Phnom Penh site, an existing Battambang transmission site, and a greenfield site on the outskirts of Phnom Penh. 10. In mid-May 2008, the second consulting firm submitted its peer review of the first EMR assessment report, indicating that this report had many serious errors and omissions, and recommending that it be set aside. The peer review report was discussed with the first EMR

3 Parts 2 and 3 of the EMP were conditional on the results of Part 1, and on confirmation of the Government�s plans (including timing) for relocation of the transmission complex to a new site. These TORs have been accordingly adjusted as findings of the Part 1 study emerged, and discussions with the Government evolved.

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study consultants who admitted that their quality assurance procedures were bypassed, their report was inconclusive, and should be set aside. 11. The transmission site was resurveyed by the second consulting firm to measure the EMR levels inside and outside the fence line. The findings, based on measurements at 80 and 160 kW output, were that RNK could operate up to the full nominal capacity of its 200 kW transmitter on the current site without any health implications to the households living nearby. This follow-up review also indicated that, based on a modeling exercise scaling up from the measurements taken on the ground, transmission at 500 kW output level was possible (and would be the maximum admissible output level) without imposing health risks to households living in the vicinity. 12. Conclusion of the independent evaluation. Despite the disclaimer issued by the first consulting firm and so as to better advise the client and avoid risks, the Bank commissioned a third party to conduct an independent evaluation (based on a desk review) of the two studies, given that they had yielded contradictory results on issues of a specialized technical nature. TORs for this independent evaluation called for: (i) advice on the appropriate standards to be used in assessing the adequacy of EMR exposure leve ls in terms of health and safety risks; (ii) review of the methodologies and equipment used to conduct the EMR readings; (iii) review and comment on measurement results and on health and safety implications; (iv) evaluation of the recommendations of two reports; and (v) advice on acceptance of the findings of the studies conducted thus far and on next steps. The independent evaluation concluded that the findings of the second report could be accepted and that that report contained appropriate recommendations for general public and occupational radio frequency safety. Given the resolution of this safeguards issue, the repairs/refurbishing of the transmission tower are included in the Project and relocation could be considered in due course. 13. Currently the project includes funding for repair of the transmitter. Similarly, since achievement of Component 1D�s project development objectives is intrinsically dependent on transmission of programs, relocation of the tower is included in the project description. However, should the Government decide to relocate the transmitter, because of the further encroachment by squatters at the current transmission site or for any other reason, no expenses related to relocation shall be eligible for financing under the project until the EMP is approved by the Government and the Bank.4 In view of this and building on the assessments undertaken during project preparation, should there be a need to further repair the RNK transmitter in the future, it was agreed (and the negotiated Financing Agreement accordingly stipulates) that RNK will prepare and implement all activities consistent with all Bank policies. 14. Public disclosure. The MOI posted the agreed safeguards framework (presented in this Annex) and the relevant assessment reports on its website, including the attached environmental safeguard guidelines for civil works.5 The relevant safeguards-related documents were also sent to the Bank Infoshop. In addition, it was agreed at negotiations that the Government shall:

4 RNK will put up hazard signs ("Do not climb" and "No unauthorized access") to the site compound fences and gates and improve access restrictions, so as to ensure the general public safety in the immediate area around the mast and prevent further squatting at the site. 5 See http://www.interior.gov.kh/dfgg_public_disclosure.asp

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(a) in the case of the repair and operation of the existing RNK transmitter on the current

site, disclose to the public the detailed mitigation plans at the current site; and (b) carry out public consultations on the said mitigation plans, as the case may be, before

implementation of mitigation measures at each of the said site.

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Attachment 1 to Annex 10 Environmental Safeguard Guidelines for Small Civil Works

Demand for Good Governance Project A. Nature of Expected Civil Works The Demand for Good Governance Project (DFGG) project will be undertaking small scale civil works and construction activities in two scenarios: Component 1C: construction and/or renovation of the One Window Service Office (OWSO) and District Ombudsman (DO) Offices and Component 3: similar small civil works for setting up and renovating the Project Coordination Office (PCO) and the proposed Governance Resource and Learning Center within it. Under Component 1C, the civil works will involve the construction of new office buildings or renovation of existing government office buildings to set up the OWSO and DO offices in 21 urban and one rural district across the country (one for each province). These are expected to be small one to two-storey buildings with office space to accommodate approximately 15-20 persons. Likewise, the civil works in Component 3 will involve renovating the existing offices within the Ministry of Interior (MOI) building complex in Phnom Penh, with the possibility of new construction for setting up the proposed Governance Resource and Learning Center. In both cases, the land used for these civil works will be existing public/government land and therefore no private land acquisition or involuntary resettlement is foreseen. B. Purpose of these Guidelines Given the nature and small scale of the proposed civil works under the project, a formal environmental assessment report was not considered necessary. However, as in most cases the construction/renovation activities are going to be undertaken in urban areas there are likely to be some concerns relating to inconvenience or nuisance to surrounding areas during construction which will require careful construction planning and management. Therefore, for the purpose of enhancing environment friendly measures and mitigating any adverse impacts caused by the construction activities, these Environmental Safeguard Guidelines for small civil works funded under this project have been prepared and shall be implemented by the concerned implementing agencies (IAs) � the District Support Team (DST) of the National Committee for Management of Decentralization and De-Concentration (NCDD) for Component 1C and by the PCO in MOI for Component 3. The Environmental Safeguard Guidelines for Small Civil Works aim to establish some simple rules, procedures and institutional arrangements to be utilized under the DFGG project with regard to identification, monitoring and mitigation of possible adverse environmental impacts with respect to small civil work activities undertaken in the DFGG project. The responsible IAs are expected to follow these procedures and keep the records and documentation for later supervision. These Guidelines are drawn from and aligned with the overarching guidelines on safeguards with regards to construction and civil works as laid out in the �Commune/Sangkat Fund Project

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Implementation Manual (C/S Fund PIM)� that has also been used by the Bank�s Rural Infrastructure and Local Governance (RILG) project. The current version of the C/S Fund PIM has been endorsed by the Royal Government of Cambodia (RGC) through �Decision No. 024 SSR / NCSC� of the NCDD6 dated May 20, 2005. The Guidelines are also consistent with the requirements of the Bank Environmental Safeguards Operational Policy (O.P.4.01). It should be noted, however, that these Guidelines are meant to be a �dynamic� document, i.e., it is expected that they will be reviewed and modified as required, ideally during each Annual Review of Project Implementation, to ensure that they are continually improved and continue to maintain relevance. C. Three-Step Procedures to be Followed The concerned IAs are expected to carry out the following simple three-step procedures in undertaking any civil works under the DFGG project. These three steps involve conducting a site environmental safeguard impacts analysis, performing a checklist of some environment friendly construction design criteria, and establishing a standardized environmental management plan (EMP). They are described in more detail below. Step 1: Preparation of �Construction Site Checklist� to identify Key Environmental Safeguard Issues As a first step prior to construction/renovation, the concerned IA must develop and complete a simple Construction Site Checklist to determine possible environmental impacts/nuisance for every civil work proposal. The Construction Site Checklist aims to identify and prepare for any environmental safeguards issues incurred by the construction and/or renovation. The checklist will screen out and ensure the site for the civil works has appropriate conditions and characteristics of environmental, architectural, and cultural value and physical land use. In case any potential adverse environmental impacts are identified then they will require input into the EMP (step 3 below). A sample of the Construction Site Checklist is provided below. This should be completed by the designated Technical Officer in charge of managing civil works in the concerned IA.

Checklist 1: Sample Format for Construction Site Checklist General Information Name of Project Name of site for office rehabilitation/construction Name of engineer/ technical officer Person(s) who conducted the studies Date of Site Study Completed The date on which the on site studies were completed. Information Source Name and contact of person(s) interviewed/met Proposed Output Office rehabilitation or new office construction

Environmental Issues Yes No Unknown Remark/Recommended Action

1. Adequacy of space for construction 2. Adequacy of access to the construction 3. Adequacy of space to build/expand the

6 Formerly known as the National Committee to Support the Commune/Sangkat (NCSC).

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building space in the future 4. Freeness from squatters or titling conflict

with local residents

5. Potential interruption or limitation of access to dwelling or business on the site

6. Potential impact to high architectural or cultural value on the site or within the immediate vicinity

7. Potential deterioration of urban quality and/ property value in the immediate vicinity. (For urban setting)

8. Interruption or limitation of access to sidewalks, power and telephone lines, water and sewerage, sanitation system, and other environmental services.

9. Encroachment/reduction of gardens or green areas.

10. Land used is Public/Government Owned* 11. Resettlement of families or businesses due

to land use for construction

12. Flood on the site in the wet season (write down how deep and how long it usually floods on the site)

Others (describe)

Summary of Overall Assessment: Prepare a short summary of an overall assessment based on the site screening results above. What recommendation/suggestion is made on the specific civil works project? *Note that no buildings or construction can be undertaken on land that is privately owned or on which there is any form of land dispute. If the Construction Site Checklist reveals this then an alternative site will have to be considered by the concerned IA. Following the completion of this Construction Site Checklist and after approval from the Project Directors of the concerned IAs, the process for preparing adequate bidding documents to process the civil works would commence. The procurement procedures for undertaking the civil works have been described separately in the Procurement Annex of the Project Appraisal Document (PAD) of the DFGG project and in the Procurement Plans for Component 1C and 3. Step 2: Preparation of Checklist on Environmentally Friendly Construction Design Criteria to be Used The second step in the environmental safeguards procedures for the civil works would involve completion of a checklist of some specific design criteria to be adopted in the process of construction and/or renovation by the chosen contractors. These design criteria involve certain environmentally friendly/enhancing elements that would avoid or minimize incurrence of adverse environmental impacts. These design criteria include ensuring of appropriate ventilation, lighting and sanitation facilities, as well as recommendations on use of environmentally friendly materials. It is not expected that all of these design criteria would be adopted in each case, but

182

the effort should be to adapt as many as possible in the engineering and architectural design of the proposed civil works. This checklist should be completed by the proposed contractors to confirm the use of the environment enhancing design criteria during construction/renovation of the proposed offices. A sample of the Checklist on Environmentally Friendly Design Criteria is provided below.

Checklist 2: Sample Format for Checklist on Environmentally Friendly Design Criteria

General Information Name of Project Name of site for office rehabilitation/construction Name of engineer/ technical officer Person(s) who conducted the studies Date of Site Study Completed The date on which the on site studies were completed. Information Source Name and contact of person(s) contacted Proposed Output Office rehabilitation or new office construction

Design Criteria Yes No Unknown Remark 1. Maximizing the blending of architectural design to

important cultural site next or nearby to the site.

2. Maximizing natural light in order to minimize artificial light needs.

3. Maximizing natural ventilation systems, minimizing the necessities of air conditioning

4. Maximizing rain water storage for the irrigation of gardens and green zones in the office (where applicable)

5. Promoting the usage of environment-friendly materials (avoid asbestos and other hazardous or toxic materials)

6. Planting of native species in gardens and green areas in the offices (where applicable)

7. Stabilization of slopes using vegetative measures (where required)

Others (describe)

Summary of Overall Assessment: Prepare a short summary of an overall assessment based on the design criteria screening results above. What recommendation/suggestion is made to the project? The above checklist should be provided to the Technical Officer in the concerned IA for review and subsequently to the Project Director of the concerned IA for approval. Step 3: Preparation of a Standardized Environmental Management Plan (EMP) After completing the construction site and environment-friendly design criteria screening using the above checklist formats, the last step in the environmental safeguards procedures would be the development of a simple EMP that should be treated as environmental specifications for construction.

183

As the small-scale construction activities envisaged might cause impacts and nuisance to nearby surroundings, they need to be avoided or mitigated through application of good engineering practices and strict environmental safeguards measures including use of environment-friendly construction materials and equipments, waste management techniques especially for construction dust and debris, noise control, site management, safety controls, provision of clean water and sanitation facilities etc. A sample EMP table covering potential adverse environmental problems and corresponding mitigation measures is provided below. It is expected that all Contractors working on civil works under Component 1C and 3 will adhere to this as part of the bidding specifications and the Contractor’s Work Plan. This EMP should include the environmental safeguards issues that may occur during construction and solutions or what the contractor must do to solve these problems and should draw on the two checklists developed under Steps 1 and 2. Table A10.1: Sample Format for Environmental Management Plan for Small Civil Works

Phase Issue Measure

Site Screening

Adequate space and access - possible interruption within its vicinity; other issues captured in Construction Site Checklist.

The selection should avoid sensitive environment and land issues which may be caused by the construction and/or renovation; other measures recommended in the Construction Site Checklist should be adopted.

Design Drawing and planning the construction of towers by adapting to adjoining physical landscape and minimizing possible environmental issues; other environmentally friendly design features identified in Step-2.

Adversely Environmental Minimization Measures should be introduced in the construction design; other environment enhancing design criteria identified in Step-2 as feasible to be incorporated

Dust: Dust, debris, and particulate materials from the construction will blow to surrounding structures and/ causing nuisance to surrounding families and businesses, especially to vulnerable people (children, elders).

The contractor will spray water to reduce the dust when the weather is dry and periodically clean stagnant debris.

Noise: Noise from the construction machinery and equipment will disturb to others especially in areas with hospitals, homes for the elderly, and schools.

Contractor will use environment-friendly construction materials and equipments and limit construction hours to minimize possible disturbance to local livelihood. Contractor will fence off Construction site to reduce any possible annoyance to neighbors.

Construction wastes : the adequate disposal of waste materials and hazardous materia ls (fibro-cement, fuel, oil, cement etc).

Contractor will reduce waste generation whenever feasible. Contractor should separate hazardous wastes from other wastes and handle them according to established environmental guidelines. Contractor should separate recyclable wastes from non-recyclable ones. All wastes should be properly handled. Any illegal waste dumping or burning will be prohibited.

Construction

Disturbance: Nearby offices and residents will be disturbed by prolonged construction.

The contractor will perform construction activities within appropriate time frame which does not disturb work of officers or living of local residents.

184

Sanitation: Sanitation for the workers at the construction site is inadequate leading to unclean working environment.

The contractor will provide temporary sanitation for the workers.

Contamination: Contamination of water supply or source within the vicinity of the site is caused by the construction activities.

The contractor will implement necessary measures to prevent possible contamination to water supply or source in the surrounding area.

Pedestrian security and traffic congestion: Construction site may cause safety concern for pedestrians, especially for school children, during construction. Similarly, traffic congestion during construction may be caused due to the increase of heavy traffic (of the construction itself and from traffic detours) in high traffic avenues and exit ramps.

The contractor will fence of the site for general safety measures; traffic re -routing (if required) should be appropriately managed and planned for.

Interruption of services: Water, electricity, telephone, and bus routes may be interrupted during construction.

The contractor will implement necessary measures to prevent any interruption to access to public services.

Informing the public: People would need to know about construction and work schedules, interruption of services, or traffic.

The contractor will put signboard summarizing the construction activities and schedule for completion of tasks.

Post-Construction

Site Clearing: Cleaning the site after construction and disposing wastes properly so that they are not dangerous to the environment.

The contractor will clean the site carefully and remove all waste materials as spelled out in the construction bidding.

Others Other identified environmental safeguard issues.

All these measures should be included in bidding document and contractor�s work plan as part of the specifications for construction that will be followed to address any potential environmental safeguard concerns. D. Institutional Arrangements As noted above, each concerned IA (i.e. the DST and the PCO) should appoint a Designated Technical Officer who will manage the proposed civil works under their respective components. Separately a designated Safeguards Officer should be appointed in each IA who will be responsible for scrutinizing the environmental safeguards issues involved in each civil works project. The ultimate responsibility for approvals and ensuring adherence to these Environmental Safeguards Guidelines lies with the Project Directors in the concerned IAs. A summary of the institutional arrangements for following the above procedures is given below: 1. Construction Site Checklist: The designated technical officer(s) in DST/PCO are responsible for completing and sending results of the environmental safeguards issues screening done in the Construction Site Checklist with explaining his or her recommendation to DST/PCO Project Director for review and endorsement. The final review and clearance should be performed by the DST/PCO Project Directors in consultation with the designated Safeguards Officer(s). 2. Checklist for Environmentally Friendly Design Criteria: The designated Safeguard Officer(s) from DST/PCO should complete the Environmentally Friendly Design Criteria checklist in collaboration with the chosen contractors for each piece of civil works. These design criteria

185

should be reviewed and cleared with the DST/PCO Project Directors and should form part of the bidding documents and Contractor Work Plan. 3. EMP Development and Clearance: The designated Safeguards officer(s) and technical officer(s) are jointly responsible for ensuring which elements of the sample EMP provided above apply in specific civil works projects. They should analyze and make a summary of the findings from the Construction Site and Design Criteria checklists above and provide their recommendation on any of a few simple bases:

• The construction will not have any unacceptable impact on the environment; • The construction design should be changed to avoid unacceptable impact on the

environment; • The construction should not be implemented, because the impact on the environment will

be bigger than the benefit from the project. Oversight and final clearance for the EMP will be provided by the DST/ PCO Project Directors for Components 1C and 3 respectively. The EMP will then become part of the Contractor Work Plan and shall be referred to in their contracts for each piece of civil works. E. Monitoring, Supervision and Reporting The selected contractor(s) must submit their completed work plans to the DST and PCO prior to initiating their contract for each piece of civil works. The Contractor’s Workplan should have incorporated the agreed Environmentally Friend Design Criteria being used as well as the agreed EMP described above, clearly listing:

(a) environmental problems that may occur during construction; and (b) solutions or what the contractor must do to solve these problems

The designated Technical Officer(s) and Safeguards Officer(s) will help the Contractor and DST/PCO to make the workplan. The DST/PCO Project Directors must approve the work plan before signing the contract. The designated Technical Officer(s) and Safeguards Officer(s) are responsible for supervising the adherence to the agreed EMP by the selected contractors in each civil works project through periodic audits. The designated Technical Officer(s) and Safeguards Officer(s) should update/improve the site and construction design criteria checklists and EMP table above on annual basis (or even semester period) basing on experience and findings from the project implementation and supervision. They should present these for approval during the Annual Review of Project Implementation. Environmental Safeguards Specialist(s) in the Bank will separately review adherence to the Environmental Safeguards guidelines in the civil works projects during their annual supervision mission. All records of the above Environmental Safeguards procedures, including the relevant checklists and EMPs, shall be kept by the concerned IA for review during these supervision missions

186

Attachment 2 to Annex 10 Environmental Management Plan for the RNK Component

Proposed Scope Objective of the EMP

(a) Identify potential health and safety impacts associated with operation of the RNK transmitter in its current location and prepare a set of mitigation measures to address such impacts until the RNK broadcasting complex is relocated to a new site; and (b) Establish a plan for relocation of the transmitter complex.

Part 1. Assessment of health impacts and mitigation options for RNK operation at its current site Based on concerns initially raised by a study conducted in mid-2007 to explore options for increase of transmission output for RNK, two assessments were conducted to measure and evaluate the radio frequency EMR levels at the current broadcast site. These assessments were called upon to address (in part or in total) the following questions:

(a) test and establish the geographic spread of the EMR at the RNK site at different levels of transmitter output; (b) clarify what type of occupation and frequency of exposure would be acceptable in areas with EMR levels between 10 and 20mW/cm2 and in areas with EMR levels between 2 and 10mW/cm2; (c) clarify what would be the potential health effects, on households and workers, of exceeding safe radio frequency EMR limits and over what time periods of exposure; (d) in the event that safety risks resulting from current or proposed higher levels of operation were confirmed, identify and assess, on a preliminary basis, what technologies could potentially be applied to reduce transmitter output and EMR exposure at the current site so as to avoid unsafe exposure of households in the vicinity of the transmission tower and RNK�s transmission site workers.

Note: This part of the EMP was undertaken in the first half of 2008. Although the assessments were conducted by well-reputed firms, the EMR readings, interpretations, and recommendations of the two studies differed significantly. While the first study raised serious concerns and recommended that transmission output not be raised beyond current levels, the second consulting firm strongly questioned the methodology used in the first study and, upon repetition of EMR readings, found that the concerns raised were unfounded and that transmission output capacity could be raised up to 500 kW. Although the first firm subsequently withdrew its report, given the specialized technical nature of the issues and the potential risks to workers and residents in the vicinity of the transmitter site, the Bank decided to commission a suitable third party to conduct an independent evaluation (based on a desk review) of the two studies, covering the following:

187

(a) advise on the appropriate standards to be used in assessing the adequacy of

EMR exposure levels in terms of health and safety risks; (b) review the methodologies and equipment used to conduct the EMR readings;

(c) review and comment on measurement results and on health and safety

implications;

(d) evaluate the recommendations of the reports; and

(e) advise the Bank and the Government on acceptance of the findings of the studies conducted thus far and recommend adjustments to Parts 2 and 3 of the EMP as appropriate.

The results of this independent evaluation supported the findings and recommendations of the second consulting firm. Part 2. Detailed design of an interim mitigation plan If health and safety issues were confirmed during Part 1 of the EMP (and assuming that the timetable for relocation of the RNK compound could take up to two years), RNK would prepare an interim mitigation plan. Since the third party assessment confirmed that the transmission power levels can be increased at the current site without health risks to workers and households in the vicinity, Part 2 of the proposed EMP was not pursued.1 Nonetheless, the following elements contained therein have been maintained as part of RNK�s work program:

(a) RNK will undertake a number of measures to improve general public and workers safety at the site by improving the hazard signage and restricting access around the AM mast;

(b) in the case of the repair and operation of the existing RNK transmitter on the

current site, RNK shall disclose to the public the detailed mitigation plans at the current site; and

(c) in the case of the repair and operation of the existing RNK transmitter on the current site, RNK shall carry out public consultations before implementation of mitigation measures at the site.

Part 3: Relocation of the Broadcasting Complex Even though it has been confirmed that the transmission power levels can be increased at the current site without health risks to workers and households in the vicinity, it is possible that the 1 The scope of work originally proposed can be found in project files.

188

Government may still decide to relocate the transmitter complex for a number of reasons in the future. Specifically, given the rapid urban growth in the vicinity of the transmission site, it has been the intention of the Minister of Information and RNK management to eventually relocate the transmission complex to a new site away from populated areas. Part 3 of the EMP would comprise the set of activities meant to ensure that potential environmental and social issues that might arise at a new site are identified and adequately addressed. In principle, the EMP would cover the following:

(a) Analysis of alternatives: site identification and initial scoping of technical aspects, environmental and social issues and potential mitigation measures;

(b) Detailed feasibility study, covering technical aspects and environmental and social issues as needed; including scope of programs, timeline, budget, institutional responsibilities for all activities required and for implementing, monitoring and evaluating such a program; and

(c) Consultations (depending on the nature of environmental and social issues); During the pre- implementation period, the TORs for Part 3 should be further detailed and agreed with the Bank. Provision for carrying out the EMP and implementing the mitigation measures resulting from it would need to be reflected in the work program, timetable and budget of the RNK component, as appropriate. Tentative timeframe for preparation of the EMP Part 1: Two assessments were conducted in the first half of 2008. The third party assessment was delivered in September 2008, and finalized in October 2008. Part 2: If there were health and safety issues to address, the work would be carried out during the pre-implementation period. Given findings of the third party review, this part has been dropped, with the exception of disclosure and consultation on the ongoing and proposed safety improvement measures, as noted above and reflected in the Financing Agreement. Part 3: In case of the relocation of the transmitter:

(a) technical feasibility study, including an analysis of alternatives, covering environmental, resettlement, social , health and safety issues, before selection of a new site and no later than March 31, 2009; and

(b) the development of detailed mitigation measures applicable to the selected site, before the start of construction and no later than September 30, 2009.

189

Profile of consultants The work requires the input of technical experts in the field of radio transmission and of environmental assessment/planning specialists. If resettlement is envisaged, social assessment expertise will need to be incorporated. Funding for the EMP AusAID has supported preparation of Part 1 of the EMP, through its ongoing project and some additional resources, and the Bank has financed the third party independent evaluation through an AusAID trust fund. Part 3 could be partly financed through the Bank�s PPF advance and/or under the project.

190

Annex 11: Project Good Governance Framework CAMBODIA: Demand for Good Governance Project

A. Introduction 1. The development objective of the Demand for Good Governance (DFGG) project, as noted elsewhere, is to enhance the demand for good governance in priority reform areas by strengthening institutions, supporting partnerships, and sharing lessons. Given its purpose and focus, the project will be held to a high standard of integrity and accountability by local stakeholders and the international community alike. Therefore, every effort must be made to ensure transparency and accountability in project management, and measures need to be put in place to prevent, detect and control any misuse of project resources. 2. This Good Governance Framework (GGF) for the project has been developed with these goals in mind. Institutional Good Governance Plans (GGPs) have also been prepared for each individual implementing agency (IA) to add another layer of safeguards for ensuring open and clean management of all activities related to the Project.1 3. The GGF matrix below is formatted around eight categories, namely: (1) Procurement; (2) Financial Management; (3) Disclosure; (4) Civil Society Role; (5) Complaints and Remedies; (6) Code of Ethical Conduct; (7) Sanctions; and (8) Project Specific Elements. The matrix also outlines salient risks that are common to most, if not all, IAs and to the project as a whole.2 4. A budget for implementing the activities suggested in the GGF has been incorporated within the design of each of the project�s components and subcomponents. In addition, staff and project leaders of all components and subcomponents will be provided regular training and capacity building support on good governance during the pre- implementation and implementation phases of the project.

1 The individual GGPs for each IA are available in the Project Files. 2 The risks faced by the Non-state Institution Component (to be implemented by The Asia Foundation) and the PCO may differ somewhat from the state IAs, because of differences in mandate, structure and core activities. To this end, a stand-alone Risk Mitigation Framework has been prepared for this component (see Annex 13).

19

1

Ove

rall

Goo

d G

over

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amew

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for

DFG

G P

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Is

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men

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and

the

IDA

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, eac

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IA

shal

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tech

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IA-s

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). PC

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19

2

Is

sue

Act

ion

to M

itiga

te R

isk

Res

pons

ibili

ty

Tar

get/M

onito

ring

1d

In

form

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cons

ulta

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cont

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supp

liers

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con

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firm

s or

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the

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. A

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of t

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:

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and

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our

as

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proc

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bidd

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ropo

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(RFP

s), a

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ontra

cts.

IPA

thro

ugh

MEF

inst

ruct

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PC

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mon

itor.

IDA

to v

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thro

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prio

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pos

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s.

2 E

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: Fin

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St

reng

then

inte

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co

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All

com

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s to

follo

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FMM

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m

anda

ted

by S

ub-D

ecre

e N

o. 1

4 da

ted

Febr

uary

26,

200

7,

supp

lem

ente

d by

a p

roje

ct-s

peci

fic F

inan

cial

Man

agem

ent

and

Dis

burs

emen

t Man

ual (

FMD

M) c

urre

ntly

at d

raft

stag

e.

PCO

to c

ompl

ete

FMD

M

acce

ptab

le to

DFG

G p

roje

ct

Coo

rdin

ator

and

obt

ain

IDA

N

OL.

Ea

ch c

ompo

nent

IA C

hief

Fi

nanc

ial O

ffic

ers t

o en

sure

co

mpl

ianc

e.

Dra

ft FM

DM

agr

eed

by n

egot

iatio

ns a

nd

final

ver

sion

to b

e co

mpl

eted

dur

ing

DFG

G

pre-

impl

emen

tatio

n st

age.1 R

efle

ct u

se o

f SO

P/FM

M a

nd F

MD

M in

Fin

anci

ng

Agr

eem

ent.

IDA

to v

erify

com

plia

nce

durin

g su

perv

isio

n m

issi

ons.

PC

O In

tern

al A

udit

Uni

t to

carr

y ou

t spo

t ch

ecks

on

com

plia

nce.

2b

Stre

ngth

en fi

nanc

ial

man

agem

ent c

apac

ity.

PCO

will

recr

uit a

qua

lifie

d ac

coun

tant

as F

inan

cial

M

anag

emen

t Adv

iser

for t

he w

hole

Pro

ject

, and

a P

roje

ct

Acc

ount

ant a

nd tw

o ac

coun

ting

offic

ers f

or d

utie

s with

in

the

PCO

, all

unde

r TO

R a

ccep

tabl

e to

the

IDA

. Ea

ch IA

to im

plem

ent t

he d

etai

led

actio

n pl

ans (

incl

udin

g

PCO

with

IDA

NO

L.

Agr

ee T

OR

at a

ppra

isal

. Rec

ruit

by

Oct

ober

200

8.

1 T

he D

FGG

pre

-impl

emen

tatio

n st

age

is c

urre

ntly

sche

dule

d to

run

from

May

to D

ecem

ber 2

008.

19

3

Is

sue

Act

ion

to M

itiga

te R

isk

Res

pons

ibili

ty

Tar

get/M

onito

ring

tra

inin

g an

d re

crui

tmen

t of s

taff

) whi

ch h

ave

been

de

velo

ped

to a

ddre

ss is

sues

iden

tifie

d th

roug

h th

e fin

anci

al

man

agem

ent c

apac

ity a

sses

smen

t car

ried

out d

urin

g pr

ojec

t pre

para

tion.

See

com

pone

nt sp

ecifi

c G

GFs

.

2c

Ensu

re u

nifo

rm P

roje

ct

acco

untin

g an

d re

adin

ess

of p

ropr

ieta

ry so

ftwar

e.

PCO

will

ens

ure

that

eac

h co

mpo

nent

IA e

stab

lishe

s a

unifo

rm P

roje

ct a

ccou

ntin

g sy

stem

with

a c

omm

on c

hart

of

acco

unts

, usi

ng a

pro

prie

tary

softw

are

pack

age

satis

fact

ory

to th

e ID

A.

PCO

with

IDA

NO

L.

Agr

ee p

ropr

ieta

ry p

acka

ge b

y O

ctob

er

2008

. PC

O to

inst

all b

y ef

fect

iven

ess.

IDA

to

mon

itor c

orre

ct u

se d

urin

g FM

su

perv

isio

n m

issi

ons.

2d

Ensu

re c

ompr

ehen

sive

FM

repo

rting

. A

ll co

mpo

nent

IAs w

ill u

tiliz

e a

tem

plat

e fo

r int

erim

FM

re

porti

ng w

hich

has

bee

n de

velo

ped

and

will

be

agre

ed.

Rep

orts

to b

e su

bmitt

ed to

IDA

qua

rterly

not

mor

e th

an 4

5 da

ys a

fter t

he e

nd o

f the

repo

rting

per

iod.

PCO

and

all

com

pone

nt IA

s. A

gree

tem

plat

e by

neg

otia

tions

. PC

O to

mon

itor F

M re

ports

by

com

pone

nt

IAs f

or c

ompl

ianc

e w

ith a

gree

d te

mpl

ate

and

subm

issi

on d

eadl

ines

. 2e

En

sure

eff

ectiv

e in

tern

al

audi

t in

all c

ompo

nent

IA

s.

An

Inte

rnal

Aud

it U

nit c

ompr

isin

g an

exp

erie

nced

inte

rnal

au

dito

r and

two

assi

stan

ts w

ill b

e es

tabl

ishe

d in

the

PCO

an

d be

resp

onsi

ble

for i

nter

nal a

udit

of a

ll Pr

ojec

t co

mpo

nent

s, in

clud

ing

the

prov

inci

al a

ctiv

ities

of

com

pone

nt IA

s.

PCO

will

pre

pare

TO

R fo

r In

tern

al A

udit

Uni

t with

IDA

N

OL.

PC

O w

ill re

crui

t au

dito

rs.

TOR

to b

e ag

reed

by

Oct

ober

200

8.

Aud

itors

in p

lace

by

Janu

ary

2009

.

2f

Ann

ual e

xter

nal a

udit

of

who

le P

roje

ct.

An

inde

pend

ent a

udito

r acc

epta

ble

to ID

A w

ill b

e ap

poin

ted

to c

arry

out

an

annu

al a

udit

of p

roje

ct fi

nanc

ial

stat

emen

ts a

nd e

ffec

tiven

ess o

f int

erna

l con

trols

, in

acco

rdan

ce w

ith T

OR

satis

fact

ory

to ID

A.

PCO

to p

repa

re T

OR

and

ob

tain

IDA

NO

L. IP

A to

re

crui

t ext

erna

l aud

itor.

Agr

ee T

OR

by

June

200

9. A

ppoi

ntm

ent i

n tim

e fo

r firs

t ann

ual a

udit,

firs

t qua

rter

2010

.

2g

Min

imiz

e ca

sh

trans

actio

ns.

All

prog

ress

pay

men

ts to

con

tract

ors,

supp

liers

and

co

nsul

tant

s � fi

rms,

indi

vidu

als,

natio

nal a

nd in

tern

atio

nal

� to

be

mad

e by

che

ck o

r tra

nsfe

r to

bank

acc

ount

s. R

etai

n ev

iden

ce fo

r aud

it an

d ID

A su

perv

isio

n m

issi

ons.

Pet

ty

cash

tran

sact

ions

to b

e lim

ited

to a

mou

nts l

ess t

han

US$

500

equi

vale

nt.

Each

com

pone

nt IA

Chi

ef

Fina

ncia

l Off

icer

. PC

O to

mon

itor a

ll ot

her c

ompo

nent

ag

enci

es a

nd re

port

quar

terly

to M

OI.

IDA

to

mon

itor d

urin

g su

perv

isio

n m

issi

ons.

2h

Avo

id in

cons

iste

ncy

in

allo

wan

ces

paid

to

Gov

ernm

ent s

taff

at

tend

ing

train

ing,

w

orks

hops

and

stu

dy

tour

s

Ado

pt M

EF D

ecis

ion

Lette

r No.

200

0 of

Apr

il 23

, 200

7,

for D

SA ra

tes

for i

n-co

untry

trav

el. F

or in

tern

atio

nal

trave

l, so

me

of th

e D

SA ra

tes s

peci

fied

in A

nukr

et 1

0 of

A

pril

12, 2

004

are

posi

tion-

base

d an

d/or

hig

her t

han

UN

no

rms a

nd a

re n

ot a

ccep

tabl

e to

IDA

for a

pplic

atio

n on

ID

A-f

inan

ced

proj

ects

.

MEF

/IDA

to d

iscu

ss a

nd a

gree

st

anda

rd D

SA fo

r int

erna

tiona

l tra

vel,

afte

r whi

ch M

EF to

ad

vise

MO

I. PC

O to

ens

ure

com

plia

nce

of a

ll co

mpo

nent

IA

s.

Inte

rnat

iona

l DSA

rate

s to

be a

gree

d by

O

ctob

er 2

008.

Unt

il th

en, I

As

may

use

ID

A ra

tes f

or o

vers

eas t

rave

l. ID

A to

m

onito

r SO

Es w

ith w

ithdr

awal

ap

plic

atio

ns.

2i

Plan

ning

of t

rain

ing,

w

orks

hops

and

stu

dy

tour

s.

Each

com

pone

nt IA

will

est

ablis

h an

Ann

ual T

rain

ing

and

Wor

ksho

p Pl

an in

acc

orda

nce

with

its a

ppro

ved

Proj

ect

Prop

osal

. The

Pla

n sh

ould

incl

ude:

The

PCO

will

coo

rdin

ate

com

pone

nt IA

Pla

ns a

nd

subm

it to

IDA

for N

OL.

NO

L in

Mar

ch a

nd su

bmis

sion

to M

EF in

Ju

ne (f

or M

EF in

itial

roun

d of

bud

get

subm

issi

ons)

.

19

4

Is

sue

Act

ion

to M

itiga

te R

isk

Res

pons

ibili

ty

Tar

get/M

onito

ring

1.

Det

aile

d co

sts

estim

ates

. 2.

Elig

ibili

ty ru

les

for a

ttend

ing

train

ing,

wor

ksho

ps a

nd

stud

y to

urs.

Atte

ndee

s mus

t: •

be e

ngag

ed in

wor

k re

leva

nt to

the

train

ing;

•

be c

ompe

tent

in th

e la

ngua

ge u

sed;

•

afte

r ret

urn,

repo

rt on

and

shar

e th

eir e

xper

ienc

es fo

r the

be

nefit

of t

he p

roje

ct.

3. E

vide

nce

that

trai

ning

, wor

ksho

ps, s

tudy

tour

s and

oth

er

sim

ilar a

ctiv

ities

: •

are

in li

ne w

ith p

roje

ct a

ims a

nd o

bjec

tives

•

mee

t ide

ntifi

ed n

eeds

with

in th

e su

bcom

pone

nt p

lans

•

have

bud

get i

n lin

e w

ith p

lann

ed e

xpen

ditu

re.

Cos

t gui

delin

es to

be

esta

blis

hed

for s

elec

ted

train

ing/

wor

ksho

p ac

tiviti

es:

• ve

nue

rent

al w

ith re

fres

hmen

ts/m

eals

•

soun

d an

d pr

ojec

tion

equi

pmen

t hire

•

stat

ione

ry/h

and-

outs

•

proj

ect-s

peci

fic tr

aini

ng a

nd w

orks

hop

mat

eria

ls

• si

mul

tane

ous

trans

lato

rs

• ph

otoc

opyi

ng, r

epro

duct

ion,

tran

slat

ion

Def

ine

evid

ence

to b

e su

bmitt

ed b

y at

tend

ees f

or

reim

burs

emen

t of e

xpen

ses w

hich

may

incl

ude:

•

proo

f of a

ttend

ance

for p

erio

d cl

aim

ed w

ith si

gned

st

atem

ent b

y th

e w

orks

hop,

trai

ning

or s

tudy

tour

or

gani

zer o

r hos

t; •

proo

f of t

rave

l by

air �

tick

et st

ubs,

trav

el a

gent

�s

rece

ipt,

airli

ne b

oard

ing

pass

es

• re

ceip

ted

hote

l bill

s (fo

r pro

of o

f sta

y);

• re

ceip

ts fo

r inc

iden

tal t

rave

ling

expe

nses

; •

rece

ipte

d in

voic

es fo

r ven

ue re

ntal

, foo

d an

d be

vera

ge,

soun

d/pr

ojec

tion

equi

pmen

t, hi

re o

f sim

ulta

neou

s tra

nsla

tor,

stat

ione

ry a

nd h

ando

uts,

use

of p

hoto

copy

ing

PCO

and

pro

ject

age

ncie

s to

follo

w W

orki

ng G

roup

gu

idel

ines

whe

n is

sued

(see

be

low

). W

orki

ng G

roup

com

pris

ing

MEF

, IA

s of

all

proj

ects

and

ID

A.

Wor

king

Gro

up to

def

ine

evid

ence

and

incl

ude

in

dire

ctiv

e. P

CO

to e

nsur

e co

mpl

ianc

e of

com

pone

nt IA

s.

IDA

to v

erify

thro

ugh

its m

embe

rshi

p of

W

orki

ng G

roup

. Es

tabl

ish

Wor

king

gro

up b

y A

ugus

t 200

8.

Agr

ee g

uide

lines

and

issu

e di

rect

ive

to a

ll ID

A-f

unde

d pr

ojec

ts b

y en

d-D

ecem

ber

2008

. D

irect

ive

issu

ed b

y D

ecem

ber 2

008.

IDA

to

mon

itor S

OEs

with

with

draw

al

appl

icat

ions

.

19

5

Is

sue

Act

ion

to M

itiga

te R

isk

Res

pons

ibili

ty

Tar

get/M

onito

ring

fa

cilit

ies.

Rei

mbu

rse

agai

nst r

ecei

pts e

xcep

t whe

re c

over

ed b

y fix

ed

allo

wan

ces

in M

EF�s

lette

r No.

200

0. E

vide

nce

of p

aym

ent

to b

e ke

pt fo

r atte

ndee

s� p

er d

iem

and

allo

wan

ces.

Each

com

pone

nt IA

Chi

ef

Fina

ncia

l Off

icer

.

PCO

to m

onito

r com

plia

nce.

IDA

to

mon

itor S

OEs

with

with

draw

al

appl

icat

ions

and

ver

ify d

urin

g su

perv

isio

n m

issi

ons.

2j

Avo

id d

elay

ed o

r non

-ex

iste

nt re

conc

iliat

ion

of

adva

nces

for o

pera

ting

cost

s and

exp

ense

s.

Each

com

pone

nt IA

will

mai

ntai

n an

adv

ance

regi

ster

, ve

hicl

e lo

gboo

k an

d fu

el re

gist

er. A

dvan

ces f

or o

pera

ting

cost

s and

exp

ense

s to

offic

es, i

ndiv

idua

ls o

r gro

ups

invo

lved

in p

roje

ct a

ctiv

ities

to b

e re

conc

iled

with

in tw

o w

eeks

of t

he e

nd o

f eac

h m

onth

. No

furth

er a

dvan

ce to

be

paid

to a

n of

fice,

indi

vidu

al o

r gro

up u

ntil

its p

revi

ous

adva

nce

is re

conc

iled

and

clea

red

agai

nst d

ocum

enta

ry

evid

ence

.

Each

com

pone

nt IA

Chi

ef

Fina

ncia

l Off

icer

.

PCO

to m

onito

r com

plia

nce.

IDA

to v

erify

du

ring

supe

rvis

ion

mis

sion

s.

2k

Ado

ptio

n of

the

MB

PI

and

PMG

for S

tate

im

plem

ente

d co

mpo

nent

s.

MEF

and

MO

I agr

ee th

at th

e St

ate

com

pone

nt IA

s will

ad

opt t

he M

BPI

and

PMG

syst

ems o

f sal

ary

ince

ntiv

es.

The

MB

PI a

nd P

MG

will

be

impl

emen

ted

stric

tly

acco

rdin

g to

the

MBP

I and

the

PMG

Man

uals

to b

e pr

epar

ed fo

r the

Pro

ject

.

PCO

to c

ompl

ete

the

MB

PI

and

PMG

Man

uals

, inc

ludi

ng

cost

shar

ing

basi

s, fo

r MEF

an

d ID

A a

ppro

val.

Man

ual a

nd c

ost s

harin

g to

be

appr

oved

du

ring

nego

tiatio

ns. P

CO

to m

onito

r ap

plic

atio

n

3 E

lem

ent 3

: D

iscl

osur

e 3a

M

inim

ize

conf

lict o

f in

tere

st a

mon

g pr

ojec

t st

aff.

Proj

ect s

taff

to d

iscl

ose

priv

ate

and

publ

ic a

ffili

atio

ns o

r pe

rson

al in

tere

st b

efor

e be

com

ing

invo

lved

in a

ny p

roje

ct-

rela

ted

trans

actio

n or

con

tract

aw

ard

deci

sion

.

Proj

ect m

anag

ers

of a

ll co

mpo

nent

IAs t

o as

k fo

r and

re

tain

writ

ten

disc

losu

re.

PCO

to m

onito

r. ID

A to

ver

ify d

urin

g su

perv

isio

n m

issi

ons.

3b

Enha

nce

trans

pare

ncy

thro

ugh

grea

ter p

ublic

di

sclo

sure

of p

roje

ct

info

rmat

ion.

Com

pone

nt IA

s to

disc

lose

info

rmat

ion

on th

eir i

ndiv

idua

l w

ebsi

tes i

n ac

cord

ance

with

gui

delin

es se

t for

th in

thei

r C

omm

unic

atio

ns P

lans

, with

har

d co

pies

ava

ilabl

e at

co

mpo

nent

IA o

ffic

es fo

r pub

lic in

spec

tion

on re

ques

t. A

s a

min

imum

, dis

clos

ed in

form

atio

n is

exp

ecte

d to

incl

ude:

•

proj

ect n

ame,

obj

ectiv

es, o

rigin

al a

nd re

vise

d am

ount

, so

urce

s of f

undi

ng, e

ffec

tiven

ess d

ate,

orig

inal

clo

sing

da

te, r

evis

ed c

losi

ng d

ate,

num

ber o

f ext

ensi

ons,

nam

e an

d ad

dres

s of i

mpl

emen

ting

agen

cy, n

ame

of P

roje

ct D

irect

or

with

con

tact

info

rmat

ion,

nam

e of

WB

TTL

and

con

tact

in

form

atio

n in

the

MEF

-WB

uni

t and

WB

Off

ice

in

Cam

bodi

a •

IA p

roje

ct p

ropo

sals

agr

eed

at a

ppra

isal

•

Ann

ual W

ork

Prog

ram

and

Pro

cure

men

t Pla

n,

iden

tifyi

ng c

ontra

cts t

o be

pro

cure

d in

nex

t 12

mon

ths,

PCO

to co

ordi

nate

list

s of

info

rmat

ion

to b

e di

sclo

sed

by

each

com

pone

nt IA

and

agr

ee

with

IDA

. Ea

ch c

ompo

nent

IA

resp

onsi

ble

for d

iscl

osur

e of

in

form

atio

n co

ncer

ning

its

com

pone

nt. I

PA w

ill d

iscl

ose

proc

urem

ent i

nfor

mat

ion.

By

Neg

otia

tions

. PC

O to

mon

itor p

rogr

ess d

urin

g re

view

s. B

iann

ually

. PC

O to

mon

itor c

ompl

ianc

e an

d ID

A to

ver

ify d

urin

g su

perv

isio

n m

issi

ons.

19

6

Is

sue

Act

ion

to M

itiga

te R

isk

Res

pons

ibili

ty

Tar

get/M

onito

ring

na

ture

of e

ach

cont

ract

, loc

atio

n, m

etho

d of

pro

cure

men

t, m

eans

of a

dver

tisem

ent,

bidd

ing

perio

d, lo

catio

n w

here

bi

ddin

g do

cum

ents

and

RFP

s can

be

insp

ecte

d, e

xpec

ted

date

of a

vaila

bilit

y, a

nd c

ost o

f bid

ding

doc

umen

ts

• co

nsul

tant

long

and

shor

t lis

ts

• bi

ddin

g do

cum

ents

and

RFP

�s to

be

avai

labl

e fo

r in

spec

tion

• bi

d cl

osin

g da

tes,

nam

es o

f bid

ders

and

thei

r bid

pric

es

at o

peni

ng

• lis

t and

det

ails

of c

ontra

cts a

war

ded,

nam

es o

f los

ing

bidd

ers a

nd, i

f the

ir bi

d pr

ices

wer

e lo

wer

than

the

win

ning

bi

dder

, the

reas

on fo

r the

ir re

ject

ion

• pr

ojec

t pro

gres

s rep

orts

, det

ailin

g pr

ojec

t com

pone

nts,

pe

rcen

tage

com

ple

tion,

dat

a on

per

form

ance

indi

cato

rs,

and

plan

ned

and

actu

al d

isbu

rsem

ents

by

subc

ompo

nent

•

annu

al fi

nanc

ial s

tate

men

ts a

nd a

udit

opin

ion

• ot

her s

peci

fic re

ports

pre

pare

d by

the

proj

ect

• co

mpl

aint

s and

rem

edie

s and

mec

hani

sm

• co

de o

f eth

ical

con

duct

3c

En

hanc

e Pr

ojec

t vis

ibili

ty

thro

ugh

the

med

ia.

PC

O w

ill e

stab

lish

the

Lear

ning

and

Com

mun

icat

ions

W

orki

ng G

roup

to a

dvis

e on

lear

ning

, dis

sem

inat

ion

and

com

mun

icat

ion

activ

ities

for t

he P

roje

ct.

Com

pone

nt IA

s and

the

PCO

to im

plem

ent t

he p

roje

ct�s

C

omm

unic

atio

ns S

trate

gy so

as t

o ra

ise

publ

ic a

war

enes

s on

gov

erna

nce

issu

es, r

epor

t on

Proj

ect a

ctiv

ities

, hel

p pr

otec

t ref

orm

lead

ers a

nd th

eir c

ivil

soci

ety

partn

ers f

rom

re

pris

als a

nd b

ackl

ash,

and

man

age

nega

tive

publ

icity

and

sc

anda

ls.

PCO

. C

ompo

nent

IAs a

nd th

e PC

O.

Lear

ning

and

Com

mun

icat

ions

Wor

king

G

roup

est

ablis

hed

durin

g D

FGG

pre

-im

plem

enta

tion

stag

e.

Con

tinuo

usly

afte

r Pro

ject

com

men

cem

ent.

PCO

to m

onito

r pro

gres

s. ID

A to

ver

ify

impl

emen

tatio

n du

ring

supe

rvis

ion

mis

sion

s.

4 E

lem

ent 4

: Civ

il So

ciet

y R

ole

4a

Gre

ater

invo

lvem

ent w

ith

CSO

s. A

ll co

mpo

nent

IAs t

o im

plem

ent t

heir

Partn

ersh

ip P

lans

in

clud

ed in

the

PIM

, whi

ch w

ill in

clud

e th

e in

volv

emen

t of

CSO

(s) i

n se

lect

ed a

spec

ts o

f pro

ject

impl

emen

tatio

n an

d in

vita

tion

to o

bser

ve se

lect

ed e

vent

s. A

ll m

ajor

CSO

invo

lvem

ent t

o be

reco

rded

in P

roje

ct

prog

ress

repo

rts.

PIM

to b

e cl

eare

d by

MO

I and

su

bjec

t to

NO

L fr

om ID

A.

PCO

to c

oord

inat

e w

ith a

ll St

ate

com

pone

nt IA

s on

re

porti

ng.

Agr

ee P

IM d

urin

g D

FGG

pre

-im

plem

enta

tion

stag

e.

PCO

to m

onito

r CSO

invo

lvem

ent i

n St

ate

com

pone

nts.

IDA

to v

erify

dur

ing

19

7

Is

sue

Act

ion

to M

itiga

te R

isk

Res

pons

ibili

ty

Tar

get/M

onito

ring

su

perv

isio

n m

issi

ons.

5 E

lem

ent 5

: Com

plai

nts

(Gri

evan

ces)

and

Rem

edie

s M

echa

nism

5a

In

trodu

ce a

form

al

com

plai

nts/

grie

vanc

es

and

rem

edie

s mec

hani

sm

cove

ring

all c

ompo

nent

s of

the

proj

ect.

The

PIM

will

incl

ude

a pr

ojec

t-wid

e co

mpl

aint

s an

d re

med

ies m

echa

nism

for a

ll co

mpo

nent

s, in

clud

ing

sub-

proc

edur

es sp

ecifi

c to

par

ticul

ar c

ompo

nent

s as n

eces

sary

. C

ompl

aint

s pro

cedu

res r

egar

ding

pro

cure

men

t to

follo

w

proc

ess s

et o

ut in

SO

P/PM

PCO

with

IDA

NO

L to

PIM

. IP

A/P

CO

.

Agr

ee P

IM d

urin

g D

FGG

pre

-im

plem

enta

tion

stag

e. P

CO

to m

onito

r ad

optio

n of

com

plai

nts a

nd re

med

ies

mec

hani

sm. I

DA

to v

erify

dur

ing

supe

rvis

ion

mis

sion

s. ID

A to

mon

itor d

urin

g pr

ior o

r pos

t re

view

s. 5b

Supp

ort t

he fo

rmal

co

mpl

aint

s mec

hani

sm

with

est

ablis

hmen

t of

help

line

s and

feed

back

ch

anne

ls.

PCO

will

est

ablis

h in

form

al a

dvic

e- a

nd in

form

atio

n-gi

ving

mec

hani

sms,

as w

ell a

s con

sulta

tive

mee

tings

, di

alog

ues a

nd w

orks

hops

, allo

win

g fo

r inf

orm

al fe

edba

ck

to b

e pr

ovid

ed, i

n a

form

at a

nd m

anne

r app

ropr

iate

to th

e ne

eds o

f the

bro

ad st

akeh

olde

r of P

roje

ct in

itiat

ives

(e

spec

ially

thos

e po

tent

ially

aff

ecte

d by

the

proj

ect�s

in

itiat

ives

).

PCO

in c

onsu

ltatio

n w

ith

com

pone

nt IA

s to

prep

are

mec

hani

sms a

nd in

clud

e in

the

PIM

.

Agr

ee P

IM d

urin

g D

FGG

pre

-im

plem

enta

tion

stag

e. P

CO

to m

onito

r us

age

of h

elp

line

and

feed

back

cha

nnel

s.

IDA

to v

erify

ado

ptio

n du

ring

supe

rvis

ion

mis

sion

s.

6 E

lem

ent 6

: Cod

e of

Eth

ical

Con

duct

6a

No

over

all C

ode

of

Con

duct

for c

ivil

serv

ants

.2

Each

com

pone

nt IA

to d

esig

n C

ode

for i

ts p

roje

ct st

aff,

incl

udin

g co

ntra

cted

staf

f, to

sign

indi

vidu

ally

. G

over

nmen

t age

ncie

s may

inco

rpor

ate

mat

eria

l fro

m th

e C

ivil

Serv

ice

Stat

ute

of 1

994.

Each

com

pone

nt IA

to d

esig

n its

Cod

e.

Des

ign

and

furn

ish

copi

es to

IDA

dur

ing

DFG

G p

re-i

mpl

emen

tatio

n st

age.

PC

O to

m

onito

r ado

ptio

n. ID

A to

ver

ify a

dopt

ion

durin

g su

perv

isio

n m

issi

ons.

7 E

lem

ent 7

: San

ctio

ns

7a

Rei

nfor

ce C

ode

of

Con

duct

with

san

ctio

ns

for f

raud

ulen

t and

cor

rupt

ac

tivity

by

staf

f of p

roje

ct

agen

cies

, con

tract

ors,

su

pplie

rs a

nd c

onsu

ltant

s.

Each

com

pone

nt IA

to id

entif

y an

d ap

ply

to p

roje

ct st

aff

sanc

tions

ava

ilabl

e un

der c

urre

nt la

w o

f Cam

bodi

a an

d its

ow

n re

gula

tions

. San

ctio

ns a

gain

st c

ontra

ctor

s, su

pplie

rs

and

cons

ulta

nts w

ill b

e th

ose

defin

ed in

Sec

tion

3 of

the

SOP/

PM.

IDA

to a

pply

sanc

tions

ava

ilabl

e in

its g

ener

al a

nd p

roje

ct-

spec

ific

lega

l agr

eem

ents

, inc

ludi

ng th

e W

B G

roup

�s A

nti-

Cor

rupt

ion

Gui

delin

es (A

CG

) and

San

ctio

ns R

egim

e in

trodu

ced

in O

ctob

er 2

006

and

as m

ay b

e up

date

d su

bseq

uent

ly.

Each

com

pone

nt IA

to id

entif

y an

d di

ssem

inat

e w

ith C

ode

of

Ethi

cal C

ondu

ct.

IDA

to p

rovi

de c

opie

s of i

ts

AC

G a

nd S

anct

ions

Reg

ime

to

PCO

and

all

IAs.

Def

ine

and

furn

ish

copy

to ID

A d

urin

g D

FGG

pre

-im

plem

enta

tion

stag

e. P

CO

to

mon

itor a

pplic

atio

n an

d ID

A to

ver

ify

durin

g su

perv

isio

n m

issi

ons.

Cop

y of

AC

G a

nd S

anct

ions

Reg

ime

prov

ided

to P

CO

dur

ing

appr

aisa

l. ID

A

may

app

ly sa

nctio

ns w

hene

ver e

vide

nce

is

foun

d.

8 El

emen

t 8: P

roje

ct S

peci

fic E

lem

ents

2 See

dra

ft ge

neric

Cod

e of

Con

duct

as A

ttach

men

t A to

this

Ann

ex.

19

8

Is

sue

Act

ion

to M

itiga

te R

isk

Res

pons

ibili

ty

Tar

get/M

onito

ring

8a

V

erifi

catio

n an

d te

chni

cal

audi

t to

prev

ent c

aptu

re o

f Pr

ojec

t res

ourc

es fo

r non

-in

tend

ed re

cipi

ents

or f

or

pers

onal

ben

efit

of

indi

vidu

als o

r gro

ups w

ith

vest

ed in

tere

sts.

The

PCO

will

recr

uit a

team

of i

ndep

ende

nt te

chni

cal a

udit

cons

ulta

nts,

bot

h in

tern

atio

nal a

nd n

atio

nal,

to c

arry

out

in

term

itten

t aud

it of

all

activ

ities

of t

he P

roje

ct. T

he fo

cus

will

be

on d

ue d

ilige

nce

to v

erify

that

goo

ds, w

orks

and

se

rvic

es b

eing

fina

nced

by

the

IDA

Gra

nt a

re in

pla

ce in

th

e sp

ecifi

ed q

uant

ity a

nd a

ccep

tabl

e qu

ality

, cou

nter

part

reso

urce

s are

in p

lace

, and

that

out

puts

of a

ll ac

tiviti

es a

re

in li

ne w

ith P

roje

ct d

esig

n.

PCO

will

pre

pare

TO

R a

nd

obta

in ID

A N

OL.

IP

A w

ill re

crui

t the

tech

nica

l au

dit c

onsu

ltant

s with

IDA

N

OL

durin

g re

crui

tmen

t pr

oces

s.

Dur

ing

DFG

G p

re-i

mpl

emen

tatio

n st

age.

C

onsu

ltant

s in

plac

e by

June

200

9.

8b

U

se th

e G

GF

as a

m

anag

emen

t too

l with

re

gula

r rev

iew

s an

d up

date

s by

mut

ual

agre

emen

t.

PCO

with

sen

ior m

anag

emen

t of c

ompo

nent

IAs

to

cond

uct q

uarte

rly re

view

s of t

he G

GF

and

any

othe

r fid

ucia

ry ri

sks,

iden

tify

early

war

ning

sig

ns a

nd m

itiga

tion

mea

sure

s, a

nd p

ropo

se u

pdat

es o

f the

GG

F as

nec

essa

ry

for t

he ID

A�s

con

side

ratio

n, to

ens

ure

that

eff

ectiv

e an

d ad

equa

te c

ontro

ls a

re in

pla

ce.

The

PCO

, with

ass

istan

ce fr

om th

e Pr

ojec

t Pre

para

tion

Team

will

des

ign

and

deliv

er tr

aini

ng in

risk

man

agem

ent

and

anti-

corr

uptio

n, th

roug

h w

orks

hops

for a

ll Pr

ojec

t sta

ff

of a

ll le

vels

in c

ompo

nent

IAs f

inan

ced

unde

r the

su

pple

men

tal P

PF.

PCO

and

all

IAs.

PCO

and

Pro

ject

Pre

para

tion

Team

with

IDA

gui

danc

e an

d ov

ervi

ew.

PCO

to re

port

to th

e G

over

nmen

t�s A

CW

G

and

IDA

with

in tw

o w

eeks

of e

ach

quar

terly

revi

ew.

Trai

ning

wor

ksho

ps to

take

pla

ce d

urin

g D

FGG

pre

-im

plem

enta

tion

stag

e w

hen

IA

impl

emen

tatio

n te

ams a

re in

pla

ce.

8c

Pr

omot

e sy

nerg

y, c

ross

-le

arni

ng a

nd c

onst

ruct

ive

com

petit

ion

amon

g co

mpo

nent

s of t

he

Proj

ect.

PCO

to a

rran

ge q

uarte

rly w

orks

hops

am

ong

com

pone

nt

IAs t

o sh

are

expe

rienc

e of

pro

blem

s enc

ount

ered

by

them

, an

d ef

fect

iven

ess o

f sol

utio

ns a

pplie

d. T

he w

orks

hops

w

ould

als

o en

hanc

e he

alth

y co

mpe

titio

n am

ong

IAs i

n pr

omot

ing

effe

ctiv

e pr

ojec

t man

agem

ent a

nd in

nova

tion

in

good

gov

erna

nce.

PCO

and

all

com

pone

nt IA

s.

Qua

rterly

. PC

O to

repo

rt on

wor

ksho

ps to

M

OI a

nd a

ll co

mpo

nent

IAs,

with

cop

y to

ID

A, n

ot la

ter t

han

two

wee

ks a

fter e

ach

wor

ksho

p.

8d

St

reng

then

ove

rsig

ht,

mon

itorin

g an

d fe

edba

ck

on P

roje

ct in

itiat

ives

th

roug

h de

man

d-si

de

soci

al a

ccou

ntab

ility

.

Supp

lem

ent t

he e

nhan

ced

CSO

role

(ite

m 4

a) b

y en

gagi

ng

citiz

ens a

nd th

e m

edia

to m

onito

r and

pro

vide

feed

back

on

the

outp

uts a

nd o

utco

mes

of p

roje

ct a

ctiv

ities

and

or

gani

zing

inte

rnsh

ips,

dia

logu

e, tr

aini

ng w

orks

hops

and

fo

cus e

vent

s to

reac

h ou

t to

NG

Os,

CSO

s and

oth

er c

ivic

gr

oups

to p

ublic

ize

the

Proj

ect�s

wor

k. A

n ex

ampl

e w

ould

be

to o

rgan

ize

a hi

gh p

rofil

e na

tion-

wid

e es

say

cont

est a

nd

art c

ompe

titio

n fo

r you

ths o

n In

tern

atio

nal A

nti-C

orru

ptio

n D

ay (D

ecem

ber 9

) to

solic

it vi

sion

and

idea

s for

the

futu

re.

All

IAs

to o

rgan

ize

wor

king

gr

oups

and

des

ign

activ

ity

plan

s, w

ith P

CO

coo

rdin

atio

n.

IAs

to d

raft

plan

s dur

ing

DFG

G p

re-

impl

emen

tatio

n st

age.

PC

O to

furn

ish

copi

es to

IDA

. PC

O to

mon

itor

impl

emen

tatio

n.

199

Attachment 1 to Annex 11: Proposed Code of Conduct for Employees, Consultants and Associates involved with Project

All employees, associates and consultants of the project will undertake to do the following: 1. Act with honesty and integrity, avoiding actual or apparent conflicts of interest in one�s personal and professional relationships, not allowing one�s private interest to influence, or appear to influence, the impartial and objective performance of official duties. 2. Respect the laws of the Kingdom of Cambodia, comply with all rules and regulations of the Royal Government of Cambodia, and adhere to the relevant guidelines of the World Bank. 3. Decline or reject any gift, bribe or favor that may influence the exercise of official authority, performance of duty or judgment, except in the case of conventional hospitality or minor gifts with an estimated value of less than US$10. 4. Not to use official authority and power of the office for one�s own personal benefit or misuse one�s official position to influence any person or organization for private purpose. 5. Act in good faith, diligence, and accountability in the discharge of one�s official responsibilities, and not compromise one�s independent judgment. 6. Exercise responsible use, control, and stewardship over all public finances, assets, facilities, services and resources and not use them for private purposes except when permission is lawfully given. 7. Resist the temptation of nepotism and favoritism in one�s duties, including misusing one�s official power and resources to benefit private interests including those of the family, close relatives, friends and persons or organizations with whom one has had business or political relations. 8. Strive to engage the public, external partners and constituencies with openness and transparency, and at the same time respect the confidentiality of information acquired in the course of one’s work, except when legally or professionally obligated to disclose. 9. Proactively promote and be an example of ethical behavior among one�s peers, in the workplace, and in the community. 10. If one is aware of any evidence or suspicion of breaches of this Code, to report such concerns to the relevant authorities.

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Attachment 2 to Annex 11: DFGG Project Complaints Handling System 1. The systemic nature of corruption and the culture of patronage that exists in Cambodia is an obvious risk to the DFGG project, as acknowledged in Sections 11 and 12 of this Project Proposal. In addition, in Cambodia, the culture of individual complaint, or petitioning for the redress of grievance, is weak. Individual citizens hold low expectations of receiving impartial treatment, and it is generally perceived that SIs, including the judicial system, neither encourage, nor actively or impartially respond to, direct complaints by ordinary citizens. 2. Since the DFGG project aims to assist the RGC reform process by encouraging and enabling demand-side citizen involvement in governance and social accountability processes, as well as building the capacity of participating SIs to better respond to demand-side concerns, it is especially important that the design of all project components incorporate mechanisms and processes to address complaints that may arise in the course of project implementation, as a result of their activities or omissions therein. To this end, all IAs will review and revitalize, where already existent,1 their own internal system for receiving, assessing, where possible resolving, and responding to such concerns from citizens. In addition, a Complaints Handling Mechanism (CHM) will be established for the overall DFGG Project, housed and supported though the MOI�s PCO as described below. 3. Given the challenges involved, the Learning Subcomponent of Component 3 will include among its activities an assessment of these and similar mechanisms, in Cambodia and elsewhere, so as to generate lessons that can be applied to the improvement of the existing CHMs or to their establishment where complaints handling is not an intrinsic part of the IAs� core functions. 4. Defining Complaints: For the purposes of the DFGG Project, a complaint is a notification (in written, verbal or electronic form) regarding project activities and/or conduct of staff, consultants, partners and/or sub-contractors of the six IAs, directly or indirectly supporting the project or associated with its implementation, which the complainant believes is wrong, either under the law or on the grounds of unacceptable behavior. The complainant(s) need not be personally aggrieved or impacted, and may be acting merely in accordance with a sense of civic duty in bringing an occurrence to the attention of project authorities. All complaints, whether notified by persons who feel personally aggrieved or acting out of a sense of civic duty, will be acknowledged and acted upon by project authorities. 5. The DFGG Project Complaints Handling System: The DFGG Project, although time-bound, will establish a Complaints Handling System (CHS) that will receive and act upon complaints from citizens or organizations in relation to any occurrences for which the DFGG Project is directly responsible (or believed to be responsible), and which are perceived by the aggrieved party to have involved corrupt, illegal, unjust, or unfair activities, omissions, or behavior.

1 Studies to review and seek improvements in the effectiveness of the District Ombudsman and the MONASRI complaint reception process are already planned for the pre-implementation phase of the DFGG Project, and assessments of the Arbitration Council�s effectiveness will be conducted and will inform the further improvement of the AC�s activities during project implementation.

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6. The CHS will consist of mechanisms and procedures at two levels: (i) the various IAs; and (ii) a Complaints Handling Mechanism (CHM) which will involve the PMT and, as need, the PCG, and will be supported through the MOI�s PCO. These are briefly described below:

(a) At the level of an individual IA, it is envisaged that complaints may fall under one of three situations:

(i) the complaint refers to outputs, activities and processes that fall under the

IA�s mandate � at first instance, these should be handled by the relevant IA, where it is assumed that an understanding of the concerns raised and options for addressing them will be greatest;

(ii) the complaint refers to an issue outside the mandate and scope of work of the IA � these should be channeled to the appropriate agency; and

(iii) the submission is not a complaint but, in effect, a request for information or clarification � the required information or clarification, if within the scope of the IA, will be provided directly or will be channeled to the appropriate agency, if needed.

In support of this approach, each IA should have a clearly designated focal point, who will receive, screen, and route the submission as appropriate � whether to be handled within the IA, through its internal mechanism, or forwarded elsewhere. If resolution of the complaint through the IA�s internal mechanism is not achieved, the complaint will be referred to the MOI.

(b) The Complaints Handling Mechanism (CHM) at the MOI may receive submissions directly from stakeholders, through the DFGG website, and in written or verbal form (if a phone hotline is established); it may also receive complaints forwarded by the IAs, as noted above. As in the case of the IAs, the CHM will require the screening of submissions for appropriate handling. The CHM will directly focus on and seek to resolve those complaints (and requests for information or clarification) that pertain to outputs, activities and processes undertaken by the DFGG Project, i.e., those which (i) are described in the Project Implementation Manual; (ii) are funded through the DFGG Project (including counterpart funds); and (iii) are carried out by staff or consultants of the six IAs, or by their partners and sub-contractors, directly or indirectly supporting the project. It is envisaged that such cases would fall under (but are not limited to) the following categories:

(i) request for information, comment or suggestion, e.g., request for

clarification as to the delay in reimbursing expenses of participants in a given training event;

(ii) violation of rights or non-performance of obligations, e.g., complaint by consultant or firm whose contract is suspended as a result of presumed poor performance or non-delivery of agreed-upon outputs;

(iii) grievances or offenses involving a violation of law, e.g., allegations of corruption; and

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(iv) complaints against project staff, members of project committees, consultants, and sub-contractors involved in project implementation, e.g., allegation of bias in the awards of the Grant Making Committee for Component 2.

Examples of activities or events which the CHM at the MOI will not address would be:

§ opinions given by callers to the RNK talk-back program; § awards regarding labor disputes issued by the Arbitration Council; § application of laws which are under the purview of MONASRI; § the types and extent of services provided by the One Window Service

Office; § the results of social accountability audits carried out by an NSA grant

recipient; and § opinions about government programs outside the mandate of the DFGG

Project, voiced by participants in learning and communication activities conducted under Component 3B.

In the event that complaints are received concerning such activities, these will be acknowledged and then passed on to the relevant agency for appropriate handling.

7. Figure 1 below summarizes the key features of the CHS of the DFGG Project, differentiating between the mechanisms that are foreseen within each IA and that which would become available at the MOI through its PCO. These features are further described in following, with special emphasis on the CHM to be housed in the MOI.

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IA/PCO registers, acknowledges, and screens

submission

PCO Focal Point prepares brief

IA reports case to MOI if not resolved

successfully within the IA

Case is resolved

IA handles through its

CHM

IA/PCO refer to appropriate

agency if not project-related

�.

Complaints Committee

assesses case

Complaints Committee

reports case to PCG if not resolved successfully within CC

Case is resolved

Case goes to DPM if not solved by

PCG

Inform complainant

Receipt of complaints via IA or project website, letter or phone

Record in IA/PCO files

Disclose results on IA/project

website

Report to CC and PCG

Figure 1: DFGG Complaints Handling System: Key Features

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8. Principles of the CHS: The principles upon which the DFGG CHS will be founded are:

(a) Accessibility: There will be alternative entry points to access the CHS. Complaints may be submitted through any of the IAs or to the MOI PCO. Complaints may be submitted in writing, by phone, or through the DFGG Project website. Complaints may be made by or on behalf of an individual, a community, or an organization. Individual communities and citizens may submit complaints either directly, or through a proxy organization, such as a NGO or trade union. The CHS, its structure and processes will be kept simple so as to be easily understood by all citizens and stakeholders. (b) Outreach: Information about the CHS, and the alternative ways to access it, will be posted on the DFGG Project website, and will be presented and explained during DFGG Project orientation activities. Project publications, especially those targeting citizens, communities, and NSAs, will contain key information detailing the alternative channels for submitting complaints and explaining the process involved. (c) Neutrality: To ensure fairness in the handling of complaints, a Complaints Committee (CC) will be established. The core of the CC will be drawn from the PMT, but will also include a respected and neutral representative of the non-state sector and a representative from the Research and Training Organization engaged to facilitate implementation of Subcomponent 3B (see Institutional Arrangements below). Committee members will absent themselves from committee business in the event that they or their agency are the subject of a complaint. (d) Responsiveness: Receipt of all submissions will be acknowledged by the IA and by the PCO (as appropriate) within five working days. Consideration of valid complaints by the Complaints Committee will occur within 30 working days, giving time for collection and examination of evidence if required. Additional time may be required for negotiation with aggrieved parties, but resolution should not exceed 45 working days. (e) Openness and transparency: The project will keep a record of all complaints submitted, including their outcomes, and details of time taken to consider and resolve the complaints. A regularly up-dated summary of this record will be posted on the DFGG Project website, and will be available to stakeholders and the media.

(f) Anonymity and confidentiality: Citizens submitting complaints may request anonymity, in which case their names will not be made public through the website or released to the media. Confidentiality will also be observed during the period in which the Complaints Committee is considering a case (e.g., the source and any person, company or entity accused of wrongdoing should be protected).

(g) Flexibility: The overall DFGG Project CHS and the CHM at the MOI more specifically, will remain flexible in order to ensure alignment with the evolving mechanisms and processes within the other participating IAs, and to be able to incorporate the lessons and experience that will be made available in the course of project implementation. To this end,

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the overall CHS and the CHM at the MOI will be subject to stakeholder review at least annually.

9. Institutional Arrangements for the CHM at the MOI: The CHM at the MOI will not require

an additional institutional structure but will draw on existing resources through the following:

(i) Complaints Committee: To ensure fairness, oversee due diligence, and coordinate as needed across IAs in the handling of complaints, a Complaints Committee (CC) will be constituted. The CC will have a maximum of six members, the core of which will be drawn from the PMT (the DFGG Project Director and two other Project Directors from the IAs1). The CC will also include the PCO Internal Auditor. In addition, to ensure neutrality, the committee will include, one or two respected representatives of the non-state sector, to be nominated by the Grant Making Committee (GMC) of Component 2 (which is a CSO-dominated body) or from within the Advisory Committees of the various components and subcomponents.2 A representative from the Research and Training Organization (to be engaged to facilitate implementation of Component 3B) will also be invited to participate as an observer. The Project Director will chair the Committee meetings. (ii) PCO support: Overall responsibility for managing the CHM at the MOI will be held by the Project Director. A staff of the MOI�s PCO will be appointed as the focal point for undertaking the day-to-day tasks associated with the various steps of the process described below. It is anticipated that staff from the MOI Inspection Unit may join the PCO to undertake these support tasks.

10. Key Steps and Processes of the CHM at the MOI are:

• Receipt, registration, and acknowledgement of submissions: In all cases, acknowledgement should be provided to the complainant within five working days.

• Screening of submissions: Complaints which are not related to an area of DFGG Project responsibility will be forwarded to the relevant authority. All other submissions will be sent to the CC for consideration.

• Preparation of the case brief: For all cases which are to be sent to the CC, the PCO focal point will prepare a brief report summarizing the origin and nature of the complaint, the proposed action to be taken, and the scope of the response to be provided. This report will be presented to the CC, along with the original complaint.

• Informing the World Bank: In cases where a complaint might, if substantiated, involve a breach of the IDA legal agreements, the Bank�s Task Team Leader must be notified immediately and be kept informed of the investigation process and its outcome.

• Assessment: Reports on complaints will be reviewed by the CC, observing the principles of neutrality and responsiveness indicated above.

1 These may be selected to serve on the Committee for a given period of time (e.g., one year) or on an ad-hoc basis , depending on the nature of the case brought before the Committee. 2 The number of representatives of civil society and the process whereby they will be selected to serve on the CC will be established after discussion with IAs during the pre-implementation period (see Follow-up Activities below).

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o Initially, the Committee should consider all complaints within 10 working days of receipt of the brief. The Committee will preferably consider cases when it comes together for the monthly PMT meetings. However special meetings should be convened to consider cases where the nature of the complaint requires urgent action.

o Where appropriate, the Committee may order further investigations and will designate one Committee member to oversee them. The PCO focal point may be called upon to obtain additional information on the case. The CC may also request that the RTO assist in further investigation and analysis of the case.

o Persons, companies or entities accused of wrongdoing must be given a fair opportunity to present their side of the case.

o The aim should be to have sufficient facts for adjudication within 15 working days after the case is presented to the Committee.

o In cases where investigations are complex and unavoidably take longer, the complainant should be notified of progress at two-week intervals.

o Deliberations of the CC will be by consensus. • Response: A formal response to the complainant will be issued in all cases, informing (i)

whether the case was brought before the CC or was forwarded to another agency (and explaining why); (ii) what the outcome of the CC�s deliberations were; and (iii) what follow-up actions are to be carried out.

• Disclosure: Public disclosure (e.g. on the DFGG Project website) of the complaint, results of the assessment, and follow-up actions recommended by the Committee should be made once the Committee decision is reached, observing, however, the principle of anonymity and confidentiality as may be requested or required under certain cases.

• Record-keeping: The PCO focal point will keep records of the cases received, where and when they were routed, and the outcomes of the resolution process.3 For each case, all notes, memos and letters relating to a complaint and its investigation, must be maintained for review for a minimum of two years after the completion of the project. A summary report of the activities of the DFGG Complaints Committee, listing all complaints, responses, and processing times, will be submitted to each meeting of the Project Coordination Group.

11. Table 1 below summarizes the roles and responsibilities of the MOI and the Complaints Committee in the DFGG CHM.

3 It is recommended that a Complaints Book (or computer file) be kept with: reference number, date and time, mode of receipt, person receiving; complainant�s name and contact details (these should be recorded and cross-referenced in separate book/file, to protect source); details of complaint; date first considered and further investigations ordered; summary of investigation findings; date of final consideration, decision reached, agreed action; date of notifying complainant and other concerned parties of decision and remedial action; date of follow-up to check that remedial action has been taken; date of case closure.

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Table 1: DFGG Complaints Handling Mechanism: Roles and Responsibilities of the MOI and the Complaints Committee

MOI PCO Project Coordinator • provides oversight of day-to-

day processes MOI PCO Focal Point • receives • registers • screens • prepares brief • records discussion • informs of results • provides reports for PMT and

PCG MOI Inspection Unit • provides support to Focal

Point

DFGG Complaints Committee composed of: • DFGG Project Director • 2 IA Project Directors • MOI Internal Auditor • 1 or 2 representatives of civil

society Roles • assesses/resolves cases • refers cases, if not successfully

resolved to PCG

PCG/DPM • consider/resolve

appeals

12. Right of Appeal and Alternative Mechanisms: In the event that a positive resolution of a complaint cannot be reached within 45 working days and no explanation is provided by the PCO as to why further time is needed to adequately consider the case, or if the aggrieved party is unsatisfied with a decision of the Complaints Committee, the matter may be referred to the next meeting of the PCG for consideration. If the PCG cannot resolve the issue, the PCG will refer the matter to the Minister of Interior for resolution. 13. In addition, incidents of corruption in relation to the use of DFGG Project funds, including unsound procurement activities, or improper use of equipment procured or purchased with DFGG funds, by staff appointed to the DFGG Project, by official partners of the participating IAs, by sub-contractors, or by NSA grant recipients, can also be channeled to the Government�s Anti-Corruption Working Group established in MONASRI. At any time, a complainant retains the right to utilize the Cambodian court system. 14. The complainant may also utilize the complaints and remedies mechanism of the World Bank. Cases of fraud and corruption should be directed to the INT of the WB. 15. Follow-up Activities during the Pre-implementation Period: The general approach described above will be reflected in the Project Implementation Manual for the DFGG Project. Detailed design of the CHS will be undertaken during the pre- implementation period. This work program4 will comprise the full design of the operational features of the CHS, refining the key 4 To be financed through PPF-2.

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system features outlined above, including proposed principles, institutional structures and processes. This will include definition of (i) whether members of the CC will be appointed on a fixed-term or a case-specific basis; and (ii) the number and selection process for representatives from civil society to serve on the CC. 16. The work program will also design the supporting operational systems to:

(i) facilitate access on the part of the public to the various entry points of the CHS (e.g., DFGG Project website and IA websites, Q&A sheets to be made available at the IAs and DFGG Project events);

(ii) process complaints (e.g., register, screen, forward, record results); and (iii) inform on overall working of the CHS (e.g., cases received, where directed, cases

pending and effectively resolved/closed, cases appealed). 17. With respect to the CHM housed at the PCO, in addition to the above, ToRs for the Complaints Committee and the PCO focal point will be prepared. A Complaints Book (or computerized file) may be established. 18. The key features of the CHS (e.g., the principles, institutional structures, and processes described above) should also be present in the CHMs of the various IAs. A detailed assessment of the current features of their systems will be carried out during the pre- implementation period, and recommendations made for their strengthening as appropriate. In this context, their specific mandates, as well as the scope of activities already envisaged in their individual project proposals, will be taken into account. 19. Before project effectiveness, the institutional structures, processes and operational systems of the CHM housed at the MOI should be in place. The IA mechanisms should have been revised and strengthened as per recommendations of the above work program, and should be in alignment with each agency�s four-year work program and timetable, as described in their PP. The PIM will be updated as needed to reflect the detailed design of the CHS.

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Annex 12: Communication Strategy CAMBODIA: Demand for Good Governance Project

A. Introduction 1. The power of information is critical in creating genuine public demand for good governance (DFGG).5 By the same token, effective communication is expected to play a crucial part for success of the DFGG Project in Cambodia. In this context, a sound communication strategy has been developed that will help mobilize broader support for work on DFGG in Cambodia, and help sustain and expand results. The communication strategy will aim to explain the project (and similar initiatives elsewhere) to different stakeholders and in turn assist the project to listen and learn from them during implementation. Thus, communication will contribute to both outreach and learning-by-doing. 2. The project�s communication strategy will work at three levels. First, it will help promote the expanded services offered by the SIs, by marketing them (using mass media, interpersona l and even entertainment channels) to wider audiences as these services develop. This will help generate positive and increased demand for these services. However, while the Land Law dissemination campaign in Component 1B and the radio programs in Component ID are expected to target a national audience, special measures will be taken to design culturally appropriate communication mechanisms to target special segments like indigenous people, youth and women, when needed. Second, it will help bring in additional NSAs to be funded through the project. It will also explain to rejected applicants why their application was not selected. Additionally, it will enhance the transparency of the grant-making process. Third, it will disseminate results and lessons from the DFGG Project and similar initiatives, and promote the exchange of ideas among key decision makers to ensure the project�s sustainability over its four- year span and beyond, to generate complementary and supplementary efforts, and to deepen the understanding of demand-side approaches in Cambodia. This will encourage other decision makers to undertake further investments in DFGG � enabling the desired �ripple effect� from the project. 3. To achieve the best results, communication efforts will be phased over the life of the project. Investments will focus predominantly within project Implementing Agencies (IAs) in the first year, to widen their understanding of and involvement in communication activities. Communication efforts for the overall project will start small and then expand out in the subsequent years with increase in concrete results and lessons learned. Because communication is a relatively new venture for the institutions supported by the project, initial emphasis will be placed on building capacity within the institutions to ensure effective communication interventions, starting in the pre- implementation phase. 5 A recent worldwide survey of social accountability practitioners reported that 84 percent of them find public opinion very important in effectiveness of social accountability mechanisms while another 11 percent find it to be important. See NGO Social Accountability Practitioners Survey, CommGap, World Bank, October 11, 2007.

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B. Comprehensive Communication Strategy for Overall Project 4. The overall objective of the communication strategy for the project is to help build capacity for good governance practices by promoting inter-agency and state-civil society collaboration within a network of good governance partners. While functioning under Component 3, it is also linked to the communication plans of the State Institutions (SIs) in Component 1 as well as to the Non-State Actors (NSAs) in Component 2. The intense communication activities within Component 1 and 2 will heighten awareness, generate positive attitudes and promote demand-side approaches to good governance to wider audiences in the country. The overall strategic vision can be summarized through a �pyramid� of relationships with the component level communication activities at the base, followed by targeted outreach and lessons sharing at a project-wide level (see Figure 1 below). The apex of the pyramid would be the contribution made to the overall development objective of the project, viz., to enhance the demand for good governance in priority reform areas by strengthening institutions, supporting partnerships, and sharing lessons.

Figure A12.1: Conceptual Vision for Project Communication Strategy

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C. Communication Strategies for Project Components

C.1 Component 1: Support to State Institutions 5. Four mutually supporting communication strategies will help the chosen SIs reach their projected results. The overall goal of their strategies is to help citizens and beneficiaries avail the most from the various services or programs offered by the SIs by increasing the ir knowledge and understanding of benefits. Successful experiences with the SIs and their programs will lead to more empowered citizens, and increase DFGG. The specific elements of the communication strategies for the individual SIs are outlined below. 6. Communication Strategy for Component 1A: Arbitration Council (AC): The objectives of the AC communication strategy are to:

a. increase knowledge of, and confidence in, the arbitration process, and explain its benefits and how to use the process;

b. raise awareness inside and outside the country about the work of the AC as a working example of good governance in Cambodia; and

c. support resource mobilization for the AC. 7. These objectives will be achieved through a series of activities that target specific audiences such as trade union leaders and members. A two-track approach will combine, firstly, direct dissemination through the existing AC website, the AC publications, simple user guides, library/information center, and presentations by arbitrators and, secondly, indirect promotion to reach the general public through greater use of electronic media, annual media campaigns, regular press briefings, etc. The activities will also include programming events and giving awards to raise the profile of the AC process in the country. Linkages will be sought with other SIs by providing information about the AC at One Window Service Office (OWSO) sites, and through the greater use of the Radio National Kampuchea (RNK) talkback radio programs. 8. Communication Strategy for Component 1B: Ministry of National Assembly Senate Relations and Inspection (MONASRI) - The objectives of the MONASRI communication strategy are to:

a. disseminate the information about the Land Law and its provisions ; and b. inform the public about the availability and specifics of MONASRI�s complaints

handling system. 9. Starting with a few provinces, MONASRI will scale up the dissemination nationwide by the final year of the project. It will use communications tools and strategies including electronic and print media, publications, educational videos, a website, interactive web forums, media briefings, and media events. To increase the effectiveness of these efforts, the project will support an international expert in communication to provide technical assistance (TA) and mentoring. In addition, the project will provide capacity building and institutional strengthening in communication.

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10. Communication Strategy for Component 1C: One Window Service Office (OWSO) and District Ombudsman (DO) Office - The objectives of the OWSO and DO communication strategy are to:

a. inform citizens about the purpose and benefits of the OWSO and DO; b. raise awareness about the OWSO and how other ministries can benefit from

integrating selected services into the OWSO framework; and c. expand the demand in the existing areas through a more assertive outreach campaign.

11. Activities will include publication and distribution of promotional materials for the OWSO and DO services; media-covered annual award for staff at OWSO; mass media, nationwide campaigns supported by actions at local leve l; feature stories on RNK about satisfied customers; orientation sessions for other ministries; short videos detailing services and how they work; proactive road shows by the DO; annual publication of statistics about OWSO; and organizing media site visits at the time of the opening of the OWSO. By sharing the results of the project at national level, more interest and support will be created for the approach and for the demand for good governance generally. 12. Communication Strategy for Component 1D: Radio National of Kampuchea (RNK) - The objectives of the RNK communication strategy are:

a. for government officials: to increase the willingness of government officials to appear on talkback radio and be interviewed on serious issues;

b. for potential listeners (general and youth): increase RNK�s credibility, develop a feeling of ownership toward the RNK, consequently leading to an increase in audience share;

c. for current listeners: Ensure that programs are listened to and internalized resulting in the intended behavior change;

d. for the Ministry of Information and RNK staff: increase their engagement, pride and dedication and adhesion to the project;

e. for state and non-state partners: increase use of the RNK for SI promotional and mediation efforts;

f. for potential advertisers: to promote the use of RNK by advertising their products and services; and

g. for media: to increase coverage of RNK and develop partnerships with other broadcasters.

13. To achieve these objectives in terms of both the promotion and the mediation functions of DFGG, RNK will need to increase its audience share, and particularly focus on youth, women and other marginalized groups. Activities are designed both to enlist government officials to participate in talkback programs as well as to extend the reach of the programs to wider audiences so that they will have more impact. In addition, RNK will organize training sessions on editorial policies for internal staff. Partnerships with civil society and other media that reach new audiences for RNK are an important feature of the strategy.

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C.2 Component 2: Support to Non-State Institutions 14. The objectives of the non-state institution component communication strategy are to:

a. promote learning of DFGG approaches among SIs and NSAs; b. promote models of constructive engagement; c. increase awareness of the Component 2 grant program; d. explain to unsuccessful grant applicants why their proposals were not selected; e. enhance the overall transparency of the grant-making process; and f. apprise stakeholders on Component 2 progress; g. support resource mobilization.

15. Promotion of the Development Marketplace (DM) mechanism is at the heart of the communication strategy for this component. The main goal is to reach beyond the usual group of civil society organizations and to be as inclusive as possible in soliciting organizations that can qualify for grants. Planned activities include targeted promotional campaigns using a Khmer Brand for the DM, as well as use of a web portal to solicit and receive applications. One of the focus areas for grants will be to strengthen the role of the independent media in its coverage of governance issues. The DM itself will provide an important opportunity to leverage NSA programs supported under Component 2. The use of regional seminars will help reach broader audiences, and print materials and publications will support these ongoing efforts. C.3 Component 3: Coordination and Learning 16. The communication strategy under Component 3 is integral to achieving the project�s immediate objectives, in particular, to draw and communicate lessons through effective learning approaches, and to build the capacity for good governance practices by promoting inter-agency and state-civil society collaboration within a network of good governance partners. While in Component 1 and 2, the IAs work to achieve their own communication objectives, collectively they also contribute to the overall communication objective of increasing understanding and support for DFGG in Cambodia. The DFGG communication strategy presents these efforts in a coherent and targeted way which contributes to the desired �ripple effect� beyond the institutions directly involved in project implementation. Accordingly, the main objectives of the communication strategy for Component 3 (which are the same as for the overall project) are to:

a. build support and understanding for the DFGG Project by raising awareness about its objectives, activities and results; and

b. generate interest, better understanding and support for the concept of good governance and social accountability in Cambodia.

17. A series of discrete, but mutually reinforcing activities will help achieve the objectives for the strategy:

a. a web portal to serve the overall purposes of the project, including an online newsletter, as well as case studies, background documents, and other reports produced in the course of project implementation;

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b. a message development workshop to promote good governance and social accountability, and communicate the concept of DFGG in Khmer to local audiences;

c. limited forums to reflect on key challenges, lessons learned and next steps; participants would include leaders from the various SIs and NSAs supported by the project, including the recipients of the DM awards as the project moves forward;

d. an annual Good Governance Forum with participation from targeted SI and NSA leaders, reporting on implementation of the project, showcasing experiences and lessons, and disseminating DFGG concepts and tools to a wide audience;

e. a series of open forums/discussions on the DFGG concept with limited participation of development partners;

f. targeted advocacy campaigns on project results will be developed for use at the Annual Cambodia Development Cooperation Forum (CDCF) and the Government Donor Coordination Committee (GDCC), among others;

g. regular media briefings on the project and issues, organized on a quarterly basis ; h. feature articles commissioned with local journalists, covering success stories and

lessons learned, within the project and through similar initiatives elsewhere, of relevance to the Cambodian case; and

i. communication training activities, organized at two levels: (i) capacity building for staff within the core DFGG group (i.e., the SIs and the Asia Foundation), and (ii) capacity building for leaders from the DM grantees as well as for others in the DFGG constellation.

D. Designing and Implementing the Communication Strategy 18. The project will adopt a three-phase approach, comprising:

a. Research and Development of the Strategy: Through the RTO and under the leadership of the PCO, there will be consultation with key project stakeholders to define key areas of substantive focus, agree on communication processes, and assess appropriate methods. Terminology will be discussed, initial messages identified, and key stakeholders and target audience mapped. This work will start during the pre-implementation phase.

b. Outreach and Advocacy: The project will likely have few results to showcase during the first year of implementation. Thus the focus will initially be on (i) developing capacity within MOI and the IAs using both in-house and contracted resources, and (ii) promoting discussion forums and a select number of activities to disseminate concepts and tools, focusing on key stakeholders.

c. Promotional Activity: While the initial focus of the strategy will be on a narrow set of audiences, it will gradually build up to include a broad range of decision makers at national and sub-national level, as well as development partners.

19. The communication strategy will thus be designed to match the expected results of the project. At first, the focus will be on networking and partnerships, building up to outreach and then more high profile activities in the last two years of the project (see Figure 2).

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Figure A12.2: Proposed Phasing of Communication Strategy

20. To promote implementation of the project�s Communication Strategy, in addition to resources that will be mobilized within Components 1 and 2, involving a combination of international and national TA as well as subcontracts, a small Learning and Communication Unit (LCU) will be established within the Project Coordination Office (PCO). This unit will be responsible for implementation of the project�s overall communication strategy, and specifically for the Communications Program of Subcomponent 3B. To support the unit, the MOI will partner with a Research and Training Organization (RTO) that will take primary responsibility for preparing annual work plans, organizing and facilitating workshops and seminars, documenting lessons, and other learning and communications activities. A Learning and Communication Focus Group will be established and remain active throughout the life of the project, playing an advisory role with respect to the project�s programs. The LCFG will play a key advisory role, helping to prioritize themes and activities, to assess learning needs of the IAs, to identify lessons learned and potential partners, and to build bridges across institutions. It will help coordinate the communication efforts ensuring that there is a consistency of messages and that lessons learned from one component are shared across all components.

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Annex 13: Risk Management Framework for Non-State Institution Component CAMBODIA: Demand for Good Governance Project

1. The Non-State Institution Component is highly innovative and unusual for a Bank-financed project, which inevitably means that a qualitatively different set of risks can be expected. The risks are relatively high, but the strong returns anticipated from bringing non-state actors (NSAs) into more prominent governance roles in Cambodia justify these risks. Anticipation of the risks also permits timely mitigation measures, which would both reduce their likelihood and mitigate their impact. 2. The unusual characteristics of the component (which bring new order risks as well as opportunities) are: a) it finances activities proposed (and implemented) by NGOs and other NSAs in the politically sensitive area of governance reform, and therefore could generate jealousies and tensions; b) it is implemented by a non-state mechanism comprising an international NGO (as secretariat) and a multi-stakeholder committee that decides on grants (which includes government representation but does not report to government); some officials within government, and conceivably, some critics of government, might seek to unduly influence the process; c) NSA roles in governance are relatively new in any country, but more so in Cambodia � hence it remains to be tested whether there will be adequate proposals for NSA-led initiatives of deserving quality; and d) government relations with NGOs, think tank leaders, independent journalists and other categories of NSAs have often been highly strained in Cambodia, hence there is little tradition for constructive dialogue on sensitive policy issues; there may be barriers to achieving this within the boundaries of the project. These risks are significant, and unusual ones for the Bank to address, but steps have been taken during project preparation, and will continue to be taken during project implementation, to mitigate them. The following framework describes these risks and mitigation measures in more detail. NOTE: Formula for Risk Score: Consequence x Likelihood = Magnitude of Risk Consequence: 5=very serious, 4=serious, 3=moderate, 2=minor, 1=insignificant Likelihood: 5=very high, 4=high 3=medium, 2=low, 1=very low Magnitude Rating: 6 or less is low risk (L), 7 � 13 is moderate risk (M), and 14 � 20 is significant risk (S). Scores above 20 are high risk (H).

Risk

Description

Impact Risk Score

without Mitigation1

Mitigation Strategy Risk Score

with Mitigation

Risks associated with the grant-making mechanism Grant selection process could be seen as tainted by bias and

A grant selection process that lacks integrity will compromise the

Consequence (5) x Likelihood (4) =

• Well-defined and transparent eligibility and rating criteria have been developed to ensure the rigor and objectiveness of the grant-making process;

• Clear and rigorous M&E framework - including independent evaluators and

Consequence (5) x Likelihood (2) =

1 The intended purpose of presenting risk scores before and after the mitigation measures is to enable the project designers and implementers to assess the effectiveness of the proposed mitigation measures in reducing anticipated risks; and in case that the projected mitigation measures are insufficient, to propose additional strategies.

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Risk

Description

Impact Risk Score

without Mitigation1

Mitigation Strategy Risk Score

with Mitigation

favoritism NSA component as it will impede genuine competition and will reduce the sense of NSA ownership needed for successfully fostering citizen demand

Risk (20) S

third-party monitors - and careful diligence process have been developed to identify and prevent patronage or bias;

• GMC members will be chosen through an open, transparent and rigorous selection process to create a clear code of conduct and reduce risk of patronage;

• The open and transparent nature of the DM will reduce the risk of co-optation of the grant selection process;

• Well-defined grievance mechanism will be developed to address problems in the grantee selection process to avoid any misinterpretations of the process;

• In addition, high-level MOI commitment will ensure independence and integrity of grant process, to which they have provided inputs during preparation;

• Similarly, TAF�s strong reputation and experience in grant-making will significantly decrease the possibility of the grant selection process being seen as tainted by bias and favouritism.

Risk (10) M

Including large grants makes the component overall riskier

Any problem occurring with a large grant is likely to very visible and so evoke criticism of the component overall.

Consequence (4) x Likelihood (4) = Risk (16) S

• Large grants will be reserved for networking, coalition building and national-level NSAs such as professional associations � i.e., to grantees with proven track records and experience;

• Applicants will be required to submit references from donors or international NGOs to whom they are well-known;

• Such grants will be for several years with tranched disbursements; each tranche will be tied to monitorable deliverables.

• TAF will undertake more rigorous scrutiny of applicants� financial processes, systems and track record; including on-site inspection.

Risks associated with the sustainability of this approach Grants do not have impact and sustainability because of their one-off nature

Lack of continuation and a demonstration effect will curtail overall impact of the program

Consequence (5) x Likelihood (4) = Risk (20) S

• NGOs will be encouraged to submit multiple grants that build on the work of previous ones in order to ensure the sustainability and impact of their initiatives;

• 2-year grants will be employed to build medium term sustainability;

• Large grants will be used to support regional coalitions and networking and to build on experience in social accountability and other participatory methods, which, in turn, is expected to

Consequence (4) x Likelihood (3) = Risk (12) M

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Risk

Description

Impact Risk Score

without Mitigation1

Mitigation Strategy Risk Score

with Mitigation

contribute to augmentation of the impact of NSA initiatives;

• Outreach and capacity building programs will be used to build awareness about the social accountability approach and publicise lessons of experience, encouraging NSAs to build on success and sustain their work;

• NSA component and PECSA programs will develop capacity of NSAs to continue their work beyond the project;

• Annual Good Governance Forum organized by PCO will showcase good examples to motivate others and to increase the ripple effect of the DFGG work.

DM mechanism is not sustainable

Grant making for DFGG will stop after the project

Consequence (3) x Likelihood (5) = Risk (15) S

• The Bank and the RGC are making long-term commitment to DFGG that are likely to be some follow-up initiatives that build on this work;

• The DFGG project will coordinate and harmonize its activities with other donors working on demand-side of governance to develop synergies, especially with the NGO foundation of DFID/DANIDA;

• TAF will continue grant making beyond the DFGG project and will implement lessons learned in future work;

• Long-term approach to capacity building will be supported throughout the project, encouraging relevant stakeholders to continue investing in DFGG initiatives after the project is finished.

Consequence (3) x Likelihood (3) = Risk (9) M

Risks associated with NSAs in Cambodia Lack of demand for grants

Project funds will not get utilized and there will be slow disbursement, little contribution of civil society to enhancing governance

Consequence (5) x Likelihood (4) = Risk (20) S

• An extensive outreach strategy has been included building on, and complemented by, PECSA that mobilizes existing NGO networks, spurring demand for NSA grants;

• NSA component is being preceded by PECSA program specifically meant to build capacity and stimulate demand from NSAs for undertaking DFGG activities;

• Large and medium grants will promote coalition building and networking of organizations so they can continue and spread the work of partners;

• The application process will be simplified so it attracts a greater number of applicants;

Consequence (4) x Likelihood (2) = Risk (8) M

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Risk

Description

Impact Risk Score

without Mitigation1

Mitigation Strategy Risk Score

with Mitigation

• A broad range of NSAs, not just NGOs and CBOs, will be targeted to ensure a sustained demand for grants.

Lack of absorptive capacity for medium and large grants

Project funds will not get utilized and there will be slow disbursement

Consequence (4) x Likelihood (4) = Risk (16) S

• A flexible management strategy will be employed so that funds can be diverted to the small grants window;

• In each subsequent round of the grantmaking process, repeaters will be particularly encouraged (i.e., grants that build on previous grants ), ensuring a greater absorptive capacity for medium and large grants;

• Absorptive capacity of NGOs will be strengthened through capacity building measures;

• Experience will be assessed at three different points in project implementation: (i) after conclusion of the PECSA pilot; (ii) after the first development marketplace (DM)-like event; and (iii) at the project�s mid-term review. All three inputs may lead to adjustments in design of the component, .e.g. mechanisms for medium and large grants might be readjusted.

Consequence (3) x Likelihood (2) = Risk (6) L

Grant funds are not used for intended purposes

Undermine overall effectiveness of NSA component

Consequence (5) x Likelihood (4) = Risk (20) S

• Legal agreements will specify the responsibilities of various parties in the event of grantee malfeasance; the key document establishing such responsibilities will be the Bank�s Anti-Corruption Guidelines; the Bank may take sanctions if those parties fail to take timely and appropriate action to address such practices when they occur;

• A due-diligence process will be undertaken to determine any implementation risks related to intended objectives of the select grantees� projects;

• TAF will contract an independent NGO to conduct random checks on grant recipients and a Cambodian think tank to undertake a survey of the component and assess particular grants every 2 years;

• Grantees will receive capacity building assistance on fiduciary matters to ensure the transparency and accountability of their work;

• Regular financial and narrative reports will be requested from grantees to make sure that funding has been used for

Consequence (4) x Likelihood (3) = Risk (12) M

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Risk

Description

Impact Risk Score

without Mitigation1

Mitigation Strategy Risk Score

with Mitigation

intended purposes; • Large grants will be provided in tranches,

so as to decrease the likelihood of misallocation of funds;

• A fair and accessible a grievance mechanism will be established so as to encourage all involved to provide information about misuse of funds.

Grant recipients lack legitimacy in not truly representing citizen concerns

Will undermine credibility and effectiveness of NSA component

Consequence (5) x Likelihood (5) = Risk (25) H

• Well-defined selection criteria will be used in a rigorous and transparent screening process so as to identify applications for good quality initiatives driven by community interests;

• Select GMC members will be able to identify initiatives that represent real citizen concerns, based on their rich experience from the NSA sector in Cambodia;

• A reliable third party will be required to endorse little known, smaller NSAs so as to avoid legitimacy issues;

• The very open nature of the DM will reduce the risk of distortion of the grant selection process;

• Well-defined grievance mechanism will be designed to address problems in the selection process, so as to allow citizens to express their opinion about select initiatives;

• Well-defined and rigorous M&E framework and due diligence process will identify any patronage or technical issues with grant selection.

Consequence (5) x Likelihood (3) = Risk (15) M

NSAs whose applications are rejected may criticize NSA component

May discredit the grants mechanism

Consequence (4) x Likelihood (4) = Risk (16) S

• Grantees will receive necessary support during the application process on an equitable basis, ensuring an equal opportunity for all and diminishing criticism once the winners are announced;

• Grantees will be provided an opportunity to revise and resubmit their application so as to give them the second chance and demonstrate the fairness of the selection process;

• The grants process and selection criteria will be vetted with diverse DFGG stakeholders, so as to curtail criticism against the NSA component;

• The grant process will be publicized , as part of NSA component outreach, to emphasize its independence and create a

Consequence (4) x Likelihood (3) = Risk (12) M

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Risk

Description

Impact Risk Score

without Mitigation1

Mitigation Strategy Risk Score

with Mitigation

positive image; • Applicants will be given a feedback on

precisely why their application was not selected, so as to lessen their criticism;

• Rejectees will be directed to capacity-building program of PECSA, so they can develop their capacity for the next round of applications;

• The PCO will publicize its role in processing grievances regarding NSA (and other project components) to which applicants can appeal if they are unsatisfied with the application process.

The principles of constructive engagement may be viewed by Cambodian NSAs as undermining the independence of the sector

May discredit NSA component and may discourage demand for NSA component grants

Consequence (4) x Likelihood (4) = Risk (16) S

• NSA component has designed a strategic outreach to ensure the public understanding of its overall objectives pertaining to constructive engagement;

• The principles that involve NSAs will be drafted through a consultative process with relevant stakeholders to ensure integrity and legitimacy of the NSA component;

• An iterative approach may be used such that the set of principles prepared through a consultative process are billed as �interim� to allow for further consultation and elaboration;

• NSA component will partner with GMC members or other senior NSA leaders to address concerns about the principles of constructive engagement, so as to ensure their broad acceptance within the civil society;

• The application and grants will be designed based on civil society consultations, to ensure NSAs have ownership of the process;

• Smaller and/or less experienced NSAs will be encouraged to submit joint applications, so as to avoid misinterpretations of them being manipulated through partnerships with state institutions;

• The independence of the GMC, which is composed mostly of NSA representatives, will be emphasized throughout the process.

Consequence (4) x Likelihood (2) = Risk (8) M

Risk based on the political climate in Cambodia RGC exerts pressure on

Will undermine the

Consequence (5)

• The project team has ensured that the RGC agrees to the grant selection criteria

Consequence (5)

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Risk

Description

Impact Risk Score

without Mitigation1

Mitigation Strategy Risk Score

with Mitigation

the grant selection process

independence of the process

x Likelihood (5) = Risk (25) H

prior to the implementation of the project; • Senior, highly respected individuals, who

can ensure the integrity of the process, will be selected to serve as GMC members to minimize the RGC�s pressure on the grant selection process;

• RGC members on GMC will be asked to routinely explain and defend GMC decisions to RGC so as to curtail RGC�s pressure on the grant selection process;

• NSA component through its IA, TAF, will emphasize principles of constructive engagement with grantees and SIs, so RGC does not feel a need to intervene;

• TAF will maintain close contact with SIs and government officials to anticipate any concerns regarding grantee and resolve them early;

• The DFGG project team will call upon MOI to mediate if pressure is coming from another SI;

• TAF will keep the WB abreast of any such concerns, and call upon them to facilitate if necessary.

x Likelihood (4) = Risk (20) S

Political fall-out as a result of a grantee�s work

Will undermine longer-term partnerships between NSAs and government and synergies between SIs and NSAs

Consequence (5) x Likelihood (4) = Risk (20) S

• Partnership grants will create a precedent for NSAs working with SIs, which can mitigate risk of political fall-out in the long-term;

• RGC will have an opportunity to provide input on grant selection process and criteria;

• Component 1 and PECSA as well as the grant selection process will promote constructive engagement between SIs and NSAs, so as to prevent confrontations between them;

• A comprehensive media and diplomacy strategy, with high profile spokespeople, will be employed to mitigate political backlash;

• NSA component will convene grievance committee to mitigate backlash if necessary;

• NSA component director will discuss pending concerns in overall DFGG project coordination meetings and solicit intervention, when needed, from MOI and other SIs, ensuring their constant support;

• The Bank will continue to support an enabling environment for constructive

Consequence (4) x Likelihood (3) = Risk (12) M

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Risk

Description

Impact Risk Score

without Mitigation1

Mitigation Strategy Risk Score

with Mitigation

engagement between the state and NSAs through planned and ongoing initiatives towards building trust and partnerships between SIs and NSAs.

Component will be used by RGC to exaggerate its commitment to reform

NSAs will be cynical about the purpose of the component and will view the Bank as giving RGC an easy, undeserved façade

Consequence (4) x Likelihood (4) = Risk (16) S

• NSA component will maximize the independence of the grant process (through GMC and Secretariat) and include a communications strategy to convey frankly any concerns of these stakeholders;

• NSA component will include independent assessments of the process, and the use of the Development Marketplace for stakeholders to put forward their experiences (positive and negative), so as to ensure a neutral presentation of the component in the public;

• The project team will meet with other donors to share experience and build synergies regarding demand-side of governance activities, so it remains abreast of all developments in the country;

• A pro-active outreach strategy by the Bank will complement the project communication strategy, balancing off possible RGC�s exaggeration about its commitment to reform.

Consequence (3) x Likelihood (4) = Risk (12) M

RGC support for this component waivers over time

RGC will be less receptive of well-constructed cases presented by NSAs and less prepared to build partnerships during implementation

Consequence (5) x Likelihood (5) = Risk (25) H

• The DFGG project team will encourage reformers in government (including RGC representatives on the GMC) to be vocal advocates for DFGG and the benefits it can bring to Cambodian development;

• Support for MBPI and PMG will provide a salary incentive for government staff to sustain implementation, and continue supporting DFGG;

• The DFGG project team will ensure, through coordination processes, that a consistent donor message is given to government of the importance of continuing with governance reforms, in particular in promoting greater transparency and enhanced engagement with NSAs;

• The DFGG project will d isseminate in Cambodia the positive lessons of experience from countries (especially Asian) where DFGG-type approaches have become widespread to strengthen Government�s commitment to DFGG.

Consequence (5) x Likelihood (4) = Risk (20) S

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Risk

Description

Impact Risk Score

without Mitigation1

Mitigation Strategy Risk Score

with Mitigation

Agreement with the MEF on payment of Management costs to TAF breaks down

TAF ability and willingness to implement the component will be compromised leading at best to poor quality implementation and at worst to a withdrawal of TAF from the project.

Consequence (5) x Likelihood (5) = Risk (25) H

• The DFGG project team will encourage the MEF and TAF to agree to a clear and concrete list of eligible expenses and cost estimates prior to signing of the Subsidiary Agreement so that there is no misunderstanding later.

• The schedule of payments of the management costs will be agreed upon in advance and linked to agreed performance, activity, and output timelines to be delivered by TAF.

Consequence (5) x Likelihood (4) = Risk (20) S

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Annex 14: Project Preparation and Supervision CAMBODIA: Demand for Good Governance Project

Planned Actual PCN review 6/26/2006 6/26/2006 Initial PID to PIC 8/7/2006 8/8/2006 Initial ISDS to PIC 8/7/2006 8/7/2006 Appraisal 4/16/2008 4/10/2008 Negotiations 8/25/2008 9/18/2008 Board/RVP approval 9/30/2008 12/2/2008 Planned date of effectiveness 1/30/2009 Planned date of mid-term review 1/30/2011 Planned closing date 1/30/2013 Key institutions responsible for preparation of the project: § The Ministry of Interior § The Arbitration Council § The Asia Foundation § The Ministry of National Assembly Senate Relations and Inspection § Radio National Kampuchea

Bank staff and consultants who worked on the project included:

Name Title Unit Bhuvan Bhatnagar TTL, Sr. Social Scientist EASSO Janmejay Singh Local Development Specialist EASSO John Clark Lead Social Scientist EASSO Bunlong Leng Environmental Specialist EASRE Oithip Mongkolsawat Sr. Procurement Specialist EAPCO Kannathee Danaisawat Financial Management Specialist EAPCO Ahsan Ali Sr. Procurement Specialist EAPCO Donald Mphande Sr. Financial Management Specialist EAPCO Edward Daoud Sr. Finance Officer LOAFC Anthony Toft Chief Counsel LEGES Roch Levesque Sr. Counsel LEGES Jeff Thindwa Sr. Social Scientist EXTIA Luc Lecuit Sr. Operations Officer EAPCO Kunthary de Gaiffier Operations Analyst EAPCO Quy-Toan Do Economist DECRG Masud Mozammel Sr. Communications Officer EXTCD Leonora Gonzales Sr. Communications Officer EACPF Prasad C. Mohan Chair, Staff Association WBGSA Loty Salazar Information Officer ISGOS Vanna Nil Social Development Specialist EASSO Anju Sachdeva Office Manager EASSO Narya Ou Program Assistant EACSF Bernadine D�Souza Program Assistant EASSO Vinay Bhargava Consultant, RNK and MONSARI Focal Point EXTCD Maria Teresa Serra Consultant, Arbitration Council and MOI Focal Point EASSO Sladjana Cosic Consultant, Social Accountability Specialist EASSO

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Jayasankar Shivakumar Consultant, Quality Assurance Specialist EACSQ Sopheak Ok Serei Consultant, Political Economy Specialist SDV Sreng Sok Consultant, Procurement Specialist EAPCO Daniel Adler Consultant, Justice for the Poor Specialist EASSO Path Heang Consultant, Social Scientist EASSO Moncef M. Bouhafa Consultant, Communication Specialist EXTCD John Richardson Consultant, Good Governance Framework Specialist EACSF Anne Kuriakose Consultant, Local Development Specialist EASSO Karti Sandilya Consultant, Project Concept Note EASSO Sanjay Pradhan Peer Reviewer PRMPS Daniel Ritchie Peer Reviewer EXTOR Pierre Landell-Mills Peer Reviewer EASSO Ed Campos Peer Reviewer SASPR Bank resources expended to date on project preparation (as of October 2008): US$ 478,694.57 Trust Funds: US$ 381,078.75 Estimated Supervision costs from Bank resources: US$ 150,000/year Trust funds: US$ 35,000-50,000/year Remaining costs to approval: US$ 10,000

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Annex 15: Proposed Supervision Strategy CAMBODIA: Demand for Good Governance Project

1. At the Regional Operations Committee (ROC) meeting (appraisal stage) held on March 13, 2008, Regional Management noted the need for intensive and continuous supervision of the project given its complexity and uniqueness, coupled with the challenging country context. Accordingly, Management requested the task team to prepare a Supervision Strategy. This annex lays out the rationale and principles for this Strategy, which will be further developed into a detailed Supervision Plan at a later stage. A. Rationale for Increased Supervision 2. The internal and external reviews of the DFGG project design have indicated that the project will require intensive supervision and monitoring, at least for the first couple of years of the project.1 Several important factors call for stronger supervision:

(i) Complexity: The complexity is inherent in the project�s ambitious development objectives and its strategy to include both state and non-state institutions and to link them together. In addition, the project will involve different sectors and various dimensions of DFGG. This complexity of the project design and multiplicity of actors and sectors may lead to poor implementation and coordination. Thus, aggressive supervision on the part of the Bank is required to ensure effective oversight of project implementation as well as to facilitate appropriate coordination.

(ii) Innovativeness: The DFGG project may arguably be the Bank�s first project devoted exclusively to developing demand side approaches to tackling governance issues, strengthening and linking the work of both state and non-state institutions. As a groundbreaking initiative without a ready precedent for guidance in the Bank, it will be important to continuously monitor and supervise the implementation to address any emerging issues, and to document the experiences for further learning and application of DFGG approaches by other country clients and the Bank.

(iii) Flexibility: The project design provides for considerable flexibility to enable timely response to changes in the evolving governance reform context in Cambodia. In order for the project to benefit from its built- in flexibility, strong monitoring and supervision will be critical to determine the appropriate and timely response to the changing circumstances and emerging needs of the project.

(iv) Challenging Country Context: As a post-conflict country, Cambodia is near the bottom for most indicators of governance. Key factors for growth and development - physical, social, human and economic � which had been destroyed during the conflict period need to be strengthened. Such a challenging environment calls for intensive supervision to support project implementation.

1 Given that the project will need more intensive supervision during the first two years of project imple mentation, supervision is expected to be scaled down at later stages and, consequently, the supervision budget will be reduced in the outer years.

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(v) Local Capacity Building : Strong supervision by the task team would enable continued technical support and advice it has been giving to the MOI and different implementing agencies (IAs) during project preparation to promote local capacity building. Additionally, intensive supervision would strengthen the partnership between the Bank and the client, in collaboratively and promptly identifying and resolving implementation issues that may arise.

B. Principles of Supervision Strategy 3. The purpose of the core principles for supervision presented below is to guide the task team on maximizing the use of supervision resources and ensuring high quality supervision of the project so that its development objectives are achieved.

(i) Complementing Bank supervision with client M&E systems: In designing a supervision plan, the task team would avoid duplicating the client country�s M&E system and instead build on, and strengthen it. Moreover, it would also help establish efficient reporting requirements to minimize overlaps in this area. Accordingly, Bank supervision would build on available information on the progress of project implementation such as AWPs, QPRs and APRs, as well as from the Annual Implementation Review and the Mid-Term Review, and regular meetings of the Project Coordination Group (see Annex 6 for more details).

(ii) Promoting multi-stakeholder supervision: During project preparation, the task team

benefited from consultations with Government, donors, civil society organizations, and citizens. Likewise, the task team would apply this participatory and inclusive approach to supervision, especially given the project complexity and multiple state and non-state institutions involved. Having all key stakeholders actively participate in project oversight will augment the inputs to the Bank supervision team�s monitoring of the effective use of project resources and progress in achieving development objectives. It should be noted that the M&E systems of the MOI and the IAs will, in part, rely on third-party monitoring, external process monitoring and independent evaluation and feedback by competent national research institutes, CSOs and citizens. The proposed Good Governance Forum could be an ideal annual stakeholder meeting for sharing any previous supervision/monitoring results, and obtaining inputs for the next year�s supervision plan.

(iii) Combining HQ-based with country-based supervision: The Bank�s Guidelines to

Staff on Project Supervision advises that the project appraisal team should be responsible for the first two or three years of supervision. Staff continuity in supervision is considered important for project success and preservation of institutional memory. Given the complexity and unique nature of the DFGG project, staff continuity during the first few years of project implementation is especially critical for project success. Accordingly, there would be a minimum of 2-year period of transition from HQ-based task team that had been intimately involved in project

229

design and appraisal to country-based supervision. 2 During this transition period, the HQ-based staff will work with and coach country-based staff to familiarize them with the project details, with the view of handing over most of the responsibility by the third year. Supervision tasks will be distributed between the country office and headquarters to capitalize on the comparative advantage of each.

(iv) Comprehensive approach to supervision: The task team supervising the project will

move beyond the traditional �silo� approach in which fiduciary and safeguard members, in particular, tend to be separate from the technical members of the team. To the extent possible, supervision activities will be carried out jointly by a tightly knit team to minimize disconnect between the different aspects of the project, to provide a coherent package of advice or response to the client on implementation issues, and to reduce multiple missions and requests for meetings with the same counterpart institutions. Such an integrated approach to coordinated supervision would enable high quality and comprehensive assessment of the progress toward achieving the project targets, as well as compliance with grant covenants across an array of project activities.

On the other hand, there will also be a periodic need for more objective supervision by

specialists, which is not driven by the understandable pressures that a normal task team is subject to, but is driven more by issues or themes critical for achieving the development objectives and sound implementation of the project. This �thematic� supervision would be tailored to suit specific project needs as implementation proceeds.

2 Country-based supervision may also involve judicious use of the resources in the Bangkok Governance Hub, once it is established.

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Annex 16: Documents in the Project File CAMBODIA: Demand for Good Governance Project

Project Preparation Documents: 1. ACF: Project Proposal: Support to the Arbitration Council, September 2008. 2. CDC: Communication Strategy for the DFGG Project, Center for Development

Communications (CDC), February 2008. 3. MOI: Financial Management and Disbursement Manual for DFGG Project, September 2007. 4. MOI: Good Governance Framework for DFGG Project and Good Governance Plans for each

Implementing Agency, June 2008. 5. MOI: Project Implementation Manual for the DFGG Project, Draft, June 2008. 6. MOI: Project Proposal: Coordination and Learning Component of the DFGG Project, August

2008. 7. MONASRI: Project Proposal: Support to the Ministry of National Assembly Senate

Relations and Inspection (Law Dissemination and Complaints Handling), May 2008. 8. NCDDS/MOI: Project Proposal: Support to the One Window Service Office and District

Ombudsman, Ministry of Interior, May 2008. 9. RNK: Project Proposal: Support to the Radio National of Kampuchea, May 2008. 10. TAF. Project Proposal: Non-State Actor Component, May 2008. 11. World Bank: Cambodia Demand for Good Governance (DFGG) Project � An Updated

Storyline, May 2008. 12. World Bank: Note on Suggested Participatory Approach to Designing Project Proposals,

March 2007. 13. World Bank: Procurement Capacity Assessment Report, February 2008. References Cited in PAD Main Text: 1. Ackerman, J. (2004). State-Society Synergy for Accountability: Lessons fo r the World Bank,

World Bank Working Paper No. 30, World Bank, Washington, DC.

2. Ackerman, J. (2005). Social Accountability and the Public Sector, Social Development Paper No. 82, World Bank, Washington DC.

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3. Arroyo, D. and Sirker, K. (2005). Stocktaking of Social Accountability Initiatives in the Asia and Pacific Region, CESI Learning Program, World Bank, Washington DC.

4. Bou, S. and Salazar, L. (2005). Cambodia Grassroots Media Assessment for the Social Accountability (Citizens Partnership for Better Governance) Framework, Mission Report, DFID and World Bank, Phnom Penh, Cambodia.

5. Burke, A. and Vanna, N. (2005). Options for Increasing Social Accountability in Cambodia, DFID and World Bank Phnom Penh, Cambodia.

6. CSD (2005). Corruption and Cambodian Households: Survey on Perceptions, Attitudes and Impact of Everyday Forms of Corrupt Practices in Cambodia. Center for Social Development (CSD), Cambodia, March 2005.

7. Hughes, C. and Un, K (2007): Cambodia Governance Analysis, March 2007, Phnom Penh, Cambodia.

8. International Commission on Non-Ionizing Radiation Protection � ICNIRP (1998): ICNIRP Guidelines: Guidelines for limiting exposure to time-varying electric, magnetic, and electromagnetic fields (up to 300 Ghz). Health Phys., 98:494-522, Baltimore, Maryland, April 1998.

9. IRI (2007). Survey on Cambodian Public Opinion, International Republican Institute (IRI), January 2007.

10. Mohan, P.C. (2006). Assessment of Transparency Institutions in Cambodia, internal memo.

11. PACT (2007). Perceiving and Fighting Corruption in Cambodia - A quantitative and qualitative survey in five provinces, Indo-China Research, Phnom Penh, Cambodia.

12. Royal Government of Cambodia (2002). National Poverty Reduction Strategy (2003-2005), by Council for Social Development, 20 December 2002, Phnom Penh.

13. Royal Government of Cambodia (2004). The Rectangular Strategy for Growth, Employment, Equity and Efficiency in Cambodia, 16 July 2004, Phnom Penh, Cambodia.

14. Royal Government of Cambodia (2005a). National Strategic Development Plan (2006-2010), 22 December, 2005, Phnom Penh.

15. Royal Government of Cambodia, (2005b). Strategic Framework for Decentralization and De-concentration Reforms, Phnom Penh.

16. Royal Government of Cambodia (2006).Governance Action Plan II (2005-2008): Accelerating State Reform Strengthening Governance and Improving Public Services Delivery, by Supreme Council for State Reform, Phnom Penh.

17. Transparency International (2006). National Integrity Systems Country Study for Cambodia, by Center for Social Development, Phnom Penh.

232

18. Transparency International (2007). Corruption Perception Index 2007. Available at www.transparency.org.

19. World Bank (2004). World Development Report 2004: Making Services Work for Poor People. World Bank, Washington, DC.

20. World Bank (2005). Cambodia: Country Assistance Strategy of the World Bank Group 2005-2008. World Bank, Phnom Penh.

21. World Bank (2006). Cambodia: Halving poverty by 2015? Poverty Assessment 2006. World Bank, Phnom Penh.

22. World Bank (2007a). Cambodia: Country Assistance Evaluation, Independent Evaluation Group, World Bank, Washington DC.

23. World Bank (2007b). Conditions and Capacities for Social Accountability in Cambodia, by Center for Advanced Studies, World Bank, Phnom Penh, forthcoming.

24. World Bank (2007c). Strengthening Bank Group Engagement on Governance and Anti-Corruption, World Bank, Washington DC.

25. World Bank (2007d). Sharing Growth: Equity and Development in Cambodia, World Bank, Phnom Penh.

26. World Bank (2008). Country Assistance Strategy Progress Report for the Kingdom of Cambodia for the Period FY 05-08. World Bank, Southeast Asia Country Unit.

233

Annex 17: Statement of Loans and Credits CAMBODIA: Demand for Good Governance Project

(As of September 30, 2008)

Original Amount in US$ Millions

Difference between expected and actual

disbursements

Project ID FY Purpose IBRD IDA SF GEF Cancel. Undisb. Orig. Frm. Rev�d P106603 2008 Road Asset Mgmt (ADB/AusAID) 0.00 30.00 0.00 0.00 0.00 29.50 0.00 0.00 P100084 2008 Avian Influenza Emergency Project 0.00 6.00 0.00 0.00 0.00 5.90 0.00 0.00 P084787 2008 Land Allocation for Social and Economic

Development 0.00 11.50 0.00 0.00 0.00 10.8 0.00 0.00

P102284 2008 Second Health Sector Support Program 0.00 30.00 0.00 0.00 0.00 30.30 0.00 0.00 P105329 2007 GMS Power Trade Project 0.00 18.50 0.00 0.00 0.00 20.10 1.50 0.00 P087945 2006 Cambodia - Public Fin. Mgmt. & Accnt. 0.00 14.00 0.00 0.00 0.00 14.60 1.90 0.00 P070668 2005 Cambodia Education Sector Support 0.00 28.00 0.00 0.00 0.00 12.60 4.70 0.00 P089196 2005 Trade Facilitation & Competitiveness 0.00 10.00 0.00 0.00 0.00 7.10 5.30 0.00 P064844 2004 Rural Electrif. & Transmn 0.00 40.00 0.00 0.00 0.00 34.90 29.50 29.60 P071207 2004 PROVL & RURAL INFRA 0.00 20.00 0.00 0.00 2.20 6.90 7.60 2.50 P071591 2004 GEF Rural Electrification & Transmiss 0.00 0.00 0.00 5.75 0.00 5.20 0.00 0.00 P070542 2003 Health Sector Support Project 0.00 27.00 0.00 0.00 0.00 10.50 6.40 0.00 P071146 2003 RURAL INVESTMENT & LOCAL

GOVERNANCE 0.00 58.30 0.00 0.00 0.10 33.80 -6.10 0.10

P073311 2003 PROV & PERI -URB WATER 0.00 19.90 0.00 0.00 1.70 9.10 8.40 0.00 P070875 2002 Land Management and Administration 0.00 24.30 0.00 0.00 0.40 12.10 7.60 -1.30

Total: 0.00 337.50 0.00 5.75 4.40 243.40 66.80 30.90

CAMBODIA STATEMENT OF IFC�s

Held and Disbursed Portfolio In Millions of US Dollars As of September 30, 2008

Committed Disbursed

IFC IFC

FY Approval Company Loan Equity Quasi Partic. Loan Equity Quasi Partic.

2009 CAMGSM 40.00 0.00 0.00 60.00 0.00 0.00 0.00 0.00 2004/2007 SCA Cambodia 25.23 0.00 0.00 0.00 15.23 0.00 0.00 0.00 2000/2004/2006/ SEF ACLEDA Bank 6.82 6.13 0.00 0.00 4.82 6.13 0.00 0.00 2007/2008 2003 SEF Hagar Sova - 0.00 - - - 0.00 - -

Total portfolio: 72.05 0.00 0.00 60.00 20.05 0.00 0.00 0.00

234

Annex 18: Country at a Glance CAMBODIA: Demand for Good Governance Project

EastPOVERTY and SOCIAL Asia & Low-

Cambodia Pacific income2006Population, mid-year (millions) 14.4 1,900 2,403GNI per capita (Atlas method, US$) 490 1,863 650GNI (Atlas method, US$ billions) 7.0 3,539 1,562

Average annual growth, 2000-06

Population (%) 2.0 0.9 1.9Labor force (%) 3.0 1.3 2.3

Most recent estimate ( latest year avai lable, 2000-06)

Poverty (% of population below national poverty line) 35 .. ..Urban population (% of total population) 20 42 30Life expectancy at birth (years) 57 71 59Infant mortality (per 1,000 live births) 68 26 75Child malnutrition (% of children under 5) 36 15 ..Access to an improved water source (% of population) 41 79 75Literacy (% of population age 15+) 74 91 61Gross primary enrollment (% of school-age population) 134 114 102 Male 139 115 108 Female 129 113 96

KEY ECONOMIC RATIOS and LONG-TERM TRENDS

1986 1996 2005 2 0 0 6

GDP (US$ billions) .. 3.5 6.3 7.3Gross capital formation/GDP .. 14.7 20.1 21.5Exports of goods and services/GDP .. 25.4 64.2 68.8Gross domestic savings/GDP .. -3.7 11.4 14.5Gross national savings/GDP .. 4.7 14.4 17.4

Current account balance/GDP .. -5.3 -5.7 -4.6Interest payments/GDP .. 0.1 0.2 ..Total debt/GDP .. 67.1 56.1 ..Total debt service/exports .. 1.1 0.7 ..Present value of debt/GDP .. .. 47.2 ..Present value of debt/exports .. .. 69.6 ..

1986-96 1996-06 2005 2006 2006-10(average annual growth)GDP .. 8.8 13.5 10.8 7.9GDP per capita .. 6.6 11.3 8.7 6.3Exports of goods and services .. 20.7 16.2 19.3 ..

S T R U C T U R E o f t h e E C O N O M Y

Cambodia

Low-income group

Development diamond*

Life expectancy

Access to improved water source

GNIpercapita

Grossprimary

enrollment

Cambodia

Low-income group

Economic rat ios*

Trade

Indebtedness

Domesticsavings

Capital formation

1986 1996 2005 2 0 0 6(% of GDP)Agriculture .. 44.5 30.8 30.1Industry .. 15.0 25.1 26.2 Manufacturing .. 10.1 17.8 18.6Services .. 40.5 44.2 43.7

Household final consumption expenditure .. 98.0 84.5 82.1General gov’t final consumption expenditure .. 5.7 4.1 3.5Imports of goods and services .. 43.8 72.9 75.8

1986-96 1996-06 2005 2 0 0 6(average annual growth)Agriculture .. 3.7 15.7 5.5Industry .. 16.4 12.7 18.3 Manufacturing .. 17.5 9.7 17.4Services .. 9.5 12.4 9.9

Household final consumption expenditure .. 6.9 11.6 6.4General gov’t final consumption expenditure .. 5.0 2.9 -4.9Gross capital formation .. 13.9 30.7 20.8Imports of goods and services .. 16.1 17.3 15.5

Note: 2006 data are preliminary estimates.This table was produced from the Development Economics LDB database.* The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond will be incomplete.

-20

0

20

40

01 02 03 04 05 06

GCF GDP

Growth of capital and GDP (%)

0

10

20

30

40

01 02 03 04 05 06

Exports Imports

Growth of exports and imports (%)

235

Cambodia

P R I C E S a n d G O V E R N M E N T F I N A N C E1986 1996 2005 2006

Domestic prices(% change)Consumer prices .. 10.1 5.7 4.7Implicit GDP deflator .. 3.5 6.1 4.7

Government finance(% of GDP, includes current grants)Current revenue .. 7.7 9.8 10.2Current budget balance .. -1.1 1.6 1.4Overall surplus/deficit .. -7.5 -3.2 -1.5

T R A D E1986 1996 2005 2006

(US$ millions)Total exports (fob) .. 644 2,910 3,693 Forestry .. 32 119 175 Rubber .. 148 20 22 Manufactures .. 80 2,275 2,743Total imports (cif) .. 1,072 3,928 4,749 Food .. 81 35 50 Fuel and energy .. 132 751 821 Capital goods .. .. 1,069 1,275

Export price index (2000=100) .. 38 .. ..Import price index (2000=100) .. .. .. ..Terms of trade (2000=100) .. .. .. ..

0

1,000

2,000

3,000

4,000

5,000

00 01 02 03 04 05 06

Exports Imports

Export and import levels (US$ mill.)

-5

0

5

10

01 02 03 04 05 06

GDP deflator CPI

Inflation (%)

B A L A N C E o f P A Y M E N T S1986 1996 2005 2006

(US$ millions)Exports of goods and services .. 806 4,028 4,989Imports of goods and services .. 1,287 4,575 5,539Resource balance .. -480 -547 -550

Net income .. -86 -254 -290Net current transfers .. 381 440 503

Current account balance .. -185 -361 -337

Financing items (net) .. .. 439 476Changes in net reserves .. .. -78 -139

M e m o :Reserves including gold (US$ millions) .. 164 1,040 1,350Conversion rate (DEC, local/US$) .. 2,624.1 4,097.0 4,107.0

EXTERNAL DEBT and RESOURCE FLOWS1986 1996 2005 2006

(US$ millions)Total debt outstanding and disbursed 31 2,354 3,515 .. IBRD 0 0 0 0 IDA 0 108 462 500

Total debt service 0 9 31 .. IBRD 0 0 0 0 IDA 0 1 6 7

Composition of net resource flows Official grants 5 194 210 .. Official creditors 0 75 160 .. Private creditors 0 -3 0 .. Foreign direct investment (net inflows) 0 294 379 .. Portfolio equity (net inflows) 0 0 0 ..

World Bank program Commitments 0 0 8 0 Disbursements 0 46 36 19 Principal repayments 0 0 2 4 Net flows 0 46 34 15 Interest payments 0 1 4 4 Net transfers 0 45 30 11

Note: This table was produced from the Development Economics LDB database. 9/28/07

-8

-6

-4

-2

000 01 02 03 04 05 06

Current account balance to GDP (%)

G: 279

D: 597

C: 81

B: 462

E: 2,096

A - IBRDB - IDA C - IMF

D - Other multilateralE - BilateralF - PrivateG - Short-term

Composition of 2005 debt (US$ mill .)

K A M P O TK A M P O T

K A M P O N GK A M P O N GS P E US P E U

K O H K O N GK O H K O N G

P U R S ATP U R S AT

BANTEAYBANTEAYMEANCHEYMEANCHEY

S I E M R E A PS I E M R E A P

P R E A H V I H E A RP R E A H V I H E A R

K A M P O N G T H O MK A M P O N G T H O M

KAMPONGKAMPONGCHHNANGCHHNANG

KAMPONGKAMPONGCHAMCHAM

RATANAKIRIRATANAKIRI

M O N D O LM O N D O LK I R IK I R I

S T U N G T R E N GS T U N G T R E N G

TAKEOTAKEO

KANDALKANDAL

B AT TA M B A N GB AT TA M B A N G

SVAYSVAYRIENGRIENGPREYPREY

VENGVENG

S I H A N O U K -S I H A N O U K -V I L L EV I L L E

K R A T I EK R A T I E

Cardamom Mts.

PhnumPhnumAoralAoral

(1,810 m)(1,810 m)

KohniehKohnieh

ChbarChbar

LomphatLomphat

Siem PangSiem Pang

MeloupreyMelouprey

Kompong SralaoKompong Sralao

Cheom KsanCheom Ksan

RoviengRovieng

KralanhKralanh

PailinPailin

Phum KompadouPhum Kompadou

Krong Koh KongKrong Koh Kong

ChambakChambak

Siem ReapSiem Reap

PursatPursat

SisophonSisophon

BattambangBattambang

Phnum TbengPhnum TbengMeancheyMeanchey

Kampong ThomKampong Thom

Kampong SpeuKampong Speu

SvaySvayRiengRieng

KampongKampongChamCham

KratieKratie

Prey VengPrey Veng

TakeoTakeo

SenmonoromSenmonorom

BunBunLongLong

Stung TrengStung Treng

PHNOM PENHPHNOM PENH

O D D A RO D D A RM E A N C H E YM E A N C H E Y

PHNOM PENHPHNOM PENH

Ta KhmauTa Khmau

SamraongSamraong

KampotKampot

PA I L I NPA I L I N

To To BuriBuri

To To Khu KhanKhu Khan

To To Pak CharangPak Charang

To To ChampasakChampasak

To To PhiafaiPhiafai

To To Play CuPlay Cu

To To Duc LapDuc Lap

To To Ba RaBa Ra

To To Tay NinhTay Ninh

To To Ho Chi Minh CityHo Chi Minh City

To To Cao LanhCao Lanh

To To Long XuyenLong Xuyen

To To Rach GiaRach Gia

Kohnieh

Chbar

Lomphat

Siem Pang

Melouprey

Kompong Sralao

Cheom Ksan

Rovieng

Kralanh

Phum Kompadou

Chambak

Siem Reap

Pursat

Sisophon

Battambang

Phnum TbengMeanchey

Kampong Thom

Kampong Speu

Sihanoukville

SvayRieng

KampongCham

Kratie

Prey Veng

Takeo

Senmonorom

BunLong

Stung Treng

Samraong

Krong Koh Kong

Kampot

Kep

Ta Khmau

Pailin

PHNOM PENH

K A M P O T

K E P

K A M P O N GS P E U

K O H K O N G

P U R S AT

BANTEAYMEANCHEY

S I E M R E A P

P R E A H V I H E A R

K A M P O N G T H O M

KAMPONGCHHNANG

KAMPONGCHAM

RATANAKIRI

M O N D O LK I R I

S T U N G T R E N G

TAKEO

KANDAL

B AT TA M B A N G

PA I L I N

SVAYRIENGPREY

VENG

S I H A N O U K -V I L L E

K R A T I E

O D D A RM E A N C H E Y

PHNOM PENH

T H A I L A N D L A O P . D . R .

V I E T N A M

ChhakKampong

Saom

Bassak

Tonle Sap

Ko

ng

Sreng

Peam

Mekong

San

Srepok

Kong

Sen

Chas

Mek

ong

Gul f ofThai land

Tonle

Sap

Poro

ng

To Buri

To Khu Khan

To Pak Charang

To Champasak

To Phiafai

To Play Cu

To Duc Lap

To Ba Ra

To Tay Ninh

To Ho Chi Minh City

To Cao Lanh

To Long Xuyen

To Rach Gia

Cardamom Mts.

PhnumAoral

(1,810 m)

103° E 104° E 105° E 106° E 107° E

103° E 104° E 105° E 106° E 107° E

11° N

12° N

13° N

14° N

11° N

12° N

13° N

14° N

CAMBODIA

0 20 40 60

0 60 Miles4020

80 Kilometers

IBRD 33381R

JUN

E 2006

CAMBODIA

SELECTED CITIES AND TOWNS

PROVINCE CAPITALS

NATIONAL CAPITAL

RIVERS

MAIN ROADS

RAILROADS

PROVINCE BOUNDARIES

INTERNATIONAL BOUNDARIES

This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, o r any endo r s emen t o r a c c e p t a n c e o f s u c h boundaries.