The Asian Development Bank (ADB) has approved a $50 million policy-based loan “Subprogram 1 of the Strengthening Governance for Service Delivery Program” to enhance Cambodia’s governance and public financial management systems. The initiative aims to foster equitable and resilient public service delivery.
According to an August 29 press release, the first subprogramme builds on ADB’s ongoing support for Cambodia’s Public Financial Management Reform Program, now in its fourth phase, with a focus on improving performance accountability.
It targets reforms that aim to streamline revenue collection and expenditure management, creating fiscal space to elevate the quality and reach of public services. Strengthened public investment governance is expected to spur private sector growth through improved public-private partnership frameworks and transparent procurement systems.
“This programme is a catalyst for transformative change, designed to unlock Cambodia’s economic potential through three channels. These include promoting efficiency in revenue and expenditure management systems and institutions, accelerating growth via resilient public investments and improving systems for performance management, ultimately improving lives through better public services,” said ADB country director for Cambodia Jyotsana Varma.
“With reforms expected to generate an estimated over $2 billion in additional revenues and over $3 billion in efficiency savings by 2028, the benefits will be felt in communities across Cambodia for years to come,” she added.
The programme sets the stage for the subsequent Subprogram 2, which will further advance these reforms. This phased approach ensures that policy changes align with Cambodia’s national reform agenda, allowing the government to embed sustainable reforms into its systems, according to an ADB release.
