Phnom Penh (FN), Sep. 26 – The Asian Development Bank (ADB) and Ministry of Economy and Finance signed loan agreements for two programs totaling $140M to boost the caliber of Cambodia’s labor force through technical and vocational education and training (TVET), and to enhance public service delivery by local administrations through public finance and decentralization reforms.
Cambodia’s deputy prime minister and minister for economy and finance Aun Pornmoniroth and ADB country director for Cambodia Jyotsana Varma signed the agreements at an official ceremony in Phnom Penh.
“ADB is pleased to partner with Cambodia in advancing industry-led skills development that readies the country’s labor force, especially women, for the challenges and opportunities of the Fourth Industrial Revolution, and in aligning local government planning with national and provincial budgets to achieve more effective and equitable public service delivery," Jyotsana Varma said. “The two programs these loans support will drive Cambodia’s efforts to advance growth, employment, equity, efficiency, and sustainability nationwide.”
Under the skills for the future economy sector development program, ADB will lend Cambodia $100M ($20M policy-based loan and $80M investment project) to help transform the country into a technology-driven, knowledge-based industrial economy. This support has enabled the government to introduce key policy reforms that are critical to overcoming skills development barriers that hinder competitiveness. It will also enhance the country’s skills development ecosystem, promote industry-led inclusive training for upskilling and reskilling workers in priority areas, and expand financing from the private sector through a cost-sharing, demand-based training model under a skills development fund that the government has successfully piloted.
The second decentralized public service and financial management sector development program will see ADB lend Cambodia $40M, as budget financing, to promote decentralization reforms in the country. The loan will help strengthen the role and capacity of local administrations to effectively deliver public services with a focus on improving coordination for responsive and accountable service delivery. Measures undertaken under the program will also boost women’s participation in local decision-making. The government has completed reforms under the program to strengthen planning and budgeting, revenue and expenditure management, and the capacity of staff at the local administration level integral to ensuring service delivery. These reforms are also aligned to climate change objectives, given that subnational administrations are often the frontline service providers for effective disaster response at the local level.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
=FRESH NEWS
