Cambodia Development Cooperation Forum (CDCF)
Phnom Penh, Cambodia, 4-5th December 2008
Deputy Prime Minister KEAT CHHON, M.P.
Minister of Economy and Finance
First Vice-Chairman, Council for the Development of Cambodia
Royal Government of Cambodia
Multi-Year Indicative Financing Framework (MYIFF)
- Colleagues from the
- Honorable Ambassadors, Distinguished Representatives of Development
- Ladies and Gentlemen
Please allow me to bring the meeting to order. Our final
session before lunch concerns the Multi-Year Indicative Financing Framework.
The objective of the Multi-Year Indicative Financing Framework
is to reinforce the budget exercise by including medium-term indications of
NSDP financing provided by our development partners in our planning and
budgeting exercise. The transition away from pledging at the first CDCF
meeting was warmly welcomed and I hope we can consolidate that progress in the
context of the second platform of the Public Financial Management Reform
Programme, which was officially launched here in the Palais du Governement on
It is recognised that resource estimates are indicative. We
recognise that outer year projections are subject to the approval of your
Boards and Parliaments. But we also note the commitment made in the Accra
Agenda for Action to provide projections for the next budget year as well as
estimates for the medium-term. The language used there is unequivocal, and
please allow me to quote:
"Beginning now, donors will provide full and timely information on annual
commitments...[and]...beginning now, donors will provide information on
their three-to-five year forward expenditure"
In the case of Cambodia, "beginning now" has already started
and many of you have worked hard to provide these figures to CDC in recent
months. I hope that this morning we can take further steps towards this
important objective of strengthening our planning and budgeting exercise.
Please therefore allow me to open the floor now so that our
development partners can have the opportunity to deliver statements related to
the resourcing of the NSDP. I will then share with you the consolidated
figures that we have received from development partners.
[Open the discussion so that development
partners can make any announcements. If there are any changes, these can be
included on the table to be shown on the screen]
I thank you for these words and for these commitments. While
acknowledging the challenges we face in implementing the Rectangular Strategy
and associated reforms, it is most encouraging to learn that our development
partners continue to have confidence in the policy direction we have set and
in our ability to confront the challenges that we face.
Of course, we fully recognise the scale of these challenges.
We therefore greatly appreciate not only the resources that have been made
available by the international community but, of equal importance, the spirit
of partnership that will characterize our joint efforts to address them. As
Samdech Prime Minister noted in his address to us on 04 December 2008, we must
not be distracted by the amounts allocated but, rather, be sure to use these
Please allow me to turn now to the consolidated set of
financial commitments that have been provided to us in advance of this
[If any donor announced a change in their
funding commitments it will be necessary to change the totals to incorporate
these recent changes]
In total, for the year 2009, a total resource allocation of
951.52 million Dollars has been indicated by our development partners.
[Slide of MYIFF data to be shown on the main
282 million Dollars will be provided by international
organisations, including the United Nations, ADB, the World Bank;
214 million Dollars will be provided by the European
Commission and the combined countries of the European Union; and
414 million Dollars will be provided by other bilateral
development partners, including 112 million from Japan and 257 million Dollars
Some of our development partners have been unable to respond
to our request to provide figures on both on-going projects as well as new
commitments for our Multi-Year Indicative Financing Framework. We can
appreciate the constraints that they face but request that they work towards
fulfilling their commitments made in the Accra Agenda for Action and, more
important, to strengthening the links between aid management and budgeting,
which this meeting has emphasised on several occasions.
However, all of these partners have been very supportive of
CDC's routine efforts to gather indicative data on on-going project financing
for 2009 and 2010. We are therefore able to present a framework that includes
the funding for on-going projects that has previously been provided by other
development partners. This increases the estimated resource availability in
2009 to approximately 1 billion US Dollars.
Looking beyond this year, the utility of a medium-term
exercise in strengthening our planning exercise becomes clear. Indications for
2010 and 2011 are of course only an estimate, with much new funding still to
be confirmed but we can see that many partners are able to provide us with
some indication of their support to priority programmes.
On behalf of the Royal Government, please allow me to
acknowledge this commitment and support.
Based on estimates of funding requirements in the NSDP and the
Public Investment Programme, and taking account of financing that Government
will make available from its own resources, the amounts that we have recorded
through this medium-term planning exercise indicate that the NSDP will be
fully resourced until at least the end of 2010. This funding indication also
indicates that, combined with domestic revenues, a response to the global
challenges that we have already discussed in our meeting is a realistic
Unless there are any further speakers who wish to contribute
to this dialogue please allow me to conclude this session with two short
First, to acknowledge once again the commitment to our
partnership that has been demonstrated by our development partners. The role
of the financial and technical resources provided by our development partners
is crucial to the realization of our goals and I thank them for this
indication of support.
Second, as we discussed in this Palais du Governement on
Wednesday 03 December 2008 during the launch of PFM reform platform 2, as well
as during our discussions over these last two days, please allow me to
emphasise that this discussion on medium-term financing of the NSDP is part of
a broader package of reforms related to public financial management. The Royal
Government is strongly committed to these reforms.
Excellencies, Ladies and Gentlemen, I thank you most sincerely
for contributing to the success of this Session. Please enjoy your lunch and I
look forward to seeing you all again at this afternoon's Closing Session.