MANILA, PHILIPPINES - The Asian Development Bank (ADB) approved a $50 million Subprogram 1 of the Strengthening Governance for Service Delivery policy-based loan supporting Cambodia's efforts in improving governance and public financial management systems, enabling equitable and resilient service delivery.

The first subprogram of the Strengthening Governance for Improved Service Delivery Program continues ADB's assistance to broaden and deepen the implementation of Cambodia's Public Financial Management Reform Program, which is currently in its fourth phase, to improve performance accountability. The program assisted reforms to improve the efficiency of public institutions responsible for revenue collection and expenditure management, to create fiscal space to enhance the quantity and quality of public services. Improved public investment governance also helps promote private sector development through more robust public-private partnership (PPP) frameworks and more transparent procurement systems.

"This program 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 US$ 2 billion in additional revenues and over US$ 3 billion in efficiency savings by 2028, the benefits will be felt in communities across Cambodia for years to come."

The subprogram 1 is to be followed by a subprogram 2 that builds on the reforms of the first subprogram. The programmatic approach helps the government implement policy reforms in the area of public financial management in a sequenced and coordinated manner aligned with the national reform agenda. Through this approach, the government can fully institutionalize reforms, making sure that they are sustainable and fully integrated into government systems.

ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members--50 from the region.