The Asian Development Bank (ADB) has approved a $50 million Subprogram 1 of the Strengthening Governance for Service Delivery policy-based loan, aimed at supporting Cambodia’s efforts to improve governance and public financial management systems, enabling equitable and resilient public service delivery. The initiative builds on the fourth phase of Cambodia’s Public Financial Management Reform Program, focusing on performance accountability, efficiency in revenue collection, and expenditure management to create fiscal space for enhancing the quality and reach of public services.
The program also strengthens public investment governance, which in turn promotes private sector development through improved public–private partnership frameworks and transparent procurement systems. ADB Country Director for Cambodia, Jyotsana Varma, emphasized that the program is designed to unlock Cambodia’s economic potential by promoting efficiency in public financial management, accelerating growth via resilient public investments, and improving performance management systems, ultimately benefiting communities through better public services. The reforms are projected to generate over US$2 billion in additional revenues and over US$3 billion in efficiency savings by 2028.
Subprogram 1 will be followed by Subprogram 2, which will build on the initial reforms. The programmatic approach allows the Cambodian government to implement policy reforms in a sequenced and coordinated manner aligned with its national reform agenda. This ensures that reforms are institutionalized, sustainable, and fully integrated into government systems for long-term impact.
ADB, founded in 1966 and owned by 69 members, including 50 from the Asia-Pacific region, is a leading multilateral development bank that supports sustainable, inclusive, and resilient growth across the region. The bank works with its members and partners to address complex challenges, leveraging innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard the environment.
