World Bank Approves $36.25 million Grant for Commune/Sangkat Development and Improved Local Governance

Phnom Penh, July 27. Today, the World Bank’s Board of Executive Directors reaffirmed  its support for Cambodia’s decentralization to the communes/sangkats and  related  local  governance  reforms, by approving a $36.25 million grant in additional  financing  for  the  Rural  Investment  and Local Governance Project (RILGP), as a supplement to the original RILGP which provided $22 million during 2003 – 2007, said the World Bank Cambodia Office release.

Investment  and Local Governance Project (RILGP), as a supplement to the original RILGP which provided $22 million during 2003 – 2007, it said.

 The  additional  financing  aims  to expand  the project support from the current 15 to 23 provinces, provide continuing financing for an additional three years   from   2007 – 2009  to  the intergovernmental  fiscal  transfer,  the Commune/Sangkat  Fund,  and  facilitate an accelerated increase in the amount of the overall intergovernmental fiscal transfer and related commune allocations. , it added.

” While RILGP and RILGP-Additional  Financing  fund specific investments at the commune level, the institutional  arrangements, procedures and funds flow are integrated as much as possible  into  the government’s own structures and systems.  This has helped to build  capacity  directly  within government institutions, strengthen government systems,  and  thus  create  a strong basis for sustainability and scaling-up of development impacts,” said Mr.  Ian  Porter,  World  Bank  Country Director.

Ms.   Nisha   Agrawal,   Country   Manager  for  Cambodia  said  that  the RILGP-Additional  Financing  is  also  aiding  in harmonization and alignment of development  partner  support. “The  Royal Government  will  use  part  of the additional  grant  to  support  development  of  a National Decentralization and Deconcentration Program, which will elaborate the implementation details for the National  Strategic Framework for Decentlization and Deconcentration Reforms and will  help  to  provide  a  better  foundation   for coordinated donor support in future,”  she said.

For more information on the World Bank and its work in Cambodia, please visit: http://www.worldbank.org/kh

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