KINGDOM OF CAMBODIA

Nation - Religion - King

The Royal Government

36/ANK/BK

ANUKRET

on

the Management of Public Investment Program

- Having seen the Constitution of the Kingdom of Cambodia;

- Having seen Reach Kret No. NS/RKT/1198/72 of November 30, 1998 on the Appointment of the Royal Government of Cambodia;

- Having seen Reach Kram No. 02/NS/94, dated July 20, 1994, promulgating the Law on the Organization and Functioning of the Council of Ministers;

- Having seen Reach Kram No. NS/RKM/0196/11 of January 24, 1996, promulgating the Law on the Establishment of Ministry of Planning;

- Having seen Anukret No. 55/ANK/BK of September 23, 1997 on the Organization and Functioning of the Ministry of Planning;

- Having seen Anukret No. 17/ANK/BK of March 11, 1998 on the creation of National System for Management of Public Investment;

DECIDES

Chapter 1

General Provisions

Article 1:

This Anukret determines the organization, implementation, monitoring, and evaluation of public investment program of the Royal Government of Cambodia.

Chapter 2

Procedure for Management of Public Investment Program

Article 2:

The public investment program is a three-year investment program with annual modification.

Article 3:

The public investment project for ministerial/institution sectors shall be developed in accordance with the provisions of annual inter-institutional circular between the Ministry of Planning and the Ministry of Economy and Finance regarding the developing of public investment project with the consultation of the Council for the Development of Cambodia.

Article 4:

The specified criteria and priority classification of each project shall be transparently used for the monitoring, evaluation, prioritization of all projects and preparation of draft of public investment program.

Article 5:

The preparation of public investment program shall be based on the 5-year social-economic development plan, the Royal Government policies, main indicators of macro-economy, adjustment of the Royal Government's development objectives with views of donor parties and ability to absorb by Cambodian party.

Article 6:

The draft of public investment program shall be submitted to the Council of Ministers for review and adopt before adoption of draft of annual financial law.

Chapter 3

Competence in Developing and

Implementing of Public Investment Program

Article 7:

The Ministry of Planning and the Ministry of Economy and Finance shall issue inter-institutional circular instructing the ministries/institutions to prepare public investment program for sector under its supervision under specified date.

Article 8:

The ministries/institutions shall prepare public investment program in its sectors in compliance with the inter-institution circular as stated in Article 7 and send to the Ministry of Planning and such program shall be signed by the interested Minister or director.

Article 9:

The ministries/institutions shall use its effort to effectively implement the public investment program adopted by the Council of Ministers. If there is a change or additional project an approval visa shall be obtained from the Ministry of Planning.

Article 10:

The ministries/institutions shall apply bidding procedure for all of its public investment programs by inviting the representative of the interested ministry/institution to participate in the bidding.

Article 11:

The Ministry of Economy and Finance shall provide annual budget package in Chapter 50, evaluation of macro-economic situation and public investment program for the Ministry of Planning to review, evaluate, and prioritize projects and provide subsidies for public investment program.

Article 12:

The Ministry of Economy and Finance shall strictly follow the principle which states "the State budget shall be advanced for investment and counterpart capital for projects and programs which have officially been organized under conditions and procedures of the public investment program and included in the public investment programs by the Ministry of Planning".

Article 13:

The Ministry of Planning shall prepare criteria to be used for prioritization of public investment programs, gap of points, and coefficient to be given in each criteria, total average points of each project, priority classification based on total average points of each project.

Article 14:

The Ministry of Planning shall select public investment project as sated in Article 8, information stated in Article 11 and the process of prioritization public investment programs stated in Article 13 to review, evaluate, classify priority of all projects to compile a draft of public investment program and prepare a brief book of on-going projects, funding contracted project, and high priority of the public investment of such fiscal year.

Article 15:

The Ministry of Planning shall send a draft of public investment project to all ministries/ institutions and lead the inter-ministerial meeting for modification of such draft and then send to the Ministry of Economy and Finance for budgetization and include into the draft annual financial law and send to the Council of Ministers for review and approval.

Article 16:

The Ministry of Planning shall review and grant visa approval for new public investment program or ministry's or institution's public investment program to be modified, and shall participate all bidding for public investment project implementation of such ministries/ institutions.

Article 17:

The Council for the Development of Cambodia shall use the public investment program adopted by the Council of Ministers to appeal, lobby for aid/assistance to support the unexecuted public investment program and report the results of aid lobbying to the Ministry of Economy and Finance and the Ministry of Planning.

CHAPTER 4

The Monitoring and Evaluation of Results of

Public Investment Program Implementation

Article 18:

All ministries/institutions shall form its monitoring, control, and evaluation working group to monitor, control, and evaluate the results and efficiency of public investment program implementation under their supervisions.

Article 19:

All ministries/institutions who supervise a public investment program shall, on a regular basis (every three months), report the results and situation of its public investment program implementation at the end of March, end of June, end of September, end of December to the Ministry of Economy and Finance and the Ministry of Planning and the Council for the Development of Cambodia.

Article 20:

All ministries/institutions who supervise a public investment program shall accept proposal and facilitate the competent ministry/institution to monitor, control and evaluate the results of their public investment program implementation.

Article 21:

The Ministry of Economy and Finance shall audit the use of capital for public investment program implementation by the ministry/institution under law on financial management.

Article 22:

The Council for the Development of Cambodia shall monitor, evaluate, and cause affecting the speed of public investment program implementation of the ministry/ institution covered by external capital assistance.

Article 23:

The Ministry of Planning shall monitor, evaluate the impacts, and results of public investment program implementation effecting socio-economic development and improvement, promotion of living standard of the people in the sectors under ministerial/institution supervisions.

Article 24:

If a irregularity was found in any public investment program implementation, the Ministry of Planning, the Ministry of Economy and Finance, and the Council for the Development of Cambodia shall collaborate with the ministry/institution supervising such public investment program to immediately discuss for solution.

CHAPTER 5

Schedule for Preparation of Public Investment Program

Article 25:

In June, the Ministry of Planning and the Ministry of Economy shall issue the inter-ministerial circular to instruct the ministry/institution to prepare public investment program in the sector under its supervision based on the evaluation of last public investment program implementation's result.

Article 26:

In July, the ministry/institution shall send all public investment programs to the Ministry of Planning. The Ministry of Economy shall send a budget package Chapter 50 and evaluation of macro-economy to the Ministry of Planning.

Article 27:

In August and September, the Ministry of Planning shall review, evaluate, classify the priority of public investment program prepared by ministry/institution to modify a draft public investment program and then send to the Ministry of Economy and Finance for budgetization and include into the draft annual financial law and send to the Council of Ministers for review and approval.

Article 28:

In October, the Council of Ministers shall review and approve the draft public investment program.

Article 29:

Anukret No. 17ANK/Bk of March 11, 1998, Decision No. 31/SSR of September 4, 1997, inter-institution circular No. 1982/99/IC of August 23, 1999 and any provisions that are contrary to this Anukret shall be repealed.

Article 30:

The Minister in charge of the Council of Ministers, the Minister of Economy and Finance, President of the Council for the Development of Cambodia, all Ministers and Secretaries of State, and director shall effectively implement this Anukret from the date of signature herein.

Phnom Penh, June 14, 2000

Prime Minister: Hun Sen