Country Assistance Policy for Cambodia

1 Country Assistance Policy for CambodiaAs ofApril, 20121. Significance of Japan sAssistance to CambodiaSincetheend ofthecivil war, Cambodia hasbeenenjoyingpeace,stabilityand a population ofaround14million(estimate2009),thecount ryhas achievedsteadyeconomic growth and poverty , Cambodia sGDP per capitaremainsat USD814 (IMF, 2010)and it isstillone oftheless developed addition, due to the civil warin the past,there is a serious shortage ofhuman resources in almost all sectorswhich areessentialfor nation Cambodia has population(under30 years old)

2 Thatmakesup more than halfof thetotal populationandthat can bethe source of abundant labor forceis one of thesigning of theParisPeaceAgreementin 1991,Japan has beenactively involved inCambodia sreconstruction and developmentincluding thedispatchof itsfirstPeace Keeping Cambodia asuccessful example ofJapan s assistances inthe field ofpeace Government hasa policyof expanding Official DevelopmentAssistance (ODA) to Cambodia andthewhole Mekong Regioncountries,placing animportanceontheregionalpartnershipbetw een Japan and Mekong countriesinorder to assistASEAN integration andto narrowthedevelopment gap amongASEAN member on this Policy , Japanese Government has been providingdevelopment Assistance for hardand soft infrastructure and promoting public andprivate partnership in cooperation andthe"AgreementbetweenJapan and the Kingdom of Cambodia for the Liberalization.

3 Promotion andProtection of Investment" ineffect since2008have assisted Cambodia to developbasic structurefor investment leading to an increasing number of Japaneseinvestors in recent has been the biggest bilateral donor to Cambodia since 1992andCambodia has supported Japan's positions on various issues in the Basic Assistance Policy (Overall goal):Steadyand SustainableEconomicGrowth and Balanced DevelopmentPolicy priorities of Japanese Government towards the development ofCambodia are to assisttheCambodian Government toachieve its developmentgoalsdescribed in the "Rectangular Strategy-Phase 2",topromoteASEAN integration,tostrengthenASEAN connectivity,to narrowthedevelopment gap intheregion and to ensure human security and environmental this Policy , Japan sets three pillars ofproprietyfor its Assistance .

4 "StrengtheningofEconomicBase", "Promotion ofSocial Development" and "Strengthening ofGovernance". ofPriority(Goals)(1)Strengtheningoftheba sis for economic activitiesa)Development of Economic InfrastructureIn order tosustainand to further promote economic development inCambodia and thewholeMekong Region, Japan prioritizesits assistancetothefollowing areas;(i)thedevelopment of road network systems centered on theSouthern Economic Corridorconsidering its geographicallocation asthecenteroftheMekong Region,high development effects andits important roleineconomicactivities,(ii)thedevelopm entoftheareas aroundtheSihanoukville Portconsidering also its important role ineconomic activities,(iii)thedevelopment ofstable electricity supply system,(iv)thedevelopment of ICT infrastructureand(v)

5 The improvement of logistical systemswhich arecriticalfactors forattractingforeign direct investment(FDI).Uponimplementingabove-me ntionedassistances,promotion ofregional integration and private investment will bealsotaken )Strengtheningof thePrivate SectorIn order to promoteinvestmentand trade, Japansupportsthefunctionalenhancement of theCambodian Investment Board of theCouncilfor theDevelopment of Cambodia (CIB/CDC) andthehuman resource developmentforthe industrial sector. Special focusisplacedonthe human resources in thetechnical fields ( , engineers and technicians) and middle-level managementwhoare requiredin theexpandingmanufacturing )

6 Agricultureand Rural DevelopmentRecognizingtheimportanceofpro motingtheagriculturesectorwhich is thecountry's main industryabsorbing a large part oftheworking populationandassistingthelivelihood ofunderprivilegedfarmers,in order to improvetheproductivity and quality of rice as the Cambodia s main agricultural product,Japansupportstherehabilitationan d developmentofirrigation facilities,theimprovementofirrigation skills and rice production skillsinthewesternandsouthern parts of addition, Japan supportstheimprovement anddiversification ofthefarmingindustryin order toimprovethelivelihood ofunderprivilegedfarmers.

7 (2)Promotion ofSocial Developmenta)Development of Water Supply and SewageSystemsIn cooperation withthe Phnom Penh Water Supply Authoritywhich hasobtainedhigh levelmanagementand technical know-howthrough Japan sassistances, Japan supportsthe development ofwater supplysystemsin majorlocal citiesforimprovingtheaccess to safe alsosupportsthesewage treatmentin Phnom Penhin order totackle withthedeteriorating urbanenvironmentcaused bygrowing )Enhancement of Health and Medical CareJapan has been supportingthematernaland child health carein Cambodiaand it is reported thatbothchildand maternalmortalityratehas beenimprovedinrecent , as both mortality rates remains relativelyhighcomparedwiththe figuresofneighboringcountries,Japanconti nuestosupportthe healthsectorfocusingonthe maternaland child health caretaking into accountaviewpoint ofstrengtheninghealth care )

8 Improvement ofEducationQualityIn order to developtheoretical and critical thinkingof students as wellastonurturethehuman resources who sustainthenationaldevelopmentwith longterm viewpoint,Japan supportsthe education qualityimprovementplacinganimportance on the qualityimprovementoftheelementary and lowersecondaryteachers trainingthroughscienceand mathematicseducationin which Japanhas extensive knowledge and )DeminingofAnti-personnelMinesJapan assistsCambodia s effortsto achievethetargetsstated in the National Mine Action Strategy 2010-2019 so that Cambodia could observe thedeminingdeadlineof2019obligedunder the Ottawa make furtherefforts to secure budgetforoperational cost of demining activities required for achievingthetargets.

9 (3)StrengtheningofGovernanceIn order to facilitatethedissemination and appropriate use of the Civil CodeandtheCivil Procedure CodeofwhichJapan assistedthedrafting,Japan supportsthe development ofrelated laws and regulationsandthestrengtheningofcapacity ofpersonnel engaging injudicialactivities. Furthermore, Japansupports publicfinancialmanagementandthepolicy making, systemimprovementand humanresource development inthefields of national tax and customsin order toimprovetransparency ofpublic finance,strengthencapacity of tax collection andpromotemeasures forregional to be taken intoconsideration1:(1) This Country Assistance Policy will be reviewed in accordance with thenew National StrategicDevelopment Plan (NSDP) which is deemed to berevised after the general election in 2013.

10 (2) Japan takes account ofthecoordination and the division ofroles withother bilateral donors, international organizations and NGOs.(3)Basedonthe Action Plan for"A Decadetowardthe Green Mekong"Initiative,Japanconsiderstheneces sityofachieving both environmentalprotection and economic growth,sustainable developmentand : Rolling Plan1 Country Assistance Evaluation 2006 , Available at: of April 2012 Basic Objective Overall goals Priority Areas 1 Goals FY2011FY2012FY2013FY2014FY2015FY2016 Transport Policy AdvisorEXPT ransport Policy Advisor(successor)EXPThe Strengthening of Construction Quality for Study on the Improvement of Existing BridgesDSThe Project for the Improvement of National Road Phase 1-3 Project for the Improvement of National Road Phase 4)