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ក្រសួងសេដ្ឋកិច្ច និងហិរញ្ញវត្ថុ

អគ្គនាយកដ្ឋានភាពជាដៃគូរវាងរដ្ឋ និងឯកជន

Investor’s Corner

Frequently Asked Questions (FAQ)

1. Does Cambodia have a specific PPP Law?

Yes, the Law on Public-Private Partnerships (PPP) was promulgated on November 18, 2021; in replacement of the Concession Law (2007).

In addition to the Law on PPP, there are number of Standard Operating Procedures (SOPs) for PPP projects containing policies, guidelines and procurements for the development of and implementation of all PPP projects undertaken in Cambodia. 

2. Who is responsible for overseeing PPP Projects in the country?

The Ministry of Economy and Finance (MEF) acts as a One-Stop Service of the Government of the Kingdom of Cambodia in directing and managing PPP mechanisms in Cambodia, with the General Department of Public-Private Partnerships acting as the secretariat.

3. What are the eligible sectors for PPP Projects?

Eligible sectors are stipulated in Article 8 of the Law on PPP and are generally related to the construction and/or services.

4. What is the PPP Project Cycle for solicited projects?

As stipulated in the Law on PPP, there are 9 phases in the project cycle as follows:

Phase 1: Project Identification

Phase 2: Project Selection

Phase 3: Project Preparation

Phase 4: Project Approval

Phase 5: Procurement

Phase 6: PPP Contract Negotiation

Phase 7: Approval of the Final Draft of the PPP Contract

Phase 8: Signing of the PPP Contract

Phase 9: Implementation and Management of PPP Contract

5. How is the private partner selected in the delivery of PPP Projects?

The Law on PPP stipulate that the selection of private partner may be carried out for solicited and unsolicited projects. In the case of solicited projects, it maybe be implemented through a competitive bidding methodology or through a direct negotiation/selection methodology.

6. What is Project Development Facility (PDF)?

The Project Development Facility (PDF) for PPP Projects is a revolving fund established by the Government of the Kingdom of Cambodia to finance the preparation of pre-investment studies, project documentations, and assistance in the bidding process of PPP Projects until financial close of the PPP Contract.

For more information: https://ppp.mef.gov.kh/project-development-facility

7. What is an Indefinite Delivery Contracts Panel (IDC Panel)?

The IDC Panel is a panel of selected consulting firms retained under Indefinite Delivery Contracts (IDC) to provide financial, technical, legal, and expert necessary to develop well-structured bankable PPP Projects.

The current IDC Panel consist of 11 consulting firms.

For more infromation: https://ppp.mef.gov.kh/financial-support-mechanisms/panel-of-consulting-firms-idc-panel

7. Do PPP Projects take lengthy periods of time to deliver as compared to other forms of public procurement?

There is a widespread myth that PPP projects take inordinate amount of time to execute as contrasted to other forms of procurement. This is incorrect. If one were to consider the full project development cycle for instance under traditional procurement right from project planning, budgeting, financing search, feasibility studies, detailed designs, resource allocation and procurement all the way to a project execution, PPPs will fair relatively better.

This notwithstanding, PPPs require comprehensive feasibility analysis prior to execution to confirm viability, affordability, value for money among other parameters over the full project life. As such, the PPP unit emphatically advices public entities to plan their project delivery timelines accordingly and to avoid the last-minute rush.