On July 12th, 2022 at the Sofitel Phnom Penh Phokeethra hotel; The Ministry of Economy and Finance hold a dissemination workshop on "Law on Public-Private Partnerships" or "Law on PPPs" chaired by H.E. Dr. Phan Phalla, Secretary of State of the Ministry of Economy and Finance, representative of H.E. Akka Pundit Sopheacha Aun Pornmoniroth, Deputy Prime Minister, Minister of Economy and Finance. Participants from relevant ministries and institutions of the Royal Government of Cambodia, development partners, financial institutions, consulting firms in public investment sector, law firms, insurance companies, national and international companies and other private sectors around 200 people.
H.E. Dr. Phan Phallasaid that the purpose of this workshop was to promote the PPP law, which is another important achievement of the Royal Government to the leadership-civil servants in charge of matters related to public investment projects through the PPP mechanism, which is Project implementers directly in government ministries and agencies and key stakeholders, including development partners and the private sector.
The Secretary of State said that although today's workshop was the first official outreach and focused on national actors, the Ministry of Economy and Finance plans to continue to disseminate the law more widely in other forums and To the sub-national administration in the future as well.
In connection with this purpose, Secretary of State of the Ministry of Economy and Finance has completed the consultation on the preparation of joint operational management procedures for PPP projects, known as "Standard Operating Procedures" or SOPs In connection with this purpose, Secretary of State of the Ministry of Economy and Finance has completed the consultation on the preparation of joint operational management procedures for PPP projects, known as "Standard Operating Procedures" or SOPs recently, it is planned to request the review and decision of the Royal Government on the sub-decree to put into use SOP to support project development, procurement management, state support procedures, investment incentives, implementation, Monitoring and managing the PPP contract, as a whole, this SOP procedure will support the full and effective implementation of the PPP law in Cambodia.
In addition, the Secretary of State also highlighted some important recommendations to the workshop regarding the preparation and implementation of this law, including:
*As a background, This PPP law has been drafted and edited for many years since 2017 and was approved by the Council of Ministers in the plenary session of the Council of Ministers, fully approved by the legislature, this form and law was signed by the King on November 18, 2021. This law aims to enhance the management of PPP mechanisms in the design and implementation of public infrastructure projects and public service projects that are effective, efficient, sustainable, transparent, accountable and just for the benefit of Cambodia's economic and social development.
*The PPP Law is organized into four main: First, the reduction of global grant funding and the gradual loss of Cambodia's high-level concessional loans, this one, and the other, resources from National budget still limited, but the need for public investment to boost the country's development is growing; Second, the Kovid-19 crisis has negatively affected the socio-economic achievements that Cambodia has achieved in the past and hindered Cambodia's progressive development process, and now Cambodia as well as the world are facing problems. New challenges due to the protracted Russian-Ukrainian war as well, Third, efforts to avoid Cambodia falling into the "price trap" that can occur through long-term contracts that allow consumers to pay service fees and state debt. Eventually, if there is no proper and thorough examination and evaluation, And fourth the need to attract the participation of private partners in promoting growth and maintaining economic prosperity on the basis of private sector resources and innovations.
*The PPP Law will establish a legal framework for governing the development and implementation of PPP projects in Cambodia in a clear and consistent manner in accordance with international practice through the division of roles and responsibilities between the relevant institutions in the field of development planning. And implement the project, The Ministry of Economy and Finance and the relevant ministries and institutions of the Royal Government at the stage of the project cycle as stated in this law and the SOP procedure which will be reviewed by the Royal Government and approved for use under the upcoming sub-decree.
*Although the PPP law replaces the law on concessions, the provisions of the new law do not have the effect of reacting to concession agreements or contracts that are similar to the PPP contracts signed before the PPP came into force. No. At the same time, the drafting of the PPP will also be considered on the basis of complementarity with the Cambodian Investment Law on Investment Incentives and with the relevant legal documents in force.
Overall, the Ministry of Economy and Finance expressed its deep gratitude for the participation and welcomed the discussion and exchange of views on the PPP Law in a professional manner and highly appreciated the content of this legal framework. This morning's workshop was conducted smoothly, in an atmosphere of understanding and high responsibility of the participants, as well as adherence to the government's health measures.