The Royal Government of Cambodia (RGC - hereafter referred as the Government) has established a central Project Development Facility (PDF) under its Public Investment Management System Reform Strategy 2019-25 (PIMSRS) to finance the development and preparation of public investment projects. The objective of the PDF is to act as a dedicated fund that finances project development, preparation and procurement of public investments financed through official development assistance; national budget; and public private partnerships (PPP). The central PDF comprises of three windows for financing namely the Externally Financed Projects Window; the National Budget Financed Projects Window; and the PPP Projects Window.
The establishment of the PPP Projects Window (hereafter referred as PDF for PPPs) is mandated by Article 12 of the Law on Public Private Partnerships. The PDF for PPPs will finance transaction services activities by providing financial support to the Implementing Agencies (IAs) for undertaking quality preparation and procurement of PPP projects and the associated transaction services.
The MEF is responsible for setting the policy and guidelines on the use of the Central PDF and its three windows of financing; their management and oversight; and for approving applications/request for funding. The GDPPP is responsible for the operations and financial management of the PDF for PPPs serving as the focal point in the assessment and evaluation for selection of PPP Projects and funding from the PDF.
What does the PDF support?
The PDF will be used for financing of Transaction Advisory Services (TAS) to assist the IAs in the preparation and implementation of solicited PPP projects. The scope of the services include, but not limited to, the following:
- Preparation of Feasibility Studies. Pre-feasibility may be considered where this is packaged together with the Feasibility Studies and is not a standalone study;
- Due Diligence of Feasibility Studies;
- Demand studies, including willingness to ‘pay’ and ‘use’ surveys;
- Environment and Social assessment studies;
- Project and Financial Structuring;
- Financial modeling, legal, regulatory and tax assessments;
- Procurement for the Selection of the Private Partner;
- PPP Contract negotiations and award;
- Preparation of PPP Contract Management Manual; and
- Incidental transaction support assistance till contract/financial close.
The PDF for PPPs is used for undertaking TAS for PPP projects procured through the solicited route. In case of unsolicited proposals (USP), the development and preparation of the PPP project is financed by the Private Sponsor or Proponent and hence no financing is required from the PDF for PPPs.
The financing from the PDF for PPPs is available only for the projects in the list of Priority PPP Projects, as determined and approved by the MEF after undertaking the selection and prioritization of PPP Projects in accordance with SOP Vol. II: Guidelines for the Identification and Selection of PPP Projects.
How to Apply
The IA will need to submit an application in a prescribed format, which include Project Information and Service Requirements and Terms of Reference of the TA (as prescribed in SOP Volume II and III).