LICUS IMPLEMENTATION TRUST FUND APPLICATION FORM ACTIVITY PROPOSAL FORM (BY IMPLEMENTING AGENCY)

Transcription

1 LICUS IMPLEMENTATION TRUST FUND APPLICATION FORM ACTIVITY PROPOSAL FORM (BY IMPLEMENTING AGENCY) Key Information Title of the Proposed Activity: Implementing Agency: Sponsoring Department: Task Manager: Amount Requested from LICUS TF for the Proposed Activity (by FY, if applicable): Donor Commitments in support of the proposed Activity (by FY, if applicable): Program to Enhance Capacity in Social Accountability (PECSA) in Cambodia World Bank EASSO Bhuvan Bhatnagar US$ million (FY07: $0.25M; FY08: $0.945M FY09: $0.8M) US$. Million Main Features of Proposal 1. Purpose of grant: (a) brief description of objectives of program/activity and intended beneficiaries: Summary: The grant would finance a range of initiatives that engage citizens in strengthening accountability and reforming governance in Cambodia. In virtually all countries where governance deficiencies have been corrected, the impetus has come not just from reformers in government, but also from civil society organizations (CSOs), independent journalists, parliamentarians and citizens themselves. An array of tools and activities has evolved to maximize the effectiveness of these contributions collectively called Social Accountability (SA) or the Demand-side of Good Governance. These tools have been well-honed in countries where they are widely practiced to become very powerful instruments. In Cambodia, however, there is extremely little experience with these tools or even awareness of them despite the facts that (a) governance reform is the central development challenge, and (b) there are reasonably strong preconditions for such citizen engagement, including democracy, freedom of the press and of association, and many NGOs. The proposed program is designed to redress this gap by providing a menu of capacity-building and support initiatives to help non-state actors learn about and pilot what has worked well elsewhere, to adapt tools to the local context, and to build up a community of SA practitioners that share experience, provide mutual support and learn by evaluating unfolding experience. Context: Cambodia s development stands at a crossroads. It has emerged from several decades of conflict and chaos and is now consolidating a framework of law & order and democracy; it is also largely enjoying peace save for local conflicts over resources. Its economy is growing strongly and the recent discovery of sizeable oil, gas and mineral deposits offers major new potential. On the other hand there are very serious concerns about corruption (Transparency International lists Cambodia as 151 out of 163 countries in its Corruption Perception Index), lack of transparency, inefficiency of public services and a range of other governance problems. These have been the central topics of government-donor dialogue and the Royal Government of Cambodia (RGC) has responded by declaring that fostering good governance is now its top

2 development priority. Last year s Consultative Group Meeting made clear that aid to Cambodia will increase as a result of this commitment and that many donors, including the Bank, are giving top priority to governance reform in their programs. The problems of governance are deep-rooted, however, and although there are many sincere reformers at all levels in government, there are many others who benefit greatly from the current order and will resist change. Promoting reform through government initiatives alone is therefore likely to achieve little. There must be complementary efforts on behalf of parliamentarians, journalists, business-people, civil society and others to promote reforms and make them work, and to advocate for and identify further reforms needed. Hence reformers in RGC are appealing to citizens to help create a momentum for governance reform. Hence, too, the Bank has stressed Social Accountability and the citizens partnerships for good governance in the current CAS and is currently preparing a flagship Demand for Good Governance (DFGG) project that aims to support and encourage these institutions and reformers working on strengthening the demand for good governance (the project concept note and an updated storyline on the DFGG project are attached). Target: While practice elsewhere indicates that such SA programs can be very powerful, there is very little experience with the techniques entailed in Cambodia. There is, however, widespread interest in governance reform throughout many sectors of Cambodian society. PECSA will identify and work with them. The primary audience will be NGOs and other types of CSOs, but programs will also be offered to journalists, parliamentarians and trade union leaders. Government officials will also be accommodated, when appropriate, so that RGC becomes more familiar with government-cso partnerships for governance reform. Urgency: The proposed program is particularly timely because the Bank and the RGC are currently designing the DFGG project. This identifies a series of governance reform initiatives relating to five specific state institutions that depend for their success on the active involvement of citizens and/or non-state actors. While these reforms would be very popular, and parallel reforms have been achieved in other countries with the help of civil society, in Cambodia there is little experience in the approaches that can galvanize such citizen contributions. PECSA would pave the way for DFGG by enabling a wide base of potential governance reformers to become familiar with the techniques of SA such that when DFGG commences they will be able to contribute immediately to these programs and take advantage of the opportunities offered. The program is timely and urgent for three other reasons: The RGC is finalizing an anti-corruption law and is developing other governance reforms (such as a freedom of information policy) that provide citizens with important new opportunities to exact accountability from the state. PECSA will heighten citizen awareness about, and facilitate use of, these opportunities; All major OECD donors to Cambodia are prioritizing governance reform; although they have collectively indicated significant increases in aid, this is likely to dwindle rapidly unless progress in reform is demonstrated. The government therefore has a strong self-interest in opening the way to a richer civil society engagement in governance reform. Large volumes of oil and gas have been discovered; their extraction will lead to an immense increase in revenues within the next 5 years. While the RGC leadership has informally

3 indicated its preparedness to subscribe to Extractive Industry Transparency Initiative principles, such a move would only be effective if there is citizen engagement to make the provisions meaningful. Content: PECSA would provide training and support for both specific tools that have been the mainstay of social accountability programs in other countries, and more general training in broader skills that CSOs need in order to be effective in their governance support and advocacy roles. The content of both categories is summarized in this table: Specific Social Accountability tools Participatory budget planning Budget analysis and advocacy (local or national) Public expenditure tracking Procurement monitoring and Social Audits Citizens report cards on services Community score cards Corruption perception/experience monitoring Freedom of Information campaigns Citizen Charters Ombudsman offices E-procurement and E-governance tools Extractive Industry Transparency Initiative Generic skills needed for SA Participatory research Investigations and analysis Accessing official information Media relations Communications campaigns Parliamentary lobbying Engaging with government Civic education about governance Understanding budget processes Stakeholder support: The team has discussed the proposed program with several officials from ministries and has received an enthusiastic go-ahead from several senior political actors committed to trying new approaches towards governance reform. These include the ranking Deputy Prime Minister H.E. Sar Kheng, whose written endorsement for the proposal is attached. He emphasized that the program would strengthen those development partners who seek to help the Royal Government of Cambodia address its governance challenges. Government has also asked that the Bank be the executing agency for the program directly. This is in keeping with RGC s Rectangular Strategy (2004) which places good governance at the core of the country s development agenda, and which recognizes the important contributions that civil society, the private sector and development partners can make in this regard. The team has also had informal consultations with donors and civil society in Cambodia which has revealed strong support for the proposal, and a keen thirst on the part of CSOs to learn about and draw on global best practices in SA. CSO leaders recognize that taking up SA activities will entail a significant strategic shift from them, but many of them are eager to make this shift if they can be helped to do so. They see PECSA as precisely the help they need. Rationale for LICUS funding: Trust Fund resources, rather than IDA funds under the DFGG project, are needed for the capacity building activities described here for these reasons: Flexibility - The RGC intends to use $4M (of the total $12M IDA grant for DFGG) to support activities of CSOs that directly contribute to the work of the five state institutions to be funded by the project. This is because the RGC wants to focus the use of IDA funds selectively on tightly linking the work of state and non-state institutions supported by the DFGG. While it clearly values state/non-state partnerships for governance reform, however,

4 RGC is looking for partners who can make immediate contributions, and hence is not yet prepared to use IDA funds to build capacities of CSOs etc who might in time contribute well to governance reform but who have first to learn the relevant skills. The LICUS funding would not be so constrained and would support broad-based SA capacity building for CSOs and others as an end in itself, going beyond the limited DFGG project context. Timing - DFGG resources are not likely to flow for at least 18 months, at which point a set of specific governance challenges will be agreed, all of which will require citizen involvement. The current dearth of SA practice in Cambodia would mean a slow start to this involvement, due to lack of familiarity with the terrain and insufficient capacity. PECSA would enable many CSOs (especially in the poorer and remoter provinces and those working with disadvantaged groups) to contribute effectively as soon as the DFGG project is launched, by supporting a capacity building program for CSOs before the DFGG starts implementation on the ground. In other words, for the DFGG to be fully effective in 18 months one needs a critical capacity building program beforehand to prepare the ground, which will be funded by the LICUS grant. Appropriateness CSOs who have expressed an interest in PECSA services are, rightly, concerned to preserve their independence. While they are more than willing to engage in partnership approaches of governance reform, they would be wary about any appearance of being simply RGC consultants in this work. Arms-length capacity-building services would reinforce their independence and strengthen their ability to develop partnerships on a foundation of strong technical knowledge. It would also reduce the risks of others in civil society criticizing social accountability initiatives as government cooptation. Partnership Building - PECSA would initiate a number of institutional arrangements that could, in time, usefully serve DFGG needs as well. In particular, the proposed Oversight Committee could be extended into the advisory group for the DFGG and could advise the proposed Development Marketplace being considered in the project. The Coordinating Organization might also evolve into the non-state entity for wholesaling the CSO-related activities of DFGG. Donor Harmonization - PECSA would also contribute to donor harmonization in that the capacities built will be highly prized by other donors who are developing governance-related programs (most of which envisage SA elements). It will enable the Bank to work with leading donors to create a robust infrastructure for social accountability, and to avoid this being atomized across an array of different donor projects. (b) brief description of project components, methodology and timeframe: For each focus being considered by DFGG (see attached), there is both a clear state institution that has responsibility and considerable interest within civil society; all are clear why it is important for citizens and CSOs to engage in the reform processes but there is little experience with the how. PECSA is designed to address this gap, thereby preparing the ground and enhancing the effectiveness of DFGG in addressing governance challenges in particular: strengthening local government reform within decentralization; enhancing public access to information; enhancing the effectiveness of parliamentary oversight; enhancing the contribution of the media to good governance; and making the Arbitration Council more effective. PECSA will also enhance the capacity and confidence of civil society, parliamentarians, journalists and others to contribute to governance reform programs supported by other donors and by the RGC.

5 A central, but small, PECSA Coordination Unit (PCU) is the essential hub of the program, serving a two-way function. It would be responsible for the wiring through which the program benefits flow connecting users and providers, linking practitioners with common interests, developing granting mechanisms etc. And it is also responsible for making sure that programs are carefully monitored, experience is gathered and that lessons learned are fed back both into strengthening PECSA but also into the design of the DFGG project. Hence the Unit is part of the Bank s learning process as well as a provider or services to clients. Having said this, the intention is not to create an institution within the Bank that lasts beyond the early DFGG implementation stage. Hence to ensure the dual functions described are effective and that PECSA s benefits are sustainable, the PCU will be essentially a wholesaler, rather than a direct provider of services. It will identify and recruit the partners needed (in Cambodia and elsewhere) who will be the service providers, so that the PCU itself can concentrate on strategy and learning. (see Annex-1 for proposed partners). A second key design feature is the convening of a multi-stakeholder Oversight Committee (OC), to advise the program and form part of the decision-making process. By bringing both suppliers and potential users of capacity building initiatives together with government, donors and other stakeholders, it would provide the axle around which the program revolves, it would advise on key PECSA priorities, and be a learning group that draws lessons from global SA practice and from evolving PECSA experience. By establishing an open, transparent, merit-based selection process for membership of the OC (including inviting three widely respected and independent leaders of the civil society/academic community and a senior RGC representative or official to help recruit potential OC members), by not having World Bank representation on it, and by assigning to it, and to its subsidiary Development Marketplace Committee, full authority over selecting successful grantees in the program, the Bank will be at arms-length from grant allocations as a measure to guard against reputational risk. The OC is described further in Component 3 below. The PCU, OC and the series of CSO partners contracted to provide the various PECSA services comprise the institutional core of the program. This is shown diagrammatically in Annex 2. The exact program design is meant to be flexible upfront so that the Oversight Committee and PCU can determine its structure and details based on systematic consultations with Cambodian CSOs, taking into account the realities of a challenging country context. This is expected to ensure ownership, sustainability and feasibility in management and administration of PESCA. The logic of this approach is that since the OC and PCU are expected to implement the PESCA program, they should be given the flexibility to design it collaboratively with key stakeholders, rather then being handed a pre-cooked grand design. However, broadly speaking PECSA will achieve the intended capacity enhancement by supporting the following elements: Component 1: Training, mentoring and awareness-raising. Budget $600,000 a) Training in SA techniques: Centers of Social Accountability Excellence would be identified in countries where the discipline is widely practiced with an emphasis on CSOs and academic centers in Asia (like India and the Philippines, where no language problems are anticipated).

6 These SA Partners will provide training modules for Cambodian audiences (including NGOs, CSOs, media, academia, and government officials) and also give training to Cambodian trainers. The former will either take place in Cambodia or through Distance Learning availing the services of the Bank s Global Development Learning Network. The latter would generally take place in the country of the SA Partner. Training programs could include more generic skills such as in legal or policy literacy. This would be modeled on existing Bank-supported schemes (such as the Community of Practice for SA and South Asia SA Network that bring together practitioners and agencies working on SA together in an exchange forum). Demands for training shall be obtained through a series of multi-stakeholder consultations. A separate civil society assessment will be undertaken to get a quick analysis of the current capacity of CSOs in the field of SA, and identify gaps. b) On-the-job mentoring and coaching: Similar to above but with more intensive, task-oriented and more on-going programs delivered within NGOs that are planning to use SA tools. Providers would be expected not only to provide in-house training but also follow-up advice and problem solving guidance. This might include a twinning scheme linking the providers with centers of SA excellence overseas. Advice could include help in framing applications to the Development Marketplace (see below). Initially the providers would be non-cambodian organizations (especially to provide help with the customizing of SA tools for use in Cambodia), but in time it is expected that Cambodian institutes that have themselves become proficient in SA techniques would take over this function for newly interested organizations. A voucher scheme might be considered to ensure the scheme is demand led by the grassroots CSOs. c) Exchange visits and scholarships: Study tours with clearly defined outputs and follow-up plans to learn directly how specific SA tools are applied by leading practitioners; scholarships enabling CSO leaders to gain a broader understanding of the discipline in countries where SA tools are extensively used. Scholarships could include study periods in a university or similar institution on specific, defined learning assignments. This would be modeled on an International Budget Project scheme (financed by Ford Foundation) for CSOs interested in budget analysis and related activities to spend a significant period learning the arts with leading practitioners. d) Special programs linked to DFGG focus areas: Targeted training/mentoring programs would be offered to journalists and the media, parliamentarians, labor unions, and those engaged in civic education and governance at the local level. For the media the emphasis would be on investigative journalism and responsible name and shame campaigns; for parliamentarians the focus would be on how to hold the executive arm of government to account (including the roles of civil society, budget literacy, and the importance of transparency); for labor unions the focus would be best practices in arbitration and representation, and the experience of Arbitration Council equivalents in other countries; and for civic educators the emphasis would be learning the roles of CSOs in other countries undergoing decentralization, democratization, judicial reform and the expansion of citizens rights. There might also be a special program for NGO leaders on NGO Accountability a subject of increasing concern to many Cambodian NGOs., This would enable learning about the ways that NGO sectors elsewhere have evolved codes of conduct, certification schemes and other mechanisms to foster good NGO governance. Component 2: Action-Learning and Tool Development. Budget $550,000

7 a) Pilot Development Marketplace (DM): As CSOs acquire awareness about SA, they will wish to apply their learning and this will entail tailoring and innovating tools suitable for the country context. PECSA would aim to support this through a competitive grant-making scheme that will be developed by the proposed project coordination unit in consultation with other stakeholders and supervised through the project s Oversight Committee (OC) described below. CSOs would be invited to submit proposals to an experimental DM for venture governance grants, especially in DFGG s designated priority areas. This would help pilot and provide important lessons for the DMs planned for the DFGG project; it might also be a good vehicle for mobilizing support (in cash or kind) from other donors. The DFGG, in turn, will be able to scale-up successful innovations supported by the PECSA-DM. While a grant-giving partner may be selected to administer the DM and vet proposals for suitability, a DM Committee would be formed to select the winners. This committee would draw on the OC and others from civil society, government and donors selected according to relevant expertise. The OC would have oversight of the DM Committee and would formally ratify the grant selections made by the latter. All members of the DM Committee would be fully disinterested in all applicant organizations. Having an open, transparent, merit-based selection process for membership of the OC and its subsidiary DM Committee, without World Bank representation, will ensure that the Bank is at arms-length from grant allocations, as a measure to guard against reputational risk. b) Tool-development and action research: It may transpire that CSOs do not take up certain SA approaches that the PECSA structure considers should be priorities for Cambodia. Hence this more pro-active grant conduit would enable PECSA to invite very effective NGOs to develop and test tools in these priority areas. While it may be that the PECSA leadership could undertake this commissioning role directly, the first option would be to select two or three partner organizations as intermediaries. Grants would cover the R&D costs of developing and testing SA tools for Cambodia, including adapting tools from other countries to the Cambodian context, monitoring their implementation, and disseminating the results as case studies to guide further operational and capacity building initiatives. (WBI and SDV have SA tool kits that would provide good starting points). Tools may include interactive and popular web-based usermanuals, videos on SA in action, or pedagogical aids for explaining the resource curse. The PESCA Coordination Unit and Oversight Committee would identify relevant priority areas and potential partners would be screened for their ability and interest in acting as funding intermediaries. Component 3: PECSA Leadership, Resource Centre and Networking. Budget $440,000 a) PECSA Leadership: A leading global SA practitioner would be recruited to spend 2 years in Cambodia to help design and execute the program, bring the best global experience and exponents of SA to Cambodia, represent PECSA to key government, donor and other audiences, provide expert advice and guidance to CSOs, and provide first-line oversight and quality assurance. S/he would head the PCU and also serve as a bridge between PECSA and the DFGG project and would catalyze and steer the CSO networks required for both PECSA and DFGG. This person, and PECSA itself, would be guided by an Oversight Committee comprising leaders of CSOs, capacity building institutions, academics, government (Ministry of Interior the DFGG counterpart) and donors. The Oversight Committee will be comprsied of those who are

8 influential and credible (with a broad range of stakeholders in Cambodia) and have integrity. Members would have demonstarted commitment to government accountability, as well as have experience in partnerships between civil society and the RGC. Selection for the Oversight Committee will be done through both nominations from different stakeholder groups as well as by invitation to prominent leaders, who are influential and committed to social accountability. The selection process will be open and transparent, and will be elaborated in the anti-corruption plan to ensure no vested interests. It will be informed by the selection process and establishment of a multi-stakeholder Oversight Committee in the DFGG Project, which will be done during project preparation with the assistance of a technical specialist consultant. The Oversight Committee will have overall responsibility for the PECSA. Besides providing guidance during preparation and oversight during implementation, the multi-stakeholder committee will help to link PECSA to the DFGG project, and forge coalitions of reform champions. Without becoming too bureaucratic or top heavy, it may serve as the decision maker for selection of SA priorities, partner institutions and funding choices. b) Knowledge-management services: A web-based (and physical ) resource base for SA practitioners would be established, including Khmer translations of the most influential SA literature. This would serve as a repository for innovations in SA practice in Cambodia and elsewhere, lists of SA specialists (e.g. trainers, mentors), implementation manuals, videos, training materials and other resources. The resource base would be housed in the Bank s Public Information Center (PIC), and there may be regional resource centers in existing institutions and think tanks, which can eventually take on the knowledge management services for SA practitioners after the close of the program. c) Mutual support forum: It is anticipated that the above will evolve into a forum for SA practitioners to convene to share experiences and solicit advice on tackling challenges. By focusing especially on SA innovations relating to Component 2, it will provide important opportunities for learning and exchange amongst all PECSA-supported practitioners. It will also offer a mechanism to reflect on and advocate about governance-related issues, such as public access to information, and organize an annual conference to showcase and learn from significant ventures in SA over the year. The PECSA Leader might facilitate this forum. This element in particular would ensure close coordination with WBI, whose Affiliated Network for Social Accountability (ANSA)-East Asia program aims to build a regional network of SA practitioners. Component 4: Monitoring, Impact Evaluation and Learning. Budget $250,000 a) Monitoring, Impact Evaluation and Learning: Since Cambodia is low on the learning curve for SA, a key feature of PECSA is to ensure learning-by-doing. Although many SA approaches might be immediately applicable in Cambodia, some will need to be carefully tailored to the country context hence monitoring and impact evaluation (M&E) is vitally important. To ensure objectivity in this, a local research institute would be commissioned to conduct independent evidence-based research, for M&E of PECSA-supported activities, and to distil lessons of relevance to DFGG. It might, in time, also be called on to evaluate the impact of DFGG activity. The selected institute may recruit an Monitoring and Evaluation Specialist to lead this work. Candidate institutions to take on this role include think tanks or academic

9 institutes such as Cambodia Development Resources Institute (CDRI), Center for Advanced Studies, Cambodia Institute for Development Studies, Economic Institute of Cambodia, Royal University of Phnom Penh (Development Studies program). b) Other Special Studies: The PECSA Leader and Oversight Committee would identify topics that demand further study in order to further SA practice in Cambodia, starting with a participatory SA Capacity Building Needs Assessment. Other special studies could include assessment of specific SA practices, analysis of governance-related issues and studies of constraints to SA practices. Component 5: Project Administration. Budget $155,000 PECSA Coordination Unit. This program, being complex and with multiple components and sub-grants, needs careful administration and oversight by a unit, comprising in addition to the PECSA Leader (the budget for whom is included in Component 3): one business manager (who has strong skills on fiduciary oversight) to ensure the program stays on track and one support staff. Both would be national recruits and would work under the PECSA Leader. All staff, housed in the World Bank office, would be charged with ensuring the efficient and effective implementation of the grant, developing an anti-corruption plan for the project and ensuring adequate audits, tight fiduciary oversight and regular monitoring of PECSA activities. The support staff would be a Cambodian national who speaks English and is well connected with CSOs and development partners in Cambodia. The PECSA Coordination Unit will organize and service the PECSA mechanisms including the Oversight Committee, support forum, grantmaking processes and the business arrangements with PECSA partners, including through wholesaling such functions to intermediaries. They will also contract an independent audit of funds under the program. (c) brief description of recipient organization(s): Recipient organizations are CSOs and other non-state actors who are already actively engaged in activities to improve governance and transparency in Cambodia, or are planning such activities. The precise recipients will be identified by the PECSA process itself (especially the PECSA Coordination Unit and the Oversight Committee) but those listed throughout section Annex-1 as Partners in Cambodia for each component are likely recipients. Many have already been consulted and have confirmed their keen interest. Those identified in Annex-1 as Overseas Partners are the likely technical resources. Government will be represented in the Oversight Committee and officials will be able to participate in training courses, study tours and other activities, as appropriate. 2. Proposed use of grant funds (breakdown by project component, including consultants, travel, studies, equipment, etc. 1 ). Please note that flat overhead rates or fees by executing agencies are contrary to the PCF Guidelines. All figures in this table are in US$ 000 except the bottom row (which is percentages) PECSA Consultants/ Training/ Study tours Studies Sub-grants Goods Contingency 1 LICUS TF funds may not be used to cover Bank staff costs which should be covered under the grantsponsoring unit s administrative budget. Grant funds are made to external grant recipients.

10 Component PECSA staff workshops & travel TOTAL % 31% 25% 6.5% 10% 20% 4% 3.5% Please note that the exact distribution between the various components and activities will be adjusted in light of the findings of the consultations with potential partners and the advice of the PECSA Coordination Unit and the Oversight Committee. This is in keeping with the process design approach being used to determine the structure and details of the PECSA. The entry for Consultants in Component 3 would include honoraria for non-state actors serving on the Oversight Committee Disbursement is expected to start at modest levels in FY07 (max $250K by June 2007), peak in FY08 ($945K) with the maximum volume of training, grants and other activities, and decline in FY09 ($800K) when the program would close and the DFGG project will have assumed most remaining SA needs. Hence the program will have a 2.5 year timeframe. 3. Implementation arrangements (Role of Bank vis-a-vis recipient/executing agency and other partners, list of other donors and amount of their support, including in-kind contributions): The program would be executed by the Bank. An international SA specialist as program leader, a business manager and one support staff would be recruited for this. These people would comprise the PECSA Coordination Unit and be housed in World Bank facilities; the PECSA resources center would be linked to the Bank s PIC. The selection of SA priorities, research topics and overall direction of the program will be determined by the Oversight Committee, comprising CSOs, academics, government representatives, donors and the PECSA Leader (as an ex-officio, non-voting member for secretariat purposes). The OC would oversee grant making both by funding partners (Component 2b) and through the Development Marketplace (Component 2a), ultimately ratifying the selection made by the DM Committee. (See Components 3a and 5 for more detail of functions.) Members of the OC and DM Committee would be entitled to reimbursement of expenses for attending meetings and would be eligible to receive a small honorarium (if this is permissible by their employer). The PECSA team will: identify all partners (including those overseas) and commission them to provide the training, mentoring and grant-making services; organize the research and M&E activities as well as the Development Marketplace and resource center(s); service the Oversight Committee and the mutual support forum; develop an anti-corruption plan for the project and ensure adequate audits and monitoring of PECSA activities. The anti-corruption plan might include the possibility of a civil society grouping to monitor, and produce public reports on, the workings of the Oversight Committee, DM Committee and PECSA Coordination Unit.

11 The institutional structure (illustrated schematically in Annex 2) will use a wholesaling approach wherein the specific tasks for different components will be outsourced to local CSOs/agencies to handle. The next step the Bank will undertake is a capacity-building needs assessment amongst CSOs interested in governance and related issues to establish priority areas of support sought (skills training, mentoring, exposure to experiences elsewhere, specific technical assistance, access to resources etc) and what SA capacity building is already on offer. Once funding is assured, the Bank would organize as a launch event the first of a series of national stakeholder conferences on social accountability which would discuss SA priorities and identify potential SA pioneers and partners. These studies and consultations are expected to elaborate further the selection criteria for participating CSOs, which will be finalized by the Oversight Committee and the Coordination Unit. The intent is to favor more grassroots and non-phnom Penh based CSOs, to the extent feasible. Besides a direct link with the pipeline DFGG project, PECSA would also related closely to and coordinate with the Justice for the Poor program (financed by an Australian Trust Fund) and the multi-country Social Accountability grant managed by SDV (also Australian Trust Fund), which could provide avenues for co-financing. 4. Linkage to Bank priorities in Country Reengagement Note (or other country strategy) The Country Assistance Strategy (CAS) for Cambodia of 2005, covering FY05-08, identifies governance issues as the primary obstacle to sustainable poverty reduction in Cambodia. The CAS is intended to help the Government implement its Rectangular Strategy, which provides a sound diagnosis of Cambodia s development challenges particularly the central importance of good governance. As a result, activities Pillar 1 of the CAS aims to help implement improvements in governance. Its fourth objective is to promote accountability by supporting decentralization and citizens partnerships for better governance. The theme of partnerships for good governance emphasizes that demand side approaches are required to complement and reinforce supply side actions, and that partnerships between the state, civil society, the media and the private sector (including labor unions) are vital. The LICUS grant, a pilot for the DFGG project under preparation, speaks directly to the resolution of governance issues in Cambodia by building the capacity of institutions and supporting programs and coalitions which promote, mediate, assess or address demand for good governance in the context of the government s reforms. Overall, the Bank is devoting significant analytical firepower to demand side approaches in Cambodia, which will inform the detailed design and implementation of the LICUS grant. An ongoing Civil Society Assessment is mapping out the institutional landscape of civil society. In addition, an IDF grant is supporting a deeper analysis of the enabling environment for a more active civil society, and catalyzing policy work to reduce the constraints. Finally, a number of the preparatory studies for the DFGG project are focusing on how to strengthen civil society institutions and programs to tackle governance issues.

12 5. Indicate supervision costs and certify that funds will be provided by the grant-sponsoring unit from its own administrative budget. The task team working on the Demand for Good Governance (DFGG) Project has received a preparation and supervision budget for FY07 (US$150K) and anticipates a similar budget for FY08 which would allow for supervision of PECSA alongside ongoing DFGG preparation. Discussions with the Country Director and Country Manager indicate the likelihood that $25K will be added for FY08 for supervision of the LICUS TF project, given its innovative nature, its critical relevance to DFGG, and the fact of it being Bank executed. Additional funds for this FY may be forthcoming from reallocation or resources from other activities. V. Extent of Conformity with LICUS TF Eligibility Criteria 1. Indicate how the project supports capacity-building to support governance reform and/or strengthening social service delivery 2? There is momentum to push for better governance in Cambodia and many CSOs, journalists, think tanks and others are keen to help advance good governance, but lack the know-how. They would be in a better position to do so if they acquired the skills and experience of social accountability practitioners elsewhere, were helped in planning how best to use such techniques in Cambodia, had somewhere to turn when they experience difficulties, and had access to on-thejob support, especially during the early stages. The proposed grant will support the development of the necessary technical skills and the learning from other practitioners. In addition, PECSA is designed to create a network of organizations working on improving governance in Cambodia. This would enable the participant organizations to discuss ideas, share and learn from each other s experiences, so comprising a source of knowledge and a resource that other organizations could draw upon. 2. Describe how the project links to other donor activities and its place in an agreed multi-donor strategy. The Government-Donor Coordination Committee (GDCC) has identified governance reform as the key challenge. All the main donors (bi- and multilateral) accordingly finance programs to promote governance reform, almost all of which entail contributions from non-state actors. These programs include support for the (imminent) Anti-Corruption Law and the institutions to be created by it; support for decentralization (especially strengthening commune councils and innovations in service delivery at District level); support for legislative and judicial reform; support for the development of a Freedom of Information law and appropriate institutions to implement this; and strengthening the effectiveness and independence of parliamentary commissions relevant to governance reform. While these and other donor programs include SA and SA-like elements, PECSA would be unique (and complementary to these donor programs) in that it provides a holistic service to build capacity for and support SA practices across the waterfront of governance. Hence it will help to integrate and draw synergies amongst the various governance initiatives hence avoiding atomizing SA, as is the current tendency. 2 See Guidelines for Working with the LICUS Implementation Trust Fund [web link]

13 Key donors that PECSA would work closely with include: DFID/DANIDA, UNDP, ADB, USAID, PACT, EWMI, Oxfam, AusAid, SIDA/ Diakonia and Asia Foundation. The task team has had consultations with these agencies, which have all expressed support for the program. The pending DFID/DANIDA program on governance, which is likely to come into effect towards the close of PECSA could well take up on the capacity building activities launched here. 3. Exit strategy and potential future Bank activities as follow up to the project. The proposed project will pilot activities that will be later implemented on a national scale by the DFGG project. It will therefore pave the way for DFGG, but at the same time be scaled-up and eventually replaced by the five (likely) set of DFGG activities: Initiatives to strengthen local government reform within decentralization especially through One Window Services and District Ombudsmen; Enhancing public access to information, especially regarding new laws on decentralization and anti-corruption; Enhancing the effectiveness of parliamentary oversight, especially regarding budgets and natural resources; Enhancing the contribution of the media to good governance, especially by supporting Radio Kampuchea s popular Talk Back Radio Enhancing the effectiveness and conflict-resolution roles of the Arbitration Council. Once DFGG comes on stream there will be project resources and structures to support social accountability initiatives, especially relating to the above priorities and for advancing government partnerships with non-state actors in promoting good governance. These could engage immediately in implementing and enforcing the proposed laws on anti-corruption and policy on freedom of information that the RGC is aiming to introduce in the near future. In addition, the DFID-DANIDA program mentioned above envisages the creation of an NGO Foundation within 3-5 years which could well assume many of the capacity-building and mutual support/exchange activities built up by PECSA. 4. Provide rationale if Bank execution of project is sought. Bank execution is foreseen for this grant for the following reasons: a) The implementation capacity of the government is very limited; RGC in particular finds it difficult to execute programs that span the subject matter of multiple ministries such as is required by comprehensive governance reform programs; b) RGC itself is seeking to learn about governance reform and there are currently very few officials who have more than rudimentary knowledge of social accountability disciplines and tools; hence RGC would prefer to see itself as a user of PECSA services, rather than a provider; hence the Deputy Prime Minister has asked the Bank to execute PECSA c) Given that the objective is to enhance constructive but independent contributions to governance reform from non-state actors, it would be invidious for the executive branch of government to run the program designed to enhance capacities for such contributions; CSOs and journalists, in particular, would find it compromising to seek services from a RGC-run program for such purposes;

14 d) It would be particularly invidious for RGC to be responsible for selecting amongst applicant NGOs which receive grants, scholarships and places on study tours; critics might surmise that the program is supporting just friendly NGOs, and in this way creating divisions within civil society; e) There is no single NGO, think tank or other non-state actor that has the capacity to execute a program of this scope and complexity, nor that would be acceptable to the full array of partners. Indeed the development partners most interested in SA in Cambodia regard the Bank as leading in the field and would strongly prefer the Bank to continue this pro-active, leadership role. However a number of potential partners have the capacity and experience to implement specific PECSA components which means that a wholesaling approach is eminently feasible. f) While the relevant donors have expressed support for the PECSA concept, none of them has voiced a desire (or has the capacity) to execute the program. The donors look to the Bank to provide general leadership on governance matters (for example the Bank chairs the donorgovernment dialogue on governance and conducts most of the governance-related research) and while other donors have specific governance programs that include SA elements, they have no plans for broad-based SA support. g) Moreover, the global SA networks on which PECSA would draw are mostly Bank-facilitated, and other donors may have limited global convening power in this area. On the other hand, the Bank Task Team which will lead the PECSA is well integrated into these networks. h) Since PECSA is laying the groundwork for the Bank-financed DFGG project, it makes considerable sense to maintain a strong link between the two initiatives through Bank execution of PECSA. If another donor was charged with PECSA, the link with the DFGG would be weakened, or even broken. For this reason, the Country Manager has strongly requested Bank execution. i) The DFGG project is breaking new ground even for the Bank s Country Team and therefore it has expressed keen interest that PECSA be executed internally so as to provide for avenues of learning by doing, innovation, and process monitoring that could inform the preparation of the DFGG project as well as future Bank programs on governance in Cambodia. j) EASSO, which will manage PECSA, has considerable experience in successfully managing Bank executed grants overall in EAP. RGC itself, while enthusiastic about both DFGG and PECSA, is aware that PECSA should be executed at arms length and has therefore requested the Bank to execute it. It recognizes that this would better ensure a fair, respected and transparent process for allocating funds and capacity building support to the various CSOs. The wholesaling approach that is being adopted and the institutional anchor in the form of the multi-stakeholder oversight committee will ensure that capacity for management of PECSA activities is housed and sustained in local agencies. V. PROJECT DESIGN SUMMARY Guidelines: The Project Design Summary (PDS) presents a summary of the proposal and should be used to monitor and evaluate the progress and achievements of the project. Performance indicators are measures of project outcomes, outputs and inputs that are monitored during implementation to assess progress toward project objectives. Narrative Summary 1. Project Development Objective Key Performance Indicators 1A Outcome Indicators Monitoring and Evaluation 1B Project reports/process Critical Assumptions 1C (From Objective

15 PECSA will, over 2-3 years, have contributed to governance reform in Cambodia by enabling the most powerful tools of Social Accountability (SA) to be brought to Cambodia and adapted to the national context; it will have trained non-state actors in the use of these tools and provided grants and other support for piloting and developing these SA practices; and it will have provided a forum for mutual support and other services to SA practitioners Numbers of new programs using SA approaches Numbers of RGC-CSO joint undertakings to improve governance Enhanced public and parliamentary interest in issues of governance and enhanced confidence in the governance reform aims of RGC involved PECSA Leader/Unit and the Oversight Committee will gather data on SA practices. The M&E component (see above) will yield data both on the extent of SA activities and the outcome from those activities. Use of independent think tanks etc will ensure the objectivity of the M&E to Bank strategy (WB, CRN, TSS, CAS) RGC and its development partners will continue to regard governance reform as the top priority; RGC will continue to welcome Bank and donor support in governance reform, and will continue to take forward the DFGG project specifically. Donors and NGOs will continue to voice support for the proposed program

16 2. Expected Outputs 2A Output indicators 1) Training and capacity building: key partners in Cambodia and abroad will be identified to provide training and mentoring for SA practitioners, including through distance learning and special programs 2) Action-Learning: Pilot Development Marketplace for SA will be initiated A DM Committee (reporting to the OC) will be set up to select grantees (arms length from the World Bank). x trained x study tours/scholarships x mentoring arrangements x covered by special progs: Journalists Parliamentarians Union leaders Civic education leaders xx grants will be provided to non-state actors 2B Various project reports, supervision missions and evaluation reports Reports will be compiled by the independent researchers commissioned under component 4 on experience with PECSA activities including evaluations of specific activities. The Project Leadership Unit will prepare quarterly reports on progress. Each grantee under the Development Marketplace will submit a mid-point and completion report on the use of the grant they received. 2C (From Outputs to Objective) There is the anticipated level of interest in the training courses and mentoring programs offered (including interest in the special program constituencies) Partner organizations in other countries can be identified who will agree to impart their SA expertise in the ways described. Intermediary (support) orgs will be selected to provide advice and finance for SA tool development. 3) Leadership, Resource Center, Networking: Identification of PECSA Leader and Oversight Committee (OC); Resource Centre to offer technical and practical info on SA to potential users. Practitioners forum will share experience & support 2-3 support organizations providing support in SA to xx client CSOs Appointment of Leader Establishment of OC with xx highly respected members Physical resource center SA Web-site functioning Best SA literature translated into Khmer xx participants in support forum The support organizations in components 1 and 2 will be asked to present 6- monthly reports and the resource center (component 3) will document usage of both the physical and web-based services The minutes and recommendations of the Oversight Committee will be made publicly available