| General Information |
Project/Program |
Project |
| Project Name |
Rural and Credit Savings Project 30237 |
| Duration |
Approval: 27-April-2000 Actual Closed: 25-Oct.-2006 |
| Donor |
Asian Development Bank (ADB) |
| Implementiong Organization |
Rural Development Bank (RDB) and National Bank of Cambodia (NBC) |
| Sector and/or Subsector Classification |
Others |
| Region |
Region is not specified in the completion report. |
| Financing |
Appraisal Total Project Cost: USD 25.6 million Actual Total: USD 4.9 million ADB Financed: USD 20million |
| Analytical Information |
Stakeholders |
Rural Development Bank (RDB), National Bank of Cambodia (NBC), Ministry of Commerce, seven licensed financial institutions (five licensed microfinance institution), Project Coordination Committee, Project Management Unit, Association of Cambodian Local Economic Development Agencies, Agence Francaise de Developpment, International Fund for Agricultural Development, Government's Credit Committee for Rural Development, Nongovernmental Organizations, already existing commercial banks, rural community, civil society. Technical Assistance was given to make a clear objective for stakeholder participation. |
| Cross-cutting Issue |
Environment |
As the project aims to develop current NGOs in to legally financial institutions to be more accessible to the rural poor, shareholding decisions, appointing directors and officers, formulation of memorandum was cumbersome and complexity was underestimated during the design of project. |
| Gender |
No gender related materials in completion report. |
| Impact Analysis |
The project aligns with first medium Socio-Economic Development Plan (SEDP) 1996-2000, the Government's Credit Committee for Rural Development realized the unmet demands for commercial banking. |
| Effectiveness |
Ownership/Partnership |
Evaluation |
Ownership/ partnership of the project is not mentioned in completion report. |
| Rating |
N.A. |
| Policy Coherence/Harmonization |
Evaluation |
There were no other organizations or agencies that participated in this project. There is no relevant material on whether the executing agency or Asian Development Bank was able to make a smooth setting for future similar projects. However, the harmonization with the NGOs and the government agencies should be noted. |
| Rating |
2/5 |
| Evaluation Framework |
Evaluation |
During project implementation, there was a social and environmental assessment (understanding the intended beneficiaries, examining the clientele's socioeconomic conditions, capacity In financial services, proper environmental capacity check etc.) to realize the full possibility of the project. |
| Rating |
3/5 |
| Alignment/Composition of Finance |
Evaluation |
First loan was given to the LFI (ex-NGOs) 12 months after the loan effectiveness date due to issues concerning corporatization of MFIs. According to the completion report, the number of MFIs that would be able to meet the eligibility criteria for participation was overestimated, the time to make NGOs a corporate legal entity was underestimated, thus ADB decreased its financial assistance to USD 5 million dollars. |
| Rating |
2/5 |
| Other Remarks |
The borrower and executing agency was identified by the National Bank of Cambodia as "generally well managed, but some deficiencies (lack of credit expertise, and risk assessment capability) need addressing promptly to avoid problems." |
