PUBLIC INVESTMENT MANAGEMENT
Management of Public Investment Projects, Sub-Decree 41 dated 25 March 2020 on Public Investment Management
This Sub-Decree has been introduced by the Royal Government of Cambodia with the purpose of ensuring the effectiveness, efficiency, transparency, accountability and sustainability of the management of public investment projects across all levels of public administration and for all kinds of financing sources.
The scope of this Sub-Decree covers the management of the following public investment projects:
- projects financed by the national budget;
- projects financed by foreign sources;
- public investment projects through public-private partnership mechanisms;
- public investment projects with different sources of financing;
- public investment projects financed through the privatization of state property;
- public investment projects undertaken by public enterprises, public administrations or other similar public entities; and
- public investment projects financed through commercial loans.
Public investment projects financed through commercial loans are permitted only for economic infrastructure projects that have tangible economic and financial benefits based on the current conditions of Cambodia. The Ministry of Economic and Finance (“MEF”) shall issue a Prakas to set forth the types of projects that are eligible for financing through commercial loans every five years.
The selection and budgeting of public investment projects shall follow these common principles: (1) rationalization by which the project must be necessary for the economy, society and environment, (2) economic and financial benefits, (3) whether it is the best option, (4) financially viable, (5) achievability of the project, and (6) project readiness.
The development cycle of the public investment projects is to be divided into eight phases:
- Phase 1 – Identification and preparation of the preliminary project proposal;
- Phase 2 – Feasibility study and project evaluation by the responsible line ministries or authorities;
- Phase 3 – Review and valuation of the proposed project by the MEF;
- Phase 4 – Selection and budgeting of the project by the MEF;
- Phase 5 – Management and implementation of the project including undertaking of the procurement process;
- Phase 6 – Amendment of the projects during their implementation;
- Phase 7 – Testing and approval of the infrastructure constructed under the project; and
- Phase 8- Evaluation of project completion.
Should you have any queries or concerns on whether your projects may be impacted by this Sub-Decree, please feel free to contact us.
GOVERNMENTAL ORGANIZATION
Organization and Functioning of the Ministry of Commerce, Sub-Decree № 38 អនក្រ.បក 16 March 2020.
This Sub-Decree aims to determine the mission and structure of the Ministry of Commerce (“MOC”), organization of duties and other obligations of the MOC; and the quality and effectiveness of work results in the commercial sector.
While the departmental structure of the MOC remains the same, there are different internal working arrangements within each department. Of note, the functions of the Commercial Registration Department will include developing commercial operations via electronic means and managing and issuing online business operation permits and licenses to individuals and legal entities. Further, subsequent to forthcoming implementing regulations on the Law on E-Commerce being issued, business operators via electronic means must obtain a permit and license from the Commercial Registration Department.
In addition, based on this Sub-Decree, the General Department of Consumer Protection, Competition and Fraud Prevention under the Ministry of Commerce must research, organize and establish policy and strategic planning related to the quality and safety of products and services for the sake of ensuring consumer protection and fair market competition. The department will cooperate with the relevant authorities to curb and crack down on counterfeit goods and take measures against abuse of dominant market position and curtail threats to competition. This is to ensure the quality, safety and compliance of products and services, market competition and to protect the rights and interests of consumers.
If there is any complaint related to consumer protection, competition and fraud prevention, the complaint must be filed with the Department of General Affairs and Public Relations of the MOC.
We expect that the implementing regulations of the Law on E-Commerce that will outline the process and procedures on the licensing requirements applicable to online businesses will be issued in the upcoming months.
Organization and Functioning of the Ministry of Industry, Science, Technology and Innovation, Sub-Decree 48 dated 6 April 2020
Following adoption of the Law on the Establishment of the Ministry of Industry, Science, Technology and Innovation (“MISTI”) dated 28 March 2020 pursuant to which the Ministry of Industry and Handicraft (“MIH”) was renamed the MISTI, the Royal Government of Cambodia has issued this Sub-Decree to set forth the organization and functioning of the MISTI. Under this Sub-Decree, two new entities: the General Department of Science, Technology and Innovation; and the Institute of Science, Technology and Innovation were established in addition to the existing departments and authorities that had been formally constituted under the MIH. Accordingly, the MISTI has the following five general departments, two institutes and one center, including:
- General Department of General Affaires;
- General Department of Industry;
- General Department of Small and Medium Enterprises and Handicraft;
- General Department of Clean Water;
- General Department of Science, Technology and Innovation;
- Institute of Standards of Cambodia;
- Institute of Science Technology and Innovation; and
- National Metrology Center of Cambodia.
The General Department of Science, Technology and Innovation has the authority, among others, to prepare policies, strategies, mapping and legal instruments for the science, technology and innovation sectors. This includes preparing and managing new initiatives in science and digital technology that serve general industry and other sectors. This also ranges from promoting automation and strengthening the provision of public services with respect to the issuance of patents to the creation of national standards for the issuance of certificates and accreditation for universal technology.
The Institute of Science, Technology and Innovation has the following authority, including but not limited to, (1) study and research on science, technology and innovation with the intention of servicing various sectors (including the industrial sector), (2) to provide training in science, technology and innovation, and (3) to establish and operate laboratories for scientific and technological research.
We expect additional regulations concerning digital technology to support digital startups to be issued in the forthcoming months.
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The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situation.
