SELECTED EDUCATION STATISTICS AND INDICATORS APPENDIX 10

1. Total external funding to the education sector for the period 2005–2010 is estimated at US$ 327.6 million, with US$ 97.2 million actually spent in 2005, US$ 100.1 million in 2006, and US$ 130.3 million projected for 2007–2010. The total funding is financed by 124 donor organizations through 324 outstanding projects. Of the total projected financing for the 2005–2010 period, 29% is expected to come from UN agencies, 26% from international NGOs, 15% from bilateral agencies, 8% from international organizations, 4% from local NGOs, 2% from research institutes, and 17% from other sources. Although funding amount is aggregated, the Asian Development Bank, the World Bank, the EC, and the UN agencies are among the biggest donors to the country's education sector. Summary figures are provided in Chart 1 below.

Chart 1 - Development Partner Budget by Type of Donor Organization: 2005-2010

(US$ 000; %)

Local NGOs, $14,296, 4%

International Organisations, $26,447, 8%

Bilateral Donors, $46,181, 14%

Research Institutes, $7,965, 2%

UN Organization, $91,588, 29%

Others, $55,166, 17%

International NGOs, $85,927, 26%

Source: MOEYS Department of Planning, Education Aid Project Database in Cambodia 2006

2. In terms of annual budget allocation and disbursement, 29.7% of total budget was actually disbursed in 2005, 30.5% estimated in 2006, and it is projected that the remaining will be disbursed in the following proportions: 18.7% in 2007, 10.9% in 2008, 6.4% in 2009, and 3.8% in 2010. This projection has not taken into account further annual commitments (and disbursements) by the donor community to Cambodia at annual Donor

Consultative Group Meetings.

3. With regard to budget by sub-sector, total 2005-2010 budget is allocated as follows: 34.2% for primary education quality and efficiency, 9.9% for non-formal education expansion, 8.3% for facility expansion; 6.8% for continuous teacher education; 6.6% for capacity building, 6.5% for higher education quality, efficiency and equitable access; 3.7% lower secondary education access, quality & efficiency; 3.4% for secondary scholarship for the poor; 3.3% for upper secondary education access, equitable access; 2.9% for early childhood education, 1.9% for core instructional materials; 0.6% for strengthened monitoring systems; 0.6% for education service efficiency, 0.2% for youth and sport development, and the remaining 10% is allocated for other sub-sectors. Details are presented in Table 1.

4. It is noted that allocated investment in (lower and upper) secondary education access, quality & efficiency accounts for just 7.1% of total budget versus that of 34.2% for primary education quality and efficiency. In this regard, more funding should be earmarked to improve the quality of secondary education due to its significant social returns from this subsector. To this end, ADB's focus in the EEQP is well justified.

5. By geography, donor budget for 2005-2010 is distributed in a balanced proportion taking account of population, poverty severity, and other economic and demographic indicators. The distribution is also observed to be balanced between non-disadvantaged and disadvantaged provinces. It is indicated that the budget for Phnom Penh accounts for 18% of the total 2005-2010 budget. However, this high proportion is due to the fact that allocations to line ministries are aggregated in this category, rather than Phnom Penh as a normal administrative unit. Detailed geographical distribution is outlined in Table 2.

6. MOEYS has endorsed the national Education Strategic Plan (ESP) 2006-2010. The required funding to successfully achieve the ESP objectives is estimated at US$ 864 million for the 2006-2010 period. Annual projected funding required is as follows: US$ 140.7 million (16.3%) for 2006, US$ 162.4 million (18.8%) for 2007, US$ 172.9 million (20%) for 2008; US$ 188 million (21.8%) for 2009, and US$ 200 million (23.1%) for 2010 (Table 3).

Source: MOEYS Education Strategic Plan 2006-2010

7. Although Cambodia's economic growth prospect is bright with high projected GDP growth rate, public revenue, mainly from tax collection, will not be capable of funding the implementation of ESP 2006-2010. Continued donor support is needed and ADB grant under the EQEP will significantly support the ESP implementation process.