To achieve this outcome, ADB will develop a cluster program approach with phase 1 in 2001, with PPTA in 2000, and phase 2 in 2004, with PPTA in 2002. Capacity building TA is provided in 2001. Because of the importance of good governance in the banking sector, and the relative lack of ADB experience in this sector in Cambodia, it is essential that the Government demonstrate the willingness to undertake key reforms. A trigger for further financial sector involvement, therefore, will be a satisfactory midterm review of the Rural Credit and Savings Project . About 15.0 percent of the population has access to electricity and this is only in Phnom Penh and the provincial towns.
Generation is small-scale and inefficient.
The cost of electricity in Cambodia is the highest in the region and Cambodia has the lowest consumption in the region. There is no national power grid, and rural consumers as well as industries frequently use costly generators to ensure an uninterrupted supply. Several noteworthy reforms have been made in the past few years, including formation of EdC as a limited liability company owned by MIME and MEF, and commercialization of EdC s operations including preparation of audited financial statements. Considerable progress has also been made on an Electricity Law creating a sector regulator, which is scheduled for presentation to the National Assembly in 2000. However, EdC s financial position is a serious potential impediment to long-term development of the electricity supply and ADB s continued participation.