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2015/16 Knowledge Sharing Program with Cambodia 2015/16 Knowledge Sharing Program with Cambodia Sharing Program 2015/16 Knowledge 2015/16 Knowledge Sharing Program with Cambodia: Knowledge Sharing on Cambodia’s Social Overhead, Human Capital, and Housing Development: Korea’s Experience and Policy Recommendation 2015/16 Knowledge Sharing Program with Cambodia 2015/16 Knowledge Sharing Program with Cambodia Project Title Knowledge Sharing on Cambodia’s Social Overhead, Human Capital, and Housing Development: Korea’s Experience and Policy Recommendation Prepared by Korea Development Institute (KDI) Supported by Ministry of Strategy and Finance (MOSF), Republic of Korea Prepared for Royal Government of Cambodia (RGC) In Cooperation with Ministry of Economy and Finance (MEF) Program Directors Siwook Lee, Executive Director, Center for International Development (CID), KDI Ildong Koh, Senior Research Fellow, CID, KDI Program Officers Min Je Joo, Research Associate, Division of Policy Consultation & Evaluation, CID, KDI Eunsong Kim, Research Associate, Division of Policy Consultation & Evaluation, CID, KDI Senior Advisor Kyung-Wook Hur, Former Ambassador of Organization for Economic Cooperation and Development (OECD) Project Manager Euiyoung Shon, Professor, University of Seoul Authors Chapter 1. Euiyoung Shon, Professor, University of Seoul Chapter 2. Jae-young Son, Professor, Konkuk University Sophak Chea, National Economist, Ministry of Economy and Finance Phal Dana, Officer, Ministry of Land Management Urban Planning and Construction Chapter 3. Se-Yeoung Chun, Professor, Chungnam National Univeristy Chapter 4. Jai-Joon Hur, Research Fellow, Korea Labor Institute Government Publications Registration Number 11-1051000-000688-01 ISBN 979-11-5932-120-7 94320 ISBN 979-11-5932-117-7 (set) Copyright ⓒ 2016 by Ministry of Strategy and Finance, Republic of Korea Government Publications Registration Number 11-1051000-000688-01 2015/16 Knowledge Sharing Program with Cambodia: Knowledge Sharing on Cambodia’s Social Overhead, Human Capital, and Housing Development: Korea’s Experience and Policy Recommendation Preface In the 21st century, knowledge is one of the key determinants of a country’s level of socio-economic development. Based on this recognition, Korea’s Knowledge Sharing Program (KSP) was launched in 2004 by the Ministry of Strategy and Finance (MOSF) and the Korea Development Institute (KDI). KSP aims to share Korea’s experience and knowledge with partner countries to achieve mutual prosperity and cooperative partnership. Former high-ranking government officials are directly involved in the policy consultation to share their intimate knowledge of development challenges, and to complement the analytical work of policy experts and specialists who have extensive experience in their fields. The government officials and practitioners effectively pair up with their counterparts in the development partner countries to work jointly on pressing policy challenges and share development knowledge in the process. The program includes policy research, consultation and capacity-building activities, all in all to provide comprehensive and tailor-made assistance to the development partner countries in building a stable foundation and fostering capabilities to pursue self-sustainable growth. In 2015, policy consultation and capacity building workshop were carried out with 26 partner countries covering over 100 research agendas. As a new partner, Nicaragua and Viesegrad Group were selected in consideration of the country’s policy demand, growth potential, and strategic economic partnership. The 2015/16 Knowledge Sharing Program with Cambodia was carried out with the aim of exchanging socio-economic development experience of two countries for improving Vietnam’s policy making capacity and achieving her socio-economic development. Under the MOU signed between the Ministry of Strategy and Finance of Korea and the Ministry of Economy and Finance the joint research and seminars were conducted in order to support the establishment of “Knowledge Sharing on Cambodia’s Social Overhead, Human Capital, and Housing Development: Korea’s Experience and Policy Recommendation.” I would like to take this opportunity to express my sincere gratitude to Senior Advisor H.E. Dr. Kyung-Wook Hur, Project Manager Prof. Euiyoung Shon, as well as the project consultants including Pro. Jae-Young Son, Pro. Se-Yeoung Chun, and Dr. Jai-Joon Hur for their immense efforts in successfully completing the 2015/16 KSP with Cambodia. I am also grateful to Executive Director Dr. Siwook Lee, Program Director Dr. Ildong Koh, and Program Officers Ms. Min Je Joo and Ms. Eunsong Kim, and all members of the Center for International Development, KDI for their hard work and dedication to this program. Lastly, I extend my warmest thanks to the Cambodian counterparts, the Vietnam Institute for Development Strategies and Ministry of Science and Technology and other related agencies, program coordinators, and participants for showing active cooperation and great support. In your hands is the publication of the results of the 2015/16 KSP with Cambodia. I believe that KSP will serve as a valuable opportunity to further elevate mutual economic cooperation of Vietnam and Korea to a new level. I sincerely hope the final research results on the selected areas could be fully utilized to support Cambodia and achieving economic development goals in the near future. Joon-Kyung Kim President Korea Development Institute Contents 2015/16 KSP with Cambodia ................................................................................................. 016 Executive Summary ............................................................................................................. 019 Chapter 1 Infrastructure Financing Improvement in Cambodia Summary .......................................................................................................................... 030 1. Introduction ............................................................................................................ 032 1.1. KSP Program in Cambodia .................................................................................... 032 1.2. Surveys and Workshop ......................................................................................... 033 1.3. Purpose of the Work ........................................................................................... 033 2. Infrastructure Financing in Cambodia .......................................................................... 034 2.1. Current Situation of Infrastructure ......................................................................... 034 2.2. Infrastructure Planning System and Plans ................................................................ 038 2.3. Infrastructure Financing in Cambodia ..................................................................... 043 3. Infrastructure Financing in Korea ................................................................................ 052 3.1. Infrastructures with Economic Development ........................................................... 052 3.2. Infrastructure Planning System .............................................................................. 053 3.3. Infrastructure Financing ....................................................................................... 056 4. Recommendations .................................................................................................... 079 4.1. Centralized Project Management by Finance Ministry ............................................... 079 4.2. Mobilization of Domestic Financing Sources ............................................................ 080 4.3. Public Corporation in the Road Sector .................................................................... 081 4.4. PPP under Proper Framework ............................................................................... 082 4.5. Land Value Capture ............................................................................................. 083 References ........................................................................................................................ 084 Chapter 2 Housing Policy for Low Income and Vulnerable People in Phnom Penh Summary .......................................................................................................................... 086 1. Introduction ............................................................................................................ 088 2. General Trends and Status of Phnom Penh Housing Market ............................................. 090 2.1. Cambodian Economy and Demography .................................................................. 090 2.2. Phnom Penh Population, Households, Income, and Migration .................................... 092 2.3. Housing Stock, Supply, Conditions, and Prices and Rents ............................................ 096 2.4. Housing Condition of Low-Income Households in Phnom Penh .................................. 098 3. Cambodia’s Housing Policies and Housing Problems in Phnom Penh ................................. 100 3.1. Social Land Concession ........................................................................................ 100 3.2. Circular No. 3 on Squatter Settlement Resolution ..................................................... 101 3.3. The National Policy on Housing ............................................................................. 102 3.4. Bottlenecks in Housing Supply .............................................................................
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