Mechanism of Loan , Credit Union and Savings Association

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					      Building Institutional Capacity - Cambodia
          Credit Union Foundation Australia
                      Version 1.0
               Project Plan 2010/2011

[ONE YEAR EXTENSION OF THE ORIGINAL PROGRAM 2007 - 2010]
Contents


1. Executive Summary .......................................................................................... 3
2. Background ...................................................................................................... 6
  2.1 Country ....................................................................................................... 6
  2.2 Cooperatives in the country............................................................................ 8
  2.3 The Credit Union Movement in the country ....................................................... 8
  2.4 CUFA In-Country Strategy.............................................................................. 9
3. Partner Profile ................................................................................................ 10
4. Problem Statement ......................................................................................... 11
  4.1 Problem Statement ..................................................................................... 11
5. Project Description .......................................................................................... 12
  5.1 Project Description ...................................................................................... 12
  5.2 Strengthening Credit Union Capacity ............................................................. 13
  5.3 Scaling up the Credit Union Movement ........................................................... 13
  5.4 Government Relations ................................................................................. 14
  5.7 Other Capacity Building mechanisms ............................................................. 14
  6. Project Results ............................................................................................. 15
  6.1 Goal ......................................................................................................... 15
  6.2 Project Purpose .......................................................................................... 15
  6.3 Roles and Responsibilities ............................................................................ 15
7. Project Reach ................................................................................................. 16
8. Outputs, Indicators and Measurement ................................................................ 17
9. Risk Management Analysis ............................................................................... 21
10. Activities ...................................................................................................... 24
11. Contribution to Cross Cutting Issues ................................................................ 28
  11.1 Social ...................................................................................................... 28
  11.2 Human .................................................................................................... 28
  11.3 Environmental .......................................................................................... 29
  11.4 Financial .................................................................................................. 29
  11.5 Physical ................................................................................................... 29
  11.6 Rural development .................................................................................... 29
  11.7 Gender .................................................................................................... 30
  11.8 Peace Building .......................................................................................... 30
  11.9 Youth ...................................................................................................... 31
12. Monitoring .................................................................................................... 31
13. Evaluation .................................................................................................... 32
14. Project Mapping ............................................................................................ 33
15. Project Budget .............................................................................................. 36
16. Exit Strategy ................................................................................................ 37




                                                                      CUFA BIC Project Plan - Page 2 of 37
1. Executive Summary

The „Building Institutional Capacity‟ program has been delivered for three
years in Cambodia from 2007 - 2010.

The overall goal of this project was to provide technical assistance to
individual community finance organisations (including: CCFIN, SEDOC, CUCA,
CCFIN, and FLIFLY) with the intention of building capacity and trust in these
organisations and supplying their staff with the skills they need to achieve
financial sustainability and work towards becoming a representative credit
union league/federation. A course comprising eight modules was developed
and delivered based on a cascading model to a group of credit union
representatives who then had the responsibility to deliver the same training
in the field.

In the second year of delivery CUFA completed the course of eight modules
with the five initial groups. During the year FLIFLY (Farmer‟s Life
Improvement Foundation for Life and Youth) commenced partnership with
CUFA and their members were included in the training program. CUFA held a
stakeholder workshop in March 2009 with representatives from CCFIN, CUCA,
SEDOC, FLIFLY and CCSF attending. The objective of the workshop was to
gain stakeholder feedback and ideas on the direction of the training for the
2009/10 financial year. CUFA presented feedback that had been collected
from the field and workshop evaluations for discussion. The majority of the
group wanted the training to continue in Phnom Penh, rather than
considering a field based model. It is noted that the group also requested
that the participant per diem be increased. The training model for 2009/2010
was therefore been based on the requests of our stakeholders.

In the third year of delivery (2009/2010) CUFA employed a local, rather than
expat trainer, to deliver the training program. A reduction on the reliance on
expat staff members promoted the long term sustainability of the program.
The program continued to operate on a cascading model with an objective to
reach an additional 10,400 people in the field (i.e. each participant on-trained
a minimum of 20 people at the conclusion of each module). Partner
organisations were encouraged to send new participants from savings banks
that had not previously had access to the training. All participants were
provided with an agreement to sign in relation to attendance and provision of
on-going field training. Equal numbers of males and females attendees was
encouraged as well as a diversity of attendee savings bank roles. Participants
completed four of the eight modules, voted by the members groups as
priorities.

This project worked towards:

   1. Strengthening credit union capacity




                                               CUFA BIC Project Plan - Page 3 of 37
   2. Strengthening the capacity of member organisations including: CCFIN
      SEDOC CUCA CCSF and FLIFLY
   3. Promoting the profile and sustainability of the credit union movement
   4. Participating in collaborative affiliations and information exchange with
      partner organisations

The desired project outcomes of the project are -
      Increased capacity and sustainability of credit unions, including an
      increase in savings, loans and membership.
      The development of a strong supervisory and support mechanism for
      credit union members
      The creation of new credit unions to service the rural poor and
      increase inclusion in the financial sector
      Increased participation of women in credit union management and
      financial decision making
      Regular communication with local NGOs and overseas aid
      organisations to increase productivity within programs, synergise
      linkages, decrease overlap and increase reach.

In January 2010 an exercise of Due Diligence was carried out in cooperation
with FLIFLY, as a member organisation, and their credit union networks in
both Kandal and Kampong Thom. The findings indicate that despite
participating in the CUFA BIC training workshops, information learnt from the
training were not being implemented at the credit union level. Some of these
findings included:

      There were inaccuracies and inconsistencies in the financial record
      keeping. There was significant variances in figures between the FLIFLY
      computer summaries for each credit union and the general ledger
      numbers;
      There were no clear definitions anywhere indicating the terms and
      conditions for each of the product alternatives - voluntary savings,
      compulsory savings and share capital - nor an explanation of which
      was the appropriate product for members;
      There was an absence of written policies confirming loan eligibility
      requirements, loan terms, maximum loan size, risk considerations
      (e.g. loan concentration), acceptable loans types, and collateral
      requirements;
      No member register in existence; and
      A lack of standardisation with inconsistencies in practices between
      credit unions.

While CUFA has not conducted Due Diligence with CCFIN, SEDOC, CUCA, or
CCSF, it is likely that some of the same gaps (as well as others) may also be
evident in their operations.

Given the evidence gathered in the field and the apparent lack of
implementation of new practices following the training, rather than


                                              CUFA BIC Project Plan - Page 4 of 37
continuing with more Phnom Penh training provision, it is imperative that the
instruction received in the first three years across the modules be witnessed
to be successfully implemented at the credit union level.

The BIC Program will therefore be extended by one year in 2010/2011 to
allow CUFA‟s Trainer/Technical Assistant to visit credit unions in the field
from each of the representative member organisations:
      To conduct a review of their integration of material learnt from the
       modules delivered;
      To determine their support needs relating to these modules; and
      To deliver on-site implementation assistance to the savings bank from
       a suite of support tools relating to each of the modules.

CUFA has already established cooperation from FLIFLY to work in the field
with their head office and credit union network to ensure that material from
each of the modules has been implemented into the credit union operations.
This in-field support will be extended to the other partner organisations:
SEDOC, CCFIN, CUCA, and CCSF; to assist in the capacity building of their
member credit unions.




                                             CUFA BIC Project Plan - Page 5 of 37
2. Background

2.1 Country [updated 2010/2011]
           Area                             Cambodia
11         Official Name                    Kingdom of Cambodia
22         Capital                          Phnom Penh
33         Area                             181,040 sq km
44         Border Countries                 Laos 541 km, Thailand 803 km, Vietnam
                                            1,228 km
55         Language Groups                  Khmer
                                            English
                                            French
66         Major Religion                   Buddhist -95%
                                            Muslim – 3%
                                            Christian -2%
77         Population                       14,805,000
88         Population Growth (annual %)     1.6%
99         Population Distribution          22:78
           Urban : Rural
1010       Human Development Index          0.593
           ( the relationship between       137 / 182
           income and well-being)
1111       Human Poverty Index:             21.2%
                                             79 /135
1212       Corruption Perceptions Index     2.0 / 10

           The CPI score indicates the      Rank 158/180
           perceived level of public-
           sector    corruption in   a
           country/territory.

1313       Human Rights Issues 2008-        Impunity
           2009
                                            Inadequate rule of law


1
  http://en.wikipedia.org
2
  ibid
3
  ibid
4
  ibid
5
  ibid
6
  ibid
7
  http://unstats.un.org/unsd/demographic/products/socind/population.htm
8
  ibid
9
  http://unstats.un.org/unsd/demographic/products/socind/hum-sets.htm
10
   http://hdr.undp.org/en/statistics/
11
   ibid
12

http://www.transparency.org/policy_research/surveys_indices/cpi/2009/cpi_2009_ta
ble
13
   http://report2009.amnesty.org/en/regions/asia-pacific




                                               CUFA BIC Project Plan - Page 6 of 37
                                            Forced evictions

                                            Human rights defenders and community
                                            activists imprisoned on baseless charges
1414      Literacy                          76.3%
          Adult Literacy Rate (%ages 15
          years and above)
          Male: Female
1515      Life    Expectancy    at  Birth   60.6
          (years)
1616      Fertility                         3.0
          (%age)
1717      Maternal      Mortality    (per   540
          100,000 live births)
1818      Under 5 Mortality                 89
          (number of infants dying/
          1,000)
1919      Total Unemployment of Adults      7%
          over 15 years (%age)
2020      Economic Activity Rate for 15     79%
          years above (%age)
2121      GDP (per capita. $USD)            $769
2222      GDP (2008 USD$ Billions)          9.4 billion
2323      %age of GDP:
          Agriculture                       34.6
          Industry                          23.9
          Manufacturing                     16.4
          Services                          41.5
2424      Population living on less than    68.2%
          USD $2 /day %age (2007)
2525      Population living below the       35%
          poverty line (less than USD $1
          / day) %age (2009)
2626      Improved      drinking   water    62: 19
          coverage     Urban     :  Rural
          (%age)


14
   http://hdr.undp.org/en/statistics
15
   ibid
16
   http://unstats.un.org/unsd/demographic/products/socind/childbearing.htm
17
   ibid
18
   http://unstats.un.org/unsd/demographic/products/socind/health.htm
19
   http://unstats.un.org/unsd/demographic/products/socind/unemployment.htm
   http://unstats.un.org/unsd/demographic/products/socind/inc-eco.htm
20

21
   ibid
22

http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/0,,contentMDK:205
35285~menuPK:1192694~pagePK:64133150~piPK:64133175~theSitePK:239419,0
0.html
23
   ibid
24
  ibid
25
   ibid
26
   http://unstats.un.org/unsd/demographic/products/socind/watsan.htm


                                                  CUFA BIC Project Plan - Page 7 of 37
2.2 Cooperatives in the country
The Cambodian financial sector is underdeveloped, lacking rural development
banks and limited by a weak rural finance network. The 17 commercial and
specialised banks in Cambodia only operate in Phnom Penh and the major
provincial towns (CUFA Sustainability Report 2006). The development of
regular commercial lending activities has been constrained in rural areas by
the high costs of operations, the inability to verify and enforce property
rights, and the low level of economic activity (ARCM 2006). The
overwhelming majority of rural people have almost no access to formal forms
of financial services.

There are a number of microfinance service providers in Cambodia, but
because many offer similar products in the same area they are competing
with each other for members (ARCM 2006). In the rural areas there are
virtually no branches of banking institutions. Because of this most savings
and loan MFIs operate in urban and easily accessible rural areas and their
outreach is limited in more remote, rural regions (ARCM 2006).

According to the Asia Resource Centre for Microfinance (ARCM) there are
twelve main players in the market in Cambodia each holding more than Riel
1 billion (US$250,000) in outstanding loans and having more than 5,000
clients (2006). The main microfinance providers are:

     ACLEDA (Association of Cambodian Local Economic Development
     Agencies) Bank
     PRASAC (Programme de Rehabilitation et d'Appui au Secteur Agricole du
     Cambodge) MFI
     AMRET
     Cambodian Entrepreneur Building (CEB)
     Thaneakea Phum (Cambodia) Ltd (TPC)
     Hattha Kaksekar Ltd (HKL)
     Seilanithih
     CREDIT
     AMK (Angkor Mikroheranhvatho (Kampuchea)
     Vision Fund
     CCSF (Cambodian Community Savings Federation)
     Maxima
     Credo


2.3 The Credit Union Movement in the country
In Cambodia, microfinance is heavily supported by donor organisations and it
remains credit driven. In general credit portfolios are still financed by
external donors or investors, and not by depositors (ARCM 2006).
Trust and sustainability are two major hurdles in viability for financial
institutions in Cambodia. During the Khmer Rouge regime neighbours and
family members were encouraged to spy and report offences that included
owning a business and saving money (Matthews 2005). By both demonizing


                                              CUFA BIC Project Plan - Page 8 of 37
savings and business practices and destroying trust within the social
framework of villages, the finance sector has been affected. Additionally,
poor banking regulation after the fall of the regime and an influx of poorly
executed micro credit schemes have further eroded the trust of Cambodians.
Poor and corrupt banking practices have left depositors without their savings
as banks opened and closed, deteriorating consumer confidence and trust in
financial institutions (ARCM 2006). Microfinance programs in the country
have been largely credit driven rather than building up the capacity of their
clients and the institutions themselves. This created a dependency cycle for
participants, which in turn depleted the resources of the program causing
some programs to withdraw from the country, leaving those who did save
and those who became dependent on the program with nothing. In order for
a financial program to be viable in a region, an effort to show sustainability
and institution building must be part of the strategy to win back the trust of
the local people (Matthews 2005). The past twenty years has seen the
emergence of village-based community finance institutions (CFI‟s) all over
rural Cambodia. Many of these institutions were developed with the help of
national and international NGO‟s who were strong advocates of micro credit,
but neglectful of institutional building. A study undertaken by the
Consultative Group to Assist the Poorest (CGAP) claims that institutional
building is the key to successful and sustainable CFI development. CGAP
identified the following issues as being the greatest encumbrance in CFI
institutions (Matthews 2005):

   •   Lack of auditing systems
   •   Limited reporting systems
   •   Lack of trust among people
   •   Weak book-keeping capacity
   •   Lack of clarity in roles and responsibilities of managers and directors of
         CFIs

CFI‟s today struggle to professionalise and expand (increase membership) as
rural people remain wary of the competence of CFI management and staff.
This contributes to the overall distrust of the CFI movement.

As mentioned above, an in-field analysis completed in January 2010 of
FLIFLY and the systems and operations in place following the CUFA training,
suggests that more on-site credit union implementation support is needed.
In-field support provides the benefit of leveraging off the training already
delivered to ensure that best practices are implemented across the credit
union movement.


2.4 CUFA In-Country Strategy
CUFA developed the Building Institutional Capacity Program in Cambodia to
promote and grow the local credit union movement (i.e. the CFIs). A part of
the training was to develop the skills of the participants themselves as
trainers so that there was a clear path of information transfer to people in


                                                 CUFA BIC Project Plan - Page 9 of 37
the local villages, thus dramatically increasing the reach of the training
program and ensuring the implementation of the key concepts and best
practice strategies. However the analysis of the systems and operational
procedures of FLIFLY, as an example, has demonstrated that this information
has unfortunately not successfully infiltrated through to the day to day
operations at a credit union level.

In 2010/2011 CUFA‟s BIC Project Officer will work in the field with individual
credit unions, in cooperation with their member organisations, to assist with
the practical implementation of the material learnt in the training modules
delivered over the first three years of the program.

There are five member organisations: CCFIN, FLIFLY, SEDOC, CUCA, and
CCSF. Over the course of 12 months a total of 72 support visits would be
made (2 days per visit). To respect the program participation rates over the
past three years from each of the five member organisations the following
number of support visits is proposed for each organisation:

           CCFIN [42] SEDOC [13] FLIFLY [6] CUCA [6] CCSF [4]

It is noted that should any organisation not wish to participate their support
day allocation would be distributed to the remaining member groups.

The CUFA BIC Project Officer will have a detailed implementation plan to
work through (See Appendix A), and a suite of support tools to aid
implementation of those concepts.

3. Partner Profile

CUFA work in partnership with the following four organisations:
     Cambodia Community Finance Network (CCFIN)
     Canadian Co-operative Association (CCA)
     Social and Economic Development of Cambodia (SEDOC)
     Association of Asian Confederation of Credit Unions (ACCU)
     Farmer‟s Life Improvement Foundation of Life and Youth (FLIFLY)
     CUCA
     CCSF

Over the course of the project CUFA has also developed a relationship with
the National Bank of Cambodia with the hope of working towards developing
Credit Union Law in Cambodia.




                                              CUFA BIC Project Plan - Page 10 of 37
4. Problem Statement

4.1 Problem Statement

During a June 2007 monitoring visit to Cambodia, CUFA attended the Annual
General Meeting (AGM) of the Cambodian Community Finance Network
(CCFiN) to gain a better understanding of the work and mission of CCFiN.
CCFiN was developed in 2004 and is an action-learning network for
Cambodia‟s community finance institutions (CFI‟s). CCFiN‟s mission is to
strengthen the capacity of over forty CFI member associations and networks
and move them towards sustainable community finance institutions (CFI‟s).
This is done through financial training sessions, auditing, policy research and
action. CCFiN is in an “embryonic” stage of development where they are still
learning and growing. Member CFI‟s also appear to be in an early
development stage and have expressed the need for more training and
technical assistance in basic areas such as bookkeeping, financial reporting
and management skills. CCFiN has developed a three-year plan that has
been approved and accepted by members; however, they lack the funding
and human resources that are necessary to achieve all of their objectives.
These objectives include, but are not limited to, increasing membership and
staff, increasing capital, providing technical assistance to management,
developing a standardisation of reporting and policy procedures, and, most
importantly, building trust between members and management.

CUFA also held meetings with two representatives from the Canadian Co-
operative Association (CCA) in an effort to expand its partnerships in
Cambodia. CCA currently provides funding to CCFiN to support their
operational costs. Through discussion with CCFiN‟s Coordinator and CCA
representatives, CUFA has agreed to enter into a partnership with both
organisations. It was made clear to CUFA that technical assistance is in dire
need among CCFiN‟s member associations and networks. Quality technical
assistance will build capacity in the member associations and provide them
with the skills needed to build trust among members and provide quality
financial services.

Since the initial meeting and partnership with CCFIN, the same technical
assistance was also identified as a need and sought by CCSF, CUCA, FLIFLY,
and SEDOC. CUFA has provided training, and funded attendance to this these
training workshops, to members from all interested organisations and an
MOU has been put in place to represent and support the cooperative nature
of the working partnership with each organisation.




                                              CUFA BIC Project Plan - Page 11 of 37
5. Project Description

5.1 Project Description
The Cambodia Credit Union Outreach Program: Building Institutional Capacity
was initially a three-year project funded by CUFA with in-kind contributions
from the CCA. CUFA has allocated approximately AUD$110,000 for 2010-
2011. This money will be used to provide in field support to ensure the
implementation of training information, and employ a local Project
Coordinator, a Technical Assistant in the second half of the year, and an
administration assistant. The project will also make a contribution to the
lease and maintenance of the office and training centre as well as the office
resources and auxiliary staff.

The overall goal of this project was to provide technical assistance to
individual community finance organisations with the intention of building
capacity and trust in these organisations and supplying them with the skills
they need to achieve financial sustainability and work towards becoming a
representative credit union or credit union league/federation. To ensure that
the capacity of staff and operational practices has indeed improved as a
result of the training, it is necessary to provide on-site implementation to the
credit unions who have been involved in the training program. All partner
organisations will be consulted through the support planning process of the
program and all data collected will be made available to respective member
organisations.

The project budget allows for 72 (144 support days) implementation support
visits for 2010/2011 giving all partner organisations an opportunity to receive
implementation support. Each support session will last 2 days and will occur
on average six times a month with key staff and board members of the credit
union in attendance. The idea of the program was to train key
representatives from within local savings banks so they can go back to their
communities and deliver training to their own staff. By providing CFI leaders
with this technical assistance we are developing their management
capabilities, which will in turn help professionalise their CFIs and strengthen
the abilities of their staff to provide members with reliable services and
trustworthy leaders. The Community Finance Sub-Sector Blueprint (2006)
identifies inadequate capabilities among CFI practitioners/leaders as being a
major problem in developing the overall community-based financial system.
The Blueprint (and CCFIN staff) identifies the following training components
as being the most in-demand among CFI leaders:

          Training and technical assistance for CFI leaders and practitioners
          Cash management and cash security services
          Audit and the management of fraud
          The importance of savings mobilisation
          Leadership and financial management training of CFI practitioners
          Earning and maintaining trust of members
          Financial literacy of women


                                              CUFA BIC Project Plan - Page 12 of 37
          Cash flow forecasting
          Business Planning and Implementation
          Governance and management of CFIs (rules and best practice)
          International Credit Union Operating Principles
          Credit union education: the implementation of common standards
          of practice
          Micro enterprise activities: encouraging village entrepreneurship,
          especially among women
          Promoting women‟s leadership roles

The training received 2008-2010 addressed a number of these identified
needs. The purpose of the 2010/2011 phase of the project is to observe the
increased professionalism of the credit union movement following the training
received and assist with the implementation of strategies and information
that formed part of the Building Institutional Capacity Program, in
cooperation with credit union staff.

5.2 Strengthening Credit Union Capacity

Matthews (2005) states that there is a legacy of distrust casting a long
shadow over any efforts to build institutions in Cambodia. To strengthen and
build the capacity of credit unions in Cambodia it is therefore imperative that
the issue of trust is addressed. Matthews strongly believes that without
building a strong connection between people, institutions, and trust; savings
will remain hidden in the home (e.g. in bamboo poles) or alternatively tied up
in high risk strategies like livestock and gold.

Trust is therefore integral to the success of strengthening the credit union
capacity in Cambodia. Trust may be achieved in two ways. Firstly, by
increasing knowledge and education surrounding credit unions so that people
understand the benefits a credit union may bring to the local community and
also how the credit unions should be structured, operated, and governed.
Secondly, it may be achieved by encouraging the infiltration and
implementation of this knowledge and education into the credit unions
operating across Cambodia. When people understand the framework put in
place by savings banks to protect their money and they can see that their
local savings bank is indeed transparent in all that they do, this will work
towards building a connection between people, institutions, and trust. Trust
will lead to increased membership and increased member savings.

The Building Institutional Capacity Program is designed to provide this
education and to encourage the implementation of this education to achieve
best practice democratic operating principles within Cambodian credit unions.

5.3 Scaling up the Credit Union Movement
The credit union movement in Cambodia comprises a number of volunteers.
Many of the credit union staff, committee members, and board directors
receive no salary for their work and their time commitment. At best they


                                             CUFA BIC Project Plan - Page 13 of 37
receive a small commission based on the total member savings at six month
intervals.

To professionalise the credit union movement in Cambodia it is imperative
that people who work for their local credit union get remunerated for their
labour. The receipt of remuneration formalises the work arrangement and
instils responsibilities that may be monitored by the workplace. The capacity
to provide salaries to all staff members will only be possible with the growth
of credit unions, both in members and savings.

Credit Unions in Cambodia currently only provide savings and loans. As a
financial institution there is capacity for the provision a more sophisticated
menu of product offerings, similar to those offered by more developed credit
unions around the world. The Cambodian credit union is in its early stages
but with good foundations as it develops it will have the capacity to grow and
in time provide a wide range of services to consumers.

5.4 Government Relations
To develop credit union law, currently lacking in Cambodia, it is appropriate
to partner with the National Bank of Cambodia rather than a government
department (as discussed below). In time however, once credit union law is
established, it will be appropriate to work with suitable government
departments to seek a regulatory body to oversee and supervise the new
law.

CUFA continues to attempt to register as an NGO in Cambodia and have been
following requirements of the Cambodia government departments over the
past 36 months to be successful and be recognised as an NGO. It is believed
that with NGO status CUFA‟s training program will have a higher local profile
and may have an increased ability to establish cooperative relationships with
other local NGO to share ideas, information, and resources for the benefit of
training participants.


5.7 Other Capacity Building mechanisms
The National Bank of Cambodia is the central bank of Cambodia. It is the
body that regulates financial institutions such as banks and microfinance
institutions. In order to strengthen the banking system and to protect public
interests, the Banking Supervision Department has duties of supervising and
monitoring banking and financial institutions‟ compliance with prudential
regulations through reviewing financial statements to detect any illegal
transactions. At present, there is no regulation for credit unions (called
Village Banks or Community Finance Organizations or Community Based
Financial Institutions).

CUFA will continue work with the National Bank of Cambodia with the support
of ACCU and partner organisations to lobby for and develop credit union law
in Cambodia. The establishment of credit union law in Cambodia will provide


                                             CUFA BIC Project Plan - Page 14 of 37
an external regulatory framework that is currently missing for the
development of governance in the Cambodian credit union movement. The
establishment of external governance for credit unions will further assist to
build trust between the local villages and the savings banks. The
achievement of increased trust will encourage increased membership and
savings.


6. Project Results

6.1 Goal
The goal of this project is to build a strong, sustainable credit union
movement in Cambodia that will broaden the access of financial services to
rural communities and will reflect the International Credit Union Operating
Principles.


6.2 Project Purpose
The purpose of the program is to strengthen the institutional and human
capacity of primary grassroots financial organisations.


6.3 Roles and Responsibilities
Credit Union Foundation Australia will provide:

      Provision of an appropriate Project Coordinator and Technical Assistant
      (in the second half of the financial year) to the project
      Provision of suitable learning materials and resources
      Funding of suitable admin assistant for program implementation
      Provision of funding for program implementation
      Provision of monitoring and evaluation of project

CCFIN, SEDOC, CUCA, CCSF, FLIFLY will provide:

      Provision of cooperative information in relation to policies and
      procedures, financial information, and member details
      Cooperation in the development of training materials for the „Building
      Institutional Capacity Program‟
      Training and support to members in various provinces in Cambodia

Association of Asian Confederation of Credit Unions (ACCU) will provide:

      Support and partnership to strengthen and promote credit unions as
      effective instruments for socio-economic development of people




                                              CUFA BIC Project Plan - Page 15 of 37
7. Project Reach
The program reach is primarily four-fold:

Project Reach                     Description
Credit unions directly            CUFA will be able access the operating
benefiting/participating          credit unions and train relevant staff and
                                  members in governance, member
                                  promotion, savings mobilisation and
                                  good lending practises. This will result in
                                  more sustainable institutions that have
                                  the capacity to attract new members and
                                  increase their savings and loans
                                  portfolios.
                                  2010/2011 Following the provision of
                                  training, CUFA will support credit unions
                                  in the implementation of materials to
                                  ensure that it reaches the operational
                                  practices.
Rural Communities where           The rural communities where local credit
credit unions operate             unions operate will directly benefit from
                                  the strength of their local savings bank.
                                  The more profit that the bank achieves
                                  the more social good that can be
                                  contributed to the community by way of
                                  building bridges, funding schools, helping
                                  the poor, and providing emergency
                                  money to people where needed.
Building Institutional capacity   CUFA will provide implementation
                                  support to partner organisation staff to
                                  increase capacity and improve their role
                                  as a service provider. The strengthened
                                  organisations will be able to provide
                                  better training and support to their
                                  members. This will create a stronger
                                  institutional environment that will assist
                                  to attract new credit unions and
                                  members to the movement.
Women‟s participation in          CUFA training will facilitate the
financial decision making         representation of women in the financial
                                  sector. In the field, CUFA will work with
                                  local NGOs and gender focal points in
                                  each district to identify women‟s groups
                                  who are seeking to establish a credit
                                  union. This will contribute to the
                                  empowerment of rural women as they
                                  will be able to access CUFA training and
                                  support.


                                             CUFA BIC Project Plan - Page 16 of 37
8. Outputs, Indicators and Measurement

Indicator                                               Project   Period   Period   Period   Period   Period    Period    %
                                                         Start      1        2        3        4         5         6     Change
                                                                                                                         +/-
Refere
       Data Measurement
nce
      1.0 Strengthening Credit Union Capacity to enable them to reach more people especially in the rural areas of
      Cambodia
1.10 Review training materials to ensure
     appropriateness and effectiveness



1.15 2010/2011 Using the training materials from
     the Building Institutional Capacity Program
     2008-2010, develop support materials for
     in-field implementation visits.
1.20 Increase the training provided to
     participants in how to deliver in-field training
     for each module (e.g. development of lesson
     plans)
1.25 2010/2011 Provide direct implementation
     support in the field to ensure that credit
     union day to day operations benefit from the
     material learnt in the training sessions.
1.26 2010/2011 Provide credit union support with
     implementation recommendations and share
     any findings with partner organisations


1.30 Strengthen the involvement of partner
     organisation staff in the
     training/implementation sessions to ensure
     effective transfer of knowledge, skills, and
     ability occurs.



                                                                                                      CUFA BIC Project Plan - Page 17 of 37
1.40 Network with other NGOs providing training
     to savings bank cooperatives in Cambodia to
     provide them support and access to CUFA‟s
     training/implementation program
1.50 Project Monitoring




1.60 Project Evaluation




1.70 Provision of Monthly reports to CUFA




      2.0. Increase the profile and sustainability of credit unions in Cambodia

     Organise an International Credit Union Day
     celebration in Phnom Penh to promote the
2.10
     credit union movement in Cambodia with
     key stakeholders
     Provide promotional material (to be sent by
     WOCCU) to the village savings banks to help
2.20
     them celebrate and promote International
     Credit Union Day
     Work in cooperation with the National Bank
     of Cambodia to have credit unions
2.30
     recognised in the local law by developing
     appropriate parkas
     Provide effective training to strengthen the
2.40 financial sustainability and professionalism
     of existing savings banks.
     Provide effective support strategies in the
     field in 2010/2011 to ensure the successful
2.45 implementation of training material
     delivered in the Building Institutional
     Capacity Program

                                                                                  CUFA BIC Project Plan - Page 18 of 37
       Network with other NGOS to promote the
2.50
       credit union in Cambodia

     Work cooperatively with existing networks
2.60 i.e. WOCCU, ACCU, CCFIN, CCA, FLIFLY,
     CUCA, and SEDOC

        3. Strengthen the efficiency and effectiveness of the Building Institutional Capacity Program - Cambodia


     Conduct evaluations with the training
3.10 participants/credit union staff at the
     conclusion of each training/support session.

     Actively use the feedback provided by the
3.20 participants to continually develop the
     training program

     Implement changes in response to issues
3.30 identified in the evaluations conducted by
     CUFA in July 2008

       Consider feedback provided in evaluations
3.40
       carried out by both SEDOC and CCFIN

     Ensure that the full training capacity is
3.50 delivered (i.e. 1,580 training places)
     throughout the financial year
     Ensure that 72 two-day credit union support
3.55 visits are completed during the 2010/2011
     financial year.
     Increase the transparency and
     professionalism of the program by
3.60
     developing an overall program framework
     and lesson plans for each module.




                                                                                              CUFA BIC Project Plan - Page 19 of 37
       4. Maintain an accurate database of all credit unions receiving implementation support

4.1   Use the database information kept during
      2008-2010 training to identify appropriate
      credit unions to visit and support.
      2010/2011
4.2   Update the database to reflect
      implementation support provided and any
      recommendations made
4.3   Provide access to the database information
      to partner organisations.

       5. To ensure that CUFA is legally licensed to operate as an NGO in Cambodia

5.1   Continue to follow up with Cambodian
      Ministerial Departments to pursue the grant
      of NGO status.




                                                                                                CUFA BIC Project Plan - Page 20 of 37
9. Risk Management Analysis

 Project Name:                 Building Institutional Capacity

                                                                               Risk Ranking/
                                                 Impact on                                                                                            Mitigation
       Output                    Risks                                                                          Indicators         Monitoring
                                                  Program                                                                                             Strategy
                                                                                   Rating




                                                                                    Consequence
                                                                  Likelihood




                                                                                                  Relevance
                                                                  1-5              1-5            1-5
1.0 Strengthening Credit   Social
Union Capacity to enable   Curriculum/training Threatens the         1                 3            1         Feedback provided Project           Continual
them to reach more         materials do not    achievement of                                                 by partner          Coordinator     development of the
people especially in the   address the credit the project goal                                                organisations e.g.                  curriculum/support
rural areas of Cambodia    union's             and purpose                                                    CCFIN and SEDOC                     materials in line with
                           implementation/                                                                    and Evaluation                      learner needs and
                           support needs                                                                      sheets completed                    feedback provided
                                                                                                              by the participants                 from various sources
                           Project Coordinator Delay of project      1                 3            1         Resignation         International   Monthly reports
                           fails to fulfil his/her                                                            submitted by        Projects        submitted by Project
                           job function; or                                                                   Project             Coordinator     Coordinator to help
                           fails to complete                                                                  Coordinator/                        the International
                           the full duration of                                                               Technical                           Project Supervisor
                           their assignment.                                                                  Assistant.                          track progress.
                                                                                                              Feedback from
                                                                                                              training
                                                                                                              participants, and
                                                                                                              partner
                                                                                                              organisations that
                                                                                                              training/support is
                                                                                                              not being delivered
                                                                                                              as required.
                           Technological
                           n/a
                           Economic




                                                                                                                                 CUFA BIC Project Plan - Page 21 of 37
                          Inflationary           Threatens the          2   3   3   Increased inflation International   Ensure that the
                          pressure and           ability to fund                    and movements in Projects           program is run
                          unfavourable           participant places                 the value of the    Supervisor      efficiently and that
                          exchange rates         in the program.                    US dollar                           contingency money is
                          result in reduced                                         comparative to the                  made available for
                          financial capacity                                        Australian dollar.                  such an event.
                          to deliver the
                          project objectives
                          Ecological
                          n/a
                          Political
                          n/a
2. Increase the profile   Social
and sustainability of     Resistance from     Reduced                   1   2   2   Lack of interest to International   Provide
credit unions in          other NGOs to       opportunity for                       develop a           Projects        comprehensive
Cambodia                  share information additional funding.                     cooperative         Supervisor      information about
                          and funding and     Decreased                             relationship                        CUFA and what we
                          work in partnership capacity for                                                              bring to the
                                              resource sharing                                                          cooperative
                                              and cooperation                                                           relationship
                                              from potential
                                              partner
                                              organisations
                          Technological
                          n/a
                          Economic
                          n/a
                          Ecological
                          n/a
                          Political
                          Slow progress in        Lack of external      5   3   3    Lack of progress   Project         Continue to have
                          having credit          governance limits                  to drafting and     Coordinator     contact with the
                          unions                 the opportunity to                 implementing                        National Bank of
                          recognised in          build trust and                    credit union law                    Cambodia
                          banking regulation     grow membership
3. Strengthen the         Social
efficiency and            Lack of                Reduced                2   5   5   Lack of interest to Project         Project Coordinator
effectiveness of the      cooperation from       opportunity for                    develop a           Coordinator     to spend time liaising
Building Institutional    partner                credit unions to                   cooperative                         with partner
Capacity Program -        organisations to       receive                            relationship                        organisations to get
Cambodia                  conduct field visits   implementation                                                         their input and
                          to their credit        support in the field                                                   involvement in the
                          union                                                                                         project.



                          Technological
                          n/a
                          Economic


                                                                                                        CUFA BIC Project Plan - Page 22 of 37
                         n/a
                         Ecological
                         n/a
                         Political
                         n/a
4. Maintain an accurate  Social
database of all credit
unions receiving
implementation support Technological
                        The database may Lost        data     of   3   3   3   Database is lost   Project       Regular back up of
                        be lost in the event support provided                                     Coordinator   computer
                        that the computer
                        is infected by
                        viruses
                        Economic
                        n/a
                        Ecological
                        n/a
                        Political



5. To ensure that CUFA Social
is legally licensed to
operate as an NGO in   Technological
Cambodia
                         Economic

                         Ecological

                         Political
                         CUFA is unable to   Lack of NGO status    3   3   3   Lack of           Project        Continual follow up
                         achieve NGO         may affect our                    confirmation from Coordinator    and timely proviso of
                         status without      ability to form                   the Ministerial                  required documents.
                         providing payment   partnerships with                 Offices and
                         to the government   other NGO                         continued delays
                         to secure           organisations in                  in approving
                         registration.       Phnom Penh.                       CUFA's NGO status




                                                                                                  CUFA BIC Project Plan - Page 23 of 37
10. Activities

    Ref    Description of Activities           Q1   Q2    Q3   Q4    Q5   Q6    Q7    Q8     Q9   Q10 Q11 Q12
                                              Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr- Jul- Oct- Jan- Apr-
                                              Sept Dec    Mar June Sept Dec    Mar June Sept Dec        Mar June
                                             2008 2008 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011
           Strengthening Credit Union Capacity to enable them to reach more people especially in the rural areas of
   1.00
           Cambodia
           Review training material to ensure
   1.10                                               √   √   √   √   √     √    √       √
           appropriateness and effectiveness
   1.15    2010/2011 Using the training materials
           from the Building Institutional Capacity
           Program 2008-2010, develop support                                                   √      √       √      √
           materials for in-field implementation
           visits.
           Increase the training provided to
           participants in how to deliver in-field
   1.20                                               √               √     √    √       √
           training for each module (e.g.
           development of lesson plans)
           Provide direct implementation support
           in the field to ensure that credit union
   1.25                                                                                         √      √       √      √
           day to day operations benefit from the
           material learnt in the training sessions
   1.26    2010/2011 Provide credit union support
           with implementation recommendations
           and share any findings with partner                                                  √      √       √      √
           organisations
           Strengthen the involvement of partner
           organisation staff in the training and
   1.30    implementation support sessions to         √   √   √   √   √    √     √       √      √      √       √      √
           ensure effective transfer of knowledge,
           skill and ability occurs.
           Network with other NGOs providing
           training to saving bank cooperatives in
   1.40                                               √   √   √   √   √     √    √       √      √      √      √       √
           Cambodia to provide them with support
           and access CUFA's training program.

                                                                                     CUFA BIC Project Plan - Page 24 of 37
1.50   Project Monitoring                                  √                                                       √


1.60   Project Evaluation                                        √                                                         √


1.70   Provision of Monthly reports to CUFA       √   √    √     √     √      √       √       √      √      √       √      √

2.00   Increase the profile and sustainability of credit unions in Cambodia
       Organise an International Credit Union
       Day celebration in Phnom Penh to                                       TA in
2.10                                              √   √                                                      √
       promote the credit union movement in                                   Aus
       Cambodia with key stakeholders
       Provide promotional material (to be sent
       by WOCCU) to the village savings banks                                 TA in
2.20                                              √   √                                                     √
       to help them celebrate and promote                                     Aus
       International Credit Union Day

       Work in cooperation with the National
       Bank of Cambodia to have credit unions
2.30                                              √   √    √     √                                   √       √     √       √
       recognised in the local law by
       developing appropriate prakas
       Provide effective training to strengthen
       the financial sustainability and
2.40                                              √   √    √     √      √      √      √       √
       professionalism of existing savings
       banks.
       Provide effective support strategies in
       the field in 2010/2011 to ensure the
2.45   successful implementation of training                                                         √      √       √      √
       material delivered in the Building
       Institutional Capacity Program
       Network with other NGOS to promote
2.50                                              √   √    √     √      √      √      √       √      √      √       √      √
       the credit union in Cambodia
       Work cooperatively with existing
2.60   networks i.e. WOCCU, ACCU, CCFIN,          √   √    √     √      √     √       √       √      √      √       √      √
       CCA, FLIFLY, CUCA, and SEDOC



                                                                                          CUFA BIC Project Plan - Page 25 of 37
3.00   Strengthen the efficiency and effectiveness of the Building Institutional Capacity Program – Cambodia

       Conduct evaluations with the training
       participants/credit union staff at the
3.10                                               √   √   √    √     √     √      √       √
       conclusion of each training/support
       session.
       Actively use the feedback provided by
3.20   the participants to continually develop     √   √   √    √     √     √      √       √
       the training program
       Implement changes in response to
3.30   issues identified in the evaluations        √   √
       conducted by CUFA in July 2008
       Consider feedback provided in
3.40   evaluations carried out by both SEDOC       √   √   √    √     √      √     √       √
       and CCFIN
       Ensure that the full training capacity is
3.50   delivered (i.e. 1,580 training places)      √   √   √    √     √     √     √        √
       throughout the financial year

       Ensure that 72 two-day credit union
3.55   support visits are completed during the                                                    √      √       √      √
       2010/2011 financial year.

       Increase the transparency and
       professionalism of the program by
3.60   developing an overall program               √   √   √    √     √     √      √       √
       framework and lesson plans for each
       module.

4.00   Maintain an accurate database of all credit unions receiving implementation support

4.10   Use the database information kept
       during 2008-2010 training to identify
                                                                                                  √      √      √      √
       appropriate credit unions to visit and
       support. 2010/2011
4.20   Update the database to reflect
       implementation support provided and                                                       √       √       √     √
       any recommendations made

                                                                                       CUFA BIC Project Plan - Page 26 of 37
5.00   To ensure that CUFA is legally licensed to operate as an NGO in Cambodia

       Continue to follow up with Cambodian
5.10   Ministerial Departments to pursue the   √   √     √     √     √      √     √       √      √      √       √     √
       grant of NGO status.




                                                                                      CUFA BIC Project Plan - Page 27 of 37
11. Contribution to Cross Cutting Issues


11.1 Social

The benefits of cooperative community financial institutions is that these
„emerging credit unions‟ are owned and controlled by their members. Credit
unions differ from other financial institutions in that the members who have
accounts with the credit union are the credit union's owners. Members have
the authority over the management of their credit union, and because of the
participatory and empowering approach of mutuality, people are members,
not just customers; however, in Cambodia a major problem is that members
do not feel as though they have ownership over their CFI‟s. As a result of
years of donor dependence and credit-driven programs, members and
management remain unaware of their rights and responsibilities (Matthews
2005).

Investing in institutional capacity in rural Cambodia will help pave the way
for CFI‟s to provide their members with access to safe and affordable
financial services. Rural people have the capability to save; however, they
will only make the choice to save in financial institutions if they are safe and
convenient and management is skilled and shows respect for the rules
(Matthews 2005). This project addresses these core issues because it
provides key management and staff with the skills they (and their members)
have identified as lacking. The overall purpose of this project is to build
institutional capacity in CFI‟s so that members can have a safe and reliable
place to keep their money, and where members trust their management
committees and know their rights. It has been argued that the success of
CFI‟s will rely upon “people, institutions and trust” (Matthews 2005). For too
long, MFI‟s and NGO‟s have focused solely on the distribution of credit, while
their resources should have been invested in training, technical assistance
and overall institutional building.

11.2 Human

Human resource capital will be strengthened through the provision of skills
training and technical assistance by CUFA to staff of cooperatives. This
training and implementation support will also improve member and
community participation through research, training, workshops and forums.
This will result in increased member skill levels, allowing more informed
decision-making in credit union procedures.




                                              CUFA BIC Project Plan - Page 28 of 37
11.3 Environmental

There are no foreseen environmental impacts as a result of the project,
although access to savings and credit has the potential to decrease the rural
population‟s dependence on agriculture as a subsistence income. Problems
of low agricultural yields put additional stress on the environment and access
to loans will improve diversification of production. The loans can be used for
micro enterprise and the community can engage in diversified income
generating projects that do not rely on using environmental resources to
survive.

11.4 Financial

Credit unions are built on mutuality and transparency of accounts and the
technical assistance provided by CUFA will help strengthen governance and
regulatory procedures. This will improve the economic viability of credit
unions as the staff and communities will become equipped with skills that
allow them to implement effective savings mobilisation strategies, attract
new membership and provide more loans. By making money productive
instead of it being stockpiled in the home, a clay pig, or livestock, the
members can earn interest on their savings and accumulate capital for their
community to invest in new enterprise.

11.5 Physical

As membership and savings mobilisation grows, the communities will be able
to invest money in tangible assets including machinery to increase
production, transport to take their produce to the marketplace, and providing
education opportunities for their children or expanding their small business.
Parallel to the credit unions success is an increase in purchasing power
enabling the rise of community infrastructure development.


11.6 Rural development

The communal bond of ownership of their credit union helps to bring
communities together to build a common goal. It has been identified that
rural populations are engaged in subsistence agriculture, have low levels of
literacy and little or no access to financial institutions. Through provision of
training, support and governance mechanisms, existing credit unions will be
strengthened and a conducive environment for the establishment of
emerging credit unions will be created. Current credit union members have
stated that they lack the necessary capacity to improve their services and
expand their membership resulting in them refusing to accept new members
due to lack of confidence about handling more money.           As a result of our
training, the organisations will have the increased confidence to accept more
members and develop their products as the need arises, adding to the



                                              CUFA BIC Project Plan - Page 29 of 37
sustainability of their credit union. Through working with local NGO‟s CUFA
will assess initiatives to include people who have no access to rural financial
services.

Participation in credit unions will allow the rural population to mobilise their
savings in a productive way to benefit the wider community. This will create
opportunities to move away from subsistence and engage in the
establishment of micro enterprise that will be more productive to help
increase their living standards.

During program evaluations CUFA will monitor progress through increased
membership levels, greater savings, the amount of loans granted and the
emergence of new enterprise.

11.7 Gender

The international credit union system has a set of Operating Principles, one
of which is non-discrimination on the grounds of gender. CUFA and its
partners follow this operating principle in all program and project activities,
and design is invariably based on equal opportunity and access for men and
women to participate in training and exposure.

During various visits to CBMIFO‟s and CFI‟s in rural Cambodia, CUFA staff
observed that while women membership was high, the number of women
serving in leadership positions (management and key staff) was often very
low. At the present, CBMIFO‟s have 16,243 women out of a total of 25,220
members. CFI‟s report 25,246 women out of 57,883 members. Women are a
vital part of credit union development in Cambodia (and make up the
majority of CBMIFO/CCFiN members), yet their admittance to leadership
positions is currently limited due to poor literacy skills and access to training
(Matthews 2005). CUFA has designed this project with the condition that
50% of all training participants are women. In addition, a component of the
training curriculum will be gender equality in management/leadership. CFI‟s
have indicated to CCFiN that this component is of great demand and
importance among CFI members.

11.8 Peace Building

Credit union members usually have a common bond that can be based on a
community, organisational, employee or religious affiliation. This common
bond is open to all as there is non-discrimination within membership. The
common bond establishes a degree of mutual accountability amongst the
members that minimises the risk of default on loans, which in turn
encourages active support and a responsible attitude from the members
towards their credit union. 27 . Through the shared experience of watching




                                               CUFA BIC Project Plan - Page 30 of 37
their savings grow and being able to lend money for micro enterprise and
development, credit union members are able to see the beneficial capacity of
their organisation within their communities. As savings mobilisation and
member numbers increase the credit unions provide a sense of
empowerment and community ownership of the development process. This
contributes to trust levels and community cohesion as people are coming
together to create a joint solution to help improve their living standards.

CUFA will monitor the progress of trust building in their credit unions through
speaking with the communities and assessing the numbers of new credit
unions formed, increases in savings and greater membership levels.

11.9 Youth
In 2005 the percentage of the population 15 years and under was calculated
to be 37.6% and by 2015 this percentage is predicted to drop only
marginally to 32.1%, representing almost a third of the total population
(http://hdrstats.undp.org/).

It is imperative that Youth continue to be targeted in CUFA‟s program reach.
The Building Institutional Capacity program includes training and
implementation support focussed on children‟s literacy and the importance of
teaching good savings habits from a young age. Encouraging the
participation of this sector of the population in the financial sector, in
particular in credit unions, will assist to build the ongoing financial
sustainability of communities across Cambodia.


12. Monitoring

Ongoing monitoring of the program will occur four-fold:

        11.2   CUFA will undertake 1-2 monitoring visits during each funding
               year;
        11.3   The Project Coordinator will submit monthly progress reports to
               the International Project Coordinator;
        11.4   The Project Coordinator will provide details of the operational
               practices of credit unions visited and their success in
               implementing strategies learnt in the Building Institutional
               Capacity Program, as well as any support provided.

The CUFA Project Coordinator will conduct continual monitoring to assess
outputs throughout the project cycle. Their monitoring will include assessing




27
     Television Trust for the Environment, 1998




                                                  CUFA BIC Project Plan - Page 31 of 37
the progress of cross cutting themes and implementation of training outputs
in the provinces.


13. Evaluation

CUFA will conduct yearly evaluation studies to assess project outcomes and
measure the impact of their training and the development of identified cross
cutting themes. The evaluation findings will be compared to the initial data
that we have gathered as well as the evaluation carried out in July 2008,
allowing us to assess the ongoing impact of our program on communities.

CUFA will also share these reports with our partners and local NGO affiliates
to enable information exchange and contribute to creating more effective
development programs that provide wider social inclusion and decrease
unnecessary overlap in provision of services.

Our evaluation studies will also be downloadable on our website for all donors
and the general public to access.




                                            CUFA BIC Project Plan - Page 32 of 37
14. Project Mapping

   Ref    Description of Activities                               Activity Goals


          Strengthening Credit Union Capacity to enable them to reach more people especially in the rural areas of
   1.00
          Cambodia
          Review training material to ensure appropriateness
   1.10                                                           Develop training material that will result in the most efficient and
          and effectiveness
                                                                  effective information transfer to the participants.

          2010/2011 Using the training materials from the
                                                                  Develop support materials that        will   be   used   to   support   the
   1.15   Building Institutional Capacity Program 2008-2010,
                                                                  implementation of all six modules.
          develop support materials


          Increase the training provided to participants in how
   1.20   to deliver in-field training for each module (e.g.    Continue the development of the participants as trainers in each and
          development of lesson plans)                          every module rather than in the first training module.

          Provide direct implementation support in the field to
                                                                  Ensure that the material learned in the Building Institutional Capacity
          ensure that credit union day to day operations
   1.25                                                           Program is not only understood but also implemented at the credit
          benefit from the material learnt in the training
                                                                  union level.
          sessions. (2010/2011)

          2010/2011 Provide credit union support with
                                                                  Provide at least 3 implementation support recommendations to each
   1.26   implementation recommendations and share any
                                                                  credit union visited.
          findings with partner organisations


          Strengthen the involvement of CCFIN staff in the
   1.30   training sessions to ensure effective transfer of       Increase the knowledge and competency of CCFIN staff in the training
          knowledge, skill and ability occurs.                    the Building Institutional Capacity Program out in the field


          Network with other NGOs providing training to saving
                                                               Strengthen CUFA's network with other NGO's in Cambodia to ensure
   1.40   bank cooperatives in Cambodia to provide them with
                                                               that the Building Institutional Capacity Program is accessed by as
          support and access CUFA's training program.
                                                               many people as possible.

   1.50   Project Monitoring                                      Monitor the program to ensure that the goals and objectives are being
                                                                  achieved

                                                                                                   CUFA BIC Project Plan - Page 33 of 37
                                                              Conduct an annual evaluation of the program gain feedback from part
1.60   Project Evaluation
                                                              pants of CUFA and those trained by the NGOs to identify areas for
                                                              improvement.

                                                              Provide monthly monitoring reports to CUFA Sydney office so that the
1.70   Provision of Monthly reports to CUFA
                                                              International Projects Supervisor is aware of issues, achievements,
                                                              and tasks for action
2.00   Increase the profile and sustainability of credit unions in Cambodia

       Organise an International Credit Union Day
2.10   celebration in Phnom Penh to promote the credit  Use International Credit Union Day as a promotional opportunity for
       union movement in Cambodia with key stakeholders both CUFA and the credit union movement in Cambodia.

       Provide promotional material (to be sent by WOCCU)
                                                           Use International Credit Union Day as a promotional opportunity for
2.20   to the village savings banks to help them celebrate
                                                           both CUFA and the credit union movement in the rural areas of
       and promote International Credit Union Day
                                                           Cambodia.

       Work in cooperation with the National Bank of
                                                              Achieve external governance structures for credit unions across
2.30   Cambodia to have credit unions recognised in the
                                                              Cambodia by implementing appropriate prakas and then having
       local law by developing appropriate prakas
                                                              government support to regulate these prakas.

       Provide effective training to strengthen the financial
2.40   sustainability and professionalism of existing savings Raise the profile of local savings banks in Cambodia to encourage trust
       banks.                                                 and increased members and savings.

       Provide effective support strategies in the field in
                                                              Provide in the field assistance to ensure that the material learned in
       2010/2011 to ensure the successful implementation
2.45                                                          the Building Institutional Capacity Program is not only understood but
       of training material delivered in the Building
                                                              also implemented at the credit union level.
       Institutional Capacity Program
       Network with other NGOS to promote the credit
2.50
       union in Cambodia                                      Access additional resources through other NGOs in Cambodia.

       Work cooperatively with existing networks i.e.
2.60                                                          Strengthen existing partnerships to work in cooperation together to
       WOCCU, ACCU, CCFIN, CCA, and SEDOC
                                                              achieve similar outcomes and goals.




                                                                                             CUFA BIC Project Plan - Page 34 of 37
3.00   Strengthen the efficiency and effectiveness of the Building Institutional Capacity Program – Cambodia

       Conduct evaluations with the training participants at
3.10                                                         Gain feedback from the participants to assess if training is appropriate
       the conclusion of each training session.
                                                             for leaner needs and learning styles.
       Actively use the feedback provided by the
3.20   participants to continually develop the training      Continually update and adjust the training program to ensure that it is
       program                                               appropriate for learner needs.
       Implement changes in response to issues identified in
3.30                                                         Actively consider the feedback provided by interviewees in the training
       the evaluations conducted by CUFA in July 2008
                                                             program.
       Consider feedback provided in evaluations carried out
3.40                                                         Actively consider issues identified in CCFIN and SEDOC evaluations
       by both SEDOC and CCFIN
                                                             and how comments may be used to improve the program.
       Ensure that the full training capacity is delivered (i.e.
3.50                                                             Deliver the full capacity of training during the financial year (i.e 1,580
       1,580 training places) throughout the financial year
                                                                 days)
       Ensure that 72 two-days credit union support visits
3.55                                                             Deliver the full capacity of support during the financial year.
       are completed during the 2010/2011 financial year.
       Increase the transparency and professionalism of the
3.60   program by developing an overall program                  Standardise the training program so that it easier to be delivered by
       framework and lesson plans for each module.               other trainers (aside from the Project Coordinator).
4.00   Maintain an accurate database of all credit unions receiving implementation support
4.10   Use the database information kept during 2008-2010
       training to identify appropriate credit unions to visit Identify 72 credit unions to benefit from implementation support.
       and support. 2010/2011
4.20   Update the database to reflect implementation
                                                                 Record all credit union implementation visits in the database.
       support provided and any recommendations made
5.00   To ensure that CUFA is legally licensed to operate as an NGO in Cambodia
5.10   Continue to follow up with Cambodian Ministerial
                                                                 Follow up on a fortnightly basis.
       Departments to pursue the grant of NGO status.




                                                                                                  CUFA BIC Project Plan - Page 35 of 37
15. Project Budget
Building Institutional Capacity CAMBODIA
BUDGET YEAR (2010-2011)             July         August       September October       November December January February March          April    May       June      Total
Premises Overheads                                                                                                                                                   $28,506.00
Office Furniture                    $1,500.00                                                                                                                        $1,500.00
Rent (Contribution)                 $980.00      $980.00 $980.00          $980.00     $980.00   $980.00   $980.00 $980.00 $980.00 $980.00 $980.00 $980.00            $11,760.00
Utilities (electricity and water
                                    $420.00      $420.00 $420.00          $420.00     $420.00   $420.00   $420.00 $420.00 $420.00 $420.00 $420.00 $420.00            $5,040.00
and air con)
Internet                            $252.00      $252.00 $252.00          $252.00     $252.00   $252.00   $252.00 $252.00 $252.00 $252.00 $252.00 $252.00            $3,024.00
Telephone                           $70.00       $70.00       $70.00      $70.00      $70.00    $70.00    $70.00      $70.00   $70.00   $70.00   $70.00    $70.00    $840.00
Household Costs                     $56.00       $56.00       $56.00      $56.00      $56.00    $56.00    $56.00      $56.00   $56.00   $56.00   $56.00    $56.00    $672.00
Repairs and Maintenance             $35.00       $35.00       $35.00      $35.00      $35.00    $35.00    $35.00      $35.00   $35.00   $35.00   $35.00    $35.00    $420.00
Stationary                          $70.00       $70.00       $70.00      $70.00      $70.00    $70.00    $70.00      $70.00   $70.00   $70.00   $70.00    $70.00    $840.00
Auxiliary Staff               $280.00            $280.00 $280.00          $280.00     $280.00   $280.00   $280.00 $280.00 $280.00 $280.00 $280.00 $280.00            $3,360.00
Insurance (Health and Workers
                              $56.00             $56.00       $56.00      $56.00      $56.00    $56.00    $56.00      $56.00   $56.00   $56.00   $56.00    $56.00    $672.00
Compensation) Note 3
Gasoline (Tuk Tuk)            $31.50             $31.50       $31.50      $31.50      $31.50    $31.50    $31.50      $31.50   $31.50   $31.50   $31.50    $31.50    $378.00
Staff Costs                                                                                                                                                          $19,760.00
Program Coordinator                 $850.00      $850.00 $850.00          $850.00     $850.00   $850.00   $850.00 $850.00 $850.00 $850.00 $850.00 $850.00            $10,200.00
Technical Assistant                 $0.00        $0.00        $0.00       $0.00       $0.00     $0.00     $400.00 $400.00 $400.00 $400.00 $400.00 $400.00            $2,400.00
Translator/Administrator            $300.00      $300.00 $300.00          $300.00     $300.00   $300.00   $300.00 $300.00 $300.00 $300.00 $300.00 $300.00            $3,600.00
Phone Card
                                    $5.00        $5.00        $5.00       $5.00       $5.00     $5.00     $5.00       $5.00    $5.00    $5.00    $5.00     $5.00     $60.00
Translator/Administrator
DE participation                                                          $3,500.00                                                                                  $3,500.00
Implementation Support                                                                                                                                               $9,000.00
Field Support Project
                                    $600.00      $600.00 $600.00          $600.00     $600.00   $600.00   $900.00 $900.00 $900.00 $900.00 $900.00 $900.00            $9,000.00
Coordinator Costs
Monitoring and Evaluation
                                                                                                                                                                     $7,500.00
Costs
Monitoring                          $2,500.00                                                             $2,500.00                                                  $5,000.00
Evaluation (of BIC program)                                                                                                                                $2,500.00 $2,500.00
Monthly Totals                      $8,005.50 $4,005.50 $4,005.50 $7,505.50 $4,005.50 $4,005.50 $7,205.50 $4,705.50 $4,705.50 $4,705.50 $4,705.50 $7,205.50 $64,766.00
Equivalent US $                     $5,718.21 $2,861.07 $2,861.07 $5,361.07 $2,861.07 $2,861.07 $5,146.79 $3,361.07 $3,361.07 $3,361.07 $3,361.07 $5,146.79
Note: Calculated using exchange rate 1 AUD = 0.60 US $                                                                                           AUD 0.6             $107,943.33
Implementation Support - based on 3 x 5 day trips per month                                                                                      AUD 0.9             $71,962.22
Note: BIC pays 70% of the overall fixed premises and auxilarly staff expenses



                                                                                                                                   CUFA BIC Project Plan - Page 36 of 37
16. Exit Strategy

CUFA sees two possible scenarios for exiting this project:

     1. In the event that CUFA cannot secure funding beyond Year 3 of this project, and
        we have to withdraw from Cambodia, all training centre goods (computers,
        furniture, and training materials) will be gifted to members of the Cambodian
        Credit Union Movement. The impacts of the training will be felt beyond the
        completion of this project as skills transfer will continue as long as there is demand
        and as long as training participants are committed to passing on the knowledge
        they have learned.

OR

     2. Upon completion of Year 3 of this project CUFA staff will undertake an evaluation.
        Evaluation will determine whether we have reached our overall goal of
        strengthening the institutional and human capacity of primary grassroots financial
        organisation. Through further consultation with our various stakeholders we will
        determine whether the project will enter a further phase that may see the delivery
        of more complex advanced training.

CUFA has secured funding for one additional year 2010/2011 with the possibility of
additional funding into 2011/2012 and beyond. Given an initial assessment of the
success of credit unions implementing strategies delivered in the Building Institutional
Capacity Program it is evident that the credit union movement would benefit from some
on-site credit union implementation support. While the credit union staff may understand
the concepts taught the credit unions visited (i.e. FLIFLY by example) have not shown
the capacity to put the learning into practice. Field visits to the credit unions will ensure
understanding is achieved for the modules already taught.




                                                            CUFA BIC Project Plan - Page 37 of 37

				
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