Greater Mekong Subregion: Cambodia Road Improvement Project

Match covenants with jurisdictions. One covenant required government approval of the road law and transport policy. However, the formulation of the road law and transport policy that was expected under the project was delayed. The requirement should not have been a loan covenant because the Ministry of Public Works and Transport (MPWT) did not have jurisdiction over rural roads and thus lacked the ability to comply fully. Loans should not include covenants that impose requirements on an executing agency that lacks full jurisdiction to meet them.