Cambodia has discovered several potential hydrocarbon

Background 1. The Cambodian economy - virtually destroyed by decades of war - has made impressive progress reintegrating into the international community and laying the foundation for successful development. Government leaders are moving toward restoring fiscal and monetary discipline and have established good working relations with international financial institutions. Growth, starting from a low base, has been strong in 1991-94. Despite such positive developments, the reconstruction effort faces many challenges because of the persistence of internal political divisions and the related lack of confidence of foreign investors. Rural Cambodia, where 90% of about 9.5 million Khemer live, remains mired in poverty. The almost total lack of basic infrastructure in the countryside will hinder development and will contribute to a growing imbalance in growth between urban and rural areas over the near term. Moreover, the government's lack of experience in administering economic and technical assistance programs will slow the growth of critical public sector investment. 2. The current Bank's country assistance strategy will focus on: (i) capacity building in the central government; (ii) analytical work to increase the knowledge base;

 and (iii) selected windows of opportunity to support rehabilitation and reconstruction within each sector. It is hard to imagine a country more in need of international assistance. 3. Cambodia has discovered several potential hydrocarbon reserves which could play an important role in the nation's economy. MIME intends to apply an annual audit of reserves and start a comprehensive study of the hydrocarbon reservoirs. MIME also intends to exploit economically efficient markets for indigenous hydrocarbon resources. A NIIME's eventual goal is to modernize various operations of the hydrocarbon sector both in the upstream and the downstream. Objectives 4. To support MIME'S operational activities, a personal computer-based MIS will be established with analytical and modeling capacity. The information system would cover data needs on all pertinent geological, geophysical, geochemical, reservoir, and production data across the country. The MIS will help the MlME manage its various activities and coordinate activities of planning, finance, operations, and marketing functions, so that the overall MIME objectives are met. Scope of Work 5. In line with the above objectives, the MIS will be designated to: (i) collect data; (ii) record and store data; (iii) provide for retrieval of the data; (iv) process the data; and (v) transmit and present relevant information using a personal computer. The use of the information may be categorized in terms of the business process of: (i) strategic planning; (ii) tactical planning; (iii) management control; and (iv) transaction recording system. (a) Strategic Planning: This is the management activity of analyzing the external and internal environment of MIME and establishing long-term objectives, policies and plans. It also involves making long-term provisions for the resources needed to attain MWIE objectives, and formulating the policies that are to govern the accusation, use and disposition of these resources. These activities set the direction of the firm for a multi-year period of time.

 (b) Tactical Planning: This is the activity of short-term and more detailed planning of the activities of MIME with the strategic plan. This activity is usually planned with a one-year horizon, through a detailed annual budget. (c) Management Control: This is the activity of controlling and providing feed-back on the day-to-day operations of the organization, and reporting periodic (usually monthly) accomplishments. This is the process by which managers assure that resources are obtained and used effectively and efficiently in the accomplishment of MLME's objectives. At the operational level, it focuses on specific operational functions, such as production scheduling and control, inventory management, cash management, etc. At the general management level, actual results are continuously monitored against budgets and plans. (d) Transaction Recording Process: This process captures and records the day-to day transactions for inputs and results of MIME, thereby providing the data necessary to facilitate the planning and control functions of the MIS. 6. Main Functions of the MIS: The proposed MIS would mainly deal with datalinformation on: (i) operations; (ii) finance and accounting; (iii) marketing, distribution and transportation; and (iv) new investments and procurement. (a) Operations: The objective of the operation segment of the MIS is to provide management with relevant, timely information for: contractual arrangements with investors including international oil companies and other investors; - designing, planning and maintaining of an efficient reservoir management and production system; exercising control over reservoir management and production including exploration, drilling and production planning; and facilitating the coordination of the production function with related functions to ensure that MlME as a whole is able to respond to the demands of the market place. (b) Finance and Accounting: The objective of the finance and accounting segment of the MIS is to provide management with relevant and timely information for: financial planning and decision making; - exercising control over financial activities; and - facilitating the coordination of the financial requirements of the various functions of MIME. (c) Marketing, Distribution and Transportation: The objective of the marketing segment of the NIIS is to provide management with relevant, timely information for: planning and decision making with respect to products offered, markets covered, sales management, pricing, distribution systems and promotion efforts; - exercising control over sales and marketing activities; and - facilitating the coordination of the various functions of MLME in meeting the demands of the market place. (d) New Investments and Procurement: The objective of the new investments and procurement segment of the MIS is to provide management with relevant, timely information for: planning, acquisition, and execution of new facilities and equipment; and exercising control over facilities and equipment procurement. Training 7. For familiarization of the MIS for MIME key staff (about 20 staff at various levels), a two week training program should be provided. Before the end of the consultants' assignment, the MIS should be ready for operation by MIME staff partially or wholly. Duration of Program 8. About 8 months. Budget 9. As shown in Annex 1, the budget requirement for this study is US$339,000. Annex 1 Budget Kingdom of Cambodia - Management Information System Budget Line Description US$ ESMAP Supervision Consultant Fees Consultant Travel Administrative Support ESMAP Staff Travel Bank Staff Travel Local Costs Sub-contract Training Non-Expendable Equipment Expendable Equipment Reporting Costs Sundries Unallocated Costs Sub-Total 339,000 

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