Cambodia’s e-GP Strategy: A Roadmap for Sustainable Public Procurement

The report explores Cambodia’s transition to an electronic Government Procurement (e-GP) system, emphasizing sustainability, transparency, and efficiency in public procurement. It highlights global best practices, recommends policy integration, and outlines a phased implementation to embed environmental and social standards into Cambodia’s procurement framework.

The report, Leveraging e-GP Strategy for Sustainable Public Procurement Implementation, produced by the World Bank’s GovTech initiative in collaboration with the Asian Development Bank (ADB) and supported by development partners such as the European Union and GIZ, explores Cambodia’s transition towards an electronic Government Procurement (e-GP) system. It highlights how digital procurement can enhance sustainability in public spending while improving transparency, efficiency, and accountability. The study aligns with Cambodia’s broader environmental and socio-economic goals as outlined in the 2023 Environmental and Natural Resources (ENR) Code and the Public Procurement Law 2023. The report underscores the need to integrate sustainability into procurement processes and provides a roadmap for implementing a structured, environmentally responsible purchasing system.

Sustainable Procurement as a Policy Priority

Sustainable Public Procurement (SPP) is becoming a cornerstone of responsible governance, allowing governments to leverage their purchasing power to drive environmental and social improvements. Cambodia’s ENR Code mandates accountability for sustainability among stakeholders, while Article 56 of the 2023 Public Procurement Law requires public procurement to prioritize environmental protection and socio-economic considerations. However, the absence of a structured Type 1 Ecolabel framework limits Cambodia’s ability to enforce sustainability standards across industries. The Ministry of Environment, with GIZ support, is working to establish a national ecolabel, guided by a draft Sub-Decree. The report stresses the importance of regulatory clarity, capacity-building, and institutional coordination in this process.

To strengthen its findings, the report analyzes global best practices in leveraging e-GP for sustainable procurement. The European Union incorporates sustainability into its procurement system through the Green Public Procurement (GPP) criteria toolkit, helping procurement officials implement green practices. South Korea integrates sustainability into its e-procurement system through the Korea Environmental Industry & Technology Institute (KEITI), which provides data and tools to identify and prioritize sustainable products. Canada’s system tracks supplier performance against sustainability benchmarks, ensuring vendors meet environmental requirements. The United States uses automated tools to screen products for compliance with environmental policies, while Australia, Japan, the UK, Sweden, and Germany embed sustainability principles into their e-procurement frameworks. Even developing nations like Thailand and Malaysia have begun incorporating sustainability into procurement, proving that responsible purchasing is viable in diverse economic contexts.

Cambodia’s e-GP Strategy and Readiness for Implementation

A study led by ADB, with support from the World Bank, assessed Cambodia’s readiness for an e-GP system and recommended a phased rollout. The first phase would introduce key features such as vendor registration, e-tendering, procurement planning, IT integration, and sustainability reporting. The long-term goal is to establish a centralized e-GP platform capable of managing procurement funded by both the national budget and development partners. While Cambodia’s digital procurement transformation is still in its early stages, the study identifies opportunities to embed sustainability criteria into procurement processes from the outset, ensuring alignment with international best practices.

One of the major advantages of an e-GP system is its ability to enhance transparency and accountability. By digitizing procurement, the system ensures sustainability criteria are consistently applied and easily monitored. Procurement officials will have access to standardized environmental and social benchmarks, making it easier to evaluate tenders based on factors like energy efficiency, carbon footprint, and fair labor practices. Additionally, the system will facilitate data-driven decision-making, using analytics to assess supplier performance and procurement trends.

To ensure sustainability goals do not create barriers for small businesses, the report highlights the need for capacity-building programs. SMEs, women-owned businesses, and historically disadvantaged enterprises often lack the resources to comply with complex sustainability requirements. The e-GP platform should therefore offer free training modules, along with a dedicated help desk to assist businesses in meeting compliance standards.

Integration with External Systems and Policy Enforcement

For the e-GP system to function effectively, it must integrate seamlessly with Cambodia’s broader IT infrastructure. The Financial Management Information System (FMIS) should track budget allocations for sustainability initiatives, ensuring that funds earmarked for climate mitigation and the Sustainable Development Goals (SDGs) are used appropriately. Additionally, the e-GP system should be linked to CamDX for vendor data management and align with Cambodia’s forthcoming National Ecolabeling Framework. This integration will allow ecolabel criteria to be incorporated into procurement decisions, enabling transparent and enforceable sustainability standards.

The report also emphasizes the need for a governance mechanism to oversee sustainability implementation. It recommends appointing an SPP expert within the e-GP working group to refine procurement indicators, monitor sustainability progress, and ensure accountability. Regular audits by the National Audit Authority and other oversight bodies will further strengthen compliance with sustainability mandates.

A Roadmap for a Greener Future

The report outlines several technical recommendations to embed sustainability into e-GP functionalities. Procurement planning templates should incorporate life-cycle costing (LCC), enabling agencies to evaluate the long-term financial and environmental impact of their purchases. A digital sustainability criteria library should be established, allowing procurement officers to access standardized environmental and social benchmarks when evaluating vendor proposals. Real-time tracking dashboards should be introduced, displaying key indicators such as greenhouse gas reduction, waste minimization, and social impact metrics.

The report urges Cambodia to expedite the issuance of a Sub-Decree on Sustainable Public Procurement, which would provide the necessary regulatory framework for enforcing sustainability in procurement. A unified e-GP platform will send a strong signal to vendors that sustainability is a national priority, encouraging businesses to adopt greener production and supply chain practices. A phased rollout of sustainability functionalities is also recommended, giving businesses time to adjust their operations to meet new procurement standards.

Cambodia is at a pivotal moment in its public procurement transformation. By integrating sustainability principles into its digital procurement system, the country has an opportunity to drive significant environmental and social improvements while enhancing fiscal efficiency. However, the success of this initiative will depend on coordinated efforts between government agencies, development partners, and the private sector. If effectively implemented, Cambodia’s e-GP strategy could serve as a global model for other developing nations seeking to modernize procurement while advancing sustainable development goals.