Cambodia: Promoting Economic Diversification Program (Subprogram 2)

Sovereign Project | 38421-023 Status: Active

Summary

ADB is helping Cambodia roll out measures to promote private sector development. The project will support efforts to increase market competition and regulatory efficiency, strengthen the investment climate, and enhance trade policy and facilitation.

Latest Project Documents

Consulting Notices See also: CMS

No notices are currently available for this project.

Procurement Notices See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

 
Project Name Promoting Economic Diversification Program (Subprogram 2)
Project Number 38421-023
Country Cambodia
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0223-CAM: Promoting Economic Diversification Program - Subprogram 2
Asian Development Fund US$ 9.00 million
Grant 0224-CAM: Capacity Development to Support the Promoting Economic Diversification Program
Asian Development Fund US$ 5.00 million
Loan 2675-CAM: Promoting Economic Diversification Program (Subprogram 2)
Asian Development Fund US$ 10.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Industry and trade - Small and medium enterprise development

Public sector management - Public administration

Gender Equity and Mainstreaming Some gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome --
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

(iii) MIME has 2 persons. MOE has 1 person.

(iv) new indicator

(i) 2 line ministries have RIA action plans (MIME and MOE)

(ii) MIME in process of posting RIAs on its website.

(v) Three additional investment agreements (chapters in FTAs) in 2009.

(vi) No double taxation agreement completed by mid-2010.

(vii) 85 days in 2010

(viii) Matching grants will be established in 2011Q1

(ix) 22 days in 2010 (40% reduction)

(x) 30 days in 2010 (35% reduction)

(xi) No change

(xii) Expected NATA accreditation for six tests in by end of 2010.

Grant 0224 comprises two subprojects. The first is the Sanitary and phyto-sanitary standards project (SPS-2) and the second subproject is the Regulatory Impact Assessment Project (RIA). Both subprojects are expected to be completed by September 2014.

Under SPS-2 project capacity development is being provided to the Institute Standards Cambodia (ISC), the Industrial Laboratory Center of Cambodia (ILCC), the Ministry of Health's food and drug agency for food safety standards in restaurants and catering establishments, and has launched a technology development fund for SMEs to access matching grants to upgrade food technology. We expect all grants (total of $800,000) to be awarded to about 30 SMEs by mid this year (2013).

Under the RIA subproject, the Office of RIA at the Office of the Council of Ministers has been established and operationalized. Four line ministries are piloting the RIA program. The Deputy Prime Minister launched the RIA program in October 2012. Each pilot ministry has has an annual work plan comprising of proposed RIAs to be carried out. Currently, about 11 preliminary RIAs have been completed. Another 4 are in the process of drafting.

RIA Subproject as of January 2014.

1. Expansion of ministries participating in the RIA project from 4 to 7. The additional three include the Ministry of Labor and Vocational Training (MLVT); the Ministry of Education, Youth and Sports (MYS), and the Ministry of Agriculture, Fisheries and Forestry (MAFF).

2. Decision by the Deputy Prime Minister, in consultation with the Prime Minister to draft a Prime Minister's subdecree mandating the practice of regulatory impact assessment across the whole of government.

SPS Subproject as of January 2014.

1. Out of 27 SMEs awarded grants under the Technology Devt Fund (TDF), two of these have withdrawn from the program, leaving 25 SMEs with grant projects. Awards to SMEs were made in three rounds of which the 3rd round was carried out in Dec 2013 (5 SMEs).

Geographical Location

Safeguard Categories

Environment C
Involuntary Resettlement C
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

SPS-2 Subproject.

The ADB Mission's mid-term review of the SPS-2 Subproject has assessed the project as being successfully implemented at the mid-term point of project implementation (approximately May 2013). Significant regulatory changes have been approved by government that promotes better food safety standards. These include regulation on mandatory minimum food safety standards in restaurants and catering establishments and the voluntary standards and grading system for restaurants and catering establishments. The SPS Consultant is working closely with the Ministry of Health to draft a Government Food Policy providing general direction on the regulatory, surveillance and enforcement of food safety standards in Cambodia, with the intention to move to a food law in the future. The Food Policy will be submitted to the Prime Minster for approval before March 2014. Significant capacity development efforts have been made to improve the professionalism of the Industrial Laboratory Center of Cambodia (ILCC) including ISO accreditation for a range of test parameters, corporate governance and procurement of equipment. The MIME is currently drafting a decree to make the ILCC partially financially autonomous. At the Institute Standards Cambodia (ISC) efforts continue to have the ISC internationally accredited as a conformity assessment body. It is expected to achieve accreditation in 2013. The matching grants scheme (also known as the Technology Development Fund, TDF) providing SMEs with grants to upgrade food safety standards and technology has been progressing well. Almost three quarters of the grants (approximately $600,000 out of $800,000) have been awarded to 20 SMEs generating almost $2 million in additional investment by the 20 SMEs. An additional 10 SMEs are expected to be awarded in the third quarter of 2013 to complete the grants scheme awards. All 30 SMEs are expected to complete their activities by March 2014.

During the recent SPS-2 mid-term review, the EA requested additional consultants/assistants to advance the SPS-2 Project and sustainability of interventions. These include: (1) engaging an international social survey expert to oversee the household food safety survey; and (2) engaging four national research assistants to provide guidance to SMEs making applications under the matching grants scheme (see paras. 8 and 12(a) and (b)). The international social survey expert will design the questionnaire, set the sample frame, oversee implementation of the survey by the firm and report on statistical results of the survey. The survey frame would be designed to survey approximately 500 households in Phnom Penh to collect information on household food safety practices, buying behavior and views on food safety standards. The results of the survey will be used by the EA and the IA (Ministry of Health) as input into the draft Food Policy and its advocacy among community stakeholders, which is intended to be submitted to the Prime Minister for approval before March 2014.

RIA-Subproject.

The ADB Mission's mid-term review of the RIA Subproject has assessed the RIA project as being successfully implemented at mid-term of project implementation (approximately May 2013). The ORIA has been established and significant effort has been made to build capacity of the 18 staff at ORIA and the 21 staff assigned to the RIA units at the four IAs. The RIA business processes, manual, guidelines and preliminary impact assessment (PA) templates are in place. Two exposure visits to overseas offices of better regulatory practices were completed in the first semester of 2013, which provided additional inputs into the development of RIA system in Cambodia. About 39 government staff had on-the-job training for RIA and in drafting a PA. As a result, the four IAs have produced a total of 15 PAs and all are published in the ECOSOCC website. The IAs consider the improvements in transparency achieved from publishing PAs and more consultations with stakeholders as the most important benefits from RIA so far.

During the recent RIA mid-term Review Mission, the EA and IAs requested a number of changes to the RIA Subproject in order to make the RIA initiative sustainable in government. Most importantly, the EA is proposing to draft a Prime Minister's Decree to make RIA mandatory across the national government in 2014 requiring almost 20 ministries to comply with the RIA system. The OCOM has proposed a transition towards a mandatory system by expanding the number of ministries piloting RIA. Therefore, to support making RIA mandatory, the EA requested these changes to the RIA Subproject: (1) expand the number of ministries (IAs) implementing RIA from four ministries to seven ministries with capacity development provided by the RIA Subproject, i.e., increase the IAs by an additional 3 line ministries, which will require a reallocation of funds within the grant project to support capacity development of the additional three IAs participating in the RIA program; and (2) engage a national information and technology expert to advance the information systems at ORIA. The OCOM does not have staff with sufficient IT skills to enhance the current IT system. The ADB Mission agrees to these changes in the RIA Subproject.

Business Opportunities

Consulting Services -
Procurement -

Responsible Staff

Responsible ADB Officer Mohd Sani Mohd Ismail
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Ministry of Commerce
20 A/B Preah Norodom Blvd
Phnom Penh, Cambodia

Timetable

Concept Clearance 12 Mar 2011
Fact Finding 17 May 2010 to 12 Mar 2011
MRM 12 Mar 2011
Approval -
Last Review Mission -
PDS Creation Date 18 Feb 2010
Last PDS Update 31 Mar 2014

Grant 0223-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Sep 2010 22 Oct 2010 11 Jan 2011 30 Apr 2011 - 30 Apr 2011
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 9.00 Cumulative Contract Awards
ADB 9.00 30 Sep 2010 9.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 30 Sep 2010 9.00 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - -

Grant 0224-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Sep 2010 22 Oct 2010 11 Jan 2011 30 Sep 2014 30 Jun 2016 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.00 Cumulative Contract Awards
ADB 5.00 30 Sep 2010 4.65 0.00 93%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 30 Sep 2010 4.54 0.00 91%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - -

Loan 2675-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Sep 2010 22 Oct 2010 11 Jan 2011 30 Apr 2011 - 30 Apr 2011
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 10.00 30 Sep 2010 10.18 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 30 Sep 2010 10.18 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory - - - - -

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.