Cambodia: TSSD- ADF Loan

Sovereign Project | 41435-013

Summary

The Tonle Sap Poverty Reduction and Smallholder Development Project will foster community-driven development through investments in productivity improvement, rural infrastructure, and capacity development in 196 communes in the provinces of Banteay Meanchey, Kampong Cham, Kampong Thom, and Siem Reap. The Project will assist the Government in creating (i) community driven development through a commune block grant with the following three subcomponents: (a) improving rural infrastructure supporting agricultural productivity; (b) improving capacity of smallholder farmers; (c) strengthened commune project management capacity; (ii) enabling Environment for Agriculture Productivity and Diversification with the following subcomponents: (a) improving agricultural policy environment; (b) increasing availability of and access to quality seeds; and (c) increasing access to agricultural information and market data; and (iii) Effective Project Management.

Latest Project Documents

Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name TSSD- ADF Loan
Project Number 41435-013
Country Cambodia
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0186-CAM: Tonle Sap Poverty Reduction and Smallholder Development Project
Asian Development Fund US$ 27.30 million
Grant 0192-CAM: Tonle Sap Poverty Reduction and Smallholder Development Project
LRG - Intl. Fund for Agricultural Devt. US$ 6.69 million
Loan 2599-CAM: Tonle Sap Poverty Reduction and Smallholder Development Project
Asian Development Fund US$ 3.40 million
Loan 8243-CAM: Tonle Sap Poverty Reduction and Smallholder Development Project
IFAD Fund - Cofinanced Loans US$ 6.69 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Agriculture, natural resources and rural development - Agricultural policy, institutional and capacity development - Agricultural production - Rural market infrastructure
Finance - Inclusive finance
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The Tonle Sap Poverty Reduction and Smallholder Development Project will foster community-driven development through investments in productivity improvement, rural infrastructure, and capacity development in 196 communes in the provinces of Banteay Meanchey, Kampong Cham, Kampong Thom, and Siem Reap. The Project will assist the Government in creating (i) community driven development through a commune block grant with the following three subcomponents: (a) improving rural infrastructure supporting agricultural productivity; (b) improving capacity of smallholder farmers; (c) strengthened commune project management capacity; (ii) enabling Environment for Agriculture Productivity and Diversification with the following subcomponents: (a) improving agricultural policy environment; (b) increasing availability of and access to quality seeds; and (c) increasing access to agricultural information and market data; and (iii) Effective Project Management.
Project Rationale and Linkage to Country/Regional Strategy

Cambodia has achieved gross domestic product growth of 8%-10% a year since 2001, driven largely by an expansion of the construction, garment, and tourism sectors. Agricultural growth has fluctuated because of variations in the performance of the crop sector, especially rice. However, the Government of Cambodia and its development partners are deeply concerned about (i) the narrow base of economic growth, currently threatened by the global economic crisis; and (ii) the persistence of high levels of rural poverty, coupled with the growing income disparity between rural and urban areas.

The headcount poverty index of 52.40% for Kampong Thom, 51.84% for Siem Reap, 37.15% for Banteay Meanchey, and 37.04% for Kampong Cham can be compared with the national rural poverty level of 39.7%. A recent Asian Development Bank (ADB) study of 20 communes, in six representative agro-ecological regions in four provinces, found that 15 communes had poverty levels exceeding 60%, two were between 50% and 60%, and two were between 30% and 50%. Only one had poverty a level below 30%.

Opportunities for sustainable rural economic growth based on increasing the productivity of resource-poor smallholders were examined. These studies confirmed the need for investment in agricultural productivity improvement, rural infrastructure, and capacity building. The focus should be on commune-led activities to support smallholder production, and key institutional reforms to enable faster agricultural growth. The proposed investments would be in line with ADB's Strategy 2020, the country strategy and program for Cambodia, and the road map for agriculture and natural resources for Cambodia. The investments would also support the International Fund for Agriculture and Development (IFAD) country strategy for Cambodia, and the Government's Rectangular Strategy II.

ADB's assistance to Cambodia, especially for agricultural policy development and finance sector reform, has established the base for faster economic growth. Rural roads have strengthened market links and improved mobility; irrigation schemes have created access to water sources to increase agricultural production; and water supply and sanitation works have contributed to better health. With three ongoing projects and supporting technical assistance (TA), the Tonle Sap Initiative is creating assets, infrastructure, and institutional capacity locally, while protecting the environment and natural resources of the Tonle Sap basin. The recently completed commune council buildings are centers for local authorities to better organize and implement service deliveries to communities.

To accelerate development and deepen the impact of the past investment and TA projects, additional support to strengthen community-driven development and to enhance household production, income, and access to technology, markets, and credit will be essential. The provision of rural finance will be essential to remove barriers that restrict supply and constrain access to credit by poor households. The segmented nature of the rural credit market, and the absence of properly functioning markets in the segments where the targeted beneficiaries are expected to operate, justifies improving access to rural finance.

Impact The impact of the Project will be to improve the livelihoods of approximately 630,000 households in four provinces in the Tonle Sap basin by 2020.
Project Outcome
Description of Outcome Agricultural productivity increased and improved access to markets created in 196 communes in four provinces in Tonle Sap basin.
Progress Toward Outcome The project is on track and is progressing to achieve outcome.
Implementation Progress
Description of Project Outputs

1. Community Driven Development through a Commune Block Grant

2. Enabling Environment for Increased Agricultural Productivity and Diversification

3. Effective Project Management

Status of Implementation Progress (Outputs, Activities, and Issues)

The Project has expanded into all 196 communes and has disbursed Block Grants to the Commune Councils have been progressing well.

Work still on progress. 591 rural infrastructure sub-projects awarded and most of them are completed.

1,239 target villages (100%) across target communes have been selected and 1229 LIGs have been established and the remaining LIGs will be established by Nov 2014. Commune extension workers have received training and extension materials are working with LIGs members on improving agriculture productivity.

On progress.

On-going. At least one woman is in every committees of the group formed.

Monthly meetings are being held at the provincial and district level.

Handbook on rice and vegetable seeds production developed.

On progress

Two Gov ts owned Rice Research Stations and warehouses (Balaing in Kampong Thom province; and Tuek Vill in Siem Reap province) are financed by ADB to produce certified rice seeds. Renovations of the 2 Rice Research Stations, including rice seeds drying concrete floor, are completed.

28 rice seed producer group (RSPG) have been identified so far.

On progress

On progress

No telecenters will be formed. New approach to Rural ICT have been conducted.

not yet done.

On progress

Geographical Location Banteay Meanchey, Siem Reap, Kampong Thom and Kampong Cham
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects Not Applicable.
Involuntary Resettlement Not Applicable.
Indigenous Peoples Not Applicable.
Stakeholder Communication, Participation, and Consultation
During Project Design The project preparation process was geared towards developing a consensus on the proposed project design, and necessary policy and institutional measures for effective project implementation, by involving a wide range of key stakeholders, including many ministries and agencies, development partners, nongovernment organizations, and community-based organizations at critical milestones. During this process, 55 project participatory consultations and workshops were held at the central (3), provincial (12), district (8), and commune (32) levels. This consultative process, together with the results of the agro-socioeconomic study of 20 communes, formed the foundation of detailed project design.
During Project Implementation

Stakeholder participation and consultation is an integral part of the implementation, particularly during the following process:

(i) Identification of 1200 Livelihood Improvement Groups - identification of 25 households in each group by assessing their poverty and production capacity and willingness and commitment to participate and carry out activities;

(ii) Identification and development of agricultural technology packages through conducting an agroecosystem analysis for each of the 196 targeted commune by engaging the staff from the district agricultural office, farmers, and other relevant stakeholders;

(iii) Assessment and identification of appropriate varieties of rice seeds by assessing agroecosystem analysis and conducting consultation with communes, farmers, and any other relevant community/civil society groups;

(iv) Finalization of agricultural productivity enhancement manuals, guidelines and handbooks by carrying out meeting and consultation workshops.

Business Opportunities
Consulting Services The project will require a total of 1178 person months of consulting services. The revised consulting services will have two consulting firm packages (QCBS and QBS) and individual consultants. The QCBS package includes 42 person-months of international experts (2 positions) and 438 person months for national experts throughout the project implementation. The QBS pacakge includes 14 person months of international experts and 156 person months for national experts. The indiviual consultants include 12 positions at the province level (8 for NCDDS and 4 for MAFF) and 2 for NCDDS and 1 for MAFF at the national level.
Procurement

Goods and works financed partly or wholly by ADB will be procured in accordance with ADB's Procurement Guidelines. Equipment to be procured under the Project will consist primarily of office and training equipment, bicycles, motorbikes, utility vehicles, and minor construction equipment and tools. No contract package is expected to exceed $500,000 and international competitive bidding is not envisaged under the Project. Each contract costing between $100,000 and $500,000 will be awarded through national competitive bidding. Minor equipment and materials costing less than $100,000 will be procured through shopping.

Individual works contracts under Community driven development (block grant) will not exceed $20,000 and may be awarded to contractors selected according to the PIM. Work contracts under the CDF may also be awarded to community groups following procedures for community participation in procurement in accordance with ADB's Procurement Guidelines.

Civil works for Component 1, such as small water schemes, roads, markets, storage, fish pond, water supply and sanitation, and small village works, that cost less than $500,000 will be procured through local competitive bidding procedures acceptable to ADB. Individual works contracts not exceeding $20,000 may be awarded to contractors selected through local shopping or direct contracting. Work contracts may also be awarded to community groups following procedures for community participation in procurement in accordance with ADB's Procurement Guidelines.

Responsible ADB Officer Chanthou Hem
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Cambodia Resident Mission
Executing Agencies
Ministry of Agriculture, Forestry & FisheriesMr Sen Sovannssovann@online.com.kh ,MAFF, P.O.Box: 2447, Phnom Penh-3, Cambodia
Timetable
Concept Clearance 06 Feb 2009
Fact Finding 09 Feb 2009 to 20 Feb 2009
MRM 21 Aug 2009
Approval 17 Dec 2009
Last Review Mission -
PDS Creation Date 20 Apr 2009
Last PDS Update 30 Mar 2015

Grant 0186-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2009 27 Dec 2009 31 Mar 2010 28 Feb 2018 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 27.30 Cumulative Contract Awards
ADB 27.30 08 Dec 2009 21.18 0.00 78%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 08 Dec 2009 19.60 0.00 72%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Partly satisfactory

Grant 0191-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2009 20 Sep 2010 03 Dec 2010 15 Mar 2014 31 Dec 2014 03 Jul 2015
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.00 Cumulative Contract Awards
ADB 0.00 08 Dec 2009 0.00 1.24 78%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 08 Dec 2009 0.00 1.24 78%

Grant 0192-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2009 15 Feb 2010 15 Feb 2010 28 Feb 2018 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 6.69 Cumulative Contract Awards
ADB 0.00 08 Dec 2009 0.00 3.61 54%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 6.69 08 Dec 2009 0.00 0.00 0%

Loan 2599-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2009 27 Dec 2009 31 Mar 2010 28 Feb 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 8.87 Cumulative Contract Awards
ADB 3.40 08 Dec 2009 2.76 0.00 86%
Counterpart 5.47 Cumulative Disbursements
Cofinancing 0.00 08 Dec 2009 3.15 0.00 98%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Partly satisfactory

Loan 8243-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Dec 2009 15 Feb 2010 15 Feb 2010 28 Feb 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 6.69 Cumulative Contract Awards
ADB 0.00 17 Dec 2009 0.00 5.09 84%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 6.69 17 Dec 2009 0.00 2.80 46%

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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