Cambodia: Emergency Food Assistance Project

Sovereign Project | 42186-013

Summary

The proposed loan and grant for the emergency food assistance Project will provide short term transitional support to help the Government meet unexpected high expenditures for safety net programs for the poor and vulnerable affected by higher food, fuel and agricultural input prices. The proposed Project will finance Government's expanded compensatory safety net programs for the consumption and production of food by the poor and vulnerable in selected rural areas of seven provinces in the Tonle Sap Basin and in selected urban slums of Phnom Penh.

The Project will have three components:

(i) compensatory consumption support,

(ii) productivity enhancement support, and

(iii) capacity development for emergency response to the food crisis and project management.

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Consulting Notices

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Procurement Notices

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Procurement Documents

Title Document Date
Emergency Food Assistance Project Jul 2008

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Project Name Emergency Food Assistance Project
Project Number 42186-013
Country Cambodia
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant 0116-CAM: Emergency Food Assistance Project
Asian Development Fund US$ 17.50 million
Loan 2455-CAM: Emergency Food Assistance Project
Asian Development Fund US$ 17.50 million
TA 7145-CAM: Strengthening Institutional Capacity for Emergency Response to Food Crisis and Improving Food Security
Technical Assistance Special Fund US$ 1.50 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
Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The proposed loan and grant for the emergency food assistance Project will provide short term transitional support to help the Government meet unexpected high expenditures for safety net programs for the poor and vulnerable affected by higher food, fuel and agricultural input prices. The proposed Project will finance Government's expanded compensatory safety net programs for the consumption and production of food by the poor and vulnerable in selected rural areas of seven provinces in the Tonle Sap Basin and in selected urban slums of Phnom Penh.

The Project will have three components:

(i) compensatory consumption support,

(ii) productivity enhancement support, and

(iii) capacity development for emergency response to the food crisis and project management.

Project Rationale and Linkage to Country/Regional Strategy

Cambodia has been badly affected by soaring food prices. The domestic price of rice and fertilizer has doubled over past years, while meat and fish prices have increased 30% to 60%. The rice price increase has accentuated the vulnerability of food deficit households, including the urban poor. In addition, input price increases threaten immediate future food production as farmers reduce fertilizer use, thereby reducing paddy yield, which is one of the lowest in Asia even in the best years. Gasoline price increases have increased the cost of transport, processing, and water pumping for irrigation. Consequently, poverty and hunger have increased; migration to urban areas and movement of people across the borders (Thailand and Viet Nam) have also increased. School attendance has declined as children are reportedly joining the workforce in order to help families, and in some cases have stopped coming to classes because of the discontinuation of the school feeding program. Some families are selling land and other assets to buy food and necessities. Home-based crafts are on the decline because raw material prices have escalated.

The rate of inflation has been accelerated by the combined effects of the surge in the price of food, inputs, and fuel. The situation has created additional demands on the Government's limited revenue base, and threatened the livelihood of millions of vulnerable Cambodians. The Government recognizes the need to immediately strengthen safety-net programs for the most vulnerable population to cope with the drastic rise in their food bills. It has released 300 tons (t) of rice onto the open market in order to bring down rice prices. In addition, the Government has contributed 4,000 t of rice to the World Food Programme feeding program, including school feeding. It is under these dire circumstances that the Government has requested emergency assistance from the Asian Development Bank (ADB) to augment its ongoing efforts and help offset some of the short-term human costs of this exogenous shock.

The proposed Project is an integral part of the overall commitment made by ADB in May 2008 at its Annual General Meeting in Madrid, Spain to provide assistance to countries hit hard by food price rises. Those most vulnerable to food price shocks need to be protected from nutritional deprivation, erosion of their real purchasing power, and asset alienation. It is proposed that the project financing should be covered by ADB's Disaster and Emergency Assistance Policy to support urgent mitigation measures by the Government in order to tackle the food price crisis.

Impact The expected impact is reduced vulnerability of food-insecure households in Cambodia.
Project Outcome
Description of Outcome The expected outcome is improved access to sufficient food and production inputs by food poor Cambodians in the target provinces.
Progress Toward Outcome

The project is expected to achieve the intended outcome because:

Households reached directly through following activities:

a) Free rice distribution: 68,000 hhs; b) CFW: 38,931 hhs (8,937 female headed hhs); c) FFW: 19,667 hhs (6,453 female headed hhs); d) Civil works: 22,255 hhs (3,328 female headed hhs); e) ECLC: 127 (127 female headed hhs); f) School Feeding: 65,387 (31,555 girls); h) School Scholarship: 10,443 (5,510 girls).

Households reached indirectly through i) seeds, vegetable crops and fertilizer distribution are 73,625.

Implementation Progress
Description of Project Outputs Three expected outputs are: (i) increased availability of food to vulnerable households; (ii) support the input needs of smallholders and marginal farmers; and (iii) an operational national food security response system.
Status of Implementation Progress (Outputs, Activities, and Issues)

Loan Component (Loan 2455) was operationally closed on 30 September 2012 and financially closed on 03 April 2013. Closing date of Grant 0116 and TA 7145 is extended until 30 June 2015 and its remaining proceeds will be used for project operations.

All project activities under FFW/CFW/Civil work contracts were fully completed.

- FFW/CFW/Civil work contracts resulted in a rehabilitation of 790km rural road and 22000ha of land irrigated. On average, each household earned $90 for earth works.

- The survey results indicate that over 90% of the people reported a reduced food shortage period by 3-4 months

- All 88 civil works sub-projects were completed.

- Distribution of subsidized rice seeds and fertilzier was completed. The survey results indicate increased yields by 40-47% on average.

- The sub-degree of CFRS was approved by the Prime Minister on 11 September 2012. The Prakas on the appointment of CFRS Chairman and Committee Members and establishment of the CFRS Secretariat have been endorsed. Draft Standard Operating Procedure (SOP), including Khmer version to operationalize the CFRS has been submitted to the CFRS committee for discussion. Draft contract agreement with private partners are being prepared.

Under the CFRS scheme, 1400 tons of quality rice seed and 12.5 tons of vegetable seeds has been porduced through the engagement of Toul Samroung Rice Seed Farm, Kbal Koh Vegetable Research Station, Farmers Associations and Farmers Groups.

Geographical Location Kampong Chhnang, Pursat, Banteay Meanchey, Battambang, Siem Reap, Kampong Thom, Otdar Meanchey
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects No major impacts due to small-scale rehabilitation of rural roads and canals. Environmental assessment screening was conducted for all subprojects for CFW and civil work contracts prior to physical activities.
Involuntary Resettlement No major impacts due to small-scale rehabilitation of rural roads and canals. Involuntary resettlemtn screening was conducted for all subprojects for CFW and civil work contracts prior to physical activities.
Indigenous Peoples N/A
Stakeholder Communication, Participation, and Consultation
During Project Design

The project will utilize existing effective delivery mechanisms and institutions, and enhance their capacity, as appropriate.

MEF will be the executing agency of the Project. The proposed implementing agencies will be:

(i) Ministry of Agriculture, Forestry and Fisheries (MAFF) for the seed and fertilizer assistance;

(ii) Ministry of Rural Development (MRD) for the food-for-work program;

(iii) Ministry of Water Resources and Meteorology (MOWRAM) for the food-for-work program;

(iv) the Ministry of Commerce (MOC) for the emergency food security system;

(v) National Committee for Disaster Management (NCDM) and provincial committee for disaster management (PCDM) for overall coordination, management, and distribution of food and input assistance, and establishment of the emergency food security reserve and rapid response system;

(vi) Ministry of Education, Youth and Sports (MOEYS) for the school feeding program;

(vii) Ministry of Women Affairs (MOWA) for the ECLC feeding program; and

(vii) commune councils and village development committees for identification of target groups and distribution of food and inputs.

During Project Implementation

The Ministry of Economy and Finance (MEF) is the executing agency (EA), and has established the CPMU led by a Project Director to oversee the implementation of the Project. The MEF has established the National Food Security Task Force (NFSTF) to provide policy guidance to the CPMU on project implementation. The PPMUs have been established in all seven targeted provinces, and are responsible for organizing project activities.

The Technical Support Units (TSUs) have been established within the Ministry of Rural Development (MRD), Ministry of Water Resources and Meteorology (MOWRAM), Ministry of Agriculture, Forestry and Fisheries (MAFF), Ministry of Education, Youth, and Sports (MOEYS), Ministry of Womens' Affairs (MOWA) and National Committee for Disaster Management (NCDM). The Provincial Technical Support Units of the above ministries have also been established in seven targeted provinces (except for MOEYS where only two provincial units - Pursat and Battambang, are established) to assist the Project on relevant technical aspects.

NGOs were engaged as independent monitors while World Food Program was also engaged to undertake school feeding and food for work.

Business Opportunities
Consulting Services The Project will require a total of 325 person months of consulting services, including 75 person-months of international consultants, and 250 person-months of national consultants. The Project will also provide independent monitoring services by local NGOs. All consultants, including the independent monitors will be recruited by ADB in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time). The International Team Leader, National Project Manager, and Procurement/Logistics Expert will be engaged directly by ADB in accordance with the Guidelines on the Use of Consultants (2007, as amended from time to time). For the remaining consulting services, a firm will be recruited following QCBS using the 80: 20 ratio for scores related to technical and financial proposals. The NGOs will be recruited following CQS procedures.
Procurement The Project will entail procurement of rice, seeds, fertilizers, vehicles, office equipment and a large number of community-based civil works under the food/cash-for-work program. All procurement to be financed under the Project will be carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). The draft guidelines for cash for work were developed based on the WFP's food for work and other seimilar programs. After pilot testing, the detailed guidelines for cash for work and civil work contract were developed and implemented.
Responsible ADB Officer Piseth Long
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Cambodia Resident Mission
Executing Agencies
Ministry of Economy and FinanceH.E. Dr. Vong Sandapsandap@efap.org.khTel.: 023 430 716
Timetable
Concept Clearance 23 Jun 2008
Fact Finding 23 Jun 2008 to 04 Jul 2008
MRM 22 Aug 2008
Approval 02 Oct 2008
Last Review Mission -
PDS Creation Date 22 Aug 2008
Last PDS Update 21 Jul 2014

Grant 0116-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Oct 2008 09 Oct 2008 14 Oct 2008 30 Sep 2011 30 Jun 2015 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 22.58 Cumulative Contract Awards
ADB 17.50 02 Oct 2008 17.34 0.00 99%
Counterpart 5.08 Cumulative Disbursements
Cofinancing 0.00 02 Oct 2008 17.37 0.00 99%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - -

Loan 2455-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Oct 2008 09 Oct 2008 14 Oct 2008 30 Sep 2011 30 Sep 2012 03 Apr 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 17.50 Cumulative Contract Awards
ADB 17.50 02 Oct 2008 11.67 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 02 Oct 2008 11.67 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - -

TA 7145-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Oct 2008 09 Oct 2008 09 Oct 2008 30 Sep 2010 30 Jun 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,500,000.00 0.00 0.00 0.00 0.00 0.00 1,500,000.00 02 Oct 2008 1,495,950.33
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - -

Safeguard Documents

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Evaluation Documents

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