Regional: Trade Facilitation: Improved Sanitary and Phytosanitary (SPS) Handling in Greater Mekong Subregion (GMS) Trade

Sovereign Project | 43120-012

Summary

The TA will conduct due diligence in the following aspects: (i) the capacities pursued and methods introduced need to be compliant with principles/obligations under the World Trade

Organization and the Association of Southeast Asian Nations. They need also to be tailored to the needs of individual countries as identified in national SPS Action Plans and ADB's own

analysis; (ii) financial and economic viability will be assessed for the project investment, in particular cost-benefit, least cost and alternative analysis. Moreover, fiscal impacts of the

investments and recurrent costs will be assessed to ensure that the developing member countries (DMCs) can sustain the Project operation; (iii) public financial management,

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Project Name Trade Facilitation: Improved Sanitary and Phytosanitary (SPS) Handling in Greater Mekong Subregion (GMS) Trade
Project Number 43120-012
Country Regional
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7660-REG: Trade Facilitation: Improved Sanitary and Phytosanitary (SPS) Handling in Greater Mekong Subregion (GMS) Trade
Technical Assistance Special Fund US$ 900,000.00
TA 7660-REG: Trade Facilitation: Improved Sanitary and PhytoSanitary (SPS) Handling in Greater Mekong Subregion (GMS) Trade (Supplementary)
Technical Assistance Special Fund US$ 150,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector Agriculture, natural resources and rural development - Agricultural policy, institutional and capacity development - Agricultural production - Livestock
Education - Tertiary
Industry and trade - Trade and services
Gender Equity and Mainstreaming Some gender elements
Description

The TA will conduct due diligence in the following aspects: (i) the capacities pursued and methods introduced need to be compliant with principles/obligations under the World Trade

Organization and the Association of Southeast Asian Nations. They need also to be tailored to the needs of individual countries as identified in national SPS Action Plans and ADB's own

analysis; (ii) financial and economic viability will be assessed for the project investment, in particular cost-benefit, least cost and alternative analysis. Moreover, fiscal impacts of the

investments and recurrent costs will be assessed to ensure that the developing member countries (DMCs) can sustain the Project operation; (iii) public financial management,

procurement, policy, legal and institutional issues which are important for project implementation and cost-effectiveness of SPS services will be examined; (iv) poverty and social impacts assessment; (v) detail project implementation and project implementation unit arrangement. Procurement capacity assessment of EAs/IAs will be carried out to mitigate procurement risks. Administration of the loans/grant will be clarified. SPS capacity building will not affect environment, involuntary resettlement, and indigenous peoples. During design, possible gender benefits will be pursued.

Project Rationale and Linkage to Country/Regional Strategy The GMS Regional Cooperation Strategy and Program (RCSP) focuses on connectivity and improved competitiveness. While investments in infrastructure have created new opportunities for trade, Governments have recognized the importance of addressing legal, institutional and capacity constraints to ensure optimal use of the infrastructure. A number of initiatives have been launched in this regard. In 2004, the GMS Cross-Border Transport Agreement (CBTA) was signed. The midterm review of the 10-year (2002-2012) GMS strategic framework (SF) reaffirmed the importance of trade and transport facilitation initiatives, including strengthened SPS capacity and cooperation. Trade in AFF products among GMS countries amounted in 2007 to US$7 billion per year, constituting about 12 percent of intra GMS trade. It has been increasing more rapidly than AFF exports to the rest of the world and world trade in these products. However, weak SPS management capacities have constrained market access for a wide range of AFF products in GMS, and Governments have been insufficiently able to protect against the trade-related health hazards. It is expected that with better SPS systems in place, and in conjunction with other facilitative measures, trade of AFF products from CLV will increase in the range of 10-15% annually. Better SPS system will also lead to reduced loss of crops, animal products, and reduction of food-born diseases. Effective national capacity for SPS management is a building block towards confidence among GMS countries in each other's systems, which at the moment is low. An effective SPS system therefore plays in important role in promoting trade and stronger regional integration and cooperation.
Impact Consumers, producers, and traders will benefit from improved SPS management systems. By the end of 2016, the SPS project will lower losses from pests and diseases, reduce incidence of food-borne diseases, and reduce transaction cost of the SPS expport and import clearance process. It is expected to have increased intra-regional trade for AFF products by 10-15% annually.
Project Outcome
Description of Outcome The Project outcome will be an enhanced SPS managements ystem that supports SPS managers, consumers, producers and traders.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs The outputs will be: (i) surveillance and inspection programs designed and implemented (for plant health, animal health and food safety); (ii) increased education level and university training of SPS specialists; (iii) increased education level and university training of SPS specialists; (iii) improved regional cooperation and harmonization; and (iv) a monitoring and evaluation system.
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Cambodia, Lao PDR and Vie Nam
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations with in country technical agencies and development partners were conducted.
During Project Implementation

Extensive consultations with country technical agencies to firm up project components, and to ensure coordination with development partners' initiatives continued.

The PPTA was completed last 30 June 2014 and is currently being financially closed. Target financial closure is 30 Sept 2014.

Business Opportunities
Consulting Services Individual international and national consultants were engaged by ADB in accordance with the Guidelines on the Use of Consultants. Most of the consultants' contract have been closed. There are 4 remaining ongoing contracts that will be closed by 30 June 2014.
Responsible ADB Officer Lingling Ding
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Asian Development Bank6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 16 Jul 2010
Fact Finding 09 Aug 2010 to 15 Oct 2010
MRM -
Approval 23 Nov 2010
Last Review Mission -
PDS Creation Date 11 Jun 2009
Last PDS Update 25 Sep 2014

TA 7660-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 Nov 2010 - 23 Nov 2010 31 Oct 2011 30 Jun 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,050,000.00 0.00 80,000.00 0.00 0.00 0.00 1,130,000.00 23 Nov 2010 993,401.73

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Safeguard Documents

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Evaluation Documents

See also: Independent Evaluation

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