Regional: CAM/LAO: Trade Facilitation: Improved Sanitary and Phytosanitary (SPS) Handling in Greater Mekong Subregion Trade Project

Sovereign Project | 43120-013

Summary

The project will strengthen institutions and operational and management capacities in Cambodia and the Lao PDR for operating cost-effective SPS systems that facilitate trade and protect health.2 The project will focus on GMS trade in agriculture, food, and forestry (AFF) products for which SPS measures for plant health, animal health, and food safety apply. The project will establish, strengthen, and implement (i) surveillance and inspection programs for plant health, animal health, and food safety; (ii) enhanced education levels and university training of SPS specialists; and (iii) regional cooperation and harmonization for SPS measures and practices. It will selectively strengthen food safety capacities of private food handling enterprises and restaurants in tourist areas. The project will be implemented by the national authorities in each country.

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Project Name CAM/LAO: Trade Facilitation: Improved Sanitary and Phytosanitary (SPS) Handling in Greater Mekong Subregion Trade Project
Project Number 43120-013
Country Regional
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant 0296-REG: LAO: Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project
Asian Development Fund US$ 11.00 million
Loan 2873-REG: CAM: Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project
Asian Development Fund US$ 11.00 million
Loan 2874-REG: LAO: Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project
Asian Development Fund US$ 3.00 million
TA 8096-REG: Improving Sanitary and Phytosanitary (SPS) Handling in Greater Mekong Subregion Trade
Technical Assistance Special Fund US$ 750,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector

Agriculture, natural resources and rural development - Agricultural production - Agro-industry, marketing, and trade - Livestock

Education - Tertiary

Industry and trade - Trade and services

Gender Equity and Mainstreaming Some gender elements
Description The project will strengthen institutions and operational and management capacities in Cambodia and the Lao PDR for operating cost-effective SPS systems that facilitate trade and protect health.2 The project will focus on GMS trade in agriculture, food, and forestry (AFF) products for which SPS measures for plant health, animal health, and food safety apply. The project will establish, strengthen, and implement (i) surveillance and inspection programs for plant health, animal health, and food safety; (ii) enhanced education levels and university training of SPS specialists; and (iii) regional cooperation and harmonization for SPS measures and practices. It will selectively strengthen food safety capacities of private food handling enterprises and restaurants in tourist areas. The project will be implemented by the national authorities in each country.
Project Rationale and Linkage to Country/Regional Strategy

The GMS regional cooperation strategy and program focuses on connectivity and competitiveness. While recent investments in physical infrastructure have created new opportunities for trade, GMS governments increasingly realize that weak legal, institutional, and administrative capacities hinder the optimal use of infrastructure and are insufficient to address trade-related health hazards. A number of initiatives have been launched to overcome such constraints, including the GMS cross-border transport agreement. The midterm review of the 10-year (2002 2012) GMS strategic framework reaffirmed the importance of trade and transport facilitation initiatives, including strengthened SPS capacity and cooperation. The essential SPS issues that need to be resolved to meet the development needs of the GMS were identified and a GMS action plan for SPS arrangements, 2010-2015 was formulated.

Trade in AFF products among GMS countries amounted to $9.27 billion in 2009. This constituted about 13% of intra-GMS trade. Total GMS AFF exports grew more than fourfold from 2000 to 2009. Nevertheless, because of poor SPS management capacities, market access for a wide range of AFF products from Cambodia and the Lao PDR remains limited, both in the GMS and globally. The governments of Cambodia and the Lao PDR have not been able to protect their crops, livestock, and consumers against trade-related health hazards caused by plant pests, animal diseases, and food safety hazards. It is expected that, with better SPS systems in place, trade of AFF products from Cambodia and the Lao PDR will increase by about 10%-15% annually. Better SPS systems will also lead to reduced risk of crop, animal products losses, and reduced incidence of food-borne diseases. Effective national SPS management systems are building blocks for regional harmonization and for establishing trust among GMS countries in each other's SPS measures.

There is lack of human resource capacity to (i) undertake surveys on crop pests and diseases, (ii) manage inspections and interceptions of imported products, (iii) monitor the agricultural pesticide trade, (iv) understand the risks of forest pest spread associated with trade in wood and forest products, and (v) sustain and expand the regional trade in crop products. There is also a need to (i) contain transboundary animal diseases, (ii) improve surveillance of veterinary drugs and feed, (iii) maintain animal food product safety, and (iv) improve border clearance procedures. Information on food safety is scarce, characterized by inadequate monitoring of food, food establishments and food poisoning outbreaks. Although tourism in Cambodia and the Lao PDR is rapidly growing, it is vulnerable without adequate food safety supervision.

Compliance with global SPS requirements requires national specialists to undertake tasks related to surveillance, risk analysis, testing, diagnostics, pest identification, standards, and conformity assessment. Trading partners and private companies often require application of good agricultural practices, good manufacturing practices, and quality assurance management (such as hazard analysis critical control points). Cambodia and the Lao PDR lack specialists who can perform these tasks. These specialists need to come (in part at least) from graduates of national higher education systems that train SPS specialists. Strengthening capacities of SPS agencies is urgently needed to meet the increasing requirements for exports and trade facilitation, and to protect health.

The project is in line with the GMS 10-year strategic framework, 2012'-2022 and supports the thrust to facilitate cross-border trade and investment. The project will contribute to pillar 4 (cooperation in regional public goods) of ADB's Regional Cooperation and Integration Strategy. The project is aligned with the targets of the National Strategic Development Plan Update, 2009-2013 of Cambodia and the National Socio Economic Development Plan VII, 2011-2015 of the Lao PDR. Improving SPS management is explicitly reflected in various Cambodia and Lao PDR sector strategies and plans, and in the GMS core agriculture support program.

Trade facilitation remains a challenging agenda in the GMS. Previous experience shows the need to adopt a phased approach to formulate well-targeted and sequenced projects to ensure implementation of bilateral and regional commitments on cooperation and harmonization. Inadequate capacities at the country level are major constraints for effective regional cooperation in SPS arrangements. Development partners, such as the United Nations agencies, the World Bank and bilateral agencies support various aspects of SPS capacity building in the GMS, but ongoing projects have not addressed SPS issues in a comprehensive manner. Preparatory work has been firmly anchored in the lessons of international experiences that stress the need for prevention rather than end-of-pipe controls, which have proven to be costly and frequently ineffective. Involvement of the private sector and civil society in SPS capacity building is necessary to ensure the right technical issues and challenges are addressed and for longer-term sustainability. During the project preparation phase, workshops to consult the private sector on SPS issues were held in Cambodia and the Lao PDR, which contributed to the overall project design. Likewise, coordination with the GMS working group on agriculture has been maintained.

Impact AFF products become safer, more efficiently produced, and traded in greater quantities
Project Outcome
Description of Outcome Enhanced SPS management system and provision of SPS services.
Progress Toward Outcome

LAO SPS-Re plant improvement, continuous progress has been made in the development of pest lists based on the completed pest lists for certain crops. Re animal issues, after some delays, a targeted transboudary animal disease surveillance program was planned with kay activities to commence in 2015. In academic education, all 3 SPS curricula on plant health, animal health and food safety have been prepared. The construction of the shared laboratory building is expected to be completed by Nov 2015. Food Safety program made very good progress, especially with their tourist industry support activities, which are supported by the food safety consultants who assisted with the design of IEC awareness materials and helped to develop the scorecard for use in the pilot program for three provinces.

CAM SPS--A second review mission was fielded on 14-20 Nov 2015. The projet has progressed well since the last review mission in May 2014 particularly with the initiation of technical activities. contract awards, disbursements and procurement.

Implementation Progress
Description of Project Outputs

Strengthened surveillance and inspection programs

Improved regional cooperation and harmonization

Enhanced education levels and university training of SPS specialists

Effective project management

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

LAO SPS-A second review mission was fielded from 8-14 October 2014. The project has made good progress since last mission in March 2014, particularly in procurement, conduct of training and technical workshops and in effective implementation of technical activities funded under the project. Re plant improvement, conitnuous progress has been made in the development of pest lists based on the completed pest lists for certain crops. Re animal issues, after some delays, a targeted transboudary animal disease surveillance program was planned with kay activities to commence in 2015. In academic education

CAM SPS- Plant health:EA has conducted 3 surveys to collect "pest" samples for rice and corn verified by international taxomonists. With the project support,CAM will make a major step forward in addressing SPS issues associated with the export of key agricultural products.Animal health: 2 mojor activities for TAD outbreak response and TAD surveillance were ready to be launched as of last review mission in Nov 2015. Response team for food and mouth disease had been fileded. Education: completed 4 training activities. Updated draft curricula for all 3 SPS subjects have been prepared by the curriculum experts.

Geographical Location
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects na
Involuntary Resettlement na
Indigenous Peoples na
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Advance action for Procurement and Technical packages.
Procurement Advance action for Procurement and Technical packages.
Responsible ADB Officer Lingling Ding
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Ministry of Agriculture, Forestry & Fisheries# 40 Norodom Blvd.
Phnom Penh
Cambodia
Timetable
Concept Clearance 23 Nov 2010
Fact Finding 22 Aug 2011 to 14 Sep 2011
MRM 24 Nov 2011
Approval 26 Jun 2012
Last Review Mission -
Last PDS Update 26 Mar 2015

Grant 0296-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Jun 2012 01 Aug 2012 19 Sep 2012 28 Feb 2018 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 11.46 Cumulative Contract Awards
ADB 11.00 26 Jun 2012 6.84 0.00 62%
Counterpart 0.46 Cumulative Disbursements
Cofinancing 0.00 26 Jun 2012 4.30 0.00 39%

Loan 2873-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Jun 2012 16 Aug 2012 08 Oct 2012 28 Feb 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 11.41 Cumulative Contract Awards
ADB 11.00 26 Jun 2012 4.89 0.00 48%
Counterpart 0.41 Cumulative Disbursements
Cofinancing 0.00 26 Jun 2012 4.36 0.00 43%

Loan 2874-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Jun 2012 01 Aug 2012 19 Sep 2012 28 Feb 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 3.00 Cumulative Contract Awards
ADB 3.00 26 Jun 2012 1.25 0.00 45%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Jun 2012 1.20 0.00 43%

TA 8096-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Jun 2012 - 26 Jun 2012 31 Aug 2017 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
750,000.00 0.00 0.00 0.00 0.00 0.00 750,000.00 26 Jun 2012 381,844.88
Title Document Type Document Date
Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project - Cambodia Procurement Plans Oct 2013
Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project - Lao People's Democratic Republic: Procurement Plan Procurement Plans Oct 2013
Trade Facilitation: Improved Sanitary and Phytosanitary (SPS) Handling in Greater Mekong Subregion Trade Project: Project Data Sheet (Khmer Translation) Translated PDS Jan 2013
Trade Facilitation: Improved Sanitary and Phytosanitary (SPS) Handling in Greater Mekong Subregion Trade Project: Project Data Sheet (Lao Translation) Translated PDS Oct 2012
Loan Agreement (Special Operations) for Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project Loan Agreement (Special Operations) Aug 2012
Financing Agreement for Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project Financing Agreement Aug 2012
Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project - Lao People's Democratic Republic Project/Program Administration Manual Jun 2012
Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project Reports and Recommendations of the President Jun 2012
Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project - Cambodia Project/Program Administration Manual Jun 2012

Safeguard Documents

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