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

Sovereign Project | 43120-013 Status: Approved

Summary

ADB is helping Cambodia and the Lao People’s Democratic Republic strengthen sanitary and phytosanitary systems (SPS) to facilitate trade and protect public health. The project will establish and enhance surveillance and inspection programs for plant health, animal health, and food safety. It will improve training of specialists, and promote regional cooperation and harmonization of SPS measures.

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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 On track. Please see details below.
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

" Plant Halth

On track. The Plant Health program has made significant progress towards achievement targets. Overall progress is 55%.

Completion of 8 pest list surveys (for rice, corn, banana, cassava, water melon, tobacco, sorghum and Sacha Inchi. Agreed MOUs with PRC on import conditions for 6 crops (rice, corn, water melon, cassava, banana and Sacha Inchi). PRC has now approved the MOU for Sacha Inchi and will be concluded this year. The pest lists for sorghum, Job's Tear and rubber will soon be submitted to PRC, presumably leading to MOUs for these crops within this year. Market access agreement concluded with Thailand for tobacco.

" Animal Health

On track. The Animal Health program has also made good implementation progress, especially for transboundary animal health (TAD) control. Overall progress is 50%.

- Design and plan for the surveillance activities for TAD are in place and the pilot stage of its implementation commenced in August 2015.

- Successful management of FMD outbreaks in two locations.

- Installation of furniture and laboratory equipment for the National Animal Health Center (NAHC) laboratory, which is now fully operational.

- Regional and domestic study tours have been conducted and one course in veterinary drugs has been completed for DOLF and provincial staff.

- Animal Feed Unit staff trained in heavy metals and pesticides residue testing and conducted two courses to train epidemiology and provincial staff to conduct risk assessment.

- Bilateral meetings were conducted with neighboring countries to discuss and agree on TAD control measures along the borders and to improve technical collaboration and coordination in order to facilitate cross border trade and comply with the SPS Agreement.

" Food Safety

On track. The Food Safety program has made good progress, especially with food safety surveillance. Overall progress is 60%.

- Surveillance plan has been drafted

- Management of a meat poisoning outbreak in the South and mushroom poisoning outbreaks in 3 provinces, and issuance of public notices through INFOSAN Alerts.

- Operation of the new mobile food laboratory, 500 samples of food contaminations have been collected in 6 provinces and tested for borax and formalin.

- The Tourist Industry Support program has progressed well with the development and pilot testing of the checklist and grading system.

- Training courses to raise the skills of auditors and pilot training for 60 people from restaurants and food enterprises conducted in Vientiane, Luang Prabang and Champassak.

- Staff have participated in short-term training in Thailand to strengthen information technology skills and establish a market access database.

- Study tours to Vietnam and Thailand on first-time market access approval and import control procedures, and a draft Market Access Study document was prepared and presented at a national workshop along with draft guidelines for import handling procedures.

- Staff participated in a bilateral working group meeting with neighboring countries to facilitate bilateral cooperation and information sharing on food safety surveillance activities.

" Education

On track. The Academic Education program has made very good progress. Overall progress is 66%.

- Curriculum improvement, which have incorporated SPS into the curricula of three departments: plant protection, veterinary medicine, and food technology and rural economy departments.

- Teaching materials for the improved curricula are being prepared and related training activities are ongoing.

The FA-NUOL teaching facility building is under construction and will be completed this year, and all the vehicles and major laboratory procured under the Project are operational.

- Three FA-NUOL staff are undergoing two-year postgraduate training at universities in Thailand, and two staff of the Plant Protection Department and two from the Department of Food Technology were provided with intensive overseas training on SPS agreements, and on the International Plant Protection Convention and the management of phytosanitary risk.

CAM SPS:As of Q1 2015

Plant Health: (Pest surveillance on rice and maize). Completed 3 sets of surveys, 1 ongoing, and 1 set under review.

Animal Health: Completeed workshop on pest list compilation for rice and maize. Construction of Post Entry Quarantine Greenhouse started in March and completed in June 2015. Development of software for the Upgrading of existing database and mgt systems is ongoing. Animal health surveillance: Annual surveillance program for TAD was completed for 2014. Four training/workshops have been completed.

Food Safety: Surveillance-Annual surveillance program for safety of street food and restaurants was completed in June 2014. 11 trainigs/workshops have been completed as of Mar 2015.

Education: The construction of new microbiology laboratory building at the Royal University of Agriculture (RUA) campus commenced in Feb 2015. 6 workshops (on upgraing SPS curricula, plant/animal/food safety, GMPs) have been completed in RUA as of March 2015.

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 24 Sep 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 7.02 0.00 64%
Counterpart 0.46 Cumulative Disbursements
Cofinancing 0.00 26 Jun 2012 5.26 0.00 48%

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 5.11 0.00 50%
Counterpart 0.41 Cumulative Disbursements
Cofinancing 0.00 26 Jun 2012 5.40 0.00 53%

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 1.84 0.00 67%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Jun 2012 2.02 0.00 73%

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 454,933.15
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

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

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