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Cambodia: TSSD- ADF Loan

Sovereign (Public) Project | 41435-013 Status: Active

ADB is helping Cambodia boost incomes and livelihood opportunities for thousands of poor households in four provinces in the Tonle Sap Basin region. The project will help establish commune-based livelihood improvement groups that will provide revolving funds to members to buy agricultural supplies such as seeds and fertilizers. It will improve agricultural productivity and access to markets.

 
Project Name TSSD- ADF Loan
Project Number 41435-013
Country Cambodia
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Grant 0186-CAM: Tonle Sap Poverty Reduction and Smallholder Development Project
concessional ordinary capital resources lending / Asian Development Fund US$ 27.30 million
Grant 0191-CAM: Tonle Sap Poverty Reduction and Smallholder Development Project
Government of Finland US$ 1.60 million
Grant 0192-CAM: Tonle Sap Poverty Reduction and Smallholder Development Project
International Fund for Agricultural Development US$ 6.69 million
Loan 2599-CAM: Tonle Sap Poverty Reduction and Smallholder Development Project
concessional ordinary capital resources lending / Asian Development Fund US$ 3.40 million
Loan 8243-CAM: Tonle Sap Poverty Reduction and Smallholder Development Project
International Fund for Agricultural Development US$ 6.69 million
Strategic Agendas Environmentally sustainable growth
Drivers of Change Gender Equity and Mainstreaming
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 Livelihoods in target communes in five provinces in Tonle Sap basin improved by 2020
Project Outcome
Description of Outcome Agricultural productivity increased and improved access to markets created in 196 communes in five provinces in Tonle Sap basin
Progress Toward Outcome

The project had performed very well and the successful implementation so far in many cases exceeded the targets provided in the original design and has provided a strong foundation upon which to develop follow-on activities to further upgrade rural infrastructure, enhance the network of Livelihood Improvement Groups (LIGs) for livelihood improvement, and further promote disaster risk management and agricultural productivity using climate resilient approaches. TSSD has bolstered government efforts in pushing further the decentralizations, particularly empowering the subnational levels to make and implement informed decisions.

The second phase of TSSD or The Tonle Sap Poverty Reduction and Smallholder Development - Additional Financing Project (TSSD-AF) was approved by ADB on 25 September 2017 and declared effective on 4 April 2018with a loan amount of $45.73million and a grant of $4.37 million, and a closing date of 31 July 2023. The project is co-financed by the International Fund for Agricultural Development (IFAD) with a loan of $10 million. The project outcome will be increased agricultural productivity and improved access to markets in 270 communes in seven provinces in the Tonle Sap Basin. The outputs will be: (i) rural productive infrastructure and livelihood improved with capacity in disaster risk management enhanced; (ii) enabling environment for increased agricultural productivity, diversification, and climate resilience created; and (iii) project management strengthened.

Implementation Progress
Description of Project Outputs

1. Community Driven Development through a commune block grant

a. Improving Rural Infrastructure

b. Improved capacity of smallholder farmers

c. Improved Commune Capacity for project management

2. Enabling Environment for Increased Agricultural Productivity and Diversification

a. Improved agricultural policy environment

b. Improved agricultural policy environment

c. Increased access to agricultural information and market data

3. Effective Project Management

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

Overall physical progress is satisfactory with 85% physical progress against the elapsed grant period of 80%. As of 30 June 2016, cumulative contracts awarded and disbursements were $41.35 million (83%) and $41.54 million (83.4%), respectively. Significant progress has been made towards achieving, and in some cases, exceeding the Project targets.

Under output 1 community driven development through a commune block grant, a total of 403 km of laterite/earth roads have been rehabilitated and irrigation systems have been improved to service 53,211 hectares of rice farmland against the targets of 90 km and 2,500 hectares, respectively. A number of 1,241 livelihood improvement groups (LIGs) have been established against the target of 1,200. Under output 2 enabling environment for increased agriculture productivity and diversification, The production of quality rice seeds to address a critical gap in rice production has exceeded the Project target.

Summary of progress per output

Output 1. Commune Development through a Block Grant

Currently 685 rural infrastructure sub-projects have been completed, comprising the construction of 403 km of rural roads and construction/rehabilitation of irrigation structures servicing 53,211 hectares. There are an additional 99 sub-projects identified for 2016 with 53 contract awards, of which 24 have commenced construction and 22 have completed construction.

1,241 livelihood improvement groups (LIGs) have been formed with a total membership of 30,050 households of which 82 percent are categorized as ID Poor 1 or 2 and 22 percent are Female Headed Households. Over 50,000 loans from the GRFs have been made so far to LIG members. The loans have focused on livestock raising (67 percent), rice production (18 percent) and cash crop production (7 percent). Although last year's drought adversely impacted rice production of many LIG members resulting in food shortage, good progress on livestock activities supported under the project has enabled farmers to receive additional income to buy enough rice and food for their families.

Output 2: Enabling Environment for Increased Agricultural Productivity and Diversification

For the introduction of Good Agricultural Practices (GAP) for fruit/vegetable production, training of trainer courses have been conducted in all provinces to develop the capacity of the project staff to implement the Farmer Field Schools for the GAP producer groups. There are 33 GAP producer groups established with a total of 756 (383 females) members. In addition, the development of a Master Plan for Crop production by 2030 in Cambodia is almost completed. In addition, contract farming agreements between farmers and groups and seed traders (including rice millers), with a total of 47 tons of rice seeds produced and sold.

Support for capacity development and production and storage facilities have been provided to the two Agriculture Stations which have produced 119 tons of certified rice seeds with sales of 109 tons, most of which were made to the 35 rice Seed producer Groups (RSPGs) that are being supported. Sixteen (16) storage warehouses have been constructed for the RSPGs and 31 small water pumps provided together with other small equipment and these groups have produced 1,660 tons of commercial rice seed to date.

A total of 1,075 on-farm demonstrations have been completed which includes 672 for crops, 383 for livestock and 20 for aquaculture. Field days have been conducted at every site either during the production cycle or at harvest with invitations extended to all LIGs in that commune to participate.

The project website (www.tssdcambodia.org) has been developed and regularly updated. The training videos have been gradually shared on Facebook and will be posted for wider sharing.

Output 3: Effective Project Management

Provincial and district monthly coordination meetings have been conducted on a regular basis. Good coordination of the agricultural activities is also maintained through the conduct of regular meetings and sharing of information. Full awareness of the content and scope of the annual work plan (AWPB) has been achieved through the conduct of planning workshops at the end of each year and provincial based launching workshops for the AWPB at the start of each year.

Geographical Location Kampong Cham, Kampong Cham, Siem Reap, Siem Reap, Sisophon, Sisophon, Stueng Saen, Stueng Saen
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 1241 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.

The Project adopted a participatory planning where all concerned parties have been engaged in the project annual planning process.

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 & Fisheries
Mr Sen Sovann
[email protected] ,
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 27 Sep 2018

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 - 30 Oct 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 27.28 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 08 Dec 2009 27.28 0.00 100%

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 1.60 Cumulative Contract Awards
ADB 0.00 08 Dec 2009 0.00 1.24 78%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 1.60 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 6.39 96%
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 - 18 Jul 2017
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 3.12 0.00 97%
Counterpart 5.47 Cumulative Disbursements
Cofinancing 0.00 08 Dec 2009 3.21 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - 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 6.07 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 6.69 17 Dec 2009 0.00 6.00 99%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Grant Agreement for Grant 0542-CAM: Tonle Sap Poverty Reduction and Smallholder Development Project - Additional Financing Grant Agreement Jan 2018
Loan Agreement (Ordinary Operations [Concessional]) for Loan 3570-CAM: Tonle Sap Poverty Reduction and Smallholder Development Project - Additional Financing Loan Agreement (Ordinary Resources) Jan 2018
Tonle Sap Poverty Reduction and Smallholder Development Project - Additional Financing: Procurement Plan Procurement Plans Sep 2017
Tonle Sap Poverty Reduction and Smallholder Development Project - Additional Financing: Gender Action Plan Gender Action Plans Sep 2017
Tonle Sap Poverty Reduction and Smallholder Development Project - Additional Financing: Project Administration Manual (As of Board Approval) Project/Program Administration Manual Aug 2017
Tonle Sap Poverty Reduction and Smallholder Development Project - Additional Financing: Report and Recommendation of the President Reports and Recommendations of the President Aug 2017
Tonle Sap Poverty Reduction and Smallholder Development Project - Additional Financing: Project Preparatory Technical Assistance Report Project Preparatory Technical Assistance Reports Sep 2016
Tonle Sap Poverty Reduction and Smallholder Development Project - Additional Financing: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Sep 2016
Tonle Sap Poverty Reduction and Smallholder Development Project Procurement Plans Oct 2013
Financing Agreement for Tonle Sap Poverty Reduction and Smallholder Development Project between the Kingdom of Cambodia and Asian Development Bank signed 27 December 2009 Financing Agreement Jan 2010
Tonle Sap Poverty Reduction and Smallholder Development Project Reports and Recommendations of the President Nov 2009
Tonle Sap Poverty Reduction and Smallholder Development Project Summary Poverty Reduction and Social Strategies Aug 2009
Tonle Sap Poverty Reduction and Smallholder Development Project Design and Monitoring Frameworks Aug 2009

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.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
External Safeguard Monitoring Entity (SSP9) Firm - Consulting Active 04 Jul 2019 02 Aug 2019
Financial Management Specialist Individual - Consulting Closed 25 Aug 2017 31 Aug 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
SPECIAL SERVICE PROVIDERS FOR STANDARD MANAGEMENT TRAINING & TECHNICAL TRAINING (SSP2) SBK RESEARCH Grant 0186 09 Aug 2017 SBK RESEARCH AND DEVELOPMENT CO. LTD. IN JV #43 CORNER STR. 317 & STR. 572 SGKT. BOEUNG KAK II KHAN TOUL KORK P. PENH. CAMBODIA Ministry of Agriculture Forestry & Fisheries 190,880.00
SERVICE PROVIDER FOR ANIMAL HEALTH AND PRODUCTION IMPROVEMENT PROGRAM (SSP3) Grant 0186 09 Aug 2017 CADTIS CONSULTANT CO. LTD. # 41D STR. 11C TRAPEANG CHHUK VILLAGE SGKT. TUEK THLA KHAN SEN SOK P. PENH CAMBODIA Ministry of Agriculture Forestry & Fisheries 221,340.00