41435-054: Tonle Sap Poverty Reduction and Smallholder Development Project - Additional Financing | Asian Development Bank

Cambodia: Tonle Sap Poverty Reduction and Smallholder Development Project - Additional Financing

Sovereign (Public) Project | 41435-054 Status: Active

An additional financing to the Tonle Sap Poverty Reduction and Smallholder Development Project is proposed for seven provinces (Banteay Meanchey, Battambang, Kampong Cham, Kampong Thom, Prey Veng, Siem Reap, and Tboung Khmum) in Cambodia. The additional financing will enhance agricultural productivity and improve access to markets in 270 target communes through investments in climate-resilient productive infrastructure, building capacity in disaster risk management of the communities and commune councils, and creating an enabled environment for agricultural productivity, diversification and climate resilience.

Project Details

Project Officer
Hem, Chanthou Southeast Asia Department Request for information
Country
  • Cambodia
Modality
  • Grant
  • Loan
Sector
  • Agriculture, natural resources and rural development
 
Project Name Tonle Sap Poverty Reduction and Smallholder Development Project - Additional Financing
Project Number 41435-054
Country Cambodia
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0542-CAM: Tonle Sap Poverty Reduction and Smallholder Development Project - Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 4.28 million
Loan 3570-CAM: Tonle Sap Poverty Reduction and Smallholder Development Project - Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 45.73 million
Loan 8331-CAM: Tonle Sap Poverty Reduction and Smallholder Development Project - Additional Financing
International Fund for Agricultural Development US$ 10.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural production - Irrigation

Gender Equity and Mainstreaming Effective gender mainstreaming
Description An additional financing to the Tonle Sap Poverty Reduction and Smallholder Development Project is proposed for seven provinces (Banteay Meanchey, Battambang, Kampong Cham, Kampong Thom, Prey Veng, Siem Reap, and Tboung Khmum) in Cambodia. The additional financing will enhance agricultural productivity and improve access to markets in 270 target communes through investments in climate-resilient productive infrastructure, building capacity in disaster risk management of the communities and commune councils, and creating an enabled environment for agricultural productivity, diversification and climate resilience.
Project Rationale and Linkage to Country/Regional Strategy Given the success of the current project, executing agencies have requested ADB support for an additional financing to scale up the current project activities. Demand for agricultural production infrastructure for poverty reduction in the Tonle Sap Basin is high; over 90% of the poor live in rural areas and are dependent on small-scale agricultural production for their livelihood. Frequency and intensity of disasters such as floods and droughts in the Tonle Sap Basin require interventions to enhance climate resilience and reduce disaster risk. The additional financing will also strengthen ADB''s basin-scale strategic approach in the Tonle Sap basin by creating synergies with other projects, such as the Climate-Resilient Rice Commercialization Sector Development Program (Rice SDP). Further, by using the additional financing modality, momentum of successes can be built on, and use of the current project resources optimized.
Impact Livelihoods and climate resilience in target communes in seven provinces in the Tonle Sap Basin improved.
Project Outcome
Description of Outcome Agricultural productivity increased, climate and disaster resilience strengthened, and access to markets improved in 271 communes in seven provinces in the Tonle Sap Basin.
Progress Toward Outcome Too early to report.
Implementation Progress
Description of Project Outputs

Rural productive infrastructure and livelihood improved with capacity in disaster risk management enhanced.

Enabling environment for increased agricultural productivity, diversification and climate resilience created.

Project management strengthened.

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

Output 1: Rural productive infrastructure and livelihood improved with capacity in disaster risk management enhanced.

a. Rural road and small-scale irrigation

To assist the NCDDS and communes in selecting the subprojects, preparing the project designs, and bidding documents for works and construction supervision, NCDDS is recruiting the special service provider (SSP-6) to be responsible for these tasks. The contract will be awarded on 25 September 2018.

The mission found that the project teams at the national and the seven provincial teams are ready to implement the civil work subprojects. In August 2018, ADB provided a no objection to the Procurement Manual for Works at Provincial Level which was prepared by the NCDDS.

b. Support to new and old livelihood improvement groups

During the TSSD, 1,205 LIGs (total members of 29,207 families) were established and are operational across five target provinces of Banteay Meanchey, Siem Reap, Kampong Thom, Kampong Cham and Tboung Khmum. These existing LIGs have formed and formally registered with the Royal Government of Cambodia (RGC) their association, namely Farmer Livelihood Improvement Association (FLIA). The FLIA can be considered the single largest Farmer Organization (FO) in Cambodia given its size. Under the TSSD-AF, an additional 759 LIGs will be established in the two new target provinces, BTB and PVG, and some additional communes in KPT province.

FLIA should recruit a professional NGO or firm to continue providing monthly or bi-monthly financial checks to LIGs from 1 July 2019 onwards. NCDDS agreed to train the FLIA committee on the consultant firm recruitment process and assist the FLIA in recruiting the consulting firm or NGO to provide the services. SBK will also assess the performance of LIGs to see if instead of monthly checks, can some of LIGs conduct a bi-monthly check or not in order to save some operational costs to support FLIA operation.

To establish the 759 new LIGs and assist the new LIGs as well as the existing LIGs to do saving, NCDDS recruited another SSP for LIG support (SSP7) and the contract was awarded to SBK on 25 September 2018 with an amount of $1,662,345.60. The consultants will complete mobilization by 1st October 2018 and submit their inception report by 15 November 2018. By incorporating comments from ADB and IFAD project teams, NCDDS have revised the Guidelines for LIG Formation; and published and provided training to all provincial project teams.

c. Disaster risk reduction (DRR) training and planning for commune councils

NCDMS is required to provide DRR and planning training as part of Output 1. As per the PAM, the targets for the communes to receive the DRR trainings and planning will be 100 CCs Upon mobilization of project implementation consultant (PIC), the PIC consultants will assist NCDMS and NCDDS to finalize the letter of agreement (LOA) regarding the DRR training and planning and submit to ADB for no objection. It is expected that the activities under this sub-output 1 will commence from Q1 2019.

Output 2: Enabling environment for increased agricultural productivity, diversification, and climate resilience created.

An overall annual work-plan for the whole component was developed and approved in July 2018. However, no fund shave yet been withdrawn for the component activities and SSP8, a critical service provider for this component and PIC, the key consultant firm to support the project implementation, were not yet recruited.

Although no fund was yet made available for the activities of the component, the Provincial Department of Agriculture, Forestry and Fisheries (PDAFF) in most of the old target provinces (BMC, SRP, KPT, KPC and TBK) continued their support to the beneficiary groups by implementing the activities proposed in the annual work-plan. PDAFFs in the new target provinces (PVG and BTB) also have made efforts along the same lines. Despite these efforts, no significant contribution was achieved to the project so far.

a. Value Chain Support and Market Linkages

This sub-component provides support to three main areas: (i) development of the value chains for rice, chicken, and vegetables; (ii) establishment of 364 MIGs for rice, chicken, vegetables and fish-farming with the introduction of a brokering service for their development; and (iii) small- and medium-enterprise development, mainly for chick and chicken production and chicken feed, but also including relevant small- and medium enterprises in other value chains. A special service provider for agriculture value chains and market linkages (SSP 8) is to be recruited , by MAFF under the IFAD loan, to provide support to these three areas.

Under the first area of support, SSP 8 will train district agricultural office staff to act as value chain cluster organizers together with the CCs. Under the second area of support, district and commune brokers recruited by SSP 8 will establish at least 364 MIGs initially from amongst the 18,200 LIG households where farmers are willing to adopt the Good Agriculture Practices and willing to produce for market. Under the thirdly area of support, SSP 8 will provide: (i) capacity building on business literacy; (ii) capacity building on extension service; and (iii) capacity building in business plan development to all actors in the concerned value chains.

b. Information and communication technology and commune mobile access program

The commune mobile access program is to be implemented by a team of individual consultants who are required to support a network of commune mobile access workers (CMAWs) recruited in all TSSD communes. This team of individual consultants, supported by the PIC and the MPTC, will provide digital content as requested by MAFF and NCDDS based on the needs of targeted local farmer groups. They will also provide needed technical skill training to CMAWs and other digital content users. CMAWs will access new training and extension materials for all project farmer groups, support DRR training with additional information and communication technology (ICT) based materials to CCs and act as an information exchange between various stakeholders of the project. MPTC will continue to run the TSSD-AF website and provide training to the CMAWs. The mission discussed with former TSSD project manager from ministry of posts and telecommunications (MPTC) and MAFF project manager on the implementation arrangement. However, in the detailed cost estimate, there is no allocation set aside for the MPTC team. Upon, the mobilization of the PIC, ADB and MAFF should review the needs for MPTC and the budget and if needed prepare the reallocations for approval by government and ADB higher authority.

The team of individual consultants and CMAWs have been hired, but core activities and support for the latter are yet to be materialized. The PIC is not yet on board and thus no support has been made available to the team of individual consultants. It is expected that the PIC will be recruited by end of October. It is recommended that MAFF speed up the recruitment process so that the PIC is on board by end of October 2018. Meanwhile, MAFF and MPTC should reconfigure and adapt the TSSD's former website to address the needs of TSSD-AF and design simple training modules and conduct training for CMAWs. The team of individual consultants should prioritize their support to CMAWs by focusing on training them on marketing (of rice, vegetables, and chickens), and Good Agricultural Practices (in vegetables and chickens) during the remainder of the year as rice harvesting and vegetables production season is approaching, and agricultural market and farm budget data collection.

Output 3: Project Management Strengthened

To date, the Project prepared and received approval from ADB on the 2018 annual workplan and budget and almost completed the preparatory activities to fully implement the project including opening project bank accounts. NCDDS have already received the first advances from ADB funding sources amounting to $2.4 million from ADB loan and $0.12 million ADB grant.

Advance actions were made for (i) goods which include project vehicles, motorcycles, and office equipment; (ii) works which include the two core subprojects; and (iii) consulting services which include the PIC, SSP6, SSP7 and SSP8. The procurements for goods were completed. The procurement for the works needs to implement some corrective actions regarding social safeguards and the recruitments of the four consulting packages are at the final stage of recruitment and are expected to be mobilized by Q4 2018.

Geographical Location Banteay Meanchey, Battambang, Kampong Cham Province, Kampong Thom, Prey Veng, Siem Reap, Tboung Khmum
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects

The additional financing is expected to increase agricultural productivity, which will increase demands on water and has potential to increase the use of chemical pesticides. An initial environmental examination (IEE) including an environmental management plan (EMP) has been prepared for two representative subprojects. The IEE includes a detailed water balance and has confirmed that the water sources are sustainable. Training on integrated pest management approaches is included in the capacity building program. Public consultations were carried out and will continue during subproject implementation. The IEE and the EMP will serve as a template for future subprojects, which are not subject to domestic environmental assessment requirements.

An environmental assessment and review framework has been prepared to provide guidance on processes to be followed for future subproject selection, screening, assessment, and implementation. Subprojects classified category A will not be financed. Adequate resources have been allocated for environmental safeguards assessment, implementation, monitoring, and reporting. Consulting services will provide capacity development support for EMP implementation. Environmental complaints will be handled through a project safeguards grievance redress mechanism. The environmental assessment and review framework and the draft IEE were disclosed on the ADB website on 18 June 2017. The final IEE will be updated and disclosed following detailed engineering design. The project is classified as medium risk from climate change impacts. A climate and disaster risk assessment has been prepared and all subprojects will be screened for climate and disaster risks and incorporate risk reduction measures. The representative subprojects include flood-resilient design specifications such as strengthening of canal walls, erosion and scour protection for sluice gates, increase in road height, additional drainage structures, and slope stabilization measures.

Involuntary Resettlement There will be no significant involuntary physical or economic dislocation, relocation, or loss of livelihood. Land acquisition will be limited and is expected to comprise (i) thin strips of land to accommodate irrigation canal construction and access road improvement within irrigation schemes, or (ii) minor road widening to accommodate raised profiles and reduced slopes on verges when roads are rehabilitated to incorporate climate resilience and DRR measures. These strips of land may be acquired through voluntary donation, negotiated settlement, or involuntary land acquisition and resettlement for those not willing to donate land voluntarily. Since no involuntary resettlement is expected in the two representative subprojects, no land acquisition and resettlement plan is required, although two due diligence reports have been prepared. A resettlement framework has been prepared and will be used to (i) further screen and select subprojects during implementation, rejecting all category A subprojects; (ii) guide the preparation of land acquisition and resettlement plans where required; and (iii) conduct and report the due diligence required to establish voluntary land donation bona fides.
Indigenous Peoples An indigenous peoples planning framework has been prepared. Only nine out of the 271 communes are inhabited by indigenous peoples. The indigenous peoples will benefit alongside majority communities, but efforts will be made to ensure their participation. The executing agencies will ensure that all ethnic minority groups in and around proposed subproject locations are (i) consulted on their willingness to participate and the suitability of the sites and subproject activities, and (ii) given an equal opportunity to participate in subproject activities including training. For the two representative subprojects, no indigenous peoples are present and no indigenous peoples plan is required. Screening will be conducted for all subprojects following procedures set out in the indigenous peoples planning framework, and if indigenous peoples are the sole or the overwhelming majority of direct project beneficiaries, and when only positive impacts are identified, the elements of an indigenous peoples plan could be included in the overall subproject design rather than in a separate indigenous peoples plan. If adverse impacts are expected, an indigenous peoples plan will be prepared.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations with the executing agency and stakeholders of the original Tonle Sap Project were conducted to ensure continuity and further strengthening of the design of the additional financing.
During Project Implementation
Responsible ADB Officer Hem, Chanthou
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Cambodia Resident Mission
Executing Agencies
Ministry of Agriculture, Forestry & Fisheries
# 40 Norodom Blvd.
Phnom Penh
Cambodia
National Committee for Sub-National Democratic Development Secretariat
[email protected]
Ministry of Interior Norodom Blvd,
Sangkat Tonle Bassac,Khan
Chamcar Mon, Phnom Penh
Timetable
Concept Clearance 14 Sep 2016
Fact Finding 21 Apr 2017 to 05 May 2017
MRM 22 Jun 2017
Approval 25 Sep 2017
Last Review Mission -
Last PDS Update 27 Sep 2018

Grant 0542-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Sep 2017 09 Jan 2018 04 Apr 2018 31 Jul 2023 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4.28 Cumulative Contract Awards
ADB 4.28 25 Sep 2017 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 25 Sep 2017 0.24 0.00 6%

Loan 3570-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Sep 2017 09 Jan 2018 04 Apr 2018 31 Jul 2023 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 51.73 Cumulative Contract Awards
ADB 45.73 25 Sep 2017 1.82 0.00 4%
Counterpart 6.00 Cumulative Disbursements
Cofinancing 0.00 25 Sep 2017 2.97 0.00 6%

Loan 8331-CAM

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 10.00 - 0.00 0.00 %

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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

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Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Provincial Livelihood Advisors Individual - Consulting Closed 12 Mar 2018 19 Mar 2018
Provincial Project Management Advisors Individual - Consulting Closed 12 Mar 2018 19 Mar 2018
Local Government Finance/Procurement Advisor Individual - Consulting Closed 12 Mar 2018 19 Mar 2018
Decentralization and Deconcentration Management Adviser Individual - Consulting Closed 08 Nov 2017 14 Nov 2017
Infrastructure Design and Supervision Consultant Firm - Consulting Closed 08 Nov 2017 12 Dec 2017
Livelihood Improvement Group Support Firm - Consulting Closed 08 Nov 2017 12 Dec 2017
Finance Adviser Individual - Consulting Closed 08 Nov 2017 14 Nov 2017

Contracts Awarded

No contracts awarded for this project were found