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

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Agricultural production - Livestock

Education / Tertiary

Industry and trade / Trade and services

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.

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.

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.

The Project outcome will be an enhanced SPS managements ystem that supports SPS managers, consumers, producers and traders.

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.

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.

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.