fbpx 43120-013: CAM/LAO: Trade Facilitation: Improved Sanitary and Phytosanitary (SPS) Handling in Greater Mekong Subregion Trade Project | Asian Development Bank

Lao People's Democratic Republic: CAM/LAO: Trade Facilitation: Improved Sanitary and Phytosanitary (SPS) Handling in Greater Mekong Subregion Trade Project

Sovereign (Public) Project | 43120-013 Status: Active

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.

 
Project Name CAM/LAO: Trade Facilitation: Improved Sanitary and Phytosanitary (SPS) Handling in Greater Mekong Subregion Trade Project
Project Number 43120-013
Country Lao People's Democratic Republic
Cambodia
Regional
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant 0296-LAO: LAO: Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project
concessional ordinary capital resources lending / Asian Development Fund US$ 11.00 million
Loan 2873-LAO: CAM: Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project
concessional ordinary capital resources lending / Asian Development Fund US$ 11.00 million
Loan 2874-LAO: LAO: Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project
concessional ordinary capital resources lending / Asian Development Fund US$ 3.00 million
TA 8096-LAO: Improving Sanitary and Phytosanitary (SPS) Handling in Greater Mekong Subregion Trade
Technical Assistance Special Fund US$ 750,000.00
Grant 0546-LAO: Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project
concessional ordinary capital resources lending / Asian Development Fund US$ 10.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
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 and aligned with the Lao PDR Ministry of Agriculture and Forestry's Agricultural Development Strategy, 2011 -2020.
Project Outcome
Description of Outcome Enhanced SPS management system
Progress Toward Outcome As of June 2021, the physical progress is 96% against elapsed period of 93%; cumulative contract award is $9.123 million (91%) and disbursement is $9.326 million (93%) against net grant amount. The project has extended the closing date to 30 June 2022. 27 new MOUs were signed of which: 15 Import Permit have been signed with Vietnam comprising of Corn, Cassava, Banana, Sticky rice, Passion Fruit, Pomelo, Mango, Citrus, Pomelo, Carrot, Mustard leaf (Phak Kaat), Onion, Napier grass, Lettuce and Jack fruit from May 2019 until Feb 2020; and 12 declaration of import permit (MOUs) have been signed with DOA of Thailand for allow import of Citrus, Cassava, Soybean, Local banana, Vegetables, Chilly, Passion Fruit, Potato, Papaya, Tomato, Pumpkin and Jatropha from December 2019 to March 2020.
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

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

Output 1:

Overall progress under this output is 93%.

- Progress under the plant health program. As of 30 June 2021, 47 pest surveys (pest and diseases) were completed, which resulted in update of and finalization of pest lists for 30 crops. These facilitated additional (i) twelve Memorandums of Understanding (MOU) were signed with Thailand for the export of, peanut with kernel, citrus, cassava, soybean, local banana, vegetables, chilly, passion fruit, potato, papaya, tomato and jatropha; (ii) fifteen export permits were signed with Viet Nam on the export conditions for corn, cassava, banana, sticky rice, passion fruit, pomelo, mango, citrus, green oranges, carrot, mustard leaf (Phak Kaat), onion, napier grass, lettuce and jack fruit; and (iii) one MOU was signed with the People's Republic of China (PRC) the export of sweet potato to PRC.

- Progress under the animal health program. Surveillance plan for transboundary animal diseases (TAD) control, guidelines for national TAD surveillance procedures, and guidelines on laboratory testing protocols for TAD control prepared under the original project are being implemented. Early Detection-Warning and Rapid Response System (DWRS) for animal diseases have been established in all 18 provinces of which the project has supported DWRS establishment in four target provinces. Risk-based surveillance of transboundary animal diseases and awareness of transboundary animal diseases has been established in two new target provinces of Bolikhamxay and Khammuane.

- Progress under the food safety program. Risk-based, programmed annual food safety surveys and inspection capacity have been established in six target provinces:Vientiane Capital, Luangprabang and Champasak, Oudomxay, Savannakhet and Vientiane province. Update of risk-based inspection and surveillance manual, including surveillance, sampling and laboratory analysis protocol were completed.

Output 2:

Overall progress under this output is 86%. As 30 June 2021, under plant health program, five bilateral working group meetings were conducted: (i) with Thailand on information sharing of updated pest list,

locust outbreak, and SPS related import permit conditions for passion fruits; (ii) with Viet Nam on information exchange, pest management and surveillance, and SPS related import permit conditions for dragon fruits; and (iii) with PRC on updated pest list, locust outbreak and preparation for the export of 22 more crops to PRC.

Output 3:

Overall progress under this output is 92%. Construction of the teaching and laboratory facilities, and development and revision of curricula for the faculty of agriculture of the National University of Lao PDR for (i) bachelor's degree in sciences in plant protection (4 years), (ii) bachelor's degree in veterinary (6 years), and (iii) bachelor of sciences in agricultural economics and food technology (4 years) were completed under the original project. The facilities and curricula have been used since academic year 2015/2016.

Geographical Location Lao People's Democratic Republic - Nation-wide, Louangphabang, Pakxe, Vientiane; Cambodia - Nation-wide, Kampong Saom, Phnom Penh, Prey Veng, Siem Reap, Takeo
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 Xayyavong, Phoxay
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Lao Resident Mission
Executing Agencies
Ministry of Agriculture, Forestry & Fisheries
H. E. Chhea Song
# 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 12 Aug 2021

Grant 0296-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Jun 2012 01 Aug 2012 19 Sep 2012 28 Feb 2018 - 30 May 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 07 Sep 2021 11.00 0.00 100%
Counterpart 0.46 Cumulative Disbursements
Cofinancing 0.00 07 Sep 2021 11.00 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

Grant 0546-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
03 Oct 2017 13 Nov 2017 05 Jan 2018 30 Jun 2021 30 Jun 2022 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.32 Cumulative Contract Awards
ADB 10.00 07 Sep 2021 9.10 0.00 91%
Counterpart 0.32 Cumulative Disbursements
Cofinancing 0.00 07 Sep 2021 9.54 0.00 95%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 2873-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Jun 2012 16 Aug 2012 08 Oct 2012 28 Feb 2018 31 Aug 2018 12 Apr 2019
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 11.41 Cumulative Contract Awards
ADB 11.00 07 Sep 2021 9.06 0.00 100%
Counterpart 0.41 Cumulative Disbursements
Cofinancing 0.00 07 Sep 2021 9.06 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 2874-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Jun 2012 01 Aug 2012 19 Sep 2012 28 Feb 2018 - 15 Jun 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 07 Sep 2021 2.74 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 07 Sep 2021 2.74 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

TA 8096-LAO

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 07 Sep 2021 555,198.98
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory

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
Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project - Additional Financing: Report and Recommendation of the President Reports and Recommendations of the President Sep 2017
Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project - Additional Financing: Project Administration Manual Project/Program Administration Manual Sep 2017
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 - Cambodia Project/Program Administration Manual Jun 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

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

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
Service Provider: GMP Certification Firm - Consulting Closed 31 Jul 2019 11 Aug 2019
Service Provider-Food Safety Handling and GMP Grading Audit Firm - Consulting Closed 14 May 2019 20 May 2019
International Plant Pathologist Individual - Consulting Closed 26 Feb 2019 28 Feb 2019
National Pest (Entomology) Consultant Individual - Consulting Closed 28 Oct 2018 04 Nov 2018
International GMP Certification Training Specialist Individual - Consulting Closed 13 Oct 2018 17 Oct 2018
National GMP Certification Training Specialist Individual - Consulting Closed 08 Sep 2018 14 Sep 2018
International Rodent Pest Specialist Individual - Consulting Closed 22 Aug 2018 26 Aug 2018
International Weed Science Specialist Individual - Consulting Closed 22 Aug 2018 26 Aug 2018
National Food Safety Specialist Individual - Consulting Closed 18 Aug 2018 22 Aug 2018
National Plant Disease (Pathology) Specialist Individual - Consulting Closed 12 Aug 2018 22 Aug 2018
International Forest Disease (Pathology) Specialist Individual - Consulting Closed 12 Aug 2018 22 Aug 2018
International Forest Insect (Entomology) Pest Specialist Individual - Consulting Closed 11 Aug 2018 22 Aug 2018
International IPM Standards & Training Specialist Individual - Consulting Closed 10 Jul 2018 16 Jul 2018
National ICT Specialist Individual - Consulting Closed 30 Jun 2018 04 Jul 2018
National Financial Management Specialist Individual - Consulting Closed 20 Jun 2018 26 Jun 2018
National Weed Science Specialist Individual - Consulting Closed 13 Jun 2018 18 Jun 2018
International Food Safety Surveillance Specialist Individual - Consulting Closed 13 Jun 2018 17 Jun 2018
National Fumigation/Audit Training and Fumigation Protocols Specialist Individual - Consulting Closed 13 Jun 2018 18 Jun 2018
National IPM Standards & Training Specialist Individual - Consulting Closed 04 Jun 2018 07 Jun 2018
National Rodent Pest Specialist Individual - Consulting Closed 04 Jun 2018 10 Jun 2018
International Lab Management Specialist (Pesticides) Individual - Consulting Closed 04 Jun 2018 07 Jun 2018
National Laboratory Specialist Individual - Consulting Closed 04 Jun 2018 07 Jun 2018
International ICT Specialist Individual - Consulting Closed 26 May 2018 31 May 2018
International Veterinary Drug Residue Individual - Consulting Closed 24 May 2018 30 May 2018
International Fumigation Specialist Individual - Consulting Closed 16 May 2018 25 May 2018
National Market Access Opportunities & Export Assurance Compliance Specialist Individual - Consulting Closed 16 May 2018 25 May 2018
National Risk Assessment and Enforcement of Strategy and Regulations on Animal Trade Specialist Individual - Consulting Closed 01 May 2018 04 May 2018
International Market Access Opportunities & Export Assurance Compliance Specialist Individual - Consulting Closed 24 Apr 2018 07 May 2018
International Risk Assessment and Enforcement of Strategy and Regulations on Animal Trade Specialist Individual - Consulting Closed 25 Mar 2018 05 Apr 2018
International Specialist- Primary Food Chain Strategy (Meat) Individual - Consulting Closed 25 Mar 2018 05 Apr 2018
TAD Laboratory Specialist Individual - Consulting Closed 25 Mar 2018 05 Apr 2018
Procurement Specialist Individual - Consulting Closed 08 Mar 2018 14 Mar 2018
Financial Management Specialist Individual - Consulting Closed 03 Mar 2018 14 Mar 2018
International Veterinary Drug Residue Individual - Consulting Closed 01 Mar 2018 07 Mar 2018
International Taxonomist for Pathogen (Bacteria) on Pepper and Banana Individual - Consulting Closed 01 Mar 2018 07 Mar 2018
Project Administrative Assistant Individual - Consulting Closed 12 Nov 2017 18 Nov 2017
Office Secretary Individual - Consulting Closed 12 Nov 2017 18 Nov 2017
International Project Management and Procurement Advisor Individual - Consulting Closed 07 Nov 2017 13 Nov 2017
International Taxonomist for Pathogen (Bacteria) on Cassava, Citrus, and Mango Individual - Consulting Closed 25 Aug 2017 31 Aug 2017
International Taxonomist for Virus on Cassava, Citrus, and Mango Individual - Consulting Closed 25 Aug 2017 31 Aug 2017
International Taxonomist for Nematode on Cassava Individual - Consulting Closed 21 Apr 2017 27 Apr 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
The Supply of Laboratory Equipment for New Microbiology Laboratory at Rua (ISPH/GD/2016/010) Loan 2873 22 Feb 2017 Dynamic Scientific Co., Ltd. 12301 Cambodia Ministry of Agriculture, Forestry & Fisheries Supply of Goods 220,411.00 220,411.00