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

Sovereign Project | 43120-013 Status: Active

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 Active
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
Concessional ordinary capital resources / Asian Development Fund US$ 11.00 million
Loan 2873-REG: CAM: Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project
Concessional ordinary capital resources / Asian Development Fund US$ 11.00 million
Loan 2874-REG: LAO: Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project
Concessional ordinary capital resources / 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

CAM-- As of 30 September, overall physical progress is estimated at 68% against an elapsed time of 75%. The current progress achieved by specific outputs are (i) Strengthening surveillance and inspection programs achieved 50%; (ii) Improved regional cooperation and harmonization achieved 42%; (iii) Enhance education levels and university training of SPS specialist achieved 85%; (iv) Effective project management achieved 82%.

LAO--As of 30 September 2016, overall physical progress is estimated at 82.5% against and elapsed time of 75%. The current status of output was: (i) Surveillance and Inspection 73%; (ii) Regional Cooperation and Harmonization - 59%; (iii) Enhanced Education - 88%; and (iv) Project Management 100%.

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)

CAM--(i) Plant Health: pest lists for rice and maize has been finalized; and development of pest list for cassava, mango and citrus is ongoing. The greenhouse, lab and lab equipment have been completed/delivered.

LAO--Nine pest lists developed. Fourteen pest surveys have been completed for rice (2), corn (2), banana, cassava, watermelon, tobacco, sorghum, sacha inchi, job's tear, rubber, maize and the outbreak for locusts, and this information has been uploaded on the IPPC website and share with regional trading partners.

CAM--(ii) Animal Health: 12 TAD outbreaks in five provinces have been responded; one TAD training for technical staff have been conducted; three TAD awareness training in four provinces have been conducted involving 1,600 farmers and stakeholders, three import handling awareness training have been concluded benefiting 800 farmers and stakeholders; two border surveillances have been completed, database management has been set up; and validation of protocol for analysis using Elisa screening test on drug residue has been completed.

LAO--Animal disease outbreak response capacity has already been improved through new equipment and training under the project and can be applied nationwide to outbreaks. The department responded to two FMD outbreaks in 2015 and two in 2016.

LAO--Animal disease outbreak response capacity has already been improved through new equipment and training under the project and can be applied nationwide to outbreaks. The department responded to two FMD outbreaks in 2015 and two in 2016. These FMD outbreaks has been reported to the OIE and to counterparts in neighboring countries, which is an indication of Lao PDR's reliability in reporting such occurrences.

CAM-- 791 samples from 15 sites in Phnom Penh and 150 samples from Siem Reap and Sihanoukville have been collected and tested for chemical contamination; rapid test kits have been used to provide on job training for 80 interns of ITC; one workshop on technical regulations and food inspection and certification in Siem Reap has been conducted benefiting 95 participants from regulatory agencies, private sectors, and universities; specifications for development of database software for food safety information in CamControl was completed; 305 restaurants have applied for hygiene certificates and logo certificates and 159 applications has been approved; one training on surveillance of food safety have been given to 25 health officials; One food poisoning case has been investigated and recommendations have been given to the restaurant owner to improve hygiene and mitigate health risk to consumers.

LAO-- A risk categorization framework and guideline for surveillance has been developed. The mobile laboratory has already collected 3,145 food samples to test for contaminations. The bi-annual food safety surveillance plan has been approved. Testing for salmonella, E-coli and pesticides in fresh product, sulphites, borax and formalin is underway in Vientiane, Luang Prabang and Champasack provinces.

Checklists have been developed for three tiers of restaurants types. The pilot phase has been completed with training provided to 130 restaurants and food establishments and the scoring system trialed in 68 restaurants in Vientiane, Luang Prabang and Champasack provinces.

LAO--Good progress under the Surveillance systems, included design of surveillance and sampling plans. Consultant for GMP training and auditing commenced on June 2016.

CAM: The AE-CIU finalized the technical specifications of laboratory equipment for New Microbiology Laboratory Building.

LAO--Implementation progress under this output is satisfactory. Revision of curriculums for (i) bachelor or sciences in plant protection (4-year course); (ii) bachelor of veterinary public health (6-year course); and (iii) bachelor of sciences in agricultural economics and food technology (4-year course) was completed and approved by the Ministry of Education and Sports in October 2015. Training materials were also finalized. The revised curricula are being used by students this academic year. Construction of teaching facilities was completed in December 2015. Laboratory equipment were procured and installed.

CAM--Minister of MAFF officially launched the updated four curriculums for Faculty of Agricultural Science, Animal Science, Veterinary Medicine/Doctor of Veterinary Medicine, and Agro-Industry in March 2016.

CAM--One official form CamControl participated in a Regional on Development of ASEAN Food Safety Requirements for Food Contaminants from 15-16 March 2016 in Malaysia.

LAO--There have been eight bilateral working group meetings on Plant Health conducted, five with the PRC, one with Thailand and two with Vietnam to exchange pest lists and pest reports. Overall this activity is estimated to be 66% completed and is expected to be fully completed over the remaining term of the Project implementation period with 4 more meetings in 2016 and 2017, assuming adequate available funds remain for these activities.

On Animal Health there have been eight bilateral working group meetings conducted, three each with Thailand and Vietnam and two with PRC to discuss and agree on TAD control measures along the borders with these countries and to improve technical collaboration and coordination with them in order to facilitate cross border trade and comply with the SPS Agreement. Overall this activity is estimated to be 57% completed with completion of 8 of the 14 meetings targeted. With limited funds for such meetings and only 1.6 years remaining it is expected that only 4 more meetings will be conducted in 2016 and 2017, for a total of 12 of 14 meetings conducted during the implementation period of the Project.

On Food Safety, there have been five bilateral working group meetings conducted to facilitate bilateral cooperation and information sharing on surveillance activities. Overall this activity is estimated to be 41% completed with completion of 5 of the 12 meetings targeted. With limited funds for such meetings and only 1.6 years remaining it is expected that only 5 more meetings will be conducted in 2016 and 2017, for a total of 10 of 14 meetings conducted during the implementation period of the Project.

--

CAM-- The PMU has been established and fully staffed.

LAO--Project fully staffed and operational from 2013

CAM-- CIUs have been established and fully staffed.

LAO--8 components established and staffed

CAM: On-going

LAO--Financial, operational and monitoring and evaluation system in place

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 Staff

Responsible ADB Officer Hakim, Januar
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

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 Oct 2016

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 9.65 0.00 88%
Counterpart 0.46 Cumulative Disbursements
Cofinancing 0.00 26 Jun 2012 8.29 0.00 75%

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 6.73 0.00 67%
Counterpart 0.41 Cumulative Disbursements
Cofinancing 0.00 26 Jun 2012 6.95 0.00 69%

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 2.43 0.00 88%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Jun 2012 2.72 0.00 98%

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 537,129.25
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

None currently available.


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