43120-026: Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project – Additional Financing | Asian Development Bank

Lao People's Democratic Republic: Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project – Additional Financing

Sovereign (Public) Project | 43120-026 Status: Active
 
Project Name Trade Facilitation: Improved Sanitary and Phytosanitary Handling in Greater Mekong Subregion Trade Project – Additional Financing
Project Number 43120-026
Country Lao People's Democratic Republic
Project Status Active
Project Type / Modality of Assistance Grant
Source of Funding / Amount
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

Industry and trade / Trade and services

Gender Equity and Mainstreaming Some gender elements
Description

The Asian Development Bank (ADB) approved the original Trade Facilitation: Improved SPS Handling in GMS Trade Project in June 2012. The project aims to strengthen institutional

support and develop capacity for SPS handling in Cambodia and the Lao PDR through improved surveillance and monitoring of plant health, animal health, and food safety; the creation of a pool of SPS specialists through better tertiary education in food sciences; and enhanced regional cooperation in SPS handling. Based on the success of the current project in its delivery of outputs, the Government of the Lao PDR requested additional financing to scale up project activities, include additional provinces for support under the project, and commence nationwide rollout of the food safety management system. The project will facilitate greater trade in agriculture, food, and forestry (AFF) products through an increase in focus on improving SPS measures for plant health, animal health, and food safety applicable to key trade requirements of the GMS. The additional financing will scale up activities in the three main outputs: (i) surveillance and inspection 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. The project will be implemented by the Lao PDR Ministry of Agriculture and Forestry (MAF). The current project's approach and structure remain valid.

Project Rationale and Linkage to Country/Regional Strategy

The current project was developed based on the commitment of the Lao PDR to implement the GMS regional cooperation strategy of connectivity and competitiveness. While recent

investments in physical infrastructure have improved connectivity and created new opportunities for trade, governments in the region recognize that weak national legal, institutional, and operational capacity for delivering SPS services has hindered the establishment of a harmonized and robust GMS framework for SPS, which has impeded growth in exports of food products and incomes of farm households. Governments in the GMS need to invest in national SPS management systems from farm to table, and coordinate SPS service delivery better across jurisdictions. The current project has been successful in improving legal, institutional, and operational capacities for SPS service delivery in Cambodia and the Lao PDR; including management and cooperation on essential SPS issues to be resolved in the region. Achievements under the project include market access agreements with bilateral trading partners for key AFF exports, upgrades to laboratory equipment crucial for testing and analysis of plant and animal health and food safety, and updated curricula and teaching methodology for SPS education in the Faculty of Agriculture at the National University of Laos. Under the current project, the governments of Cambodia and the Lao PDR have successfully pilot tested a food safety scheme involving the assessment and grading of food establishments. Technical assistance (TA) on Enhancing Capacity for SPS Arrangements to Facilitate Trade in the GMS is also supporting progress by providing for cooperation between customs and SPS agencies, regional capacity building, and the development of a monitoring and evaluation framework. National trade data show clear benefits such as the increased export volume of AFF goods resulting from improved SPS management systems under ADB's support. For example, under the framework of market access agreements with bilateral partners, rice exports from the Lao PDR to the People's Republic of China have increased 400% from 2015 to 2017. Other AFF products experienced robust export growth from 2012 to 2015, such as corn (67%) and cassava (328%).

Despite this progress, additional financing is required to support reforms in the Lao PDR to enhance SPS institutions and operational capacity in line with the country's GMS commitments.8 The current project focuses on improved surveillance and monitoring of plant health, animal health, and food safety in three provinces9, while additional provinces such as Savannakhet and Oudomxay require support under the project. Additional financing will facilitate the rollout of a national food safety management system, including a ratings scheme of food establishments, to improve food safety for the population and visitors to the Lao PDR. Enhancing food safety in the Lao PDR will boost its reputation as a tourism destination, which is imperative as tourism accounts for 6.4% of gross domestic product. The first batch of food science students from the project will graduate in 2018, and additional investments are needed to ensure a sufficient number of qualified food scientists in the long term.

Impact

The Project is Aligned with:

Current project

AFF products become safer, more efficiently produced, and traded in greater quantities.

Overall project

Unchanged and aligned with the Lao PDR MAF's Agricultural Development Strategy, 2011 2020

Project Outcome
Description of Outcome

Current project

Enhanced SPS management systems

Overall project

Unchanged

Progress Toward Outcome The Grant became effective on 5 Jan 2018.
Implementation Progress
Description of Project Outputs

Current project

Strengthened surveillance and inspection programs

Overall project

Unchanged

Status of Implementation Progress (Outputs, Activities, and Issues) The Grant became effective on 5 Jan 2018. To date, the following have been engaged:(i) Int'l Project Mgt and Procurement Advisor; (ii) International TAD Control specialist; (iii) National TA TAD Control Specialist; (iv) Project Admin Assistant; (v) Project Secretary. Engagement of other experts are ongoing.
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

Individual consultants: 31 contracts;98pm (intl); 186 pm (natl) ($2.274m)

Least cost selection: 2 contracts; 7.5pm (intl); 7.5 pm (natl) ($0.155m)

Single source Selection : 5 contracts; 29pm (intl); 84 pm(natl) ($0.757m)

Advance contracting of PMU project management and financial consultants in Q4 2017 for the following positions: international project management and procurement advisor; national financial management specialist; national procurement specialist; project administrative assistant; secretary.

Procurement

NCB: Multiple contracts ($2.964m)

Shopping: Multiple contracts ($0.098m)

Direct Purchase: Multiple contracts ($0.089m)

Responsible ADB Officer Xayyavong, Phoxay
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Lao Resident Mission
Executing Agencies
Ministry of Agriculture and Forestry-Irrigation Dep
DIDMP, Irrigation Department
Ministry of Agriculture and Forestry
P.O.Box 5192, Chao Anou Road
Timetable
Concept Clearance -
Fact Finding 15 May 2017 to 17 May 2017
MRM 04 Aug 2017
Approval 03 Oct 2017
Last Review Mission -
Last PDS Update 28 Mar 2018

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 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.32 Cumulative Contract Awards
ADB 10.00 03 Oct 2017 2.04 0.00 20%
Counterpart 0.32 Cumulative Disbursements
Cofinancing 0.00 03 Oct 2017 1.69 0.00 17%

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.

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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.

None currently available.

Evaluation Documents See also: Independent Evaluation

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Related Publications

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