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 Physical progress is 19% against 26% elapsed time since grant effectiveness on 5 January 2018. Project implementation progress is on-track.
Implementation Progress
Description of Project Outputs

Current project

Strengthened surveillance and inspection programs

Overall project

Unchanged

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

Output 1: Strengthened Surveillance and Inspection Programs for Plant Health, Animal Health and Food Safety

Plant Health.

Activities under this output are being implemented by the Ministry of Agriculture and Forestry (MAF)'s Plant Protection Center, which include (i) pest surveillance and pest list development, (ii) pesticides management, (iii) wood products in the GMS, (iv) import handling, (v) export promotion, (vi) laboratory services, and (vii) bilateral cooperation. Implementation of these activities are progressing well, including surveys for the update of prohibited pests list (plant diseases and insect pests) have been conducted in 13 provinces covering 5 priority crops.

Animal Health.

This component is being implemented by MAF's Department of Livestock and Fisheries. Activities include (i) Transboundary Animal Diseases (TAD) control, (ii) veterinary drugs inspection, (iii) animal feed inspection, (iii) food chain safety, (iv) import handling, risk-based management and implementation of the strategy for managing illegal animal trade, (v) reporting (participation in GMS countries, OiE, SEACFMD), and (vi) regional cooperation. Implementation of these activities are progressing.

Food Safety.

This component is being implemented by the Ministry of Health's Department of Food and Drugs Control. Activities include (i) surveillance system upgrade, (ii) tourist industry support, (iii) market access study, (iv) import handling, and (v) laboratory services. Implementation of these activities are progressing.

Output 2: Improved Regional Cooperation and Harmonization.

Activities under this output focus on regional cooperation and harmonization in SPS will be further deepened through information sharing within the various ASEAN SPS networks, as well as support for bilateral working groups with PRC, Thailand and Viet Nam in the areas of plant protection, animal health and food safety.

Output 3: Enhanced Education Levels/University Training of SPS Specialists.

The Faculty of Agriculture of the National University of Laos is leading implementation of this output. Activities include (i) curricula development, (ii) departmental laboratory and teaching equipment upgrade, and (iii) regional scholarship program. Implementation of these activities are progressing. In academic year 2017-2018, 115 students are enrolled in veterinary medicines, plant protection and rural economy and food science courses.

Geographical Location Nation-wide
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

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 Sep 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 3.19 0.00 32%
Counterpart 0.32 Cumulative Disbursements
Cofinancing 0.00 03 Oct 2017 1.96 0.00 20%

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 Public Communications Policy (PCP) 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.

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 Public Communications Policy (PCP) 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

No tenders for this project were found.

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
INTERNATIONAL FOREST INSECT (ENTOMOLOGY) PEST SPECIALIST Grant 0546 25 Sep 2018 DR. GEORGE MATHEW X/123 VALIYAVEETTIL CHERUKOLE P.O. MAVELIKARA-690104 ALAPPUZHA DIST.KERALA INDIA Ministry of Agriculture & Forestry-Irrigation Dep Consulting Services 171,000.00
INTERNATIONAL FOREST DISEASE (PATHOLOGY) SPECIALIST Grant 0546 25 Sep 2018 DR. N.S.K. HARSH C-152 KRISHNA VIHAR COLONY SMITH NAGAR PREMNAGAR DEHRADUN-248007 UTTARAKHANH INDIA Ministry of Agriculture & Forestry-Irrigation Dep Consulting Services 171,000.00
INTERNATIONAL WEED SCIENCE SPECIALIST Grant 0546 25 Sep 2018 MS. SIRIPORN ZUNGSONTIPORN 145/3 BOROMRACHCHONNEE ROAD ARUNAMRIN BANGKOKNOI BANGKOK 10700 THAILAND Ministry of Agriculture & Forestry-Irrigation Dep Consulting Services 108,120.00
NATIONAL FOOD SAFETY SPECIALIST Grant 0546 11 Sep 2018 MS. SILIVANH SOUMPHON HOUSE NO.294 NUAYE25 BAN DONGPHONELAOH HATXAYPHONG DISTRICT VIENTIANE CAPITAL LAO PEOPLE'S DEM REP Ministry of Agriculture & Forestry-Irrigation Dep Consulting Services 102,740.00
INTERNATIONAL LAB MANAGEMENT SPECIALIST (PESTICIDES) Grant 0546 28 Jun 2018 MS. PRAPASSARA PIMPAN BANGKOK THAILAND THAILAND Ministry of Agriculture & Forestry-Irrigation Dep 113,670.00
INTERNATIONAL MARKET ACCESS OPPORTUNITIES AND EXPORT ASSURANCE COMPLIANCE SPECIALIST Grant 0546 28 Jun 2018 MR. UDORN UNAHAWUTTI PHAHOLYOTHIN ROAD TAMBON LUCK HOK THAILAND Ministry of Agriculture & Forestry-Irrigation Dep 112,220.00
INTERNATIONAL SPECIALIST-PRIMARY FOOD CHAIN STRATEGY (MEAT) Grant 0546 27 Jun 2018 DR. NICOLA LUIGI MAGNAGHI SISATTANAK DISTRICT VIENTIANE CAPITAL ITALY Ministry of Agriculture & Forestry-Irrigation Dep 123,740.00
INTERNATIONAL RISK ASSESSMENT AND ENFORCEMENT OF STRATEGY AND REGULATIONS ON ANIMAL TRADE Grant 0546 27 Jun 2018 MR. SORAYUT SEEKHAOW PATHUM THANI 12130 THAILAND THAILAND Ministry of Agriculture & Forestry-Irrigation Dep 132,140.00
NAT'L-TAD CONTROL SPECIALIST DOLF-SSS-NAT-03 Grant 0546 21 Mar 2018 MAHANAKHONE SOURIYA 408 CHANSAVANG VILLAGE SIKHOT DISTRICT VIENTIANE CAPITAL LAO PEOPLE'S DEM REP Ministry of Agriculture & Forestry-Irrigation Dep 114,360.00
INT'L TAD CONTROL SPECIALIST DOLF-SSS-INT-01 Grant 0546 19 Mar 2018 PHILIPPE FREDERIC R. LEPERRE RUE MARIE COLLART 94 1620 DROGENBOS BELGIUM Ministry of Agriculture & Forestry-Irrigation Dep 146,460.00
INTERNATIONAL PROJECT MANAGEMENT AND PROCUREMENT ADVISOR Grant 0546 19 Jan 2018 KULWANT SINGH NAND VIJAR VAISHALI NAGAR JAIPUR INDIA Ministry of Agriculture & Forestry-Irrigation Dep CONSULTANCY 299,866.00