48409-002: Climate-Friendly Agribusiness Value Chains Sector Project | Asian Development Bank

Cambodia: Climate-Friendly Agribusiness Value Chains Sector Project

Sovereign (Public) Project | 48409-002 Status: Approved

The proposed project supports fulfilling the government's Agriculture Sector Strategic Development Plan and the Industrial Development Policy, by improving the competitiveness of agribusiness value chains in Kampong Cham and Tboung Khmum provinces along the Greater Mekong Subregion (GMS) southern economic corridor, and in Kampot and Takeo provinces along the south coastal economic corridor.1 The project will boost the climate resilience of critical agricultural infrastructure and help commercialize rice, maize, cassava, and mango production. It will help increase crop productivity and diversification; improve the capacity for storage, processing, and quality and safety testing; and promote the use of solar and bioenergy. It will strengthen the technical and institutional capacity for climate-smart agriculture (CSA) and create an enabling policy environment for climate-friendly agribusinesses.

Project Details

Project Officer
Ancha, Srinivasan Southeast Asia Department Request for information
Country
  • Cambodia
Modality
  • Grant
  • Loan
Sector
  • Agriculture, natural resources and rural development
 
Project Name Climate-Friendly Agribusiness Value Chains Sector Project
Project Number 48409-002
Country Cambodia
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0579-CAM: Climate-Friendly Agribusiness Value Chains Sector Project
Green Climate Fund US$ 30.00 million
Loan 3661-CAM: Climate-Friendly Agribusiness Value Chains Development
concessional ordinary capital resources lending / Asian Development Fund US$ 90.00 million
Loan 8346-CAM: Climate-Friendly Agribusiness Value Chains Development
Green Climate Fund US$ 10.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Agricultural production - Agro-industry, marketing, and trade - Irrigation - Rural market infrastructure - Rural solid waste management

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed project supports fulfilling the government's Agriculture Sector Strategic Development Plan and the Industrial Development Policy, by improving the competitiveness of agribusiness value chains in Kampong Cham and Tboung Khmum provinces along the Greater Mekong Subregion (GMS) southern economic corridor, and in Kampot and Takeo provinces along the south coastal economic corridor.1 The project will boost the climate resilience of critical agricultural infrastructure and help commercialize rice, maize, cassava, and mango production. It will help increase crop productivity and diversification; improve the capacity for storage, processing, and quality and safety testing; and promote the use of solar and bioenergy. It will strengthen the technical and institutional capacity for climate-smart agriculture (CSA) and create an enabling policy environment for climate-friendly agribusinesses. This will in turn promote long-term environmental sustainability and enhance the profitability for farmers and agribusinesses.
Project Rationale and Linkage to Country/Regional Strategy

Agriculture including processing, transportation, and trade of farm products is crucial for the Cambodian economy, still accounting for 33.7% of the nation's gross domestic product. Crop production is the largest contributor (59.4%) to the sector's gross domestic product. Agriculture grew at 4.5% per annum during 2008 2012, driven by the expansion of cultivated land and high prices of farm products, but it slowed down during 2013 2016 (0.9% per annum) because of the loss of those drivers, extreme weather events, and rapid growth in other sectors, such as industry and services. The transition from a traditional subsistence to a modern commercial agriculture sector is slow.

The government's Agriculture Sector Strategic Development Plan, 2014 2018 aims to enhance the competitiveness of the sector through greater agricultural productivity (intensification), diversification, and commercialization. Measures include the (i) expansion of agricultural extension services, improvement of seed quality to respond to market needs, and better postharvest technology; (ii) creation of an enabling environment for the private sector and adoption of good agricultural practices; (iii) strengthening of policies that will support agricultural businesses and exports, and improve product quality and standards (e.g., sustainable rice platform); (iv) bolstering of the analytical capacity of the National Agricultural Laboratory; (v) rehabilitation of the infrastructure of state farms and agricultural development centers; (vi) implementation of the strategy and action plan for climate change adaptation and mitigation; and (vii) promotion of private investment in agriculture through PPPs. The government also promotes biogas and bioenergy consumption; a priority in the government's Intended Nationally Determined Contribution.

Impact Agricultural competitiveness improved (Agriculture Sector Strategic Development Plan, 2014 -2018)
Project Outcome
Description of Outcome Productive and resource-efficient agribusiness value chains developed in project areas.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Critical agribusiness value chain infrastructure improved and made climate-resilient.

Climate-smart agriculture and agribusiness promoted.

Enabling environment for climate-friendly agribusiness enhanced.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Kampong Cham Province, Kampot Province, Takeo, Tboung Khmum
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects The project is categorized as B. It is expected to achieve significant environmental benefits, including substantial reduction of GHG emissions, improved resilience and increased crop diversity in the project areas.
Involuntary Resettlement The project is categorized as B for involuntary resettlement. The project will not finance any category A subprojects. During project preparation, some irrigation subprojects were identified that would require acquisition of small strips of land to accommodate improvement of distribution canals. These small strips of land may be acquired through negotiated settlement based upon the market value of the asset. In some cases, and in order to secure the subproject, it is possible that some HHs may voluntarily donate small strips of land in order to secure a clear benefit. However, given that some subprojects will only be prepared after ADB Board approval, involuntary resettlement impacts cannot be ruled out at this stage.
Indigenous Peoples The project is categorized as B. There were no indigenous peoples or ethnic minorities in areas of the representative subprojects. However, there are some ethnic minorities living in project provinces and districts who could be impacted by subprojects identified during project implementation. An Ethnic Minority Development Framework (EMDF) has been prepared that will ensure inclusion and full consultation and participation of ethnic minority households and communities.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations with government staff, private sector and development partners in four target provinces (Kampong Cham, Tbong Khmum, Kampot and Takeo) were conducted from November 2015 to June 2016. A workshop was held in Phnom Penh on 16 February 2016 to identify opportunities and challenges for effective private sector involvement in inclusive agribusiness value chains of 4 target provinces. Feasibility studies on maize, rice and cassava involved consultation with several local stakeholders. Interim workshop took place in June 2016 to receive feedback from stakeholders. A mission was fielded from 9 to 11 Jan 2017 to consult with the government representatives, civil society organizations and development partners regarding project design and implementation arrangements. Fact-finding mission followed from 16 to 25 Jan 2017.
During Project Implementation A stakeholder communication strategy has been prepared to ensure that vulnerable groups, such as the poor and female-headed households, who risk marginalization, are provided with opportunities for receiving timely information, and can provide feedback during project implementation.
Responsible ADB Officer Ancha, Srinivasan
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SERD
Executing Agencies
Ministry of Agriculture, Forestry & Fisheries
# 40 Norodom Blvd.
Phnom Penh
Cambodia
Timetable
Concept Clearance 12 May 2015
Fact Finding 09 Jan 2017 to 25 Jan 2017
MRM 26 Mar 2018
Approval 29 Jun 2018
Last Review Mission -
Last PDS Update 29 Jun 2018

Grant 0579-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jun 2018 - - 31 Mar 2025 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 41.04 Cumulative Contract Awards
ADB 0.00 29 Jun 2018 0.00 0.00 0%
Counterpart 11.04 Cumulative Disbursements
Cofinancing 30.00 29 Jun 2018 0.00 0.00 0%

Loan 3661-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jun 2018 - - 31 Mar 2025 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 90.00 Cumulative Contract Awards
ADB 90.00 29 Jun 2018 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 29 Jun 2018 0.00 0.00 0%

Loan 8346-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jun 2018 - - 31 Mar 2025 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 0.00 29 Jun 2018 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 10.00 29 Jun 2018 0.00 0.00 0%

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.

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

Tender Title Type Status Posting Date Deadline
Project Implementation Consultant Services Firm - Consulting Active 11 Jul 2018 09 Aug 2018
Feasibility Studies and Detailed Engineering Design Consulting Firm - Consulting Active 09 Jul 2018 07 Aug 2018
Capacity Building and Climate Smart Agriculture Consulting Firm - Consulting Active 09 Jul 2018 07 Aug 2018
CAM: Climate-Friendly Agribusiness Value Chains Sector Project Advance Notice Active 24 May 2018

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan