Cambodia : Climate-Friendly Agribusiness Value Chains Sector Project

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

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, 20142018 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.

Agricultural competitiveness improved (Agriculture Sector Strategic Development Plan, 2014-2018)

Productive and resource-efficient agribusiness value chains developed in project areas.

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

Climate-smart agriculture and agribusiness promoted.

Enabling environment for climate-friendly agribusiness enhanced.

Project implementation consultants (CS1), climate-smart agribusiness and capacity building consultants (CS2), and feasibility and detailed engineering design consultants (CS5) were mobilized between September and November 2019. Inception mission was completed in Jan 2020. The project still continues to experience a high turnover of consulting experts, thereby adversely affecting the project implementation, especially under CS2, where several experts remain to be unfilled.

Several activities were affected by COVID-19 (since March 2020), including timely mobilization of international experts and the conduct of in-person training activities. Bidding for the 1st irrigation subproject (Trapaing Run) was completed and bid evaluation report is being reviewed for award.

Additional subprojects identified as follows:

Survey for 10 irrigation subprojects (first batch) ongoing.

Detailed survey and design are ongoing for 8 roads in four provinces (with about 72 kilometers). First bidding document submitted to ADB for review.

Work plan for installing bio-digesters under the National Bio-digester Programme Office & the provincial departments of agriculture, forestry and fisheries (PDAFFs) initiated.

Plans for formation of 10 farmer water user communities (FWUCs) were submitted to MEF for review. FWUC formulation and training materials developed.- One mechanization workshop identified.- 20 agriculture cooperatives identified and preliminary design in progress. Bidding documents submitted to ADB for review.- Design of 500 biodigesters and 250 compost huts ongoing. Bidding document under preparation for submission to ADB by Q4 2020.- Bidding document for the renovation of PADC submitted to ADB for review. Mobilization of Variety Development consulting firm is expected by Q4 2020. A workshop on rice was conducted on 10 March 2020. Training materials for effective management of agricultural cooperatives focusing on accounting, agribusiness, cooperative management, operation and maintenance of storage facilities, are being developed.