Cambodia: Climate-Friendly Agribusiness Value Chains Sector Project

Sovereign (Public) Project | 48409-002

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. 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 Name Climate-Friendly Agribusiness Value Chains Sector Project
Project Number 48409-002
Country Cambodia
Project Status Active
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 Sector Project
concessional ordinary capital resources lending / Asian Development Fund US$ 90.00 million
Loan 8346-CAM: Climate-Friendly Agribusiness Value Chains Sector Project
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. 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 Feasibility studies and detailed engineering design for productive and resource-efficient agribusiness value chain infrastructure subprojects (e.g., irrigation schemes, farm roads, agricultural cooperatives, bioenergy) are ongoing.
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)

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.

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 The project became effective on 1 October 2018. A stakeholder communication strategy was 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. Project implementation consultants are expected to be on board on 1 October 2019, and they will continue stakeholder consultations throughout 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
H. E. Chhea Song
# 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 30 Sep 2020

Grant 0579-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jun 2018 06 Jul 2018 28 Mar 2019 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 07 Sep 2021 0.00 0.61 2%
Counterpart 11.04 Cumulative Disbursements
Cofinancing 30.00 07 Sep 2021 0.00 1.00 3%

Loan 3661-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jun 2018 06 Jul 2018 01 Oct 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 07 Sep 2021 13.31 0.00 15%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 07 Sep 2021 5.62 0.00 6%

Loan 8346-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jun 2018 06 Jul 2018 28 Mar 2019 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 07 Sep 2021 0.00 0.37 4%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 10.00 07 Sep 2021 0.00 0.43 4%

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 Access to Information Policy (AIP) 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.

Title Document Type Document Date
Climate-Friendly Agribusiness Value Chains Sector Project: Procurement Plan Procurement Plans Feb 2021
Climate-Friendly Agribusiness Value Chains Sector Project: Ministry of Water Resources and Meteorology Audited Project Financial Statements (October 2018-December 2019) Audited Project Financial Statements Dec 2020
Climate-Friendly Agribusiness Value Chains Sector Project: Ministry of Agriculture, Forestry and Fisheries Audited Project Financial Statements (October 2018-December 2019) Audited Project Financial Statements Jul 2020
Climate-Friendly Agribusiness Value Chains Sector Project: Ministry of Rural Development Audited Project Financial Statements (October 2018-December 2019) Audited Project Financial Statements Jul 2020
Amendment to the Loan Agreement (Ordinary Operations [Concessional]) for Loan No. 3661-CAM: Climate-Friendly Agribusiness Value Chains Sector Project Loan Agreement (Ordinary Resources) Mar 2019
Grant Agreement (ADB Green Climate Fund) for Grant 0579-CAM: Climate-Friendly Agribusiness Value Chains Sector Project Grant Agreement Jul 2018
Loan Agreement (ADB Green Climate Fund) for Loan 8346-CAM: Climate-Friendly Agribusiness Value Chains Sector Project Loan Agreement (Ordinary Resources) Jul 2018
Loan Agreement (Ordinary Operations [Concessional]) for Loan 3661-CAM: Climate-Friendly Agribusiness Value Chains Sector Project Loan Agreement (Ordinary Resources) Jul 2018
Climate-Friendly Agribusiness Value Chains Sector Project: Project Data Sheet (Khmer Translation) Translated PDS Jun 2018
Climate-Friendly Agribusiness Value Chains Sector Project: Report and Recommendation of the President Reports and Recommendations of the President Jun 2018
Climate-Friendly Agribusiness Value Chains Sector Project: Gender Action Plan Gender Action Plans Jun 2018
Climate-Friendly Agribusiness Value Chains Sector Project: Project Administration Manual Project/Program Administration Manual Jun 2018
Climate-Friendly Agribusiness Value Chain Sector Project: Draft Gender Action Plan (Khmer Translation) Gender Action Plans Oct 2017
Climate-Friendly Agribusiness Value Chain Sector Project: Draft Gender Action Plan Gender Action Plans Oct 2017
Climate-Friendly Agribusiness Value Chains Sector Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis May 2015

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.

Title Document Type Document Date
Climate-Friendly Agribusiness Value Chains Sector Project: Rehabilitation of the Kbal Teuk and Tuol Pring Irrigation Subprojects Safeguards Due Diligence Report Safeguards Due Diligence Reports Jul 2021
Climate-Friendly Agribusiness Value Chains Sector Project: Kampot Province Rural Roads Rehabilitation Subprojects Initial Environmental Examination Initial Environmental Examination Jul 2021
Climate-Friendly Agribusiness Value Chains Sector Project: Mechanization Engineering Workshops and the Provincial Agricultural Development Centers Safeguards Due Diligence Report Safeguards Due Diligence Reports Jun 2021
Climate-Friendly Agribusiness Value Chains Sector Project: Initial Environmental Examination Initial Environmental Examination Jun 2021
Climate-Friendly Agribusiness Value Chains Sector Project: Rehabilitation of Prey Kdouch and Kraing Empil Irrigations Subprojects Initial Environmental Examination Initial Environmental Examination May 2021
Climate-Friendly Agribusiness Value Chains Sector Project: Sambo Meanchey and Stueng Trang Senchey Rural Roads Subprojects Initial Environmental Examination Initial Environmental Examination May 2021
Climate-Friendly Agribusiness Value Chains Sector Project: Dambae Rungroeung and Kdey Song Khuem Kaksekor Rural Roads Subprojects Initial Environmental Examination Initial Environmental Examination Mar 2021
Climate-Friendly Agribusiness Value Chains Sector Project: Kbal Teuk, Trapeang Tros, and Tuol Pring Irrigation Subprojects Initial Environmental Examination Initial Environmental Examination Feb 2021
Climate-Friendly Agribusiness Value Chains Sector Project: Lumpong Kasikam Samaky and Sdok Sdom, Takeo Province Rural Road Rehabilitation Subprojects Initial Environmental Examination Initial Environmental Examination Nov 2020
Climate-Friendly Agribusiness Value Chain Sector Project: Trapeang Run Irrigation Subproject Initial Environmental Examination Initial Environmental Examination Jul 2020
Climate-Friendly Agribusiness Value Chain Sector Project: Draft Environmental Assessment and Review Framework (Khmer Translation) Environmental Assessment and Review Framework Oct 2017
Climate-Friendly Agribusiness Value Chain Sector Project: Draft Ethnic Minorities Development Framework Indigenous Peoples Planning Documents Oct 2017
Climate-Friendly Agribusiness Value Chain Sector Project: Draft Ethnic Minorities Development Framework (Khmer Translation) Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Oct 2017
Climate-Friendly Agribusiness Value Chain Sector Project: Draft Land Acquisition and Resettlement Framework Resettlement Planning Documents Oct 2017
Climate-Friendly Agribusiness Value Chain Sector Project: Trapaing Run Subproject Draft Initial Environmental Examination Environmental Assessment and Measures Oct 2017
Climate-Friendly Agribusiness Value Chain Sector Project: Draft Land Acquisition and Resettlement Framework (Khmer Translation) Resettlement Frameworks Oct 2017
Climate-Friendly Agribusiness Value Chain Sector Project: Trapaing Run Subproject Draft Initial Environmental Examination (Khmer Translation) Initial Environmental Examination Oct 2017
Climate-Friendly Agribusiness Value Chain Sector Project: Draft Environmental Assessment and Review Framework Environmental Assessment and Measures Oct 2017

Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) 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


Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
FEASIBILITY STUDIES AND DETAILED ENGINEERING DESIGN CONSULTING FIRM (FSDD-PACKAGE CS5) Loan 3661 10 Oct 2019 RESOURCES DEVELOPMENT CONSULTANTS (PVT) LTD. 55-2/1 GALLE ROAD, COLOMBO-3 SRI LANKA Ministry of Agriculture, Forestry & Fisheries CONSULTANCY 2313414.00 2313414.00
CAPACITY BUILDING AND CLIMATE SMART AGRICULTURE CONSULTING FIRM (CS2) Loan 3661 06 Sep 2019 E.GEN CONSULTANTS LTD. 69/1 BIR UTTAM QAZI NURUZZAMAN ROAD, DHAKA 1205 BANGLADESH Ministry of Agriculture, Forestry & Fisheries CONSULTANCY 3265076.00 3265076.00
PROJECT IMPLEMENTATION CONSULTING TEAM (CS1) Loan 3661 04 Sep 2019 AGRICONSULTING EUROPE SA (AESA) AVENEU DE TERVUREN 36 BRUSSELS 1040 BELGIUM Ministry of Agriculture, Forestry & Fisheries CONSULTANCY 4312430.00 4158200.00

Procurement Plan