50264-001: Agricultural Value Chain Infrastructure Improvement Project | Asian Development Bank

Cambodia: Agricultural Value Chain Infrastructure Improvement Project

Sovereign (Public) Project | 50264-001 Status: Active

Cambodia's agriculture sector is characterized as low value added, low productive, and natural resource exhaustive. They are caused by: (i) poor and climate-vulnerable agricultural production and service infrastructure; (ii) underdeveloped agricultural value chains; and (iii) unsustainable natural resources management exacerbated by climate change. The Agricultural Value Chain (AVC) Infrastructure Improvement Project (the project) aims to tackle the core sector problem of low productivity, low value addition, and low resource efficiency of Cambodia's agriculture with the following outputs: (i) post-harvest and logistic facilities strengthened; (ii) agricultural production and service infrastructure improved; (iii) rural connectivity and disaster risk management capacity improved; and (iv) business partnership among value chain stakeholders enhanced (see detailed description of the outputs in the concept paper).

Project Details

Project Officer
Ueda, Takeshi Southeast Asia Department Request for information
Country
  • Cambodia
Sector
  • Agriculture, natural resources and rural development
 
Project Name Agricultural Value Chain Infrastructure Improvement Project
Project Number 50264-001
Country Cambodia
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9545-CAM: Agricultural Value Chain Infrastructure Improvement Project
Japan Fund for Poverty Reduction US$ 1.50 million
Project Readiness Improvement Trust Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
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 - Agro-industry, marketing, and trade - Rural market infrastructure

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming Effective gender mainstreaming
Description Cambodia's agriculture sector is characterized as low value added, low productive, and natural resource exhaustive. They are caused by: (i) poor and climate-vulnerable agricultural production and service infrastructure; (ii) underdeveloped agricultural value chains; and (iii) unsustainable natural resources management exacerbated by climate change. The Agricultural Value Chain (AVC) Infrastructure Improvement Project (the project) aims to tackle the core sector problem of low productivity, low value addition, and low resource efficiency of Cambodia's agriculture with the following outputs: (i) post-harvest and logistic facilities strengthened; (ii) agricultural production and service infrastructure improved; (iii) rural connectivity and disaster risk management capacity improved; and (iv) business partnership among value chain stakeholders enhanced (see detailed description of the outputs in the concept paper). These outputs will result in the following outcome: value addition to selected agricultural products in the project area increased. The project will be aligned with the following impact: value addition in agriculture sector enhanced.
Project Rationale and Linkage to Country/Regional Strategy

Agriculture remains a crucial sector for the Cambodian economy. The sector alone, including processing, transportation, and trade of agriculture products, accounts for 33.7% of the

gross domestic product (GDP). The agriculture sector GDP grew by 4.5% per annum during 2008-2012, mainly driven by the cultivated land expansion and high prices of agricultural

products. The sector growth, however, slowed down during 2013-2016 (0.9% per annum) because of the loss of those drivers, and extreme weather events. Agricultural products are

Cambodia's second largest export products, after the textile and garment, constituting $533 million (5.2% of total export) in 2016; nonetheless, those agriculture exports are largely in raw form and their value addition occurs in other countries. To capture this forgone economic opportunity and diversify the economy, it is important to strengthen the value chains of agricultural products.

The transaction technical assistance (TRTA) is required to (i) assist in the design the project; (ii) conduct financial and integrity due diligence of the potential participating financial institutions; (iii) carry out technical, financial, economic, procurement, social, gender, and environmental due diligence required by ADB and the government; (iv) propose the implementation arrangements; (v) ensure synergies and integration with other related interventions in ADB, Japan International Cooperation Agency and other development partners' country portfolio and project pipelines; and (vi) prepare the project documents according to ADB's requirements. The TRTA will also provide support to incorporate climate change adaptation and mitigation measures in the designs of both public and private value chain infrastructure and facilities and to enhance project readiness.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Kampong Cham, Kampong Thom, Otar Meanchey, Preah Vihear, Siem Reap, Tboung Khmum
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The main stakeholders will be smallholder farmers, the entrepreneurs who establish and operate the SMEs engaged in processing and trading of agricultural products within the selected value chains, and district and provincial agricultural extension staff. Participating financial institutions will benefit from the project through increased access to finance and strengthened credit underwriting and monitoring capacity to successfully cater to farmers and agribusiness needs. The consumers of agri-food products will benefit from consistently better quality and safer products. During the TRTA a consultative process will be used to identify the specific value chains to support and a wide cross section of local stakeholders will have the opportunity to contribute their knowledge.
During Project Implementation During the TRTA there will be consultations with poor and vulnerable households to identify their potential roles in the project design and to ensure the removal of barriers to their participation and benefits from the project and a strategy for capacity strengthening of farmer organizations and/or agricultural cooperatives will be developed.
Business Opportunities
Consulting Services A consulting firm and individual consultants will be engaged on an intermittent basis in accordance with ADB Procurement Policy and Procurement Regulations for ADB Borrowers (2017, as amended from time to time) and its associated project administration instructions and staff instructions. The consultants will procure the equipment. The following consultants will be engaged: (i) a firm providing 43.5 person-months of international and 70.2 person-months of national consultant inputs will be engaged through a quality-and cost-based selection (QCBS) with a quality-cost ratio of 90:10 with full technical proposal. Areas of expertise required will include (a) AVC; (b) AVC financing; (c) agricultural economics; (d) financial management specialist; (e) food industry; (f) food safety; (g) rural road engineering; (h) procurement; (i) climate change and disaster risk management; (j) environmental safeguard; (k) social safeguards; (l) social development and gender; and (m) geographic information system; and (ii) individual consultants to provide expertise on bank due diligence and project management.
Procurement Procurement of equipment will be done by the consulting firm to be hired under the TRTA in accordance with the ADB Procurement Policy and Procurement Regulations for ADB Borrowers (2017, as amended from time to time), and its associated project administration instructions and staff instructions.
Responsible ADB Officer Ueda, Takeshi
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 -
Fact Finding -
MRM -
Approval 29 Jun 2018
Last Review Mission -
Last PDS Update 27 Sep 2018

TA 9545-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jun 2018 01 Aug 2018 01 Aug 2018 30 Jun 2020 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 2,000,000.00 0.00 0.00 0.00 0.00 2,000,000.00 29 Jun 2018 0.00

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

None currently available.

Related Publications

None currently available.


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Tenders

Tender Title Type Status Posting Date Deadline
Consulting Firm Firm - Consulting Closed 04 Jul 2018 23 Jul 2018

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.