The project will strengthen value chains of competitive agricultural products (CAPs) cassava, mangoes, cashew nuts, vegetables, and native chicken in the provinces of Kampong Cham, Kampong Thom, Oddar Meanchey, Preah Vihear, Siem Reap, and Tboung Khmum. The project will (i) facilitate access to credit for agro-enterprises and agricultural cooperatives; (ii) promote viable market links among agro-enterprises and agricultural cooperatives, and enhance food safety and quality; and (iii) improve farm-to-market connectivity. The project will benefit 230 agricultural cooperatives (about 27,000 households) and about 50 agribusinesses in the project areas, and the number of beneficiaries will be expanded through intermediary financing.
| Project Name | Agricultural Value Chain Competitiveness and Safety Enhancement Project | ||||||||||||||||
| Project Number | 50264-002 | ||||||||||||||||
| Country | Cambodia |
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| Project Status | Approved | ||||||||||||||||
| Project Type / Modality of Assistance | Grant Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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| Drivers of Change | Gender Equity and Mainstreaming Knowledge solutions Partnerships Private sector development |
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| Sector / Subsector |
Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development - Agricultural production - Agro-industry, marketing, and trade - Rural market infrastructure Finance / Inclusive finance - Small and medium enterprise finance and leasing Transport / Road transport (non-urban) |
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| Gender Equity and Mainstreaming | Effective gender mainstreaming | ||||||||||||||||
| Description | The project will strengthen value chains of competitive agricultural products (CAPs) cassava, mangoes, cashew nuts, vegetables, and native chicken in the provinces of Kampong Cham, Kampong Thom, Oddar Meanchey, Preah Vihear, Siem Reap, and Tboung Khmum. The project will (i) facilitate access to credit for agro-enterprises and agricultural cooperatives; (ii) promote viable market links among agro-enterprises and agricultural cooperatives, and enhance food safety and quality; and (iii) improve farm-to-market connectivity. The project will benefit 230 agricultural cooperatives (about 27,000 households) and about 50 agribusinesses in the project areas, and the number of beneficiaries will be expanded through intermediary financing. | ||||||||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | The country has a narrow economic base dominated by agriculture, construction, garments, and tourism. Agriculture accounted for 22.1% of the gross domestic product (GDP) and 31.2% of total employment in 2019. Given the large rural population (76.2% of the total population), the government continues to support agriculture as a priority sector, promoting agro-based industrial development as a driver for economic diversification. Agriculture accounted for 22.1% of the gross domestic product (GDP) and 31.2% of total employment in 2019. However, the sector's performance has been weak with an average growth rate of 1.7% during 2010 2019. Rice has been favored to ensure national food security and it remains the predominant crop, accounting for 70% of the country's cultivated land and 60% of agriculture output. The rice-centric sector policy helped to achieve rice self-sufficiency; however, it hindered agricultural diversification, value addition, and commercialization. Despite its potential, the country's export of agro-based products is mostly in raw form and depends heavily on a few crops such as rice and rubber. Only 10% of the total agricultural outputs are processed within the country. The value of manufactured agro-based products remains only at 4% of GDP. Most formal agro-processing businesses are concentrated in rice milling and primary processing of rubber and pepper. As a result, Cambodia has been losing economic opportunities that can arise from agricultural value addition. | ||||||||||||||||
| Impact | Inclusive and sustainable development (Rectangle 4) achieved; and private sector developed (Rectangle 3) by promoting SMEs and entrepreneurship. | ||||||||||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Value addition of five competitive agricultural value chains in the project areas increased |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Agricultural value chain financing enhanced Agricultural value chain linkage and safety strengthened Agricultural value chain connectivity enhanced |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | Kampong Cham, Kampong Thom, Otar Meanchey, Preah Vihear, Siem Reap, Tboung Khmum |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | Category B |
| Involuntary Resettlement | Category C |
| Indigenous Peoples | Category C |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | The main stakeholders will be agribusinesses engaged in processing and trading of agricultural products within the selected value chains, and agricultural cooperatives who can potentially partner with those agribusinesses to increase value addition to selected agricultural products in the target provinces in Cambodia. These stakeholders were consulted and their needs are reflected in the project design. Selected financial institutions will participate in the project as participating financial institutions for the financial intermediation component. They have been fully consulted and agreed on the project objective and implementation arrangements. The project is concerned with establishing inclusive value chains with higher value addition for the selected agricultural products which will benefit farmers and other value chain stakeholders. The five target provinces have an average poverty rate that exceeds the national average. Smallholder farmers are among the poorest of the community and they will be engaged in the agribusiness value chains to achieve maximum supply effectiveness and will catalyze the emergence and growth of competitive agribusinesses. During the related TRTA, vulnerable groups at risk of being excluded from benefitting from the project due to lack of financial, human and/or social capital will be consulted to ensure that their needs are also reflected. |
| During Project Implementation | Continuous consultation with stakeholders will be conducted during project implementation. |
| Business Opportunities | |
|---|---|
| Consulting Services | QCBS (80:20): 3 contracts (1,404 person-months) for a total estimate of $7.55 million ICS: 5 contracts (184 person-months) for a total estimate of $1.09 million Advance contracting: Recruitment of consultants for the PMU and each of the three PIUs for outputs 1, 2, and 3 |
| Procurement | OCB-International: 8 contracts for a total estimate of $36.54 million OCB-National: multiple contracts for a total estimate of $4.75 million Request for Quotations: 13 contracts for a total estimate of $2.16 million OCB (JFPR Financing): multiple contracts for a total estimate of $2.53 million Advance contracting: (i) Procurement of works contracts for improvement of farm-to-market roads; and (ii) Procurement of vehicles |
| Responsible ADB Officer | Ueda, Takeshi |
| Responsible ADB Department | Southeast Asia Department |
| Responsible ADB Division | Environment, Natural Resources & Agriculture Division, SERD |
| Executing Agencies |
Ministry of Agriculture, Forestry & Fisheries # 40 Norodom Blvd. Phnom Penh Cambodia Ministry of Economy and Finance [email protected] Street 92, Sangkat Wat Phnom Khan Daun Penh, Phnom Penh City Cambodia |
| Timetable | |
|---|---|
| Concept Clearance | 29 Jun 2018 |
| Fact Finding | 06 Jul 2020 to 03 Aug 2020 |
| MRM | 22 Sep 2020 |
| Approval | 26 Nov 2020 |
| Last Review Mission | - |
| Last PDS Update | 16 Jan 2021 |
Grant 9216-CAM
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 26 Nov 2020 | 07 Dec 2020 | - | 31 Aug 2025 | - | - |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 10.06 | Cumulative Contract Awards | |||
| ADB | 0.00 | 26 Nov 2020 | 0.00 | 0.00 | 0% |
| Counterpart | 7.06 | Cumulative Disbursements | |||
| Cofinancing | 3.00 | 26 Nov 2020 | 0.00 | 0.00 | 0% |
Loan 4013-CAM
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 26 Nov 2020 | 07 Dec 2020 | - | 31 Aug 2027 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 70.00 | Cumulative Contract Awards | |||
| ADB | 70.00 | 26 Nov 2020 | 0.00 | 0.00 | 0% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 26 Nov 2020 | 0.00 | 0.00 | 0% |
Loan 8387-CAM
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 25.00 | Cumulative Contract Awards | |||
| ADB | 0.00 | - | 0.00 | 0.00 | % |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 25.00 | - | 0.00 | 0.00 | % |
Loan 8389-CAM
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 26 Nov 2020 | 07 Dec 2020 | - | 30 Aug 2027 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 5.00 | Cumulative Contract Awards | |||
| ADB | 0.00 | 26 Nov 2020 | 0.00 | 0.00 | 0% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 5.00 | 26 Nov 2020 | 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 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.
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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.
| Title | Document Type | Document Date |
|---|---|---|
| Agricultural Value Chain Competitiveness and Safety Enhancement Project: Community Participation Framework | Resettlement Frameworks | Sep 2020 |
| Agricultural Value Chain Competitiveness and Safety Enhancement Project: Output 3 Social Safeguards Due Diligence Report | Safeguards Due Diligence Reports | Sep 2020 |
| Agricultural Value Chain Competitiveness and Safety Enhancement Project: Environmental and Social Management System Arrangement | Environment and Social Management System Arrangements | Sep 2020 |
| Agricultural Value Chain Competitiveness and Safety Enhancement Project: Output 2 Social Safeguards Due Diligence Report | Safeguards Due Diligence Reports | Sep 2020 |
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.
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Tenders
No tenders for this project were found.
Contracts Awarded
No contracts awarded for this project were found
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Agricultural Value Chain Competitiveness and Safety Enhancement Project: Procurement Plan | Procurement Plans | Oct 2020 |