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Cambodia: Agricultural Value Chain Competitiveness and Safety Enhancement Project

Sovereign (Public) Project | 50264-002 Status: Approved

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 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 Competitiveness and Safety Enhancement Project
Project Number 50264-002
Country Cambodia
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 9216-CAM: Agricultural Value Chain Competitiveness and Safety Enhancement Project
Japan Fund for Poverty Reduction US$ 3.00 million
Loan 4013-CAM: Agricultural Value Chain Competitiveness and Safety Enhancement Project
concessional ordinary capital resources lending / Asian Development Fund US$ 70.00 million
Loan 8387-CAM: Agricultural Value Chain Competitiveness and Safety Enhancement Project
Agence Francaise de Developpement US$ 25.00 million
Loan 8389-CAM: Agricultural Value Chain Competitiveness and Safety Enhancement Project
ASEAN Infrastructure Fund US$ 5.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
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 - Rural market infrastructure

Finance / Inclusive finance - Small and medium enterprise finance and leasing

Transport / Road transport (non-urban)

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.

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Title Document Type Document Date
Project Agreement for Loans 4013-CAM and 8389-CAM (Sathapana Bank): Agricultural Value Chain Competitiveness and Safety Enhancement Project Project/Program Agreements Dec 2020
Project Agreement for Loans 4013-CAM and 8389-CAM (Agricultural and Rural Development Bank): Agricultural Value Chain Competitiveness and Safety Enhancement Project Project/Program Agreements Dec 2020
Grant Agreement (Externally Financed) for Grant 9216-CAM: Agricultural Value Chain Competitiveness and Safety Enhancement Project Grant Agreement Dec 2020
Loan Agreement for Loan 8389-CAM: Agricultural Value Chain Competitiveness and Safety Enhancement Project Loan Agreement (Ordinary Resources) Dec 2020
Loan Agreement (Ordinary Operations [Concessional]) for Loan 4013-CAM: Agricultural Value Chain Competitiveness and Safety Enhancement Project Loan Agreement (Ordinary Resources) Dec 2020
Agricultural Value Chain Competitiveness and Safety Enhancement Project: Gender Action Plan Gender Action Plans Nov 2020
Agricultural Value Chain Competitiveness and Safety Enhancement Project: Report and Recommendation of the President Reports and Recommendations of the President Nov 2020
Agricultural Value Chain Competitiveness and Safety Enhancement Project: Project Administration Manual Project/Program Administration Manual Oct 2020
Agricultural Value Chain Competitiveness and Safety Enhancement Project: Procurement Plan Procurement Plans Oct 2020
Agricultural Value Chain Infrastructure Improvement Project: Project Data Sheet (Khmer Translation) Translated PDS Jul 2018

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 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