Climate Investment Funds (CIF) Grant No. TF097459 through ADB and World Bank

Preparation of a Strategic Pilot Program for Climate Resilience (PPCR) Project - Phase I

(November 2010- January 2013)

Climate Investment Funds (CIF)Grant No. TF097459

through ADB and World Bank

2

Preparation of a Strategic Pilot Program for Climate Resilience (PPCR) Project - Phase I

Consultative Workshop on PPCR Phase I Implementation 23-24 April 2012

Private Sector Scoping Study

Prepared by: Mr. Keo Chamroeun, [email protected]

Mr. Michele Mottolese, [email protected]

www.CamMoE-CCD-PPCR.org.kh www.pilot-program.blogspot.com

3www.CamMoE-CCD-PPCR.org.kh www.pilot-program.blogspot.com

TORs for a Scoping Study on PS Engagement in CCA• Background: The private sector scoping study as one of the two

activities under Component 3, linked to SPCR implementation.

• Objective: To formulate specific private sector interventions for inclusion in the detailed design of Cambodia’s SPCR and possibly other climate change adaptation projects.

• Sectors: agriculture, rural infrastructure, water resources.• Target: Organized farmers, MSMEs, Companies and Institutions,

NGOs, MDBs, Government agencies participating in the program

• Outputs: 1 Study report; 1 Mission report, 1 PowerPoint• Timeframe: Mid Feb – Mid July 2012• Human Resources: 2 Consultants and inputs from PPCR Team.

PPCR Phase I – Private Sector Scoping Study


Methodology and Work Plan Methodology• Desk review; semi-structured interviews with Key Informants,

included data collection; Selected field visits; Technical Meetings• Market Development Analysis approach

Work Plan


Mid Feb - March April - May June - Mid July

- Desk Review- Key Informant Interviews- Milestone: matrix with initial options

- More KIIs- Field visits- Technical meetings- Milestone: Report Outlines

- Follow-up KIs- Draft report, collection of feedback- Milestone: final Report produced


Report Structure


Sections

Executive Summary (in English and Khmer)

Introduction and Overview

Legal and Institutional Background

Objective of the Mission

Results and Financial and Economic Aspects

Findings and Analyses

Conclusions and Recommendations


CCA and Private Sector Vulnerabilities


• Vulnerability: the degree to which a system is susceptible to, and unable to cope with, adverse effects of climate change (IPCC 2007)

• Agriculture sector as most vulnerable due to its high dependence on climate and because of low adaptive capacity (ADB, 2009, CHDR, 2011). Climate Change increases challenges for water management and infrastructures (SPCR).

• Examples of vulnerabilities:• General awareness of PS but lack of practical options.• Changing of rice planting patterns and need for more farming

flexibility. A similar scenario applies to the fishery sector.• Clients of MFIs affected by 2011 flooding have difficulties in re-

payment, which increase lending risk.

7www.CamMoE-CCD-PPCR.org.kh www.pilot-program.blogspot.com PPCR Phase I – Private Sector Scoping Study


CCA and Private Sector Opportunities


• Adaptive Capacity: the ability of a system to adjust to climate change to moderate potential damages, take advantage of opportunities, or cope with the consequences (IPCC 2007).

• Solid Policy Framework for both CC mainstreaming and PS support.

• Examples of response to CC do exist and have three characters:• Facilitated access to credit• Deployment of ‘know-how’, appropriate technologies and

business services.• Partnership among private sector, civil society, public sector.

• New international mechanisms for CC finance and technology transfer can provide new opportunities for Cambodia, but cross-sector coordination, and partnership with private sector is necessary (CHDR, 2011).


Engaging Private Sector in CCA (1/2)


To engage PS in investing in CCA, we suggest to work simultaneously in:• Supporting Expansion of Financial Services, expanding MFIs and

other institutions credit via credit guarantees and other measures such as TAs, allowing PS to reduce costs of investment

• Supporting Expansion of Non Financial Services: transfer of know-how, business management, access to better inputs, markets, infrastructures, to reduce risks for investments

• Who: Ministries and Sub-National level, Development Partners and NGOs, Private Sector

• How: PPP; climate change development assistance can play a triggering role with a multiplier effect


Engaging Private Sector in CCA (2/2)


Sample Diagram of Market System


Initial Findings for PS Engagement (1/3)


Agriculture

Develop framework for innovative micro-credit lines

Supporting the development of resilient rice seeds market

Support rice-millers in investing in gasifies; expanding biodigesters programme

Enhancing rice-millers post-harvest facilities via innovative credit line

Crop insurance and other micro-insurances

Support climate change adaptation in fishery sector

Enhancement of CC-related businesses among MSMEs via pro-poor VCM




Rural Infrastructures

Developing PPP framework for Climate proofing rural infrastructures

Capacity building for national Consulting and Construction firms

Promotion of PS investments in provincial roads via BoT model

PS investments in provincial markets and other infrastructures /services

Expanding hybrid rural electricity enterprises (mini-grids).




Water Resources

Options for Private Sector involvement in O&M in irrigation schemes

Supporting expansion of small irrigation schemes via credit provision

Options for enhancing drip-irrigation markets

Evaluating drinking water via PS concessions

Drinking water via solar panels


Inputs for Target Areas of Reference


• SPCR engagement: • Agriculture & water supply: Koh Kong and Mondulkiri• Agriculture & business adapt.: BTM, KCM, KTH, SRP• Provincial roads: PRV, SVR, KCN, KSP• South. Corridor towns: Poipet, BTB, Neak Leung, Bavet.• Flood-resilient infrastr.: BTM, SRP, KTH, BTB, PST, KCM• S-Medium scale irrigation: KTH, BMC, SRP • Flood and drought management: PST, Kratie

• Commercial/Agricultural Activities: High in BTB, PRV, KCM.

• Environmental vulnerability: Very high in BTB, PRV; High in KCM, KCN, KTH, SVR (Source: NAPA 2006).


Some Points for The Way Forward


• Boosting partnership among social investment funds, MFIs, Ministries, Project developers.

• Governance and O&M of irrigation schemes.• Agricultural seeds markets expansion and flexibility in farming.• The continuum mitigation – adaptation• Sector-specific Technical Meetings

Day 2: Multi-stakeholder Platform• RGC/Donors/NGOs/PS partnership in supporting appropriate

technology development and reduction of business risk.• Emergency, rehabilitation and DRR: PS/NGOs synergies• A platform for awareness raising and information sharing.

16

Thanks

www.CamMoE-CCD-PPCR.org.kh www.pilot-program.blogspot.com

Documents

Climate Investment Funds (CIF) Grant No. TF097459 through ADB and World Bank