QUARTERLY PROGRESS REPORTricesdp.org/asset/technicals/RiceSDP Q1 2016 QPR Final.pdf · Annex 1 Monitoring Frameworks Annex 2 Financial Summaries Annex 3 Summary of Priority Sub-Projects

ADB Loan 8271-CAM (SCF) / 3007-CAM (SF) ADB Grant 0350-CAM (SCF)

CLIMATE RESILIENT RICE COMMERCIALIZATION SECTOR DEVELOPMENT PROGRAM

QUARTERLY PROGRESS REPORT Q1 2016

MEF/PMO 7/19/2016

CLIMATE RESILIENT RICE COMMERCIALIZATION SECTOR DEVELOPMENT PROGRAM Q1 2016 QPR

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TABLE OF CONTENTS

A. INTRODUCTION ............................................................................................................................... 1

B. BASIC DATA ..................................................................................................................................... 2

C. PROGRAM PURPOSE AND IMPACT ................................................................................................. 4

D. SUMMARY OF PROJECT STATUS ..................................................................................................... 6

E. UTILIZATION OF FUNDS .................................................................................................................. 7

F. SUMMARY OF PHYSICAL IMPLEMENTATION PROGRESS ................................................................ 8

G. PROGRESS AND ACHIEVEMENTS DURING Q1 2016 ........................................................................ 8

G.1 Output 1: Conducive Legal and Regulatory Environment....................................................... 8

G.2 Output 2: Agricultural Land-Use Zoning Improved ................................................................. 9

G.3 Output 3: Climate Resilient Rice Value Chain Infrastructure developed ................................ 9

G.4 Output 4: Enhanced rice value chain support services ......................................................... 10

G.5 Output 5: Feasibility Study, Design and Pilot Testing of WICI .............................................. 11

G.6 Output 6: Efficient Program management and Implementation ......................................... 11

H. GENDER ACTION PLAN .................................................................................................................. 12

I. ENVIRONMENT AND CLIMATE CHANGE ....................................................................................... 12

J. RESETTLEMENT ............................................................................................................................. 12

K. ASSESSMENTS OF RISKS, ASSUMPTIONS AND COMPLAINCE WITH CONVENANTS ...................... 12

K.1 Assessment of Risks and Assumptions.................................................................................. 12

K.2 Compliance with Covenants ................................................................................................. 13

K.3 Compliance conditions for ADB Program Loan - 3006 (CAM) .............................................. 13

L. PROGRAM ISSUES AND REMEDIAL ACTION .................................................................................. 14

Annex 1 Monitoring Frameworks

Annex 2 Financial Summaries

Annex 3 Summary of Priority Sub-Projects

Annex 4 Gender Action Plan

Annex 5 PIC Activities

Annex 6 Policy Compliance Matrix

Annex 7 Agreed Action Plan

Annex 8 Risk Management Matrix

Annex 9 Compliance with Loan and Grant Covenants


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ACRONYMS AND ABBREVIATIONS

ADB Asian Development Bank

AEA Agro-ecosystems Analysis

AFD Agence Française de Développement

AFD-SCCRP AFD Support to the Commercialization of Cambodian Rice Program

CARDI Cambodian Agricultural Research and Development Institute

CARM ADB Cambodian Resident Mission

CCCA Cambodia Climate Change Alliance

CEFP Committee for Economic and Financial Policies

CISIS Cambodia Information System on Irrigation Schemes

CLUP Commune Land-use Planning

CS Construction Supervision

DAE Department of Agricultural Extension

DAEng Department of Agricultural Engineering

DD Detailed Design

DMF Design and Monitoring Framework

EARF Environmental Assessment Review Framework

EIA Environmental Impact Assessment

EMP Environment Management Plan

EoI Expression of Interest

FAO Food and Agriculture Organization (of the United Nations)

FS Feasibility Study

FWUCs Farmer Water User Community

GAFSP Global Agriculture and Food Security Program

GAP Gender Action Plan

GDA General Directorate of Agriculture (of MAFF)

GIS Geographic Information System

IEE Impact Environment Examination

ISS Implementation Support Specialist

LUP Land Use Planning

M&E Monitoring and Evaluation

MAFF Ministry of Agriculture, Forestry and Fisheries

MEF Ministry of Economy and Finance

MIH Ministry of Industry and Handicrafts (formerly under MIME)

MLMUPC Ministry of Land Management, Urban Planning and Construction

MOWRAM Ministry of Water Resources and Meteorology

NIO National Implementation Office

O&M Operation and Maintenance

PDA Provincial Department of Agriculture

PDWRAM Provincial Department of Water and Resources and Meteorology

PIC Project Implementation Consultants

PIO Provincial Implementation Offices


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PMO Project Management Office

PPCR Pilot Program for Climate Resilience

PPMS Program Performance Monitoring System

PPP Public-Private Partnership

PPTA Preparatory Project Technical Assistance

QPR Quarterly Progress Report

RGC Royal Government of Cambodia

RSPG Rice Seed Producer Group

SCF Strategic Climate Fund

SDP Sector Development Program

SIP Sub-project Identification Proposal

SNEC Supreme National Economic Council

SPCR Strategic Program for Climate Resilience

TA Technical Assistance

TOR Terms of Reference

UNFCC United Nations Framework Convention on Climate Change

WICI Weather-indexed Crop Insurance


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A. INTRODUCTION

1. The Climate Resilient Rice Commercialisation Sector Development Program (Rice-

SDP), which commenced in November 2013, supports the implementation of the ‘Policy on

the Promotion of Paddy production and Rice Export’ of the Royal Government of Cambodia

(RGC). It is designed to help transform the predominantly subsistence rice sector into a

commercially oriented one by improving household and national food security and expand rice

export through (i) removing the legal and regulatory constraints inhibiting rice

commercialization; (ii) improving productivity of paddy crops and consistency in quality of

milled rice; (iii) enhancing rice value chain support services; and (iv) addressing risks of

climate change through mitigation and adaptation.

2. The Quarterly Progress Report (QPR) for Quarter 1 of 2016 provides a description of

the progress that has been achieved during that period. The PPMS that has been developed

by the PIC team will be used as the basis for the QPRs commencing in Q2, in order to allow

more time for training of the PIO and NIO teams in the collection of the data for each indicator

and the establishment of the database for each office. The QPR also includes as summary of

the financial progress although the rates of disbursement are still very low due to the long

delays in the commencement of many activities. It is anticipated that commencing in Q2 the

rates of disbursement will improve.


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B. BASIC DATA

ADB Loan/Grant Numbers

ADF Loan 3006 - CAM; ADF Loan 3007 - CAM; SCF Loan 8271 - CAM; Grant SCF 0350 - CAM; GAFSP Grant 0349 - CAM.

Program Title Climate Resilient Rice Commercialization Sector Development Program (Rice SDP)

Borrower Royal Government of Cambodia

Executing Agency Ministry of Economics and Finance (MEF)

Implementing Agencies

Ministry of Agriculture, Forestry and Fisheries (MAFF) Ministry of Water Resources and Meteorology (MOWRAM) Ministry of Land Management, Urban Planning and Construction (MLMUPC) Provincial Governments (Battambang, Kampong Thom and Prey Veng)

Program Steering Committee

Committee for Economic and Financial Policies (CEFP)

Total Project Cost (USD million)

87.41 (excluding taxes and duties of USD 5 million)

Program Financing (USD million)

ADB Loans

ADF 3006 - CAM: 24.00 ADF 3007 - CAM: 31.00 SCF 8271 - CAM: 5.00 ADB Grants

SCF 0350 - CAM: 4.50 GAFSP 0349 - CAM: 14.60

Date of Loan/Grant Approval by ADB

27th June 2013 for all Loans and Grants

Date of Signing of Loan/Grant Agreements

26th August 2013 for all Loans and Grants

Date of Effectiveness of ADB Loan/Grant

13th November 2013 for all Loans and Grants

Closing Date of ADB Loan/Grant

30th June 2017 for ADB Loan 3006 - CAM 31st March 2020 for other ADB Loan and Grants and GAFSP Grant

Dates of Last ADB Review Mission

10 - 15 February 2016

Program Impact Increased net incomes of stakeholders along the rice value chain.

Program Outcome Enhanced production of quality rice in Cambodia while preserving the natural resource base.

Components

1. Conducive legal framework and regulatory environment established to facilitate climate-resilient commercialization:

- Promoting production and distribution of improved quality seed. - Strengthening agricultural land management. - Strengthening farmer’s organisations and promoting contract farming; - Facilitating the domestic trading and export of milled rice.

2. Agricultural land-use zoning improved:

- Establishing land-use zones. - Updating rice ecosystems and soil classification maps for identification of higher

yielding rice growing areas. - Incorporating agro-ecosystems analysis into commune land-use planning; - Developing the capacity of MLMUPC at national and sub-national levels to

undertake joint work in relation to agricultural land-use planning. 3. Climate resilient rice value chain infrastructure developed

- Rehabilitation and climate proofing of irrigation systems. - Construction of paddy drying and storage facilities.


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- Construction of seed cleaning, drying, grading and storage facilities. 4. Rice value chain support services enhanced to improve quality of Cambodian rice

- Improving the availability and quality of commercial rice seed; - Upgrading technical extension materials to guide production in the four main

rice crops. - Capacity building (technical and financial) of mill managers and operators; - Facilitating access to credit by farmers, traders and millers.

5. Weather Indexed Crop Insurance (WICI) piloted

- Undertaking a detailed Feasibility Study (FS) to determine the appropriateness of a WICI scheme.

- Designing the operational parameters, product penetration plan and institutional arrangement.

- Piloting the scheme in selected areas in three target provinces. 6. Efficient program management and implementation

- Effective project management; - Capacity building of the Project Management Officer (PMO) and each national

Implementation Offices (NIOs) and the Provincial Implementation Offices (PIOs).

- Coordination between policy development and investment activities.

Program Area

The Project covers three provinces: Battambang (BTB), Kampong Thom (KPT) and Prey Veng (PRV). A number of sub-projects will be carried out in each target province for (i) rehabilitation of existing irrigation, drainage and flood control systems; (ii) paddy drying and storage facilities to be operated by private sector under Public Private Partnerships (PPPs); and (iii) rice seed drying and storage facilities to be operated by private sector under PPP arrangements.


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C. PROGRAM PURPOSE AND IMPACT

4. The Climate Resilient Rice Commercialization Sector Development Program (Rice-

SDP) comprises a policy-based program loan together with other loans and grants from ADB

sources. The Rice=SDP impact will be increased net incomes of stakeholders along the rice

value chain. The outcome is enhanced production of quality rice in Cambodia while preserving

the natural resource base.

5. The Rice-SDP will address key high priority and strategic measures stated in the Rice

Policy to improve national food security and expand rice export through (i) removing legal and

regulatory constraints inhibiting rice commercialization; (ii) improving productivity of paddy

crops and consistency in quality of milled rice; (iii) enhancing rice value chain support services;

and (iv) addressing risks of climate change through mitigation and adaptation. The Rice-SDP

has the following six outputs:

Output 1 - A Conducive Legal and Regulatory Environment established to facilitate

Climate-Resilient Rice Commercialization

This output focuses on legal and regulatory reforms that (i) promote production and

distribution of improved quality seed; (ii) strengthen agricultural land management; (iii)

strengthen farmers’ organizations and promote contract farming; and (iv) facilitate the

domestic trading and export of milled rice.

Output 2 - Agricultural Land-use Zoning improved

This output comprises: (i) establishing land-use zones; (ii) updating rice ecosystems

and soil classification maps for identification of higher yielding rice growing areas; (iii)

incorporating agro-ecosystem analyses into commune land-use planning, and (iv)

developing the capacity of Ministry of Agriculture, Forestry and Fisheries (MAFF) and

Ministry of Land Management, Urban Planning and Construction (MLMUPC) at the

national and sub-national levels to undertake joint work in relation to agricultural land-

use planning.

Output 3 - Climate Resilient Rice Value Chain Infrastructure developed

This output comprises high priority investments in three major rice-producing provinces

– Battambang(BTB), Kampong Thom (KPT), and Prey Veng (PVG). The investments

include: (i) rehabilitation and climate proofing of irrigation systems; (ii) construction of

paddy drying and storage facilities; and (iii) construction of seed cleaning, drying,

grading and storage facilities. The investments have been identified and prioritized

based on provincial development priorities.

Output 4 - Rice Value Chain Support Services Enhanced to Improve Quality of

Cambodian Rice

This output comprises: (i) improving the availability and quality of commercial rice

seed; (ii) upgrading technical extension material to guide production in the four main

rice crops; (iii) capacity building (technical and financial) of mill managers and

operators; and (iv) facilitating access to credit by farmers, traders, and millers.


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Output 5 - Weather-indexed Crop Insurance Piloted

This output comprises: (i) undertaking a detailed feasibility study to determine the

appropriateness of a weather-indexed crop insurance scheme; (ii) designing the

operational parameters, product penetration plan, and institutional arrangements; and

(iii) piloting the scheme in selected areas in three program provinces.

Output 6 - Efficient Program Management and Implementation

This output comprises: (i) effective program management; (ii) capacity building of the

Program Management Office (PMO) and each National Implementation Office (NIO)

and Provincial Implementation Office (PIO); and (iii) coordination between policy

development and investment activities.


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D. SUMMARY OF PROJECT STATUS

Status of project scope/implementation arrangements compared with those in the report and RRP, and whether major changes have occurred or will need to be made:

The Program has made slow progress so far due to a number of factors concerning the Project Implementation Consultant (PIC) team and also the limited capacity of the IAs and

their relative unfamiliarity with ADB project procedures. The scope and implementation arrangements remain in line with those of the RRP to date.

Assessment of the likelihood that the Project purpose will be met in part or in full, and whether remedial measures are required based on the current project scope and

implementation arrangements:

It is too early to make any definitive judgement on this. The Program has made very limited progress during the first year but the achievement of the compliance conditions for the

Program loan fund release are reasonably well on track. With the restructuring of the PIC team and the mobilisation of key team members there can now be much more consistent

and skilled technical support provided to the IAs. The production of the PPMS and the AWPB for 2016 these will provide a guide for the implementation during 2016 and a better

means of tracking performance.

An assessment of changes to the key assumptions and risks that affect attainment of the development objectives:

Of the risks identified in the RRP the most challenging issue concerns “the inherently complex nature of sector development program modality and limited technical skills and resources

to implement legal and regulatory reforms”. PIC Agricultural Policy Specialists are assisting the government in implementing legal and regulatory reforms for compliance with the

release of the Second Tranche in Q2 2016. The current situation is summarised in Annex 5.

Other program developments, including monitoring and reporting on environmental and social requirements that might adversely affect the pro's viability or

accomplishment of immediate objectives:

At this early stage, no significant factors have emerged which might adversely affect the project’s long-term viability. The accomplishment of immediate objectives is partly

constrained by the issues that are described in Section J.

CLIMATE RESILIENT RICE COMMERCIALIZATION SECTOR DEVELOPMENT PROGRAM Q1 QPR 2016

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E. UTILIZATION OF FUNDS

6. The Climate Resilient Rice Commercialization Sector Development Program (Rice-

SDP) is funded through loans/grants from ADB with a total amount of USD 63.3 million,

together with a Program loan amounting to USD 24 million. The breakdown is as follows:

ADB Program Loan No. 3006 - CAM USD 24.0 million

ADB Loan No. 3007 - CAM USD 31.0 million

Global Agriculture & Food Security program (GAFSP) Grant No. - 0349 USD 14.6 million

Strategic Climate Fund (SCF) Loan No. 8271 - CAM USD 5.0 million

SCF Grant No. 0350 - CAM USD 4.5 million

Royal Government of Cambodia USD 8.3 million

7. The cumulative disbursement (for investment and recurrent costs) for each funding

source is as follows:

Table 1

Summary of Cumulative Disbursement by EA/IAs and Funding Source

(USD)

8. The overall cumulative disbursement, for investment and recurrent (implementation

and supervision costs), at the end of Q1 2016 was USD 1,256,091 (69 percent) and 564,038

(31 percent) respectively and the overall disbursement rate was eight percent.1 The total

disbursement during Q1 2016 amounted to USD 380,144 which represented a disbursement

rate of six percent against the AWPB for 2016.

1 Annex 2 contains Summary Tables of Expenditure and Disbursement Progress.

Overall

Budget

Cumulative

Disbursement

to date

Budget

Balance

%

Disbursement

rate

EA/IA

MEF/PMO 11,424,300 1,161,875 10,262,425 10%

MAFF/NIO 23,751,900 178,437 23,573,463 1%

MOWRAM/NIO 17,957,200 166,528 17,790,672 1%

MLMUPC/NIO 2,917,500 93,107 2,824,393 3%

BTB/PIO 2,144,800 76,793 2,068,007 4%

KPT/NIO 2,144,800 83,025 2,061,775 4%

PVG/NIO 2,144,800 60,366 2,084,434 3%

Total Budget 62,485,300 1,820,129 60,665,171 3%

Source of Funds

ADB Loan No. 3007 - CAM 30,073,600 940,388 29,133,212 3%

GAFSP Grant No. 0349 14,601,400 178,514 14,422,886 1%

SCF Grant No. 0350 -CAM 4,997,600 0 4,997,600 0%

SCF Loan No. 8271 - CAM 4,501,200 208,570 4,292,630 5%

RGC 8,311,500 492,657 7,818,843 6%

Total Budget 62,485,300 1,820,129 60,665,171 3%

Agency/

Category


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F. SUMMARY OF PHYSICAL IMPLEMENTATION PROGRESS

9. During the quarter the Annual Work Plan and Budget (AWPB) for 2016 was finalised

and a draft was submitted to ADB/CARM for approval. The AWPB had been drafted during

Q4 2015 but the submission was delayed due to the unexpected departure of the Project

Implementation Consultant (PIC) Team Leader due to ill health. The replacement PIC Team

Leader was mobilised in mid-February was able to complete the compilation of the AWPB

document in consultation with the PMO, NIO and PIO teams.

10. There were a total of seven international consultants and nine national consultants

working during the quarter. The new team members mobilised during the quarter were the

Team Leader, PPP Specialist and the national Implementation Support Specialist (ISS) for

BTB.

11. ADB conducted a short Review Mission from 10th to 15th February which was led by

the Project Officer from ADB Manila. The Aide Memoire included an agreed action plan and

the current status of the action plan in shown in Annex 6. At the conclusion of the Mission it

was announced that the supervision of the RiceSDP would be transferred to ADB/Cambodian

Resident Mission (CARM) with effect from March 1st.

G. PROGRESS AND ACHIEVEMENTS DURING Q1 2016

12. The main accomplishments during Q1 can be summarised as follows:

G.1 Output 1: Conducive Legal and Regulatory Environment

13. The current status of the progress of the compliance with the covenants is summarised

as follows:

Promoting local seed production and distribution: The Cambodian National Seed

Policy, which had been drafted and was under review by MAFF/GDA, has been revised

and will be further reviewed in May when the PIC international Seed Specialist returns.

The 1st draft of the National Seed Standards has been completed and work has

commenced on the production of a revised 2nd draft. The 1st draft of the Prakas on

Procedures for Providing Quality Seed Certification has been completed and work has

commenced on the 2nd draft. The 1st draft of the General Introduction to the

Examination of Distinctiveness, Uniformity and Stability of New Varieties of Plants has

been completed and work has commenced on the 2nd draft. Similarly, the Guidelines

for the Conduct of Tests for Distinctiveness, Uniformity and Stability of Rice has been

completed.

Strengthening agricultural land management: In the case of the Law on

Management and Use of Agricultural Land the 1st draft was prepared and a regional

consultation was conducted although the draft remains lacking expert advice on

gender issues for the inclusion of the role of women in the draft law. The 1st draft of

the National Action Program to combat land degradation in Cambodia has been

prepared and this was submitted to the Council of Ministers for review but was returned

for more information to be included. An outline of the guideline for establishment of

agricultural land use zones has been prepared but there is not yet an approval of the

outline.


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Improvement phytosanitary restrictions: The Law on Plant Protection and

Phytosanitary Measures has been drafted but there is a need for further working group

meetings to review the content.

G.2 Output 2: Agricultural Land-Use Zoning Improved

G.2.1 Output 2.1: Undertake Commune Agro-Ecological Analysis (CAEA)

14. The MAFF/NIO team have prepared a Concept Paper for the conduct of the CAEA in

the 90 pilot communes. Because of the introduction of a number of new tools in the guideline

for CAEA there will be Training of Trainers (ToT) courses conducted in each province for the

district agriculture staff to ensure that they fully understand these procedures. The Concept

Paper was reviewed by the PIC team and was endorsed to the PMO for them to submit to

ADB/CARM for approval. It is planned to commence the first ToT in BTB province early in Q2.

G.2.2 Output 2.2: Incorporation of the CAEAs into the Commune Land Use Plans (CLUPs)

15. Following the Review Mission in February the Ministry of Land Management, Urban

Planning and Construction (MLMUPC) NIO team, with the support of the PIC team, have

drafted the ToR for the hire of consultants to conduct the CLUPs in the 90 target communes.

During March the ToR was extensively reviewed several times and by the end of the quarter

was ready to be finalised for submission to ADB/CARM for their no objection. The completion

of the CLUPs is to be conducted over a three-year period and should commence in Q4 2016.

G.2.3 Output 2.3: Rice ecosystem Mapping

16. The MAFF/NIO team have prepared a concept paper outline the procedure for the

preparation of the rice eco-system maps. The objective will be to (i) update the agricultural soil

classification and database using existing data/information and conduct additional soil

sampling and analysis in order to produce updated soil classification maps; (ii) update existing

rice ecosystem map focusing on the three target provinces; and (iii) establish a database on

soil type, land use and site specific suitability for the agricultural development plan.

G.3 Output 3: Climate Resilient Rice Value Chain Infrastructure developed

G.3.1 Output 3.1: Recruitment of national consultants for irrigation sub-project

feasibility studies

17. There are a total of 19 irrigation sub-projects that were re-prioritised by the Ministry of

Water Resources and Meteorology (MOWRAM)/NIO with support from the PIC team. Based

upon the ToR for the Feasibility Studies, Detailed Design and Construction Supervision

(FSDDCS) the consultant team was selected and mobilised in February 2016. They have

commenced work on the two irrigation sub-projects which were studied during the Project

Preparatory Technical Assistance (PPTA) namely Chhuck Khsak in KPT province and Prey

Sanhga in BTB province. The consultants will update the original FSs and revise all documents

as needed prior to submission by MOWRAM for no objection.

G.3.2 Output 3.2: Recruitment of national consultants for seed/paddy drying and

storage facilities

18. In the case of the FSDDCS for rice seed/paddy drying and storage there are 11 sub-

projects identified by the MAFF/NIO. The ToR for the FSDDCS consultants was prepared by

the MAFF/NIO with support from the PIC team and the announcement for Expressions of

Interest was made in March with a closing date in April.


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G.3.3 Output 3.3: Works contract procurement for rehabilitation of identified irrigation

schemes

19. There has been no progress yet. When the revision of the two FSs for Chhuck Khsak

and Prey Sangha sub-projects has been completed and ADB no objection provided the

MWORAM/NIO will proceed with the budding advertisement for the civil works contract award.

G.3.4 Output 3.4: Works contract procurement for paddy drying and storage facilities

20. There has been no progress yet. It is envisaged that the works contract procurement

for the first facilities will not commence until Q2 2017.

G.3.5 Output 3.5: Works contract procurement for rice seed drying and storage

facilities

21. There has been no progress yet. It is envisaged that the works contract procurement

for the first facilities will not commence until Q2 2017.

G.3.6 Output 3.6: Contract services for implementation of sub-project associated

initiatives

22. In the case of the land levelling there was a consultative workshop organised in KPT

in March 2016 to discuss with local contractors, as well as PIO representatives from the PDAs

in each province, the strategy for proceeding with the land levelling. The workshop included

the conduct of demonstrations on land levelling organised by the MAFF Department of

Agricultural Engineering. The workshop concluded with the conduct of a meeting attended by

the RiceSDP PMO Director and Manager during which there were discussions of the bidding

procedure that could be applied for the award of works contracts for the land levelling to the

local contractors. The main issues that surfaced were (i) the lack of experience of the

contractors with formal bidding procedures; (ii) the lack of legal registration by local contractors

with the provincial authorities; (iii) the lack of equipment for performing the precision land

levelling; and (iv) the lack of knowledge on the techniques for performing the precision land

levelling. The PIC Team Leader was charged with the responsibility for the preparation of a

Concept Paper analysing the costs of doing land levelling based upon commercial practice

and also the financial benefits of land levelling.

G.3.7 Output 3.7: Procuring Public-Private Partnerships (PPPs) to operate paddy

drying and storage facilities

23. Following the mobilisation of the PIC PPP specialist an assessment has commenced

of the opportunity for the application of the PPP modality for paddy drying and storage

facilities. The assessment entails field visits to each target province to meet with stakeholders

in the rice post-harvest sector to determine their interest in this mode of support in relation to

the paddy/seed drying and storage sub-projects that were identified during the PPTA. The

results of this assessment will be available by the end of Q2 2016.

G.4 Output 4: Enhanced rice value chain support services

G.4.1 Output 4.1: Increased availability of quality rice seed

24. A preliminary rice seed action plan has been prepared by the MAFF/NIO team with the

support of the PIC team. This plan provides preliminary estimates of the volumes of foundation

and registered rice seed that will be required each year to satisfy the estimated demand for

certified seed within the irrigation sub-project sites areas. It also proposes an assessment of

the existing agriculture stations in each target province that can take responsibility for the


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production of registered seed, and an assessment of the capacity of the Rice Seed Producer

Groups(RSPGs)/Agricultural Cooperatives (ACs) to produce the certified rice seed, using the

registered seed purchased from the agriculture stations, which will be sold to farmers. The

plan also includes an assessment of each RSPGs/ACs to identify the support that will be

required to increase their production capacity and the training support that will be delivered.

In order to prepare the staff of the District Office of Agriculture (DoA) there will be a Training

of Trainers (ToT) on Rice Seed Production Farmer Field Schools (FFSs) conducted

commencing in Q2 2016. It is estimated that an area of at least eight hectares will be required

for registered rice seed production on the agriculture station for the 2016 wet season crop.

G.4.2 Output 4.2: Expand and develop technical extension services

25. No progress has yet been made. This is an activity which is under the responsibility of

the PIOs. There is a need for further discussion between the MAFF/NIO and the PDAs to

identify the scope of these extension activities that will be implemented.

G.4.3 Output 4.3: Enhance business management capacities

26. No progress has been made yet. This activity will commence in 2017.

G.4.4 Output 4.4: Improved Access to and Reduced Cost of Financing

27. No progress has been made yet. This activity will commence in 2017.

G.5 Output 5: Feasibility Study, Design and Pilot Testing of Weather Indexed Crop

Insurance (WICI)

28. The ToR for the conduct of the Feasibility Study and the Pilot Testing of the WICI was

approved by ADB and the request for EoIs was advertised in February 2016. At the closing

date in March there has been only two submissions which was insufficient and there was no

request for extension of the deadline.

G.6 Output 6: Efficient Program management and Implementation

29. There were some minor changes to the composition of the NIO and PIO staffing and

there is not yet fully gender disaggregated data available for the project counterpart teams.

The PIC team provided continuing support during the quarter with the mobilisation of the

replacement Team Leader and PPP Specialist. The international M&E Specialist and Seed

Specialist also completed short term inputs during the quarter. The replacement national

Implementation Support Specialist for BTB province was mobilised.

30. During the quarter a decision was made to deploy the PIC team to their respective

NIOs so that they can work in daily contact with their counterparts. This was made by possible

by the establishment of dedicated office space and facilities by each of the NIOs. The PMO

completed the procurement of the office furniture for each NIO and the procurement of the

office furniture and equipment for the PIOs also commenced during the quarter.

31. The PIC team provided support for the development of PPMS guidelines and prepared

the ToR for the Baseline Survey both of which were submitted to the PMO for review and

endorsement to ADB.


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H. GENDER ACTION PLAN

32. Gender considerations are cross-cutting throughout the Rice-SDP and the Program

will enhance access by women at all levels to decision making, resources and services.

Gender issues have also been incorporated into appropriate covenants of the Program Loans

and Grants. A comprehensive Gender Action Plan has been prepared and will be regularly

updated on a quarterly basis. 2

33. The PIC team includes two gender experts, one international and one national, who

will be mobilised in Q2 2016 to support the gender mainstreaming training program and the

assist in the incorporation of guidelines for gender consideration into al manuals that are

developed.

I. ENVIRONMENT AND CLIMATE CHANGE

34. Through the preliminary capacity needs assessment conducted in 2015, it was

identified that the staff of the PMO, NOIs and POIs have a limited knowledge of climate

change. This is in terms of technical, economic, social, political and policy issues and actions

needed on climate change vulnerability and adaptation. It includes the prediction of climate

change impacts and incorporating climate resilience engineering designs for the rehabilitation

of irrigation systems as well as Climate Smart Agriculture (CSA) technologies into rice seed

production programs and agricultural extension programs.

35. During Q1 plans were prepared for the conduct of initial awareness raising on

environmental issues for delivery to all NIO and PIO teams. The climate vulnerability

assessments for irrigation system and crop insurance produce that are weather-indexed will

be conducted though collecting historical data on climate information over the last ten years

and consultations with key stakeholders in the area of each sub-project in the three provinces.

Climate risk assessments will be conducted to identify the climate change adaptation options

applicable for the sub-project civil works to ensure that they incorporate proofing for climate

change

J. RESETTLEMENT

36. No progress has been made yet. There will be a need for a reassessment of the

resettlement needs of the two irrigation sub-projects that are being studied by the FSDDCS

consultants recruited by MOWRAM/NIO.

K. ASSESSMENTS OF RISKS, ASSUMPTIONS AND COMPLAINCE WITH

CONVENANTS

K.1 Assessment of Risks and Assumptions

37. A comprehensive assessment of risks and assumptions was undertaken from the

onset on project implementation. This has then been updated, during Q4 to ensure and assess

whether risk and assumptions are in line with the current status of implementation. A copy of

the updated risk matrix for the Rice-SDP project can be found in Annex 7.

2 Annex 3 provides the current Gender Action Plan.


13

K.2 Compliance with Covenants

38. The relevant loan agreements covering the Rice-SDP are as follows:

Loan Type Date

Loan Agreement (Special Operations) for Climate Resilient Rice Commercialization Sector Development Program (Loan 3006)

Agreements, Loan Agreement (Special Operations)

August 2013

Loan Agreement (Special Operations) for Climate Resilient Rice Commercialization Sector Development project (Loan 3007)


August 2013

Grant Agreement (GAFSP) for Climate Resilient Rice Commercialization Sector Development Project

Agreements, Grant Agreement August 2013

Loan Agreement (ADB Strategic Climate Fund) for Climate Resilient Rice Commercialization Sector Development Project


August 2013

Grant Agreement (ADB Strategic Climate Fund) for Climate Resilient Rice Commercialization Sector Development Project

Agreements, Grant Agreement August 2013

K.3 Compliance conditions for ADB Program Loan - 3006 (CAM)

39. As The Program Loan Covenants are established in the loan and grant agreements

with further reference to the Development Policy Letter (April 2013) and Appendix 4 Policy

Matrix of the RRP (June 2013).

40. The Loan Agreement for the Commercial Sector Development Program, ADF 3006

(August 2013) includes a specific agreement under Schedule 3 on the withdrawal of funds:

“4. No withdrawal shall be made from the Loan Account for the First Tranche unless

ADB is satisfied that the Borrower has met the policy actions for the release of the

tranche specified in Attachment 2 to this Schedule.

5. Notwithstanding any other provisions of this Loan Agreement and except as ADB

may otherwise agree, no withdrawals shall be made from the Loan Account for the

Second Tranche unless ADB is satisfied, after consultation with the Borrower, that (a)

sufficient progress has been achieved by the Borrower in the carrying out of the

Program; (b) the policy actions that were met for the release of the First Tranche

continue to be complied with by the Borrower; and (c) the Borrower has met the policy

actions for the release of the Second Tranche specified in Attachment 3 to this

Schedule.”

41. The PIC team have continued to provide support to the MAFF/NIO and the Technical

Working Groups to enable the achievement of the compliance conditions for the release of the

2nd tranche, which also require continued compliance by the Borrower for the actions under

this first tranche (Schedule 3, see paragraph 52 above). To date the work by the PIC has

established the status of each of the agreed policy actions. Most are currently not yet

compliant, although for most of these items the Government (MAFF) is in the process of

drafting the necessary legislation or establishing Technical Working Groups to consider these

issues. An update on the progress towards achieving compliance is shown in Appendix 5.

CLIMATE RESILIENT RICE COMMERCIALIZATION SECTOR DEVELOPMENT PROGRAM Q1 QPR 2016

14

L. PROGRAM ISSUES AND REMEDIAL ACTION

42. A series of issues were identified during Q1 2016 which are summarised below, together with where appropriate remedial action which is

being applied or is required.

Issue/Problem Proposed Remedial Action(s)

Output 1: Conducive Legal and Regulatory Environment established

Issues and Constraints in Policy Development

Some further progress has been made with the policy conditions and documents by MAFF/NIO and PIC working through each of the Technical Working Groups. In the case of those relating to

seed there has been better progress achieved/. However, in the case of those relating to land management and plant protection there remains much work to be done and there is cause for concern

that the deadline may not be met. A concerted effort is required by all concerned wo ensure that these deadlines can be met in order to avoid having to request an extension of the date until later

in the year.

Output 2: Agricultural Land Use Zoning Improved

Selection of target communes. There is a need for a consensus from the sub-national

level on the selection of the target communes.

The selection process for the identification of the 90 target communes was led by the PIC team in

collaboration mainly with the MLMUPC and MAFF NIO teams. The criteria which had been used

focussed on the selection of districts related to the location of the identified sub-project sites and

included all other communes in those identified districts. There is a need for further validation of the

commune selection with the sub-national teams to ensure there is a consensus amongst all project

stakeholders.

Output 3: Climate Resilient Rice Value Chain Infrastructure developed

Conduct of land levelling within sub-project sites areas. There is a lack of experience

and expertise on land levelling.

Initial consultations that have been conducted with local contractors in each province have revealed

that there are very few of them that have any part experience of land levelling. Past projects have

established land levelling demonstrations in conjunction with MAFF/Dept. of Agricultural Engineering

but the land levelling activities have not been continued after these projects were completed. There

has previously been no engagement with local contractors to identify an approach to enable them to

become involved in land levelling and they do not have the equipment that is needed, specifically the

laser equipment, which has to be imported. There are also differences of opinion on the actual cost

of the land levelling with the figures adopted by MAFF being somewhat higher than those quoted by

local contractors who have acquired the necessary equipment and have done land levelling. Local

contractors lack formal registration and are ineligible to bid for contract awards under the RiceSDP.

Further consultations are needed with farmers to introduce the concept of land levelling and the need

for them to contribute to the cost, and for local contractors to be trained in the use of the equipment

required.

Development of PPP approaches that can be applied for paddy drying and storage.

The proposed PPP modality in the PAM may not result in interest from the private sector.

The establishment of paddy drying and storage facilities as standalone facilities may need further

consideration to verify that they wold be viable and would attract private sector investment. The

proposed management arrangements whereby they remain the property of the provincial


15

Issue/Problem Proposed Remedial Action(s)

governments also need to be re-evaluated. In the case of the seed drying and storage facilities these

would be best targeted at existing Rice Seed Producer Groups (RSPGs) that have sufficient capacity.

Output 4: Enhanced Rice Value Chain Support Services

Bidding for the FSDDCS contracts. There have been few Expressions of Interest (EoIs)

submitted for the opportunity to bid for the contracts.

The FSDDCS contract has been advertised as one package, this is despite proposals from the PIC

team that the package should be split into up to three packages for each stage of the work. Because

of difficulties that have emerged with the availability of land at some sites it may not be possible to

pursue all of the proposed facilities. It will be necessary to re-bid for the FSDDCS contract and this

can provide an opportunity to reconsider the packaging of the contract(s).

Output 5: Feasibility Study, Design and Pilot Testing of WICI

Bidding for the WICI Feasibility study and Pilot Testing. There have been few

Expressions of Interest submitted for the opportunity to bid for the contract.

This is a very technical area that requires specific expertise in crop insurance work in other countries,

given that it is almost completely new to Cambodia. Nevertheless, crop insurance provides a huge

opportunity to make investment by smallholders a much more attractive proposition since the money

that they invest will be protected in the event of abnormal climatic events. Since there were few EoIs

submitted

Output 6: Efficient Project Management and Implementation

Lack of financial within the PIO teams. Long delays have been experienced in the

submission of the financial reports by the PIOs.

The PIO teams do not include adequate financial skills and the counterpart that are working are not

full time. Although the PIOs have one Administrative Assistant they are unable to compile the

necessary financial reports and also have limited English language capability. There is an urgent need

for each PIO to recruit a Financial Assistant who can ensure that there is improved financial

management for the PIO and that financial reports are submitted in a timely manner.

Working locations of the PIC team. The PIC team are working at the SNEC office and

have infrequent contact with the NIO teams.

The PIC team have been working within the offices available to them at the SNEC office. This has

been partly because the NIOs had not established office facilities for their staff and consultants and

there was no office furniture or equipment available. Since these constraints have been overcome

and there are now well equipped office facilities available in each NIO it is essential that the PIC

team members are deployed to work in their respective NIOs so that they can have daily interaction

with the NIO teams.

Annex 1

CLIMATE RESILIENT RICE COMMERCIALIZATION SECTOR DEVELOPMENT PROGRAM Quarterly Progress Report Q1 2016

16

DESIGN AND MONITORING FRAMEWORK FOR OVERALL PROGRAM

Design Summary

Performance Targets and Indicators with Baselines

Data Sources and

Reporting

Mechanisms

Assumptions and Risks

IMPACT:

Increased net

incomes of

stakeholders along

the rice value chain

Average farming household incomes increased from

$400 in 2010 to $700 by 2020

Revenue of rice exporters increased from

$100 million in 2012 to $600 million in 2020

Net profit of rice exporters increased from

$30 million in 2012 to $180 million by 2020

National Institute of Statistics’ Yearbook

Ministry of Commerce annual trade statistics

Assumption Medium-term macro-economic

Stability.

Risks

Lack of political commitment in Rice-SDP

implementation.

Climate change impacts may undo the intended gains and reduce anticipated benefits.

OUTCOME:

Enhanced production

of quality rice in

Cambodia while

preserving the natural

resource base

Paddy production increased from 8.0 million tons in

2012 to 9.5 million tons by 2018

Milled rice exports increased from 200,000 tons in

2011 to 1.2 million tons in 2017

Wet paddy exports to Viet Nam and Thailand reduced to 0.2 million tons by 2018 (2011 baseline: 2.2 million tons per annum) a.

MAFF annual crop

production

statistics

Ministry of Commerce annual trade statistics

Risks

Institutional and implementation risks from lack of

technical skills and resources.

Improper natural resources management may exacerbate the impacts of climate change.

OUTPUTS:

1. Conducive legal

and regulatory

environment

established to facilitate climate- resilient rice commercialization

By 2015, (i) policy and regulatory framework for local seed production are in place, (ii) guidelines for establishing agricultural land use zones are completed, (iii) legislation on sustainable management and use of agricultural land are operational, (iv) regulatory systems for farmers’ organizations and contract farming are functional, and (v) milled rice standards and trade facilitation measures in place

Tranche compliance reports prepared by the executing agency

Assumption Political parties and beneficiaries are

cooperative in the reform process.

Risk

Policy coordination and enforcement

are not strong.

Annex 1


17


Design Summary


Data Sources and

Reporting

Mechanisms


2. Agricultural land-use zoning improved

90 rice growing communes in target provinces

complete AEAs and incorporate into CLUPs by

2017.

90 groups of farmers consulted (with at least

40% female representation) during the

preparation of CLUPs by 2015.

Progress reports produced quarterly by the executing agency

Assumption MLMUPC can accommodate AEAs

as an input to CLUPs.

3. Climate- resilient

rice value chain

infrastructure

developed

23,000 hectares (ha) of command area served

by climate-resilient rehabilitated irrigation

structures by 2017 (40% unskilled laborers

employed in the rehabilitation are women; 50%

of construction subcommittee members are

women; two FWUCs established in each

irrigation scheme, with women occupying 30%

of the management positions).

Four seed drying and storage facilities constructed by 2017 with a combined storage capacity of 8,000 tons (30% unskilled laborers and 50% administrative staff are women).

Capacity for drying paddy in target provinces extended

by 2,000 tons per day and capacity for paddy storage in

target provinces extended by 40,000 tons by 2018.

Progress reports

produced quarterly

by the executing agency

Assumptions

Climate-resilient infrastructure is economically viable

and politically acceptable.

Efficient operation of control structures to deliver water to canals.

Private entities are interested and capable of managing facilities.

Risk

River basin studies do not take climate change impact into

Account.

Annex 1


18


Design Summary


Data Sources and

Reporting

Mechanisms


4. Rice value

chain support services enhanced to improve quality of Cambodian rice

2,400 tons of fragrant rice seed produced per

annum in target provinces by 2018

70% of farmers (disaggregated by sex) in target provinces using commercial seed every 2 years by 2018 (2012 baseline: 10%)

30% of farmers (disaggregated by sex) have leveled their paddy fields by 2018 (2012 baseline: 5%); 50% of farmers in target provinces (disaggregated by sex) obtain technical advice through trained input suppliers by 2016 (2012 baseline: 10%)

10 rice millers in target provinces use independent financial management advisory services by 2016 (2012 baseline: 0)



Assumptions

Growers accept the higher price needed

to purchase quality

seed

Farmers have resources to part finance the land leveling

Risk

Drying and storage facilities are not

operated at full

capacity

5. WICI piloted

100,000 ha of rice producing areas covered by

WICI by 2017 (50% of the policy holders

are women, of which 10% are from

households headed by women)

(2012 baseline: 0)

15 local input suppliers, 3 local financial institutions, and 3 local marketing agencies participating in the pilot tests in three provinces by 2015 (2012 baseline: 0)

Feasibility study

report

Design of WICI and evaluation report

Quarterly reports by the insurance firm

Assumption

Feasibility study recommends design and piloting

Risk

Piloting WICI shows no feasibility in

Cambodia

Annex 1


19


Design Summary


Data Sources and

Reporting

Mechanisms


6. Efficient program management and implementation

Rice-SDP performance monitoring system,

disaggregated by sex, designed and operational within 6 months of effectiveness. Baseline surveys completed within 12 months of loans and grants effectiveness and end-line impact evaluation undertaken 6 months

before Rice-SDP completion date

For PMO and PIOs, 30% of administrative

and technical positions are filled by women by

Q3 2013; progress of gender actions included as part of Rice-SDP progress reports. For PMO and PIOs, 30% of administrative

and technical positions are filled by women by

Q3 2013; progress of gender actions included as part of Rice-SDP progress reports

Progress reports produced quarterly by the executing agency. Base-line and end-line impact evaluation by the executing agency


Assumption

Qualified staff are appointed for

Implementation

Risks

Provincial capacity is insufficient

The availability of qualified staff is limited

ADB - Asian Development Bank; ADF -Asian Development Fund; AEA - Agro-Ecosystems Analysis; CLUP - Commune Land-use Plan; FWUC - Farmer Water User Community; GAFSP - Global Agriculture and Food Security Program; MAFF - Ministry of Agriculture Forestry and Fisheries; MLMUPC - Ministry of Land Management Urban Planning and Construction; NIO - National Implementation Office; PIC - Program Implementation Consultant; PIO - Provincial Implementation Office; PMO - Program Management Office; Rice-SDP - Climate Resilient Rice Commercialization Sector Development Program; SCF - Strategic Climate Fund; WICI - weather-indexed crop insurance.

a A separate survey on baseline and target indicator will be conducted during the second year of the program to validate information of informal paddy

trade across the border with Thailand and Viet Nam.

Annex 1


20


Activities with Milestones Inputs

1. Improvement of legal and regulatory environment

1.1. Establish policy working groups by Q4 2013

1.2. Produce compliance report for second tranche by Q2 2016 2. Improvement of agricultural land-use zoning

2.1. Undertake commune AEAs by Q4 2017

2.2. Incorporate the AEAs into CLUPs by Q4 2017

2.3. Develop three provincial rice ecosystem maps by Q4 2017 3. Development of rice value chain infrastructure

3.1. Recruit national consultants for subproject feasibility studies by Q3 2014

3.2. Rehabilitate identified irrigation schemes by Q4 2018

3.3. Establish paddy drying and storage facilities by Q4 2018

3.4. Establish seed drying and storage facilities by Q4 2018 3.5. Implement subproject-associated initiatives by Q4 2018 4. Enhancement of rice value chain support services

4.1. Increase availability of quality rice seed

4.1.1. Develop a national seed certification scheme by Q4 2015

4.1.2. Produce foundation and certified seed by Q4 2017

4.2. Expand and develop technical extension services

4.2.1. Revise six “technology information procedures” on rice production by Q4 2015

4.2.2. Develop extension services material by Q4 2015

4.3. Enhance business management capacities

4.3.1. Study the adoption of bulk handling by Q2 2015

4.3.2. Provide technical assistance to rice mill by Q4 2018 4.3.3. Organize study tours and training for millers by Q4 2016

4.4. Improve access to and reduce cost of finance

4.4.1. Develop capacities of financial institutions by Q4 2016 5. Feasibility study, design and pilot testing of WICI

5.1. Engage consultants for feasibility study by Q1 2014

5.2. Determine feasibility of WICI in Cambodia by Q2 2014

5.3. Upgrade automatic weather stations by Q4 2014

5.4. Pilot WICI in selected areas by Q2 2015 6. Project management and implementation

6.1. Appoint and mobilize PICs by Q1 2014

6.2. Design and operate Rice-SDP’s gender disaggregated program performance monitoring system by Q2 2014

1. ADF Policy Loan: $24.00 million

2. ADF Loan: $31.00 million

Item Amount

Civil Works 17.60 Associated Initiatives 0.53

Vehicles & Equipment 0.65

Consulting Services 3.75

Implementation Support 7.54

Interest Charges 0.93 3. GAFSP Grant: $14.60 million

Item Amount Civil Works 0.62 Equipment 7.17

Contract Services 3.28

Office Equipment 0.10 Consulting Services 1.11

Training and Studies 1.81

Implementation Support 0.51 4. ADB SCF Loan: $5.00 million

Item Amount

Civil Works 3.31

Associated Initiatives 1.10

Contract Services 0.59 5. ADB SCF Grant: $4.50 million

Item Amount

Civil Works 0.42

Crop Insurance 2.00

Consulting Services 2.08

6. Government: $8.33 million Item Amount

Staff Costs 1.46

Resettlement Costs 0.43

Land Purchase 0.88

Taxes and Duties 5.54

SCF Loan Service Charge 0.02

Annex 1


21

MONITORING FRAMEWORK FOR GAFSP

GAFSP Results Area

Indicators in Cambodia’s GAFSP Rice-SDP Indicators

(with reference to the GAFSP M&E Plan)

1. Raising Agricultural Productivity

An increasingly productive and diversified agricultural system that is capable of assuring food security.

40,000 beneficiary farmers (20,000 are women farmers) and 400

farmer organizations are benefited by extension, technology transfer,

improved production trainings and sets of low-input and improved

technical packages.

- Six technical information procedures for lowland rice production

upgraded by 2017.

- 20,000 days of training to raise agricultural productivity provided to

extension agents, agro-dealers, farmers, community members etc.

(disaggregated by gender).

- 30 subproject contracts providing extension services executed between

Rice-SDP and participating provincial department of agriculture (PDAs)

by 2018, covering an estimated 30,000 households.

- An increment of 30,000 hectares of paddy land on which modern

production technology has been adopted by 2018.

- At least 30,000 households will adopt water saving technology by land

levelling promoted by Rice-SDP by 2018.

Pro-poor and pro-women

community groups, particularly of food-insecure households, who are empowered to actively develop their potentials, opportunities and minimize risks and represent their own interests in political and administrative environment.

Community projects are implemented using participatory

planning techniques.

- Paddy area with improved/rehabilitated irrigation and drainage services

will be 23,000 ha by 2018

- Number of water users provided with new/improved/rehabilitated

irrigation and drainage services (disaggregated by gender) estimated to

be 23,000 by 2018

- Number of operational water user associations estimated to be 23 by

2018 within the subproject areas.

Annex 1


22


GAFSP Results Area



Farmers have secure tenure to their land.

Land titles for rural land use are provided to project beneficiaries, including indigenous communities.

- 90 communes will have completed commune land use plans (CLUPs)

based on the agro- ecosystem analyses performed in these communes

by 2017.b/

2. Linking Farmers to Markets

Reduce transfer and transaction costs.

Traditional value chain partnerships strengthened for four commodities in 10 provinces over 3 years.

- 30,000 farming households become members of production association

and water user community members (30% are women) by 2017

Other value addition. Distribution of post-harvest storage systems to project villages by end

of year 4.

- Volume of paddy under improved post-harvest management increased

by 30,000 tons (in terms of storage capacity) by 2018

- Paddy drying capacity increased by 2,000 tons per day by 2018 in

participating provinces

- Six public-private seed processing facilities (grading, dying and storage)

installed by 2018

- 50,000 client days of training on better post-harvest procedures

provided (50% of participants being women)

3. Reducing Risk and Vulnerability

Community self-reliance for food security and nutrition and health.

40,000 households (20,000 women-headed households) are trained in home gardening techniques by year 4.

- A weather-indexed crop insurance scheme introduced to improve

weather-related risks by 2017 (co-financed by PPCR)

- 100,000 ha of rice producing areas covered by a WICI scheme

directed towards vulnerable groups (co-financed by PPCR)

4. Improved Non-farm rural livelihoods

Annex 1


23


GAFSP Results Area



Promoting non-farm rural

entrepreneurship. 4,000 self-help groups organized and functioning by end year 4. Basic administration training conducted within 6-months of self- help group formation. 1,000 micro-businesses (women headed) & 1,000 small-scale agro-processing developed and functioning at basic level by year 3 Community micro-projects are implemented by year 4. Set of vocational training packages are developed by end year 2. 4,000 (2,000 are women) are trained in new and/or additional vocational skills by year 4.

- Number of people trained:

- 10 rice millers trained through advisory services by 2016;

- 100,000 FWUC members trained in group management and irrigation

scheme operations and maintenance by 2018; 100 staff of financial

institutions in participating provinces receive training on the needs of

farmers wishing to diversify their livelihood sources by

- 2018: 1,000 farmers trained in requirements of financial institutions to

assist in gaining access to credit by 2018 (with 30% women participants)

Component 5: Technical assistance, institution building, capacity development

Policies, Plans and regulatory

framework of MAFF are fully established, maintained and coordinated.

MAFF have implemented and enforced

policies, plans, regulations for which they are responsible under this program.

- Five legal and regulatory frameworks will be in place by 2016 to promote

rice commercialization

- 300 participants in M&E workshops, training events, seminars,

conferences etc. (disaggregated by gender and affiliation)

Gender is mainstreamed in MAFF.

The gender unit in MAFF is functioning and fully funded to continue implementation of gender mainstreaming policies.

- Gender targets are mainstreamed into each of the component

outputs under Rice-SDP

Policies and information on aspects of food security related to agriculture and water management.

Food security concepts are integrated

into development programs and policy.

- Food security aspects of the Rice Policy are fully accommodated

under Rice-SDP by 2018

b/

Rice-SDP is not involved in land titling due to its political complexity. However, CLUPs established with assistance from Rice-SDP will facilitate the Government’s work in land titling.

Annex 1


24

MONITORING FRAMEWORK FOR SCF PPCR

Results Indicators (consistent with PPCR Core Indicators)

Increased resilience of households, communities, businesses, sectors and society to climate change and climate variability through investments in irrigation subprojects being rehabilitated and climate proofed.

Numbers of people supported by the PPCR-supported Project to cope with effects of climate change as demonstrated by:

- 50,000 farmers will benefit from climate resilient irrigation structures by 2018

(2012 baseline: 0)

- Enhanced gender mainstreaming - 30% unskilled laborers employed in the rehabilitation are women by

o 2018; 30% of construction sub-committee members are women; 2 farmer water user committees

o established in each irrigation scheme, with women occupying 30% of the management positions.

(2012 baseline: 0)

- At least five local engineering firms will practice commercial design and construction of irrigation system that incorporated climate resilience options by 2019 (2012 baseline: 0).

- 100,000 ha of rice producing areas covered by WICI within the three participating provinces by 2017 (50% of the policy-holders is women, of which 10% is from female headed household) (2012 baseline: 0)

- 15 local input suppliers, 3 local financial institutions, and 3 local marketing agencies participating into the pilot

tests in three provinces (2012 baseline: 0).

- Four seed drying and storage facilities constructed by 2017 with a combined storage capacity of 8,000 tons

(30% unskilled laborers and 50% administrative staff are women)

- Capacity for drying paddy in target provinces extended by 2,000 tons per day by 2018

- Capacity for paddy storage in target provinces extended by 40,000 tons by 2018.

Annex 1


25



Climate responsive investment approaches implemented through land leveling as adaptation demonstrations being conducted in each irrigation subproject.

- Quality of and extent to which climate responsive instruments/investment models are developed and tested, as

reflected by

- 30% of farmers (disaggregated by sex) have leveled their paddy fields in target provinces by 2018 (2012

baseline: 0)

- At least nine private contractors in three project provinces engaged and trained to offer land leveling services by

2016 (2012 baseline: 0).

- Twenty private contractors, including 5 led by female entrepreneurs, replicated offering land leveling services at

their own initiatives in three participating provinces by 2018 (2012 baseline: 0).

- Strengthened capacity of provincial departments in Project provinces in improving efficiency of irrigation water

use through land leveling - baseline: 0% paddy land area leveled, target: 15% paddy land area leveled by 2018

Strengthened climate responsive

development planning

Degree of integration of climate change in national, including sector planning, as reflected by:

- Strengthened capacity of provincial departments in Project provinces in improving efficiency of irrigation

water use through land leveling - baseline: 0% paddy land area leveled, target: 15% paddy land area

leveled by 2018.

- A joint working group including female representatives established by the government to develop

agricultural land-use zoning as a climate adaptation strategy; developed and issued a framework providing

procedures for establishing agricultural land-use zones, incorporating measures and targets for involving

women in planning and decision making.

Annex 1


26



Strengthened adaptive capacity through

mill management training initiatives that

integrate climate change concerns.

- Extent to which vulnerable households, communities’ businesses and public sector services use improved

PPCR supported tools, instruments, strategies, activities to respond to CV&CC, as reflected by:

- 30% of rice mills in three project provinces equipped with knowledge to address change in paddy supply

patterns induced by climate change by 2018 (2012 baseline: 0).

- Post-harvest losses reduced from 15% of crop yield in 2012 to 10% of crop yield by 2017.

- Enhanced quality and participation of the private sector in providing advisory services to rice millers to address

climate change impacts, as reflected by: 10 local firms participating in providing advisory services to rice millers

by 2018. (2012 baseline: 0)

- Increased leverage factor of PPCR funding, reflected by an estimated $5 million from private sector mills by

2018 to address change in paddy supply patterns induced by climate change (2012 baseline: 0).

Strengthened adaptive capacity through developing and piloting weather-indexed crop insurance scheme.

Quality of and extent to which climate responsive instruments/ investment models are developed and tested, reflected by:

- 100,000 ha of paddy areas in three Project provinces covered by WICI by 2017 (2012 baseline: 0).

- 50% of insured rice farmers (i.e., policy-holders) is women.

- Enhanced capacities and participation of the private sector in paddy crop risk mitigation, reflected by: 15 local

input suppliers, three local financial institutions, and three local marketing agencies participating in crop

insurance services by 2017 (2012 baseline: 0).

Annex 1


27



Improved institutional framework in place through the adoption of sector development program approach encompassing policy and institutional reform and appropriately coordinated climate resilient investments.

Evidence of strengthened government capacity and coordination mechanisms that demonstrate integration of climate vulnerability in national, including sector planning to mainstream climate resilience, reflected by

- Three important legal documents (a law, a policy and an action program) will be in place by 2016 to address

climate change risks and/or adjusted to incorporate climate change risks, including (i) Law on Management and

Use of Agricultural Land (ii) Framework providing procedures for establishing agricultural land-use zones; and

(iii) National action program to combat land degradation in Cambodia.

- Under the guidance of the Committee for Economic and Financial Policies (CEFP), a cross-sectoral mechanism

taking into account of climate variability and climate change will be established by 2016 as part of the review

and adjustment of the Policy on the Promotion of Paddy Production and Rice Export.

Annex 2


28

Rice SDP - Climate Resilient Rice Commecialisation Sector Development Program

ADB Loans 3006 & 3007 - CAM; GAFSP Grant 0349; SCF Loan 8271 & Grant 0350

Statement of Expenditure

Cumulative since Effectiveness Date

Reporting for the Quarter Ending: 31 March 2016

PMR 1: Project Monitoring Report: Uses of Funds By Category for the Quarter Ending 31st March 2016

(Note: Q = Quarter, YTD = Year to date, CTD = Cummulative to date) (Quaterly Report. In USD)

(1) (2) (3) (4) (5) (6) (7)=(2)-(3)-(5) (8)=(5)/(2) (9)=(6)/(1)

I- INVESTMENT COSTS

MEF/PMO 8,821,200 2,680,410 98,593.00 98,593.00 917,070.83 1,763,339.17 4% 10%

MAFF/NIO 22,521,100 1,528,904 - - 92,772.50 1,436,131.50 0% 0%

MOWRAM/NIO 16,701,400 885,000 - - 91,112.82 793,887.18 0% 1%

MLMUPC/NIO 1,808,600 252,484 43,000.00 43,000.00 43,000.00 209,483.74 17% 2%

BTB/PIO 690,100 45,930 - - 41,900.00 4,030.00 0% 6%

KPT/NIO 690,100 45,930 43,000.00 43,000.00 43,000.00 2,930.00 94% 6%

PVG/NIO 690,100 45,930 27,235.00 27,235.00 27,235.00 18,695.00 59% 4%

Sub Total (I): Investment Costs 51,922,600 5,484,588 0.0 211,828.00 211,828.00 1,256,091.15 4,228,496.59 4% 2%

II. IMPLEMENTATION AND SUPERVISION COSTS

MEF/PMO 2,603,100 268,220 97,951.56 97,951.56 244,803.87 23,416.13 37% 9%

MAFF/NIO 1,230,800 189,990 19,690.72 19,690.72 85,664.12 104,325.88 10% 7%

MOWRAM/NIO 1,255,800 98,040 16,654.95 16,654.95 75,415.25 22,624.75 17% 6%

MLMUPC/NIO 1,108,900 177,840 11,547.00 11,547.00 50,106.88 127,733.12 6% 5%

BTB/PIO 1,454,700 145,940 32,647.87 32,647.87 34,892.63 111,047.37 22% 2%

KPT/NIO 1,454,700 149,360 11,008.50 11,008.50 40,024.61 109,335.39 7% 3%

PVG/NIO 1,454,700 147,080 7,719.97 7,719.97 33,130.91 113,949.09 5% 2%

Sub Total (ii): Implementation and Supervision Costs 10,562,700 1,176,470 0.0 197,220.57 197,220.57 564,038.27 612,431.73 17% 5%

GRAND TOTAL (I)+(II) 62,485,300 6,661,058 0.0 409,048.57 409,048.57 1,820,129.42 4,840,928.32 6% 8%

Category

Disbursement

Rate % Overall

Actual Expenditure

Disbursement

Rate % 2016Overall Budget 2016 Budget

Unliquidated

ObligationsQ1 2016 YTD Q1 2016 CTD Q1 2016

2016 Budget

Balance

Annex 2


29

Rice SDP - Climate Resilient Rice Commecialisation Sector Development Program

ADB Loans 3006 & 3007 - CAM; GAFSP Grant 0349; SCF Loan 8271 & Grant 0350

Disbursement Accounts by Financiers (USD)

Cumulative since Effectiveness Date

Reporting for the Quarter Ending: 31 March 2016

EAs/IAs Total Allocation (1)Unliquidated

Obligations (2)

Cumulative

Expenditure (3)

Budget Balance

(4) = (1)-(2)-(3)

I. LOAN 3006 - CAM (SF)

MEF/PMO 24,000,000

MAFF/NIO

Sub-Total 24,000,000 0 - 0

II. LOAN 3007 - CAM (SF)

MEF/PMO 6,183,000 678,915.03 5,504,085

MAFF/NIO 7,850,400 55,402.91 7,794,997

MOWRAM/NIO 11,476,300 79,211.51 11,397,088

MLMUPC/NIO 840,600 29,090.30 811,510

BTB/PIO 1,241,100 30,585.36 1,210,515

KPT/PIO 1,241,100 33,277.65 1,207,822

PVG/PIO 1,241,100 33,904.81 1,207,195

Sub-Total 30,073,600 0 940,387.57 25,507,680.25

III. GAFSP GRANT

MEF/PMO 1,230,700 130,720.87 1,099,979

MAFF/NIO 10,929,400 32,586.75 10,896,813

MOWRAM/NIO 782,800 15,206.76 767,593

MLMUPC/NIO 1,609,900 1,609,900

BTB/PIO 16,200 16,200

KPT/PIO 16,200 16,200

PVG/PIO 16,200 16,200

Sub-Total 14,601,400 0 178,514.38 14,374,285.62

IV. SCF LOAN

MEF/PMO -

MAFF/NIO 588,500 588,500

MOWRAM/NIO 3,306,600 3,306,600

BTB/PIO 367,500 367,500

KPT/PIO 367,500 367,500

PVG/PIO 367,500 367,500

Sub-Total 4,997,600 0 - 4,997,600.00

V. SCF GRANT

MEF/PMO 2,080,000 208,570.40 1,871,430

MAFF/NIO 2,000,000 2,000,000

MOWRAM/NIO 421,200 421,200

Sub-Total 4,501,200 - 208,570.40 4,292,630

VI. RGC

MEF/PMO 1,928,800 143,668.40 1,785,132

MAFF/NIO 2,385,500 90,446.96 2,295,053

MOWRAM/NIO 1,970,200 72,109.80 1,898,090

MLMUPC/NIO 467,000 64,016.58 402,983

BTB/PIO 520,000 46,207.27 473,793

KPT/PIO 520,000 49,746.96 470,253

PVG/PIO 520,000 26,461.10 493,539

Sub-Total 8,311,500 - 492,657.07 7,818,843

GRAND TOTAL 86,485,300 - 1,820,129.42 56,991,038

Annex 3

CLIMATE RESILIENT RICE COMMERCIALISATION SECTOR DEFVELOPMENT PROGRAM Quarterly Progress Report Q1 2016

30

GENDER ACTION PLAN

The program is categorized as effective gender mainstreaming. It will enhance access of women farmers to decision making, resources, and services. Gender issues were incorporated into appropriate tranche conditions as stated in the policy matrix and gender indicators were included in all program outputs.

Gender Action Plan (GAP Activities, Indicators and Targets,

Timeframe and Responsibility)

Progress

Issues and Challenges

Output 1. A Conducive Legal and Regulatory Environment established to facilitate Climate Resilient Rice Commercialization

Gender issues will be subsequently main-streamed into the Agricultural Land Law and the Law on Management and Use of Agricultural Land Responsibility: MAF, PDS, GSS Time: dependent on progress in Output 1: Policy

Gender issues are reflected in Agricultural Land Policy and the Law on Management and Use of Agricultural Land; however, qualitative and quantitative sex-disaggregation of the beneficiaries are not yet reflected in reports.

The Agricultural Land Policy and the Law on Management and Use of Agricultural Land are of particular importance because they are conditional to the release of the second tranche of funds by ADB.

Considering MAFF is a pioneer in gender mainstreaming, it was a surprise that the issue has completely left out gender issues in Land Policy White Paper, Agricultural Land Policy and Law on Management and Use of Agricultural Land.

Ensure gender analyses included in development of all policies Responsibility: PMO, NIOs MAFF, and PDS, GSS Time: by Q1 2016

The ADB has very clear guidelines and policies on consultations and in general expects as full and as meaningful consultation as is practically possible with all PIOs but with more intensive consultations with primary stakeholders, which include groups of people that are targeted to benefit from projects it finances.

Review draft policy documents stated in the second tranche of the policy matrix before the Government’s submission to ADB to ensure inclusion of gender mainstreaming issues. (Relevant policy documents reviewed and include gender issues by Yr 3)

Ensure inclusion of gender expertise in working groups for policy development

Responsibility: PMO, NIOs, LUP/GIS Time: by Q3 2015

The terms of reference for the Gender Specialists have been carefully reviewed with a few queries that need to be clarified by ADB.

Women staff comprise 17.7 % of total 96 NOI, PMO, PICs staffs which is below the 30% target as per project GAP.

The ambitious percentages as indicated in the GAP for women participation vary from 30 % to 50% e. Within PIC team and PMO, NIOs and PIOs, it was interpreted with caution because from experience, conditional clauses especially in construction/civil works may hamper progress.

All laws and legal documents will be adequately disseminated among male and female groups. Responsibility: PMO, NIOs, MAFF, MLMUPC, MOWRAM, LUP/GIS Time: dependent on progress in Policy issues

Not yet accomplished

Content of documented material for dissemination to be determined

Annex 3


31



Progress


Output 2. Agricultural Land Use Zoning Improved

The guidelines for Establishing Agricultural land-use Zones will incorporate measures for involving women in planning and decision making.

Responsibility: NIO, MAFF and LUP/GIS Time: by Q1 2016

Landownership as indicator of wealth is acceptable but should include female-headed households as a sub-indicator.

A balance will have to be accepted so that technical activities will not override gender issues and vice versa. This matter has been brought up with the Gender Consultant at ADB Cambodia Resident Mission.

Ensure participation of women and women heads of households in collection of data and information relating to land-use zoning through use of women focal group discussion meetings. 90 groups of farmers consulted (with at least 40% female representation) during the

preparation of commune land use plans by 2018 Responsibility: PDA, PDLMUPC, LUP/GIS Time: by 2018


Time frame has to be fine-tuned and fitted in with the other activities

The Rice-SDP monitoring system will incorporate sex disaggregated data. The GAP will be implemented within each and every program activity where relevant.

The GAP is prepared in order to highlight and remind the implementing agencies of their responsibilities.

Output 3. Climate Resilient Rice Value Chain Infrastructure Developed

Women will comprise 50% of the community

membership of construction sub-committees Responsibility: PDWRAM, RIE-H, CMS Time: concurrent with rehabilitation activities


In the planned updating of the project GAP next year at Q3, 2016, the targets will be re-validated through series of participatory data gatherings with project beneficiaries and other stakeholders.

Separate women farmers’ meetings to discuss their needs related to location, alignment and access to irrigation infrastructure Responsibility: PDWRAM, PIOs and CMS Time: concurrent with rehabilitation activities


Pending on timeframe of implementation of irrigation-related sub-projects

Final designs on infrastructure investments will be signed by construction sub-committees and commune councils. Further changes to the design must again be approved by the construction sub-committee


The process of approval is to be determined. Sub-projects implementation to commence after feasibility studies (for some) and detailed design (for all)

Annex 3


32



Progress


Responsibility: PDWRAM RIE-H, CMS Time: concurrent with rehabilitation activities

In labor-based civil works, 40% of unskilled laborers will be women. Women will receive

equal pay for equal work. Child labor will not be employed. These conditions are to be included in all construction contracts Responsibility: PIOs, PDWRAM, PDA and

Procurement Specialists Time: during sub-project implementation


Construction contracts of each sub-project have differing conditions, including targets and will be addressed as sub-projects become implemented

Employment opportunities targeted at men and women will be communicated to communities Responsibility: PIOs, PDA, PDWRAM, RIE-H, CMS Time: during sub-project implementation


Targeted for implementation as project implementation progresses.

Target of at least 30% employment of women as unskilled laborers in rice drying and

warehousing facilities Responsibility: PIOs, PDA and Procurement Specialists Time: at pre-construction phase

Construction and other civil works will be started after recruitment of consulting engineers; some preliminary design activities are currently implemented

Evidenced from employment list of facility after it is in operation

The nature of construction works involving women will be determined during pre-construction orientation with contractors

Target 50% women’s employment as administrative staff in rice drying and storage

facilities Responsibility: PIOs, PDA, RIE-H, Procurement Specialists Time: post facility establishment

A balance will have to be accepted so that technical activities will not override gender issues and vice versa.

Contract stipulates special conditions. Employment list of facility after it is in operation

Target 50% women employed in seed production facilities as unskilled and semi-

skilled laborers, e.g. seed and seed bed preparation, weeding and seed grading and sorting, packaging etc.

Discussions have been held with Some Seed Growers’ Groups in Farmers’ Cooperatives in target areas. This process will be expanded.

Target in business contracts. List of employment in each and every production facility, after they are in operation

Annex 3


33



Progress


Responsibility: PIOs, PDA, Facility Operators, Business Dev. & Comm. Specialists, PPP Specialist Time: post facility establishment

Occupational safety measures and training provided to all workers. Responsibility: PDA, Facility Operators and Business Dev. & Comm. Specialists, PPP Specialist Time: pre-construction

To be implemented during pre-construction phase Targeted for implementation as project

implementation progresses.

Farmer Water User Communities (FWUCs) will accept membership registrations from husband and wife – 50% target for each. Responsibility: PDWRAM, PIO and CMS Time: throughout sub-project development

Community Mobilization Specialist (CMS) has been increasing awareness and encouraging commune authority preparation for FWUC to increase the participation of women.

Formal documentation, public announcements and membership lists of each FWUC are to be developed

Target at least 30% women in management positions in FWUCs. Women will be provided

training on leadership and management and will be remunerated for their roles. Responsibility: PDWRAM, PIO and CMS Time: throughout sub-project development

Community mobilization specialist (CMS) has been providing awareness and encouraging commune authority preparation for FWUC to increase the participation of women.

FWUC in Battambang (Prey Sangha) were established by ECOSORN project and recognized by PDWRAM, but they require strengthening

Some FWUCs require strengthening

List of attendees in training to be assessed during implementation of each sub-project

FWUC advisory committees established to monitor FWUC activities will comprise 50% women. Responsibility: PDWRAM, PIO and CMS Time: throughout sub-project implementation


Facilitate gender mainstreaming training at community level with all project financed activities.

PIOs undertake training in all sub-project activities

Affected members dissatisfied with FWUC resolutions of disputes have the right to appeal to the FWUC advisory committee. Responsibility: PDWRAM, PIO and CMS Time: during facility operation


FWUC advisory committee has a procedure for disputes and appeals after FWUC formation, pending on each sub-project

Affected women/households in FWUC will be identified and the information will be transferred to MAFF and PDA in the 3 provinces to be

Annex 3


34



Progress


included and prioritized in work-plans and training activities.

Water provision where feasible, will include both irrigation and non-irrigation water needs of households.

Responsibility: FWUC, PDWRAM and CMS Time: during sub-project implementation


Villagers consulted in each and every sub-project on irrigation; pending on timeframe of sub-project implementation

Output 4. Rice Value Chain Support Services Enhanced to improve Quality of Cambodian Rice

Target at least 30% women in management positions in farmer cooperatives Responsibility: PDA, PIO, CMS Time: during sub-project implementation

Not yet accomplished. Preliminary discussions held with farmer cooperatives in Battambang.

Women in farmer cooperatives are the primary recipients of the project’s livelihood skills training to be conducted tentatively by 2016

Women will be provided training on leadership and management of cooperatives Responsibility: PDA, PIO and CMS Time: during sub-project operation

The GSS’s TOR and PAM’s GAP guide gender mainstreaming targets in the 30 sub-projects.

The GAP has been discussed with the other PICs ensuring that it is understood and that they include the stipulated targets in their activities. Review of policies and development of M&E have resulted in full gender inclusion.

In the planned updating of the project GAP in early 2016, the targets will be re-validated through a series of participatory data gathering missions with project beneficiaries and other stakeholders.

Farmer cooperatives will target membership of 50% men and 50% women. Responsibility: PDA, PIO and CMS Time: during sub-project implementation

Not yet accomplished. Preliminary discussions held at target sites in Battambang.

In the planned updating of the project GAP in early 2016. The formation and structure of cooperatives depends on the specifications of each sub-project.

Women will comprise 50% of participants in all project supported training in extension and

water management. Responsibility: PDA, PIO and Extension

Specialist Time: 2015-2017


Undertake gender training at central and provincial levels Training to be completed by Yr 3 (Many government staff have been trained from different projects in the past 10 years. Training if required will be repetitive.)

Annex 3


35



Progress


Agricultural extension training materials and revision of technology implementation procedures will include specific training needs identified by women farmers on enhancing productivity, diversification of produce, animal husbandry and safety procedures and new income generating activities. Responsibility: PDA, PIO and Extension Specialist Time: throughout


PIOs, the main provincial and district staff and contracted service providers will undertake training on relevant sub-project activities involving diversification to establish community-based sub-committees’ roles and responsibilities.

50% of farmers in pilot on farm trials and

demonstrations will be women. Responsibility: PDA, PIO and Extension

Specialist Time: during sub-project execution

Not yet accomplished. Discussions at sites in Battambang show awareness and practice of this to varying extents.

Selection procedure stipulates women participation at commune targets.

Extension training activities will ensure location and timing convenient for women. Responsibility: PDA, PIO and Extension Specialist Time: throughout


Extension training schedule will be implemented at every sub-project from Year 2016

Training material will be designed to meet the needs of female and male farmers including illiterate farmers Responsibility: PIO, PDA and Extension Specialist Time: throughout

Not yet accomplished. Build upon work done by JICA and IRRI

Select material by considering women’s needs in the community.

Some 25% of agricultural extension workers

trained shall be women. Not yet accomplished

Facilitate the mainstreaming of safety issues into MAFF/PDA animal husbandry training

Annex 3


36



Progress


Responsibility: PDA, PDWRAM and Extension Specialist Time: 2016 through sub-project operation

List of extension workers in each province provided for action in 2016

Mass media extension material to be gender sensitive. Responsibility: PIOs, PDAs and Extension Specialist Time: throughout


PIO will monitor the mass media extension material.

Facilitate linkages with Ministry of Health/Communicable Disease Project Phase 2, the Zoonotic Disease Unit and MAFF/GDA to provide occupational health and safety training to especially women poultry raisers

Address lack of access to credit by women and poor households (similar to TOR item xii). Responsibility: PDA, PIO, BAFS and CMS Time: during sub-project implementation


Train provincial and district staff and contracted service providers in establishing and strengthening women’s savings and loan groups

Training depends on the formation of co-operative in each sub-project (use cross- provincial expertise among the 3 provinces. Some PDAs have experience in facilitating savings and loan groups)

Output 5. Weather-Indexed Crop Insurance (WICI) piloted

Some 50% of farmers under the pilot insurance scheme will be women and 10% of these to be female headed households. Responsibility: PMO, NIOs, PIOs, PIC, WICI

Consultants Time: Q4 2018 if feasible

Not yet accomplished Activity depends on the results of the WICI scheme pilot program

Output 6. Efficient Program Management and Implementation

Support PMO and PIOs. Responsibility: PMO, ISS-PIOs, PIC-GSSs Time: throughout

An orientation on GAP has been undertaken for the PMO and NIO MAFF and 3 PIOs.

Continuing discussions with PMO regularly

Gender balance may be achieved after the series of gender sensitization workshops with NIO, PMO and PICs.

The PIO has members who were not at all involved in the PPTA so the awareness and knowledge of Rice-SDP is weak. Wonder,

Annex 3


37



Progress


however, why the Program set such high percentages especially in women participation as unskilled workers in construction / rehabilitation activities knowing that out-migration from villages has almost depleted the able-bodied population, both men and women. PPTA did not mention this phenomenon.

Ensure sex-disaggregated performance monitoring system is established and operational. Responsibility: PMO-M&E, GSSs, MIS/Database Specialist Time: pre-construction phase as sub-project

implementation progresses

The GSSs have contributed to the drafting of the TOR for FS of sub-projects. The GAP in English and Khmer versions has been widely distributed.

There are hurdles to be overcome including over-saturation of gender training, ambitious targets, imbedded preference for separate gender activities and perception that gender inclusion interferes in technical activities.

All PMO and PIO staff shall be provided with gender training and roles and responsibilities involved in implementing the GAP. Responsibility: PMO, PIOs and GSSs Time: Q4 2014 and continuous

Training materials were produced in Khmer language by national gender consultant and distributed to participants during the training.

Total participants attending the training was 85 of which 15 (18%) were women.

Some challenges were raised during the training:

- Lack of budget for gender activities: training, meeting for villagers ,etc

- Number of women participating in the project is high but less women at decision making level

Note: - Fewer women attended gender training in

line NIO, PMO and PICs.

About 30% of technical and administrative positions to be filled by women (originally by Q2, 2013). Responsibility: PMO and GSSs Time: Q4 2015 – Q4 2017

To be implemented

Facilitate gender mainstreaming training at community level within all project-financed activities by preparation of material by Yr 1 and Training during Yrs 1, 2 and 3 (use material from other relevant projects)

Ensure participatory evaluations are conducted with male and female farmer groups at mid-term and end of the project reviews. Responsibility: PMO and ADB Time: periodically throughout

To be implemented

Review/monitor program progress and monitoring reports including baseline surveys and end-line impact evaluation reports to ensure data is gender disaggregated (Review progress reports quarterly).

Appendix 4

CLIMATE RESILIENT RICE COMMERCIALISATION SECTOR DSEVELOPMENT PROGRAM Quarterly Progress Report Q1 2016

38

Progress Report for Program Implementation Consultants (Q1 2016)

1. David Moles (TL and Business Development and Commercialization Specialist)

Duration: 15/2 mobilized: intermittent

Tasks: arrange orientation/familiarization activities with project-related agencies; develop

and coordinate work plans with international/national specialists (inputs and deliverables);

with PMO, field visits to project

Introduced monthly work planning and reporting for all PIC team members.

Attended consultation on land levelling in KPT and assisted in preparation of concept paper

for MAFF/NIO.

Commenced consolidation of AWPB 2016 documents and budgets.

Outputs: Concept paper on land levelling and preliminary drafts of the budget for AWPB for

2016.

2. Leng Sothat (Deputy Team leader- and Seed Certification Specialist)

Duration: 1/1 - 31/3 full time

Tasks: Assisted in the facilitation of the ADB Review Mission in February.

Provided guidance and orientation to the incoming TL.

Liaised with project-related agencies; develop and coordinate work plans with international/

national specialists (inputs and deliverables); with PMO, field visits to target provinces.

Outputs: Network of related agencies initiated, field visit reports, workshop Program,

drafting work plan AWPB 2016

3. Men Sarom (Policy Development Specialist)


Tasks: review/familiarization with current ADB policies and relate to compliance with

components of Rice-SDP and RGC; liaise with CEFP

Outputs: Status report on policy compliance developed; arrangements.

4. Francesco Goletti (Policy Development Specialist)

Duration: intermittent

Tasks: review/familiarization with current ADB policies and relate to compliance with

components of Rice-SDP and RGC; liaise with CEFP

Outputs: Status report on policy compliance developed; arrangements.

5. Chhun Bunlong (Land Use Planning/GIS Specialist)

Duration: Intermittent

Tasks: Worked with MLMUPC to develop the ToR for the CLUP process.

Assisted MAFF with AEA mapping in key rice agro-ecosystems/edaphic zones.

Outputs: First draft CLUP ToR and AEA mapping with strategy to rationalize systems with

MAFF.

6. Mr. Long Sona, Environment/Climate Change Specialist


Tasks/Outputs: Prepare training materials and design awareness raising trainings for NIOs

and PIOs on environmental assessments and climate change impact.

7. Dr. Michael Turner, Seed Certification Specialists


Tasks/Outputs: Completed review of Seed Policy documents.

Assisted with identification of the seed laboratory equipment.

Appendix 4

CLIMATE RESILIENT RICE COMMERCIALISATION SECTOR DSEVELOPMENT PROGRAM Quarterly Progress Report Q1 2016

39

Advised on the content of the rice seed action plan.

8. Mrs. Pong Limsan, MIS/Database Specialist


Tasks/Outputs: Continued with the development of the RiceSDP website and development

of the FSMIS database.

9. Mr. Sok Chea, Implementation Support Specialist, Prey Veng


Task/outputs Assisted the PIO to develop their SOPs and the establishment of the office

facilities and recruitment of staff.

10. Mr. Khiev Sam Oeun, Implémentation Support Specialist, Kampong Thon

11. Task/outputs Assisted the PIO to develop their SOPs and the establishment of the office

facilities and recruitment of staff.

12. Mr. Yingyod Yingyuenyong, Post-Harvest Specialist


Tasks/outputs: Revised the Terms of Reference for FS, DD and CS consultants and conducted

field visits to selected sub-project sites.

Reviewing sub-project.

13. Mr. Oeurn Sophat, Post-Harvest Specialist


Tasks/Outputs: Revised the Terms of Reference for FS, DD and CS consultants and conducted

field visits to selected sub-project sites.

Reviewing sub-project.

14. Ms. Irene Villapando, M&E Specialist


Tasks/Output: Drafting of the PPMS and QPR format.

15. Mr. Ruben Salgado, Procurement Specialist


Tasks/Output: Advised MAFF/NIO on the finalization of the ToRs for FSDDCS for paddy

drying and storage and WICI and the procedures for advertising for EoIs.

16. Mr Gerard Blondet


Tasks/Outputs: Preliminary orientation of the Rice SDP and the use of the PPP approach.

Appendix 5


40

AGRICULTURAL POLICY COMPLIANCE MATRIX

POLICY ACTION No. COMPLIANCE INDICATOR

Compliance

Status

Status of Preparation and Plan to Completion

( = Done NR = not required)

First Draft Second Draft Final Draft MAFF

Approval

Submit to

COM

A. Promote Local Seed Production and Distribution

A1. Develop Rice

Seed Sector 1

MAFF shall have issued the Cambodian

Seed Policy.

Not yet

complied Jan 2016 Feb 2016 Mar 2016 NR

A2. Implement the

Law on Seed

Management and

Plant Breeders’

Rights (2008)

2 (a) MAFF shall have issued the National

Seed Standards.

Not yet

complied

Dec

2016 Jan 2016 Feb NR

3

(b) MAFF shall have issued the Prakas on

Procedures for Providing Seed Quality

Certification.

Not yet


4

(c) MAFF shall have issued the General

Introduction to the Examination of

Distinctiveness, Uniformity and Stability of

New Varieties of Plants.

Not yet


5

(d) MAFF shall have issued the Guidelines

for the Conduct of Tests for

Distinctiveness, Uniformity and Stability of

Rice.

Not yet


B. Strengthen Agricultural Land Management

B1. Strengthen the

Legal Framework

for

6

(a) The Borrower shall have issued the

Land Policy “White Paper”, including a

chapter on Land and Gender Policy.

Complied

Appendix 5


41


Compliance

Status




Approval

Submit to

COM

Agricultural Land

Management 7

(b) MAFF shall have drafted the Law on

Management and Use of Agricultural Land,

focusing inter alia, on (i) women’s access to

information on land administration,

management and distribution; (ii) women’s

equal participation and representation in

all commissions and committees; and (iii)

equal benefits for women in land related

initiatives.

Not yet

complied Feb 2016 Apr 2016 May 2016 Jun 2016

B2. Promote

Sustainable Land

Management

8

MAFF shall have prepared and the

Borrower shall have adopted the national

action program to combat land

degradation in Cambodia.

Not yet

complied Jan 2016 Feb 2016 Mar 2016 Apr 2016

B3. Develop Land-

use Zoning 9

MAFF shall have issued guidelines for

establishing agricultural land use zones,

incorporating measures and targets for

involving women in planning and decision

making.

Not yet


C. Strengthen Farmers’ Organizations and Promote Contract Farming

C1. Regulate

Farmers’

Organizations

10

MAFF shall have submitted the draft Law

on Agricultural Cooperatives to the

National Assembly.

Complied

Appendix 5


42


Compliance

Status




Approval

Submit to

COM

C2. Promote

Contract Farming

in Rice Production

11 The Borrower shall have issued the Sub-

decree on Contract Farming. Complied

D. Facilitate Domestic Trading and Export of Milled Rice

D1. Establish

Standard

Specifications for

Cambodian Milled

Rice

12 MIME shall have issued standards for

various varieties of Cambodian milled rice. Complied

D2. Establish

Phyto-sanitary

Regulations

13

MAFF shall have submitted the draft Law

on Plant Protection and Phytosanitary

Measures to the National Assembly.

Not yet

complied

Feb 2016 Apr 2016 May 2016 Jun 2016

Appendix 5


43

No Policy Conditions

2015 2016

December January February March April May June

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

1 Seed Policy Second draft Final Draft MAFF

Approval

2 Seed Standards Second

Draft Final Draft

MAFF

Approval

3 Seed Certification Second draft Final Draft MAFF

Approval

4 DUS Introduction Second draft Final Draft MAFF

Approval

5 DUS Testing Second draft Final Draft MAFF

Approval

6 Land Management Second draft Final Draft MAFF

Approval

Submit to

COM

7 Land Degradation Second draft Final Draft MAFF

Approval

Submit to

COM

8 Land Zones Second draft Final Draft MAFF

Approval

9 Law on Plant Protection and

SPS Second draft Final Draft

MAFF

Approval

Submit to

COM

Annex 6


42

Status of Agreed Actions dated 15 February 2016

CAM-Climate Resilient Rice Commercialization Sector Development Program (Rice-SDP) Time Bound Action Plan for 2016

No. Agreed Actions Due Date Responsibility Progress

1

Contract signed with the FSDDCS (Feasibility Study, Detailed

Design and Construction Supervision) consultants for

irrigation subprojects

15 Feb

2016 NIO-MOWRAM

Completed

Contract has signed with the FSDDCS consultants

on 15 February 2016.

2

Contract signed with Feasibility Study, Detailed Design and

Construction Supervision consultants (FSDDCSC-MAFF) for

paddy drying and seed storage facilities

Revised TOR and budget estimate replacing Procurement Specialist (18pm) with M&E Specialist (32pm) submitted to ADB by 22 February 2016

Submission 1 submitted to ADB by 21 Mar 2016

RFP issued by 01 Apr 2016

Submission 2 submitted to ADB by 20 May 2016

Submission 3 submitted to ADB by 6 Jun 2016


30 June

2016

NIO-MAFF with

support from

PMO/PIC

Procurement

Specialists

Partly Completed

ToR drafted together with budget estimate and

including the M&E Specialist for MAFF/NIO was

submitted to ADB for no objection.

3

Contract signed with feasibility study, design and pilot testing

of weather indexed crop insurance (FSDPT-WICI)

consultants

Submission 1 submitted to ADB by 21 Mar 2016

RFP issued by 01 Apr 2016



Submission 4 submitted to ADB by 5 Jul 2016

15 July

2016

NIO-MAFF with

support from

PMO/PIC

Procurement

Specialists

Partly Completed

ToR drafted and submitted to ADB for no objection.

Annex 6


43


4

TOR and budget estimate for the service contract package

for Commune Land Use Planning (CLUP) prepared and

submitted to ADB

28

February

2016

NIO-MLMUPC

with support

from PMO/PIC

Procurement

Specialists

Completed

The ToR and Budget estimate for CLUP was

submitted to ADB in March 2016.

Comments received were incorporated into revised

ToR which was resubmitted to ADB on 20 April

2016.

5

Finalized the Detailed Engineering Design, Bidding

Documents and completed the bid invitation works for the

Chhuk Ksach and Prey Sangha subprojects

Submit the final design and bid invitation documents for Chhuk Ksach subproject to PRC through NIO-MOWRAM approval by 1 April 2016

Submit the final design and bid invitation documents for Prey Sangha subproject to PRC through NIO-MOWRAM approval by 30 April 2016

15 May

2016

NIO-MOWRAM

in coordination

with FSDDCSC-

MOWRAM

Partly Completed

- Detailed engineering design and bidding

documents of Prey Sangha will submit on 12

May 2016. Expect to advertise the bid

invitation by 26 May 2016, and bid opening by

27 June 2016.

- Detailed engineering design and bidding

documents of Chhuk Ksach will submit on 31

May 2016 and expect to advertise the bid

invitation by 10 June 2016 and bid opening on

11 July 2016.

6

Bid Evaluation Reports (BERs) submission to ADB for Chhuk

Ksach and Prey Sangha subprojects

30 June

2016

NIO-MOWRAM

in coordination

with FSDDCSC-

MOWRAM

Partly Completed

- Expect to complete the bid evaluation report

for Prey Sangha canal on 12 July 2016 and

expect to award the contract by 29 July 2016.

- Expect to complete the bid evaluation report

for Chhuk Ksach canal on 26 July 2016 and

expect to award the contract by 12 August

2016.

Annex 6


44


7 Award the contracts for Chhuk Ksach canal and Prey Sangha

canal subprojects.

31 July

2016

NIO-MOWRAM

with support

from PMO/PIC

Procurement

Specialists

On Going

The contract award is mostly depend raining

season. However, both subproject could start by

early of the dry season around November 2016 and

project implementation works will be finalized by

May 2017.

8

Finalized the detailed engineering design and bidding

documents and bid invitation for the following 4 canals:

Trach, Ta Mao, Kampong Thnal and Chamkar Kuoy.

31 Detc

2016

NIO-MOWRAM

in coordination

with FSDDCSC-

MOWRAM

On Going

Detailed engineering design, bidding documents

and bids invitation works for the four subprojects

four sub-projects will be completed by 31 Dec 2016.

9 Contract award for 2 contract works out of the 4 subprojects

(listed under S. No. 8) awarded.

31 Dec

2016

NIO-MOWRAM

with support

from PMO/PIC

Procurement

Specialists

On Going

The Contract award will be completed on time as

according the project implantation plan.

10

Up on receive of the detail design approval by NIO-

MOWRAM for the Chhuk Khsach canal and Prey Sangha

subprojects, the implementation works for the Resettlement

Plans including the PRs preparation, update works for the

rest of subprojects will be implemented in 3 months’ time

31 July

2016

MOWRAM and

IRC with support

of PIC

Completed

The Project effected peoples has observed by the

FSDDCS consultants during the projects

preliminary project visit stages. The resettlement

plan will be updated and the resettlement works will

be implemented as defined in the project

implementation plan.

11 BER for the procurement of equipment for Agriculture

Laboratory submitted to ADB

18 March

2016

NIO-MAFF with

support from

PMO/ PIC

Procurement

Specialists

Completed

BER was submitted to ADB for no objection.

Annex 6


45


12 Contract for the equipment for Agriculture Laboratory

awarded

15 April

2016 NIO-MAFF

Not Completed

13 Implementation plan for certified seed production prepared,

finalized and submitted to ADB

31 March

2016

NIO-MAFF with

support from

PMO/IC

Partly Completed

Implementation plan has been prepared and

discussed with ADB on March 7th. Clarification on

the payment of fees for MAFF Trainers is awaited.

14 Execution plan for the Laser Land Levelling activity prepared

and submitted to ADB

30 April

2016

NIO-MAFF with

support from

PIC

Partly Completed

PIC have prepared a Concept Paper on land

levelling which is being reviewed by NIO - MAFF.

15 Implementation plan and budget for CAEA submitted to ADB

28

February

2016

NIO-MAFF with

Agriculture

Extension

Department

Partly Completed

Implementation Plan and Budget for the conduct of

the CAEA has been prepared by NIO-MAFF and

submitted to PMO for review in March 2016.

16

Implementation plan and budget for Soil survey, classification

and mapping; and Rice ecosystem mapping submitted to

ADB

28

February

2016

NIO-MAFF with

Agricultural Land

Resources

Management

Department

Partly Completed

Implementation plan and budget has been prepared

and submitted to the PMO for review in March

17 2016 Work Plan and Budget consolidated, finalized and

submitted to ADB for approval

28 Feb

2016 PMO

Completed

PIC Team have finalized the 2016 Work Plan and

Budget and PMO submitted to ADB on 28 Marc

2016. Comments were received and the AWPB has

now been revised to reflect these changes.

18 Consolidated Training Program with Cost Estimate for 2016

submitted to ADB

28 Feb

2016 PMO

Completed

Consolidated Training Plan was prepared by the

PIC Team and incorporated into the 2016 AWPB.

19 PIC PPP Specialist mobilized 8 Mar 2016

PIC Completed

PPP Specialist was mobilized on 8 March 2016

Annex 6


46


20 PIC Environment and Climate Change Specialist mobilized 15 Mar

2016 PIC

Partly completed

NIRAS submitted two cvs to the PMO for

consideration on 5 April 2016.

21 CV of proposed candidate for National Gender Specialist

position submitted to PMO and ADB for no-objection

28 Feb

2016 PIC

Partly completed

NIRAS have submitted the cv of replacement

candidate to PMO on 5 April 2016

22 PPMS Draft finalized

28 Feb

2016

PMO with

support from

PIC M&E

Specialist

Completed

Draft PPMS prepared by the PIC Team was

submitted to the PMO and was discussed during

meeting at ADB/CARM on 24 March 2016.

23

First updated PPMS for performance as of 30 June 2016

submitted (and updated and submitted subsequently every 6

months

Baseline surveys completed and included in the PPMs by 30 June 2016

31 Jul 2016

PMO with

support from

PIC M&E

Specialist

Partly Completed

First round of training on the PPMS has been

completed in each target province.

First test of the PPMS will be done during April for

the Q1 Progress Report.

ToR for the Baseline Survey is now under

preparation.

Annex 7

CLIMATE RESILIENT RICE COMMERCIALISATION SECTOR DEVELOPMENT PROGRAM Quarterly Progress Report Q1 2016

47

Rice-SDP RISK MANAGEMENT MATRIX

(L = Likelihood: (5 = Almost Certain; 4 = Likely; 3 = Possible; 2 = Unlikely; 1 = Rare; C = Consequence: (5 = Severe; 4 = Major; 3 = Moderate; 2 = Minor; 1 = Negligible) R = Risk Level: (4 = Extreme; 3 = High; 2 = Medium; 1 = Low)

Identified Risk Damage to Project L C R Risk Response Responsibility for

Managing

Project Outcome

Farmers fail to make the

transition from export of paddy

to Viet Nam / Thailand, to sell

to local millers and rice

exporters

Failure in transition would negate the

longer-term objectives of increase in

revenue from rice exports and increase

in net profit of rice exporters.

5 5 4

Ensure that a separate survey on baseline and target indicator is

conducted during the second year of the program to validate

information of informal paddy trade across the border with Thailand

and Viet Nam, as provided for in the PAM.

PMO & MAFF with

support from PIC

Project Outputs

Output 1: A Conducive Legal and Regulatory Environment Established to Facilitate Climate-Resilient Rice Commercialization

Delays in finalizing and

approving the Seed Policy

Delayed release of 2nd Tranche might

affect implementation of investment

components of the Project.

2 4 2 Ensure that the latest version of the Seed Policy is reviewed as

quickly as possible and passed to MAFF for approval MAFF

Delays in finalizing the Prakas

required to implement Chapter

3 of the Seed Law (2008)



components of the Project; lack of good

Prakas will impede the implementation

of the seed certification scheme, which

is a key ‘value chain service’

3 4 2

The latest versions of the Prakas must be critically reviewed to

ensure that they provide a sound basis for the operation of the seed

certification scheme and of the seed testing laboratory.

MAFF

Delays in meeting the deadline

for submission of Law on

Agricultural Land Use and

Management by the Tranche 2

due date (June 2016).



components of the Project.

4 3 2

Ensure that sufficient resources are available to GDA/MAFF on time

to carry out the required preparation of documents and

consultations. Agree on a timeline for preparation of intermediate

drafts of regulations. Recruit experts (e.g. for land and women

issues) to assist in the formulation of drafts for discussion. Use PIC

experts to facilitate review of documents and meetings.

MAFF

Appendix 6

CLIMATE RESILIENT RICE COMMERCIALISATION SECTOR DEVELOPMENT PROGRAM Quarterly Progress Report Q3 & Q4 2015

48


Managing

Output 2: Agricultural Land-use Zoning Improved

Implementation of CAEA and

CLUP is delayed and the

annual target cannot be met.

CEAE lays the foundation and provides

essential information to guide the

implementation of Rice SDP sub-

projects and other activities. Any delay

in CAEA implementation will have

serious impacts on all other project

components.

2 4 3

Despite good preparation (the CAEA manual has been upgraded,

training materials have been produced and communes prioritised

for CAEA implementation) there remains a risk of delay. Close

technical backstopping will be important to avoid this, especially in

the early rounds of CAEA until experience is gained. Un-coupling

CAEA from CLUP has significantly reduced the likelihood of delays

and the plan to involve the Rice SDP Extension Specialist in the 3

CAEA pilots will greatly reduce this risk.

MAF, DAE

backstopping, POIs,

Output 3: Climate Resilient Rice Value Chain Infrastructure Developed

Delay of the implementation of

the planned and scheduled

sub-projects

If the certain infrastructure/building

implementation projects are delayed,

that can cause in worst case almost one

year delay for implementation because

of the seasonal and weather conditions.

In addition this can have affect for the

other planned & scheduled activities.

3 4 2 Strong and on-going project management and following the critical

and scheduled milestones agreed. EAs/IAs/PIC

Output 4: Rice Value Chain Support Services Enhanced to Improve Quality of Cambodian Rice

Insufficient certified/improved

seed is available due to slow

implementation of the seed

certification scheme

Increase in paddy production and

improvements in quality of milling paddy

will not be achieved

4 3 2

Ensure that seed certification is implemented in line with the

Prakas and that all necessary resources are available to launch

certified seed production; this includes the availability of sufficient

basic (foundation) seed from CARDI, which may need to be

addressed by the project.

MAFF/CARDI

Use of certified seed is

unpopular among farmers due

to prohibitive price or other

reasons

This would adversely affect the targeted

increase in paddy production to 9.5

million tons in 2018.

3 4 2

What type or variety to plant is the decision of the farmer. If non-

certified seeds have a lower price and there is a ready market for

paddy from such seeds, a farmer will decide to use non-certified

seeds. Rice-SDP needs to strongly support dissemination of new

technologies to farmers such as the use of commercial seeds.

MAFF

Appendix 6

CLIMATE RESILIENT RICE COMMERCIALISATION SECTOR DEVELOPMENT PROGRAM Quarterly Progress Report Q3 & Q4 2015

49


Managing

Mixture of different rice

varieties without clearly

identified will affect to the

rice market and export.

This mixture can be done in each

of rice value supply chain from

farming, trading, milling, exporting

for sake of the business, especially

the imitated fragrant rice variety

“Sen Kro Obb” mix with the original

fragrant rice “Pka Rumduol”.which

hard to identify by normal physical

analysis.

4 4 3

GDA/MAFF must use Cambodia Rice Standard for all rice products

and set up Central Lab with adequate equipment to measure and

certify the rice samples in time.

Ministry of Commerce shall enforce all millers and rice exporters to

respect code of conduct and true to label.

MAFF/MoC

Output 5: Weather-indexed Crop Insurance Piloted

Farmers fail or have no interest

to buy insurance for their

crops.

Smallholder farmers still depending on

donation provided by relief agencies

when their crop damaged by disasters.

4 3 2

Crop insurance concept is new to Cambodia. Thus, it will require a

considerable effort to develop legal infrastructure, promote private

sector participation and raise awareness among stakeholders.

Government subsidies on the premium payout is one of the best

way to get farmer participating in the initial stage/piloting phase.

MAFF, MEF, PIC

Output 6: Efficient Program Management and Implementation

Coordination between all

involved agencies

As the project structure is complex and

there are many different stakeholders,

the coordination of the implementation

and other activities is crucial

3 3 2 PPMS and other management tools in place and effective use.

Strengthen the coordination role and mechanisms of the EA. EAs, IAs, PIC

Annex 8

CLIMATE RESILIENT RICE COMMERCIALIZATION SECTOE DEVELOPMENT PROGRAM Quarterly Progress Report Q1 2016

50

Summary of priority sub-projects

No. UnitRiels

(Billion)

USD

(Million)

B-7 Rehabilitation of Anglong Ruon system Thmor Korl Irrigation Rehabilitation of 6.3 km of link canal, 21 km of secondary canals and associated structures 1,200 ha 6 2 4 1,065 3 2

B-8 Rehabilitation of Ta Maov Irrigation System Thmor Korl Irrigation Rehabilitation of 4.0 km of link canal, 5.8 km (5) secondary canals and associated structures 200 ha 5 1 1 195 2 4

B-9 Rehabilitation of Mok Rea Secondary Canal Rokha Kiri Irrigation Rehabilitation of 5 km of secondary canal 800 ha 5 1 1 510 6 9

B-6 Rehabilitation of O’ Voir Irrigation System Moung Roussei Irrigation Construction of 1.9 km dike and rehabilitation of 7.3 km of canal and associated structures 1,800 ha 5 1 4 720 9 6

B-3Support for Seed Production in Chong Samnay

with Irrigation RehabilitationMoung Roussei Seed Production

Rehabilitation of 4 km of secondary canal and associated water management structures with support for

seed producing cooperative4,500 ha 2 1 19 5,343 4 5

B-2 Prey Sangha Rice Seed Production Bavel Seed ProductionRehabilitation of 4.4 km of main canal and associated water management structures with support for

seed producing cooperative1,145 ha 2 1 9 522 1 (RS) 1 (RS)

B-4 Seed Drying and Storage Facility Bavel Seed Production Construction of seed drying and storage facility for PPP operation (to be defined) 600 ton 7 2 9 522 5 3

B-5 Seed Drying and Storage Facility Moung Roussei Seed Production Construction of seed drying and storage facility for PPP operation (to be defined) 600 ton 7 2 19 5,343 7 7

B-1 Paddy Drying and Storage Facility Thmor Korl Paddy Storage Construction of 10,000 ton paddy drying and storage facility for PPP operation 10,000 ton 16 4 335 102,978 8 8

K-7 Rehabilitation of Chhuk Khsak Canal Barray Irrigation Rehabilitation of 9 km of secondary canal and associated structures 1,430 ha 4 1 9 1,253 1 (RS) 1 (RS)

K-10 Rehabilitation of Bat Trang Irrigation System Stoung Irrigation Construction of new 120 m weir and rehabilitation of 6 km of irrigation canals 2,000 ha 8 2 16 2,951 7 2

K-9 Rehabilitation of Ta Soong Canals Barray Irrigation Rehabilitation of 1 secondary canal and associated structures 1,330 ha 5 1 12 2,715 5 6

K-8Rehabilitation of Kampaeuy Secondary Canal of

Stung Chinit Irrigation SystemBarray Irrigation Rehabilitation of 7 km of secondary canal and associated structures 650 ha 6 1 4 1,234 4 4

K-3Support for Rice Seed Production with

Rehabilitation of Trach Canal

Stoung & Kg

SvaySeed Production

Support for seed production in San Kor Mean Chey, Kg Svay District, and Trach Canal Stoung District;

and rehabilitation of 4 existing canals and associated structures 947 ha 7 2 18 2,304 3 3

K-4Support for Rice Seed Production with

Rehabilitation of Pnov Irrigation SystemSantuk & Barray Seed Production

Support for rice seed production in Chhuk Ksach, Barray District, in Kvek Baray Dst, and Pnov, Santuk

Dst, and rehabilitation of 8.2 km of Pnov irrigation canal and associated structures1,056 ha 6 1 12 2,834 8 8

K-5 Seed Drying and Storage Facility Barray/ Stoung Seed Production Construction of seed drying and storage facility for PPP operation 600 ton 7 2 12 2,834 6 7

K-6 Seed Drying and Storage Facility Kg Svay/ Stoung Seed Production Construction of seed drying and storage facility for PPP operation 600 ton 7 2 18 2,304 10 10

K-1 Paddy Drying and Storage Facility Stung Sen Paddy Storage Construction of 10,000 ton paddy drying and storage facility for PPP operation 10,000 ton 16 4 59,000 2 5

K-2 Paddy Drying and Storage Facility Stoung Paddy Storage Construction of 10,000 ton paddy drying and storage facility for PPP operation 10,000 ton 16 4 331 60,000 9 9

P-10 Rehabilitation of Ansong Irrigation System Kg Trabek Irrigation Rehabilitation of 6 km of main and 24 km of secondary canals (6), and associated structures 1,192 ha 8 2 5 1,073 4 3

P-9 Rehabilitation of Anlong Char Canal Preah Sdach Irrigation Rehabilitation of 15km of main canal and structures 2,659 ha 7 2 10 2,135 6 7

P-11 Rehabilitation of Rumlech Irrigation system Sithor Kandal IrrigationRehabilitation of reservoir, rehabilitation of 130 m of existing dam, construction of new spillway, and

rehabilitation of 3 km of main and 9 km of secondary canals and associated structures2,117 ha 7 2 10 1,011 5 4

P-7Rehabilitation of Chhue Teal, Boeung Khanhey

Irrigation SystemSvay Antor Irrigation Rehabilitation of 4.8 km of existing dike and 8 km of main canal and associated structures 3,032 ha 6 2 26 2,602 9 8

P-8Rehabilitation of Chamcar Kuoy Canal

RehabilitationSvay Antor Irrigation Rehabilitation of 8.5 km of existing main canal and structures 1,900 ha 6 1 9 1,428 3 9

P-4Support for Seed Production Program at Russey

Sanh VillageSithor Kandal Seed Production

Capacity building in rice seed production, and rehabilitation of associated irrigation system, including

7.5km of main and 20km of secondary canals1,200 ha 7 2 9 3,447 8 2

P-3Support to Seed Production Program at Kg.

Thnal VillagePreah Sdach Seed Production Capacity building in rice seed production, and rehabilitation of 4 km of irrigation canals 550 ha 2 1 6 84 2 6

P-6 Seed Drying and Storage Facility Sithor Kandal Seed Production Construction of 600 Ton seed drying and storage facility for PPP operation 600 ton 7 2 9 3,447 7 5

P-5 Seed Drying and Storage Facility Preah Sdach Seed Production Construction of 600 Ton seed drying and storage facility for PPP operation 600 ton 7 2 6 n.a. 10 10

P-1 Paddy Drying and Storage Facility Svay Antor Paddy Storage Construction of 10,000 ton grain drying and storage facility for PPP operation 10,000 ton 16 4 9 1,623 1 (RS) 1 (RS)

P-2 Paddy Drying and Storage, Facility Preah Sdach Paddy Storage Construction of 10,000 ton grain drying and storage facility for PPP operation, at Kg Thnal Village 10,000 ton 16 4 375 72,732 11 11

Overall Totals 223 56 1,307 344,209

Priority

(2012)

Prov. Re-Priority

(Jan 2015)

BATTAMBANG PROVINCE

KOMPONG THOM PROVINCE

PREY VENG PROINCE

No Name of Subproject District Type Summary Description

Details Estimated CostNo. of

Villages

No of Direct

Beneficiaries

(HH)

Annex 9


51

Compliance with Loan and Grant Covenants (Q1 2016)

SN Covenant Reference in Loan / Grant

Agreement Status as of Q1 2016

Financial

1 (a) The Recipient shall (i) maintain separate accounts and records for the Project; (ii) prepare annual financial statements for the Project in accordance with accounting principles acceptable to ADB; (iii) have such financial statements audited annually by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB, in accordance with international standards for auditing or the national equivalent acceptable to ADB; (iv) as part of each such audit, have the auditors prepare a report (which includes the auditors' opinion on the use of the Grant proceeds and compliance with the financial covenants of this Grant Agreement as well as on the use of the procedures for the imprest fund and statement of expenditures) and a management letter (which sets out the deficiencies in the internal control of the Project that were identified in the course of the audit, if any); and (v) furnish to ADB, no later than 6 months after the end of each related fiscal year, copies of such audited financial statements, audit report and management letter, all in the English language, and such other information concerning these documents and the audit thereof as ADB shall from time to time reasonably request. (b) ADB shall disclose the annual audited financial statements for the Project and the opinion of the auditors on the financial statements within 30 days of the date of their receipt by posting them on ADB's website. (c) The Recipient shall enable ADB, upon ADB's request, to discuss the financial statements for the Project and the Recipient's financial affairs where they relate to the Project with the auditors appointed pursuant to subsection (a) (iii) hereinabove, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB. This is provided that such discussions shall be conducted only in the presence of an authorized officer of the Recipient, unless the Recipient shall otherwise agree.

Grant 0349, Section 4, para 2

The PMO and also NIOs and PIOs have all established separate Imprest Accounts for receipt of project loan and grant funds. Annual financial statements for end of financial year 2015 were prepared and external audits will be conducted in Q2 2016. PMO have provided training to the NIO and PIO accounting staff on the SOPs.

2 (a) The Borrower shall (i) maintain separate accounts and records for the Project; (ii) prepare annual financial statements for the Project in accordance with accounting principles acceptable to ADB; (iii) have such financial statements audited annually by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB, in accordance with international standards for auditing or the national equivalent acceptable to ADB; (iv) as part of each such audit, have the auditors prepare a report (which includes the auditors' opinion on the use of the Loan proceeds and compliance with the financial covenants of this Loan Agreement as well as on the use of the procedures for the imprest fund and statement of expenditures) and a management letter (which sets out the deficiencies in the internal control of the Project that were identified in the course of the audit, if any); and (v) furnish to ADB, no later than 6 months after the end of each related fiscal year, copies of such audited financial statements, audit report and management letter, all in the English language, and such other information concerning these documents and the audit thereof as ADB shall from time to time reasonably request.

Loan 3007, Article 4, para 2


Annex 9


52



(b) ADB shall disclose the annual audited financial statements for the Project and the opinion of the auditors on the financial statements within 30 days of the date of their receipt by posting them on ADB's website. (c) The Borrower shall enable ADB, upon ADB's request, to discuss the financial statements for the Project and the Borrower's financial affairs where they relate to the Project with the auditors appointed pursuant to subsection (a)(iii) hereinabove, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB. This is provided that such discussions shall be conducted only in the presence of an authorized officer of the Borrower, unless the Borrower shall otherwise agree.

3 (a) The Recipient shall (i) maintain separate accounts and records for the Project; (ii) prepare annual financial statements for the Project in accordance with accounting principles acceptable to ADB; (iii) have such financial statements audited annually by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB, in accordance with international standards for auditing or the national equivalent acceptable to ADB; (iv) as part of each such audit, have the auditors prepare a report (which includes the auditors' opinion on the use of the Grant proceeds and compliance with the financial covenants of this Grant Agreement as well as on the use of the procedures for the imprest fund and statement of expenditures) and a management letter (which sets out the deficiencies in the internal control of the Project that were identified in the course of the audit, if any); and (v) furnish to ADB, no later than 6 months after the end of each related fiscal year, copies of such audited financial statements, audit report and management letter, all in the English language, and such other information concerning these documents and the audit thereof as ADB shall from time to time reasonably request. (b) ADB shall disclose the annual audited financial statements for the Project and the opinion of the auditors on the financial statements within 30 days of the date of their receipt by posting them on ADB's website. (c) The Recipient shall enable ADB, upon ADB’s request, to discuss the financial statements for the Project and the Recipient's financial affairs where they relate to the Project with the auditors appointed pursuant to subsection (a)(iii) hereinabove, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB. This is provided that such discussions shall be conducted only in the presence of an authorized officer of the Recipient, unless the Recipient shall otherwise agree.

Grant 0350, Section 4, para 2


Safeguards

4 The Borrower shall ensure that the preparation, design, construction, implementation and operation of the Project, each Subproject and all Project facilities comply with (a) all applicable laws and regulations of the Borrower relating to environment, health and safety; (b) the Environmental Safeguards; and (c) all measures and requirements set forth in the lEE, the EMP, and any corrective or preventative actions set forth in a Safeguards Monitoring Report.

Loan 3007, Schedule 5, para 2

Work has not yet commenced on the feasibility studies for the sub-projects.

5 The Borrower shall ensure that climate change considerations are incorporated in Loan 3007, Schedule 5, Work has not yet commenced on the feasibility studies for

Annex 9


53



the design and implementation of the Subprojects. para 3 the sub-projects.

6 The Borrower shall ensure that no subproject which meets ADB's category A environmental criteria set out in the Safeguard Policy Statement is included in the List of Candidate Subprojects, and that no subproject with category A environmental criteria is financed under the Project.



7 The Borrower shall ensure that all land and all rights-of-way required for the Project, each Subproject and all Project facilities are made available to the Works contractor in accordance with the schedule agreed under the related Works contract and all land acquisition and resettlement activities are implemented in compliance with (a) all applicable laws and regulations of the Borrower relating to land acquisition and involuntary resettlement; (b) the Involuntary Resettlement Safeguards; (c) the RF; and (d) all measures and requirements set forth in the respective RP, and any corrective or preventative actions set forth in a Safeguards Monitoring Report.



8 Without limiting the application of the Involuntary Resettlement Safeguards or the RP, the Borrower shall ensure that no physical or economic displacement takes place in connection with the Project until: (a) compensation and other entitlements have been provided to affected people in accordance with the RP; (b) a comprehensive income and livelihood restoration program has been established in accordance with the RP; and (c) all land and all rights-of-way required for a Subproject is free of all encumbrances.



9 The Borrower shall ensure that no subproject which meets ADB's category A resettlement criteria set out in the Safeguard Policy Statement is included in the List of Candidate Subprojects, and that no subproject with category A Resettlement Criteria is financed under the Project.



10 The Borrower shall ensure that the Project does not have any indigenous peoples impact, all within the meaning of the Safeguard Policy Statement. In the event that the Project does have any such impact, the Borrower shall take all steps required to ensure that the Project complies with the applicable laws and regulations of the Borrower and with the Safeguard Policy Statement.



Social

11 The Borrower shall ensure that the GAP is fully implemented and that all Project related activities are designed and implemented in accordance with ADB's Policy on Gender and Development (1998). In particular, the Borrower shall ensure: (a) 50% female membership in community construction sub-committees; (b) 40% female employment as unskilled laborers in Works; (c) 30% female in management positions in farmer cooperatives and farmer water user's committees; (d) 50% female farmers in pilot on farm trials and demonstrations and pilot crop insurance schemes; and (e) 50% female trainees in all Project training.


GAP is being updated as a part of the QPRs

12 The Borrower shall ensure that Project Provinces promote active community awareness and stakeholder participation in the design, implementation and



Annex 9


54



performance monitoring of the Subprojects, though (a) disseminating information regarding the nature of the Subprojects in open public forums, and (b) establishing a mechanism for public consultation.

Sector

13 The Borrower shall: (a) ensure that all policy actions adopted under the Program as set forth in the Policy Letter and the policy matrix continue to be in effect for the duration of the Program and subsequently; and (b) adopt all policy actions under the Program, as set forth in the Policy Letter and the policy matrix, in accordance with the planned schedule and shall ensure that such policy actions continue to be in effect for the duration of the Program and subsequently.


Work on completion of the policy documents for compliance with June 30 deadline is not yet completed.

14 The Borrower shall keep ADB informed of policy discussions with other multilateral and bilateral aid agencies that may have implications for the implementation of the Program and shall provide ADB with an opportunity to comment on any resulting policy proposals. The Borrower shall take into account ADB's views before finalizing and implementing any such proposal.



15 The Borrower shall ensure that the Counterpart Funds are used to finance the structural adjustment costs relating to the implementation of the reforms under the Program and other activities consistent with the objectives of the Program. The Borrower shall further ensure that the Counterpart Funds are used in accordance with its Standard Operating Procedures.



16 The Borrower shall ensure that each contract for Eligible Items is awarded on the basis of the purchaser's normal commercial procurement practices in the case of procurement by the private sector, or the Borrower's prescribed procurement procedures in the case of procurement by the public sector, having due regard for principles of economy and efficiency.



17 The Borrower shall, and shall cause MEF, MAFF, MLMUPC and MIME to, (a) comply with ADB's Anticorruption Policy (1998, as amended to date) and acknowledge that ADB reserves the right to investigate directly, or through its agents, any alleged corrupt, fraudulent, collusive or coercive practice relating to the Program; and (b) cooperate with any such investigation and extend all necessary assistance, including access to all relevant books and records, for satisfactory completion of such investigation.



Others

18 The Borrower and MEF shall ensure that the Project is implemented in accordance with the detailed arrangements set forth in the PAM. Any subsequent change to the PAM shall become effective only after approval of such change by the Borrower and ADB. In the event of any discrepancy between the PAM and this Loan Agreement, the provisions of this Loan Agreement shall prevail.


Work on revision of the PAM will commence in Q2 led by the PIC team.

19 a) The Borrower shall maintain, or cause to be maintained, records and documents adequate to identify the Eligible Items financed out of the proceeds of the Loan and to record the progress of the Program. (b) The Borrower shall enable ADB's representatives to inspect any relevant records


PMO will introduce recording systems for all IAs to ensure that all relevant information is recorded.

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and documents referred to in paragraph (a) of this Section

20 (a) As part of the reports and information referred to in Section 6.05 of the Loan Regulations, the Borrower shall furnish, or cause to be furnished, to ADB all such reports and information as ADB shall reasonably request concerning (i) the Counterpart Funds and the use thereof; and (ii) the implementation of the Program, including the accomplishment of the targets and carrying out of the actions set out in the Policy Letter, (b) Without limiting the generality of the foregoing or Section 6,05 of the Loan Regulations, the Borrower shall furnish, or cause to be furnished, to ADB quarterly reports on the carrying out of the Program and on the accomplishment of the targets and carrying out of the actions set out in the Policy Letter.



21 The Borrower shall enable ADB's representatives to inspect the Project, the Goods and Works, and any relevant records and documents.



22 The Recipient shall enable ADB's representatives to inspect the Project, the Goods and Works, and any relevant records and documents.

Grant 0349, Article 4, para 3


23 The Recipient shall enable ADB's representatives to inspect the Project, the Goods and Works, and any relevant records and documents.



24 The Recipient shall (a) ensure that the proceeds of the Grant are used for the purposes of the Project and not diverted for any other purpose; (b) promptly inform ADB if it becomes aware that the proceeds of the Grant are being or have been used for the purpose of any payment to a person or entity, or for import of goods, if such payment or import is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations; and (c) take necessary measures to ensure that entities to which the Recipient makes the proceeds of the Grant available comply with the provisions of this paragraph.



25 The Borrower shall make available necessary budgetary and human resources to fully implement each EMP and RP.



26 The Borrower shall ensure that all bidding documents and contracts for Works contain provisions that require contractors to: (a) comply with the measures relevant to the contractor set forth in each lEE, EMP and RP, and any corrective or preventative actions set forth in a Safeguards Monitoring Report; (b) make available a budget for all such environmental and social measures; (c) provide the Borrower with a written notice of any unanticipated environmental or resettlement risks or impacts that arise during construction, implementation or operation of the Project that were not considered in each lEE, EMP and RP; (d) adequately record the condition of roads, agricultural land and other infrastructure prior to starting to transport materials and construction; and (e) fully reinstate pathways, other local infrastructure, and agricultural land to at least their pre-project condition upon the completion of construction.



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27 The Borrower shall do the following: (a) submit semi-annual Safeguards Monitoring Reports to ADB and disclose relevant information from such reports to affected persons promptly upon submission; (b) if any unanticipated environmental and/or social risks and impacts arise during construction, implementation or operation of the Project that were not considered in each lEE, EMP and RP, promptly inform ADB of the occurrence of such risks or impacts, with detailed description of the event and proposed corrective action plan; and (c) report any actual or potential breach of compliance with the measures and requirements set forth in an EMP or RP promptly after becoming aware of the breach.



28 The Borrower shall ensure that no proceeds of the Loan are used to finance any activity included in the list of prohibited investment activities provided in Appendix 5 of the Safeguard Policy Statement.



29 The Borrower shall ensure that candidate subprojects in each Project Province are considered and feasibility studies and detailed design of such candidate subprojects are carried out in the order of priority indicated in the List of Candidate Subprojects.



30 After completion of the requisite feasibility studies, the Borrower shall cause the PMO to ascertain whether the candidate subprojects meet the following criteria to be eligible for financing under the Project: (a) a subproject should be technically feasible and economically viable. If the estimated economic rate of return is below 12%, other significant benefits shall be quantified to demonstrate economic viability of such subproject; (b) procurement package(s), method(s) of procurement and cost estimates shall have been prepared; (c) a detailed financing plan for operation and maintenance of the subproject shall have been prepared: (i) identifying the entity which shall be responsible for the operation and maintenance of the subproject; and (ii) confirming the Project Province's commitment though budgetary allocation to provide requisite funds needed for the operation and maintenance of the subproject; (d) public hearings on a subproject proposal shall have been held in concerned communes and villages, and beneficiary representatives shall have been included in the subproject implementation subcommittee to ensure continued public consultation and supervision; (e) the subproject must be shown to have no significant negative environmental or social impacts, and mitigation measures shall have been identified for minor impacts; (f) the subproject must be shown to have no significant resettlement impacts, and if such subproject Is categorized as Category B, a RP has been prepared in accordance with the RF, the Borrower's laws and regulations and the Safeguard Policy Statement; and (g) the subproject must be shown to have no outstanding social safeguards issues resulting from existing facilities. In case there are any such outstanding issues, the



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Borrower shall ensure that the PIO concerned shall have prepared a corrective action plan in accordance with the Safeguard Policy Statement to address the same.

31 In case that a candidate subproject does not meet the criteria provided in paragraph 15 above, it shall be replaced by the next priority candidate subproject for the respective Project Province under the List of Candidate Subprojects. If a candidate subproject not listed in the List of Candidate Subprojects is to be considered, such subproject shall be examined and screened by MEF with the support from an independent consultant acceptable to ADB and the Borrower and submitted to ADB for approval.



32 Within 12 months of the Effective Date, the Borrower shall cause MEF to engage a suitably qualified and experienced social science institute, university, consulting firm or a non-governmental organization, acceptable to ADB, to monitor Project benefits and submit annual benefit monitoring reports to the Borrower and ADB.


Not due yet.

33 The Borrower shall and shall cause MEF, MAFF, MOWRAM, MLMUPC and the Project Provinces to (a) comply with ADB's Anticorruption Policy (1998, as amended to date) and acknowledge that ADB reserves the right to investigate directly, or through its agents, any alleged corrupt, fraudulent, collusive or coercive practice relating to the Project; and (b) cooperate with any such investigation and extend all necessary assistance, including access to all relevant books and records, as may be necessary for the satisfactory completion of any such investigation.


Not due yet.

34 The Borrower shall and shall cause MEF, MAFF, MOWRAM, MLMUPC and the Project Provinces to ensure that the anticorruption provisions acceptable to ADB are included in all bidding documents and contracts, including provisions specifying the right of ADB to audit and examine the records and accounts of MEF, MAFF, MOWRAM, MLMUPC, Project Provinces and all contractors, suppliers, consultants, and other service providers as they relate to the Project.


Not due yet.