Tonle Sap Poverty Reduction and Smallholder Development Project

Grant: 41435-03 [Approved]
Grant-0186 CAM: Tonle Sap Poverty Reduction and Smallholder Development Project
Asian Development Fund    US$27.3 million

Grant: 41435-04 [Approved]
Grant-0191 CAM: Tonle Sap Poverty Reduction and Smallholder Development Project
Finland (w/ LoA)    US$5.75 million

Grant: 41435-05 [Approved]
Grant-0192 CAM: Tonle Sap Poverty Reduction and Smallholder Development Project
IFAD Grants    US$6.69 million


Technical Assistance: 41435-02 [Approved]
TA-7037 CAM: Tonle Sap Poverty Reduction and Smallholder Development Project
Technical Assistance Special Fund    US$200,000
Finland (w/ LoA)    US$300,000

Project Loan: 41435-01 [Approved]
Loan-2599 CAM: Tonle Sap Poverty Reduction and Smallholder Development Project
Asian Development Fund    US$3.4 million
Agriculture and Natural Resources/Agriculture and Rural Sector Development
Southeast Asia Department
Agriculture, Environment & Natural Resources Division, SERD
26 Nov 2007 - 10 Nov 2009


The impact of the Project would be reduction in rural poverty, and improvement in the socioeconomic conditions and quality of life for the poor people in the Tonle Sap Basin. The proposed TA would design a sector project that will

  1. enhance the factor productivity in farm, nonfarm, and off-farm activities;
  2. improve access to product and financial markets;
  3. facilitate the use of technology and/or market information through introduction of rural ICT; and
  4. attain biosecure agriculture.

The TA’s main outcome will be a design for the Project acceptable to the Government that will

  1. increase the use and non-use value of natural resources through improved environmental management in utilization of agricultural, flooded-forest, and fishery resources in the Tonle Sap Basin;
  2. accelerate income growth for the rural poor through improved productivity and diversification;
  3. increase participation by the rural poor in the domestic and international product and services markets; and
  4. integrate the rural poor into tourism and ecotourism development through production for the tourist market.

The TA will be implemented in two parallel parts: (i) analytical studies and review of the experiences of ADB and other development partners in the sector, both in Cambodia as a whole and in the project area, and (ii)project and subprojects design, including social and environmental assessment, financial and economic analysis, and participatory consensus building at the grassroots with all stakeholders. Key tasks will be (i) to assess the overall state of the economy and rural development; (ii) to assess the agriculture and water sectors in the project area; (iii) to analyze poverty and alternative livelihood opportunities in the project area; (iv) to carry out gender analysis to prepare a gender action plan; (v) to prepare an environmental profile of the project area, including resource degradation, pollution, and loss of biodiversity; (vi) to examine all aspects of market, national, and international links, and supply and value chains; (vii) to review all technical and institutional aspects of biosecure agriculture, with a particular emphasis on food safety and quality control; (viii) to assess the current state of ICT application in agriculture and rural development, and develop an action plan; (ix) to examine the potentials of, and constraints on, smallholder and agribusiness development; (x) to assess institutional, environmental, public-health, and social risks, and formulate measures to ensure adequate safeguards; (xi) to assess the benefits of the proposed project on agricultural productivity, employment, external earnings, the role of women, the livelihood of ethnic minority groups, the environment and public health; (xii) to formulate sector and subsector road maps; (xiii) to examine the performance and capacity of the relevant institutions; (xiv) to prepare a detailed investment project proposal, together with subproject design; and (xv) to estimate financial and economic costs and benefits for the subprojects. The subprojects will specify activities targeted to one or more specific components, and are expected to address the needs of specific target groups.
A detailed proposal for an ensuing loan project will be formulated upon TA completion. The project is expected to be implemented in selected communities of Siem Reap, Kampong Thom, and Kampong Cham provinces that are relatively underdeveloped but have potential for growth and diversification. It is expected to reduce poverty among disadvantaged rural residents, and to help smallholders now engaged in mere subsistence activities to develop business enterprises. Special attention will be given to social issues specifically related to gender and ethnic minority groups. An initial poverty and social analysis is in Appendix 2. The project will also aim at reducing public health and environmental risks through (i) resource conservation measures, (ii) pollution control, (iii) improved practices in crop production, (iv) pest management, and (v) improved product processing, including the introduction of organic farming and rural renewable energy.

The total cost of the TA is estimated at the equivalent of $725,000. The Government has requested ADB to finance the equivalent of $500,000. ADB proposes to provide $200,000 equivalent financed on a grant basis by ADB's TA funding program. The balance will be financed by the Government of Finland on a grant basis up to $300,000, and administered by ADB. The International Fund for Agricultural Development (IFAD) will provide an equivalent of $150,000 in parallel financing that will support 6 person-months of international consultants, and miscellaneous administration costs. The Government will provide $75,000 in kind to cover office accommodations, counterpart staff support, facilities for seminars and meetings, other administrative expenses, and part of local transport costs. The Government has been informed that approval of the TA does not commit ADB to finance any ensuing project.

Implementation Arrangements

The Supreme National Economic Council (SNEC) will act as the Executing Agency (EA). SNEC is responsible for developing the action plan for agriculture and natural resources under the Government’s Rectangular Strategy, and is well-positioned to guide and coordinate the implementation of the TA, which intends to develop a broad-based and innovative pilot-scale project. Implementation will involve development by the EA of an operational plan for agriculture and natural resources, while preparation of subprojects is to be coordinated principally by the Ministry of Agriculture, Forestry and Fisheries, the Ministry of Rural Development, the Ministry of Commerce, and National Information and Communication Technology Development Authority. The EA will appoint a project manager for the TA and provide office facilities to the TA consultants. An interministerial TA coordinating committee, chaired by the secretary-general of SNEC, and comprising technical personnel designated by relevant ministries and departments, will be established to act as a direct counterpart group for the TA, provide policy and technical guidance for the TA, and facilitate resolution of outstanding TA implementation issues. Representatives of the target provinces will participate, as required. SNEC will also ensure interministerial coordination with the relevant agencies of the Government, including the Ministry of Economy and Finance, council for agricultural and rural development, the Ministry of Industry, Mines and Energy, the Ministry of Land Management, Urban Planning and Construction, the Ministry of Environment, the Ministry of Water Resources and Meteorology, the Ministry of Education, Youth and Sports, the Ministry of Health, the Ministry of Interior, the Ministry of Tourism, the Ministry of Women’s and Veterans’ Affairs, and the Ministry of Posts and Telecommunications.

The TA will be implemented over a period of 9 months, beginning in January 2008 and ending in September 2008. The TA will provide 26 person-months of consulting services—20 person-months of international and 6 person-months of national consultants. IFAD will provide 6 person-months equivalent services of an international social development specialist, a resource management specialist, and an institutional development specialist for the TA. ADB will engage individual consultants with core expertise in (i) agricultural economics and marketing; (ii) biosecurity and environmental and public health assessment; and (iii) ICT for rural development. The consultants will be engaged in accordance with the Guidelines on the Use of Consultants (2007, as amended from time to time). Unallocated budget may be used for additional inputs from existing experts or from new experts in areas such as social development, gender issues, involuntary resettlement, or others to be determined during the TA implementation. The international agricultural economist and marketing specialist will lead the TA consultant team. The team leader will participate in the fact-finding mission for the ensuing project. Additional inputs will be drawn in from national experts conducting the special studies. The team leader will contract out necessary studies and assessments to national individuals or firms, and purchase the necessary office equipment in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). Equipment procured under the TA will be handed over to the Government upon TA completion.

The TA will organize stakeholder workshops to disseminate the TA outputs, obtain feedback and reviews, refine the project proposal, and ensure close liaison with key stakeholders at the national, provincial, and local levels. Tripartite review meetings involving the Government, the TA consultant team, and ADB will be organized at least three times at critical milestone events. The consultant will prepare (i) a TA inception report, including a detailed work program, to be submitted within 3 weeks of the start of the TA, and to be discussed at the initial tripartite review meeting; (ii) an interim report to present preliminary findings based on the interim results, to be submitted by the end of the fourth month of the TA, and to be discussed at the interim tripartite review meeting; (iii) a draft final report 2 months before TA completion, to be discussed at national- and provincial-level workshops, and the final tripartite review meeting; and (iv) a final report incorporating all outputs upon TA completion. Key outputs of the TA will be translated into Cambodian as required.

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