director, eif-niu · 7. duration : 5 years (until 31 mar 2012) 8. original budget : us$12,350,000...

By CHHIENG Pich,Director, DICONational Project Director, TDSPDirector, EIF-NIU

Progress Update on Trade SWAp, TDSP and EIF

1. Progress Update on TDSP

2. Progress Update on EIF

3. Medium Term Plan

4. Investment for New Frontier

5. Exit & Sustainability Strategies for TDSP

1. Project Development Objectives (PDOs): TDSP will contribute to increase the Royal Government of Cambodia's efficiency in formulating and implementing effective trade policies.

2. Multi-Donor Trust Fund : EU, DANIDA & UNIDO3. Trust Fund Manager : World Bank4. Executing Agency : DICO/MoC5. Board approval date : 07 Jan 20096. Effective date : 09 Mar 20097. Duration : 5 years (until 31 Mar 2012)8. Original budget : US$12,350,0009. Additional budget : US$3,100,00010. First extension : 31 Jan 2014 (22 months)11. Second extension : 31 Mar 2015 (14 months)12. Third extension : 14 Aug 2016 (17 months)13. WB Implementation Support Mission : 27 Oct – 27 Nov 201414. EU-ROM & WB Implementation Support Mission: 22 Sep – 02 Oct 2015

No Identified Projects # Projects

1. Total project under TDSP 29

2. Projects completed and closed 20

3. Ongoing projects 9

• Projects will be completed and closed by Aug 2016 ASYCUDA World System (GDCE-MEF), ICT Master Plan – Automation of Certificate of Origin (MoC), Automation of Business Registration (BRD), Automation of SPS Certificate (GDA-MAFF), Trade Training and Research Institute (TTRI-MoC), Drafts of Rice Standards – Certification Schemes for Rice (Accreditation System) (ISC-MIH), Development of a stronger National system for IP generation, protection, administration

and enforcement (DIPR), Support for the Arbitration Council and Dispute Resolution in Cambodia Strengthening the Operational Capacity of the National Commercial Arbitration Centre

9

Cumulative Expenditure $12,165,487

(79%)

Funds Required for DICO Operations & including various consultants

$467,809(3.0%)

US$ 2,816,704 Balance Commitment under all MOUs including GDA,

TTRI, ACF, NCAC & ICT but excluding the closed projects (18%)

TDSP Funds PositionAs of 31st December 2015

(Unaudited - Expressed in Percentage of the Total Grant Amount of US$ 15.450 million)

• We have $ 3,284,513 to spend in the next 8 months,

• We need to spend $410,564 each month,• Or $ 1,094,838 each quarter

TDSP FundActual Disbursement against Projected Disbursement by Quarter, 2014/ 2015

As of 31st December 2015

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015

798,281

551,935

400,259

1,060,124

805,971653,425

586,610

262,511

1,002,753

363,069

Disbursement Projection Actual Disbursement

82%

106%

66%

95%

45%

TDSP FundDisbursement by Year, As of 31st December 2015

(Expressed in Percentage of the Total Grant Amount of US$ 15.450 million)

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2009 2010 2011 2012 2013 2014 2015

116,584615,558

1,674,943

2,751,160

2,087,570

2,704,645

2,214,943

17.5%

14.3%

4%0.75 %

10.8%

17.8%

13.5%

NOTE: *. Cumulative Disbursement = USD 12,165,487**. Cumulative Disbursement as a Percentage of Total Grant = 78.7%

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Q1/2016 Q2/2016 Q3/2016

1,217,480 1,201,728

865,305

TDSP FundFuture Disbursement Projection by Quarter (2015/2016)

Estimated Disbursements of Grant Balance – US$ 3,284,513

EIF FundCumulative Disbursement against Allocated Grant Amounts

As of 31st December 2015

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

EIF Tier 1 CEDEP I CEDEP II

1,293,900

290,520 347,610

1,179,865

110,19029,654

Grant Actual Disbursement

91.2%

37.9%

8.5%

EIF Tier 1 (Phase I and II)

1. Starting date: Feb 2010

2. Closing date: Mar 2016

3. Net amount of Phase 1: 709,900

4. Total amount of Phase 2: 584,000

5. Total amount (P1+P2): 1,293,900

6. Total fund received (P1+P2): 1,293,900

7. Total fund disbursed: 1,179,865

EIF Tier 2 (CEDEP I and II)

1. Start date: Jul 2012

2. Closing date: Mar 2016

3. Total fund received: 225,000

4. Total fund disbursed: 139,844

As of December 31, 2015 (CEDEP I – US$ 110,190 and CEDEP II – US$ 29,654)

-

10,000

20,000

30,000

40,000

50,000

60,000

Q 1/'14 Q 2/'14 Q 3/'14 Q 4/'14 Q 1/'15 Q 2/'15 Q 3/'15 Q 4/'15

57,166 57,618

22,381

49,173

37,517 43,825

53,870 54,226

As of December 31, 2015

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2010 2011 2012 2013 2014 2015

12,844

192,991

313,290 284,826

186,475 189,438

As of September 31, 2015 – Total Disbursement – US$ 1,179,865 or 91.2%

No. Description Estimated budget

Cluster 1 Trade policy, sector policy and legal and regulatory reform

USD 4-5 million

Cluster 2 Trade facilitation and Transport logistics USD 5 million

Cluster 3 SPS and other Quality Systems for Trade USD 5-7 million

Cluster 4 Private Sector structuring USD 5-6 million

Cluster 5 Development of inclusive export value chains USD 5-7 million

TOTAL USD 24-30 million

Cluster 1: Trade policy, sector policy and legal and regulatory reform

Cluster strategic objectives Trade SWAp Roadmap Outcomes1. Complete trade-related key legal and

regulatory reformsOutcome 1: Trade policy, legal reform and trade negotiations

2. Strengthening implementation of trade-related laws and regulations through strengthening of implementation and enforcement capacity of relevant line ministries and agencies

Outcome 6: Establishing a trade-supportive framework forintellectual property rights

3. Formulate a trade policy 2015-2025 to guide Cambodian negotiators

Outcome 1: Trade policy, legal reform and trade negotiations

4. Develop sector policies based on value chain analytical work

Outcome 18: Mainstreaming trade

Start-up projects (Low-hanging fruits)

1) Accelerate implementation of the work program on legal reform 2012-20152) Analyze non-tariff measures included in the National Trade Repository3) Strengthen enforcement of geographical indications4) Formulate a trade policyEstimated resource needs (2016-2020) USD 4-5 million

Cluster 2: Trade facilitation and Transport logistics

Cluster strategic objectives Trade SWAp Roadmap Outcomes

1. Implement Cambodia National Single Window (NSW)

Outcome 2: Trade facilitation

2. Formulate and Implement National Trade Logistics Plan

Outcome 3: Trade logistics

3. Implement ATIGA and the WTO Trade Facilitation Agreement (“Bali Package”)

Outcome 2: Trade facilitationOutcome 1: Trade policy, legal reform and trade negotiations

Start-up projects

1) Review Arrangements among Cambodian Border Agencies and with Vietnamese and ThaiCounterparts Agencies to Create Shared Border Point Offices/Facilities at Key Crossings

2) Assessment of Other Trade-Facilitation-related Documents not yet Computerized

3) Support Initial Work on National Trade Logistics Plan

4) Institutional Arrangements and Assistance Modalities for TFA Implementation in Cambodia

Estimated resource needs (2016-2020) USD 5 million

Cluster 3: SPS and other Quality Systems for Trade


1. Establish a coherent WTO- and ASEAN-compatible legal and regulatory framework for SPS and other quality systems

Outcome 4: Strengthened capacity of exporters tomeet technical standards and SPS requirements.

2. Enhance systems and structures to develop adoption of SPS standards and practices throughout the entire food value chain from “farm-to-fork”, including strengthening SPS practices at farm, producer, and retailer levels

Outcome 4: Strengthened capacity of exporters tomeet technical standards and SPS requirements.

3. Achieve international accreditation of Cambodian laboratories for relevant parameters

Outcome 4: Strengthened capacity of exporters tomeet technical standards and SPS requirements.Outcome 17: Bridging the skill gap for exports.

Start-up projects

1. Amend and adopt a WTO-compliant Law on Standards2. Complete drafting of Food law and assemble group of experts to eliminate contradictions and lack of

coherence in current SPS framework.

3. Adopt 250 or ASEAN harmonized standards not yet adopted by CambodiaEstimated resource needs (2016-2020) USD 5-7 million

Cluster 4: Private Sector structuring


1. Private sector Associations are able to articulate positions and dialogue with Government through the G-PSF or other venues

Outcome 10: Processed food.Outcome 12: Milled rice.Outcome 13: Cassava.Outcome 14: Rubber.Outcome 16: High value silk.

2. The private sector and Government develop PPP arrangements to narrow the labor skill gap, invest in common facilities, or support other investment in “public goods”

Outcome 7: Garments.Outcome 9A: SEZ.Outcome 15: Tourism.

3. The private sector increases capacity in marketing, promotion and branding for exports

Outcome 7: Garments.Outcome 8: Footwear.Outcome 10: Processed food.Outcome 12: Milled rice.

4. The private sector is able to meet international SPS and other quality standards

Outcome 4: Strengthened capacity of exporters to meettechnical standards and SPS requirements.Outcome 7: Garments.Outcome 14: Rubber.Outcome 17: Skill gap

Start-up projects1. Develop culture of professions in Tourism2. Develop/strengthen collective branding in High-value fragrant rice, garments, and high-value silk.Estimated resource needs (2016-2020) USD 5-6 million

Cluster 5: Development of inclusive export value chains


1. Develop export capacity in priority sectors identified by the Government, beginning with the priority sectors identified in CTIS 2014-2018 and the 2015 Industrial Development Policy

Outcome 9B: Light manufacturing assembly.Outcome 10: Processed food.Outcome 12: Milled rice.Outcome 13: Cassava.Outcome 16: High value silk products

2. Develop a business and investment environment supportive of the development of Inclusive Value Chains including through deepening backward linkages

Outcome 5: Investment environment for exports.Outcome 9A: SEZ.

Start-up projects

1. Prepare Draft Project Document(s) for Submission to EIF or Other Interested Development Partners.

2. Support Implementation of Laws on Investment and SEZ once adopted.

3. Develop Relevant Investment Promotion Tools to Attract New Investment in Key Priority Export ValueChains

Estimated resource needs (2016-2020) USD 5-7 million

1. Trade Policy, Sector Policy, Legal and Regulatory Reform: Formulate Trade Policy in view of AEC, RCEP, TPP and erosion of preferences including RoOs; develop sector policies (e.g. cassava, fish, rubber, others); identify sector-specific NTMs; implement the Government’s 2012-2015 Work Program on Legal Reform, including key reforms identified in the Trade SWAp Road Map 2014-2018.

2. Trade Facilitation and Transport Logistics: Establish the NSW including automation of trade related documents; respond to the Bali Agreement on Trade Facilitation; develop, adopt, implement a national transportation logistics plan; improve cross-border transit agreements; improve and enforce road transport regulations; encourage modernization of road transport fleet.

3. SPS and Other Quality Systems for Trade: Complete key legal reforms in SPS; develop capacity of key agencies not only in Phnom Penh but in field offices as well especially in areas of surveillance and inspections; promote a culture of SPS including through encouraging agro exporters to adopt SPS standards required by importing markets, develop various quality systems to support export sectors (e.g. rubber, silk.)

4. Private Sector Structuring: Strengthen sector associations and private sector in rice, cassava, fisheries, rubber, and hospitality including ability of sectors to articulate positions and engage government through G-PSF or other venues; strengthen and promote branding through sector-specific collective marks, GIs, Quality Seals, other means as well as through “Made in Cambodia” branding; strengthen export promotion capacity including through capacity building in sector associations.

5. Development of Inclusive Value Chains: Build capacity of priority export sectors identified by Government in the Trade SWAp Road Map 2014, including in light manufacturing, agro-processing, rubber and tourism.

6. Trade Mainstreaming and Management of Aid for Trade: Continue to build capacity for monitoring and communicating Trade SWAp as a program instead of a collection of projects; continue to mobilize and coordinate AFT support; strengthen capacity of MoC and other line ministries to participate in SWAp; improve fiduciary management of AFT projects using different disbursement modalities. Deepen trade build trade-related training and research capacity in Government;

7. Skills for Exports: Address the lack of skilled technical personnel as a result of the absence of a robust TVET structure is a serious bottleneck in Cambodia’s ability to move up value chains; address the lack of well-trained engineers (mechanical, structural, agricultural, chemical, biologist, etc.); strengthen collective bargaining environment and dispute resolution mechanisms.

8. Investment Environment, Integration in Regional Value Chains, Backward Linkages: Complete supportive legal framework including encouraging development/deepening of backward linkages in garment, bicycles, footwear, hospitality (horticulture); diversify investment in regional and global value chains beyond garment, footwear and bicycles; develop investment promotion capacity including at provincial level.

9. Rural Development for Exports including Extension Services, Cooperatives Development, Surveillance Services: Develop structured value chains between farmers and semi-agro-processors or agro-processors through farmers groups, cooperatives, contract farming arrangements, etc; strengthen quality of seeds, seedling, and other plantings;

10. Access to Finance: Address the lack of access to working capital and trade finance especially for SMEs and other small producers/exporters as it is a significant constraint to export development.

1. Trade Policy, Sector Policy, Legal and Regulatory Reform:

2. Trade Facilitation and Transport Logistics:

3. SPS and Other Quality Systems for Trade:

4. Private Sector Structuring:5. Development of Inclusive Value Chains: 6. Trade Mainstreaming and

Management of Aid for Trade: 7. Skills for Exports: 8. Investment Environment, Integration in

Regional Value Chains, Backward Linkages:

9. Rural Development for Exports including Extension Services, Cooperatives Development, Surveillance Services:

10.Access to Finance:

1. EU, GIZ

2. EU, WB, USAid

3. EU, UNIDO

4. ADB5. EU, ESCAP, IFAD6. EIF, EU

7. SIDA, AFD, CBI8. JICA, EU, GIZ

9. IFAD

10. ADB

1. MOC

2. WB/GDCE

3. MAFF/MOC

4. MIH5. MOC/MAFF6. MOC

7. MOLVT/MOC8. CDC

9. MAFF

10.MEF

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New Project Proposal

1. Objective (1) To strengthen coordination work with the provincial-municipal sub-committee on investment in building strategic alliance for servicing investors in the area of their purview,

(2) To create awareness among various stakeholders on the New Investment Law, the Law on Special Economic Zones, and the implementing guidelines on Industrial Development Policy.

2. Proposal Title Investing in New Frontier (INF) – Capacity building for the Management of Municipal-Provincial Sub-Committee on Investment (MPSCI)

3. Submitting Agency MOC/DICO

4. Implementing Agency Department of Public Relations and Investment Promotion, Council for the Development of Cambodia (CDC)

4. Expected starting date Mar 2016

5. Expected completion date Jul 2016

6. Estimated Budget $103,500

7. Project beneficiaries and expected outcomes

Government officials in MPSCI and key line ministries participating in IDP implementation

8. Expected outcomes Five regional workshops will be conducted to disseminate the Guidelines for the implementation of IDP, Manual on new Investment Law and Law on Special Economic Zones

1. Overview of Exit and Sustainability Strategy

2. Exit Strategy Plan

3. Sustainability Action Plan

4. Exit Strategy

5. Sustainability

Overview of the Exit and Sustainability Plan

• The Exit Strategy of TDSP describes the transition process of on how TDSP will close and how the remaining allocated funds will gradually be withdrawn while ensuring the achievement of the Program Development Objectives.

• The Exit Strategies will not only identify appropriate strategies to close each project supported by TDSP, but also to maintain the benefits that have been achieved while pursuing for some continuation of activities that need further actions.

• The Sustainability Strategies provide a road map to guide DICO and the development partners on the activities to be continued and carried out beyond the grant period.

• The Sustainability Plan for TDSP helps identify what resources are necessary to sustain various successful projects, encourage the development of partnerships and support collaboration, and help define progress and the necessary steps needed to ensure long-term success after the grant ends.

Exit Strategy Plan 1/5(January to August 2016)

Exit Strategy Plan 2/5 (January to August 2016)

Sustainability Action Plan 1/5

Exit Strategies 1/2• DICO to continue its function as a National Implementation

Unit or as an Executing Agency after the end of TDSP;• DICO to prepare and monitor an Exit Plan for all projects

with an effective handover of tasks, transfer of institutional memory to the permanent unit in the Agency, identification of responsibilities and management of fixed assets purchased during the project, and management of financial resources that have been handed back to DICO;

• Prepare Project Completion Reports for all projects; prepare Implementation Completion and Results Report of TDSP; and prepare the final disbursement report of the Program.

Exit Strategies 2/2The Royal Government of Cambodia, thru the Ministry of Commerce, must create a Technical Working Group that will prepare the Medium and Long-Term Technical Assistance Plan based on the following: 1. The flows of Aid-for-Trade from all sources and their contribution

to growth and development; 2. The capacity of the government to provide support to the various

sectors in trade and private sector development; 3. Areas of opportunity within the private sector for the rapid

growth of output, exports, and employment, and the public sector support required to promote these activities;

4. The main constraints – skills, finance, international competition, limitation of management that prevent expansion of the private sector; and (e) changes in government regulations and policies that could alleviate the main constraints.

Sustainability Strategies 1/21. Relevance - To be relevant, DICO as an NIU should be in a position to

continue: (a) coordinating in-country Aid-for-Trade activities and implementation at the national level; and (b) providing a consultative mechanism between government and all relevant stakeholders involved in mainstreaming trade into the formulation of the National Strategic Development Plan, the Rectangular Strategies of the Government, and the recently adopted Industrial Development Policy.

2. Ownership and Active Participation and Support of Government Institutions - The sustainability of TDSP or any other AfT program rests on the long-term commitments and actions of national stakeholders and partners to build on the work and results achieved during the life of TDSP.

3. Institutional Development Support – DICO as an NIU should continue to build on the existing institutional set-up for coordination and implementation of trade-related policies development, and other consultative processes and mechanisms.

Sustainability Strategies 2/24.Training and Capacity Building – DICO as an NIU must be the technical hub for providing inputs in project management, and trade mainstreaming. Therefore, sustaining the capacity of the officers and staff of the NIU and retaining these staff beyond TDSP’s life is crucial.5.Financial Support – The NIU structure of DICO is almost permanent and it cannot be sustained unless financial support is extended by the Government, while waiting for financial support from donor partners.6.Monitoring and Evaluation – To sustain the results of supporting the NIU, TDSP’s financed projects should be managed towards the achievement of expected results. The M & E Unit must continue monitoring and evaluating the exit and sustainability plans and strategies of the various implementing agencies even beyond the life of TDSP.

Action Steps Undertaken towards implementing sustainability strategies

• Results-based budget introduced by RGC for 2016-2018, including support by RGC to DICO activities;

• MOC formulating MTP and top 10 clusters for AFT for 2016-2020;• DICO formulating the “Investing for the Future –I4F: Project

Proposal to ensure DICO and IAs are better prepared to cope with different AfT project implementation modalities;

• Gradually phasing out of consultant positions;• Reviewing and reformulating CTIS to conform with TA

requirements for future programs; and• DICO mobilizing additional resources with selected DPs and by

formulating project proposals.

Timetable for SSC-TD-TRI Meeting in 2016

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

SSC Thu 25

SSC Mon 30

SSC Wed 31

SSC Tue 29

Timetable for IC Meeting in 2016

ICMon 11

IC Thu 11

IC Tue 15

IC Thu 21

IC Wed 11

IC Tue 14

IC Tue 12

IC Thu 11

IC Tue 13

IC Wed 12

IC Thu 10

IC Tue 13

Timetable for DICO and IAs Meeting in 2016

Mod 07 Tue 05 Wed 04

Timetable for D/ICO and Line Ministries Meeting in 2016 (Under EIF)

Wed 06 Tue 10 Mon 05 Thu 08

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នាយកដ� នសហរ�តបត�ករអន�រជាត

ឣ‍សយដ‌� ន: ឡ�តេលខ ១៩-៦១ វ�ថរកសងពាណជ�កម� (១១៣េប), ភមទកថ‌� , សង‌� តទកថ‌� , ខណ�

ែសនសខ,

រ‌ជធានភ�េពញ ១២១០២

ទរសព�/ទរសារៈ ០២៣-៨៦៦-០៧៤

Email: [email protected]

www.moc.gov.kh | www.moc.gov.kh/tradeswap

Ministry of CommerceDepartment of International Cooperation

Lot 19-61, MoC Road (113B)Phum Teuk Thla, Sangkat Teuk ThlaKhan Sen Sok, Phnom Penh 12102

Cambodia

Tel/Fax: 023-866-074

Email: [email protected]

www.moc.gov.kh | www.moc.gov.kh/tradeswap

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