Semi-Annual Programme Management Report (January – June 2017)

KINGDOM OF CAMBODIA Nation Religion King AGRICULTURE SERVICES PROGRAMME FOR INNOVATION, RESILIENCE AND EXTENSION (ASPIRE)

IFAD LOAN No.2000000744 ASAP TRUST GRANT No.2000000743 SEMI-ANNUAL PROGRAMME MANAGEMENT REPORT (JANUARY – JUNE 2017)

Consolidated by the ASPIRE Secretariat Support Team 14 August 2017

A programme funded by the Royal Government of Cambodia and the International Fund for Agricultural Development (IFAD)

1 Table of Contents

Contents Page Foreword 3 Abbreviations and Acronyms 4 Executive Summary 6 I Programme Description 9 A Background of the Programme 9 B Goals and Objectives 10 C Programme Area and Target Population 10 D Programme Components 10 E Implementation Arrangements 11 II Summary of Achievements and Results 13 A Progress Towards Meeting the PDO 13 B Achievements Towards Meeting Programme Components, Outcomes, and 16 Outputs III Fiduciary Achievements and Results 32 A Financial Management Achievements and Results 32 B Procurement Management Achievements and Results 40 IV Challenges, Risks, and Mitigation Measures 45 V Lessons Learned 49 VI Follow-up Actions and the Way Forward 50 Annexes: A Agreed Actions and Next Steps (IFAD ISM Findings and Recommendations) 58 B Compliance with Financing Agreement Covenants 80

2 FOREWORD

The agricultural extension services in Cambodia is still on its way of diffusing agricultural technologies to farmers and in creating a so-called “agricultural revolution.” Although the results achieved by the smallholder farmers include a much higher agricultural productivity as reported in the Baseline Studies by SBK, the Cambodian Model for Agricultural Extension (CMAE) is still on its way of assisting the diversity of smallholder farmers in contributing to broad-based economic growth through profitable and resilient farm business. This Semi-Annual Programme Management Report for 2017 of Agriculture Services Programme for Innovation, Resilience and Extension (ASPIRE) highlights the achievements in at least three (3) components: (i) Component 2 – Capacity Development for Extension Services; (ii) Component 3 – Improved Extension Services; and (iii) Component 4- Infrastructure Supporting Climate Resilient Agriculture. The Report also noted the slow phase of activities being carried out for Component 1 – Knowledge Based Policy. In presenting the results of ASPIRE for the January to June 2017 period, the Programme puts on top of its priority of ensuring that agricultural production becomes climate smart for addressing the need for adequate, nutritionally balanced food for a growing and more demanding population in a situation of resource limitations, and climate change and variability. The provincial implementing agencies (PDAFF) have recognized that the dissemination and uptake of climate smart technologies, tools and practices is still largely an ongoing, challenging process, despite that these are being discussed in the Farmer Field Schools and the Small Learning Groups (SLGs). Barriers at different levels must be overcome in the field and solutions to these challenges must respond to specific local needs. ASPIRE is now responding to these challenges by providing adequate capacity at different levels to perform the actions and changes needed, as well as to support the implementation of climate-smart actions. As broadly recognized, all stakeholders – including governments, producers and buyers – should act as one to address the increasingly negative impact of climate change by securing adequate policies, technical and financial conditions for increased productivity, building resilience and the capacity to adapt. The adaption of climate related knowledge, technologies and practices to local conditions, promoting joint learning by farmers, researchers, rural advisor and widely disseminating Climate Smart Agricultulture (CSA) practices, is critical, and are still on top of the agenda of ASPIRE for the coming period, as we have already launched the provision of Grants for Innovation and Climate Smart Technologies. It is clear from information gathered from the field that ASPIRE needs more effective and efficient extension providers and systems that can only be achieved if the Programme will continue providing institutional improvement and reforms for more capacity building activities at organization and individual levels. For this First Semester Progress Report for 2017 of ASPIRE, we wish to extend our appreciation to IFAD, development partners, stakeholders, the agricultural industry, and our agribusiness partners for their commitment towards the sector. Finally, a word of thanks is due to all implementing agencies, officers, staff, and consultants for their support and spirit of cooperation. By working together, we will strive towards realizing our vision of creating a better life for all Cambodian smallholder farmers.

H.E. MAM AMNOT HOK KIMTHOURN Secretary of State Programme Manager Programme Director, ASPIRE Programme Support Secretariat, ASPIRE

3 Kingdom of Cambodia

Fiscal Year January 1 to December 31

Currency Equivalents At Appraisal As of June 30, 20171 March 31, 2015 Riel 1.00 0.000249377 0.00024474 US$1.00 Rs4,010 Rs4,086

Abbreviations and Acronyms

ACIAR Australian Centre for International Agriculture Research ADB Asian Development Bank AQIP Agricultural Quality Improvement Project ASPIRE Agriculture Services Programme for Innovation, Resilience and Extension AusAID Australian Agency for International Development (now Department of Foreign Affairs and Trade) C/S F Commune Sangkat Fund CARDI Cambodia Agricultural Research and Development Institute CAS Country Assistance Strategy CAVAC Cambodia Agriculture Value Chain Program (Australian funding) CBAPP Community-Based Agricultural Productivity Project CBRDP Community Based Rural Development Project CC (1) Commune Council CC (2) Climate Change CDB Commune Database CDHS Cambodia Demographic and Health Survey CDRI Cambodia Development Research Institute CEW Commune Extension Worker CIP Commune Investment Programme CMDGs Cambodian Millennium Development Goals COSOP Country Strategic Opportunities Programme CSES Cambodia Socio-Economic Survey D&D Decentralisation and De-concentration DALRM Department of Agricultural Land Resource Management DANIDA Danish International Development Agency DAO District Agriculture Office DfID Department for International Development (UK) DRC Department of Rice Crop DST District Support Team ECCA Environment and Climate Change Assessment ENRM Environment and Natural Resources Management FBS Farm Business School FMM Financial Management Manual FSS Farmer Field School FWUC Farmer Water User Community GCCTS Group Conditional Capital Transfer Scheme GDA General Directorate of Agriculture GDP Gross Domestic Product GESS Grants for Extension Services to Smallholders GIZ Deutsche Gesellschaft fuer Internationale Zusammenarbeit (German International Cooperation Agency) GPS Global Positioning System GRF Group Revolving Fund HARVEST Helping Address Rural VulnEARBilities and Ecosystem Sustainability HPI-1 Human Poverty Index

1 https://www.nbc.org.kh/english/economic_research/exchange_rate.php (accessed 16 August 2017) for June 30, 2017 exchange rate

4 HRD Human Resource Development ICPM Integrated Crop and Pest Management ID Poor Identification of Poor Household Programme, Ministry of Planning IDA International Development Association IFAD International Fund for Agricultural Development IFC International Finance Corporation IFPRI International Food Policy Research Institute IGRF Improved Group Revolving Fund IPA International Procurement Agency IPM Integrated Pest Management IRR Internal Rate of Return JFPR Japanese Fund for Poverty Reduction LST Labour Saving Technology M&E Monitoring and Evaluation MAFF Ministry of Agriculture, Forestry and Fisheries MDGs Millennium Development Goals MEF Ministry of Economy and Finance MFI Micro-finance Intermediary MIS Management Information System MOI Ministry of Interior MOWA Ministry of Women’s Affairs MOWRAM Ministry of Water Resources and Meteorology MRD Ministry of Rural Development MVF Most Vulnerable Family NAL National Agricultural Laboratory NCDD National Committee for Sub-National Democratic Development NCDDS NCDD Secretariat NGO Non-Governmental Organization NIPMP National Integrated Pest Management Programme NLU Nong Lam University (Ho Chi Minh City) NPDD National Programme for Democratic Development NPV Net Present Value NSDP National Socio-economic Development Plan O&M Operation and Maintenance PASP Provincial Agriculture Strategic Plan PBCRG Performance Based Climate Resilience Grant PDA Provincial Department of Agriculture PDOWA Provincial Department for Women’s Affairs PDRD Provincial Department for Rural Development PIM Project Implementation Manual PM Procurement Management PPF Project Preparation Facility PRWRAM Provincial Department for Water Resources and Meteorology RAU Royal Agricultural University RIF Rural Infrastructure Fund RIMS Results and Impact Management System RPRP Rural Poverty Reduction Project in Prey Veng and Svay Rieng RULIP Rural Livelihoods Improvement Programme in Kratie, Preah Vihear and Ratanakiri SA Social Assessment SAW Strategy for Agriculture and Water SNEC Supreme National Economic Council SOP Standard Operating Procedures SICRG Specific Investment Climate Resilience Grant TA Technical Assistance TOR Terms of Reference TOT Training of Trainers TSSD Tonle Sap Poverty Reduction and Smallholder Development Project UNCT United Nations Country Team UNDAF United Nations Development Assistance Framework US United States USAID United States Agency for International Development UXO Unexploded Ordinance VAHW Village Animal Health Worker VEW Village Extension Worker WB World Bank WFP World Food Programme

EXECUTIVE SUMMARY

ASPIRE has been designed as a national programme and the policy and capacity development components will have a national scope. The Provincial Sub-Prgrammes and Climate Resilient Infrastructure activities are now being piloted in five provinces, namely Battambang, Kampong Cham, Kratie, Preah Vihear and Pursat, with an expansion to at least five of the PADEE provinces and three other provinces in 2018, to be identified by Mid-Term Review and contingent upon mobilization of additional funds.

ASPIRE’s Goal and Programme Development Objective has remained the same since it was adopted in 2015. The Goal of ASPIRE is the same Goal of the Results-Based – Country Strategic Opportunities Programme, i.e. “reduced poverty and increased resilience of poor and vulnerable smallholder farmers in Cambodia,” with the following two indicators, their level of achievement at the baseline and the targets for the end of the Programme:

Indicators Baseline Values End of the Programme Values2 Average households Total Values = 1,588,808,905 US$1,343 (15% increase from agricultural production value Riels of 340 households baseline). of 120,000 target households surveyed; increased by 15% Average household production = 4,672,965 Riels = US$1,168 Value of household assets Total Value of Household US$2,846 (increased by 25% increased by 25% (including Assets = 3,096,225,000 Riels or US$2,277 + 25%). for climate vulnerable Average per households = households) 9,106,544 Riels = US$2,277

The Programme Development Objective that contributes to the Goal is: “By 2021, an enhanced Cambodian model of agriculture service is demonstrated as effective for assisting a diversity of smallholder farmers to contribute to broad-based economic growth through profitable and resilient farm businesses and is adopted as a policy.”

It was understood by the Programme Management Team from the PDO that the Program will “have an enhanced CMAE (Cambodian Model for Agricultural Extension) by year 2021, through the development and testing of innovative models for agricultural technology transfer and application aimed to generate additional farm income among smallholder farmers in high value markets with a potential for scaling up. Although the PDO indicator states that “An evidence based Cambodian Model for Agricultural Extension Services is defined in policy and services and are fully financed by Programme Budget by 2021,” still the Programme’s key performance indicators need to be measured in terms of the following: (a) percentage increase in farmer’s income, particularly of resource poor farmers through participation in resilient farm businesses; (b) RGC’s investment, in

2 SBK Research and Development, “Interim Report 1 – Baseline Survey Cohort 1,” April 2017.

6 terms of Programme Budget, in private company-farmer partnership models nationally; and (c) success factors and constraints for PPP model (as in private company-farmer models) identified.

Farm business profits: At baseline stage there are very few HHs engaged in agriculture businesses (only 30 HHs). Profits from each of these businesses were valued at 190,125,200 Riels or average profit per household of 6,337,507Riels (US$1,584). The project logframe does not stipulate any specific percentage increase but it would be hoped that, not only will profits increase, but that more HHs may engage in such agriculture businesses.

Contribution of ASPIRE to Rural Livelihood and Food Security: The contributions of ASPIRE as a programme to rural livelihood and food security in Cambodia were extensively reviewed by the Secretariat in 2016, as well as in the first semester (January to June) of 2017. The critical mandate of ASPIRE, aside from its Goal and PDO is to boost agricultural production as well as contribute to rural livelihood and food security. In order to achieve the Goal and PDO, the programme implementation strategies of the ASPIRE were further identified to include a reorganized and revitalized agricultural extension system, an effective farm input distribution system, an autonomous analytical and management unit, a rigorous and innovative monitoring system and joint national and provincial responsibility for management and implementation. In addition, the components of ASPIRE which constitute the vehicle for achievement of the goals and programme development objective are now being shaped through improved frameworks for crop production, on-farm adaptive research, farm input distribution, farmer training, media support, infrastructural development, and staff development. The activities being carried out by the provincial programmes were noted to have made remarkable success in the agricultural and rural landscape in Cambodia. The projected achievements and impact of the ASPIRE were identified to be in the area of a revitalized extension service, local capacity building, rural infrastructural development, targeted input distribution, technology development, improved technology transfer and adoption, as all contributing to improved rural livelihoods and food security.

Narrative Key Performance Achievements and Results Summary Indicators Goal: Reduced . Average household Baseline:5 Baseline values and target indicator values for Poverty and agricultural production the end-line survey was calculated to have reached an Increased value of 120,000 average of $1,168 (from 340 households interviewed Resilience of Poor targeted households undertaking rice production, cash crop growing, and Vulnerable increased by 15%3 vegetable growing, fruit production, fish/fish raising, and Smallholder . Value of household livestock production), or with an increase of 15% at the Farmers in assets of increased by end-line of $1,343. On the other hand for the value of Cambodia 25% (including for household assets, the total value gathered by the survey climate-vulnerable team of all household assets was 3,096,225,000 Riels, households)4 giving an average per household of 9,106,544 Riels per household or US$2,277 at the baseline, and US$2,846 (baseline plus 25%) for the end-line target. Current: ASPIRE’s activities and strategies toward modernization of agriculture in the country would help to sustain agricultural productivity in the long run. Employing more than half of Cambodia’s labor force, agriculture has contributed significantly to poverty reduction. But high reliance on rain-dependent rice production, slow adoption of quality seeds and inadequate agricultural extension services and irrigation facilities remain key constraints in the sector. Diversifying to less water intensive crops, developing the agribusiness and agro-processing industry, promoting a modernized value chain and cost effective logistics are crucial to put agriculture back on a higher growth path. Several surveys and studies are currently being conducted to determine the extent of achievement of the Programme’s Goal in quantitative terms. Upon completion, the growth rates will be established and reported in the next reporting period.

3 Targets are relative to a control group and to be achieved by end of programme unless otherwise stated 4 Households assets taken as a proxy for resilience 5 SBK Research and Development (April 2017). Interim Report 1 – Baseline Survey Cohort 1.

7 Narrative Key Performance Achievements and Results Summary Indicators Programme . An evidence based Baseline: The Ministry of Agriculture, Forestry, and Development Cambodian Model of Fisheries approved and published a new Agriculture Objective: By 2021 Agriculture Extension Extension Policy in 2015. An implementation framework an enhanced Services is defined in and guidelines has been drafted to support roll out of the Cambodian model policy and services policy. ASPIRE is still in the process of finalizing the of agriculture are fully financed by Framework and Guidelines in implementing the services is Programme Budget Agricultural Extension Policy of the Government that will demonstrated as by 2021. assist in development of the implementation and effective for generate evidence to refine extension policies and assisting a diversity practice that will pave the way for the further development of smallholder of the agricultural sector in the country. farmers to contribute to broad- Current: The development of an evidence-based based economic Cambodian Model of Agriculture Extension (CMAE) growth through Services is still developed using several policy profitable and documents that underlines the importance of improving resilient farm extension services to farmers. The aim of these extension businesses and is services is to improve the living conditions of the farming adopted as policy. families by providing technical advice and by supporting them in processes aimed at developing and applying better agricultural techniques. ASPIRE is designed to respond to the need of a strengthened system of agricultural extension. This will be especially targeted at the district level, where extension workers pass on technical skills and knowledge to farmers. In addition, the programme aims to strengthen the leadership and management skills of the Provincial Department of Agriculture (PDA) and District Offices of Agriculture (DOA).ASPIRE will also provide extension workers (both state and non-state extension service providers) access to quality materials that can support them in their day to day practice. Within the MAFF, the Department of Agricultural Extension (DAE) is the key stakeholder in the intervention of ASPIRE. The operational partners of ASPIRE are the Provincial Departments of Agriculture Forestry and Fisheries(PDAFF) in the five provinces and the DOA. Primarily the extension workers at the district level are the direct target group in the process of capacity development. Their methodological and technical skills will be further strengthened.

This Semi-Annual Report for 2017 also provides the achievements towards meeting programme components, outcomes and outputs, as well as documents the results for financial management and procurement.

Attempts were also made by various operating units to identify the risks involved in programme implementation, as well as the strategies to mitigate the risk. Lessons learned were also provided including the action steps in going forward.

In the annexes, the Agreed Action Steps and Recommendations by the IFAD Implementation Support Mission, and the Compliance with Financing Covenants of the Loan and Grant Agreement with IFAD were presented.

I. PROGRAMME DESCRIPTION

A. Background of the Programme ASPIRE has been designed as a national programme and the policy and capacity development components will have a national scope. The Provincial Sub-Prgrammes and Climate Resilient Infrastructure activities are now being piloted in five provinces, namely Battambang, Kampong Cham, Kratie, Preah Vihear and Pursat, with an expansion to at least five of the PADEE provinces and three other provinces in 2018, to be identified by Mid-Term Review and contingent upon mobilization of additional funds. The ASPIRE is being overseen by a Steering Committee (SC) co-chaired at Secretariat of State level by Ministry of Economy and Finance (MEF) and Ministry of Agriculture, Forestry and Fisheries (MAFF), and with representation from Cambodia Agricultural Research and Development Institute (CARDI), Supreme National Economic Council (SNEC), National Committee for Sub-National Democratic Development Secretariat (NCDDS) and the Ministry of Environment (MoE) as well as participating provinces together with limited number representatives of development partners, civil society (farmer organization) and the private sector. The Ministry of Agriculture, Forestry and Fisheries (MAFF) is the Executing Agency (EA) which will be responsible for overall aspects of the programme management, coordination and reporting and line departments of MAFF are undertaking the majority of technical and work at national and sub- national levels. SNEC has been charged for policy research and analysis (Sub-Component 1.2). NCDDS, on the other hand, is the implementing agency for Component 4. Provincial Sub- Programme is being implemented by the five Provincial Departments of Agriculture (PDA). District Administrations are the recipients of the Climate Resilience Grants (from NCDDS) and will either implement directly or through sub-grants to the Commune Councils. The Commune Councils are contracting the Commune Extension Workers (CEWs) and play an important role in coordination and monitoring of extension services delivery. ASPIRE has been aligned with the Programme Budget of MAFF. This alignment is currently being managed by the ASPIRE Secretariat reporting to the Programme Director and is being accomplished through a phased approach. In the foundation phase, the ASPIRE results framework has been cross-referenced to relevant outputs and activities of the Programme Budget and pilot Provincial Sub-Propgrammes. ASPIRE supports selected sub-programmes of the Programme Budget. Through the Programme Budget, ASPIRE finances activities of MAFF technical agencies including but not limited to the General Directorate of Agriculture, the Department of Animal Health and Production and the Provincial Department of Agriculture. Total estimated project costs of ASPIRE amounted to US$82.3 million over seven years 2015-21, including US$4.1 million of contingencies. The financing of the ASPIRE is through a loan from IFAD of US$26.1 million, a grant (financed through IFAD by ASAP) of US$15.0 million, Government contribution of about US$11.4 million of which US$3.0 million represents taxes, a grant from i3E to IFPRI of US$ 0.9 million, activities financed by USAID of US$0.33 million and a further US$12.4 million to be mobilised from additional partners. Contributions in kind of US$5.8 million from project beneficiaries, US$7.2 million from sub-national administrations and US$3 million from private partners are assumed in the total figure. The ASPIRE Programme is being managed by a MAFF Secretary of State as Programme Director. The Programme Director is supported by two Programme Managers within MAFF (responsible for (a) extension, technology and research, and (b) programme budgeting, respectively) and a Programme Manager within NCDD-S. The Programme Manager – Extension, Technology and Research is the Director General of the General Directorate of Agriculture, MAFF. The Programme Manager – Programme Budgeting is the Director of the Department of Planning and Statistics, MAFF. The Programme leadership team includes the Team Leader of the Decentralized Advisory Team who is also working as the ASPIRE Programme Advisor. The Programme has four main components: (i) Evidence-based Policy Development, (ii) Capacity Development for Extension Services, (iii) Improved Extension Services, and (iv) Infrastructure Supporting Climate Resilient Agriculture.

B. Goals and Objectives Since the beginning of the Programme in 2015, the goal of the Programme has not been changed, i.e. “to reduce poverty and increase resilience of poor and vulnerable smallholder farmers in Cambodia.” On the other hand, the Programme’s development objective is that “by 2021 an enhanced Cambodian model of agriculture services is demonstrated as effective for assisting a diversity of smallholder farmers to contribute to broad-based economic growth through profitable and resilient farm businesses and is adopted as policy.” This will be achieved through three outcomes which are interdependent: (1) a national investment programme that can be supported by multiple donors is designed to implement an updated extension policy that provides smallholder farmers with access to quality information services; (2) the Ministry of Agriculture, Forestry and Fisheries (MAFF) has institutional and human resources capacity to manage an effective, demand driven system linking researchers and knowledge-based agencies to extension agents in public sector, private sector and civil society and to farmers; and (3) at least 120,000 smallholders have improved and resilient farm businesses as a result of integrated, demand led extension services and investments in climate resilient infrastructure. C. Programme Area and Target Population Programme Area. ASPIRE is a national programme. The Borrower/Recipient has selected five pilot provinces. Subject to satisfactory progress, the Programme will expand into the five target provinces of the ongoing Programme for Agricultural Development and Economic Empowerment (PADEE) when it ends in 2018, plus three additional provinces to be identified by Mid-Term Review. The selected pilot provinces are Battambang, Kampong Chhnang, Kratie, Preah Vihear and Pursat. The five PADEE provinces are Kampong, Kandal, Prey Veng, Svay Rieng and Takeo Target Population. The target beneficiaries of the Programme are productive poor and vulnerable smallholders. Farmers in this group produce for the market as well as for own consumption and can invest small amounts in improving production. D. Programme Components The Programme has the following four main components: 1. Component 1: Evidence Based Policy Development supports the definition and adoption in policy of the Cambodia Model for Extension Services and resource mobilisation for a programme based implementation approach. This component will demonstrate an improved and inclusive policy process. A framework for mobilisation of resources to support extension in a Programme Based Approach will be a key output of the policy process. This component will have two sub-components: (a) Sub-Component 1.1: Policy Coordination and Development, which includes coordination, policy drafting and resource mobilisation activities. (b) Sub-Component 1.2: Policy Research and Analysis. The Supreme National Economic Council (SNEC) will build on its role of high-level policy advice by establishing an Analytic Unit for the Agriculture Sector, conducting or commissioning policy studies and trials in collaboration with the International Food Policy Research Institute (IFPRI), and formulating evidence-based policy recommendations. 2. Component 2: Capacity Development for Extension Services is being implemented through two sub-components focused on institutional development and strategic human resources respectively. (a) Sub-Component 2.1: Improving Extension Quality and Knowledge Management assists MAFF to improve the definition of roles and responsibilities of different agencies and to establishes an Extension and Research Advisory Board overseeing an Extension Hub within the General Directorate of Agriculture. (b) Sub-Component 2.2: Strengthening Human Resources for Extension supports a Human Resources Development Strategy, strengthens the skills of extension staff in key strategic areas including leadership and adult learning methods, and support academic

10 education in extension for full-time students and for serving field personnel including Commune Extension Workers (CEWs). 3. Component 3: Improved Extension Services will pilot Provincial sub-programmes within the MAFF Programme Budget framework, finance grants for piloting and testing innovative approaches to extension and support a mass media extension campaign. This component will have three sub-components: (a) Sub-Component 3.1: Provincial Sub-Programmes is being implemented within the Programme Budget structure of MAFF. An improved Provincial Agriculture Strategic Plan will be prepared through inclusive dialogue. Provincial Departments of Agriculture will allocate grant funds to extension services with a mix of comparative models including public sector service delivery, a farmer-to-farmer extension model supported by the CEWs, public-private partnerships and contracting out. Where appropriate, existing farmer organisations and cooperatives will be the basis for Smallholder Learning Groups (SLGs) and will play a major role in the famer-to-farmer learning networks. (b) Sub-Component 3.2: Innovations for Climate Resilient Agriculture supports demonstration and testing of promising innovations under smallholder farm conditions. Suitable technologies may include improved on-farm water management, adjustments to the cropping calendar , introduction of new crops/varieties with a potential to improve climate resilience. (c) Sub-Component 3.3: Mass Media Campaign on extension activities include climate change awareness and will promote climate smart agriculture. Activities will include: (i) radio broadcasts (ii) an educational television show with an entertaining, competition- based format and (iii) a mobile feedback show engaging farmers in discussion about the programmes. 4. Component 4: Infrastructure Supporting Climate Resilient Agriculture: This component scales up a model successfully piloted by the National Committee for Sub-National Democratic Development (NCDD) in which Districts develop Climate Resilience Strategies and Performance Based Climate Resilience Grants. Eligible expenditures will be the additional costs of climate proofing productive infrastructure or constructing climate adaptive infrastructure. Investments will be identified by the Commune Councils from their development plans and the non-climate related costs will be financed by the Commune-Sangkat Fund. Districts meeting performance targets will receive three annual PBCR Grants in increasing amounts and will become eligible for one Special Programme Climate Resilience Grant to finance a larger investment.

E. Implementation Arrangements 1. Lead Programme Agency. MAFF is the Lead Programme Agency under the overall coordination of the Ministry of Economy and Finance (MEF). 2. Programme Steering Committee. The Programme Steering Committee (SC) is being co- chaired at Secretary of State level by MEF and MAFF, and with representation from the Council for Agriculture Rural Development (CARD), the Supreme National Economic Council (SNEC), the NCDD Secretariat (NCDD-S) and the Ministry of Environment (MoE) as well as participating provinces together with representatives of development partners, civil society (farmer organisations) and the private sector who will be appointed for not less than one year. For effective work and decision-making the total membership of the SC should not exceed 20 persons. 3. Programme Staff. The Programme is headed by a MAFF Secretary of State as Programme Director. The Programme Director is being supported by two Programme Managers within MAFF responsible for (a) Extension, technology and research, and (b) Programme Budgeting, respectively) and one Programme Manager within NCDD-S. The Programme Manager - Extension, Technology and Research is the Director General of the General Directorate of Agriculture, MAFF. The Programme Manager - Programme Budgeting - is the Director of the Department of Planning and Statistics, MAFF. The key staff of the Programme has been recruited by the Government and have be appointed after receiving the non-objection from IFAD.

11 4. The Programme Director oversees a dedicated ASPIRE Secretariat comprised of the following: (a) a Secretariat Support Team (SST) of contracted staff that have been primarily focused on programme management aspects of the ASPIRE programme itself, and, (b) a Decentralized Advisory Team (DAT) members have been contracted to primarily focus on capacity building of central and provincial departments of MAFF related to performance based programme budgeting and management, agriculture and extension related issues under Components 2 and 3 and policy research under Component 1. 5. The ASPIRE Secretariat has been tasked to undertake programme management, coordination and monitoring and evaluation tasks, as well as implementation of sub-component 1.1 (Policy Coordination and Development). The Secretariat has been staffed by about 10 full- time contracted staff selected on the basis of merit, experience and potential to learn fast. Through the Programme Budget mechanism, the ASPIRE Secretariat has been coordinating the work plans of the technical agencies, principally the General Directorate of Agriculture and Department of Animal Health and Production at national level and the PDA. MAFF agencies and line departments will undertake the majority of technical work at national and sub-national levels under Components 1, 2 and 3. 6. SNEC. The mandate of SNEC is to provide policy advice to the senior leadership of RGC. SNEC consists of senior officials of MEF and other Ministries supported by a Secretariat. The role of SNEC in ASPIRE will add to the policy dialogue and link ASPIRE to senior policy-making levels of Government. SNEC participation in ASPIRE in turn will enhance the capacity of RGC to formulate policy in the agriculture sector. 7. NCDD-S. The primary role of NCDD-S in the Programme shall be implementation of Component 4. NCDD-S will also assist in facilitating cooperation with Provincial and District administrations, particularly for planning purposes and co-financing of the CEW position through the Commune budget. 8. The PDA has been the implementing agency for the Provincial Sub-Programmes (PSP). PDA will be responsible for preparation of the annual budget for the PSP which will be consolidated into the Programme AWPB. Under the PSP, PDA will allocate funds to support activities of DAO, contracting-out arrangements, public-private partnerships and CEW. PDA will be responsible for monitoring all PSP activities and will be accountable for results.. The Programme will build permanent capacity in DAO. The intention is to phase in the Programme at a rate which does not exceed the capacity of PDA to assign staff to the DAO.

12 II. SUMMARY OF ACHIEVEMENTS AND RESULTS

A. Progress Towards Meeting the Programme Development Objective

Indicators Baseline Values End of the Programme Values6 Average households Total Values = 1,588,808,905 US$1,343 (15% increase from agricultural production value Riels of 340 households baseline). of 120,000 target households surveyed; increased by 15% Average household production = 4,672,965 Riels = US$1,168 Value of household assets Total Value of Household US$2,846 (increased by 25% increased by 25% (including Assets = 3,096,225,000 Riels or US$2,277 + 25%). for climate vulnerable Average per households = households) 9,106,544 Riels = US$2,277

The key performance indicators that will have to be measured from the baseline to the end of the Program, as part of the impact assessment are based on the following:  Average household’s agricultural production value of targeted households increased by 15%;  Value of household assets increased by 25%; and  Smallholder farm businesses with increased profits.

Value of Household’s Agricultural Production: For the baseline values, SBK Research and Development Team took the figures from the agricultural production of at least 340 sampled households from six sources:  Rice production;  Cash crop growing;  Vegetable growing;  Fruit production;  Fishing/fish raising; and  Livestock production. As provided in part 5 of their report, the produce from the above activities was valued by applying the average sales price for each type of produce to the total produced for all crops (rice, cash crops, vegetable growing and fruit production). For fishing/fish raising the net income was used as the value of production as there was no data available for size of fish catches. Livestock production value was calculated as the total net income plus the value of animal eaten (again, applying the average sales price for each animal to the numbers of animals consumed by the HH). Using this calculation method, the base values and the target indicator values for the endline (EL) survey are as follows:

6 SBK Research and Development, “Interim Report 1 – Baseline Survey Cohort 1,” April 2017.

13 Production activity Total value # HHs Average Average in EL Target: 15% per HH USD increase Rice production 983,445,192 301 3,267,260 $ 817 $ 939 Cash crop growing 87,699,538 97 904,119 $ 226 $ 260 Vegetable growing 88,309,872 116 761,292 $ 190 $ 219 Fruit production 24,217,358 42 576,604 $ 144 $ 166 Fish/fish raising 28,698,500 48 597,885 $ 149 $ 172 Livestock production 376,437,636 296 1,271,749 $ 318 $ 366 Total 1,588,808,095 340 4,672,965 $ 1,168 $ 1,343

Value of HH assets: SBK Research and Development Team has estimated the total value of household assets visited to have reached 3,096,225,000 Riels, giving an average per household of 9,106,544 Riels per household ($2,277). Using this as a reference, the indicator for the end-line survey will have to be $2,846 (or from $2,277 plus 25% increase). The same package of assets will be used again during the endline survey to enable comparison of numbers and value. But two additional questions will be included to capture possible added investment in HH assets – these are: • Expenditure on house improvements (or purchase of new house buildings) over the last three years (this can be divided into segments such as roofing, walls, floors, toilet construction etc. which can be double checked against the answers to the type and size of housing) • Expenditure on any new assets over the last three years that were not included in the package of assets on the baseline survey form

Farm business profits: At baseline stage there are very few HHs engaged in agriculture businesses (only 30 HHs). Profits from each of these businesses were:

Agriculture businesses Profit in 2016 # HHs Profit/HH Profit in USD EL Target Rice milling 80,566,000 8 10,070,750 2,518 No specific % Trading in agriculture produce 66,500,000 8 8,312,500 2,078 has been Trading in agriculture inputs 6,500,000 1 6,500,000 1,625 defined in the Vegetable processing 11,140,000 2 5,570,000 1,393 TOR so any Fruit processing 16,226,200 4 4,056,550 1,014 increase is Palm tree products 9,193,000 7 1,313,286 328 considered Total 190,125,200 30 6,337,507 1,584 successful

The project logframe does not stipulate any specific percentage increase but it would be hoped that, not only will profits increase, but that more HHs may engage in such agriculture businesses.

Caution on project indicators: The SBK Research and Development Team considers that the first two indicators above may be very ambitious for a relatively short (three-year) project intervention. Regarding assets: it was noted in the previous paragraph that asset values are quite high compared to values from other surveys conducted (e.g. the PADEE project). Some HH assets may be new and thus of high value; such assets, if not replaced by others in the next two year, will depreciate in value over the next few years. Rice production contributes the largest share of agriculture production value. The data discussed in the previous chapter noted that rice yields for lowland wet season rice (the main type of rice grown) were high compared to the national average (see note below). Thus there may be limited scope to achieve higher yields. The high rate of natural disasters that are occurring is also a concern for the value of agriculture production. It should also be noted that MAFF uses only 0.17% as their goal for annual rice yield increases. With such modest increases in rice yields, it would take a large increase in rice prices (which is unlikely) to achieve a 15% increase in the value of rice production.

Table 2.1: Achievements Towards Programme Goal and Programme Development Objective Narrative Key Performance Achievements and Results Summary Indicators Goal: Reduced . Average household Baseline:9 Baseline values and target indicator values for Poverty and agricultural production the end-line survey was calculated to have reached an Increased value of 120,000 average of $1,168 (from 340 households interviewed Resilience of Poor targeted households undertaking rice production, cash crop growing, and Vulnerable increased by 15%7 vegetable growing, fruit production, fish/fish raising, and Smallholder . Value of household livestock production), or with an increase of 15% at the Farmers in assets of increased by end-line of $1,343. On the other hand for the value of Cambodia 25% (including for household assets, the total value gathered by the survey climate-vulnerable team of all household assets was 3,096,225,000 Riels, households)8 giving an average per household of 9,106,544 Riels per household or US$2,277 at the baseline, and US$2,846 (baseline plus 25%) for the end-line target. Current: ASPIRE’s activities and strategies toward modernization of agriculture in the country would help to sustain agricultural productivity in the long run. Employing more than half of Cambodia’s labor force, agriculture has contributed significantly to poverty reduction. But high reliance on rain-dependent rice production, slow adoption of quality seeds and inadequate agricultural extension services and irrigation facilities remain key constraints in

7 Targets are relative to a control group and to be achieved by end of programme unless otherwise stated 8 Households assets taken as a proxy for resilience 9 SBK Research and Development (April 2017). Interim Report 1 – Baseline Survey Cohort 1.

15 Narrative Key Performance Achievements and Results Summary Indicators the sector. Diversifying to less water intensive crops, developing the agribusiness and agro-processing industry, promoting a modernized value chain and cost effective logistics are crucial to put agriculture back on a higher growth path. Several surveys and studies are currently being conducted to determine the extent of achievement of the Programme’s Goal in quantitative terms. Upon completion, the growth rates will be established and reported in the next reporting period. Programme . An evidence based Baseline: The Ministry of Agriculture, Forestry, and Development Cambodian Model of Fisheries approved and published a new Agriculture Objective: By 2021 Agriculture Extension Extension Policy in 2015. An implementation framework an enhanced Services is defined in and guidelines has been drafted to support roll out of the Cambodian model policy and services policy. ASPIRE is still in the process of finalizing the of agriculture are fully financed by Framework and Guidelines in implementing the services is Programme Budget Agricultural Extension Policy of the Government that will demonstrated as by 2021. assist in development of the implementation and effective for generate evidence to refine extension policies and assisting a diversity practice that will pave the way for the further development of smallholder of the agricultural sector in the country. farmers to contribute to broad- Current: The development of an evidence-based based economic Cambodian Model of Agriculture Extension (CMAE) growth through Services is still developed using several policy profitable and documents that underlines the importance of improving resilient farm extension services to farmers. The aim of these extension businesses and is services is to improve the living conditions of the farming adopted as policy. families by providing technical advice and by supporting them in processes aimed at developing and applying better agricultural techniques. ASPIRE is designed to respond to the need of a strengthened system of agricultural extension. This will be especially targeted at the district level, where extension workers pass on technical skills and knowledge to farmers. In addition, the programme aims to strengthen the leadership and management skills of the Provincial Department of Agriculture (PDA) and District Offices of Agriculture (DOA).ASPIRE will also provide extension workers (both state and non-state extension service providers) access to quality materials that can support them in their day to day practice. Within the MAFF, the Department of Agricultural Extension (DAE) is the key stakeholder in the intervention of ASPIRE. The operational partners of ASPIRE are the Provincial Departments of Agriculture Forestry and Fisheries(PDAFF) in the five provinces and the DOA. Primarily the extension workers at the district level are the direct target group in the process of capacity development. Their methodological and technical skills will be further strengthened.

B. Achievements Towards Meeting Programme Components, Outcomes and Outputs The outputs and activities of ASPIRE are organized into four components: Knowledge-based policy; Capacity Development for Extension Services; Improved Extension Services; and Climate Resilient Productive Infrastructure. These components are mutually interdependent: outputs in one component may be contingent on achievement of outputs in another, and the outcomes will be achieved through the combined effect of all components. Effective management of knowledge, communications, and monitoring and evaluation have been considered as essential to the success of this approach and are being coordinated by the ASPIRE Secretariat. The ASPIRE communications strategy has been integrated into all components and has been supported by specialists based at the Secretariat.

16 1. Component 1: Knowledge Based Policy

The Outcome of Component 1 will be a national programme implementing an updated extension policy and supported by multiple donors that provides smallholder farmers with access to quality information services. It is expected that the policy and programme will provide an incentive framework for the synergies between actors engaged in delivery and use of extension services. The extension policy and policy instruments to be developed under Component 1 will be formulated within a framework of key principles for farmer-led extension integrating the roles of the public sector, private sector, and civil society. The ASPIRE aims to provide clearer guidance on critical issues determining which model of extension delivery works best in different contexts and for different categories of farmers. Based on the resultant policy guidance, a medium-term framework for resource allocation and investment prioritization will be developed, integrating the requirements of the recommended service delivery models with climate resilient agriculture for Cambodia’s distinct agro-ecological zones. The framework will also refer to recent research and strengthened market and value chains analysis supported by ASPIRE or other agricultural development interventions .

Table 2.2: Achievements Towards Meeting Component 1 Outputs Sub-Components Output Indicators Targets for 2016/2017 Current Status

1.1 Policy Coordination By 2016, an extension  Finalize the definition of  MAFF published its and Development policy framework is Roles and Responsibilities in new Agricultural approved that identifies a Extension for relevant Extension Policy in As designed, this sub- clear role for MAFF and institutions, provincial/ Cambodia in April component supports key partners, provides municipality agriculture 2015, promoting coordination of the policy strategic guidance to departments and district/khan pluralistic extension development process by MAFF programmes and agriculture offices. services with the ASPIRE Secretariat, activities and targets  Dissemination workshop on increasing roles for including support to the public support at those roles and responsibilities in other stakeholders. ASPIRE Steering most in need and who Extension.  Completed draft Committee, an Annual can benefit from advice.  Establishment and Meetings guidelines on roles Policy Forum on of the Extension Research and responsibilities in Extension, a feasibility and Advisory Committee. extension. Final study on a resource Guidelines on Roles mobilisation framework and Responsibilities in and several policy Extension was workshops. endorsed in August 2016.  The MAFF Minister issued Decision No. 323 dated 6 June 2016 to establish AEAC and NSTAC. AEAC conducted its first meeting on 24 June 2016, participated by 19 people. The Meeting was chaired by H.E. Dr. Ty Sakhun. AEAC and NSTAC commenced implementing their roles. Sub-Component 1.2 - An Analytical Unit for  Establish an Analytical Unit  Decision to establish Policy Research and Agriculture Sector will be  Annual Policy Forum on Analytical Unit at Analysis established within SNEC. Extension SNEC has been Through a learning by  Survey Behaviour of issued. doing approach and Farmers on Demand and  The first year of the particularly the Supply of Extension ASPIRE baseline experience of Services. study included a implementing and  Review institutional module on extension analysing a structure extension services. services known and programme of policy used by households

17 Sub-Components Output Indicators Targets for 2016/2017 Current Status

studies, ASPIRE will  Organizing stakeholders’ and services that they contribute to the long- consultation events. would find useful. term capacity  Organize seminars to Further studies are development of SNEC in discuss drafted study planned in 2017. this area. papers, validation of  Other targets are still assumptions and policy to be met. conclusions.  Operation/upgrading of SNEC webpage.

2. Component 2: Capacity Development for Extension Services

Within the past six months, DAE/GDA has achieved activity work plans against with AWPB 2017 as in the below table:

Table 2.3: Achievements Towards Component 2 Outcome and Outputs Outputs Indicators Targets 2017 Current Status % Completed Outcome 2: MAFF has institutional and human resources capacity to manage an No effective, demand driven system linking researchers and knowledge-based agencies to quantifiable extension agents in public sector, private sector and civil society and to farmers achievements Component 2.1: A. Establishment of the Extension Research and Advisory Board - # of AEAC meetings - 4 Agriculture - AEAC and NSTAC back to 25% - # of NSTAC Extension Advisory back meeting was organized meetings Committee (AEAC) on the 10th March 2017, with - # of meetings of meetings will be 31 participants (7 of which Sub-Working Group organized. were female). The meeting on Extension - 4 National Sub- noted and adopted structure, Technical ToR and operation plan of Agriculture extension hub, and adopted Committee (NSTAC) Roles and Responsibilities of meetings. Agriculture Extension in - 4 Sub-Working Cambodia. Group on Extension - 2 meetings of the Sub- 50% meetings Working Group on Extension with 60 participants (8 females) were conducted. Component 2.1: B. Definition of Roles and Responsibilities in Extension - # of dissemination - 1 dissemination - The Roles and 80% workshop workshop will be Responsibilities of organized Agriculture Extension in Cambodia approved by AEAC and ASPIRE Program Director, and the document to be approved by MAFF Minister. - The document was translated in English. - The dissemination workshop will be conducted at the second week of August 2017. Component 2.1: C. Extension Hub 1. Development of Farmer Demand Assessment and Extension Service Planning - # of national - 1 national workshop - Conducted a validation 80% workshops with with AEAC, NATC, meeting with DAE and TAs AEAC, NATC, PDAFF to review to present farmers tracking PDAFF data collection tools and document system (farmer management system with 11 tracking tool) participants (3 females).

18 Outputs Indicators Targets 2017 Current Status % Completed - # of workshops with - 5 provincial - Will take place in August 0% PDAFF workshops to review 2017 the data collection methodology/ training - # of consultation - 3 consultations - Completed 2 consultation 70% workshops workshops on workshops, with 13 Extension hub participants (4 females), on operation and data quality and on feedback Extension hub operation and feedback with GDA/DAE, TAs team.

- # of trainings on - 5 rollout the - Extension portal established 100% extension web portal extension with full document Portal/training management system and pilot farmer tracking tool (results of FNA and service provider registry) - Training to 7 Extension Hub Team members (2 females) completed - # of training on - 1 rollout the - Seven (2 females) GDA- 90% Extension Hub Extension DAE counterpart trained in Hub/training operating Document Management System and pilot Farmer Tracking Tools (results of FNA and service provider registry) and system available online. Translation of technical key words is still pending. 2. Integration of Existing content - # of materials - 150 materials - 70 out of 150 materials 47% collected collected and (approx. 47%) were - # of materials reviewed and reviewed and selected for reviewed uploaded on the the extension web portal. extension web portal - # of validation - 4 validation - Completed 1 one-day 16% workshop workshops on validation workshop with 33 review existing participants (5 females) from materials GDA/DAE, PDAFF, IDOC/RUA, PLNCA, NGOs, and CESEAN. - # of Digitalization of - 1 Firm contracting - In the process of 10% hard copy out procurement (contracting out)

3. Development of New Extension Materials - # of validation - 1 validation - Completed 1 one-day 100% workshops for workshop for validation workshop and training modules training module validated guideline for Extension materials development and guideline for extension materials development training course with 6 participants (1 female) from DAE and TA. - Finalized Guideline for Extension materials development and guideline for extension materials development training course.

19 Outputs Indicators Targets 2017 Current Status % Completed - # of trainings on - 1 training on - Completed 1 one-day 100% development of development of training course on extension materials extension materials development of extension organized material, 31 participants (7 females) from PDAFF, DAE, RUA, PLNCA, GDA, PLNCA, KPCNA, AIDOC. - # of materials - Design farmer's - Completed TORs of 30% developed calendar & consultant to write 10 recording book and booklets sent to procurement 10 technical staff. booklets. - Completed design of FFS log book, of farmer’s recording book on Farm Business Management and trained to PDAFFs and DAOs staff. - # of extension - Sufficient number of - Posters: of 4,100 posters 90% materials printed print-outs of the 5 on chicken raising, pig posters, 2 leaflets, 2 raising, fish raising, booklets for cucumber production, rice distribution. production with climate change adaptation with 4,100 units - Leaflets: printing of 100,000 leaflets on cabbage and mango production. - Booklets: printing of 11,000 booklets on rice seed varieties for paddy production and rice export and Lemon production. - 115,100 posters, leaflet and booklets and will distribution to PDAFF of 25 ASPIRE and non-ASPIRE Provinces, to RUA, to PLNCA and to GDA/DAE in first week of August 2017. - # of new extension - 50,000 materials - Planned to print 10 technical 0% materials printed printed booklets on climate resilient rice broadcasting, sweet bamboo, cassava, mung beans, orange, pomelo, pineapple, sweet corn, cashew, and green banana. 4. Training new extension materials - # of trainings on - 2 training courses - Completed 1 4-day training 50% gender on gender course on gender mainstreaming in mainstreaming in mainstreaming in agriculture agricultural agricultural extension, with 36 extension. extension participants (21 females) organized. from PDAFF, and GDA/DAE. The participants have understood the Gender Mainstreaming Policy and Strategy framework in Agriculture, the Role and Responsibilities to implement the policy and the method for enhancing Women Economic Empowerment.

20 Outputs Indicators Targets 2017 Current Status % Completed - # of TOTs for - 3 TOT-training - Will be conducted in August 0% Smallholder courses on 2017. Learning Group Smallholder Learning (SLG) organized - # of TOT training - 3 TOT training - Completed 3 4-day training 100% courses on Farmer courses on Farmer courses on FNA, with 113 Need Assessment Need Assessment participants (17 females) (FNA) organized from PDAFF.DAOs and GDA/DAE. The participants are able to identify issues, causes, solutions, and to classify the activities to respond to farmers’ needs in FFS training. - # of TOT training - 3 TOT training - Completed 3 4-days TOT 100% courses on Farmer courses on Farmer training courses on Farmer Field School and Field School and Field School and Gender Gender Role and Gender Role and Role and Women Economic Women Economic Women Economic Empowerment, with 129 Empowerment in Empowerment participants (24 females) Agriculture organized from PDAFF, DAOs and GDA/DAE. The participants are able to develop the topics for 18 weeks FFS with Climate Smart Agriculture. - # of TOT training - 5 TOT training - 5 4-day TOT training 100% courses on courses on courses organized for 123 Agriculture Agriculture CEWs (59 females). The Extension Extension participants have understood Methodology to Methodology to guidelines, methodology, CEWs. CEWs organized important training tools, participatory extension, facilitation and communication skills, local planning, participatory technology development, and monitoring and evaluation. - # of TOT training - 5 TOT training - Prepared draft guidelines 30% courses on Staff courses on Staff and concept note and the Appraisal Appraisal training will be conducted in performance performance the second week of August organized 2017. - # of TOT training - 1 TOT training - Planned to conduct in 0% courses on post- courses on Post- October 2017. harvest Harvest management Management organized. Refresher course on extension methodology for CEW - # of Validation - 1 Validation - Training workshop on 100% workshop on SLG, workshop to revise validation of SLG, FNA, FFS FNA, FFS SLG, FNA, FFS and Gender Role and guidelines, log book guidelines, log book Women Economic Empower and farmer and farmer in Agriculture guidelines and recording book recording book FFS log book, farmers’ conducted. recording book on Farm Business Management were conducted with 33 participants (4 females) from PDAFF, GDA, and DAE. These Guidelines were revised and updated for

21 Outputs Indicators Targets 2017 Current Status % Completed rolling out by PDAFF in July 2017. - # Refresher training - 1 Refresher training - Will be conducted in August 0% on FFS and Gender on FFS and Gender 2017 Role and WEE in Role and WEE in Agriculture Agriculture organized. - # of refresher - 1 refresher training - Will be conducted in 0% trainings on SLG on SLG formation. September 2017 formation. - # of refresher - 1 refresher training - Will be conducted in 0% trainings on FNA on FNA organized September 2017 - # of refresher - 5 refresher training - Planned to conduct in 0% trainings on on Agriculture September 2017. Agriculture Extension Extension Methodology Methodology organized - # of TOT trainings - TOT on Agriculture - The RUA has been 30% on Agriculture Extension for 3 conducting the TOT training Extension months (Provide by on Agriculture Extension for GDA/RUA, Prek 3 months with 30 Leap) participants (10 females) from PDAFF. This TOT also will be conducted in PLNCA on 14 August 2017. - # trainees from RUA - 32 trainees - 32 trainees have benefited 100% who understand from training and field trips. organic vegetable marketing - Status of trainee - 1 database set-up - Developed concept note for 10% database in RUA (to for ToT and e- the database and workshop record training of learning participants will be submitted by the first CEWs by RUA and week of August 2017. In PLNCA) - 1 workshop 2016, 2 trainings were - # workshop to follow conducted on organized with 120 up and support progress sharing participants. dissemination after and refresh on TOT (RUA) select topic development, networking, and marketing and entrepreneurship. 5. Outreach Activities - # of Annual - 1 Annual Extension - Planned to conduct in 0% Extension Workshop (ASPIRE November 2017. Workshops APIRE and PADEE) and PADEE organized - # of National annual - 1 National annual - Planned to conduct in 0% agricultural agricultural October 2017. extension extension exhibition exhibitions organized - # of Workshops for - 1 Workshop for - Planned to conduct in 0% Agricultural Agricultural October 2017. Extension Strategy Extension Strategy Development Plan Development Plan organized 6. Design and implementation of Quality Assurance System - # of guideline for QA - Guidelines for QA of - A draft of Extension Hub 50% of extension extension materials operation Manual was materials and and extension prepared - including overall extension service service produced. quality assurance system for produced extension hub (include QA for extension materials, extension service provision

22 Outputs Indicators Targets 2017 Current Status % Completed and providers, and FNA). The TOR for a national consultant to develop guidelines on Quality Assurance was prepared and the Consultant selected. - # of consultation - 1 stakeholder - Planned to conduct in 0% workshops for consultation and August 2017 validation of QA validation workshop for QA - # of Provincial - 5 Provincial - Planned to conduct in 0% Workshops with workshops with September 2017. PDAFF information PDAFF Information sessions sessions conducted - # of workshops to - 1 workshop to - Planned to conduct in 0% review content review content September 2017. management management guidelines guideline conducted 7. Extension Portal 100% Activities that relates to the establishment and running of extension portal are reported under sections 2.1.C and 9. 8. Design of Farmer to Farmer Learning Network - # of guidelines F2F - Guidelines for F2F - Drafted guidelines on 30% produced produced Farmer to Farmer Learning by an International Consultant however this guideline need to review and finalize by a National Consultant. - # of trainings for - 1 Training of Master - Planned to conduct in 0% mater trainers Trainers PDAFF September 2017, after staff finalization of the guidelines. 9. Technical Assistant for Extension Hub - Extension Hub - Document - Finalization of procurement 100% established Management for Extension Hub and TORs - Counterparts and System established for 7 counterparts to act as final users trained - Pilot farmer tracking the Extension Hub Team tool established - Document Management System and Extension Hub Pilot Farmer Tracking system for FNA and Registered providers ready (95%) - Validation of all the systems with DAE and PSU advisers conducted - Several presentations to AEAC, and to Support Mission - Revision of TOR and regular reporting - Training of counterparts (7) - Study on the use of IVRS produced - Finalization of the IFPRI RCT. - Guidelines for - Guideline for - TOR for a consultant to 10% implementing the implementing the develop guidelines for Policy on Policy on implementation of the Policy Agricultural Agricultural on Agricultural Extension in Extension in Extension in Cambodia and strategic plan Cambodia Cambodia of action of Agriculture Extension have been

23 Outputs Indicators Targets 2017 Current Status % Completed developed for selecting the international consultant. 10. Equipment, software and subscriptions for Extension Hub - # Equipment, Equipment and software Completed: equipment 50% software and for extension hub team: distributed to extension hub subscriptions for 7 Computer Laptops, 4 team: Extension Network attached - 1 LCD Projector, 10Power Hub storage, ICT accessories Bank, 10USB 3G Internet, (10 Power Bank, 10 3G 10USB External HDD. Modem, 10 Inverter, 1 Portable LCD, 10 External hard disk, ICT test devices (4) and sim cards, 1 LCD Projector. 5 Mobile tablet, Printer/ scanner -High Speed Scanner, Licensed Software (Video editor, GIS, Antivirus, Office furniture (12 Chairs, 1 Meeting round table, 10 desks), 3 Fireproof safe, 2 Air condition for TA room at DAE. Component 2.2: A. Human Resources Development Strategy Study - # of human resource Human Resource - A concept paper on: strategy manual Strategy for Extension competency based 30% developed agriculture extension model for Cambodia, Human Resource Structure and function were drafted. The first international consultant resigned, and thus the team already prepared the TOR for a new International Consultant who will start working in the first week of August 2017. Component 2.2: B. Training of MAFF staff - # of Training - Training curriculum - Did not select consultant 0% curriculums on on Leadership Leadership developed - # of Training - 1 Training course on - Did not select consultant 0% courses on Leadership provided Leadership provided to to MAFF/PDAFF/DAOs MAFF/PDAFF/DAOs - # of Adult Learning - Adult Learning Skills - Training of Trainer (TOT) 100% Skills training training curriculum curriculum and course curriculums developed. outline were developed. - # of Trainings of - 2 Trainings of - Completed two 2-day TOT 100% Trainers Trainers conducted. training courses, with 80 participants (20 females) from PDAFF, DAOs, MAFF, GDA/DAE, RUA, PLNCA, and KPCLA. The participants have increased knowledge of adult learning skills, especially farmers who have limited education.

- # of training courses - 1 training course for - Guidelines for Extension 100% on Extension Extension material materials development,

24 Outputs Indicators Targets 2017 Current Status % Completed material developers guideline for extension development organized materials development training course, training curriculum for extension materials development training course were developed and validated with TA and DAE teams with 6 participants (1 female), one TOT training was delivered to 31 participants (7 females) from PDAFF, GDA, DAE, RUA, PLCNCA, KPCLA, and AIDOC. - The participants have increased knowledge of agricultural extension concept, Extension materials development cycle, Techniques in effective extension materials development and of Guidelines for training course. 5. Commune Extension Worker in Service Training Course a.1. CEW Service course - curriculum including - Completed concept note on residential and e- e-learning and budget 65% learning request. - Curriculum including - The International residential and e- Consultants are in the learning. process of developing the e-

learning curriculum, which is approximately 65% completed. - 3 staff training on - Ongoing capacity building on 50% computer program, computer program, video clip video clip making, making, internet and IT for 3 internet and IT. staff (1 female). - Completed workshop on 100% - 1 Workshop on desk desk review for e-learning review for the course for Extension Worker current e-learning in Cambodia and regionally, course. with 14 participants (6 females). - 1 Training workshop - 1 Training workshop on IT 100% on IT concept concept overview integrated overview integrated in agricultural extension in agricultural education organized with 8 extension education participants (6 females). - # of meetings and is organized. workshops to - 1 workshop on the - Planned to conduct in 0% validate curriculum model of August 2017. materials e-learning on agriculture Education and extension organized. - 1 Workshop to - Planned to conduct in 0% discuss various August 2017. elements related to in-service training.

25 Outputs Indicators Targets 2017 Current Status % Completed - 1 consultation - Planned to conduct in 0% workshop on August 2017. curriculum validation. - 1 Workshop/meeting - Planned to conduct in 0% with IT expert to August 2017. adjust for eLearning model. - 1 Final workshop to - Planned to conduct in 0% arrange for the in- August 2017. service training for CEWs. - # of meetings for - 1 meeting completed. 30%% preparing course - 3 meetings materials for CEWs’ organized training - # of CEWs’ trainings - Planned to conduct in 0% through residential September 2017. - 120 CEWs and e-learning courses. b. 2. Support to e-learning by CEWs - # of Equipment for - 2 Desktops, 1 - Equipment’s to facilitate e- 90% distributed to CEWs camera professional learning have been training institution ,1 Camera Stand,1 distributed to PLNCA (2 Multi directional desktops, 1 professional Microphone camera, 1 multi microphone 50% Professional, professional, 200 USD flash 200B,1 Camera drives, 1 LCD projector, 1 Web, Cloud Delicate camera stand, 1 laser server 5 year, 2 printer, and 1 smart TV). Laptops ,1 Room 1 - The concept note and Repair,1 LCD ,1 proposed budget for 3-year Printer, 1 Smart TV. e-learning cloud service and ICT for e-learning was developed and submitted to Program Manager for approval. - # of trainings on ICT - 1 Training course on - Completed concept note on 100% Tools for e-learning ICT Tools for e- ICT tool for e-learning. learning - Completed training on ICT Tools for e-learning. Component 2.2.C. Assistance to RUA and Agriculture School - Completed concept note on - # of curriculum - Curriculum for curriculum development for Development Extension extension. developed - Curriculum Development for 100% 3 months TOT for Agricultural Extension 90% - Curriculum Outline - Curriculum outline Advisors (Completed - for 7-9 months TOT for TOT of lecturers adapting the of Agricultural Extension curriculum and using it.) Extension Specialists - Curriculum Outline for Specialists. developed development for 7-9 months TOT for Agricultural 50% - Curriculum - Curriculum Extension Specialist enhancement enhanced and  Draft outline process with RUA, updated in 15 - Curriculum enhancement PLNC, KCNC. Departments and process started in 7 with 300 lecturers Departments and 160 trained. lecturers trained to date - # of Trainings to - 6 Training to - 2 workshop/trainings to 30% validate curriculum validate the discuss the proposed materials curriculum materials curriculum and prepare conducted.

26 Outputs Indicators Targets 2017 Current Status % Completed lecturers that were identified to be trainers.

- # of trainings for - 3-day training for - The 3 days of training for 30% reproduction of reproduction of course materials is relative course materials course materials to updating and enhancing organized. academic courses for students in the Universities (RUA, PNCA, and KCNC). By the end of June, 5 training workshops were organized with more than 160 lecturers from the three schools.

- # of final year - 3 Students selected - Selected 2 students (2 - students to conduct for conducting females) at RUA. One research partnership research (RUA:2, student completed research at RUA and PLNCA PLNCA:1) at the field data entry is ongoing; and one is going to conduct the research. - - # of students - 3 Students attending - Completed concept note and 50% attending training in training in budget approval by Program partnership with partnership with Manager on Integrating foreign universities foreign university Research into Agricultural (RUA: 2, PLNCA:1). Extension Strategy Implementation and Policy in Cambodia in partnership with a university in Vietnam, the trip will take place in late of August.

2.2 Progress Towards Programme Outputs

Output under Indicators in Log frame Status compared to Log frame in Outcome 2 2017 2.1. The Extension Hub - At least 300 extension - 70 out of 150 materials (approx. is established to materials accessible 47%) were reviewed and are to be support the through the Extension approved by NSTAC for uploading extension sub- Portal to the extension web portal. sector with - At least 1,000 - The extension agents will access sustainable Extension agents (by the extension web portal after financing and public sector, private launching in August 2017 and improves access to sector, civil society) materials will be automatically extension materials who access synchronized to CEWs’ mobile and technical Extension Portal to devices (60 in July 2017). support for field support their work extension agents in public sector, private sector and civil society. 2.2. The Farmer - Needs assessment - The farmer need assessment Needs Assessment system (tool and process has been developed and is system defined applied. The FNA system was established within actions/protocol) updated based on IFAD Support the Extension Hub available that can be mission recommendations in June supports improved used in planning of 2017 and validated with PDAFFs. planning of services/products.

27 Extension ICT tools have been developed as programmes. part of the pilot farmer tracking tool. - Refresher training on FNA and Training on ICT tools will be conducted in August 2017. 2.3. Improved - 202 Master Trainers - 169 master trainers (15 females) extension trained on improved participated in the TOT training on techniques are techniques. SLG, FNA, FFS, Gender Role and developed and Women Economic Empowerment in master trainers Agriculture Extension, Gender trained. Mainstreaming in Agriculture Extension. 2.4. Quality - 300 of extension - A draft of Extension Hub operation assurance of materials and 15 Manual was prepared - including extension service providers overall quality assurance system for materials and certified (by product extension hub (include QA for extension service category). extension materials, extension providers operating service provision and providers, under the Extension and FNA). The TOR for a national Hub. consultant to develop guidelines on Quality Assurance was prepared and the Consultant selected. 2.5. Clearly defined - 70% of extension staff - The document on Role and roles and whose performance is Responsibilities of Agriculture responsibilities that managed based on Extension in Cambodia is submitted support the approved job to MAFF for approval. extension service descriptions (Ext. providers and MAFF Hub, PDA and DAO institutions extension staff) to work together. 2.6. The human - 202 of people with - A concept paper on: competency resources needed to improved skills (by based agriculture extension model operate the course/research type for Cambodia, Human Resource extension service and gender) to deliver Structure and function were drafted. are strengthened in quality extension The first international consultant accordance with a services in line with resigned, therefore, the team human resources agreed HRDS. already prepared the TOR for a development new International Consultant who strategy that will start working in the first week of identifies number of August 2017. trained extension workers needed, key skills and education and training provisions.

2.3 Achievements on Un-programmed Activities and Outputs - The IFAD Support mission recommended mobilizing 2 national TA on ICT to assist in setting up the e-learning facilities, which supposes a revision of the 2017 AWPB. It is to be noted that the AWPB 2017 did not include the budget for the National Knowledge Management and ICT Advisor to support the e-learning activities. - Although there was no budget in the AWPB, the meeting to validate the guideline on SLG, FNA, FFS with PDAFF, ASPIRE Secretariat and GDA/DAE was organized by using budget from the refresher training on SLG, FNA, and FFS. - GDA/DAE have worked with IFPRI to develop the voice message on climate resilient chicken raising technique, climate resilient cucumber and long bean production, climate resilient rice

28 production for testing with target beneficiaries and non-beneficiaries of the ASPIRE programme in

3. Component 3: Improved Extension Services

Component 3.1.A. Provincial Sub-Program - # of guidelines - Guidelines for - The final guidelines for innovation 80% developed PPP, for grants for Climate Resilience innovation Agriculture were developed and grant for adopted and advertising for interest Climate institutions. Resilience for - The final draft of contracting out and Agriculture and PPP were developed and submitted for contracting to Program Manager for approval. out developed.

Component 3.1. D. Commission of Commodity Analysis by GDA - Commodity - Commission of - Developed TOR for firm to conduct 30% Analysis Commodity commodity analysis and submitted reports are Analysis by to procurement, under EOI used GDA is utilizing evaluation. the reports which have been produced.

Component 3.2: Innovations for Climate Resilient Agriculture - # of meetings - 5 meeting of - Planned to conduct the meeting in 0% to select AEAC will Mid of August 2017. successful select the grantees successful project nominees then endorsed and approved. - # of innovation - Call for proposal for Innovation 40% grants Grants on Climate Resilience have approved been announcement on the 30th - 2 Innovation June 2017, with a deadline for Grants. proposal submission set on the 8th of September 2017. Component 3.3. Mass Media Campaign - # of TV show - TV show - Completed TV show announcement 40% announced announced in in 12 communes. 30 communes. - # of TV show - Completed TV Show on climate 40% - TV show broadcasted in resilient pig, chicken, cabbage, fish, broadcasted in communes and rice production in 12 30 communes. communes with 4,152 farmers

(2,491 females). - Communication - Communication - National Consultant started working 5% and Media and Media on 24 July 2017 Strategy status Strategy developed

Other collaboration with NGOs, UN and IFAD Program

29 - ASPIRE - Result of the meeting /workshop 50% Program have - Collaboration with FAO, WFP, WOCAT, CE SAIN: improved meeting with  Integration of FAO’s CSA coordination partner’s guideline into the ASPIRE’s FFS with FAO, organizations: TOT. WFP, WOCAT, FAO, WFP,  FAO agreed ASPIRE proposal to CE SAIN WOCAT, and integrate Gender Role and CE SAIN. Women Economic Empowerment in Agriculture into the FFS guidelines of FAO. - ASPIRE Program Advisor has drafted a concept note with WFP on contracting SLG farmers for providing agricultural products for school-feeding program.

4. Component 4 – Infrastructure Supporting Climate Resilience Agriculture

Outputs Indicators Targets 2017 Current Status Outcome 3: At least 120,000 smallholders have improved and resilient farm businesses as a result of integrated, demand led extension services and investments in climate resilient infrastructure. • At least 70,000 climate vulnerable smallholders usinq infrastructure financed by PBCR/SPC to support their farming. Component 4: Infrastructure Supporting Climate Resilient Agriculture A. Grants for Climate Resilient Productive Infrastructure 1. Performance Based Climate Resilience Grants 16 Districts 100% completed 86 climate resilience related projects in 83 communes of 16 districts in 5 target provinces. 5. District performance Assessment Baseline 16 District 0% B. Support Costs 1-National support cost 1. National Workshops on reflection workshop at 1 Workshop 0% province2. Provincial support cost 1. Vulnerability Reduction Analyses to Training 2 Training 50% Workshop Workshops A training workshop had been organized in SHV with 96 participants (14 Woman) a). VRA Meeting in 16 old target districts and in 48 communes in 2 communes in 8 new target districts 24 districts one district had been done. 3. District CCA Strategy Workshop 8 new target 24 districts 0% districts and update the district CCA in 16 old target districts 5. District Project Selection training Workshop for 1 Training 0% new and old target provinces Workshop -Pre district project selection 24 districts 0% -Final district project selection 24 districts 7. Participatory Evaluation and PBCR Grant 2 Training 0% Assessment training workshop Workshop -Participatory Evaluation in 16 target districts 16 districts 0%

30 Outputs Indicators Targets 2017 Current Status 9. Province Start Up Workshop in 5 new 5 Workshop 0% provinces 11. Provincial Reflection Workshop and AWPB 10 Workshops 0% formulation 12. CEWs meeting or training 10 Times 50% 5 times in 5 target provinces with 223 participants (95 woman}

4.1 Progress Towards Programme Output

There were 86 infrastructure climate resilience related projects that had been selected and supported by PBCR Grant with total US$800,000 in 83 communes of 16 districts in 5 target provinces. In addition, a climate change adaptation (CCA) mainstreaming and Vulnerable Reduction Assessment (VRA) training workshop was organized and five other CCA mainstreaming and VRA training workshops in five target provinces were organized to build the capacity of the national, provincial, district and commune programme staff for supporting in VRA conducting at commune level and CCA mainstreaming in to five years commune development plan (CDP) and three years rolling investment plan (CIP).

4.2 Achievements on Un-Programmed Activities and Outputs

There were five CCA mainstreaming and VRA training in five target provinces had been organized to provide capacity building to CEWs in the process of VRA assessment and CCA mainstreaming in to CDP and CIP for supporting commune planning and budgeting committee to mainstream CCA in to their CDP and CIP for 2018.

Part III. FIDUCIARY ACHIEVEMENTS AND RESULTS

A. Financial Management Achievements and Results

3.1 Disbursements, Budget, and other Financial Results

This part of the Semi-Annual Programme Report of ASPIRE for 2017 provides information on the financial progress of the Programme, showing the amount of disbursements against the budget during the semi-annual period of January to June 2017, and is also produced as part of the financial management reporting to the Royal Government of Cambodia and its development partner, IFAD. As of June 30, 2017, ASPIRE has cumulatively disbursed total of US$6,207,036.40, which is about 60.27% of the cumulative budgetary allocation as of 2017 amounting to US$10,315,489. In previous reporting periods, the following were the total expenditures: Table 3.1: Disbursements for the Reporting Period of ASPIRE # Reporting Period Ending Date Amount Disbursed in USD$ 1 31 December 2015 820,081.67 2 31 December 2016 3,215,616.64 3 30 June 2017 2,171,338.09 Total 6,207,036.40 Cumulative Budgetary Allocation as of 2017 10,315,489.00 Cumulative Disbursement Percentage Based on 60.17% Allocation as of 30 June 2017

3.1.1 Annual Work Plan and Budget

On its second year of programme implementation, ASPIRE requested a total budget of US$10,315,489 under the Annual Work Programme and Budget (AWPB) for 2017, which was approved by IFAD on 28 December 2016, which was endorsed to the Ministry of Economy and Finance and approved on 24 February 2017, with the following budget by categories and components as shown below:

3.1.2 Budget by Category

For the year, the breakdown of the budgetary allocation of US$10,315,489 were taken from the following sources: Royal Government of Cambodia, US$3,502,040; IFAD Loan US$3,175,418; and IFAD Grant US$3,638,031. The amount was allocated to the following categories: Consultancies, US$2,264,990; Goods, Services, and Inputs, US$1,255,430; Grants and Subsidies, US$3,014,976; Workshops, US$ 2,282,103; and Operating Costs, US$1,497,990. The table below provides more details on the breakdown of the budget by category:

Table 3.2: Budget by Category Budget by Category RGC Loan Grant Total Category 1: Consultancies 625,797 - 1,639,193 2,264,990 Category 2: Goods, Services and Inputs 263,640 552,389 439,401 1,255,430 Category 3: Grants and Subsidies 391,947 2,623,029 - 3,014,976 Category 4: Workshops 1,620,293 661,810 2,282,103 Category 5: Operating Costs 600,363 897,628 1,497,990 Grand Total 3,502,040 3,175,418 3,638,031 10,315,489

3.1.3 Budget by Components

Budget by Components were broken down as follows:

 Component 1 Evidence Based Policy – Policy Coordination and Development, was allocated US$100,000; while Policy Research and Analysis, was allocated US$521,400;

32  Component 2 Capacity Development – Improving extension quality was provided US$ 1,654,440, and Strengthening Human Resources with US$479,141;  Component 3 Extension Services – Extension services were provided for the following: Provincial sub-program, US$3,372,436; Innovation Grants, US$183,300; and Mass Media Extension, US$123,000;  Component 4 Infrastructure Supporting Climate Resilience – Total funds for this component was US$1,522,880;  ASPIRE Secretariat and Priority Operating Cost Allowance – The ASPIRE Secretariat was given a total budget of US$2,108,332.  Incentive Allowance – The total budget allocated for allowance in 2017 was US$250,560.

The table below provides the details of the budget by components:

Table 3.3: Budget by Components Budget by Components RGC* Loan Grant Total Component 1: Evidence based policy 1.1: Policy coordination and development 28,000 - 72,000 100,000 1.2: Policy research and analysis 212,554 8,712 300,134 521,400 Component 2: Capacity Development 2.1: Improving extension quality* 810,826 156,222 687,393 1,654,440 2.2: Strengthening Human Resources 193,288 9,605 276,248 479,141 Component 3: Extension Services 3.1: Provincial sub-program 717,584 1,990,865 663,987 3,372,436 3.2: Innovation Grants 24,324 156,600 2,376 183,300 3.3: Mass Media Extension 26,670 48,840 47,490 123,000 Component 4: Infrastructure Supporting 403,954 734,768 384,158 1,522,880 Climate Resilience ASPIRE Secretariat 834,281 69,806 1,204,245 2,108,332 Incentive/Allowance 250,560 - - 250,560 Grand Total 3,502,040 3,175,418 3,638,031 10,315,489 *=There is discrepancy in the total sum because of the rounding of numbers.

3.2. Financial Position Summary The table below summarizes the financial position of ASPIRE as of 30 June 2017:

3.2.1 Fund Balance at Designated Account as of 30 June 2017

As of the end of 30 June 2017, the fund sources for ASPIRE has the following balances, RGC, US$ 813,750.77; IFAD Loan, US$30,896.24; IFAD Grant, US$1,020,332.63; or a grand total of US$ 1,864,979.64.

Table 3.4: Fund Balance of Designated Accounts as of 30 June 2017 Sources of Funds Balance, in USD RGC 813,750.77 IFAD Loan 30,896.24 IFAD Grant 1,020,332.63 Grand Total 1,864,979.64

3.2.2 Designated Account for RGC Reconciliation Statement, as of 30 June 2017

Total amount advanced as of 30 June 2017 for the RGC account has reached a total of US$2,092,369.56, with total bank balance and petty cash at implementation agencies amounting to US$1,416,221.97; total expenditures from April-June of US$454,392.04, total amount claimed in previous application, US$222,369.56, and interest earned from NCDDS, US$614.01. During the period, there was no difference observed in the designated account for RGC Reconciliation Statement.

Table 3.5: Designated Account for RGC Reconciliation Statement, as of 30 June 2017 A. Outstanding Amount Advanced by RGC US$2,097,369.56 1. Ending Bank Balance at Designated Account at RGC 813,750.77 2. Cash and Cash Advance 602,471.20 3. Total Balance at Bank IAs and Advance (1+2) 1,416,221.97 4. Plus Total Amount of Expenditure from April 2016 to May 2017 454,392.04 5. Plus Total Amount claimed in previous Application (not yet) 222,369.56 6. Minus Interest Earned from NCDDS Account (614.01) B. Total Advance Accounted (3+4+5+6) US$2,097,369.56 Difference 0

3.2.3 Designated Account for IFAD Grant Reconciliation Statement, as of 30 June 2017

For the IFAD Grant account, a total of US$2,670,949.99 has been advanced, which were accounted for in the reconciliation statement below, with the following balances: bank balances and petty cash with IAs recorded at US$1,851,397.99, and total expenses for June 2017 amounting to US$265,449.73. Total amount claimed in previous Application not yet with US$554,102.27.There was no difference observed.

Table 3.6: Designated Account Grant Reconciliation, as of 30 June 2017 ASAP Grant 2,670,949.99 Ending Bank Balance at Designated Account Grant 1,020,332.63 Balance of the Programme Account, Petty Cash, and Cash Advance 831,065.36 Total Balance at Bank IAs and Advance 1,851,397.99 Plus Total Amount of Expenditure for June 2017 265,449.73 Plus Total Amount Claimed in Previous Application (not yet) 554,102.27 Total Advance Accounted 2,670,949.99 Difference 0

3.2.4 Designated Account for IFAD Loan Reconciliation Statement, as of 30 June 2017

For the IFAD Loan account, the total amount advanced was US$635,221.44 with total bank balance, and petty cash at the implementation agencies reaching US$141,532.88, and total expenses for 30 June 2017 amounting to US$78,045.68. Total amount claimed in previous Application with US$ 415,642.88. There was no observed difference in the reconciliation of accounts.

Table 3.7: Uses of Funds by Disbursement Category, as of 30 June 2017 IFAD Loan A. Outstanding Amount Advance IFAD Loan 635,221.44 1. Ending Bank Balance at Designated Loan Account 30,896.24 2. Balance of the Programme Account, Petty Cash, and Cash Advance 110,636.64 3. Total Balance at Bank IAs and Advance (1+2) 141,532.88 4. Plus Total Amount of Expenditure from 30 June 2017 78,045.68 5. Plus Total Amount Claimed in Previous Application (not yet) 415,642.88 B. Total Advance Accounted (3+4+5) 635,221.44 Difference 0

3.3 Uses of Funds by Disbursement Category

As of 30 June 2017, ASPIRE’s programme spending amounted to US$ 2,171,338.09 million, under five disbursement categories: Consultancies, US$641,170.91; Goods, Services, and Inputs, US$178,685.10; Grants and Subsidies, US$ 518,536.71; Workshops, US$277,147.94; and Operating Costs, US$555,797.43 based on the activities expected to materialize during the year from the approved Annual Work Program and Budget (AWPB). The total amount spent under all categories amounted to US$2,171,338.09, which correspondents to only 21% of the planned disbursement

34 amount. The table below shows the projected spending amount under each disbursement category and the actual amounts spent against the projected spending as of 30 June 2017:

Table 3.8: Accumulated Expenditure by Category as of 30 June 2017

PLANNED 2017 YEAR TO DATE No. Category BALANCE % RGC LOAN GRANT Total RGC LOAN GRANT Total

1 Consultancies 625,797.20 - 1,639,192.80 2,264,990.00 176,783.87 - 464,387.04 641,170.91 1,623,819.09 28%

2 Goods, Services and Inputs 263,640.30 552,389.20 439,400.50 1,255,430.00 37,523.87 78,621.44 62,539.79 178,685.10 1,076,744.90 14%

3 Grants and Subsidies 391,946.88 2,623,029.12 - 3,014,976.00 77,369.59 441,167.12 - 518,536.71 2,496,439.29 17%

4 Workshops 1,620,293.10 - 661,809.86 2,282,102.96 192,833.91 - 84,314.03 277,147.94 2,004,955.02 12%

5 Operating Costs 600,362.50 - 897,627.50 1,497,990.00 221,057.46 - 334,739.97 555,797.43 942,192.57 37% TOTALS 3,502,039.98 3,175,418.32 3,638,030.66 10,315,488.96 705,568.70 519,788.56 945,980.83 2,171,338.09 8,144,150.87 21%

In terms of accumulated expenditure from 2015 until 30 June 2017, planned expenditure has been planned to reach US$20,700,667.36, but has only spent a total of US$6,207,036.40 or a total cumulative expenditure rate of only 30%. The following were the expenditures per category:  Consultancies – With a planned of US$5,575,385.00, amount spent was only US$ 1,276,492.11 (23%);  Goods, Services and Inputs – Budgeted for US$3,048,835.00, and spent US$972,095.12 (32%);  Grants and Subsidies – Budgeted for US$4,488,416.00, and spent US$1,192,607.68 (27%);  Workshops – Budgeted for US$4,603,001.36, and spent US$1,476,035.18 (32%);  Operating Costs – Budgeted for US$2,985,030.00, and spent US$1,289,806.31 (43%).

Table 3.9: Accumulated Expenditure by Category from 2015 to 30 June 2017

PLANNED 2015+2017 ACCUMULATED TO DATE No. Category BALANCE % RGC LOAN GRANT Total RGC LOAN GRANT Total

1 Consultancies 1,442,921.24 - 4,132,463.77 5,575,385.00 348,553.00 - 927,939.11 1,276,492.11 4,298,892.89 23%

2 Goods, Services and Inputs 616,099.15 1,020,447.40 1,412,288.45 3,048,835.00 150,114.69 194,996.14 626,984.29 972,095.12 2,076,739.88 32%

3 Grants and Subsidies 583,494.08 3,904,921.92 - 4,488,416.00 182,974.70 1,009,632.98 - 1,192,607.68 3,295,808.32 27%

4 Workshops 3,047,110.06 - 1,555,891.29 4,603,001.36 998,607.29 - 477,427.89 1,476,035.18 3,126,966.18 32%

5 Operating Costs 1,121,373.02 - 1,863,656.98 2,985,030.00 526,629.72 - 763,176.59 1,289,806.31 1,695,223.69 43%

TOTALS 6,810,997.55 4,925,369.32 8,964,300.49 20,700,667.36 2,206,879.40 1,204,629.12 2,795,527.88 6,207,036.40 14,493,630.96 30%

3.4 Uses of funds by program components/by activities

ASPIRE’s funds planned to disburse a total of USD 10,315,488.96 for 2017, for the following components: (a) Evidence based policy, US$633,280.00; (b) Capacity Development, US$ 2,163,221.26; (c) Extension Services, US$3,822,136.00; (d) Infrastructure Support Climate, US$ 1,558,280.00; and (e) ASPIRE Secretariat, US$ 2,138,571.70. Expenditure by Component to date has reached US$2,171,338.09, which were spent on the following component categories:  Evidence Based Policy – Spent a total of US$211.70, with balance of US$633,068.30;  Capacity Development – spent a total of US$396,980.99, with balance of US$1,766,240.27;

35  Extension Services - spent a total of US$632,057.29, with balance of US$3,190,078.71;  Infrastructure Support for Climate Resilience – spent a total of US$554,311.10, with balance of US$1,003,968.90; and  ASPIRE Secretariat – spent a total of US$587,777.01 with balance of US$1,550,794.69. Table 3.10: Expenditure by Component as of 30 June 2017

PLANNED 2017 YEAR TO DATE No. Category BALANCE % RGC LOAN GRANT Total RGC LOAN GRANT Total

1 Evidence based policy 252,434.00 8,712.00 372,134.00 633,280.00 69.09 - 142.61 211.70 633,068.30 0%

2 Capacity development 1,033,753.19 165,827.20 963,640.86 2,163,221.26 167,919.96 6,278.80 222,782.23 396,980.99 1,766,240.27 18%

3 Extension services 911,978.28 2,196,305.12 713,852.60 3,822,136.00 210,211.34 256,938.26 164,907.69 632,057.29 3,190,078.71 17%

4 Infrastruture support climate. 439,354.00 734,768.00 384,158.00 1,558,280.00 124,736.32 252,522.18 177,052.60 554,311.10 1,003,968.90 36%

ASPIRE secretariat 864,520.51 69,806.00 1,204,245.19 2,138,571.70 202,631.99 4,049.32 381,095.70 587,777.01 1,550,794.69 27%

TOTALS 3,502,039.98 3,175,418.32 3,638,030.66 10,315,488.96 705,568.70 519,788.56 945,980.83 2,171,338.09 8,144,150.87 21% For the cumulative expenditures by Components from 2015 until 30 June 2017, the following were the breakdown:  Component 1 – Evidence Based Policy – a total of US$211.70 was spent out of the budget of US$1,317,580.00 or 0.02%  Component 2 – Capacity Development – a total of US$1,147,397.85 was spent out of the budget of USD 4,626,631.26 or 25%  Component 3 – Extension Services – total amount spent has reached US$2,234,203.18 of the budget of 6,853,817.00 or 33%  Component 4 – Infrastructure Support Climate Resilience – total amount spent has reached only US$819,812.38 with the total budget of US$2,511,531.00 or 33%  ASPIRE Secretariat – total amount spent has reached US$2,005,411.29 with the total budget of US$5,391,108.10 or 37%. The table below provides the details of expenditures by Components: Table 3.11: Accumulated Expenditure by Component (2015 to 30 June 2017)

PLANNED 2015+2017 ACCUMULATED TO DATE No. Category BALANCE % RGC LOAN GRANT Total RGC LOAN GRANT Total

1 Evidence based policy 483,365.52 13,288.00 820,926.48 1,317,580.00 69.09 - 142.61 211.70 1,317,368.30 0.02%

2 Capacity development 2,008,625.55 331,559.20 2,286,446.50 4,626,631.26 580,477.29 40,317.76 526,602.80 1,147,397.85 3,479,233.41 25%

3 Extension services 1,738,406.58 3,321,967.92 1,793,442.51 6,853,817.00 699,288.41 870,811.85 664,102.92 2,234,203.18 4,619,613.82 33%

4 Infrastruture support climate 704,578.69 1,102,090.20 704,862.12 2,511,531.00 240,485.35 269,656.87 309,670.16 819,812.38 1,691,718.62 33%

ASPIRE secretariat 1,876,021.22 156,464.00 3,358,622.88 5,391,108.10 686,559.26 23,842.64 1,295,009.39 2,005,411.29 3,385,696.81 37%

TOTALS 6,810,997.55 4,925,369.32 8,964,300.49 20,700,667.36 2,206,879.40 1,204,629.12 2,795,527.88 6,207,036.40 14,493,630.96 30%

36 3.5 Financial Status, Transfers, and Tracking

3.5.1 Transferred Funds to Implementing Agencies for 2017

As of 30 June 2017, a total of US$3,114,985.73 were transferred to implementing agencies, with the Secretariat receiving the highest share of funds amounting to US$625,000.00, while SNEC transferred to National Bank of Cambodia with US$20,000.00, GDA has received US$830,000.00, NCCDS with US$738,632.73. The provincial departments were provided with the following funds: Battambang province, US$200,067.00; Kampong Chhnang province, US$168,642.00; Kratie province, US$165,276.00; Preah Vihear province, US$ 199,080.00; and Pursat province, US$ 208,288.00. The table in the following page, provides the details of the transfers:

Table 3.12: Funds Transferred to Implementing Agencies as of 30 June 2017 No. IAs RGC IFAD Loan ASAP Grant Grand Total 1 Secretariat 235,000.00 (30,000.00) 420,000.00 625,000.00 2 SNEC - - (20,000.00) (20,000.00) 3 GDA 395,000.00 (15,000.00) 450,000.00 830,000.00 4 NCDDS 213,947.29 282,522.18 242,163.26 738,632.73 5 Battambang Province 56,921.96 51,737.44 91,407.60 200,067.00 6 Kampongchhnang Province 60,097.96 21,737.44 86,806.60 168,642.00 7 Kratie Province 53,501.96 26,737.44 85,036.60 165,276.00 8 Preah Vihear Province 70,429.96 46,737.44 81,912.60 199,080.00 9 Pursat Province 78,853.96 32,737.44 96,696.60 208,288.00

Grand Total 1,163,753.09 417,209.38 1,534,023.26 3,114,985.73

3.5.2 Funds Available in Designated Account and Program/Sub-Program Accounts

As of 30 June 2017, a total of US$ 1,201,038.54 are in the Program and Sub-Program Accounts, while a total of US$1,864,979.64 are in the Designated Account at the National Bank of Cambodia:

Table 3.13: Funds Available in Designated and Program/Sub-Program Accounts Programme and Sub-programme Accounts Designated Account No. IAs At Acleda Bank (USD) At National of Cambodia RGC IFAD Loan ASAP Grant Grand Total RGC IFAD Loan ASAP Grant Grand Total 1 Secretariat 19,852.59 5,905.28 102,140.27 127,898.14 813,750.77 30,896.24 1,020,332.63 1,864,979.64

2 SNEC 9,690.00 - 9,280.00 18,970.00 - 3 GDA 152,979.73 15,799.20 152,099.46 320,878.39 -

4 NCDDS 88,424.25 31,865.31 72,605.83 192,895.39 - 5 Battambang Province 26,993.66 5,160.45 64,897.49 97,051.60 -

6 Kampongchhnang Province 27,962.19 10,736.54 64,598.76 103,297.49 -

7 Kratie Province 41,509.43 4,612.34 79,458.66 125,580.43 - 8 Preah Vihear Province 44,972.37 343.28 66,841.19 112,156.84 -

9 Pursat Province 49,766.24 820.94 70,693.08 121,280.26 - Grand Total 462,150.46 75,243.34 682,614.74 1,220,008.54 813,750.77 30,896.24 1,020,332.63 1,864,979.64

3.5.3 Outstanding Advance at Implementing Agencies

As of 30 June 2017, a total of US$ 290,543.27 were transferred to implementing agencies, the table in the following page, provides the details of the outstanding advance:

Table 3.14: Outstanding Advance of Implementing Agencies Accumulated Advance YTD No. IAs RGC IFAD Loan ASAP Grant Grand Total 1 Secretariat 29,188.85 - 13,260.65 42,449.50

2 SNEC - - - - 3 GDA 87,003.74 - 111,689.95 198,693.69

4 NCDDS 15,589.20 - 13,902.77 29,491.97

5 Battambang Province 1,088.66 - 743.34 1,832.00 6 Kampongchhnang Province 2,499.14 - 1,020.74 3,519.88

7 Kratie Province 1,143.81 2,043.30 1,102.12 4,289.23

8 Preah Vihear Province - 7,250.00 - 7,250.00 9 Pursat Province 1,509.11 - 1,507.89 3,017.00 Grand Total 138,022.51 9,293.30 143,227.46 290,543.27

3.5.6 SDR Tracking for Grant Fund

For the SDR Tracking for Grant Fund, the following table provides the details. Total amount direct payment ASAP Grants has reached a total SDR 253,415.07 or US$355,728.87; advance received from IFAD with total in SDR 3,110,846.27 or US$4,291,197.00 for WA No.01-Grant, 04-Grant and WA No.11- Grant, and total amount justification of advance with total amount of SDR 1,562,829.39 or US$2,174,349.28 while the remaining advance for the period has reached SDR 1,548,016.88 or US$ 2,116,847.72.

Table 3.15: SDR Tracking for Grant Fund Amount No. WA No. Decriptions of WA Amount (JYP) Amount (USD) Remarks (SDR)/Estimated WA Direct payment 100% payment of Direct payment 5 vehicles, Toyota Land Cruiser Prado Station 2 WA No.02-Grant Wagon 16,262,206.00 136,985.04 97,585.76 1.4037 100% Direct payment 9 vehicles, 3 WA No.03-Grant Ford Ranger Pick up 218,743.83 155,829.31 1.4037 Subtotal WA Direct payment 16,262,206.00 355,728.87 253,415.07 WA Advance 1 WA No.01-Grant 1st Advance for Start Up-2015 485,863.00 349,795.89 1.3890 2nd Advance for Qrt 2 & Qrt 3, 4 WA No.04-Grant 2015 1,497,334.00 1,067,838.63 1.4022 5 WA No.06-Grant Advance semester 1, 2016 - - Cancel 3rd Request advance for 6 WA No.11-Grant Semester 1, 2017 2,308,000.00 1,693,211.75 1.3631 Subtotal Amount of WA Advance - 4,291,197.00 3,110,846.27 WA Justification of Advance 7 WA No.05-Grant 1st justification start up cost 122,913.01 88,490.92 1.3890 2nd Justification Nov 15- Mar 16 8 WA No.07-Grant (400,770.37) 400,770.37 285,813.37 1.4022 3rd Justification April-August 9 WA No.08-Grant 2016 375,924.28 268,089.57 1.4022 10 WA No. 09-Grant 4th Justification Sept-Dec 2016 594,210.52 423,767.14 1.4022 11 WA No.10-Grant 5th Justification Jan-Feb 2017 126,435.23 90,168.55 1.4022 6th Justification 3rd advance 12 WA No.12-Grant Mar-May, 2017 554,095.87 406,499.84 1.3631 Subtotal Amount of Justification Advance 2,174,349.28 1,562,829.39 Balance WA received advance compaired with WA Justification advance 2,116,847.72 1,548,016.88 7th Justification 3rd advance for Not yet Submit 13 WA No.13-Grant June, 2017 265,449.73 194741.162 to MEF/IFAD

3.5.7 SDR Tracking for the Loan Fund

For the IFAD Loan Fund, total amount fund received from IFAD Loan were SDR 939,735.73 or US$ 1,320,062.00; while the remaining balance were SDR 155,282.85 or US$219,578.64.

Table 3.16: SDR Tracking for the Loan Fund Amount No. WA No. Decriptions of WA Amount (USD) Remarks (SDR)/Estimated WA Advance 1 WA No.01-Loan Advance for Q2 & Q3 2015 13,827.00 Cancel 2 WA No.02-Loan Advance for Q2 & Q3 2015 300,000.00 218,410.55 1.3736 3 WA No.03-Loan Request advance semester 1, 2016 1,020,062.00 721,325.18 1.4142 Subtotal Amount of WA Advance 1,320,062.00 939,735.73 WA Justification of Advance 4 WA No.04-Loan 1st Justification of 1st & 2nd Advance 307,574.30 223,766.69 1.3736 & 1.4142 5 WA No.05-Loan 2nd Justification of 2nd Advance 377,266.18 266,779.47 1.4142 6 WA No.06-Loan 3rd Justification of 2nd Advance 342,117.16 241,915.68 1.4142 7 WA No.08-Loan 4th Justification of 2nd Advance 73,525.72 51,991.03 1.4142 Subtotal Amount of Justification Advance 1,100,483.36 784,452.88 Balance WA received advance compaired with WA Justification advance 219,578.64 155,282.85 8 WA No.9 5th Justification of 2nd Advance 78,045.68 55,187.16 Not Yet Submit

3.6 Financial Management Meetings and Workshops

There were meetings and workshops organized as of 30 2017 related with financial management as provided below and the following page:

Table 3.17: Financial Management Meetings and Workshops No. Descriptions Completion Date 1 IFAD-Kingdom of Cambodia Country Portfolio Review Workshop at 23-26 Jan 2017 Sihanouk province 2 4th Technical meeting at Kampong Cham province 30 Jan-02 Feb 2017 3 Financial Spot Check at GDA 13-14 Feb 2017 4 Meeting with IAS: i)-Presenting the urgent action plan for 3 months 27-Feb 2017 period of Component-2, ii)-Preparation for External Audit will be came soon on March, iii)- Onward of Human Resource Development Strategy and others issues/challenges. 5 Technical meeting at Stung Treng province 14-16 Mar 2017 6 Meeting on PBCR Grant transfer to Provincial treasury with H.E 04 April 2017 National treasury 7 Join Workshop BSP 2017-2020 at Siem Reap Province 26-28 April 2017 8 Meeting with IFAD Implement Support mission 11-12 May 2017 7 Meeting with IFAD Implement Support mission at Kampongchhnang 17 May 2017 province 8 Join Wrap up meeting IFAD Implement Support Mission 25-May 2017 9 Meeting Auditor for review Financial Statement and Management 02 June 2017 Letter 10 Meeting ASPIRE implementation as of June 2017 lead by H.E 06 June 2017 Minister 11 Join Management meeting for Recommendation IFAD Implement 08-09 June 2017 Support Mission at Tonle Basak on 08-09 June 2017

B. Procurement Management Achievements and Resuls

3.7 Procurements of Goods

3.7.1 Procurements of Goods under ASPIRE Secretariat, GDA and 5 PDAFFs The procurements of goods under ASPIRE Secretariat, GDA and 5 PDAFFs have been achieved during the reporting period from January to June 2017:

Table 3.18 Procurement Achievements, January to June 2017 Table 1: Procurement Achievement During the Reporting Period from January to June 2017 No. Description Contract Price USD Remarks Procurement of Goods - Contract Award Procurement of 70 units of motorcycles, 60 units for CEWs (12 1 units for each province x 5) and (2 units for each PDAFF x 5 = 10 units) 118,860.00 Procurement of printing materials (folders, factsheets, 2 guidelines, technical guide books for GDA) 33,360.00 Office equipment (Laptop: 11, Desktop: 32, Workstation: 2, Photocopier: 1, Printer/scanner -High Speed Scanner: 2, Multi- 3 function Printer: 35, Multi-function Color Printer: 1, LCD projector: 1 and Network attached storage: 4) 84,700.00 Equipment (2 Desktop, Camera Professional 1, Multi directional Microphone 1 Profesional, 200 USB, 1 Camara 4 Web, 2 Laptops, 1 LCD , 1 Printer , 1 Camera Stand, 1 Smart TV) - GDA 12,100.00 Printing (Newsletter, X-stand, Banner,Leaflet, booklet, 5 broucher, M&E/KM manual) 9,100.00 6 Air coodintion for TA room at DAE - GDA 1,380.00 SAGE 50 Sofware Design and Train (40 users plus training) - 7 DPS/DAF 24,790.00 8 Interpretation Translation Services and Earphone Rental 15,000.00 Sub Total 299,290.00 Battambang PDAFF 5,587.50 9 Office Furnitue (6 tables, 6 Chairs, 9 Filling Cabinets) 4,603.50 Printing service PASDP books 984.00 Pursat PDAFF 8,633.00 Office Furnitue (6 tables, 6 Chairs, 9 Filling Cabinets) 5,960.00 10 Air coodintioner for TA room 733.00 Printing service PASDP books 1,940.00 Kampong Chhnang PDAFF 7,407.70 11 Office Furnitue (6 tables, 6 Chairs, 9 Filling Cabinets) 5,947.70 Printing service PASDP books 1,460.00 Kratie PDAFF 5,313.40 12 Office Furnitue (6 tables, 6 Chairs, 9 Filling Cabinets) 3,953.40 Printing service PASDP books 1,360.00 Preah Vihear PDAFF 7,138.00 13 Office Furnitue (6 tables, 6 Chairs, 9 Filling Cabinets) 5,238.00 Printing service PASDP books 1,900.00 Sub Total 34,079.60 Total 333,369.60

3.7.2 Procurements of Goods under the Process Status for ASPIRE Secretariat, GDA, SNEC and NCDDs: Table 3.19: Procurement of Goods (Under Process, January to June 2017)

Table 2. Procurements of Goods under the Process Status During the Reporting Period from January to June 2017 Estimated Cost Component No. Description NCB NS Total Status (USD) The Bid Evaluation Report 1 152 Motorcycles $ 266,000.00 is now under the obtaining of the PRC's signatures on 1 1 the PRC meeting minutes. Waiting for specifications which will be done by the Consultant for Designing farmer's calendar, recording book and 2 Priniting new extension materials - GDA $ 200,000.00 technical books that is now under obtaining PRC's signtaures to approve the contract negotiation 1 1 minutes. Material for Server Room and web production Year 2017 (extension portal): Lot 1 (Server Room Equipment), Lot 2 (Library: 1 Powerful desktop, 1 Multi functions Photocopy, Color Printer and 3 Scanner – laser and 2 High Speed Scanners) and $ 68,000.00 Lot 3 (Web media development equipment: 1 Video camera with 24-70 Lens, Stand, wireless microphone, SD memory cards (2X), Flash and Under approving the draft battery and 1 Drone including accessories) 1 1 bidding documents. The specifications will be 203 Tablets (195 for 5 ASPIRE Target provinces, 5 provided after completing SEC 4 $ 50,750.00 for GDA and 3 for ASPIRE Sec) testing the existing tablets 1 1 in Sep 2017. The procurement process has been done up to the bid opening stage, since there was only 1 bidder submitted bid and not 5 Video Programe Impact documentation $ 40,000.00 qualify, then the re-bid has been requested to PRC for approval and will be re- advertised for 30 calendar 1 1 days. Office Furniture (Filling Cabinet: 4, Office Desks: 16, Office Swivel Chairs: 6, round table: 6 $ 11,700.00 1, Chair for meeting room: 12 and Fireproof safe: 3) 1 1 Bid Opening on 8 Aug 2017 License Software ( Video editor , GIS, 7 $ 6,000.00 Anitivirus,….etc) - GDA 1 1 Bid Opening on 8 Aug 2017 The draft version will be Printing PM&E Manuals (Khmer and English 8 $ 4,500.00 finalized by DPS in versions)-(Moved from 2016) - DPS/DAF 1 1 September 2017. Under Bid Evaluation 9 ICT test devices (4) and sim cards - GDA $ 1,500.00 1 1 process. It will be started procuring 10 Vehicles Insurance (14 Vehicles) $ 9,500.00 1 1 in Quarter 4 of 2017 Sub Total $ 657,950.00 5 5 10 Laptop $ 4,500.00 Computer Desktop $ 4,800.00 1 Photocopy $ 8,000.00 No any progress SNEC Printer Corlor $ 1,500.00 LCD projector $ 1,000.00 1 1 2 Publication costs of Study Reports and Policy Briefs$ 20,000.00 1 1 No any progress Sub Total $ 39,800.00 0 2 2 1 Office equipment (Laptop: 23, LCD: 1, Printer: 16) $ 34,800.00 1 1 Under the bidding process NCDDs 2 Motorcycle for 16 districts counter part staff /b $ 28,000.00 1 1 Under the bidding process Office furniture (Table 3, desk 3, Cabinet 3, Safe 3 $ 2,000.00 1 1 Pending box) Sub Total $ 64,800.00 2 1 3 Grand Total $ 762,550.00 7 8 15

41 3.8 Recruitments of Individual Consultants

The recruitments of individual consultants (national and international) for the ASPIRE Programme have been achieved during the reporting period:

Table 3.20 Individual Consultants Recruited No. Description Contract Price USD Remarks I Recruitment of Individual Consultants - On Board Person 1 ASPIRE Programme Advisor/Team Leader 1 2 International MIS 1 3 Curriculum Development for Extension Expert 1 4 PPP Specialist 1 5 Design of Curriculum Residential and E-learning Expert 1 6 Provincial M&E MIS Advisor - Kampong Chhnang 1 7 MIS Specialist - ASPIRE Secretariat 1 8 Planning, M&E Specialist - DPS 1 9 Agriculture Economic Survey Consultant - ASPIRE Secretariat 1 National Consultant for Developing Mass and Social Media 10 Strategic - GDA 1 11 Quality Assurance consultant - GDA 1 Total 11 II Recruitment of Contract Staffs - On Board 1 Contract Staffs - Pursat 12 2 Contract Staffs -Kampong Chhnang 12 3 Contract Staffs - Kratie 12 4 Contract Staffs - Preah Vihear 12 Total 48 Grand Total 59 The recruitments of individual consultants (national and international) for the ASPIRE Programme are under the process and pending during the reporting period:

Table 3.21 Consultants Recruitment Under Process

Recruitments of Individual Consultants under the Procees during Reporting Period Serial Contract Component Position Description Consultant Total Status No. Staff Total Cost Waiting for IFAD National Finance 1 $ 25,200.00 providing NOL on the Specialist 1 1 Shortlisting Waiting for IFAD Provincial Sub program 2 $ 18,000.00 providing NOL on Management Advisor 1 1 recruitment Minutes. SEC Waiting for IFAD Provincial Finance and 3 $ 18,000.00 providing NOL on the procurement advisor 1 1 Shortlisting Under obtaining PRC Programme Budget signatures on the 4 $ 18,000.00 Finance Specialist contract negotiation 1 1 minutes. Sub Total $ 79,200.00 4 0 4 Design farmer's Waiting for IFAD calendar & recording 1 $ 3,000.00 providing NOL on the book and technical contract negotiation books 1 1 Minutes. Digitalization of hard 2 $ 13,000.00 Advertise from 9 Aug -8 GDA copy (Contracting out) 1 1 Sep 2017 International Consultant the Waiting for IFAD 3 guideline of $ 71,400.00 providing NOL on the implementation the contract negotiation PAEC 1 1 Minutes Sub Total $ 87,400.00 3 0 3 International Policy Analysis Advisor SNEC will request IFAD 1 $ 102,000.00 (equiped own for assisting to prepare a computer) 1 1 ToR National Agricultural 2 Economist (equiped $ 31,200.00 own computer) 1 1 Under shortlisting Administration 3 $ 12,000.00 Manager (one person) 1 1 Under shortlisting SNEC Financial specialist 4 $ 18,000.00 (one person) 1 1 Under shortlisting Improving farmers SNEC will request IFAD 5 access to affordable $ 60,000.00 for assisting to prepare a Micro-fianance 1 1 ToR Annual lumpsum to support strategic policy SNEC will request IFAD 6 $ 30,000.00 research in agriculture for assisting to prepare a sector 1 1 ToR Sub Total $ 253,200.00 6 0 6 SNEC will request IFAD NCDDS 1 International Engineer $ 45,000.00 for assisting to prepare a 1 1 ToR Sub Total $ 45,000.00 1 0 1 Total $ 464,800.00 14 0 14

42 3.9 Procurements of Consulting Services

The procurements of consulting services have been progressed during the reporting period:

Table 3.22: Recruitment of Consulting Firms ASPIRE Procurment Progress (Consulting Firm) Component Serial No. Position Description Estimated Cost (USD) Status Argriculture Extension Proposal Submission Closing 1 260,000.00 Practitioner Survey Date 22 Aug 2017 SEC Agricultural Supply Chain Waiting for MTR to provide 2 80,000 Management and Solution comment Total 340,000.00 Agricultural Commodities Waiting for IFAD provding GDA 1 150,000 Outlook Study NOL on the shortlist Total 150,000.00 Survey behaviour of SNEC will request IFAD for 1 Farmers on demand supply 60,000 assisting in preparing aToR SNEC extension service Comparative Extension SNEC will request IFAD for 2 60,000 Delivery Models assisting in preparing aToR Total 120,000.00 1 Contracing Out - PUR 30,000.00 Under shortlisting Proposal Submission Closing 2 Contracting Out - KRT 30,000.00 Date 12 Sep 2017 The shortlist stage has been completed, only 1 firm was interested in submitting EOI, after the evaluation of EOI found that this firm has no experience with agricural sector and failed the shortlist. 3 Contraing Out - PVH 30,000.00 PDAFF has revised the TOR PDAFF by reducing the scope and locations of the project because it is too big and the revised TOR has been submitted to Programme Director for his comment/advice. Proposal Submission Closing 4 Contracing Out - KCH 58,000.00 Date 22 Aug 2017 Proposal Submission Closing 5 Contracting Out - BAT 58,000.00 Date 25 Aug 2017 Total 206,000.00 Grand total 816,000.00

3.10 Procurement Training

The procurement trainings have been completely conducted during the reporting period: Refreshed the procurement training on consulting services for evaluating EOIs and drafted all related documents for the Contracting Out of 2017 for Kampong Chhnang, Battambang, Kratie and Preah Vihear provinces.

3.11 Lessons Learned in Procurement

The Procurement Team at the national level and provincial level always coordinate with each other in order to solve the procurement issues and problems through sharing knowledge and capacity building (on the job training and coaching) about the RGC-SOP and IFAD procurement guidelines and to make sure that all procurement packages are done in accordance with the procurement guidelines and Financing Agreement of the programme.

3.12 Issues and Challenges

The recruitments of Individual Consultants are a little bit slow due to the long process starting from the preparation of TOR until contract signing through ten steps such as the followings:

 Preparation of TOR and approval;  Vacancy Announcement;  Shortlist Stage;

43  IFAD: All the shortlist needs to be sent to IFAD for approval and it take days to get the reply;  Writing test;  Interview;  Reference check;  Sending minutes to IFAD for approval;  After receiving approval from IFAD, submitting to PRC for approvals; and  Offering (signing contract).

IV. CHALLENGES, RISKS AND MITIGATION MEASURES

For the period covering January to June 2017, the various operating and implementation groups of ASPIRE experienced several challenges and risks in implementing programme activities. This section identifies them, including recommended actions and mitigation measures proposed by each unit.

Table 4.1: Challenges, Risk and Recommended Action/Mitigation Measures # Identified Description of Challenges and Recommended Actions by Risks and Mitigation Measures 1 DAE/GDA  Government counterpart staff  Ensure that Government counterpart are overloaded with work officials assigned in ASPIRE are given assignments as public officials specific workload priorities between and are also assigned jobs at actual job to be performed as public ASPIRE causing delay in servants and in implementing the programme implementation. Programme.  Budget provided does not come  Budget has to be carefully reviewed to on time and may not be ensure that it is adequate to support adequate to support the programmed activities. programmed activities.  Fieldwork activities for MAFF should not  Schedules with regular work at be in conflict with the activities for DAE/GDA and activities in ASPIRE. Clear work plan need to be ASPIRE are causing delays. prepared for each activity. 2 DPS  Slow progress on SAGE 50  The new Accounting Software must be implementation. carefully reviewed by the users. The  Expenditure rate is only 20%. software developer should conduct adequate training for the users.  DPS must ensure that programmed activities are delivered on time so that expenditure rate will increase. 3 NCDDS  Late fund transfer of PBCR  ASPIRE Secretariat must conduct a Grant to target communes in needs assessment, together with four target provinces. NCDDS, on the field requirements of  Delayed needs assessment staff and CEW on equipment, etc. in conducted by NCDDS and PADEE target province before the MTR MAFF on additional equipment Mission in August 2017. needed by CEW in the PADEE provinces, so as to prepare proposals for consideration by the MTR Mission. 4 Battambang  Delay in the implementation of  Ensure that programmed activities are programmed activities. planned adequately, with tools like monthly and weekly matrix monitoring and report to be submitted to Secretariat.  Conduct regular montly meeting to solve the challenge. 5 Kampong  Some DAO officers and CEWS  Procurement Unit of ASPIRE need to Chhnang have not yet received their accelerate the procurement of motorcycles. motorbikes and allow the provision of  For others that have the fuel for those that have motorbikes. motorbikes, they suggested for  DAO and CEWs should have meeting fuel support for field visits. with the Commune Council for the  First village meeting for SLG replacement of target villages. group formation for six villages  Accelerate the process of recruitment were delayed since some village for PME and MIS advisor to support members are not interested to PDAFF. attend, while some others were not invited.

45 # Identified Description of Challenges and Recommended Actions by Risks and Mitigation Measures  Lack of resource person (PME  DAE to conduct field visit and provide and MIS Advisor) for seven technical advise on the SLG formation months now. and FFS process.  Lack of technical support  DAO Support staff and CEW should provided by DAE on SLG review the SLG list and check for formation and FFS process. double-counting of members such as  There were 30 SLG members at wife and husband before finalizing the Peam Commune, Sameakki list to be sent to PDAFF. Chey district that were deleted  DAO support staff may use their own from the SLG database after personal computer and printer in the DAO group formation and respective target district, while waiting interview. for the procurement of computers and  Lack of computers and printers printers by the Secretariat. at the target districts of ASPIRE.  SOFDEC (contracted for seed  45 farmers involved with rice production) should ensure that they seed production has been provide service to the same target reduced by 5 farmers after the number of beneficiaries and to increase contracting out service was further the number of farmers to implemented. received rice seeds.  Because of the complication and  Speed up the procurement process for delay in the procurement in rice seed production activity and ensure contracting out for rice to have smooth and provide purification, postponement of implementation support to rice seed implementation will be done in producer group in giving sufficient time 2018. to prepare local farmers. 6 Kratie  One CEW of Koloab and Bosleav  Two CEWs of Koloab and Bosleav communes of Chetr Borei district communes of Chetr Borei district must be resigned recruited and replaced.  One newly-recruited CEW of  CEW of each target Kanhchor, Kakor, and Kanhchor commune passed away Preaek Saman communes must be recruited and other two newly-recruited and replaced. CEWs of Kakor and Preaek Saman  Fuel support must be provided to 24 newly- communes resigned recruited CEWs have used their own  24 newly-recruited CEWs have not motorcycle for daily task performance. yet received motorcycles.  Request ASPIRE Secretariat to accelerate  36 CEWs have not yet withdrawn the procurement process for motorcycles to their salary payment for 6 months increase the quality of service delivery and (Jan-Jun 2017). also prevent CEWs from resigning.  Difficulties in recruiting and seeking  Request NCDD-S to coordinate and for service providers within the accelerate the C/S financial procedure to province for the implementation of disburse the salary payment for 36 CEWs to contracting-out/PPP while call for increase the quality of service delivery and proposal was extended for two also prevent CEWs from resigning. times as announced in the  The single source selection method has Reaksmei Kampuchea and the been allowed to adopt based on meeting Cambodia Daily News. results of ASPIRE Sec., dated on June 8-9th,  Budget instalments to DAO/FFS 2017 and must be used to recruit activities might be late by each consultants that does not have enough phase (5 steps of FFS) while applicants. advance clearance are not made on  The advance request and clearance must be time. made on timely basis to ensure that  Some SLG members who remaining budget is still available and participated in FFS activities may sufficient for DAO/FFS activities. drop-off in the middle of the season  Any farmers or members of SLG’s due to migration or displacement to households living in target village should be seek for non-farm employment. selected and reserved as replacements for  Travel by small motor boats across resigning members. the large rivers along with  Have another alternate route to transport motorcycles to the target procured motorbikes, instead of using boats villages/communes of Sambo to cross large rivers. district, might have accidents by  The field work of CEWs and DAO/PDAFF chance. staffs during FFS in the target Kaoh Chbar

46 # Identified Description of Challenges and Recommended Actions by Risks and Mitigation Measures  Financial support for acquiring and Kampong Pnov villages of Kaoh materials, typical seeds, and Khnhaer commune, should be allowed to chickens to demonstration farmers have overnight allowance and be (from 10 to 15 members of 2nd-Year compensated consistent with i) MEF Prakas SLG as per guideline and USD$ No. 1589, dated 09/12/2014 and ii) RGC 600/SLG) will face budget shortage Sub-Decree No. 216, dated 21/07/2014 and not be responsive to the real  PDAFF marketing official and DAO production plan of selected marketing focal person as well as PDAFF producer group. technical support staffs should provide  FFS at far target villages (Kaoh technical support to producers group of Chbar and Kampong Pnov villages second year SLGs. of Kaoh Khnhaer commune are  Both DAO chief and CEWs should work in about distance of 74 Km away from closed cooperation with commune chief and PDAFF-KRT to FFS site) are village unit members to encourage and urge difficult to access in the rainy male participants to attend FFS more than season for CEWs and DAO/PDAFF female participants in each FFS’s learning technical support staffs to travel topic. back and forth due to bad road  Request ASPIRE Secretariat to accelerate conditions (including 3 streams or procurement of motorbikes for CEWs to bumpy earth/laterite roads) and no avoid resignation. overnight allowance is not allowed  Request NCDD-S to coordinate and or charged for PDAFF/DAO support accelerate the C/S financial procedure to staffs. disburse the salary payment for 36 CEWs to  The implementation of temporary increase the quality of service delivery and agreement which was signed also prevent CEWs from resigning. nd between producer groups of 2 -  Interview Panel, from NCDD and PDAFF, Year SLG and collectors/middlemen should review the possibility of the 2nd might not be adopted more potential candidate list toward selection and effectively due to price fluctuations. replacement.  Most of participants (SLG members) in the Farmer Field Schools (FFS) are females, who may not the sole decision makers in the household. Adoption of climate resilient agriculture technologies adaptation might be limited.  Delivery of 24 motorcycles to 24 CEWs may be delayed for the next semester of 2017 causing delay in activity monitoring.  Salary payment of 36 CEWs for 6- month periods (Jan-Jun 2017) will be postponed for the next semester of 2017.  4 trained CEWs ( Snuol: 1 , Sambo: 1, Chhloung : 2) working for ASPIRE have recently been elected as commune council member of 4th mandate commune council. 7 Preah Vihear  Delay in providing motorbikes to  Encourage CEWs to run activities without CEWs. motorbike  Difficulties in recruiting and seeking  The single source selection method has for service providers within the been allowed and should be used for province for the implementation of recruiting consultants that have few contracting-out/PPP while call for applicants. proposal was extended for two  Both DAO chief and CEWs should work in times through Reaksmei closed cooperation with commune chief and Kampuchea village unit members to encourage and urge  The most of participants (SLG male participants to attend FFS. members) of Farmer Field Schools  Technical supports of PDAFF/DAO nd (FFS) are females, so they mostly technical support staffs to 2 -Year SLG do not influence on decision- should consider more farmers based on making of their husband. Hereby, budget production plan. the possibility of climate resilient  The field work of DAO staffs during FFS in the Khompong Sraloav II commune, should be allowed to have overnight allowance and

47 # Identified Description of Challenges and Recommended Actions by Risks and Mitigation Measures agriculture technologies adaptation be compensated in consistent with i) MEF is really limited. Prakas No. 1589, dated 09/12/2014 and ii)  Financial supports such; materials, RGC Sub-Decree No. 216, dated typical seeds, and chickens to 21/07/2014 demonstration farmers (from 10 to  Request ASPIRE Sec. to accelerate the 15 members of 2nd-Year SLG as implementation of motorcycle procurement per guideline and USD$ 600/SLG) and provide them the motorcycle. will face budget shortage and not responsive to the real production plan of selected producer group.  Commune /FFS of target districts (Khompong Sraloav II commune about 70 Km away from DAO/ Chheb district, Yeang commune of 50 Km away from Choam Ksan, and FFS Chom Chek village , Sro Yong commune 40 km away for Kulen district ) are difficult to access during the rainy season and it will be in difficult for TOT / DAO technical support staffs to travel back and no overnight allowance allowed or charged for DAO support staffs.  Delay to delivery of 24 motorcycles to 24 CEWs. 8 Pursat  Procurement for contracting out is  Provide other options to shift to dry season taking a long process and may not rice and vegetable cultivations. be able to cope with the  Choose the right plots which have good seasonality of the some crops for sources of water for irrigation the crops. agricultural production.  Prepare the EOI and scope of works and  Guidelines for contracting out and drafting the process of PPP and PPP arrangements are not yet contracting with consultation with relevant available to provide PDAFF. stakeholders and approval from ASPIRE  Lacking of service providers for Secretariat contracting-out for rice seed  Request for delay or extension of the EOI producer groups. for announcement so that give sufficient  Delay in the implementation of times for other interested applicants. F2F network due to Lack of  Seek advice from ASPIRE for more Farmer to Farmer Learning guidance so that the DAO can start guidelines. activities.  One Contracting staff has  PDAFF selected the potential candidate resigned from DAO Bakan District. and negotiate the agreement to replace  Farmer starts late in the field immediately to assist the DAO and CEW. demonstration on seasonal rice  PDAFF technical staff and DAO officers crops which is expected to reduce proposed for possible actions to start the yield and productivity. preparing land and rice planting be done  Support to poor 1 and 2 farmers to earlier so that the rice plant will have the do replicate activities in return to resilience and capacity to cope with climate low rate for a commercial risks and pest or diseases. business and fluctuating prices of  PDAFF ASPIRE need discussion with the commodities. non-demo-farmer smallholders farmers  Low input investment from who do not a farmers demo learning and programme to support 2nd year practices like the learning demo and start SLG and in supporting to invest in small resources they have to that they experiences and scale-up once commercial business to feed for success. 10-15 members as per guideline  PDAFF/marketing team and DAO officers within the amount US$600/SLG. negotiate with farmers for co-investment of 2nd year SLG so that the required materials and seeds/chicken breeds and specific technical needs are responsive to market demands and profitable in the long run.

48 V. LESSONS LEARNED

In the course of implementing planned activities in ASPIRE we have learned some lessons. These are essential in planning our way forward. Below is the narrative summary of the lessons learned.

 Inadequate capacity in participatory approaches: Initially, the project management team were made to understand that the districts (DAO) have got adequate capacity to facilitate the community-driven development process. In the course of implementing the project activities in the Programme, we have discovered that there is great variability in districts’ experiences in the new approaches on agricultural extension services. There are districts which have gone through the project development planning process have more experience and skills than those which have not. Inadequate experiences in the participatory approaches have to a great extent delayed the implementation speed in some districts. Meanwhile, farmer participation in agricultural extension development activities are processes that require more time and committed practitioners who believe in participatory approaches. With time, people keep on learning and improve their skills and performance. This is a typical feature in community-driven development where people learn by doing. More time is still required to allow those with little experience to cope up.  Enormous capacity lies with farmers: A lot of capacity is available among rural communities, specifically among the smallholders themselves. If given an opportunity they can undertake the agricultural extension exercises in farmer field schools and SLGs, identify problems limiting productivity, participate in the preparation of fundable proposals and implement them at low financial costs. However, these potentials that rest with smallholder farmers have not been fully taped and utilized by the district staff.  District staff not used to work under minimum supervision: Some district-level staff can not work without close follow-up from the PDAFF or from the DAE/GDA. This together with inadequate follow-ups from the PDAFF is some of the major factors leading to delayed submission of reports and other information gathered by CEWs. A program for backstopping the district staff must be prepared.  Farmers are aggressive in demanding services: When farmers are well facilitated they become aggressive in demanding more agricultural extension services and speeding the process. They usually approach DAO officers to demand services that they are entitled to. This gives a feeling that if empowered farmers can lead the process in improving agricultural productivity.  Public-private sector partnership: One of ASPIRE’s specific programmed activities is to promote production and productivity by promoting the use of improved technologies through public and private sector partnership. The private sector is hereby seen as instrumental in selling and buying inputs and outputs, respectively. If the private sector is empowered to provide services its contribution could be enormous. Unfortunately, the private sector is still not keen of having partnership with the public sector such as MAFF in country, since they are mostly perceived by many as the source of farmer exploitation. Conversely, a good number of the PDAFF and district staff are still not fully guided since PPP guidelines have not been adopted and not fully in place. Hence, PDAFF and DAO have not yet appreciated that farmers also constitute the private sector and that private sector participation in project implementation is necessary. Failure to appreciate the role of the private sector in agricultural sector jeopardizes efforts to improve productivity and the implementation speed of project activities at district and commune levels. Additional training workshops on PPP must be undertaken once the guidelines and framework have been approved.  Environmental and social management: It has been observed that some programmed activities in PDAFF, specifically for contracting out arrangement have been submitted to PDAFF and ASPIRE Secretariat for funding are directly or indirectly related to the environment and have social implications on farming communities. To avoid future negative environmental and social impacts more emphasis will be placed on environmental and social issues than ever. All districts must be directed to adhere to the social and environmental checklists that have been prescribed by the Ministry of Environment and must be included in the training being conducted at FFS.  Progress Reporting: Programme implementation reports done on semi-annual basis that include both financial, procurement, and activities report are important. Some difficulties have been experienced in getting quality and timely reports from the various levels in PDAFF despite constant reminders for submitting these reports. To overcome this problem simple reporting formats have been designed to assist in preparing quality reports within agreed period.

VI. FOLLOW-UP ACTIONS AND WAY FORWARD

The original plan of national and provincial level activities of ASPIRE for the second half of 2017 will be revised to accommodate recommendations of the IFAD Implementation Support Mission (ISM) in May 2017. Annex A provides the detailed national and provincial level activities to be implemented during the period from June to December 2017 and even beyond. Provided in the table below are some of the Agreed Actions towards Strategic Programme Management by the IFAD ISM Team, the comments provided by the ASPIRE management team, and the implementation units:

Table 6.1 Agreed Actions Towards Strategic Programme Management AGREED ACTION DEADLINE/COMMENTS I. TOWARDS STRATEGIC PROGRAMME MANAGEMENT Strategic management target 1: Increase ASPIRE ownership. 1. ASPIRE Programme Director and Programme 1 June 2017 Managers will promote wide staff participation in ASPIRE implementation (and in the reform 1. Agreements: Regular meetings will process) through information, interaction and be undertaken monthly among Officers and Staff of ASPIRE and TA regular staff and TA meetings to discuss to discuss achievements, gaps, and achievements and gaps and collectively plan collectively plan for corrective actions. activities and remedial action; In another meeting on 29 June 2017, 2. MAFF will appoint a qualified staff to become Mr. Kimthourn encouraged all implementation agencies to plan and MAFF Deputy to the Programme Manager of conduct monthly meetings and send Component 2, who will be in charge of orienting the minutes of meeting to PSU for and overseeing Component 2 day-to-day consolidation before sharing them with activities, providing timely feedback and approval. IFAD. The MAFF Deputy will replace the current Deputy 2. MAFF Deputy Programme Manager Programme Manager/Extension, whose contract – Dr. Mak Soeun recommended for will not be renewed; the announcement on a competitive 3. The Programme Manager/Support Secretariat will basis for this position among officials and staff at GDA/MAFF. Agreement: organise meetings with every Implementing By the end of June 2017, an official of Agency Team to clarify the process for GDA will be appointed for the position expenditure approval and cash advance, in line of ASPIRE Deputy Programme with the Financial Manual; Manager for extension. H.E. Mam Amnot suggested that the appointment 4. All Programme Managers will be responsible for will be signed by the Minister of MAFF. ensuring that TAs have the right environment to In the meeting on 29 June 2017, it was deliver outputs as foreseen in their terms of announced that Mr. Chay Koung Kruy reference. Therefore Programme Managers will: was assigned as deputy program (i) appoint counterparts to work jointly with TAs manager replacing Mr. Chin Samouth, and ensure that they have available time to do so; starting 21 June 2017. (ii) clarify working relationships between TA and 3. Clarification of the process for MAFF, and between national and international expenditure approval and cash TAs, including reporting lines; (iii) define, in advance – The Secretariat has writing, clear and fast approval processes for TA already organized meeting with intermediary outputs and for obtaining MAFF implementing agency on this approval inputs and resources; (iv) improve the planning of process. However, if in previous transport so that TA have access to transport, in meetings the IAs did not fully particular for trips outside of Phnom Penh; and understand the financial management (v) ensure fast access to translation – to this effect process, it was proposed to organize it was agreed that the translation contract will start additional meetings. In the meeting on 29 June 2017, Mr. Kimthourn informed by the first week of June; that the Finance and Administration 5. Furthermore, the Secretariat Support Team, in Officers of PDAFF and other consultation with ASPIRE Programme Advisor, implementing units attended a financial management and will amend the contracts of TA who were disbursement training at the PSU on requested to undertake tasks in addition to 19 June 2017 in order to have better their TOR, so that they have a total number of understanding on how to manage the days allowing to complete those as well as tasks financial process. Mr. Kimthourn also originally in their TOR. This is in particular the informed that the implementation case for the International Extension Knowledge agencies were confused on how to use the petty cash. He stressed that if

50 AGREED ACTION DEADLINE/COMMENTS Management and ICT Adviser and for the the expenditure is lower than $500, International MIS Specialist, whose TOR have the implementation agencies does not been expanded and modified following informal need to seek approval from PSU or agreement with management. Their contracts will from the program director. However, be urgently revised to reflect modified TOR and they still have to flow the prescribed procedures in financial and additional days accordingly. Furthermore, the procurement management, as per the International MIS Specialist will not be requested standard operating procedures to come back to Phnom Penh until the national adapted by MEF in 2012. and international M&E Specialists and national Agreement: The ASPIRE MIS Specialist are on board and the former have Secretariat will organize another sets provided an outline of the M&E system; of meetings to all implementing agencies to clarify expenditure 6. KM will be used as a tool to build cohesion and approval process, including cash motivation, by widely sharing case studies, advance. lessons learnt, good practices…when they will be 4. Creation of Conducive Working available. Environment for TAs to deliver outputs: Upon consultation with the international and national TA participants, the following were agreed that All programme managers will: (a) immediately appoint counterparts to assist the international advisors in conducting interviews, surveys, or other requirements of their assignments; (b) provide the necessary orientation before they start their assignment, including reporting lines and providing the necessary resources; (c) define the approval process required of the outputs produced, including concept notes; (d) immediately inform them on how to request for transportation in their provincial trips, which must be made a week in advance before their travel; and (e) immediately assist them in translation requirements since the ASPIRE Secretariat has already acquired a firm to undertake translation services. However, the Programme Director and Managers reminded the consultants to comply with the standard operating procedures, specifically in requesting for advances for meetings, travels, and seminars. Dr. Mak Soeun also reminded the TAs that most of them were contracted on lump-sum basis, thus, most of the resources that they need must be financed from their payments. Mr. Kimthourn stressed that the Programme needs an improvement in the communications process and better teamwork. He recommended that there should be a government official that will speed up the approval process of the requirements of consultants, as well as of the Programme to improve disbursements and operational efficiency. In the meeting on 29 June, 2017, the following were discussed and agreed:  Dr. Mak Souen requested Dr. Lee to request the international TA to submit

51 AGREED ACTION DEADLINE/COMMENTS their respective Work Plan and any request for any counterpart support from the national consultants and government counterparts in advance. He said that the national consultants and counterparts need to know in advance the requirements of the international consultants so that they can also count these requirements as part of their work activities in the forthcoming periods. .  Mr. Mony from DPS suggested that assignment of MAFF staff to any activities in ASPIRE should require clearance from their respective departments or units, otherwise they will be overloaded with work assignments without any incentive.  Mr. Kimthourn mentioned that if in case a national TA needs to work with international TA, it has to be informed in advance, since the activity may not be supported by any budget in the approved AWPB. He warned that without doing this, PSU will be proceeding with the wrong procedure, and their actions might be considered illegal under auditing rules.  Mr. Saytom responded to the transportation issues. The current situation at DAE is that it only have two cars. Thus, for international TAs that need to travel to the province, they should request in advance in order to allocate the cars to the persons who have provided request in advance. If cannot be accommodated by the two cars, DAE might rent a car for their use. 5. Amendments of Contracts of Some Consultants: The Programme Advisor has discussed one of the concerns of the international TAs on the different types of contract being used at ASPIRE: fixed term, time- based, and lump-sum assignments. He said that most of the International TAs have been appointed on output based payment terms. The IFAD Mission Team has noted that the contract for the output based contracts was ambiguous in regard to terms of payment. The International Knowledge Management and ICT Adviser cited the following examples: “In Clause B (i) of the agreement it is stated that “the payment will be made at fixed intervals in daily basis and some outputs can also be defined in the TOR as below” whereas Clause D of the agreement states “Payment shall be made in US Dollar no later than 30 calendar days following submission by the Consultant of the invoices in

52 AGREED ACTION DEADLINE/COMMENTS duplicate to the coordinator designated in paragraph. The client shall pay the Consultant at the end of Task (Scope of Work)/ Deliverables the remuneration fee at the amount calculated based on mentioned the above point B: Schedule of Payments for remuneration upon submission of reports/ outputs and upon endorsement by the client’s Program Manager respectively.” He also added that “in the same agreement in one clause it is mentioned that the payment shall be made at fixed intervals whereas in the other clause it is mentioned that the payment will be made on submission of invoice at the end of the task/ outputs and upon endorsement of the program manager. These are contradictory and need to be amended suitably as fixed intervals does not mean payment on deliverables but a fixed time period such as monthly, quarterly etc.’’ Some of the TAs added that they have “heard of an output based contract but have not heard of an output/time based contract which is contradictory to the nature of work.” Agreements: The Programme Director directed the ASPIRE Secretariat and GDA to review the contracts of the International Management and ICT Adviser and the International MIS Adviser, as well as other contracts that have contradictory clauses and provisions and revise them accordingly. On the issue of return of the International MIS Advisor, he said that he will be recalled now since the M & E Manual is about to be completed before the end of June 2017 and that a Validation Workshop will be undertaken in July wherein the newly recruited National M & E and MIS Consultants will participate, together with the International M & E Advisor who will also facilitate the Validation Workshop of the M & E Manual, together with the Programme Advisor/Team Leader. In another meeting on 29 June 2017, the following were discussed and agreed:  Mr.Rotha informed that new TOR has been revised for international KM, and the contract variation has been issued for approval by both parties (i.e. international Knowledge Management and ICT adviser and the Program Director.)  Mr. Kimthourn has informed that the international MIS consultant has confirmed his arrival to assume his duties and to attend the National

53 AGREED ACTION DEADLINE/COMMENTS Validation Workshop on M & E and Knowledge Management. He added that if by Monday next week he will not arrive in Cambodia, he informed that ASPIRE send the termination letter to him. He also informed that the national MIS will be on board soon 6. Knowledge Management, Case Studies, Lessons Learned: It was reiterated by the Programme Advisor that each PDAFF has to produce case studies per year which must be sent to donor partners. The Knowledge Management Advisors and Communications Consultant were asked to assist the PDAFF in the development of case studies and lessons learned, specifically on the preparation of success stories that will be focused more on market improvement and livelihood and not only improvement in production. Agreement: The National Knowledge Management and Communications Advisor will have to meet next week with the Programme Advisor/Team Leader in the preparation of a Knowledge Management Plan, including the preparation of case studies, which must not be longer than 50 pages. Developments: The Framework in Developing the Knowledge Management Handbook of ASPIRE was presented to PDAFF and other participants in the Validation Workshop on M & E and Knowledge Management in Kampong Cham on July 7, 2017. Strategic management target 2: Improve ASPIRE strategic steering 1. Programme Managers will be using the AWPB 1 June 2017 as a strategic planning tool. To this effect, under the leadership of the Programme Director and with 1. Regular Meeting – In reviewing the support from the ASPIRE Programme Advisor, the achievements of the AWPB in 2017, the Programme Director directed all AWPB will be translated into coordinated, monthly implementing units to organize regular targets and programme of activities, which will be monthly meetings to chart the monthly reviewed through monthly meetings. Adjustments targets and activities. He reminded will be operated as needed to reflect new that the AWPB for 2017 is a living requirements as it is confirmed that the AWPB is a document which can be revised if flexible document; there is a need for revision by the operating units. The Programme 2. The M&E system will be set up with no further Advisor will attend and monitor these delays and will be used as a management tool meetings, and corresponding reports and report against its programme logframe. To and minutes will have to be prepared. this effect, the Secretariat Support Team will In the meeting on 29 June 2017, the speed up the recruitment of the national M&E following were discussed and agreed: Specialist and the national MIS Specialist, who are  Mr. Tom and Mr. Sovantha raised the expected to be on board by September 2017. same question about some The international M&E Specialist will be asked to recommendations from IFAD ISM that resume his work immediately or his contract will does not correspond with AWPB 2017. be terminated and a new recruitment will be Both of them asked, “It is possible to launched, starting from the list of qualifying spend savings from various items in candidates already available. The M&E manual to the budget or not?” be produced by TA will include a section on how  Mr. Kimthourn advised that if the to use M&E as a management tool and will implementation agencies still have

54 AGREED ACTION DEADLINE/COMMENTS propose specific tools for the purpose (such as remaining funs under previous dashboards); activities, he said that the PSU can flexible to allow implementation units 3. The ASPIRE Programme Advisor will be or agencies to spend savings from empowered to play his role in supporting other account or budget lines. ASPIRE effective management, in line with his However, before the PSU can allow TOR. this, a no objection to IFAD will be required.  Ms. Samnang informed that the DAE team is currently reviewing the AWBP 2017 by conducting a refresher training course. Mr. Top proposed to conduct refresher training in July and October.

2. M & E System – Mr. Kimthourn reported that the M & E System and Manual is now currently being prepared by the Programme Advisor and the International M & E Advisor (who is now in Lao PDR). The Programme Advisor informed that the M & E Manual is expected to be completed before the end of June and a Validation Workshop is to be organized with GDA and PDAFF in July 2017. He also reported that the National M & E Advisor are about to be on board in June 2017, while the National MIS Advisor is now under shortlisting and is expected to be on board by July 2017. Developments: The ASPIRE Monitoring, Evaluation, Accountability, and Learning (MEAL System) was validated in a National Workshoip in Kampong Cham from July 3 to 7, 2017 attended by PDAFF, PADEE, GDA, NCDD, SNEC, and Secretariat representatives. Forms and Reports templates were finalized during the Workshop. The International MIS Consultant attended the Workshop. 3. In empowering the ASPIRE Programme Advisor/Team Leader, the Programme Director informed that he will send notification to all IAs on the additional roles to be performed by the Programme Advisor. He added that the Secretariat will send the notification letters to all stakeholders by second week of June 2017. Mr. Kimthourn requested Dr. Lee to prepare a revised TOR to cover additional support to the four components. Strategic management target 3: Promote delegation of responsibilities and trust The Programme Director, with support from the mid-June 2017 Programme Manager/Secretariat Support Team and Delegation of authorities and the ASPIRE Programme Advisor, will clarify responsibilities: The Programme streamlined authority chains and decision-making Director requested the Secretariat to draft processes to foster increased autonomy of and the guidelines on the delegation of authorities and responsibilities with the delegation of responsibilities to Implementing Agents assistance of the Programme Advisor. He for faster and more efficient delivery of outputs said that the guidelines must ensure for identified in the AWPB. The improved set-up, which faster and more efficient delivery of

55 AGREED ACTION DEADLINE/COMMENTS will be in line with IFAD rules and regulations for outputs, and efficient implementation of financial management and procurement, will minimise financial management and procurement ex-ante control and will clarify explicit modalities operation. Developments: The whereby the Secretariat Support Team will shift from delegation of authorities and its current mode of operation to a role of facilitation responsibilities related to procurement and finance has been drafted and ready for and support. discussion. However the delegation of authorities and responsibilities for Officers, staff and consultants of ASPIRE will have to be prepared by second week of July 2017. Strategic management target 4: Develop team building. 1. In line with H.E. the Minister of MAFF request, the June 2017 Programme Director will convene Monthly Programme Meetings with Programme Managers, 1. Monthly Meetings: It was agreed national implementing agents external to MAFF during the meeting that the Programme Director will conduct (SNEC, RUA, Prek Leap Agricultural Technical monthly meetings among national College, NCDD-S) and the ASPIRE Programme implementing agencies, with the Advisor, to discuss programme progress, address assistance of the Programme Advisor, shortcomings and plan key actions for the month. with Minutes to be sent to IFAD. Every other month, the Monthly Programme 2. GDA Meetings For GDA/DAE, Meeting will include some or all of the PDAFF monthly meetings with the directors. Minutes of every Monthly Programme implementation team and other Meeting will be sent to IFAD. stakeholders are regularly being conducted to capture the progress 2. Similarly, GDA will organise monthly meetings and resolve pending issues. with all ASPIRE stakeholders, including national and international TA, with similar purposes and the TA team will also meet on a monthly basis. Minutes of the meetings, specifying actions to be taken with appropriate timeframes, will be established in English and will be shared with the Programme Director and with IFAD. Strategic management target 5: Improve efficiency in financial management and procurement Agreed Actions Deadline/Comments 1. Submit WA for Loan funds as soon as 75% of the Immediately. The following were noted earlier advance is utilized. As on April 30, 2017 it is and discussed during the meeting: Mr. USD 40,000 short of 75%. Kimthourn informed that all 2. Improving the fund flow situation. recommendations of IFAD has been 3. Increase the pace of project activities to maximize responded well related to financial budget utilization by the end of the year. management. 4. Expedite the procurement process and discontinue with the written tests for short term consultants. 1. Submission of Withdrawal Application. ASPIRE Secretariat has 5. Ensure more realistic planning and budgeting in AWPB. already sent to MEF the WA. Rely on TA for the purpose of better estimating the 2. Improvements in Funds Flow costs. Situation. It was noted by the Make use of technical specialists in procurement 6. Programme Director in the meeting process for providing technical specifications and for that unless reduction in the 75% bid evaluation too. expenditures before a WA can be 7. Expedite the filling up of all vacant positions. processed, funds flow problem will still 8. Amend the TA contracts to suppress contradictory exist. However, it was agreed that all clauses implementing units will have to alert 9. Ensure that the Programme Financial Statement and the ASPIRE Secretariat of any funds the audit report are in accordance with the IFAD flow problem, so that appropriate Guidelines on Project Audit action will be undertaken. 10. Initiate internal audit process and hire a private firm to 3. Disbursements: The Program support it Director reminded everybody to expedite the implementation of activities in order to ensure that utilization of funds are undertaken quickly together with the implementation of planned activities.

56 AGREED ACTION DEADLINE/COMMENTS 4. Procurement: The Procurement Unit informed that they have already waived the written examinations for short-term consultants. 5. Realistic Planning and Budgeting in AWPB: It was agreed in the meeting that TAs will provide assistance to Procurement Team in preparing better estimates for the various technical requirements of the Project. 6. Procurement Process: TAs will be consulted to prepare technical specifications and also in evaluation of bids. The Programme Director said that this activity is not done every day, and TAs are expected to be flexible to assist in this activity 7. Filling Up of Vacant Positions. The Procurement Unit reported that almost all vacant positions have been advertised and in the process of recruitment. 8. Revision of TA Contracts: It was agreed in the meeting that all TA contracts will be reviewed by Procurement Unit to amend those that have contradictory clauses. 9. Audit of financial statements: The Programme Manager for the Secretariat and Support Services informed that financial audit has been completed. 10. Internal Audit: It was informed that Internal audit, for Component 2 has been completed. It was encouraged that all implementing agencies will have to hire their own internal auditors, specifically for grants mechanism.

57 ANNEX A: AGREED ACTIONS AND NEXT STEPS IFAD IMPLEMENTATION SUPERVISION MISSION FINDINGS AND RECOMMENDATIONS (ASPIRE TECHNICAL MEETING – JUNE 8-9, 2017, TONLE BASSAC II RESTAURANT)

AGREED ACTION DEADLINE/COMMENTS I. TOWARDS STRATEGIC PROGRAMME MANAGEMENT Strategic management target 1: Increase ASPIRE ownership. 1. ASPIRE Programme Director and Programme 1 June 2017 Managers will promote wide staff participation in ASPIRE implementation (and in the reform 1. Agreements: Regular meetings will be process) through information, interaction and undertaken monthly among Officers and regular staff and TA meetings to discuss Staff of ASPIRE and TA to discuss achievements, gaps, and collectively achievements and gaps and collectively plan plan for corrective actions. In another activities and remedial action; meeting on 29 June 2017, Mr. Kimthourn 2. MAFF will appoint a qualified staff to become encouraged all implementation agencies MAFF Deputy to the Programme Manager of to plan and conduct monthly meetings Component 2, who will be in charge of orienting and send the minutes of meeting to PSU and overseeing Component 2 day-to-day activities, for consolidation before sharing them providing timely feedback and approval. The MAFF with IFAD. Deputy will replace the current Deputy Programme 2. MAFF Deputy Programme Manager – Manager/Extension, whose contract will not be Dr. Mak Soeun recommended for the renewed; announcement on a competitive basis for this position among officials and staff at 3. The Programme Manager/Support Secretariat will GDA/MAFF. Agreement: By the end of organise meetings with every Implementing Agency June 2017, an official of GDA will be Team to clarify the process for expenditure appointed for the position of ASPIRE approval and cash advance, in line with the Deputy Programme Manager for Financial Manual; extension. H.E. Mam Amnot suggested 4. All Programme Managers will be responsible for that the appointment will be signed by the ensuring that TAs have the right environment to Minister of MAFF. In the meeting on 29 deliver outputs as foreseen in their terms of June 2017, it was announced that Mr. reference. Therefore Programme Managers will: (i) Chay Koung Kruy was assigned as appoint counterparts to work jointly with TAs and deputy program manager replacing Mr. Chin Samouth, starting 21 June 2017. ensure that they have available time to do so; (ii) 3. Clarification of the process for clarify working relationships between TA and expenditure approval and cash MAFF, and between national and international TAs, advance – The Secretariat has already including reporting lines; (iii) define, in writing, clear organized meeting with implementing and fast approval processes for TA intermediary agency on this approval process. outputs and for obtaining MAFF inputs and However, if in previous meetings the IAs resources; (iv) improve the planning of transport so did not fully understand the financial that TA have access to transport, in particular for management process, it was proposed to trips outside of Phnom Penh; and (v) ensure fast organize additional meetings. In the access to translation – to this effect it was agreed meeting on 29 June 2017, Mr. Kimthourn informed that the Finance and that the translation contract will start by the first Administration Officers of PDAFF and week of June; other implementing units attended a 5. Furthermore, the Secretariat Support Team, in financial management and disbursement consultation with ASPIRE Programme Advisor, training at the PSU on 19 June 2017 in will amend the contracts of TA who were order to have better understanding on requested to undertake tasks in addition to their how to manage the financial process. TOR, so that they have a total number of days Mr. Kimthourn also informed that the allowing to complete those as well as tasks implementation agencies were confused originally in their TOR. This is in particular the case on how to use the petty cash. He for the International Extension Knowledge stressed that if the expenditure is lower than $500, the implementation agencies Management and ICT Adviser and for the does not need to seek approval from International MIS Specialist, whose TOR have been PSU or from the program director. expanded and modified following informal However, they still have to flow the agreement with management. Their contracts will prescribed procedures in financial and be urgently revised to reflect modified TOR and procurement management, as per the additional days accordingly. Furthermore, the standard operating procedures adapted International MIS Specialist will not be requested to by MEF in 2012. Agreement: The come back to Phnom Penh until the national and ASPIRE Secretariat will organize another sets of meetings to all implementing

58 AGREED ACTION DEADLINE/COMMENTS international M&E Specialists and national MIS agencies to clarify expenditure approval Specialist are on board and the former have process, including cash advance. provided an outline of the M&E system; 4. Creation of Conducive Working 6. KM will be used as a tool to build cohesion and Environment for TAs to deliver motivation, by widely sharing case studies, lessons outputs: Upon consultation with the international and national TA learnt, good practices…when they will be available. participants, the following were agreed that All programme managers will: (a) immediately appoint counterparts to assist the international advisors in conducting interviews, surveys, or other requirements of their assignments; (b) provide the necessary orientation before they start their assignment, including reporting lines and providing the necessary resources; (c) define the approval process required of the outputs produced, including concept notes; (d) immediately inform them on how to request for transportation in their provincial trips, which must be made a week in advance before their travel; and (e) immediately assist them in translation requirements since the ASPIRE Secretariat has already acquired a firm to undertake translation services. However, the Programme Director and Managers reminded the consultants to comply with the standard operating procedures, specifically in requesting for advances for meetings, travels, and seminars. Dr. Mak Soeun also reminded the TAs that most of them were contracted on lump-sum basis, thus, most of the resources that they need must be financed from their payments. Mr. Kimthourn stressed that the Programme needs an improvement in the communications process and better teamwork. He recommended that there should be a government official that will speed up the approval process of the requirements of consultants, as well as of the Programme to improve disbursements and operational efficiency. In the meeting on 29 June, 2017, the following were discussed and agreed:  Dr. Mak Souen requested Dr. Lee to request the international TA to submit their respective Work Plan and any request for any counterpart support from the national consultants and government counterparts in advance. He said that the national consultants and counterparts need to know in advance the requirements of the international consultants so that they can also count these requirements as part of their work activities in the forthcoming periods. .  Mr. Mony from DPS suggested that assignment of MAFF staff to any activities in ASPIRE should require clearance from their respective departments or units, otherwise they will

59 AGREED ACTION DEADLINE/COMMENTS be overloaded with work assignments without any incentive.  Mr. Kimthourn mentioned that if in case a national TA needs to work with international TA, it has to be informed in advance, since the activity may not be supported by any budget in the approved AWPB. He warned that without doing this, PSU will be proceeding with the wrong procedure, and their actions might be considered illegal under auditing rules.  Mr. Saytom responded to the transportation issues. The current situation at DAE is that it only have two cars. Thus, for international TAs that need to travel to the province, they should request in advance in order to allocate the cars to the persons who have provided request in advance. If cannot be accommodated by the two cars, DAE might rent a car for their use. 5. Amendments of Contracts of Some Consultants: The Programme Advisor has discussed one of the concerns of the international TAs on the different types of contract being used at ASPIRE: fixed term, time-based, and lump-sum assignments. He said that most of the International TAs have been appointed on output based payment terms. The IFAD Mission Team has noted that the contract for the output based contracts was ambiguous in regard to terms of payment. The International Knowledge Management and ICT Adviser cited the following examples: “In Clause B (i) of the agreement it is stated that “the payment will be made at fixed intervals in daily basis and some outputs can also be defined in the TOR as below” whereas Clause D of the agreement states “Payment shall be made in US Dollar no later than 30 calendar days following submission by the Consultant of the invoices in duplicate to the coordinator designated in paragraph. The client shall pay the Consultant at the end of Task (Scope of Work)/ Deliverables the remuneration fee at the amount calculated based on mentioned the above point B: Schedule of Payments for remuneration upon submission of reports/ outputs and upon endorsement by the client’s Program Manager respectively.” He also added that “in the same agreement in one clause it is mentioned that the payment shall be made at fixed intervals whereas in the other clause it is mentioned that the payment will be made on submission of invoice at the end of the task/ outputs and upon endorsement of the program manager. These are contradictory and

60 AGREED ACTION DEADLINE/COMMENTS need to be amended suitably as fixed intervals does not mean payment on deliverables but a fixed time period such as monthly, quarterly etc.’’ Some of the TAs added that they have “heard of an output based contract but have not heard of an output/time based contract which is contradictory to the nature of work.” Agreements: The Programme Director directed the ASPIRE Secretariat and GDA to review the contracts of the International Management and ICT Adviser and the International MIS Adviser, as well as other contracts that have contradictory clauses and provisions and revise them accordingly. On the issue of return of the International MIS Advisor, he said that he will be recalled now since the M & E Manual is about to be completed before the end of June 2017 and that a Validation Workshop will be undertaken in July wherein the newly recruited National M & E and MIS Consultants will participate, together with the International M & E Advisor who will also facilitate the Validation Workshop of the M & E Manual, together with the Programme Advisor/Team Leader. In another meeting on 29 June 2017, the following were discussed and agreed:  Mr.Rotha informed that new TOR has been revised for international KM, and the contract variation has been issued for approval by both parties (i.e. international Knowledge Management and ICT adviser and the Program Director.)  Mr. Kimthourn has informed that the international MIS consultant has confirmed his arrival to assume his duties and to attend the National Validation Workshop on M & E and Knowledge Management. He added that if by Monday next week he will not arrive in Cambodia, he informed that ASPIRE send the termination letter to him. He also informed that the national MIS will be on board soon 6. Knowledge Management, Case Studies, Lessons Learned: It was reiterated by the Programme Advisor that each PDAFF has to produce case studies per year which must be sent to donor partners. The Knowledge Management Advisors and Communications Consultant were asked to assist the PDAFF in the development of case studies and lessons learned, specifically on the preparation of success stories that will be focused more on market improvement and livelihood and not only improvement in production. Agreement: The National Knowledge

61 AGREED ACTION DEADLINE/COMMENTS Management and Communications Advisor will have to meet next week with the Programme Advisor/Team Leader in the preparation of a Knowledge Management Plan, including the preparation of case studies, which must not be longer than 50 pages. Developments: The Framework in Developing the Knowledge Management Handbook of ASPIRE was presented to PDAFF and other participants in the Validation Workshop on M & E and Knowledge Management in Kampong Cham on July 7, 2017. Strategic management target 2: Improve ASPIRE strategic steering 1.Programme Managers will be using the AWPB as 2 June 2017 a strategic planning tool. To this effect, under the leadership of the Programme Director and with support 1. Regular Meeting – In reviewing the from the ASPIRE Programme Advisor, the AWPB will achievements of the AWPB in 2017, the be translated into coordinated, monthly targets and Programme Director directed all implementing units to organize regular programme of activities, which will be reviewed through monthly meetings to chart the monthly monthly meetings. Adjustments will be operated as targets and activities. He reminded that needed to reflect new requirements as it is confirmed the AWPB for 2017 is a living document that the AWPB is a flexible document; which can be revised if there is a need for revision by the operating units. The 2.The M&E system will be set up with no further Programme Advisor will attend and delays and will be used as a management tool and monitor these meetings, and report against its programme logframe. To this effect, corresponding reports and minutes will the Secretariat Support Team will speed up the have to be prepared. In the meeting on 29 recruitment of the national M&E Specialist and the June 2017, the following were discussed national MIS Specialist, who are expected to be on and agreed: board by September 2017. The international M&E  Mr. Tom and Mr. Sovantha raised the Specialist will be asked to resume his work immediately same question about some or his contract will be terminated and a new recruitment recommendations from IFAD ISM that will be launched, starting from the list of qualifying does not correspond with AWPB 2017. candidates already available. The M&E manual to be Both of them asked, “It is possible to produced by TA will include a section on how to use spend savings from various items in the M&E as a management tool and will propose specific budget or not?” tools for the purpose (such as dashboards);  Mr. Kimthourn advised that if the 3. The ASPIRE Programme Advisor will be implementation agencies still have empowered to play his role in supporting ASPIRE remaining funs under previous activities, he said that the PSU can effective management, in line with his TOR. flexible to allow implementation units or agencies to spend savings from other account or budget lines. However, before the PSU can allow this, a no objection to IFAD will be required.  Ms. Samnang informed that the DAE team is currently reviewing the AWBP 2017 by conducting a refresher training course. Mr. Top proposed to conduct refresher training in July and October.

62 AGREED ACTION DEADLINE/COMMENTS a Validation Workshop is to be organized with GDA and PDAFF in July 2017.10 He also reported that the National M & E Advisor are about to be on board in June 2017, while the National MIS Advisor is now under shortlisting and is expected to be on board by July 2017. Developments: The ASPIRE Monitoring, Evaluation, Accountability, and Learning (MEAL System) was validated in a National Workshoip in Kampong Cham from July 3 to 7, 2017 attended by PDAFF, PADEE, GDA, NCDD, SNEC, and Secretariat representatives. Forms and Reports templates were finalized during the Workshop. The International MIS Consultant attended the Workshop. 3. In empowering the ASPIRE Programme Advisor/Team Leader, the Programme Director informed that he will send notification to all IAs on the additional roles to be performed by the Programme Advisor. He added that the Secretariat will send the notification letters to all stakeholders by second week of June 2017. Mr. Kimthourn requested Dr. Lee to prepare a revised TOR to cover additional support to the four components. Strategic management target 3: Promote delegation of responsibilities and trust The Programme Director, with support from the mid-June 2017 Programme Manager/Secretariat Support Team and Delegation of authorities and the ASPIRE Programme Advisor, will clarify responsibilities: The Programme streamlined authority chains and decision-making Director requested the Secretariat to draft processes to foster increased autonomy of and the guidelines on the delegation of authorities and responsibilities with the delegation of responsibilities to Implementing Agents assistance of the Programme Advisor. He for faster and more efficient delivery of outputs said that the guidelines must ensure for identified in the AWPB. The improved set-up, which will faster and more efficient delivery of be in line with IFAD rules and regulations for financial outputs, and efficient implementation of management and procurement, will minimise ex-ante financial management and procurement control and will clarify explicit modalities whereby the operation. Developments: The Secretariat Support Team will shift from its current delegation of authorities and mode of operation to a role of facilitation and support. responsibilities related to procurement and finance has been drafted and ready for discussion. However the delegation of authorities and responsibilities for Officers, staff and consultants of ASPIRE will have to be prepared by second week of July 2017. Strategic management target 4: Develop team building. 1.In line with H.E. the Minister of MAFF request, the June 2017 Programme Director will convene Monthly Programme Meetings with Programme Managers, national 1.Monthly Meetings: It was agreed implementing agents external to MAFF (SNEC, RUA, during the meeting that the Programme Prek Leap Agricultural Technical College, NCDD-S) Director will conduct monthly meetings among national implementing agencies, and the ASPIRE Programme Advisor, to discuss with the assistance of the Programme programme progress, address shortcomings and plan Advisor, with Minutes to be sent to IFAD. key actions for the month. Every other month, the 2.GDA Meetings For GDA/DAE, monthly Monthly Programme Meeting will include some or all meetings with the implementation team

10 The M & E Systems Manual has been finalized in July 2017.

63 AGREED ACTION DEADLINE/COMMENTS of the PDAFF directors. Minutes of every Monthly and other stakeholders are regularly being Programme Meeting will be sent to IFAD. conducted to capture the progress and resolve pending issues. 2.Similarly, GDA will organise monthly meetings with all ASPIRE stakeholders, including national and international TA, with similar purposes and the TA team will also meet on a monthly basis. Minutes of the meetings, specifying actions to be taken with appropriate timeframes, will be established in English and will be shared with the Programme Director and with IFAD. Strategic management target 5: Improve efficiency in financial management and procurement 1. Submit WA for Loan funds as soon as 75% of the Immediately. The following were noted earlier advance is utilized. As on April 30, 2017 it is and discussed during the meeting: Mr. USD 40,000 short of 75%. Kimthourn informed that all recommendations of IFAD has been 2. Improving the fund flow situation. responded well related to financial management. 3. Increase the pace of project activities to maximize budget utilization by the end of the year. 1. Submission of Withdrawal Application. ASPIRE Secretariat has 4. Expedite the procurement process and discontinue already sent to MEF the WA. with the written tests for short term consultants. 2. Improvements in Funds Flow Situation. It was noted by the Ensure more realistic planning and budgeting in 5. Programme Director in the meeting AWPB. Rely on TA for the purpose of better that unless reduction in the 75% estimating the costs. expenditures before a WA can be processed, funds flow problem will still 6. Make use of technical specialists in procurement exist. However, it was agreed that all process for providing technical specifications and implementing units will have to alert for bid evaluation too. the ASPIRE Secretariat of any funds flow problem, so that appropriate 7. Expedite the filling up of all vacant positions. action will be undertaken. 8. Amend the TA contracts to suppress contradictory 3. Disbursements: The Program clauses Director reminded everybody to expedite the implementation of 9. Ensure that the Programme Financial Statement activities in order to ensure that and the audit report are in accordance with the utilization of funds are undertaken IFAD Guidelines on Project Audit quickly together with the implementation of planned activities. 10. Initiate internal audit process and hire a private firm 4. Procurement: The Procurement Unit to support it informed that they have already waived the written examinations for short-term consultants. 5. Realistic Planning and Budgeting in AWPB: It was agreed in the meeting that TAs will provide assistance to Procurement Team in preparing better estimates for the various technical requirements of the Project. 6. Procurement Process: TAs will be consulted to prepare technical specifications and also in evaluation of bids. The Programme Director said that this activity is not done every day, and TAs are expected to be flexible to assist in this activity 7. Filling Up of Vacant Positions. The Procurement Unit reported that almost all vacant positions have been advertised and in the process of recruitment. 8. Revision of TA Contracts: It was agreed in the meeting that all TA contracts will be reviewed by

64 AGREED ACTION DEADLINE/COMMENTS Procurement Unit to amend those that have contradictory clauses. 9. Audit of financial statements: The Programme Manager for the Secretariat and Support Services informed that financial audit has been completed. 10. Internal Audit: It was informed that Internal audit, for Component 2 has been completed. It was encouraged that all implementing agencies will have to hire their own internal auditors, specifically for grants mechanism. II. COMPONENT 1 – KNOWLEDGE BASED POLICY Key target 1.1: PAEC implementation guidelines finalised (GDA) 1. Identify a consultant to elaborate the September 2017 implementation guidelines for PAEC and to: reorganize Component 1 activities, budget, 1. Framework on Agriculture indicators and implementation arrangements; Extension – It was agreed that a new consultant will be selected to articulate relationship between ASPIRE and Policy complete the preparation of guidelines and Planning committee and technical working on the Framework for Agriculture groups; articulate relationship between Extension Strategies. GDA reported Component 1 and S-RET. While existing that relationship between Component shortlisted experts for the post of International 1 and S-RET is currently under Extension Systems and Methodology Adviser do review. A TA for the preparation of not appear to have the appropriate background Agricultural Master Plan will also be and experience to complete such a report, there recruited that will assist in the are other existing members of the TA team which development of guidelines for could fulfil the requirements. The TA selected to agriculture extension policy. 2. GDA will review the scope of work work on the Agricultural Master Plan may also be and TOR based on the an alternative. Should there be no suitable recommendation of IFAD for the candidate, procurement processes will be a fast- Policy Planning an PAEC. It was tracked to hire an appropriate consultant. noted in the meeting that ASPIRE cannot use the previous TOR since The guidelines should additionally seek to 2. some of the work has been articulate the road map for reviewing PAEC and completed. It was decided to how Component 1 will work with the Policy and complete the TOR by June 12. Planning Committee and other technical working groups.

Key target 1.2: New policy needs addressed (DPS) 1. Introduce flexibility into the Component 1 September 2017 budget to work with other development partners on 1. It was noted in the meeting that MAFF specific policy issues which have been identified by will develop Master Plan 2030 and that the government and are in synergy with the policy the Mission is interested to contribute to the preparation of the Master Plan. It objectives of the project. Specifically, DPS should: was informed that EU has already 2. Prepare a list of priorities to be financed and a contributed some funds for consultancy request for financing should be prepared for review service. For a long-term period, DPS noted that the funds provided by EU is by the MTR. This could include support for not enough, since EU only provided 80 consultations related to the Agricultural Master days of consultancy work. It was Plan 2030 / Agriculture Strategic Development proposed in the meeting that IFAD Plan and should be undertaken jointly with the EU should complement on this work. and others. 2. Agriculture Strategic Development Plan 2023: The DPS informed that they 3. Meanwhile, should pressing needs arise related to do not have yet the ASDP for 2023, policy development related activities, DPS should which will be used by the present send a request for financing to the Secretariat administration for the next mandate. It Support Team, for further IFAD no-objection. was also informed that IFAD has already approved providing the funds for the new ASDP, specifically consulting services and operational funds.

65 AGREED ACTION DEADLINE/COMMENTS 3. Policy Development Related Activities: The DPS informed that they need to conduct consultation sessions with various stakeholders in preparation for the ASDP 2023. It was also discussed that PDAFF will need to prepare the new PASDP for the 25 provinces and not only to 10 provinces. It was informed that ASPIRE needs to have national budget for this activity PASDP 2019-2023. 4. List of priorities of DPS were already submitted to ASPIRE Secretariat in the email dated 04 August 2017. Key target 1.3: SNEC Agricultural Analytical Unit operational (SNEC) 1. Continue working to establish the and contracting September 2017 for the first study on Comparative implementation 1. Study Tour: It was recommended to of Agricultural Extension Systems. have a study tour in Vietnam or Thailand on comparative study on 2. SNEC will explore the possibility of collaborating agricultural extension systems. The with RUA to conduct the second study with the Programme Advisor was asked to support from USAID. prepare the Concept Note in coordination with donor partners, as 3. Progress to hire an International Policy Expert well as the second study not later should be put on hold, as the position was initially than July 2017. SNEC committed to intended to guide the consultation and drafting do this in 2016 and moved in 2017. process of the PAEC policy, and is therefore is no This work will have to be coordinated longer necessary. with Thailand focal point. 2. Second Study: SNEC and RUA will collaborate with the second study supported by USAID. A Consultant need to be recruited for this Study. Procurement Unit will email SNEC on this requirement. There will be a meeting for this and a coordinator will have to be appointed to facilitate the process. 3. International Policy Expert: SNEC will send to IFAD their request for International Policy Expert. 4. Preparation of Various Studies: The Procurement Unit informed that there are several procurement packages for the various studies, however some of them do not have yet TORs: (1) International Policy Analysis Adviser; (2) Research Support Grant for Post Graduate and Graduate Research; (3) Improving Farmers’ Access to Affordable Micro Finance; (4) Policy Research Studes in Agriculture Sector; (5) Survey on the Behavior of Farmers on Demand and Supply of Extension Services; and (6) Comparative Study on Extension Delivery Model (firm). 5. Meeting on 29 June 2017: The following issues were addressed during the meeting: Component 1: Knowledge Based Policy: - Dr. Mak Souen and Rotha informed the national consultant for developing the guidelines for Q&A has already been selected and has received a no

66 AGREED ACTION DEADLINE/COMMENTS objection from IFAD. However, Mr. Rotha said that the contract will be signed very soon by the NSEC Director. For international consultant to develop the guidelines on implementation policy, this is still pending, and the oral interview will be undertaken very soon, for discussion on the contract and the TOR. Dr. Soeun will take a look on email from candidate, and will inform the procurement team to proceed. - The Concept Note in drafting the Extension Policy Concept Note for the Study Tour, it was informed by Dr. Lee that he did not do it yet since he thought that the Study Tour to be conducted by the Royal University of Agriculture in Vietnam was the one being requested. However, he was informed to prepare this quickly, because the RUA Study Tour is different from ASPIRE. - TOR for international consultant has not been drafted yet. Mr. Kosal suggested to to contact IFAD for help to develop the TOR. The new policy will be addressed (PDS): - Dr. Mak Souen informed that Mr. Mony head of PDS will be working with with EU on new funds provided by EU to ASPIR. If EU will finance 100% for the consultant then, there is no need for PSU and SNEC to join the recruitment process, otherwise ASPIRE will be Represented by Mr. Kimthourn. The consultant will help DPS to develop Master plan for 2030. - Mr. Sovantha, informed that PDS has planned to conduct training on new procedures on how to fill-up the P4 forms with the PDAFF team in mid-July. However there are a few items that need to be considered, specifically on the financial transactions of PADEE provinces when they integrated to ASPIRE. Mr. Kimthourn suggested to have training to be conducted among PADEE provinces, specifically on the transactions covered by ASPIRE, as per IFAD recommendations.

67 AGREED ACTION DEADLINE/COMMENTS III. COMPONENT 2 – CAPACITY DEVELOPMENT FOR EXTENSION SERVICES (GDA) Key target 2.1: AEAC, NATSC and Extension Hub operational 1. By June 2017, GDA/DAE is to develop an June - August 2017 implementation framework for AEAC and NATSC, with detailed TOR and work plan; 1. Implementation Framework – GDA/DAE informed that the TOR 2. By mid-July 2017, a concept note on the needs to be further developed, Extension Hub (EH) is to be approved by GDA and including the Work Plan for AEAC and AEAC, and by August 2017, training on the NATSC. The meetings will have to structure of the EH, institutional management, QA be conducted four times a year. Developments: process and Extension Portal is to be provided to 2. Concept Note on Extension Hub: It relevant stakeholders to ensure common was informed during the meeting that understanding and full operationalisation of the the Extension Hub Concept Note is hub. The training should be facilitated by ready for approval by GDA and AEAC. GDA/DAE and support from TA. This is contingent However, Manual for Extension Hub is on the Extension Knowledge Management and needed and must be completed by ICT Adviser accepting to provide the training, middle of July 2017. On the Contract which is not part of his TOR, and on his contract of the TA on Knowledge Management being urgently revised to reflect this and other and ICT, the Programme Director extensions of his TOR that have already occurred directed GDA to discuss with Programme Advisor in finalizing the (see section on Programme Management above). amended contract of the consultant, In the case agreement cannot be reached, the with new targets set and additional programme is to find alternative arrangements to number of days added to the contract. timely deliver targets. Key target 2.2: Extension Portal operational 1. By end of June 2017, resources are to be June – September 2017 – The following mobilised to support QA, including: (i) amending were discussed and agreed during the the TOR/extending contract of national Consultant meeting: for Development Extension Materials Training 1. Quality Assurane: To operationalize Course, and Knowledge Management and IT QA, consider extending the contract of national Adviser to include the review and the national consultant to work on QA, validation of existing materials, contingent on their as well as in the development of agreement; (ii) amending the TOR and extending extension materials training course. the contract of the international Extension Ludo and Chanrithy will be working Knowledge Management and ICT Adviser together for the extension portal. accordingly, with his agreement. In the case 2. Quality Assurance Guidelines: It agreement cannot be reached, programme was noted in the meeting that the management is to find alternative arrangements to Guidelines on Quality Assurance has timely deliver targets on QA above. Moreover, (iii) been drafted. As such, it was agreed that a national consultant’s contract focal points in relevant technical departments of will be extended to finalize the QA MAFF including RUA are to be appointed for Assurance Guidelines and Manual. It technical review of extension material; and (iv) the was agreed that Ludo will assist in the missing four counterparts (see above para. 38) are preparation of the TOR of the national to be hired. consultant for QA. 3. Focal points for Extension material 2. By early July 2017, the QA process for extension review: It was agreed in the meeting materials should be finalised by GDA/DAE with that representatives of the various support from TA. departments of MAFF, including RUA, will be appointed as focal points in the 3. By August 2017, physical and digital storage review of Extension Materials. facilities are to be arranged by MAFF. 4. Appointment of additional four counterparts: Since there are still 4. By September 2017, the extension portal must be three people that were not appointed operational online, with at least 150 extension as counterparts, it was agreed to materials including SML extension materials delay this work. reviewed and approved by AEAC (possibly by a 5. The QA process for extension small working group to be set up) by application of materials will be finalized by early the QA process. The extension materials approval July 2017. procedure could be delegated to GDA/DAE to 6. For the Physical and digital storage speed up the process. facilities will be completed by August 2017.

68 AGREED ACTION DEADLINE/COMMENTS 5. By September 2017 and once the extension portal Extension portal will be operational by is operational, tablets already procured are to be Sept. 2017 with 150 extension portal, tested by CEWs with support from DAE, PNCA and including SML. The target of 150 TA. The procurement of the second lot of tablets extension portal from 300 materials will have to be endorsed and approved by is on hold until the results of the testing of the first AEAC. By September 2017, it was noted batch are available. The mission stresses that no that technical experts will be invited to tablets must be distributed before there are process and review the 300 materials, guidelines as to how they should be used (for the based on the QA criteria, but only 150 test) and before the test is completed and extension materials will be uploaded in the guidelines are adapted accordingly (for the next website. 240 tablets). DAO and CEW will directly upload data on field activities to the MIS through the Tablets for CEWs: Mr. Hok Kimthourn provided tablets. Tablets will also be used by that 60 tablets have been purchased and CEWs for monitoring purpose. To that end, now undergoing testing. Purchase of more tablets will be done once testing for adaptation of the PADEE MIS for ASPIRE is also the 60 tablets has been completed. For required to include monitoring functions (outputs the SIM cards, Dr. Mak Soeun informed and outcomes of extension services delivered). that we have to check with the cellphone ASPIRE secretariat with assistance of M&E TA will provider (Smart, Mobitel, Metfone) who adapt the system developed under PADEE to can provide bigger storage facility. On the ASPIRE M&E and MIS requirement, and will install other hand, Ludo further informed that the system on the tablets by September 2017. Extension portal, other tools, and the 60 Residential training for CEWs at PNCA in October tablets will be operational by end of June will include M&E data collection methodology 2017. Training will be done in July 2017. using this interface. By November 2017, the QA process for service providers, extension activities, 6. By November 2017, the QA process for service and FNA will be completed. There are providers, extension activities and FNA should be at least 4 QA: extension materials, completed, with one guideline for QA of extension service providers, extension activities, and FNA. It was further noted that ASPIRE activity and FNA, and one guideline for QA of must produce one guidelines for QA for extension service provider approved and extension activities and FNA. implemented. Developments on 29 June 2017 Meeting: - Mr. Chanrithy informed that four counterparts have joined the extension coordination team since early June. Now the extension coordination team have seven members as proposed in the AWBP 2017. - Ms. Samnang informed that within 150 documents recommended by IFAD to review, she said that at least 15% were reviewed. Dr. Souen proposed that the existing material after the review has been completed by the national TA, these will have to be uploaded in the website. However, it was suggested that the new extension material will be go through proper quality assurance in the future before distribution or dissemination through the website. - Mr. Chanrithy informed that tablet for CEW will be distributed during the training workshop in July.

F2F Learning guidelines finalized: - Dr. Lee informed that the international consultant to develop guideline F2F will submit the final version on June 30.

69 AGREED ACTION DEADLINE/COMMENTS However if he cannot produce the final version, GDA/DAE will have to look for a replacement consultant to complete the guidelines assignment. Human Resource Development Strategy: Ms. Samnang informed that the revised TOR for international consultant to develop Human Resource strategy has been submitted to Procurement Unit to be used for Single Source Selection. Academic curricula developed - Mr. Chanrithy informed that the e- learning equipment were received and the concept note already approved. The rest will be purchasing the cloud service to store training material of e- learning, and the international consultant is now developing the content of the e-learning. - Ms. Samnang informed that TOT will be conducted in July at RUA. All recommended topics were included in the new training curriculum. Dr. Mark Fenn will be coordinating the training curriculums with all teachers from RUA, Preak Leap and DAE. Key target 2.3: F2F Learning guidelines finalised By September 2017, guidelines for Farmers to September 2017 Farmers Extension must be finalised, with support It was agreed in the meeting that the from TA and they must integrate F2F models already International F2F Advisor will complete his tested and up-scaled by other initiatives, including: (i) work in finalizing the Guidelines within 10 Digital Green, a good example of technology-based days that includes recommendation from F2F knowledge sharing that could be supported by IFAD ISM. mass media office under sub-component 3.3; (ii) Community Learning Centers and Local Champion approach promoted under PADEE with support from PROCASUR; and (iii) farmers-led innovations promoted by OXFAM, ALiNE, CEDAC/PROLINNOVA Cambodia and other organisations11. Other events to strengthen local networking should include agriculture fairs, competitions, cross-visits and locally organised demonstration and learning activities. Key target 2.4: Human Resource Development and Extension Practitioner Survey developed 1. By July 2017, HRDS must be completed under July – November 2017 current TA arrangements. In the case no agreement can be reached, the Secretariat is to  HRDS Strategy: It was informed in the take urgent action to replace the consultant meeting that Dr. Michelle Glenn is still (building on the list of pre-selected consultants) to in the period of mourning and will not be able to complete the assignment. The finalise the strategy by November 2017. Programme Director requested that a 2. By mid-August 2017, an inventory of extension letter to be signed by him be prepared service providers is to be completed by PDAFF to request her to continue and complete the work by July 2017. GDA proposed and consolidated by GDA. that if in case Dr. Michelle Glenn cannot 3. By November 2017, the Extension Practitioner complete the work, a replacement will Survey is to be completed. Current TOR are to be have to be made to complete the work before November 2017. modified to include the completion of the

11 See http://wikieducator.org/Farmer_Led_Innovations; https://www.oxfamamerica.org/static/media/files/Evaluation_of_the_Farmer-Led_Agricultural_Innovation_for_Resilience_2010- 2012_.pdf; http://www.aline.org.uk/whatwedo/mlesupport/mestrategy/farmerledagriculturalinnovationforresilience

70 AGREED ACTION DEADLINE/COMMENTS competency based skills assessment (data  Inventory of Extension Service analysis). Providers: GDA already informed that this work has been completed. PDAFF, on the other hand, must be able to complete this activity as soon as possible, at least GDA can consolidate this by middle of August 2017.  Shortlisting process completed for the Extension Practitioners Survey. The GDA informed that they have to revise the TOR for methodologies, data analysis, related with competency. However, it was reminded by the Secretariat that by November 2017, the Survey should have been completed. Key target 2.5: Academic curricula developed 1. Immediately and continuously, GDA and June – September 2017 ASPIRE secretariat are to provide timely administrative support to curriculum development 1. Administrative Support to and ToT program at RUA and PNCA to ensure Curriculum Development and TOT programs at RUA and PNCA: It was smooth implementation of the AWPB. The noted in the meeting that RUA has support includes: (i) translation services as different set up for training and E- required by the TA so that training activities can learning it is with PNCA. be held in September as planned; (ii) availability Administrative support has been of IT room repairs and digital storage facility. To provided. Translation service is now this end PNCA is to coordinate with GDA and available for RUA. Inform Mark that ASPIRE secretariat for adequate procurement translation services. Ludo and procedure; a fast track procurement is needed to Chanrithy will assist. Budget for ensure those activities are completed before the training is available. GDA must lecturer’s training in September; (iii) mobilisation mobilize budget to RUA. 2. E-learning – By Tuesday next week, of 2 national TA on ICT to assist in setting up the the Concept Note will be finalized and e-learning facility, which will require amending the to be endorsed by GDA. Preak Leap 2017 AWPB to include budget accordingly; (iv) already forwarded the Concept Note budget for trainings at RUA. to GDA for review. Upon receipt of the letter we need to approve within one 2. By early June 2017, the concept note for e- week. learning is to be finalised by PNCA, with support 3. TOR on Curriculum Development. from the International Consultant for Design Dr. Mark Fenn, through the Curriculum Residential and E-learning, and to be Programme Advisor, that “TOT will approved by GDA. The materials that have been start in July or even June if funds identified will cover a wide range of extension are available. The revised curriculum tools and topics, including mainstreaming climate includes more modules on climate change adaptation and resilient agriculture change, climate smart agriculture, and options into extension services. sustainable land management. The TOT is working closely with the IFAD- 3. By September 2017, RUA/CAES, with support WOCAT program and USAID-CE from the Curriculum Development TA, are to SAIN project. These projects are conduct ToT, including course on climate change directly involved in the TOT program at RUA and Prek LEAP.” adaptation and sustainable land management/ 4. Synergy Among Donor Partners WOCAT. and Stakeholders: It was reported by 4. Throughout 2017, GDA, RUA and the AEAC are Dr. Mark Fenn, through the to support on-going synergies with CE SAIN Programme Adviser, that “there is good synergy among ASPIRE (RUA), KOICA (Kampong Cham Agricultural International Consultant and KOICA College) and other stakeholders (FAO, GEF) in on textbook development, CESAIN, climate resilient agriculture inclusion in both in- FAO, WFP and many organizations service training and academic curricula. involved in training and curriculum development. There is collaborative network website which has been shared. ASPIRE project managers should look at this network site.” IV. COMPONENT 3 - IMPROVED EXTENSION SERVICES

71 AGREED ACTION DEADLINE/COMMENTS Key target 3.1 – Provincial Sub-Programs (P4 forms) reflect the full scope of GESS financed activities planned for 2018 (10 provinces) 1. DPS, in discussion with GDA and PSU, should September 2017: The Director of the issue guidance to PDAFF in the five pilot and Department of Planning and Statistics five PADEE provinces on preparation of sub- provided the following comments: programmes (P4 forms) to reflect all proposed 1. The preparation of P-4 Forms must be coordinated with GDA and financing and activities of sub-component 3.1 PDAFF, since preparation of sub- under PDAFF responsibility in 2018. The programs requires coordination on guidance should be in the form of a written this matter. DPS will be writing the instruction but should be supported either by a guidelines by end of June 2017, so workshop or by adviser visits to each PDAFF to that it can be discussed by the early clarify. Guidance should include: (i) outreach part of July 2017. The priorities of targets consistent with achieving the overall PASDP must be included and outreach target of ASPIRE by 2021; (ii) eligible reflected in the Action Plan for each types of activity/expenditure to be included, PDAFF. DPS held one internal consistent with the PIM and recommendations of meeting to review the guidelines which included all recommended this Mission Report; (iii) sub-program indicators; points and brought it for discussion and (iv) performance targets. with GDA and PSU. DPS already 2. PDAFF should prepare sub-programmes issued an official letter attached with the agreed guidelines and sent to 10 based on this guidance and reflecting to the PDAFFs of ASPIRE target provinces extent possible PASDP priorities and identified and PADEE provinces. market opportunities. 2. For 2018 AWPB, DPS will be 3. The 2018 AWPB should consolidate, and where sending their TAs and officers to the 10 target provinces and complete necessary, add detail to, the activities described the P4 form using the guidelines in the P4 forms. However, the AWPB process provided. Department of Planning should not result in substantive changes to will collaborate with Department of Component 3.1 activities planned through the Finance on this activity. Due to time sub-program planning process. constraints, DPS has recently organized the workshop instead of sending TAs to all PDAFFs. 3. The PDAFF sub-programmes will be complicated because it will include the sub-programme budget, including the ASPIRE budget. (both government and donor funds will be consolidated. PDAFF has been requested to include in the P4 form the budget of ASPIRE. 4. The 2018 AWPB will be consolidated in P4 forms. DPS suggested that PDAFF follow the AWPB 2018 prescribed formats and to consolidate them from the central level, which will include the budget from government and ASPIRE. It was also clarified in the workshop. 5. He also informed that there is a need to include market priorities in the preparation of plans. Key target 3.2 - Planning Process and GESS Allocation Formula Strengthened 1. By September 2017, DPS should consider September – November 2017 further development of the GESS allocation formula for use for the 2019 and future In the preparation of budget allocation, allocations, including: (i) an increasing share of the DPS informed that:

the allocation should be based on need, primarily 1. The GESS allocation formula will be the number of farmers in the province, with a further reviewed based on the items corresponding reduction in the equal-share proposed by the IFAD Mission, component; (ii) the number of ID-Poor actually including the IRR formula, etc. reached by extension activities, not the proportion 2. For the 2018 AWPB, the DPS will also of ID-Poor in the population, should be review the DPS process and the rolling considered as a performance indicator (i.e. out of the Plan by 2019.

72 AGREED ACTION DEADLINE/COMMENTS number of ID-Poor reached by extension activities 3. In 2019, the formula for the grant will in 2017 should be a performance indicator for the be based on GESS allocation formula 2019 allocation); and (iii) the indicator currently of 50% equally among the 10 included and described as “IRR” is not very provinces and 50% based on a the meaningful and should be replaced by an formula below: indicator better reflecting PDA performance in  15% for number of adult farming households in the province; achieving strategic results.  5% for score on climate 2. In November 2017, DPS should include in the vulnerability Index; 2018 AWPB provision for a review of PASDP  30% for provincial performance process including assessment of the plans (i.e. 10% for Expenditure as of December 2017; 10% for the already prepared, in preparation for roll-out of the number of ID poor counted from PASDP in 2019. the members of SLGs; and 10% for farm productivity increase in SLGs). 4. For 2018 AWPB, the DPS will also review the DPS process and the rolling out of the Plan by 2019.

Key target 3.3 – Range of modalities for providing extension services to farmers under provincial sub-programmes expanded 1. Immediate: GDA will appoint a national counterpart June – October 2017: The following to the PPP and Contracting Out TA; were discussed: 2. By June 2017: GDA to improve the SLG support approach and guidelines by integrating the following 1. GDA will appoint national counterpart aspects: to PPP and contracting out TA a. identification of existing farmers’ cooperatives immediately. and groups and assessment of services 2. CAES (crop agriculture extension needs; services). GDA will improve SLG support approach, FNA, etc. SLG will b. climate related constraints and possible be upgraded accordingly. By July solutions such as: crop 2017, GDA will update the SLG association/diversification, smart agriculture formation, including the SLG and FNA and SLM practices. Link with component 4 assessments. GDA will also improve investments, innovation grants and SLM the guidelines to support SLG by practices identified by CAES under WOCAT integrating the existing farmers’ where relevant. In line with recommendations cooperatives and groups. The Crop made under component 4, District Agriculture Extension Services will Vulnerability Assessment (VRA) findings will need to determine the links to be included into the Farmer Needs Component 4 investments and innovation grants and SLM practices, Assessment process, communes investment as well as on climate related in infrastructures will focus on farmers’ needs constraints, as well as possible and support agricultural production (water solutions, crop association, etc. related infrastructures); 3. In general there is a need to link all of c. broad list of productions/commodities that them to infrastructure development can be supported based on local agro- under Component 4. Production of ecological potential and marketing commodities will have to be opportunities; supported. It was suggested in the meeting that d. facilitation of access to inputs by creating the Program can use PPP by linkages with input suppliers, mobilising PPP identifying service providers from the mechanism where relevant. Include province and link them out with the facilitation to access production credit. group and identify the lead farmers, or Clearly state that FFS budget allocation is for farmer organizations for the local demonstration and training purpose, not for champions. With this we can supplying inputs to SLG members; encourage F2F for farmer visits, market assessments, and others. e. identification of extension service providers that can be associated in the group support The following were also discussed: process, mobilising resources through contracting out where relevant. In the  Each PDAFF shall consider and identification, include lead farmers and prepare the foundation of the farmers organisations within the supporting work, especially the commune/district to promote farmers to support of the farmers group, in

73 AGREED ACTION DEADLINE/COMMENTS farmers knowledge sharing, through cross- accordance from A to H. GDA will call visits and farmers’ led demonstrations a meeting in July 2017 and each f. Market assessment to be wider than province will deliver presentation on the supporting work. commune and district level. Include

assessment of current and previous farmers’  For areas that does not have experiences in market oriented production, as cooperatives, we will organize well as potential for up-scaling to commercial cooperative. We can follow on the level. Adopt more dynamic process for procedures in the formation of facilitating market linkages, building on the cooperatives. GDA must review and cluster approach implemented by PDAFFs improve the guidelines to catch up with under PADEE; the context needed. g. include a specific support approach for  We can organize District Forum in women and for farmers with production organizing activities with private constraints (land, labour, companies. We work with private capital/indebtedness, knowledge/literacy) by companies by improving production including options requiring no or little land and market. area, labour and/or investment and with short production cycle. Build up on lessons from  PPP will be finalized by June 2017. PADFFs in PADEE provinces on groups The Guidelines will be mixed together supported by Ministry of Women Affairs (non- with contracting out arrangements. land based activities) as well as TSSD on This is the way of thinking of PDAFF to chicken production combine their resources together. To get farmers get to the market, we can h. Strengthen role of PDAFF/DAO staff to focus use the least amount and get the net on assessment, facilitation, coordination and income. monitoring.  GDA should provide additional support 3. By June 2017, finalise PPP and contracting out in the preparation of the three (3) guidelines (in a joint, coherent document) and guidelines, which is expected to be disseminate them to PDAFFs, with provisions for completed by the consultant in June pooling of resources and synergies of the whole 2017. range of potential service providers. PPPs arrangements should be combined with other Orientation will happen with GDA and mechanisms to increase synergies with multiple PSU in June 2017, for PDAFF, it will stakeholders under a more flexible approach. happen by July 2017. Formal partnership agreements should specify criteria to assess efficiency and performance of On the role of GDA, preparation of daily log-book on inputs of farmers such as the service provided, as well as the role of PDAFF farmer’s own-labor inputs. and DAO. Current difficulties with contracting out procurement (see above) will be addressed, SNV and GDA discuss on cluster based possibly for example through multi-annual planning process to be submitted for contracts. Additionally, GDA will revise the TOR review during the MTR. We do not need and extend the PPP TA contract, with a view to to wait for MTR but need to have deliver a ToT for PDAFFs to help implementing permission from Steering Committee. the guidelines. By July 2017, GDA and PDAFF will 4. From June 2017: GDA to inform PDAFFs to implement by the revised guidelines on provide instructions to field staff and CEWs so SLG. We have to be proactive on this that all FFS demonstration activities include matter. keeping a daily log-book of farmer own-labour inputs; Commodity Outlook Market Study – GDA will cross check on this as soon as 5. By July 2017: GDA will discuss cooperation possible. This study must be approved by modalities with SNV to upscale cluster based AEAC. planning process at PDAFFs level in PADEE as well as in ASPIRE area and to build provincial F2F Guidelines – This guidelines must be capacities accordingly. GDA and SNV will discuss prepared by July and to be approved in and agree on possible contracting options for August. Guidelines will be finalized in review by the MTR mission, including an action September and training will be done in plan for SNV to support provincial planning October. GDA will take care of the training among PDAFF, CEW, etc. Now that we through coaching and hands-on training; have translation services, we will be able to translate the guidelines from Khmer to English.

74 AGREED ACTION DEADLINE/COMMENTS 6. By July 2017: GDA/PDAFF to roll out revised SLG guidelines; 7. By July 2017: Commodity Outlook Market Study to start, based on approved TOR and procurement process to be launched immediately and fast-tracked; 8. By October 2017, GDA will disseminate F2F guidelines (prepared under Component 2) to PDAFF, DAO, CEWs, demonstration farmers and farmers cooperatives and networks. PDAFF will select priority areas to promote F2F networking and will start promoting F2F exchanges in selected areas with assistance from DAO and CEWs.

Key target 3.4 – Innovation grants start 1. By mid-June 2017: GDA is to finalise and June – September 2017 approve the innovation grants guidelines with assistance from the PPP TA. Important areas to GDA agreed on the following: take into consideration include: (i) site selection 1. The Innovation Grants will have to be (grant selection criteria must ensure that completed by TA in the first week of innovations are mobilised where they are likely to June and will have to be approved by produce cumulative beneficial impacts; (ii) AEAC in the middle of June 2017, synergies with existing initiatives in target areas after GDA’s endorsement. This (contracting out, PPP, F2F learning, other Guidelines will be linked with other projects…); (iii) technology typology (long list to projects of IFAD such as S-RET. be included in the guidelines by area such as 2. By July 2017, GDA will advertise the water, energy, SLM, mechanisation, post-harvest request for proposal and by etc.); (iv) dissemination mechanisms of tested September the first two grants will be technologies. Guidelines are to build on the S- provided. 3. The schedule will be provided by Dr. RET project grant mechanism, procedures and Philip Charlesworth, which may not tools; exactly follow the schedule proposed 2. By July 2017: GDA is to advertise for innovation by IFAD. grants and establish an independent committee to review grant proposals, in line with guidelines. 3. By September 2017, first innovation grants are to start activities. Key target 3.4 – Mass Media Strategy prepared By August 2017: GDA/DAE and the Mass Media August 2017 Office will prepare a Mass Media strategy to be GDA will prepare the requirements for this reviewed by the MTR to resize the sub-component work to be discussed with Dr. Lee. The and budget. As agreed during the previous mission in Project Director reiterated that GDA will September 2016, GDA will base the strategy on have to determine how to support the Mass Media and link to extension hub, simple measures to strengthen the effectiveness of and requested the ASPIRE Secretariat to mass media extension, and a short-term consultant expedite the selection of the Consultant. can be hired for the purpose if needed. Key target 3.5 – Prepare expansion to PADEE provinces 1. By July 2017: GDA will organise an exchange July – August 2017 visit of the 5 ASPIRE PDAFF to Kandal province 1. GDA agreed to organize an exchange to learn from on-going cluster initiatives, with visit in the five PADEE provinces with support from SNV and PPP TA; the SNV and PPP TA in July 2017. The purpose is how to do the 2. By August 2017: ASPIRE Programme Managers integration of PADEE to ASPIRE. and the 5 PDAFF currently supported by PADEE Budget will be determined and must will prepare a roadmap for ASPIRE rolling out to be available to ensure that the study tour will be done in July 2017. PDAFF PADEE provinces, including key activities to be market officers and other people from supported in the AWPB 2018. The roadmap will DAO will be engaged during the visit.

75 AGREED ACTION DEADLINE/COMMENTS build on PDAFF experience and will further It was expected during the meeting support on-going, PADEE-supported initiatives, that at least 6 people from PDAFF and including: extension support to Improved Groups’ DAO will be involved in the Study visit, Revolving Funds (IGRF) and association wherein people with knowledge of establishment; cluster approach in partnership market issues will be given preference. The Secretariat will facilitate the with SNV, F2F piloting. There will be no target to process for the Study Tour. GDA will establish SLGs or conduct systematic FFS. lead this activity and Concept Note will Management tools already in place at PDAFF also be done by GDA. Cluster level will be kept and adapted to ASPIRE budget Selection will also be undertaken by and approach. Successful implementation GDA/DAE. DAE can contact SNV for modalities of PADEE will be mainstreamed into their involvement. ASPIRE, notably the cluster approach, to be 2. It was agreed in the meeting that the adapted as a planning tool for extension services three Programme Managers will at large, with support from SNV. coordinate with 5 PADEE/PDAFF directors in preparing the roadmap for the integration of PADEE to ASPIRE. The work will include extension support, revolving funds group, cluster preparation in SNV. It was agreed in the meeting that by July 2017, another meeting will be conducted to finalize the arrangements, which will be facilitated by the Secretariat.

Developments in the 29 June 2017 Meeting:

Component 3 - Improved Extension Services  Mr. Sovantha informed that the new formula for the GESS allocation will be ready in August. Before finalizing the new formula, there will be several internal meetings with PDS and PDAFF team. The new formula will be included the IRR calculation.  Mr. Kimthourn mentioned that, he will immediately call PADEE team members to join the meeting on 10 July to discuss how PADEE will integrate and move to ASPIRE program. The meeting will discuss about the roadmap of the transition from PADEE to ASPIRE. After this meeting PDS will be using this information to discuss the annual work plan with provincial team.  Ms. Samnang informed that in reference to IFAD recommendations, there were several topics that need to be revised. DAE team has revised SLG, FNA, FFS and FFs log book. Mr. Top also provided comments regarding the recommendations of IFAD. Because the recommendation didn’t mention clearly which part of SLG, FNA, FFS and FFS log book should be revises, otherwise the revised version will never finish. Dr. Souen responded that the guidelines are living documents therefore we should always revise it depending on the real situation.  Mr. Chanrithy informed that, the latest update of inventory service received

76 AGREED ACTION DEADLINE/COMMENTS from Kratie and the rest will be submitted to GDA/DAE by end of July.  Dr. Lee informed that, PPP and Contracting-out Guidelines are expected to be finalized by the end of June by the PPP Consultant. The consultant shall complete all inputs stated in the contract and will be discuss the possibility of extending the contract during the MTR in September. Orientation on guidelines wil be in early July.  Mr. Top agreed to be agreed to be the focal person for the cluster to visit PADEE program provinces. The provincial team will assign the participant and send it to Mr. Top for marking the arrangement in advance to visit cluster at Kandal province.  Mr. Tom informed that the Mass media campaign will start soon. The team now is ready to travel to the field and expected to start by next week.  Dr. Souen advised to Mr. Sovantha to include in the training regarding the government main activity number 1, 2 and 5. These activities should be included in P4 form and AWPB in 2018.  The provincial team informed the FNA and SLG were already formed and the training in the FFS has started in a few villages. However the FFS will start increasing more and more between July and August.

COMPONENT 4 – INFRASTRUCTURE SUPPORTING CLIMATE RESILIENT AGRICULTURE Key target 4.1: Current challenges to smooth implementation of Year 2017 activities overcome 1. Transfer of PBCRG funds to Commune Treasury September 2017: The following were Accounts should be completed by end June 2017 discussed during the meeting, but no at latest. MAFF, NCDD-S and MEF should formal agreements reached: address this urgently, in line with the 1. Transfer of funds must be from IFAD to the National Treasury and then to recommendations to adapt the current flow of Provincial Treasury. funds and to transfer funds directly from IFAD to 2. Payment to CEW will be transferred to National Treasury made in the section on Provincial Treasury. Fiduciary Issues; 3. Meeting must be undertaken between Component 3 and Component 4. Payment of CEW salaries should be effected by a 2. Provincial Officers must be informed if single transfer for 12-month salary to each there will be meeting with Component Commune Treasury account; 4 since they are not invited when there is a meeting of Component 4. 3. NCDD-S should reach agreement with GDA and Provincial Departments must attend ASPIRE Secretariat on priority actions to the meeting with Component 4. strengthen coordination and synergies between 4. There is a need from Financial Adviser Component 3 and Component 4 at provincial to assist in Component 4. However, level, including support to Component 4 from ASPIRE Secretariat does not have yet provincial TA. a Financial Adviser, only PBS has a Finance Adviser, but has submitted his resignation recently. In this case, there are Finance Advisers in the 5 provinces. 5. There is no consistency for Component 3 and 4 for Kampong Chnnang.

77 AGREED ACTION DEADLINE/COMMENTS 6. NCDD will be using its own system in funds disbursements. However, the Provincial Finance Advisers will assist NCDD in the disbursement process. Key target 4.2: 24 PBCRG allocations for Year 2018 prepared 1. The Annual Performance Assessment of the 16 September 2017: The following were Component 4 districts should be completed no discussed during the meeting: later than August 2017; 1. The deadline of August 2017 Annual Performance Assessment of 16 district 2. NCDD-S should conduct Component 4 provinces will be impossible as this Programme Start-Up Workshops in the PADEE has not yet been started yet. This can provinces in June 2017. Selection of target be completed in October 2017. districts for Component 4 in the PADEE provinces 2. NCDD-S should conduct the workshop with PADEE provinces be undertaken should follow these workshops and should be in June 2017. However, since time is based on: (i) only districts planned for Component limited the workshop will be done in 3 activities in 2018 to be considered; (ii) these July 2017. The roadmap must be districts to be ranked based on the national linked with this workshop. NCDD Climate Vulnerability Index12; (iii) availability of should inform the Secretariat. other climate change adaptation funding (e.g. 3. Should determine and not LGCC); and (iv) avoiding excessive overhead investigate. NCDD-S and PDAFF of costs where possible; PADEE provinces will determine the equipment required by CEW. 3. NCDD-S and MAFF should cooperate to 4. The NCDD has already drafted the investigate what, if any, additional equipment will PBCRG = Performance Based Climate be needed by CEW in PADEE provinces and, if Resilience Grants (PBCRG) allocation necessary, prepare a proposal to be considered for the 24 provinces. NCDD promised by the MTR; that they will not announce yet until MTR comes in September. Some 4. PBCRG allocations for 24 districts in 2018 should newly elected council officers does not be prepared, but not announced, before the MTR know how to manage the CDF and mission in September 2017. PBCRG, NCDD will conduct orientation on disbursements.

Key target 4.3: VRA process strengthened and mainstreamed 1. NCDD-S should conduct the VRA process in the September 2017: The following were 8 new Component 4 target districts, ensuring the discussions: participation of DAO and local farmer groups, 1. This process will have to be organisations and cooperatives. This process undertaken for 8 new districts in the old provinces. VRA process will be should be under way before the MTR so that undertaken, and relevant stakeholders the quality of the process can be evaluated. The will be invited to a meeting. NCDD will results of the VRA should be presented, together inform the provinces and stakeholders with climate trends analysed in the Farmers’ Need to attend the meeting. Meeting will be Assessment (FNA - C3) in Provincial level undertaken in July 2017. workshops. PDAFFs should then incorporate VRA 2. NCDD-S will conduct training to findings as an input for FNA in 2018; and communes that does not have sufficient resources to conduct VRA. 2. For communes where NCDD-S does not have By the end this month, NCDD-S will sufficient resources to conduct VRA directly, conduct training to relevant NCDD-S should provide training to planning stakeholders, not only VRA, but also facilitators (i.e. Planning and Investment Division FNA. Suggestion, to include newly of Provincial Administration, Commune/Sangkat selected commune to be part of this Support Office of District Administration and training. 3. NCDD-S allows each province to CEWs) to ensure that all C3 /C4 communes have implement in building capacity of the sufficient capacity to mainstream VRA in stakeholders by the end of June 2017, Commune Development Plans. with participation from the national level.

12 Climate Vulnerability Index is a component of the national Climate Change M&E framework under National Council for Sustainable Development, with its Secretariat in Ministry of Environment. The Index is based on Commune Database (CDB) data.

78 AGREED ACTION DEADLINE/COMMENTS Key target 4.4: Selection and technical quality of sub-projects improved 1. By July 2017, NCDD-S should develop TOR for September 2017: The following were recruitment of the International Infrastructure agreed upon: Engineer, based on the highest priority needs for 1. By July 2017, recruitment of the this position. It is recommended that NCDD-S International Infrastructure Engineer will take off by developing first the consider tasking the adviser to assist in compiling TOR by NCDDS. a set of model climate resilient infrastructure sub- 2. Technical Support Consultants will be projects, including both best-practice examples of selected thru a firm. A TOR will have common types and examples of more innovative to be prepared and consultant types. These model projects should be suitable selected before MTR comes. for: (i) improving the capacity of communes to select sub-projects with high adaptation benefits; and (ii) at a level of higher technical detail, Developments in the 29 June 2017 training technical staff in sub-project design. Meeting:

2. By September 2017, NCDD-S should prepare a Component 4 – Infrastructure proposal for central contracting of TSC through a Supporting Climate Resilient consulting company using a model similar to that  Mr. Kimthourn and PSU Finance team used in the IFAD/ADB financed Tonle Sap has confirmed the letter request fund Smallholder Development Project (TSSD). It is already sent to MEF, and hope to get recognised that this may result in increased costs. funds by the end of July. NCDD-S should prepare a TOR and cost estimate  NCDD team informed that there were so that costs and benefits of this approach can be four provinces that have been considered by the MTR. conducted VOA training. NCDD team also informed that they have invited PDAFF and DAO staff. They also plan to start the workshop on 7 July. The VRA assessment is ongoing and will be completed in July or August. Finance status  Ms. Somatha presented the status of fund that has been expended during the past 6 months. The disbursement rate of ASPIRE has now reached 16%. Therefore the disbursement of implementation agencies have to be speeded up.

ANNEX B: COMPLIANCE WITH FINANCING AGREEMENT COVENANTS IFAD Loan No.2000000744 ASAP Trust Grant No. 2000000743 Section Financing Agreement Compliance status Section A 1. The following documents collectively form this Agreement: this document, Complied the Programme Description and Implementation Arrangements (Schedule 1) and the Allocation Table (Schedule 2). 2. The Fund's General Conditions for Agricultural Development Financing Complied dated 29 April 2009, as may be amended from time to time (the "General Conditions") are annexed to this Agreement, and all provisions thereof shall apply to this Agreement. For the purposes of this Agreement the terms defined In the General Conditions shall have the meanings set forth therein.

3. The Fund shall provide a Loan and the ASAP Trust shall provide an ASAP Complied Trust Grant to the Borrower/Recipient (collectively referred to as the "Financing"), which the Borrower/Recipient shall use to implement the Programme in accordance with the terms and conditions of this Agreement. Section B 1. The amount of the IFAD loan is seventeen million seven hundred Being complied. thousand Special Drawing Rights (SDR 17 700 000). 2. The amount of the ASAP Trust Grant is ten million one hundred and fifty Being complied. thousand Special Drawing Rights (SDR 10 150 000). 3. The IFAD Loan shall be free of Interest but bear a service charge of three Not yet fourths of one percent (0.75%) per annum payable semi-annually in the applicable Loan Service Payment Currency, and shall have a maturity period of forty (40) years, including a grace period of ten (10) years starting from the date of approval of the Loan by the Fund's Executive Board. 4. The Loan Service Payment Currency shall be the USD. Complied 5. The first day of the applicable Fiscal Year shall be 01 January. Complied 6. Payments of principal and service charge of the IFAD Loan shall be To be complied payable on each 01 March and 01 September. 7. There shall be three Programme Accounts at the national level for the Complied with IFAD Loan for the benefit respectively of the ASPIRE Secretariat, the three program General Directorate of Agriculture (GDA) and the National Committee for and sub-program Sub-National Democratic Development (NCDD) to be opened and accounts for maintained in banks acceptable to the Borrower/Recipient and to the individual source Fund. There shall also be three Programme Accounts at the national level of fund, except for the ASAP Trust Grant for the benefit respectively of the ASPIRE for NCDD only one program Secretariat, the Supreme National Economic Council (SNEC) and the account for three GDA to be opened and maintained In banks acceptable to the sources of funds Borrower/Recipient and to the Fund. and SNEC has two accounts (ASAP Grant and RGC)

80 Section Financing Agreement Compliance status 8. The Borrower/Recipient shall provide counterpart financing for the Being complied Programme in the amount of USD 11.4 million. on yearly basis Section c 1. The Lead Programme Agency shall be the Ministry of Agriculture, Forestry Complied and Fisheries (MAFF). 2. The following are designated as additional Programme Parties: the Complied Ministry of Economy and Finance (MEF), the Ministry of Environment (MoE); the SNEC; the NCDD; the Council for Agriculture Rural Development (CARD); the participating Provincial Departments of Agriculture (PDAs), Provincial Administrations, District Administrations, Commune Councils and specialised service providers. 3. The Programme Completion Date shall be the seventh anniversary of the To be complied date of entry into force of this Agreement. on 31 March 2022 Section D 1. The IFAD Loan and the ASAP Trust Grant shall be administered and the Complied Programme supervised by the Fund. Section E 1. The following is designated as an additional ground for suspension of this Complied Agreement: The Programme Implementation Manual (PIM) referred to in paragraph 15, Section II of Schedule 1 hereto or any provision there has been waived, suspended, terminated, amended or modified without the prior agreement of the Fund and the Fund, after consultation with the Borrower/Recipient, has determined that such waiver, suspension, termination, amendment or modification has had, or is likely to have, a material adverse effect on the Programme, and the Borrower/Recipient has not taken any measures to remedy the situation. 2. The following are designated as additional general conditions Complied precedent to withdrawal (i) The Programme Steering Committee referred to in paragraph 2, Section D of Schedule 1 hereto has been duly established and its members appointed; (ii) A Programme Director and the key Programme Personnel of the ASPIRE Secretariat duly selected and recruited in accordance with paragraph 3, Section II of Schedule 1 hereto; (iii) The Borrower/Recipient has opened the Programme Accounts referred to in paragraph 6 ,Section B above; (iv) An accounting software has been set up for the administration of all Programme financial operations; and (v) The PlM has been approved by the PST and adopted by the Lead Programme Agency in the form non-objected to by the Fund. Schedule 1 1. Goal. The goal of the Programme is to reduce poverty and increase Being complied resilience of poor and vulnerable smallholder farmers in the Kingdom of Cambodia. 2. Objective. The Programme's main development objective is that Being complied enhanced models of agricultural services are formulated and put into practice by 2021 in order to assist a diversity of smallholder farmers to contribute to broad-based economic growth through profitable and resilient farm businesses. Any such models which, based on evidence, prove to be

81 Section Financing Agreement Compliance status successful shall thereafter be integrated into policies. This will be achieved through three interdependent outcomes: (i) a national investment programme that can be supported by multiple donors is designed to implement an updated extension policy allowing smallholder farmers access to quality information services; (it) MAFF has institutional and human resources capacity to manage an effective, demand-driven system linking researchers and knowledge-based agencies to extension agents in the public and private sectors, and in the civil society, as well as to farmers; and (iii) at least 120 000 smallholders have improved and resilient farm businesses as a result of integrated, demand- led extension services and investments in climate resilient infrastructure. 3. Programme Area. The Programme shall initially be implemented in the Complied, and provinces of Battambang, Kampong Chhnang, Kratie, Preah Vihear and additional Pursat. Subject to its satisfactory progress, the Programme will expand province from into the five target provinces of Kampot, Kandal, Prey Veng, Svay Rieng PADEE will be and Takeo of the IFAD-financed Programme for Agricultural Development included later and Economic Empowerment (PADEE) at its completion in 2018. Expansion into any other provinces of the Borrower/Recipient's territory shall be considered at Mid-Term Review and will be subject to availability of resources. 4. Target Population. The target beneficiaries of the Programme include rural Complied poor smallholders as well as productive poor farmers who have the potential to produce for the market, as well as for their own consumption, and can invest in improving production. 5. Components. The Programme shall have the following four (4) main components: 5.1 Component 1: Evidence-based Policy Development. This Component Component 1 shall support the integration of models for extension services into policies. just started the It shall also promote resource mobilization for a Programme-based procurement implementation approach and demonstrate an inclusive policy process. process This component shall include the following two (2) sub-components: (a) Sub-Component 1.1: Policy Coordination and Development. This sub• component shall promote coordination, Policy drafting and resource mobilization activities. A framework for mobilization of resources to support extension in a Programme-based approach will be a key output of the policy process. (b) Sub-Component 1.2: policy Research and Analysis. The SNEC shall build on its role of provider of high-level policy advice by establishing an Analytic Unit for the Agriculture Sector, conducting or commissioning, among other things, policy studies and trials in collaboration with the International Food Policy Research Institute (IFPRI), and formulating evidence-based policy recommendations. 5.2 Complied and on Component 2: Capacity Development for Extension Services. This going Component shall be implemented through two (2) sub-components focused on institutional development and strategic human resources, respectively. (a) Sub-Component 2.1: Improving Extension Quality and Knowledge Management. This sub-component shall assist MAFF to improve the definition of roles and responsibilities of different agencies and to establish an Extension and Research Advisory Board overseeing an Extension Hub within the GDA.

82 Section Financing Agreement Compliance status (b) Sub-Component 2.2: Strengthening Human Resources for Extension. This sub-component shall support a Human Resources Development Strategy, strengthen the skills of extension staff in key strategic areas including leadership and adult learning methods, and support academic education in extension for full-time students and for serving field personnel including Commune Extension Workers (CEWs). 5.3 Component 3: Improved Extension Services. This Component shall Complied and on develop and duly empower relevant entitles to pilot the Implementation of going provincial sub• programmes within the MAFF Programme Budget framework. It shall also promote the financing of grants for testing Innovative approaches to extension, and back a mass media extension activities campaign. This component will be structured along three (3) sub- components.

(a) Sub-Component 3.1 Provincial Sub-Programmes. Shall be implemented within the Programme Budget structure of MAFF. A Provincial sub-Agriculture Strategic Plan will be prepared though inclusive dialogue. Services with a mix of comparative models including public sector service. Delivery, a farmer-to-farmer extension models supported by the CEWs, public private partnership and contracting out. Where appropriate, existing farmer organizations and cooperatives will promote the formation of Smallholder Learning Group (SLGs) and will play a major role in the farmer-to-farmer learning networks.

(b) Sub-component 3.2 Innovations for Climate Resilient Agriculture. This Sub-component shall support demonstration and testing of promising innovations under smallholder farm condition. Suitable technologic may include improved on-farm water management, adjustments to the cropping calendar, introduction of new crops/varieties with a potential to improve resilience to climate change.

(c) Sub-component 3.3 Mass Media Campaign on Extension Activities. This Sub-component shall Support mass media campaign(s) on extension activities, including on climate Change awareness and on the promotion of climate smart agriculture. Activities thereunder shall include:(i) radio broadcasts; (ii) an educational television show with an entertaining, competition-based format; and (iii) a mobile feedback show engaging farmers in discussion about the programmes. 5.4 Component 4: Infrastructure Supporting Climate Resilient Complied and on Agriculture. This component shall support the scaling up of the Local going Government and Climate Change Project piloted by the NCDD whereby Districts participating in the such Project develop climate resilience strategic and performance-based climate resilience grants. Investment under the programme for climate-resilient infrastructure will be identified by the Commune Councils from their development plans and the non-climate related costs thereof shall be financed by the Commune-Sangkat Fund. Districts meeting performance targets will receive three (3) annual performance-based climate resilience grants of increasing amounts and will become eligible for one (1) Special programme Climate Resilience Grant to finance a larger investment. II. Implementation Arrangements 1 Lead Programme Agency. MAFF shall be the lead Programme Agency Complied under the overall coordination of the MEF.

83 Section Financing Agreement Compliance status 2 Programme Steering Committee (PSC). The PSC shall be co-chaired at Complied Secretary of state level by MEF and MAFF, and its membership will include a representative from CARD,SNEC, the NCDD Secretariat (NCDD-S) and the MoE as well as from provinces participating in the Programme together with representative of development partners, civil society (farmer organizations) and the private sector. For effective work and decision- making the total membership of the PSC shall the limited in number, and each member shall be appointed for not less than one year. 3 Key Programme Personnel. The Programme shall be led by a MAFF Complied and on Secretary of State as Programme Director. The Programme shall be going Supported by two Programme Manager within MAFF respectively responsible for: (i) Extension, Technology and Research, and (ii) Programme budgeting, as well as by one Programme Manager within the NCDD-S. The Programme Manager –Extension, Technology and Research shall be the Director General of the GDA, MAFF. The programme Manager –programme budgeting - shall be the Director of the department of Planning and statistics, MAFF. The Key programme personnel, including the ASPIRE Secretariat Finance Manager, shall be selected and recruited by the Lead programme Agency, with the prior non-objection of the Fund. In accordance with the modalities to be specified in the draft PIM, following a competitive and transparent process carried out with the-support of an independent specialized human resources expert. 4 Programme Management. The programme Director shall oversee a Complied and on dedicated ASPIRE secretariat which will comprise: going. Meeting of DAT regularly held monthly (a) Secretariat Support Team (SST) of contracted staff primarily focused on programme management aspects, and (b) A Decentralized Advisory Team (DAT) primarily focused on capacity building of central and provincial department, agriculture and extension services- related issues under Components 2 and 3 and policy research under Sub-component 1.2, Component 1 the programme. ASPIRE secretariat. The ASPIRE secretariat shall undertake programme Complied 5 management, coordination as well as monitoring and evaluation tasks. It shall also implement policy coordination and development activities under sub-component 1.1, Component 1 of the programme. The secretariat will be staffed by approximately ten (10) full-time staff selected on the basis of merit, experience and potential to learn fast. Through the programme budget mechanism, the ASPRE Secretariat will coordinate the work plans of the technical agencies, principally the GDA and the Department of Animal Health and Production at national level and the PDA. MAFF agencies and line department will undertake the majority of technical work at national and sub- national levels under Components 1, 2 and 3 of the programme. 6 SNEC. The role of SNEC shall be to provide policy advice to management of Will be complied the Royal Government of Cambodia on formulation of policies. 7 NCDD-S. The primary role of NCDD-S shall to be implement Component 4 Complied of the programme. NCDD-S shall also assist in facilitating cooperation with provincial and District administrations, particularly for planning purposes and co-financing of the CEW position through the Commune budget. 8 Provincial Department of Agriculture (PDA). The PDA shall be the Complied ( PDA implementing agency for the provincial sub-programme (PSPs). The PDA now is PDAFF) shall be responsible for preparation of the annual budget for the PSP which will consolidated into the programme AWPB. Under the PSP, the PDA, shall allocate funds to Support activities of the District Agricultural office (DAO), contracting-out arrangements, public-private partnership and CEWs. The PDA shall be responsible for monitoring all PSP activities and shall be accountable for results. The Programme will build capacity within the DAO

84 Section Financing Agreement Compliance status on a sustainable basis phasing out activities at a rate which does not exceed the capacity of PDA to assign staff to the DAO. 9 The Provincial Administration. The Provincial Administration shall be Complied responsible for coordinating development activities in the relevant Province participating in the programme and in particular for the provincial Development plan, in to which the Provincial Agriculture Strategic plan will be integrated. The Provincial Administration shall play a direct role, on behalf of NCDD-S, in coordinating the Climate Resilient Infrastructure activities. 10 The District Administration. The District Administration shall facilitate the Complied planning and coordination of the district Work plans under the PSP and shall implement activities under Component 4 of the programme at district level, directly and/or in cooperation with the Commune Councils. 11 The Commune Councils. The coordination of agriculture support activities Complied and on played by the commune Councils shall be enhanced through the assistants going of the contracted CEWs. The commune Councils shall assist in the formation and coordination of Smallholder Learning Groups and the Farmer To- farmer Learning Networks. 12 Specialized service providers. Specialized services providers shall be Being complied ( contracted following a transparent and competitive process to carry out a under range of function within the programme. These include policy studies, procurement development of training material and delivery of training surveys for process) Monitoring and Evaluation at national level, and will include contract for provision of extension services. The provincial Sub-programme shall also include Public Private Partnership arrangements. Governmental and non- governmental entities in the extension sub-sector shall be eligible to apply for innovation grants under the Innovation for Climate resilient Agriculture activities under sub-Component 3.2, Component 3 of the programme. 13 Provincial Sub-programme Planning. The key planning instruments for the Complied provincial Sub-programme shall be a provincial Agriculture Strategic plan developed by a provincial Agriculture working Group and the three-year rolling budget plan of the PDA. District priorities shall be determined by a district Agriculture Working Group including the district Administration, the DOA, the Commune councils, the private sector and the civil society. The drafting of the five –year Provincial Agriculture Strategic plan and each Province participating in the programme shall ensure: (i) its preparation thought a participatory process involving public consultation meetings led by the Provincial Board of Governors; (ii) the enhanced use of agronomic and market data;(ii) the carrying out, in selected representative communities, of participatory farmer needs assessments to be integrated with vulnerability reduction analyses; and (iv) stronger focus on strategic results. 14 Programme Implementation Manual (PIM). A PIM shall be draft and Complied finalized by the ASPIRE Secretariat in accordance with be provisions of Sub-Decree No. 74 ANK. BK of the Royal Governments of Cambodia, dated 22 May 2012, Promulgating the Updated Standard Procedures for Implementing All Externally Financed project/Programmes. The PIM shall be submitted to IFAD for no objection and to the PSC for approval. The PIM shall include, inter alia:

i. Qualifications, terms of reference and implementation responsibilities of Programme Parties as well as of, inter alia, the ASPRE secretariat, Key Programme Personnel, consultants and service providers; ii. Modalities for the selection and recruitment of key programme Staff; iii. Criteria for the performance of the programme professional

85 Section Financing Agreement Compliance status Staff and adequate internal control systems; iv. An anti-corruption action plan consistent with the IFAD Policy on Preventing fraud and Corruption in its Activities and Operations; v. Targeting and selection criteria for participating beneficiaries; vi. Programme operational, financial and procurement procedure as well as an accounting procurement for bookkeeping and reporting, implementation and monitoring procedures. vii. Financial management mechanism and flow of funds arrangements for all outputs and activities; viii. Gender and social inclusion mainstreaming modalities in all programme activities; ix. A monitoring and evaluation system and procedures including the Results and impact Management System (the “RIMS”); and x. Implementation modalities for all Component and activities under the Programme. 15 Mid-Term Review (MTR). A MTR shall be conducted no later than the third Not yet year of Programme implementation to assess achievement of its objective conducted and to determine appropriate revisions to the Programme design, implementation arrangements and resource allocation in order to ensure successful Programme completion and possible scaling-up to new provinces and new technical solutions for agriculture extension. In order to ensure future sustainability of programme intervention. The MTR shall also review the effectiveness of the extension service in the objective of significantly increasing the borrower/Recipient’s contribution to the running costs of such extension services.

Schedule 2 1 Allocation of IFAD loan and ASAP Trust Grant Proceeds. (a) The table Complied below sets forth the Categories of Eligible Expenditures to be financed by the IFAD Loan and the ASAP Trust Grant and the allocation of the amounts of each to each Category, as well as the percentages of expenditures for items to be financed in each Category.

The terms used in the allocation table above are defined as follows: "Goods, Services and Inputs" refers to Eligible Expenditures in respect of : (a) the IFAD Loan-financed activities related to the definition of responsibilities in extension and to extension hub costs, the development of new extension material including training content, outreach activities, development of quality assurance systems, extension portal under sub- component 2.1 of the Programme and to the mass media campaign under sub-component 3.3 of the Programme; and (b) ASAP Trust Grant-financed activities for office equipment, equipment for extension hub, equipment for PDA, DAO and CEWs, equipment for the ASPIRE Secretariat including a monitoring and evaluation system, vehicles for extension hub, PDA, DAO, NCDD-S and the ASPIRE Secretariat, as well as motorcycles for PDA, DAO, CEWs and Provincial Administrations. 2 Start-up Costs. Withdrawals in respect of expenditures for start-up costs for Complied. categories I. (Consultancies) II. (Good, Services and Inputs). IV. 25% spent. (Workshops) and V. (Operating Costs) of the Allocation Table set forth in paragraph 1 (a) above, Incurred before the satisfaction of the general conditions preced6ent to withdrawal, shall not exceed an aggregate amount of ( SDR 350 000)