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Project Administration Memorandum

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Project Administration Memorandum Project Administration Memorandum Project Number: 42186 Loan Number: 2455-CAM(SF) Grant Number: 0116-CAM(SF) October 2008 CAM: Emergency Food Assistance Project The project administration memorandum is an active document, progressively updated and revised as necessary, particularly following any changes in project or program costs, scope, or implementation arrangements. This document, however, may not reflect the latest project or program changes. CURRENCY EQUIVALENTS (as of 1 August 2008) Currency Unit – riel/s (KR) KR1.00 = $0.000242 $1.00 = KR4,120 ABBREVIATIONS ADB – Asian Development Bank ADF – Asian Development Fund AQIP – Agriculture Quality Improvement Project CPMU – central project management unit EA – executing agency ECLC – early childhood learning center FAO – Food and Agriculture Organization GACAP II – Second Governance Action Plan, 2005–2008 GDP – gross domestic product IA – implementing agency IFAD – International Fund for Agricultural Development IMF – International Monetary Fund MAFF – Ministry of Agriculture, Forestry and Fisheries MEF – Ministry of Economy and Finance MOC – Ministry of Commerce MOEYS – Ministry of Education, Youth and Sports MOWA – Ministry of Women Affairs MOWRAM – Ministry of Water Resources and Meteorology MRD – Ministry of Rural Development NCDM – National Committee for Disaster Management NFSTF – National Food Security Task Force NGO – nongovernment organization PCDM – provincial committee for disaster management PFM – public financial management PPMS – project performance monitoring system PPMU – provincial project management unit SFFSN – National Strategic Framework for Food Security and Nutrition SGIA – second-generation imprest account SOE – statement of expenditure TA – technical assistance TWGAW – Technical Working Group on Agriculture and Water UNDP – United Nations Development Programme USAID – United States Agency for International Development VDC – village development committee WFP – World Food Programme NOTES (i) The fiscal year (FY) of the Government and its agencies ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2008 ends on 31 December 2008. (ii) In this report, "$" refers to US dollars. i CONTENTS Page Loan and Grant Processing History Design and Monitoring Framework I. Introduction II. Project Description A. Project Area and Location B. Impact and Outcome C. Outputs D. Special Features III. Cost Estimate and Financing Plan A. Detailed Cost Estimate B. Financing Plan C. Allocation of Loan and Grant Proceeds IV. Implementation Arrangements A. Executing and Implementing Agencies B. Project Management Organization V. Implementation Schedule VI. Consultant Recruitment VII. Procurement VIII. Disbursement Procedures IX. Project Monitoring and Evaluation X. Reporting Requirements XI. Auditing Requirements XII. Major Loan and Grant Covenants XIII. Implementation of the Accompanying TA XIV. Anticorruption APPENDIXES 1. List of Selected Communes 2. Screening and Selection Process and Beneficiary Eligibility Criteria 3. Detailed Cost Estimates (by Expenditure and by Financier) 4. Project Implementation and Fund Flow Program ii 5. Accompanying TA and Terms of Reference of Consulting Services 6. Procurement Plan 7. Pro Forma of the Executing Agency's Project Progress Report 8. Governance Risk Mitigation Measures 9. Major Loan and Grant Covenants ADDENDUM I. Major Change in Project Scope, Financing Plan and Cost Allocation II. Amendments to the Financing Agreement iii LOAN AND GRANT PROCESSING HISTORY a. PPTA Approval - Not required b. Fact-Finding - 23 June–4 July 2008 c. Management Review Meeting (MRM) - 22 August 2008 d. Appraisal Mission - Not required e. Staff Review Committee (SRC) Meeting - Not required f. Loan Negotiations - 2–3 September 2008 g. Board Circulation - 25 September 2008 h. Board Consideration and Approval - 2 October 2008 i. Loan Agreement Signing - 9 October 08 j. Loan Effectiveness - 14 October 08 Conditions of Loan Effectiveness There are no additional conditions for loan effectiveness aside from the purposes of Section 9.04 of the Loan Regulations and Grant Regulations. iv Design and Monitoring Framework Design Performance Targets Data Sources and/or Assumptions and Summary and/or Indicators Reporting Mechanisms Risks Impact Assumptions Reduced Target beneficiary Reports of the National • Macroeconomic and vulnerability of food- households not falling Institute of Statistics (NIS) political stability insecure households below food poverty line • Strong Government in the target ($0.42 per capita per day) Provincial and district commitment to provinces statistics covering poverty reduction Increased local supply economic activities and and household reserve of poverty status Risks food Project baseline and • Lack of coherent periodic survey and strategies and monitoring data provided policies in by independent NGO and addressing food NCDM security • Nontransparency in Post-project survey by the management of NCDM public resources Outcome Assumption Improved access to National emergency food Annual report on • Effective institutional sufficient food by security and response agriculture production by support and food-insecure system prepared and MAFF coordination by Cambodians in the adopted NCDM, PCDM, and short term Periodic survey of relevant line 10% yield increase of rice beneficiaries in the ministries (e.g., by target farmers in the Project provinces by MAFF, MRD, Project provinces from the partner NGOs and NCDM MOWRAM, MOEYS pre-crisis level by 2010 and MOWA) Operational national food Risk security response system • Inadequate storage and distribution system for food, fertilizer and rice seeds Outputs Assumption 1. Increased 89,000 households Progress reports of the • Grains, fertilizer, and availability of food to reached through food provincial coordination seeds can be readily vulnerable distribution and food-for- offices in each Project procured from local households work program province sources Rice consumption needs Reports of MAFF on Risks of 3–4 months for the agricultural production • Delay in delivery of target population are met and rural development food, fertilizer, and rice seeds by 3.6 million labor days suppliers exchanged and claimed Reports of MOEYS and for food/cash under the WFP on the school • Government failure food-for-work scheme feeding programs to establish food v Design Performance Targets Data Sources and/or Assumptions and Summary and/or Indicators Reporting Mechanisms Risks 2. Support the input 50,000 farmers are Reports of Ministry of storage and food needs of provided with fertilizer, Labor and Vocational reserve system smallholders and rice seeds, and extension Training on employment marginal farmers services situation 3. Capacity A consolidated national development for food framework and an crisis and project implementation system to management handle food security is prepared Activities with Milestones Inputs 1. Food Made Available to Vulnerable Households Loan and Grant 1.1. Identification of target groups for free food distribution and food-for-work ADB: $35.0 million program, by end of September 2008 1. Materials: $31.524 1.2. Procurement of rice, transport, and storage for free distribution, by end of million October 2008 2. Equipment and Vehicles: 1.3. Procurement of rice, transport, and storage for food-for work program, by $423,100 end of January 2009 3. Consulting Services: $2.278 million 1.4. Free rice distribution to target groups, by end of November 2008 4. Recurrent Cost: 1.5. Free food distribution or cash transfer to selected urban poor in Phnom $385,800 Penh, by end of November 2008 5. Interest During 1.6. Provision of food to Government’s school feeding and take home ration Implementation: $388,500 programs, continuous throughout the Project period Government: 1.7. Provision of food to children in selected early childhood learning centers $5.081 million ($3.54 (ECLCs), continuous throughout Project period million for taxes and duties 1.8. Organization of target groups for food-for-work program, by end of January and $1.543 million for 2009 recurrent costs) 1.9. Organization of technical support and management of food-for-work TA: $1.6 million program, by end of January 2009 ADB: $1.5 million 1.10 Baseline survey conducted in seven Project provinces through Government: $0.10 million NGOs/NCDM, by November 2008 2. Input Needs of Smallholders and Marginal Farmers Supported 2.1. Identification of target groups (farmers) for subsidized seed and fertilizer distribution, by end of January 2009 2.2. Procurement, transport, and storage of seed, by end of January 2009 2.3. Procurement, transport, and storage of fertilizer, by end of January 2009 2.4. Sale of seed and fertilizer at subsidized prices to target beneficiaries at the beginning of production season, from January 2009 to the end of project period vi 3. A National Food Security Response System in Place and Operational 3.1. Establishment of an independent monitoring system to oversee target- group selection, distribution of food and inputs, organization and management of the food-for-work program, and compliance with fiduciary requirements, by end of September 2008 3.2. Development of a system of emergency food reserve and rapid response, by end of Project period 3.3. Strengthening project management and monitoring capacity of the executing agency and implementing agencies through on-the-job training and workshops, throughout the project period ECLC = early childhood learning center; MAFF =
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