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Tonle Sap Poverty Reduction and Smallholder Development Project (RRP CAM 41435-054)

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Tonle Sap Poverty Reduction and Smallholder Development Project (RRP CAM 41435-054) Additional Financing of Tonle Sap Poverty Reduction and Smallholder Development Project (RRP CAM 41435-054) Project Administration Manual Project Number: 41435-054 Loan Numbers: 2599/8243 Grant Numbers: 0186/0191/0192 August 2017 Kingdom of Cambodia: Tonle Sap Poverty Reduction and Smallholder Development Project – Additional Financing ABBREVIATIONS ADB – Asian Development Bank CARD – Council for Agriculture and Rural Development CDF – community development fund CMAW – commune mobile access worker DOA – District Office of Agriculture DRM – disaster risk management DRR – disaster risk reduction DST – district support team EARF – environmental assessment and review framework EMP – environmental management plan FTP – full technical proposal GAP – gender action plan GDR/IRC – General Department of Resettlement/Interministerial Resettlement Committee GRM – grievance redress mechanism ha – hectare ICS – individual consultant selection ICT – information and communication technology ID-Poor – identification of poor IEE – initial environmental examination IFAD – International Fund for Agricultural Development km – kilometer LIG – livelihood improvement group M&E – monitoring and evaluation MAFF – Ministry of Agriculture, Forestry and Fisheries MEF – Ministry of Economy and Finance MIG – market improvement group MPTC – Ministry of Posts and Telecommunications NCB – national competitive bidding NCDDS – National Committee for Sub-National Democratic Development Secretariat NCDM – National Committee for Disaster Management O&M – operations and maintenance PAM – project administration manual PIC – project implementation consultant PIM – project implementation manual p-m – person-month PMU – project management unit PPMS – project performance and monitoring system PRC – procurement review committee PST – provincial support team SOE – statement of expenditure SPS – Safeguard Policy Statement SSP – special service provider TSSD – Tonle Sap Poverty Reduction and Smallholder Development Project TSSD-AF – Tonle Sap Poverty Reduction and Smallholder Development Project - Additional Financing CONTENTS I. PROJECT DESCRIPTION 1 II. IMPLEMENTATION PLANS 8 A. Project Readiness Activities 8 B. Overall Project Implementation Plan 9 III. PROJECT MANAGEMENT ARRANGEMENTS 13 A. Project Implementation Organizations: Roles and Responsibilities 13 B. Key Persons Involved in Implementation 20 C. Project Organization Structure 22 IV. COSTS AND FINANCING 23 A. Cost Estimates Preparation and Revisions 23 B. Key Assumptions 24 C. Detailed Cost Estimates by Expenditure Category 25 D. Allocation and Withdrawal of Loan and Grant Proceeds 26 E. Detailed Cost Estimates by Financier 27 F. Detailed Cost Estimates by Outputs/Components 28 G. Detailed Cost Estimates by Year 29 H. Contract and Disbursement S-Curve 30 I. Contracts and Disbursement projections 31 J. Fund Flow Diagram 32 V. FINANCIAL MANAGEMENT 33 A. Financial Management Assessment 33 B. Disbursement 34 C. Accounting 37 D. Auditing and Public Disclosure 37 VI. PROCUREMENT AND CONSULTING SERVICES 38 A. Advance Actions 38 B. Procurement of Goods, Works and Consulting Services 38 C. Procurement Plan 39 D. Consultant's Terms of Reference 52 VII. SAFEGUARDS 53 VIII. GENDER AND SOCIAL DIMENSIONS 56 IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND COMMUNICATION 60 A. Project Design and Monitoring Framework 60 B. Monitoring 65 C. Evaluation 66 D. Reporting 66 E. Stakeholder Communication Strategy 67 X. ANTICORRUPTION POLICY 73 XI. ACCOUNTABILITY MECHANISM 73 XII. RECORD OF PAM CHANGES 74 APPENDICES 1. List of Districts and Communes 2. List of Target Communes and Commune Population 3. Subproject Selection Criteria and Recommendations for Improved Design Standards for Rural Roads and Irrigation Incorporating Climate Change Resilience and Disaster Risk Reduction Measures 4. Project Performance and Monitoring System 5. Terms of Reference: Government Counterpart Staff 6. Terms of Reference: Project Implementation Consultants 7. Terms of Reference: Design and Supervision of Infrastructure Subprojects 8. Terms of Reference: LIG Support (Special Service Provider 7) 9. Terms of Reference: Agriculture Value Chains and Market Linkages (Special Service Provider 8) 10. Terms of Reference: Individual Consultants 11. Gender Action Plan Monitoring Table 12. Good Governance Framework Project Administration Manual Purpose and Process The project administration manual (PAM) describes the essential administrative and management requirements to implement the project on time, within budget, and in accordance with the policies and procedures of the government and the Asian Development Bank (ADB). The PAM should include references to all available templates and instructions either through linkages to relevant URLs or directly incorporated in the PAM. The Ministry of Agriculture, Forestry and Fisheries (MAFF) and the National Committee for Sub- National Democratic Development Secretariat (NCDDS) are wholly responsible for the implementation of ADB financed projects, as agreed jointly between the borrower and ADB, and in accordance with the policies and procedures of the government and ADB. ADB staff is responsible to support implementation including compliance by MAFF and NCDDS of their obligations and responsibilities for project implementation in accordance with ADB’s policies and procedures. At loan negotiations, the borrower and ADB shall agree to the PAM and ensure consistency with the loan and grant agreements. Such agreements shall be reflected in the minutes of the loan negotiations. In the event of any discrepancy or contradiction between the PAM and the loan and grant agreements, the provisions of the loan and grant agreements `shall prevail. After ADB Board approval of the project's report and recommendations of the President (RRP) changes in implementation arrangements are subject to agreement and approval pursuant to relevant Government and ADB administrative procedures (including the Project Administration Instructions) and upon such approval they will be subsequently incorporated in the PAM. I. PROJECT DESCRIPTION 1. Constraints to poverty reduction and smallholder development in Cambodia include: (i) low productivity because of inefficient use of land, water, labor, and capital; (ii) poor productive infrastructure resulting in high costs and restricted access to markets; and (iii) limited access to rural financial services. To address these constraints, in 2009, the Asian Development Bank (ADB) approved the Tonle Sap Poverty Reduction and Smallholder Development Project (TSSD), which has achieved solid achievements in productive infrastructure and livelihood improvement. The government of Cambodia (the government), ADB and IFAD project teams concluded that successful project activities should be scaled up to broaden the benefits of increased rural incomes and economic development. The additional financing to the TSSD (TSSD-AF) will expand activities on climate-responsive productive infrastructure from 196 communes in five provinces (Banteay Meanchey, Kampong Cham, Kampong Thom, Siem Reap, and Tboung Khmum), to 271 communes in seven provinces, including the two additional provinces of Battambang, and Prey Veng in the Tonle Sap Basin, and further develop an enabled environment for agricultural productivity, diversification, and climate resilience (See Appendix 1 for the list of district and communes of the TSSD-AF). The inclusion of women, smallholding farmers, and poor people will remain a priority. Consistent with the current project, the AF will enhance agricultural productivity and improve access to markets, resulting in better livelihoods and higher incomes in the project areas, with the added benefit of enhanced resilience to disaster and climate risks. 1 2. The original project. The TSSD, co-financed by a loan of $3.40 million and a grant of $27.30 million from the Asian Development Fund resources, a loan of $6.69 million and a grant of $6.69 million financed by IFAD, and a grant of $1.60 million financed by the Government of Finland, was designed to foster community-driven infrastructure, and capacity development in livelihood improvement. Its outcome is increased agricultural productivity and improved access to markets in 196 communes in the Tonle Sap Basin. It has three outputs: (i) community driven development through block grants; (ii) enabling environment for increased agricultural productivity and diversification; and (iii) effective project management. The Ministry of Agriculture, Forestry and Fisheries (MAFF), and the National Committee for Sub-National Democratic Development Secretariat (NCDDS) are the executing agencies of the TSSD. 3. The TSSD-AF will change the original project scope by expanding the project area from five to seven provinces, and enhancing climate and disaster resilience in these provinces. The number of beneficiary households will increase from 430,000 2 to 650,000 3 (See Appendix 2 for the list of target communes and number of households per commune). The aggregate impact will be livelihoods in target communes and climate resilience in seven provinces in the Tonle Sap Basin improved. The aggregate outcome will be agricultural productivity increased, climate and disaster resilience strengthened, and access to markets improved in 271 communes in seven provinces in the Tonle Sap Basin. 4. The three main outputs of the overall project are described below: 1 ADB provided project preparatory technical assistance for the TSSD-AF (TA 9167-CAM). 2 ADB. 2009. Report and Recommendation of
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