The World Bank Report No: ISR11617 Implementation Status & Results Cambodia Cambodia Trade Development Support Program (RETF093573) (P109648) Public Disclosure Copy Operation Name: Cambodia Trade Development Support Program Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 16-Sep-2013 (RETF093573) (P109648) Country: Cambodia Approval FY: 2009 Product Line: Recipient Executed Activities Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 07-Jan-2009 Original Closing Date 31-Mar-2012 Planned Mid Term Review Date 13-Oct-2012 Last Archived ISR Date 28-Jan-2013 Effectiveness Date 09-Mar-2009 Revised Closing Date 31-Jan-2014 Actual Mid Term Review Date 12-Nov-2010 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Trade Development Support Program will contribute to increase the Royal Government of Cambodia's efficiency informulating and implementing effective trade policies. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1a: Technical Barriers to Trade (TBT) and Sanitary and Phyto-Sanitary (SPS) 2.00 Component 1b: Trade Facilitation 2.50 Component 1c: Other Legal Reforms and RGC WTO Obligations 1.20 Component 2: Performance Monitoring 1.00 Component 3: Institutional and Human Capacity 4.85 Public Disclosure Copy Component 4: Implementation Support to the TDSP 0.80 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview Page 1 of 8 The World Bank Report No: ISR11617 The TDSP became effective in March 2009 and will be extended to a new closing date of March, 2015 for recipient execution and September, 2015 for Bank-execution. The extension is currently in process. The formal closing date of the trust funds at time of writing is June, 2014. The PDO is on the way to being achieved, as demonstrated by the achievement of Public Disclosure Copy 1. a functioning trade SWAp, 2. strong M&E unit, following up all agencies to ensure results are achieved 3. automation of Ministry of Commerce 4. development of a national trade portal 5. development of a trade repository (that links to the trade portal) 6. automation of trademarks 7. automation of certificates of origin 8. roll-out of Customs automation to all 21 checkpoints 9. decreased transaction times for imports and exports, faster port handling and reduced inspections 10. sub-decree on Non-Tariff Measures drafted The project now boasts a number of early results that contribute to the program development objectives. A results framework that links SWAp Roadmap indicators and TDSP indicators to project-level performance has allowed for monitoring and evaluation at a granular level, as was the original intention of the program. This has been enabled by the endorsement of the trade sector-wide approach (SWAp) roadmaps since December 2011. Donors to the trust fund have shown their enthusiasm for the program and their support for the current management arrangements by making replenishment funds of $6 million available and advocating an extension of the TDSP to March 2015 in order to meet the original program development objectives. The Ministry of Commerce appointed new program managers in 2012. The program status remains Satisfactory for program implementation and Moderately Satisfactory for progress towards development objectives, with an upward bias. These ratings will be reviewed in November 2013. Locations No Location data has been entered Results Public Disclosure Copy Project Development Objective Indicators Page 2 of 8 The World Bank Report No: ISR11617 Indicator Name Core Unit of Measure Baseline Current End Target Regular practice of a streamlined RGC-led Text Value Trade SWAp approach The Sub-Steering Committee Completion of fourth annual process for consultation and financing, and agreed; initial annual work chaired by the Minister of progress report and Public Disclosure Copy satisfactory progress in implementing the plan ready for implementation Commerce is meeting every 3 agreement reached on further Trade Swap. months and the Implementing TDSP support; evidence of Committee is meeting every progress in Trade SWAp month. SWAp Roadmaps are implementation in APR in use (though SWAp pillar group meetings need to be be made more regular) and results framework is in place for assessing the contribution of projects to the SWAp roadmaps. Diagnostic Trade Integration Strategy Report is being drafted. The DTIS will contribute to the RGC's 5 Year Plan, called the National Strategic Development Plan 2014-18 and the so-called Rectangular Strategy used by the Government to implement reforms. Contribution from TDSP to the DTIS conclusions would be highly favorable to the PDOs. Date 01-Jan-2009 31-Oct-2012 01-Feb-2014 Comments Intermediate Results Indicators Public Disclosure Copy Page 3 of 8 The World Bank Report No: ISR11617 Indicator Name Core Unit of Measure Baseline Current End Target Increased coverage of SPS regulations and Text Value Incomplete regulatory system Standards for rice varieties Products Quality and Safety is support services on SPS; occasional non- have been developed; enhanced in line with Public Disclosure Copy compliance with WTO fisheries value chain analysis international standards agreements on SPS underway. requiring SPS compliance Date 01-Jan-2009 31-Oct-2011 01-Feb-2014 Comments as in PAD A project entitled "Better Quality and Safety of Fish and Fishery Products for Improving Fish Trade Development in Cambodia" valued at more than $1 million is underway at Fisheries Improved compliance with WTO agreement on Text Value Incomplete regulatory system Standards for rice and for Products Quality is enhanced TBT on TBT; occasional non- various domestically in line with National Technical compliance with WTO produced goods have been Regulations and international agreements on TBT developed. standards Date 01-Jan-2009 31-Oct-2012 01-Feb-2014 Comments as in PAD Projects to support the improved compliance with WTO agreements on TBT include: (i) Strengthening the capacity of the Institute of Standards of Cambodia (ISC); (ii) Development of Completed Drafts of National Standards for Rice and Strengthening the Capacity of Conformity Assessment Body – Phase 1. Evidence of satisfactory progress in the 12 Text Value Progress under 12-point A new 12-Point Plan has 12 Point Action Plan point action plan action plan: Achievements in been drafted, agreed between substantially complete. An Public Disclosure Copy this action plan include point Ministries but not yet increase in Cambodia's 1: Establishment of a cross endorsed by the Sub-Steering ranking on the Logistics agency trade facilitation/ Committee on Trade. A Performance Index. investment climate reform request has been received team; point 3: "Replace 45 from GDCE to carry out a documents with the Single NSW Business case. A study Administrative Document"; tour was conducted to point 4: "IntroduceRisk demonstrate NSW modalities Management to target in other countries. ASYCUDA inspections"; point 6: roll out complete. "Automated Single Page 4 of 8 The World Bank Report No: ISR11617 Window" (the ASYCUDA automated system in place in Sihanoukville);and point 7: "Introduce flat fee & service Public Disclosure Copy level agreement" (recurring cost of automated customs operations have been estimated); point 8: streamlining process and reduce cost of commercial registration, point 12: some forms of monitoring and reporting of PSD progress have been reported to the bi- annual Government Private Sector Forum. Date 01-Jan-2009 31-Oct-2011 31-Mar-2012 Comments as in PAD Additional activities under recipient-execution include: GDCE Capacity Enhancement program ($613,000) comprising (i) A National Customs Intelligence System developed and implemented. (ii)A Strategic Plan for Customs Marine Enforcement developed. (iii) Compilationof trade statistics improved. (iv) Business Plan for the Inspection of Petroleum Products completed. (v) A legal data base of Public Disclosure Copy decisions related to Customs laws and regulations developed and staff trained in its use, resulting in fewer cases brought to court and orlost. (v) Post-clearance audits, investigation, intelligence gathering, and anti-smuggling capacity improved. A special training program for Page 5 of 8 The World Bank Report No: ISR11617 staff to prepare them to the new operating principles and practices implemented; Increased efficiency and effectiveness of Text Value Weak capacity of several The M&E team at DICO has MoC functioning as a change Public Disclosure Copy functions performed in critical MoC MOC's departments and other played a key role in targeting agent / champion in terms of departments and targeted agencies agencies weaknesses for the using trade to increase implementing unit to follow economic development and up. Training in finace and social welfare in Cambodia in procurement has taken place coordination with other Line for key staff members. Ministries and stakeholders Ongoing capacity building in all line ministries is taking place through a projectwith Royal School of Administration. Date 01-Jan-2009 31-Oct-2012 31-Mar-2012 Comments as in PAD A transparent, consistent and sustained trade Text Value Weak and fragmented M&E National trade portal under Implementation of M&E monitoring system grants regular access to system in place construction, including trade system, implementation of trade information by stakeholders. respository. SWAp roadmaps trade portal and some are being revised in line with evidence of automation of the DTIS. functions and activities of MOCand key trade agencies. Date 01-Jan-2009 31-Oct-2012 01-Feb-2014 Comments as in PAD Evidence of higher compliance of legal Text Value review of Legal Action Plan draft sub-decree on NTMs Draft, finalization and review framework with WTO obligations. indicates patchy compliance soon to be issued. Prakas on of key trade related laws of Cambodian trade regime transparent fees and charges with WTO accession protocol for trade-related agencies has been issued. Customs Valuation agreement is somewhat implemented. Public Disclosure Copy Date 01-Jan-2009 31-Oct-2012 01-Feb-2014 Comments as in PAD Recipient execution: The e- commerce law is under draft and the commercial law project is being revived after an 18-month hiatus to support the work program resulting from the WTO TPR and the ASEAN gap assessment. Both projects are funded by TDSP and will bring Royal Page 6 of 8 The World Bank Report No: ISR11617 Government Cambodia into compliance with WTOand ASEAN obligations. Average time for imports / exports (days) Text Value 6.5/4.5 5.1/2.4 4.5/2.5 More simple, Public Disclosure Copy transparent and cheaper import, export and transit procedures and processes practiced Date 31-Aug-2004 31-Oct-2012 30-Sep-2015 Comments Source: 2004 Investment Source: 2007/2008 and 2012 Climate Survey Investment Climate Surveys Proportion of containers physically open (%) Text Value 100% 20.6% for imports, 8.3% for Overall reduction in the exports number of Date 13-Jan-2009 31-Oct-2012 01-Feb-2014 Comments % of containers selected for % of containers selected for red-channel inspection at the red-channel inspection at the main ports with risk main ports with risk management system management system functioning (e.g. Sihanoukville port, Phnom Penh International Airport, Dry Ports). Data on Financial Performance (as of 09-Jul-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P109648 TF-93573 Effective 14-Jan-2009 14-Jan-2009 09-Mar-2009 31-Mar-2012 31-Jan-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Public Disclosure Copy P109648 TF-93573 Effective USD 12.35 12.35 0.00 6.98 5.37 57.00 Disbursement Graph Page 7 of 8 The World Bank Report No: ISR11617 Public Disclosure Copy Key Decisions Regarding Implementation Replenishment funds of $6 million are available and the trust fund will be extended to September, 2015 (recipient-executed trust fund to March, 2015) in order to meet the original program development objectives. Restructuring History Level two Approved on 19-Dec-2010, Level two Approved on 19-Mar-2012 Related Projects P115669-KH-Strategic Approach for Pillar 1 of SWAp Public Disclosure Copy Page 8 of 8