The World Bank Report No: ISR15415 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: 8 Status: ARCHIVED Archive Date: 27-Jul-2014 (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 16-Sep-2013 Effectiveness Date 09-Mar-2009 Revised Closing Date 31-Mar-2015 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 Implementation Status Overview Page 1 of 10 The World Bank Report No: ISR15415 The Senior Minister of Commerce wants to increase Cambodia's position in the Doing Business indicators by as many as 20 rankings. The Customs agency (GDCE) wish to implement an automated National Single Window. A work program has been agreed to use TDSP funds to achieve those goals. The following crucial projects must be implemented in the coming year: Public Disclosure Copy • Automation of key trade related processes including abolition of unnecessary rules of origin, automation of ministry procedures related to company registration, IPR and Trademarks, introduction of epayment systems for government services. A facilitating environment around business and trade procedures is being put in place: • A national trade portal that will make trade rules and regulations publicly searchable. • A trade repository containing a database of all relevant rules for goods and services trade. • Automated applications for certificates of origin. • ASYCUDA World is being rolled-out to an additional 11 customs and border checkpoints, leading to faster port handling and reduced inspections, and more predictable application of import/ export duties. • A Sub-Decree on Non-Tariff Measures (NTMs) should be ratified, an NTM Committee established and a draft E-Commerce law adopted by the National Assembly. These efforts are being supported by judicial training. Solid results already achieved by TDSP include: • Cambodia has jumped 46 places in the Logistics Performance Indicators in since 2010. This makes it a star reformer among LDCs. • Export clearance times have halved over the past four years, saving time and money for exporters. • Physical inspection of goods at the border has decreased. • The NTM work program initiated by the World Bank during Cambodia’s chairmanship of ASEAN has been adopted by all ASEAN countries. • Strengthened institutional and human capacity in MoC and trade-related agencies through export and SME training, Market Analysis and Market Mapping Training conducted by ITC, review of core functions at the Ministry of Commerce, development of training syllabus and course programs for intellectual property in major universities in Cambodia, awareness training program of Customs procedures, and on-going training in project supervision, M & E, and project management in all agencies. Achievements under the SWAp include: • A National Single Window Blueprint has been finalized for Customs (GDCE). • The DTIS (the Cambodian Diagnostic Trade Integration Strategy) has been updated, partially funded by TDSP and featuring World Bank analytical input to chapters on IPR, Trade Facilitation and Customs. • The Trade SWAp continues to play the main role of coordinating trade policy between Ministries and between development partners. • The institutional capacity of MoC to coordinate and manage trade-related technical assistance has increased. The Trade SWAp Secretariat has been functioning effectively as a National Implementation Unit under the Department of International Cooperation (D/ICO), Ministry of Commerce, coordinating activities of the Trade SWAp Roadmap Pillar Working Groups and funding from multiple development partners. Public Disclosure Copy • Technical assistance and capacity building at the MoC has resulted in a strong M & E Unit at the Department of International Cooperation of the Ministry of Commerce that is able to follow up all agencies’ implementation progress to ensure results are achieved. Locations Country First Administrative Division Location Planned Actual Cambodia Krong Phnum Penh Phnom Penh ✔ Results Page 2 of 10 The World Bank Report No: ISR15415 Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Regular practice of a streamlined RGC-led Text Value Trade SWAp approach - New strategic outcomes are Completion of fourth annual Public Disclosure Copy process for consultation and financing, and agreed; initial annual work in place following the progress report and satisfactory progress in implementing the plan ready for implementation completion of the Cambodia agreement reached on further Trade Swap. Diagnostic Trade Integration TDSP support; evidence of Strategy (DTIS). progress in Trade SWAp - SWApstructure has been implementation in APR revised under the new Minister of Commerce to ensure it is more flexible and responsive to the needs of implementing agencies. - An M&E unit has developed a results framework that encompasses the TDSP, the EIF and the SWAp. The M&E unit monitorsprogress towards development objectives on a monthly basis. -• The Sub-Steering Committee onTrade Development and Trade RelatedInvestment (SSC-TD- TRI) chaired by the Minister of Commerce is meeting every 3 months. -• The strengthened capacity of DICO is helping the Ministry of Commerce to be more strategic in planning and implementing development assistance activities. Public Disclosure Copy Date 01-Jan-2009 11-Jun-2014 31-Mar-2015 Comments Intermediate Results Indicators Page 3 of 10 The World Bank Report No: ISR15415 Indicator Name Core Unit of Measure Baseline Current End Target Increased coverage of SPS regulations and Text Value Incomplete regulatory system - Many Non-Tariff Measures Products Quality and Safety is support services on SPS; occasional non- (NTMs) are related to phyto- enhanced in line with Public Disclosure Copy compliance with WTO sanitary standards (SPS). A international standards agreements on SPS review of NTMs regulations is requiring SPS compliance underway through an NTM review committee at MEF to see if the measures are scientifically justified. If not, they will be considered market access barriers to be abolished by the Government. - The WB task team is providing guidance to MAFF to put in place an automated system of phyto-sanitary reporting that will allow exports of rice and vegetables to be certified through 5 provincial officies instead of at the central ministry, saving time for exporters. The inspection process is becoming more credible through training for provincial inspectors. - A large-scale intervention in the fisheries value chain is upgrading the capacity of processors and producers in order toincrease formal exports of fish. UNIDO consultants are assisting the FiA of the Ministryof Public Disclosure Copy Agriculture, Forestry and Fisheries to implement this project. Another project outside of TDSP and being financed by ADB is "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 (though implementation has been delayed due to the complications of contracting with a UN agency).Another Page 4 of 10 project, currently being The World Bank Report No: ISR15415 Improved compliance with WTO agreement on Text Value Incomplete regulatory system - The reform of Non-Tariff Products Quality is enhanced TBT on TBT; occasional non- Measures (NTMs) has a in line with National Technical compliance with WTO direct impact on TBTs, Regulations and international agreements on TBT because technical barriers are standards Public Disclosure Copy often used to limit market access. The Sub decree on NTMs and the establishment of the new NTM Committee will create policy space to review and abolish unnecessary TBTs. Additionally, as mentioned in previous ISRs, There are two large-scale projects underway to address TBT compliance at theInstitute of Standards of Cambodia (ISC). Standards for rice and for various domestically produced goods have been developed and endorsed by the private sector. Accreditation of ISC by an international standards- setting body may take place in 2015 using TDSP funding. Date 01-Jan-2009 11-Jun-2014 31-Mar-2015 Comments as in PAD Evidence of satisfactory progress in the 12 Text Value Progress under the 12-point - Cambodia’s LPI ranking has 12 Point Action Plan point action plan action plan: Achievements in risen by 46 places to 83rd out substantially complete. An this action plan include point of 160 countries, up from increase in Cambodia's 1: Establishment of a cross 129th four years ago, which ranking on the Logistics agency trade facilitation/ can be attributed to: (1) the Performance Index. investment climate reform time to clear cargoes at the team; point 3: "Replace 45 customs has fallen from 5.9 Public Disclosure Copy documents with the Single days in 2010 to only 1.4 days Administrative Document"; in 2014; and (2) theshare of point 4: "IntroduceRisk consignments selected for Management to target inspection has fallen from inspections"; point 6: 29% in 2010 to 17% in 2014. "Automated Single - The Trade MDTF provided Window" (the ASYCUDA strategic support to the automated system in place in National Single Window Sihanoukville);and point 7: Blueprint that encompasses "Introduce flat fee & service every facet of formulating and Page 5 of 10 The World Bank Report No: ISR15415 level agreement" (recurring implementing a national cost of automated customs single window. operations have been -Funding has been approved estimated); point 8: for the rollout of automated Public Disclosure Copy streamlining process and Customs software (called reduce cost of commercial ASYCUDA) to 11 addtional registration, point 12: some sites, increasing Customs' forms of monitoring and ability to control and tax reporting of PSD progress excise shipments have been reported to the bi- - valuations increasingly annual Government Private adhere to the WTO Valuation Sector Forum. Agreement. Date 01-Jan-2009 11-Jun-2014 31-Mar-2015 Comments as in PAD All activities mentioned in the update of 10/31/2013 have been completed. Increased efficiency and effectiveness of Text Value Weak capacity of several • RGC institutions are MoC functioning as a change functions performed in critical MoC MOC's departments and other effectively integrating, agent / champion in terms of departments and targeted agencies agencies coordinating and using trade to increase implementing trade related economic development and reforms through Trade SWAp. social welfare in Cambodia in • SSC and IC are well- coordination with other Line functioning committees Ministries and stakeholders providing on-going strategy and leadership, securing buy- in for implementation of Road Maps from other stakeholders. -• The MoC currently benefits from several projects of combined value $2.88 million: (i) Rules of Origin: Operational procedures and training ($110,000); (ii) export Public Disclosure Copy training and SME program ($49,000), (iii) capacity building for Departmentof Trade Statistics and Information ($110,000) (iv) IP Teaching and Training ($110,000), (v) E-Commerce Law Drafting($124,900), (vi) Institutional risk management at Camcontrol ($105,550), Page 6 of 10 The World Bank Report No: ISR15415 (vii) Strengthening MoC Core HR Functions ($234,540), (viii)Value chain information unit ($240,000), (ix) MoC ICT Public Disclosure Copy Master Plan including Certificate of Origin automation ($1.8 million). -• Information and educational campaigns, including capacity building for Provincial and Municipal Investment Sub-Committees (PMIS) on the Investment Lawshave been carried out by CIB/CDC at sub-national levels, business associations, and private sectors. -• MoC HR Capacity and Development Plan has been fully developed to identify institutional and individual capacity needs. • Trade Curriculum at the Royal School of Administration has been completed including training materials and course syllabus. • TDSP has provided various capacity enhancement programs implemented in various trade related agencies such as GDCE, ISC, and CAMCONTROL Date 01-Jan-2009 11-Jun-2014 31-Mar-2012 Public Disclosure Copy Comments as in PAD A transparent, consistent and sustained trade Text Value Weak and fragmented M&E • The development of Implementation of M&E monitoring system grants regular access to system in place a national trade portal has system, implementation of trade information by stakeholders. started and will be in full trade portal and some swing by the end of the third evidence of automation of the quarter 2014. The repository functions and activities of is being populated with MOCand key trade agencies. relevant legislation in goods and services. Page 7 of 10 The World Bank Report No: ISR15415 • Automation activities for trademarks and certificates oforigin are in progress. Public Disclosure Copy • The automation of Customs (thru ASYCUDA World System) has been rolled-out in all 21 checkpoints and will beexpanded to 11 additional checkpoints, thereby increasing Customs' (GDCE) ability to control excise shipments. - A results framework that links SWAp Roadmap Indicators and TDSP indicators to project-level performance has enhanced monitoring and evaluation of individual activities. An updated DTIS Update was launched on 18 February 2014. Date 01-Jan-2009 11-Jun-2014 31-Mar-2015 Comments as in PAD Evidence of higher compliance of legal Text Value review of Legal Action Plan - Sub-Decree on NTMs has Draft, finalization and review framework with WTO obligations. indicates patchy compliance been submitted to Council of of key trade related laws of Cambodian trade regime Ministers and sent back for with WTO accession protocol revisions twice. Approval imminent. - Strategic guidance to the Law on Copyrights and Marks has been provided. Public Disclosure Copy - Ecommerce law has been revised and the Minister of Commerce is personally lobbying for it to be passed by Council of Ministers before end of year - unnecessary Certificates of Origin have been abolished following advice from the World Bank on Doing Page 8 of 10 The World Bank Report No: ISR15415 Business reforms. -• Review of Excise Legislative Framework Administration hasbeen Public Disclosure Copy completed and new excise law had been proposed in the study report prepared. has been drafted Date 01-Jan-2009 11-Jun-2014 31-Mar-2015 Comments as in PAD A WTO Trade Facilitation Gap Assessment was carried out 23-27 June 2014 to identify areas to be addressed in the legislative reform agenda. Average time for imports / exports (days) Text Value 6.5/4.5 2.75/2.4 4.5/2.5 More simple, transparent and cheaper import, export and transit procedures and processes practiced Date 31-Aug-2004 11-Jun-2014 30-Sep-2015 Comments Source: 2004 Investment The GDCE Time Release Climate Survey study has just been shared with the World Bank (the figures above show that the PDO targets have now been exceeded.) Proportion of containers physically open (%) Text Value 100% The percentage of containers Overall reduction in the selected for red-channel number of inspection at the main ports using risk management tools (e.g. Sihanoukville port, Phnom Penh International Airport and Dry ports) is Public Disclosure Copy 20.6% for imports and 8.3% for exports. Date 13-Jan-2009 11-Jun-2014 31-Mar-2015 Comments % of containers selected for red-channel inspection at the main ports with risk management system Data on Financial Performance (as of 30-Jun-2014) Page 9 of 10 The World Bank Report No: ISR15415 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-Mar-2015 Public Disclosure Copy Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P109648 TF-93573 Effective USD 15.45 15.45 0.00 9.30 6.15 60.00 Disbursement Graph Key Decisions Regarding Implementation Replenishment funds of $3 million have been accepted into the recipient-executed fund. The remaining $2.8 million has been accepted into the Bank-executed trust fund. Public Disclosure Copy Restructuring History Level two Approved on 19-Dec-2010, Level two Approved on 19-Mar-2012 Related Projects P147231-Cambodia Trade Development Support Program - Additional Financing Page 10 of 10