Updates on the Core Agriculture Support Program (CASP)

GMS Working Group on Agriculture W ki G A i lt Sununtar S tb S t Setboonsarng

Southeast Asia Department, ADB
Eighth Meeting of the Working Group of Agriculture 25-26 October 2011, Siem Reap, Cambodia 2011 Reap

Outline of the Presentation

ADB Operations, 2010 Key Developments in the GMS Program Progress in Implementation of the Core Agriculture Support Program (CASP) A i lt S tP

ADB Operations, 2010

Type Loans Grants Technical Assistance Guarantee and Equity I E it Investment t t TOTAL
Source: ADB 2010 Annual Report

Amount ($ million) 14,981 982 326 1,225 17,514

GMS Total Investments Loans and Grants, 2010

Country Cambodia P.R. P R China Lao PDR Thailand Viet Nam TOTAL
Source: ADB 2010 Annual Report

Amount ($ million) 197.6 1,339.1 1 339 1 201.5 300.0 1,165.4 3,203.6 3 203 6

Agriculture and Natural Resources GMS Countries, 2010 Type of yp Project Loans Technical T h i l Assistance
No. of Projects P j t 7 15 Amount (in Milli ) (i $ Million) 337.8 8.56 8 56

Source: ADB 2010 A S Annual R l Report t

Greater Mekong Subregion Regional g g g Cooperation Program

Sectors S t Agriculture Energy Environment Human Resource Development T l Telecommunications i ti Tourism Trade and Transport

Mechanism for GMS Agricultural Cooperation

Working Group for Agriculture (WGA) established i 2002 t bli h d in Strengthen capacity of GMS countries g p y to coordinate and communicate on g regional issues Consultation among GMS countries, development partners and other partners, working groups

Working Group for Agriculture (WGA)

Technical Assistance RETA 6110 RETA 6324 RETA 6521 Source: ADB , 2009 Amount (in US $000) Implementation Period June 2003-2006 2003 2006 June 2006-2009 2006 2009 June 2009-2012

300 1,200 3,164

Core Agriculture Support Program (CASP)

Activities Implemented
K meetings and workshops (>20) Key ti d k h Policy Support for Cross-Border y pp Contract Farming Agricultural Information Network Service (AINS) Agriculture Trade Facilitation S Study y Biofuel Study

New Issues in Agriculture Development

Climate change affecting food security Global concern on food safety Energy costs and competitiveness of GMS food and agricultural products Changing market demand and the rise of ethical consumerism

Core Agriculture Support Program Phase II (2012-2015)

Regional cooperation to enhance international competitiveness of agri-food sector of GMS Building resilient agriculture sector through trade Enhancing agriculture as the lead sector for transforming GMS transport corridors into thriving economic corridors

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Vision for the GMS Agriculture Sector

The Greater Mekong Sub eg o s Subregion is recognized globally as the leading g producer of safe food, using climate-friendly g y agricultural practices and integrated into g global markets through regional g g economic corridors.
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Vision so
The Greater Mekong Subregion is recognized as the leading producer of safe food, using climate friendly agricultural practices and integrated into global markets through regional economic corridors.

Pillar 1: Food Safety Trade Modernization

Pillar 2: Climate Friendly Agriculture g

Pillar 3: Bioenergy and Biomass Management g

Agricultural Research a d Development g cu tu a esea c and e e op e t Private Sector Involvement Institutional Mechanisms for Regional I tit ti lM h i f R i l Cooperation

Pillar 1. Building Global Competitiveness by Promoting Food Safety P ti F d S f t

Enhance trade infrastructure Harmonize food safety standards IT Food traceability system Capacity building for formal and informal certification systems Promote critical mass of production of safe food Regional sourcing Ensure quality of water and food

Pillar 2: Promote Climate-friendly Agriculture and Natural Resource M N t lR Management t

Reward farmers for their ecosystem services i.e. premium price for organic organic, cool vege using biochar Risk management system i.e. weather-based risk insurance Protection from diseases a d and invasive spec es as e species

Pillar 3: Promote Agriculture as Leader in Providing Rural Renewable Energy P idi R lR bl E

Regional legal and regulatory framework for biomass and biofuel Promote agro-processing using renewable energy and eco-labeling d l b li Promote FDI of ecofriendly supply chain for 3Ps: People, Planet, Profit

ADB Support to GMS Under the CASP II Framework in 2010

RETA 6521: Accelerating the Core Agriculture Support Program

RETA amount: $1.5 million I l Implementation period 2008 2012 t ti i d 2008-2012 Status Component 1 I l C t Implementation of the Strategy for t ti f th St t f Biotechnology and Biosafety - FAO Component 2 - Agric lt re Information and Net ork Agriculture Network Service Development and Use - FECC Component 3 - Rural Renewable Energy (RRE) Development Strategy - FAO

RETA 6521: Accelerating the Core Agriculture Support Program

Component 4 - Food Security and Cross-Border Agricultural Trade Strategies ADB Strategies-ADB Lao Coffee Pilot project implemented and completed Publication of Trade Facilitation Study Component 5 - WGA Secretariat - Process the approval of TA7833, with $ 4 million appro al TA7833 ith financing from NDF Discussions with partners held resulting in proposed funding support from SIDA, Japan Government, Finland, ,

RETA 6521: Accelerating the Core Agriculture Support Program

Component 5 - WGA Secretariat (continued - WGA8 meeting currently b i h ld ti tl being held - Brochure and CD brochure on CASP Phase II are under preparation - DVD on Agriculture and Climate Change is under revision - Maintaining GMS/ WGA website

RETA 7833: Efficient Utilization of Biomass for Bioenergy and Food Security
RETA amount: $ 4.0 million Implementation period 2011 2015 Project Description will cover the following: Component 1 - Enhancing Regional cooperation on bioenergy development that fosters and safeguards food security Component 2 - Pilot testing climatePilot-testing climate friendly biomass investment projects, for more extensive implementation.

RETA 7833: Efficient Utilization of Biomass for Bioenergy and Food Security
Component 3 - Strengthening capacity for p g g p y the efficient use of biomass Component 4 - Development and dissemination of knowledge products. Status Board approval in June 2011 Inception meeting scheduled for third week of January

RETA 6390: Transboundary Animal Disease Control for Poverty Reduction in the GMS
RETA initial amount initial $ 450,000 450 000 and supplementary fund $1.2 million current TA amount - $ 1.65 million Implementation period 2007extension to 2012 Status: Pilot implementation programs completed but activities related to preventive measures and trade facilitation are yet to be completed.

Other Related Projects j Supporting CASP Phase II

Investment: GMS Flood and Drought Risk Management and Mitigation

Loan/grant amount: $ 88 million (total for CLV) Implementation period : 2012 2017 2012-2017 Status: Board Approval early 2012 Project Description: Will improve the capacity of communities in the lower Mekong basin in CLV to prepare for, respond to, and recover from the negative impact of floods and droughts. Key outputs: stronger regional coordination for management of flood and drought events, upgraded water management infrastructure; and enhances capacity for community based F&D management enhanced.

Mekong river flooding W.E. Garrett

Investment: Trade Facilitation: Improved Sanitary and Phytosanitary (SPS) Handling in Greater Mekong Subregion g g g
Loan/grant amount: $ 55 M for CAM, LAO,VIE ADB Board Approval: 2012 Project Description: Will (i) improve surveillance and inspection program and exchange of information about pests, diseases, and food safety; (ii) i improve governance, l legal and regulatory l d l t improvements; (iii) increase education level and university output of SPS specialists; (iv) improve regional cooperation and harmonization; and (v) provide effective monitoring and evaluation system

RETA 6450: Enhancing Transport and Trade Facilitation in the GMS

RETA Amount: $ 1.75 million (total RCIFPF, PRC Fund, Australia funding) Implementation period 2010-2011 Project Description: Will (i) enhance capacity of GMS countries in dealing with subregional trade and transport facilitation initiatives; (ii) strengthen transport facilitation; (iii) strengthen sanitary capacity in GMS; (iv) implement business and logistics support; (v) provide regional information platform Status: GMS Trade Facilitation reports p submitted and forwarded to GMS countries

RETA 7495: Support for the ASEAN Plus Three Integrated Food Security Framework
RETA amount: $ 2 million (JSF) Implementation period 2010 2011 2010-2011 Project status: The ASEAN Plus Three emergency Rice Reserve (APTERR) established in October 2011 Formulation of guidelines and SOP for release of APTERR stocks in process M ti to be held i D Meeting t b h ld in December, b Singapore to finalize the SOP and discuss administrative rules and procedures to govern the APTERR Council and the Secretariat

RETA 6439: 12th Agriculture and Natural Resources Research Centers

RETA amount $ 2 8 million ADB i l 2.8 illi ADB; implement b ICARDA ICRISAT t by ICARDA, and participating governments Components covering GMS countries Policy Options for Sustainable land management in Central Asia (PRC) Vulnerability to Climate Change (THA, VIE, PRC) Implementation period 2010 2011 2010-2011

RETA 7521: Strengthening Local Chambers of Commerce and Industry Along the EWEC to o ote ade, est e t and a ue Chains Promote Trade, Investment a d Value C a s
RETA mount $ 600,000 Japan Investment Climate Facilitation Fund Implementation period 2010-2011 j p p () Project Description: Outputs include: (i) Strenghtening institutional and professional capacity of local chambers of commerce ; (ii) Action plan on value chains mapping; (iii) A ti plan on cluster l h i i Action l l t development ; (iv) Awareness workshops on SMEs participation in the GVCs; (v) Trade and Investment Forum

1.WhatistheEastWestEconomicCorridor?

2.InclusiveSupplyChainalongEWcorridor
1. EWEC household involved in agricultural activities. 2. 2 Global food market is robust 36% rise in food prices in the last year. 3. 3 Global market prices for organic vegetables are on are, average, 2.4 times higher. 4. Prices of organic p g produce is more stable. 5. EWEC countries have a comparative advantage in organic vegetables because of low-cost labor. 6. Safe food concerns is driving the rapid growth.
Most importantly p y

An Organic EWEC could transform the current transport and logistics corridor into an economic corridor.

3.FourtypesofvaluechainsalongtheCorridor
Elementary El t supply chain Agro-tourism value chains l h i

Producer association value chains

Global value chains

4.HowtoMakeitHappen

ACTION PLAN FOR EWEC ORGANIC CORRIDOR

5.ASummingUp

Thank you very much Th k h