Climate Proofing of Agricultural Infrastructure and Business-focused Adaptation

1 Climate Resilient Rice Commercialization Sector Development Program (RRP CAM 44321)
PILOT PROGRAM FOR CLIMATE RESILIENCE
Summary Project/Program Approval Request
1. Country/Region: Cambodia 2. CIF Project ID#: XPCRKHO12A
3. Project Name: Climate Proofing of Agricultural Infrastructure and Business-
focused Adaptation [as part of the Climate Resilient Rice
Commercialization Sector Development Program – (Rice SDP)]
4. Type of PPCR Investment Private Public 100% Mixed
5. Funding Request (in USD Grant: $4.5 million 1 Loan: $5.0 million
million total) for
Project/Program:
6. Approved Preparation Grant $0.6 million
(in USD million): (Of the $600,000, only Date: 29 June 2011
$500,000 was committed,
and the balance is
requested to be added to
the Grant portion of the
project as indicated above)
7. Implementing MDB Asian Development Bank
8. Other MDB Involvement None Type of Involvement: None
9. National Project Focal Point: Ministry of Economy and Finance (MEF)
10. National Implementing Ministry of Agriculture, Forestry, and Fishery (MAFF)
Agency (project/program):
Ministry of Water Resources and Meteorology (MOWRAM)
11. MDB PPCR Focal Point and Headquarters-PPCR Focal TTL: Bui Minh Giap, Natural Resources
Project/Program Task Team Point: Charles Rodgers, Sr. and Agricultural Economist
Leader (TTL): Environment Specialist
12. Project/Program Description
Agriculture remains the dominant sector in the Cambodian economy contributing 32% of gross domestic
product and employing 60% of the workforce, while 80% of the population depends on the sector for their
livelihood. The agriculture sector has been one of the main engines of economic growth achieving steady
growth over the past 10-years.2 Within agriculture, rice accounts for over 90% of the cropped area, the
production from which is mostly consumed domestically.3 The rice subsector accounts for about 50% of the
national agriculture, forestry and fisheries output. The Government of Cambodia (government) considers the
rice subsector as an opportunity for socio-economic development and articulated its intentions in the Rice
Policy to transform Cambodia into a „rice basket‟ and a major rice-exporting country. In this regard, the
government has set three important objectives for 2015: (i) the paddy surplus will be over 4.0 million tons, (ii)
milled rice exports will be at least 1.0 million tons,4 and (iii) Cambodia will be recognized internationally as a
rice exporting country.5
1 Kindly note that of the $600,000, only $500,000 was committed, and the balance is requested to be added to the Grant portion of
the project.
2 Sector Assessment is accessible from the list of linked documents in Appendix 2 of the ADB‟s Report and Recommendation of the
President to the Board of Directors (RRP).
3 Official statistics indicate only 200,000 tons of milled rice was exported in 2011. Therefore, it is assumed that the majority of
production is consumed domestically. In reality, it is estimated that about 2.2 million tons of wet paddy are often “exported” after
each harvest, causing the loss of value addition to Cambodia.
4 Cambodia‟s official rice exports were estimated at about 105,000 tons (excluding the paddy exported unofficially to Thailand and
Viet Nam) in 2011 against the 34.3 million tons traded globally. While Cambodian rice has a comparatively small proportion, growth
in the global trade of 9% per annum suggest sound opportunities on export markets for Cambodian rice.
5 The Government of Cambodia. 2010. Policy on Promotion of Paddy Production and Rice Export. Phnom Penh. The Rice Policy is