By CHHIENG Pich,Director, DICONational Project Director, TDSPDirector, EIF-NIU

Progress Update on Trade SWAp, TDSP and EIF

1. Progress Update on TDSP

2. Progress Update on EIF

3. EU Funding Program 2014-2020

4. Medium Term Plan

1. Project Development Objectives (PDOs): TDSP will contribute to increase the Royal Government of Cambodia's efficiency in formulating and implementing effective trade policies.

2. Multi-Donor Trust Fund : EU, DANIDA & UNIDO3. Trust Fund Manager : World Bank4. Executing Agency : DICO/MoC5. Board approval date : 07 Jan 20096. Effective date : 09 Mar 20097. Duration : 5 years (until 31 Mar 2012)8. Original budget : US$12,350,0009. Additional budget : US$3,100,00010. First extension : 31 Jan 2014 (22 months)11. Second extension : 31 Mar 2015 (14 months)12. Third extension : 14 Aug 2016 (17 months)13. WB Implementation Support Mission : 27 Oct – 27 Nov 201414. Next Implementation Support Mission: mid Sep 2015

No Identified Projects # Projects

1. Total project under TDSP 29

2. Projects completed and closed 12

3. Ongoing projects 15

• Projects will be completed and closed by Mar 2015 Implementing Agency Capacity Enhancement Program (RSA) – (completed) Reviewing commercial laws (DNLC) – (completed) Support drafting E-commerce Law (DLAD) – (completed) Rules of Origin (DMUL) – (completed) MoC Core HR Function (DoP) – (completed) Strengthen Capacity of ISC (ISC-MIH) – (completed) Support to G-PSF (CCC) – (completed) Better Quality of Fish and Fishery Products (FiA-MAFF) – (completed)

8

• Projects will be completed and closed by Aug 2016 ASYCUDA World System (GDCE-MEF), ICT Master Plan – Automation of Certificate of Origin (MoC), Automation of Business Registration (BRD), Automation of SPS Certificate (GDA-MAFF), Trade Training and Research Institute (TTRI-MoC), Drafts of Rice Standards – Certification Schemes for Rice (Accreditation System) (ISC-MIH), Development of a stronger National system for IP generation, protection, administration

and enforcement (DIPR), Support for the Arbitration Council and Dispute Resolution in Cambodia Strengthening the Operational Capacity of the National Commercial Arbitration Centre

9

Cumulative Expenditure $10,799,666

(70%)

Funds Required for DICO Operations & including various consultants

$1,069,955(7%)

Balance Commitment under all MOUs including GDA, TTRI, ACF, NCAC & ICT but excluding the closed

projects $ 3,580,379 (23%)

TDSP Funds PositionAs of 30th June 2015

(Unaudited - Expressed in Percentage of the Total Grant Amount of US$ 15.450 million)

• We have $4,650,334 to spend in the next 14 months,

• We need to spend $332,167 each month,• Or $930,067 each quarter

TDSP FundActual Disbursement against Projected Disbursement by Quarter, 2004/2015

As of 30 Jun 2015

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015

593,715 592,966

798,281

551,935

400,259361,490

482,675

653,425

586,610

262,511

Disbursement Projection Actual Disbursement

61%

81%

82%

106%

65%

TDSP FundDisbursement by Year, As of 30th June 2015

(Expressed in Percentage of the Total Grant Amount of US$ 15.450 million)

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2009 2010 2011 2012 2013 2014 2015

116,584615,558

1,674,943

2,751,160

2,087,570

2,704,645

849,121

17.5%

5.5%4%

0.75 %

10.8%

17.8%

13.5%

NOTE: *. Cumulative Disbursement = USD 10,799,666**. Cumulative Disbursement as a Percentage of Total Grant = 70%

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016

1,076,144

864,387

1,460,262

703,375546,166

TDSP FundFuture Disbursement Projection by Quarter (2015/2016)

Estimated Disbursements of Grant Balance – US$ 4,650,334

EIF Tier 1 (Phase I and II)

1. Starting date: Feb 2010

2. Closing date: Mar 2016

3. Net amount of Phase 1: 709,900

4. Total amount of Phase 2: 584,000

5. Total amount (P1+P2): 1,293,900

6. Total fund received (P1+P2): 1,174,606

7. Total fund disbursed: 1,071,770

EIF Tier 2 (CEDEP I and II)

1. Start date: Jul 2012

2. Closing date: Mar 2016

3. Total fund received: 225,000

4. Total fund disbursed: 91,226

As of June 30, 2015 (CEDEP I – US$ 84,090 and CEDEP II – US$ 7,136)

-

10,000

20,000

30,000

40,000

50,000

60,000

Q 1/2014 Q 2/2014 Q 3/2014 Q 4/2014 Q 1/2015 Q 2/2015

57,166 57,618

22,381

49,173

37,517 43,825

As of June 30, 2015

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

2010 2011 2012 2013 2014 2015

12,844

192,991

313,290 284,826

186,475

81,342

As of June 30, 2015 – Total Disbursement – US$ 1,071,770 or 83%

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

High Value Silk/ITC Milled Rice/IFC M&E/DICO

$ 793,335 or 79 % (As of Apr 20,2015)

$ 297,365 or 27 %(As of Mar 31,2014) $ 84,090 or 29%

(As of Jun 30,2015)

Total Expenditure for all components was $1,174,790 or 49%

-

20,000

40,000

60,000

80,000

100,000

Cassava/UNDPMarine FisheriesProducts/UNIDO ACAC/Shift 360

M&E/DICO

$ 82,778 or 8%(As of Jul 31, 2015)

$ 54,349 or 5% (As of Dec 31, 2014)

0%$ 7,136 or 2%

(As of Jun 30,2015)

Total Expenditure for all components was $144,263 or 4.4%

EU Funding Program (MIP)Multi-Annual Indicative Program 2014-2020

Fund for Bilateral: EUR 410 million Fund for Regional: EUR 50 million

• Focus sectors:• Agriculture/national resources management: 144m• Education/skill: 140m• Governance and Administration: 120m• Support measure: 6m

• Three expected results: Improved business enabling environment for the agriculture

and NRM related sectors, through the improvement of existing national capacities, policies and regulations which support the development of sustainable agricultural and forestry use and commercialisation, stimulate innovation and private sector investment, and ensure protection of natural resources.

Strengthened value chains, including increased productivity, processing efficiency, improved product quality and increased market competitiveness in domestic and export markets that result in increased rural incomes and employment creation.

Empowered local communities to participate in the conservation and management of agriculture and natural resources including sustainable forest management (FLEGT) through the improvement of national and sub-national capacities, regulations and law enforcement.

• Identification mission: May-Jun 2015• Formulation mission: Q4 2015• Programs to start by early 2017

• Focus Areas: support the ASEAN Economic Integration beyond 2015:

Support improvements in customs, transit, standards, services, investment, food safety, IPR.

Narrowing the development gaps in the public administrations of CMLVs

Further integration into the global economy of ASEAN Member States

Euro 35 million for ASEAN Secretariat Euro 15 million for Cambodia, Laos PDR and Myanmar Will include regional programs (ECAP IV, ARISE) and national

envelopes (Cambodia)

• Identification mission: finalised in January 2015• Evaluation and Formulation mission: 22-26th June 2015 • Programs to start: Q4 2016 • Exploring new modalities for implementation, building on what has

been achieved, more RGC ownership.

• Any project must be based on Rectangular Strategy, NSDP, CTIS, IDP• This program will approve by EU Parliament in Sep 2015

The 1st Mission took place (Mar 29 - Apr 11, 2015), Debriefing of the 1st mission findings organized on 10 April 2015, Preliminary list of possible additional TA needs has been prepared

and shared with key stakeholders during the debriefing meeting, Inception Report submitted to MoC/DICO on 19 April 2015, List of the Ten Clusters was endorsed by 21st SSC Meeting on 03

Jun 2015, and prioritized by MoC Management on 24 Jun 2015 (MoC Weekly Meeting),

The second mission is to coincide with EU mission, which is tentatively scheduled in early Oct 2015,

1. Trade Policy, Sector Policy, Legal and Regulatory Reform: Formulate Trade Policy in view of AEC, RCEP, TPP and erosion of preferences including RoOs; develop sector policies (e.g. cassava, fish, rubber, others); identify sector-specific NTMs; implement the Government’s 2012-2015 Work Program on Legal Reform, including key reforms identified in the Trade SWAp Road Map 2014-2018.

2. Trade Facilitation and Transport Logistics: Establish the NSW including automation of trade related documents; respond to the Bali Agreement on Trade Facilitation; develop, adopt, implement a national transportation logistics plan; improve cross-border transit agreements; improve and enforce road transport regulations; encourage modernization of road transport fleet.

3. SPS and Other Quality Systems for Trade: Complete key legal reforms in SPS; develop capacity of key agencies not only in Phnom Penh but in field offices as well especially in areas of surveillance and inspections; promote a culture of SPS including through encouraging agro exporters to adopt SPS standards required by importing markets, develop various quality systems to support export sectors (e.g. rubber, silk.)

4. Private Sector Structuring: Strengthen sector associations and private sector in rice, cassava, fisheries, rubber, and hospitality including ability of sectors to articulate positions and engage government through G-PSF or other venues; strengthen and promote branding through sector-specific collective marks, GIs, Quality Seals, other means as well as through “Made in Cambodia” branding; strengthen export promotion capacity including through capacity building in sector associations.

5. Development of Inclusive Value Chains: Build capacity of priority export sectors identified by Government in the Trade SWAp Road Map 2014, including in light manufacturing, agro-processing, rubber and tourism.

6. Trade Mainstreaming and Management of Aid for Trade: Continue to build capacity for monitoring and communicating Trade SWAp as a program instead of a collection of projects; continue to mobilize and coordinate AFT support; strengthen capacity of MoC and other line ministries to participate in SWAp; improve fiduciary management of AFT projects using different disbursement modalities. Deepen trade build trade-related training and research capacity in Government;

7. Skills for Exports: Address the lack of skilled technical personnel as a result of the absence of a robust TVET structure is a serious bottleneck in Cambodia’s ability to move up value chains; address the lack of well-trained engineers (mechanical, structural, agricultural, chemical, biologist, etc.); strengthen collective bargaining environment and dispute resolution mechanisms.

8. Investment Environment, Integration in Regional Value Chains, Backward Linkages: Complete supportive legal framework including encouraging development/deepening of backward linkages in garment, bicycles, footwear, hospitality (horticulture); diversify investment in regional and global value chains beyond garment, footwear and bicycles; develop investment promotion capacity including at provincial level.

9. Rural Development for Exports including Extension Services, Cooperatives Development, Surveillance Services: Develop structured value chains between farmers and semi-agro-processors or agro-processors through farmers groups, cooperatives, contract farming arrangements, etc; strengthen quality of seeds, seedling, and other plantings;

10. Access to Finance: Address the lack of access to working capital and trade finance especially for SMEs and other small producers/exporters as it is a significant constraint to export development.

Timetable for SSC-TD-TRI Meeting in 2015

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

SSC Thu 26

SSC Tue 25

SSC Thu 06

SSC Thu 19

Timetable for IC Meeting in 2015

ICTue 13

IC Tue 17

IC Tue 17

IC Tue 21

IC Tue 18

IC Tue 16

IC Tue 21

IC Tue 18

IC Tue 22

IC Tue20

IC Fir 13

IC Tue 15

Timetable for DICO and IAs Meeting in 2015

Thu 05 Feb

Tue 07 Apr

Thu 04 Jun

Tue 04 Aug

Tue 06 Oct

Thu 03 Dec

Timetable for D/ICO and Line Ministries Meeting in 2015 (Under EIF)

Tue 13 Thu 05 Thu 07 Tue 07 Tue 08 Thu 05

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ឣ‍សយដ‌� ន: ឡ�តេលខ ១៩-៦១ វ�ថរកសងពាណជ�កម�

(១១៣េប), ភមទកថ‌� , សង‌� តទកថ‌� , ខណ� ែសនសខ,

រ‌ជធានភ�េពញ ១២១០២

ទរសព�/ទរសារៈ ០២៣-៨៦៦-០៧៤

Email: chhiengpich@gmail.com

www.moc.gov.kh | www.moc.gov.kh/tradeswap

Ministry of CommerceDepartment of International Cooperation

Lot 19-61, MoC Road (113B)Phum Teuk Thla, Sangkat Teuk ThlaKhan Sen Sok, Phnom Penh 12102

Cambodia

Tel/Fax: 023-866-074

Email: chhiengpich@gmail.com

www.moc.gov.kh | www.moc.gov.kh/tradeswap