SEMI-ANNUAL PROGRAMME MANAGEMENT REPORT (JANUARY JUNE 2017)

Transcription

1 KINGDOM OF CAMBODIA Nation Religion King AGRICULTURE SERVICES PROGRAMME FOR INNOVATION, RESILIENCE AND EXTENSION (ASPIRE) IFAD LOAN No ASAP TRUST GRANT No SEMI-ANNUAL PROGRAMME MANAGEMENT REPORT (JANUARY JUNE 2017) Consolidated by the ASPIRE Secretariat Support Team 14 August 2017 A programme funded by the Royal Government of Cambodia and the International Fund for Agricultural Development (IFAD) 1

2 Table of Contents Contents Page Foreword 3 Abbreviations and Acronyms 4 Executive Summary 6 I Programme Description 9 A Background of the Programme 9 B Goals and Objectives 10 C Programme Area and Target Population 10 D Programme Components 10 E Implementation Arrangements 11 II Summary of Achievements and Results 13 A Progress Towards Meeting the PDO 13 B Achievements Towards Meeting Programme Components, Outcomes, and Outputs 16 III Fiduciary Achievements and Results 32 A Financial Management Achievements and Results 32 B Procurement Management Achievements and Results 40 IV Challenges, Risks, and Mitigation Measures 45 V Lessons Learned 49 VI Follow-up Actions and the Way Forward 50 Annexes: A Agreed Actions and Next Steps (IFAD ISM Findings and Recommendations) 58 B Compliance with Financing Agreement Covenants 80 2

3 FOREWORD The agricultural extension services in Cambodia is still on its way of diffusing agricultural technologies to farmers and in creating a so-called agricultural revolution. Although the results achieved by the smallholder farmers include a much higher agricultural productivity as reported in the Baseline Studies by SBK, the Cambodian Model for Agricultural Extension (CMAE) is still on its way of assisting the diversity of smallholder farmers in contributing to broad-based economic growth through profitable and resilient farm business. This Semi-Annual Programme Management Report for 2017 of Agriculture Services Programme for Innovation, Resilience and Extension (ASPIRE) highlights the achievements in at least three (3) components: (i) Component 2 Capacity Development for Extension Services; (ii) Component 3 Improved Extension Services; and (iii) Component 4- Infrastructure Supporting Climate Resilient Agriculture. The Report also noted the slow phase of activities being carried out for Component 1 Knowledge Based Policy. In presenting the results of ASPIRE for the January to June 2017 period, the Programme puts on top of its priority of ensuring that agricultural production becomes climate smart for addressing the need for adequate, nutritionally balanced food for a growing and more demanding population in a situation of resource limitations, and climate change and variability. The provincial implementing agencies (PDAFF) have recognized that the dissemination and uptake of climate smart technologies, tools and practices is still largely an ongoing, challenging process, despite that these are being discussed in the Farmer Field Schools and the Small Learning Groups (SLGs). Barriers at different levels must be overcome in the field and solutions to these challenges must respond to specific local needs. ASPIRE is now responding to these challenges by providing adequate capacity at different levels to perform the actions and changes needed, as well as to support the implementation of climate-smart actions. As broadly recognized, all stakeholders including governments, producers and buyers should act as one to address the increasingly negative impact of climate change by securing adequate policies, technical and financial conditions for increased productivity, building resilience and the capacity to adapt. The adaption of climate related knowledge, technologies and practices to local conditions, promoting joint learning by farmers, researchers, rural advisor and widely disseminating Climate Smart Agricultulture (CSA) practices, is critical, and are still on top of the agenda of ASPIRE for the coming period, as we have already launched the provision of Grants for Innovation and Climate Smart Technologies. It is clear from information gathered from the field that ASPIRE needs more effective and efficient extension providers and systems that can only be achieved if the Programme will continue providing institutional improvement and reforms for more capacity building activities at organization and individual levels. For this First Semester Progress Report for 2017 of ASPIRE, we wish to extend our appreciation to IFAD, development partners, stakeholders, the agricultural industry, and our agribusiness partners for their commitment towards the sector. Finally, a word of thanks is due to all implementing agencies, officers, staff, and consultants for their support and spirit of cooperation. By working together, we will strive towards realizing our vision of creating a better life for all Cambodian smallholder farmers. H.E. MAM AMNOT Secretary of State Programme Director, ASPIRE HOK KIMTHOURN Programme Manager Programme Support Secretariat, ASPIRE 3

4 Kingdom of Cambodia Fiscal Year January 1 to December 31 Currency Equivalents At Appraisal As of June 30, March 31, 2015 Riel US$1.00 Rs4,010 Rs4,086 Abbreviations and Acronyms ACIAR ADB AQIP ASPIRE AusAID C/S F CARDI CAS CAVAC CBAPP CBRDP CC (1) CC (2) CDB CDHS CDRI CEW CIP CMDGs COSOP CSES D&D DALRM DANIDA DAO DfID DRC DST ECCA ENRM FBS FMM FSS FWUC GCCTS GDA GDP GESS GIZ GPS GRF HARVEST HPI-1 Australian Centre for International Agriculture Research Asian Development Bank Agricultural Quality Improvement Project Agriculture Services Programme for Innovation, Resilience and Extension Australian Agency for International Development (now Department of Foreign Affairs and Trade) Commune Sangkat Fund Cambodia Agricultural Research and Development Institute Country Assistance Strategy Cambodia Agriculture Value Chain Program (Australian funding) Community-Based Agricultural Productivity Project Community Based Rural Development Project Commune Council Climate Change Commune Database Cambodia Demographic and Health Survey Cambodia Development Research Institute Commune Extension Worker Commune Investment Programme Cambodian Millennium Development Goals Country Strategic Opportunities Programme Cambodia Socio-Economic Survey Decentralisation and De-concentration Department of Agricultural Land Resource Management Danish International Development Agency District Agriculture Office Department for International Development (UK) Department of Rice Crop District Support Team Environment and Climate Change Assessment Environment and Natural Resources Management Farm Business School Financial Management Manual Farmer Field School Farmer Water User Community Group Conditional Capital Transfer Scheme General Directorate of Agriculture Gross Domestic Product Grants for Extension Services to Smallholders Deutsche Gesellschaft fuer Internationale Zusammenarbeit (German International Cooperation Agency) Global Positioning System Group Revolving Fund Helping Address Rural VulnEARBilities and Ecosystem Sustainability Human Poverty Index 1 (accessed 16 August 2017) for June 30, 2017 exchange rate 4

5 HRD ICPM ID Poor IDA IFAD IFC IFPRI IGRF IPA IPM IRR JFPR LST M&E MAFF MDGs MEF MFI MIS MOI MOWA MOWRAM MRD MVF NAL NCDD NCDDS NGO NIPMP NLU NPDD NPV NSDP O&M PASP PBCRG PDA PDOWA PDRD PIM PM PPF PRWRAM RAU RIF RIMS RPRP RULIP SA SAW SNEC SOP SICRG TA TOR TOT TSSD UNCT UNDAF US USAID UXO VAHW VEW WB WFP Human Resource Development Integrated Crop and Pest Management Identification of Poor Household Programme, Ministry of Planning International Development Association International Fund for Agricultural Development International Finance Corporation International Food Policy Research Institute Improved Group Revolving Fund International Procurement Agency Integrated Pest Management Internal Rate of Return Japanese Fund for Poverty Reduction Labour Saving Technology Monitoring and Evaluation Ministry of Agriculture, Forestry and Fisheries Millennium Development Goals Ministry of Economy and Finance Micro-finance Intermediary Management Information System Ministry of Interior Ministry of Women s Affairs Ministry of Water Resources and Meteorology Ministry of Rural Development Most Vulnerable Family National Agricultural Laboratory National Committee for Sub-National Democratic Development NCDD Secretariat Non-Governmental Organization National Integrated Pest Management Programme Nong Lam University (Ho Chi Minh City) National Programme for Democratic Development Net Present Value National Socio-economic Development Plan Operation and Maintenance Provincial Agriculture Strategic Plan Performance Based Climate Resilience Grant Provincial Department of Agriculture Provincial Department for Women s Affairs Provincial Department for Rural Development Project Implementation Manual Procurement Management Project Preparation Facility Provincial Department for Water Resources and Meteorology Royal Agricultural University Rural Infrastructure Fund Results and Impact Management System Rural Poverty Reduction Project in Prey Veng and Svay Rieng Rural Livelihoods Improvement Programme in Kratie, Preah Vihear and Ratanakiri Social Assessment Strategy for Agriculture and Water Supreme National Economic Council Standard Operating Procedures Specific Investment Climate Resilience Grant Technical Assistance Terms of Reference Training of Trainers Tonle Sap Poverty Reduction and Smallholder Development Project United Nations Country Team United Nations Development Assistance Framework United States United States Agency for International Development Unexploded Ordinance Village Animal Health Worker Village Extension Worker World Bank World Food Programme 5

6 EXECUTIVE SUMMARY ASPIRE has been designed as a national programme and the policy and capacity development components will have a national scope. The Provincial Sub-Prgrammes and Climate Resilient Infrastructure activities are now being piloted in five provinces, namely Battambang, Kampong Cham, Kratie, Preah Vihear and Pursat, with an expansion to at least five of the PADEE provinces and three other provinces in 2018, to be identified by Mid-Term Review and contingent upon mobilization of additional funds. ASPIRE s Goal and Programme Development Objective has remained the same since it was adopted in The Goal of ASPIRE is the same Goal of the Results-Based Country Strategic Opportunities Programme, i.e. reduced poverty and increased resilience of poor and vulnerable smallholder farmers in Cambodia, with the following two indicators, their level of achievement at the baseline and the targets for the end of the Programme: Indicators Baseline Values End of the Programme Values 2 Total Values = 1,588,808,905 US$1,343 (15% increase from Riels of 340 households baseline). surveyed; Average household production = 4,672,965 Riels = US$1,168 Average households agricultural production value of 120,000 target households increased by 15% Value of household assets increased by 25% (including for climate vulnerable households) Total Value of Household Assets = 3,096,225,000 Riels Average per households = 9,106,544 Riels = US$2,277 US$2,846 (increased by 25% or US$2, %). Value of Household s Agricultural Production: For the baseline values, SBK Research and Development Team took the figures from the agricultural production of at least 340 sampled households from six sources: rice production, cash crop growing, vegetable growing, fruit production, fishing/fish raising, and livestock production. From the households surveyed, it was estimated that the total value of household agricultural production has reached 1,588,808,095 Riels or an average of 4,672,965 Riels or an average of US$1,168 at the baseline and US$1,343 at the endline (baseline plus 15% increase). Value of HH assets: SBK Research and Development Team has estimated the total value of household assets visited to have reached 3,096,225,000 Riels, giving an average per household of 9,106,544 Riels per household ($2,277). Using this as a reference, the indicator for the end-line survey will have to be $2,846 (or from $2,277 plus 25% increase). The Programme Development Objective that contributes to the Goal is: By 2021, an enhanced Cambodian model of agriculture service is demonstrated as effective for assisting a diversity of smallholder farmers to contribute to broad-based economic growth through profitable and resilient farm businesses and is adopted as a policy. It was understood by the Programme Management Team from the PDO that the Program will have an enhanced CMAE (Cambodian Model for Agricultural Extension) by year 2021, through the development and testing of innovative models for agricultural technology transfer and application aimed to generate additional farm income among smallholder farmers in high value markets with a potential for scaling up. Although the PDO indicator states that An evidence based Cambodian Model for Agricultural Extension Services is defined in policy and services and are fully financed by Programme Budget by 2021, still the Programme s key performance indicators need to be measured in terms of the following: (a) percentage increase in farmer s income, particularly of resource poor farmers through participation in resilient farm businesses; (b) RGC s investment, in 2 SBK Research and Development, Interim Report 1 Baseline Survey Cohort 1, April

7 terms of Programme Budget, in private company-farmer partnership models nationally; and (c) success factors and constraints for PPP model (as in private company-farmer models) identified. Farm business profits: At baseline stage there are very few HHs engaged in agriculture businesses (only 30 HHs). Profits from each of these businesses were valued at 190,125,200 Riels or average profit per household of 6,337,507Riels (US$1,584). The project logframe does not stipulate any specific percentage increase but it would be hoped that, not only will profits increase, but that more HHs may engage in such agriculture businesses. Contribution of ASPIRE to Rural Livelihood and Food Security: The contributions of ASPIRE as a programme to rural livelihood and food security in Cambodia were extensively reviewed by the Secretariat in 2016, as well as in the first semester (January to June) of The critical mandate of ASPIRE, aside from its Goal and PDO is to boost agricultural production as well as contribute to rural livelihood and food security. In order to achieve the Goal and PDO, the programme implementation strategies of the ASPIRE were further identified to include a reorganized and revitalized agricultural extension system, an effective farm input distribution system, an autonomous analytical and management unit, a rigorous and innovative monitoring system and joint national and provincial responsibility for management and implementation. In addition, the components of ASPIRE which constitute the vehicle for achievement of the goals and programme development objective are now being shaped through improved frameworks for crop production, on-farm adaptive research, farm input distribution, farmer training, media support, infrastructural development, and staff development. The activities being carried out by the provincial programmes were noted to have made remarkable success in the agricultural and rural landscape in Cambodia. The projected achievements and impact of the ASPIRE were identified to be in the area of a revitalized extension service, local capacity building, rural infrastructural development, targeted input distribution, technology development, improved technology transfer and adoption, as all contributing to improved rural livelihoods and food security. Narrative Summary Goal: Reduced Poverty and Increased Resilience of Poor and Vulnerable Smallholder Farmers in Cambodia Key Performance Indicators Average household agricultural production value of 120,000 targeted households increased by 15% 3 Value of household assets of increased by 25% (including for climate-vulnerable households) 4 Achievements and Results Baseline: 5 Baseline values and target indicator values for the end-line survey was calculated to have reached an average of $1,168 (from 340 households interviewed undertaking rice production, cash crop growing, vegetable growing, fruit production, fish/fish raising, and livestock production), or with an increase of 15% at the end-line of $1,343. On the other hand for the value of household assets, the total value gathered by the survey team of all household assets was 3,096,225,000 Riels, giving an average per household of 9,106,544 Riels per household or US$2,277 at the baseline, and US$2,846 (baseline plus 25%) for the end-line target. Current: ASPIRE s activities and strategies toward modernization of agriculture in the country would help to sustain agricultural productivity in the long run. Employing more than half of Cambodia s labor force, agriculture has contributed significantly to poverty reduction. But high reliance on rain-dependent rice production, slow adoption of quality seeds and inadequate agricultural extension services and irrigation facilities remain key constraints in the sector. Diversifying to less water intensive crops, developing the agribusiness and agro-processing industry, promoting a modernized value chain and cost effective logistics are crucial to put agriculture back on a higher growth path. Several surveys and studies are currently being conducted to determine the extent of achievement of the Programme s Goal in quantitative terms. Upon completion, the growth rates will be established and reported in the next reporting period. 3 Targets are relative to a control group and to be achieved by end of programme unless otherwise stated 4 Households assets taken as a proxy for resilience 5 SBK Research and Development (April 2017). Interim Report 1 Baseline Survey Cohort 1. 7

8 Narrative Summary Programme Development Objective: By 2021 an enhanced Cambodian model of agriculture services is demonstrated as effective for assisting a diversity of smallholder farmers to contribute to broadbased economic growth through profitable and resilient farm businesses and is adopted as policy. Key Performance Indicators An evidence based Cambodian Model of Agriculture Extension Services is defined in policy and services are fully financed by Programme Budget by Achievements and Results Baseline: The Ministry of Agriculture, Forestry, and Fisheries approved and published a new Agriculture Extension Policy in An implementation framework and guidelines has been drafted to support roll out of the policy. ASPIRE is still in the process of finalizing the Framework and Guidelines in implementing the Agricultural Extension Policy of the Government that will assist in development of the implementation and generate evidence to refine extension policies and practice that will pave the way for the further development of the agricultural sector in the country. Current: The development of an evidence-based Cambodian Model of Agriculture Extension (CMAE) Services is still developed using several policy documents that underlines the importance of improving extension services to farmers. The aim of these extension services is to improve the living conditions of the farming families by providing technical advice and by supporting them in processes aimed at developing and applying better agricultural techniques. ASPIRE is designed to respond to the need of a strengthened system of agricultural extension. This will be especially targeted at the district level, where extension workers pass on technical skills and knowledge to farmers. In addition, the programme aims to strengthen the leadership and management skills of the Provincial Department of Agriculture (PDA) and District Offices of Agriculture (DOA).ASPIRE will also provide extension workers (both state and non-state extension service providers) access to quality materials that can support them in their day to day practice. Within the MAFF, the Department of Agricultural Extension (DAE) is the key stakeholder in the intervention of ASPIRE. The operational partners of ASPIRE are the Provincial Departments of Agriculture Forestry and Fisheries(PDAFF) in the five provinces and the DOA. Primarily the extension workers at the district level are the direct target group in the process of capacity development. Their methodological and technical skills will be further strengthened. This Semi-Annual Report for 2017 also provides the achievements towards meeting programme components, outcomes and outputs, as well as documents the results for financial management and procurement. Attempts were also made by various operating units to identify the risks involved in programme implementation, as well as the strategies to mitigate the risk. Lessons learned were also provided including the action steps in going forward. In the annexes, the Agreed Action Steps and Recommendations by the IFAD Implementation Support Mission, and the Compliance with Financing Covenants of the Loan and Grant Agreement with IFAD were presented. 8

9 I. PROGRAMME DESCRIPTION A. Background of the Programme ASPIRE has been designed as a national programme and the policy and capacity development components will have a national scope. The Provincial Sub-Prgrammes and Climate Resilient Infrastructure activities are now being piloted in five provinces, namely Battambang, Kampong Cham, Kratie, Preah Vihear and Pursat, with an expansion to at least five of the PADEE provinces and three other provinces in 2018, to be identified by Mid-Term Review and contingent upon mobilization of additional funds. The ASPIRE is being overseen by a Steering Committee (SC) co-chaired at Secretariat of State level by Ministry of Economy and Finance (MEF) and Ministry of Agriculture, Forestry and Fisheries (MAFF), and with representation from Cambodia Agricultural Research and Development Institute (CARDI), Supreme National Economic Council (SNEC), National Committee for Sub-National Democratic Development Secretariat (NCDDS) and the Ministry of Environment (MoE) as well as participating provinces together with limited number representatives of development partners, civil society (farmer organization) and the private sector. The Ministry of Agriculture, Forestry and Fisheries (MAFF) is the Executing Agency (EA) which will be responsible for overall aspects of the programme management, coordination and reporting and line departments of MAFF are undertaking the majority of technical and work at national and subnational levels. SNEC has been charged for policy research and analysis (Sub-Component 1.2). NCDDS, on the other hand, is the implementing agency for Component 4. Provincial Sub- Programme is being implemented by the five Provincial Departments of Agriculture (PDA). District Administrations are the recipients of the Climate Resilience Grants (from NCDDS) and will either implement directly or through sub-grants to the Commune Councils. The Commune Councils are contracting the Commune Extension Workers (CEWs) and play an important role in coordination and monitoring of extension services delivery. ASPIRE has been aligned with the Programme Budget of MAFF. This alignment is currently being managed by the ASPIRE Secretariat reporting to the Programme Director and is being accomplished through a phased approach. In the foundation phase, the ASPIRE results framework has been cross-referenced to relevant outputs and activities of the Programme Budget and pilot Provincial Sub-Propgrammes. ASPIRE supports selected sub-programmes of the Programme Budget. Through the Programme Budget, ASPIRE finances activities of MAFF technical agencies including but not limited to the General Directorate of Agriculture, the Department of Animal Health and Production and the Provincial Department of Agriculture. Total estimated project costs of ASPIRE amounted to US$82.3 million over seven years , including US$4.1 million of contingencies. The financing of the ASPIRE is through a loan from IFAD of US$26.1 million, a grant (financed through IFAD by ASAP) of US$15.0 million, Government contribution of about US$11.4 million of which US$3.0 million represents taxes, a grant from i3e to IFPRI of US$ 0.9 million, activities financed by USAID of US$0.33 million and a further US$12.4 million to be mobilised from additional partners. Contributions in kind of US$5.8 million from project beneficiaries, US$7.2 million from sub-national administrations and US$3 million from private partners are assumed in the total figure. The ASPIRE Programme is being managed by a MAFF Secretary of State as Programme Director. The Programme Director is supported by two Programme Managers within MAFF (responsible for (a) extension, technology and research, and (b) programme budgeting, respectively) and a Programme Manager within NCDD-S. The Programme Manager Extension, Technology and Research is the Director General of the General Directorate of Agriculture, MAFF. The Programme Manager Programme Budgeting is the Director of the Department of Planning and Statistics, MAFF. The Programme leadership team includes the Team Leader of the Decentralized Advisory Team who is also working as the ASPIRE Programme Advisor. The Programme has four main components: (i) Evidence-based Policy Development, (ii) Capacity Development for Extension Services, (iii) Improved Extension Services, and (iv) Infrastructure Supporting Climate Resilient Agriculture. 9

10 B. Goals and Objectives Since the beginning of the Programme in 2015, the goal of the Programme has not been changed, i.e. to reduce poverty and increase resilience of poor and vulnerable smallholder farmers in Cambodia. On the other hand, the Programme s development objective is that by 2021 an enhanced Cambodian model of agriculture services is demonstrated as effective for assisting a diversity of smallholder farmers to contribute to broad-based economic growth through profitable and resilient farm businesses and is adopted as policy. This will be achieved through three outcomes which are interdependent: (1) a national investment programme that can be supported by multiple donors is designed to implement an updated extension policy that provides smallholder farmers with access to quality information services; (2) the Ministry of Agriculture, Forestry and Fisheries (MAFF) has institutional and human resources capacity to manage an effective, demand driven system linking researchers and knowledge-based agencies to extension agents in public sector, private sector and civil society and to farmers; and (3) at least 120,000 smallholders have improved and resilient farm businesses as a result of integrated, demand led extension services and investments in climate resilient infrastructure. C. Programme Area and Target Population Programme Area. ASPIRE is a national programme. The Borrower/Recipient has selected five pilot provinces. Subject to satisfactory progress, the Programme will expand into the five target provinces of the ongoing Programme for Agricultural Development and Economic Empowerment (PADEE) when it ends in 2018, plus three additional provinces to be identified by Mid-Term Review. The selected pilot provinces are Battambang, Kampong Chhnang, Kratie, Preah Vihear and Pursat. The five PADEE provinces are Kampong, Kandal, Prey Veng, Svay Rieng and Takeo Target Population. The target beneficiaries of the Programme are productive poor and vulnerable smallholders. Farmers in this group produce for the market as well as for own consumption and can invest small amounts in improving production. D. Programme Components The Programme has the following four main components: 1. Component 1: Evidence Based Policy Development supports the definition and adoption in policy of the Cambodia Model for Extension Services and resource mobilisation for a programme based implementation approach. This component will demonstrate an improved and inclusive policy process. A framework for mobilisation of resources to support extension in a Programme Based Approach will be a key output of the policy process. This component will have two sub-components: (a) Sub-Component 1.1: Policy Coordination and Development, which includes coordination, policy drafting and resource mobilisation activities. (b) Sub-Component 1.2: Policy Research and Analysis. The Supreme National Economic Council (SNEC) will build on its role of high-level policy advice by establishing an Analytic Unit for the Agriculture Sector, conducting or commissioning policy studies and trials in collaboration with the International Food Policy Research Institute (IFPRI), and formulating evidence-based policy recommendations. 2. Component 2: Capacity Development for Extension Services is being implemented through two sub-components focused on institutional development and strategic human resources respectively. (a) Sub-Component 2.1: Improving Extension Quality and Knowledge Management assists MAFF to improve the definition of roles and responsibilities of different agencies and to establishes an Extension and Research Advisory Board overseeing an Extension Hub within the General Directorate of Agriculture. (b) Sub-Component 2.2: Strengthening Human Resources for Extension supports a Human Resources Development Strategy, strengthens the skills of extension staff in key strategic areas including leadership and adult learning methods, and support academic 10

11 education in extension for full-time students and for serving field personnel including Commune Extension Workers (CEWs). 3. Component 3: Improved Extension Services will pilot Provincial sub-programmes within the MAFF Programme Budget framework, finance grants for piloting and testing innovative approaches to extension and support a mass media extension campaign. This component will have three sub-components: (a) (b) (c) Sub-Component 3.1: Provincial Sub-Programmes is being implemented within the Programme Budget structure of MAFF. An improved Provincial Agriculture Strategic Plan will be prepared through inclusive dialogue. Provincial Departments of Agriculture will allocate grant funds to extension services with a mix of comparative models including public sector service delivery, a farmer-to-farmer extension model supported by the CEWs, public-private partnerships and contracting out. Where appropriate, existing farmer organisations and cooperatives will be the basis for Smallholder Learning Groups (SLGs) and will play a major role in the famer-to-farmer learning networks. Sub-Component 3.2: Innovations for Climate Resilient Agriculture supports demonstration and testing of promising innovations under smallholder farm conditions. Suitable technologies may include improved on-farm water management, adjustments to the cropping calendar, introduction of new crops/varieties with a potential to improve climate resilience. Sub-Component 3.3: Mass Media Campaign on extension activities include climate change awareness and will promote climate smart agriculture. Activities will include: (i) radio broadcasts (ii) an educational television show with an entertaining, competitionbased format and (iii) a mobile feedback show engaging farmers in discussion about the programmes. 4. Component 4: Infrastructure Supporting Climate Resilient Agriculture: This component scales up a model successfully piloted by the National Committee for Sub-National Democratic Development (NCDD) in which Districts develop Climate Resilience Strategies and Performance Based Climate Resilience Grants. Eligible expenditures will be the additional costs of climate proofing productive infrastructure or constructing climate adaptive infrastructure. Investments will be identified by the Commune Councils from their development plans and the non-climate related costs will be financed by the Commune-Sangkat Fund. Districts meeting performance targets will receive three annual PBCR Grants in increasing amounts and will become eligible for one Special Programme Climate Resilience Grant to finance a larger investment. E. Implementation Arrangements 1. Lead Programme Agency. MAFF is the Lead Programme Agency under the overall coordination of the Ministry of Economy and Finance (MEF). 2. Programme Steering Committee. The Programme Steering Committee (SC) is being cochaired at Secretary of State level by MEF and MAFF, and with representation from the Council for Agriculture Rural Development (CARD), the Supreme National Economic Council (SNEC), the NCDD Secretariat (NCDD-S) and the Ministry of Environment (MoE) as well as participating provinces together with representatives of development partners, civil society (farmer organisations) and the private sector who will be appointed for not less than one year. For effective work and decision-making the total membership of the SC should not exceed 20 persons. 3. Programme Staff. The Programme is headed by a MAFF Secretary of State as Programme Director. The Programme Director is being supported by two Programme Managers within MAFF responsible for (a) Extension, technology and research, and (b) Programme Budgeting, respectively) and one Programme Manager within NCDD-S. The Programme Manager - Extension, Technology and Research is the Director General of the General Directorate of Agriculture, MAFF. The Programme Manager - Programme Budgeting - is the Director of the Department of Planning and Statistics, MAFF. The key staff of the Programme has been recruited by the Government and have be appointed after receiving the non-objection from IFAD. 11

12 4. The Programme Director oversees a dedicated ASPIRE Secretariat comprised of the following: (a) (b) a Secretariat Support Team (SST) of contracted staff that have been primarily focused on programme management aspects of the ASPIRE programme itself, and, a Decentralized Advisory Team (DAT) members have been contracted to primarily focus on capacity building of central and provincial departments of MAFF related to performance based programme budgeting and management, agriculture and extension related issues under Components 2 and 3 and policy research under Component The ASPIRE Secretariat has been tasked to undertake programme management, coordination and monitoring and evaluation tasks, as well as implementation of sub-component 1.1 (Policy Coordination and Development). The Secretariat has been staffed by about 10 fulltime contracted staff selected on the basis of merit, experience and potential to learn fast. Through the Programme Budget mechanism, the ASPIRE Secretariat has been coordinating the work plans of the technical agencies, principally the General Directorate of Agriculture and Department of Animal Health and Production at national level and the PDA. MAFF agencies and line departments will undertake the majority of technical work at national and sub-national levels under Components 1, 2 and SNEC. The mandate of SNEC is to provide policy advice to the senior leadership of RGC. SNEC consists of senior officials of MEF and other Ministries supported by a Secretariat. The role of SNEC in ASPIRE will add to the policy dialogue and link ASPIRE to senior policy-making levels of Government. SNEC participation in ASPIRE in turn will enhance the capacity of RGC to formulate policy in the agriculture sector. 7. NCDD-S. The primary role of NCDD-S in the Programme shall be implementation of Component 4. NCDD-S will also assist in facilitating cooperation with Provincial and District administrations, particularly for planning purposes and co-financing of the CEW position through the Commune budget. 8. The PDA has been the implementing agency for the Provincial Sub-Programmes (PSP). PDA will be responsible for preparation of the annual budget for the PSP which will be consolidated into the Programme AWPB. Under the PSP, PDA will allocate funds to support activities of DAO, contracting-out arrangements, public-private partnerships and CEW. PDA will be responsible for monitoring all PSP activities and will be accountable for results.. The Programme will build permanent capacity in DAO. The intention is to phase in the Programme at a rate which does not exceed the capacity of PDA to assign staff to the DAO. 12

13 II. SUMMARY OF ACHIEVEMENTS AND RESULTS A. Progress Towards Meeting the Programme Development Objective ASPIRE s Goal and Programme Development Objective has remained the same since it was adopted in The Goal of ASPIRE is the same Goal of the Results-Based Country Strategic Opportunities Programme, i.e. reduced poverty and increased resilience of poor and vulnerable smallholder farmers in Cambodia, with the following two indicators, their level of achievement at the baseline and the targets for the end of the Programme: Indicators Baseline Values End of the Programme Values 6 Total Values = 1,588,808,905 US$1,343 (15% increase from Riels of 340 households baseline). surveyed; Average household production = 4,672,965 Riels = US$1,168 Average households agricultural production value of 120,000 target households increased by 15% Value of household assets increased by 25% (including for climate vulnerable households) Total Value of Household Assets = 3,096,225,000 Riels Average per households = 9,106,544 Riels = US$2,277 US$2,846 (increased by 25% or US$2, %). The key performance indicators that will have to be measured from the baseline to the end of the Program, as part of the impact assessment are based on the following: Average household s agricultural production value of targeted households increased by 15%; Value of household assets increased by 25%; and Smallholder farm businesses with increased profits. Value of Household s Agricultural Production: For the baseline values, SBK Research and Development Team took the figures from the agricultural production of at least 340 sampled households from six sources: Rice production; Cash crop growing; Vegetable growing; Fruit production; Fishing/fish raising; and Livestock production. As provided in part 5 of their report, the produce from the above activities was valued by applying the average sales price for each type of produce to the total produced for all crops (rice, cash crops, vegetable growing and fruit production). For fishing/fish raising the net income was used as the value of production as there was no data available for size of fish catches. Livestock production value was calculated as the total net income plus the value of animal eaten (again, applying the average sales price for each animal to the numbers of animals consumed by the HH). Using this calculation method, the base values and the target indicator values for the endline (EL) survey are as follows: 6 SBK Research and Development, Interim Report 1 Baseline Survey Cohort 1, April

14 Production activity Total value # HHs Average per HH Average in USD EL Target: 15% increase Rice production 983,445, ,267,260 $ 817 $ 939 Cash crop growing 87,699, ,119 $ 226 $ 260 Vegetable growing 88,309, ,292 $ 190 $ 219 Fruit production 24,217, ,604 $ 144 $ 166 Fish/fish raising 28,698, ,885 $ 149 $ 172 Livestock production 376,437, ,271,749 $ 318 $ 366 Total 1,588,808, ,672,965 $ 1,168 $ 1,343 Value of HH assets: SBK Research and Development Team has estimated the total value of household assets visited to have reached 3,096,225,000 Riels, giving an average per household of 9,106,544 Riels per household ($2,277). Using this as a reference, the indicator for the end-line survey will have to be $2,846 (or from $2,277 plus 25% increase). The same package of assets will be used again during the endline survey to enable comparison of numbers and value. But two additional questions will be included to capture possible added investment in HH assets these are: Expenditure on house improvements (or purchase of new house buildings) over the last three years (this can be divided into segments such as roofing, walls, floors, toilet construction etc. which can be double checked against the answers to the type and size of housing) Expenditure on any new assets over the last three years that were not included in the package of assets on the baseline survey form The Programme Development Objective that contributes to the Goal is: By 2021, an enhanced Cambodian model of agriculture service is demonstrated as effective for assisting a diversity of smallholder farmers to contribute to broad-based economic growth through profitable and resilient farm businesses and is adopted as a policy. It was understood by the Programme Management Team from the PDO that the Program will have an enhanced CMAE (Cambodian Model for Agricultural Extension) by year 2021, through the development and testing of innovative models for agricultural technology transfer and application aimed to generate additional farm income among smallholder farmers in high value markets with a potential for scaling up. Although the PDO indicator states that An evidence based Cambodian Model for Agricultural Extension Services is defined in policy and services and are fully financed by Programme Budget by 2021, still the Programme s key performance indicators need to be measured in terms of the following: (a) percentage increase in farmer s income, particularly of resource poor farmers through participation in resilient farm businesses; (b) RGC s investment, in terms of Programme Budget, in private company-farmer partnership models nationally; and (c) success factors and constraints for PPP model (as in private company-farmer models) identified. Farm business profits: At baseline stage there are very few HHs engaged in agriculture businesses (only 30 HHs). Profits from each of these businesses were: Agriculture businesses Profit in 2016 # HHs Profit/HH Profit in USD EL Target Rice milling 80,566, ,070,750 2,518 No specific % Trading in agriculture produce 66,500, ,312,500 2,078 has been Trading in agriculture inputs 6,500, ,500,000 1,625 defined in the Vegetable processing 11,140, ,570,000 1,393 TOR so any Fruit processing 16,226, ,056,550 1,014 increase is Palm tree products 9,193, ,313, considered Total 190,125, ,337,507 1,584 successful The project logframe does not stipulate any specific percentage increase but it would be hoped that, not only will profits increase, but that more HHs may engage in such agriculture businesses. 14

15 Caution on project indicators: The SBK Research and Development Team considers that the first two indicators above may be very ambitious for a relatively short (three-year) project intervention. Regarding assets: it was noted in the previous paragraph that asset values are quite high compared to values from other surveys conducted (e.g. the PADEE project). Some HH assets may be new and thus of high value; such assets, if not replaced by others in the next two year, will depreciate in value over the next few years. Rice production contributes the largest share of agriculture production value. The data discussed in the previous chapter noted that rice yields for lowland wet season rice (the main type of rice grown) were high compared to the national average (see note below). Thus there may be limited scope to achieve higher yields. The high rate of natural disasters that are occurring is also a concern for the value of agriculture production. It should also be noted that MAFF uses only 0.17% as their goal for annual rice yield increases. With such modest increases in rice yields, it would take a large increase in rice prices (which is unlikely) to achieve a 15% increase in the value of rice production. Contribution of ASPIRE to Rural Livelihood and Food Security: The contributions of ASPIRE as a programme to rural livelihood and food security in Cambodia were extensively reviewed by the Secretariat in 2016, as well as in the first semester (January to June) of The critical mandate of ASPIRE, aside from its Goal and PDO is to boost agricultural production as well as contribute to rural livelihood and food security. In order to achieve the Goal and PDO, the programme implementation strategies of the ASPIRE were further identified to include a reorganized and revitalized agricultural extension system, an effective farm input distribution system, an autonomous analytical and management unit, a rigorous and innovative monitoring system and joint national and provincial responsibility for management and implementation. In addition, the components of ASPIRE which constitute the vehicle for achievement of the goals and programme development objective are now being shaped through improved frameworks for crop production, on-farm adaptive research, farm input distribution, farmer training, media support, infrastructural development, and staff development. The activities being carried out by the provincial programmes were noted to have made remarkable success in the agricultural and rural landscape in Cambodia. The projected achievements and impact of the ASPIRE were identified to be in the area of a revitalized extension service, local capacity building, rural infrastructural development, targeted input distribution, technology development, improved technology transfer and adoption, as all contributing to improved rural livelihoods and food security. Table 2.1: Achievements Towards Programme Goal and Programme Development Objective Narrative Key Performance Achievements and Results Summary Indicators Goal: Reduced Poverty and Increased Average household agricultural production value of 120,000 Baseline: 9 Baseline values and target indicator values for the end-line survey was calculated to have reached an average of $1,168 (from 340 households interviewed Resilience of Poor targeted households undertaking rice production, cash crop growing, and Vulnerable Smallholder Farmers in increased by 15% 7 Value of household assets of increased by vegetable growing, fruit production, fish/fish raising, and livestock production), or with an increase of 15% at the end-line of $1,343. On the other hand for the value of Cambodia 25% (including for household assets, the total value gathered by the survey climate-vulnerable households) 8 team of all household assets was 3,096,225,000 Riels, giving an average per household of 9,106,544 Riels per household or US$2,277 at the baseline, and US$2,846 (baseline plus 25%) for the end-line target. Current: ASPIRE s activities and strategies toward modernization of agriculture in the country would help to sustain agricultural productivity in the long run. Employing more than half of Cambodia s labor force, agriculture has contributed significantly to poverty reduction. But high reliance on rain-dependent rice production, slow adoption of quality seeds and inadequate agricultural extension services and irrigation facilities remain key constraints in 7 Targets are relative to a control group and to be achieved by end of programme unless otherwise stated 8 Households assets taken as a proxy for resilience 9 SBK Research and Development (April 2017). Interim Report 1 Baseline Survey Cohort 1. 15

16 Narrative Summary Programme Development Objective: By 2021 an enhanced Cambodian model of agriculture services is demonstrated as effective for assisting a diversity of smallholder farmers to contribute to broadbased economic growth through profitable and resilient farm businesses and is adopted as policy. Key Performance Indicators An evidence based Cambodian Model of Agriculture Extension Services is defined in policy and services are fully financed by Programme Budget by Achievements and Results the sector. Diversifying to less water intensive crops, developing the agribusiness and agro-processing industry, promoting a modernized value chain and cost effective logistics are crucial to put agriculture back on a higher growth path. Several surveys and studies are currently being conducted to determine the extent of achievement of the Programme s Goal in quantitative terms. Upon completion, the growth rates will be established and reported in the next reporting period. Baseline: The Ministry of Agriculture, Forestry, and Fisheries approved and published a new Agriculture Extension Policy in An implementation framework and guidelines has been drafted to support roll out of the policy. ASPIRE is still in the process of finalizing the Framework and Guidelines in implementing the Agricultural Extension Policy of the Government that will assist in development of the implementation and generate evidence to refine extension policies and practice that will pave the way for the further development of the agricultural sector in the country. Current: The development of an evidence-based Cambodian Model of Agriculture Extension (CMAE) Services is still developed using several policy documents that underlines the importance of improving extension services to farmers. The aim of these extension services is to improve the living conditions of the farming families by providing technical advice and by supporting them in processes aimed at developing and applying better agricultural techniques. ASPIRE is designed to respond to the need of a strengthened system of agricultural extension. This will be especially targeted at the district level, where extension workers pass on technical skills and knowledge to farmers. In addition, the programme aims to strengthen the leadership and management skills of the Provincial Department of Agriculture (PDA) and District Offices of Agriculture (DOA).ASPIRE will also provide extension workers (both state and non-state extension service providers) access to quality materials that can support them in their day to day practice. Within the MAFF, the Department of Agricultural Extension (DAE) is the key stakeholder in the intervention of ASPIRE. The operational partners of ASPIRE are the Provincial Departments of Agriculture Forestry and Fisheries(PDAFF) in the five provinces and the DOA. Primarily the extension workers at the district level are the direct target group in the process of capacity development. Their methodological and technical skills will be further strengthened. B. Achievements Towards Meeting Programme Components, Outcomes and Outputs The outputs and activities of ASPIRE are organized into four components: Knowledge-based policy; Capacity Development for Extension Services; Improved Extension Services; and Climate Resilient Productive Infrastructure. These components are mutually interdependent: outputs in one component may be contingent on achievement of outputs in another, and the outcomes will be achieved through the combined effect of all components. Effective management of knowledge, communications, and monitoring and evaluation have been considered as essential to the success of this approach and are being coordinated by the ASPIRE Secretariat. The ASPIRE communications strategy has been integrated into all components and has been supported by specialists based at the Secretariat. 16