Description of Project:

The Climate-Friendly Agribusiness Value Chains Sector Project is aimed at improving the competitiveness of agricultural value chains in Kampong Cham and Tboung Khmum province along the Greater Mekong Subregion (GMS) southern economic corridor, and Kampot and Takeo provinces along the south coastal economic corridor. The project will boost the climate resilience of critical agriculture infrastructure and help commercialize rice, maize, cassava, and mango production. It will help increase crop productivity and diversification; improve the capacity for storage, processing, and quality and safety testing; and promote the use of solar and bioenergy. It will strengthen the technical and institutional capacity for climate-smart agriculture (CSA) and create an enabling policy environment for climate-friendly agribusinesses. This will in turn promote long-term environmental sustainability and enhance the profitability for farmers and agribusinesses.

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Description of actual services will be provided by our organization:

(i) The development of an agribusiness policy and standards, of which the latter is related to

climate smart agriculture (CSA), Cambodia’s good agricultural practices CAMGAP and the sustainable rice platform (SRP);

(ii) The management and operation of provincial agricultural training facilities and mechanization workshops, the facilities of which the project is constructing or rehabilitating;

(iii) Working with The Cambodian Agricultural Research and Development Institute (CARDI) to commercialize its seed production and distribution activities;

(iv) On-farm training relating to standards compliance within the value chain, the operation and maintenance (O&M) of agricultural machinery which includes the design and fabrication of hand tools and the O&M of cooperative rice, maize and cassava drying and storage units. In irrigation systems, the O&M of such systems and the establishment and capacity building of Farmer Water User Communities (FWUCs) and laser Land levelling within those irrigation systems that are supported;

(v) Curriculum development and the organization of formal training in the project sponsored mechanization workshops and Provincial Agricultural Development Centers relating to standards compliance, agribusiness, agricultural cooperative accountancy requirements and revenue generation, repair and operation of machinery used in agricultural primary

production and primary processing;

(vi) On-farm training and demonstration initiatives to complement the formal training;

(vii) Coordination of PPP and private sector activities;

(viii) In relation to project infrastructure, the agricultural cooperatives will be solar powered, as will the PADC, and PV will be used in the submersible pumps to supply water to the drip irrigation demonstration sites as such the national and international PV specialists will be recruited to assist. Finally, the biodigester program will provide a valuable source of bioslurry which, with the proper processing and procedures, can be converted into organic fertilizers. The international bio-slurry expert will assist and support to the program. With guidance from the GDAHP and in close cooperation with PMU and PIC, together with the provincial project implementation units (PPIU); ‘

(ix) CSA and agribusiness: a. Build the capacity of the financial sector to evaluate cl imate risk and recognize lending oppmtunities for bank/MFI lending for climate fr iendly investments in both the agroforestry and sustainable agriculture sector and the renewable and low-emission energy sector.

1. Build on the self-regulatory momentum unde1iaken under the Mekong Sustainable Finance Working Group (USA ID project) and the MFI Client Protection Principle.
2. Strengthen linkages, trust and shared understanding between lenders, borrowers, and input and services providers regarding climate friendly investment opportunities

(x) Private Sector Financing Incentives: develop and implement commercial incentives for banks to abide by the agreed best practice and climate change screening principles; and

(xi) Crop Insurance: support the growth and structure of a few pilot crop insurance schemes currently underway or in planning stages.