CHECK LIST FOR NARRATIVE/FINANCIAL REPORT ... 4. Narrative/Financial report reviewed by ACOff eam Leader

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    Award 10

    Project 10

    Reporting Period

    : Enhanced Integrated Framework through its Trust Fund (EIF-TF)

    : Cambodia Export Diversification and Expansion Programme (CEDEP) 11-CassavazyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA



    : April- December 2014

    1. Narrative report prepared by Project Manager

    2. Financial report prepared by Project Assistant/

    Programme Finance Associate

    3. Narrative/Financial report reviewed by

    Programme Analyst

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    4. Narrative/Financial report reviewed by

    ACOff eam Leader

    s. Financial report reviewed by Finance Manager

    6. Narrative/Financial report cleared by oCO-P

    8. Signed Narrative/Financial report sent to donor

  • United Nations Development ProgrammezyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA

    m il zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA Empowered lives.

    Resilient nations.

    26thFebruary 2015

    Dear Mr. Bouloukos,

    Subject: 2014 Annual Project Progress report of the Cambodia Export

    Diversification and Expansion Program II (CEDEPII) Update Project

    Reference is made to the agreement signed on 08 April 2014 (EIF-TIER2-KHM-

    005) between the United Nations Office for Project Service (UNOPS) and the United

    Nations Development Programme (UNDP) in Cambodia for the CEDEP II, Cassava


    As required under paragraph 14.a of the agreement, please find enclosed the

    2014 Annual Project Progress report which indicates the progress, risks and issues, and

    financial report as of 3pt December 2014.

    Should you have any questions regarding the report, please do not hesitate to

    contact Ms. Ratana Norng, Programme Analyst, UNDP at 023-216-167 (ext.255) or

    Your Sincerely,

    ~.~ Setsuko Yamizaki

    Country DirectorzyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA

    Mr. Adam Bouloukos

    Director, GVAC, UNOPS


    1. 2014 annual project progress report

    2. Financial Report from 01 January to December 2014

    UNDP in Cambodia

    No. 53, Street 51, Boeung Keng Kang, Phnom Penh, Cambodia; Tel: 023216167, Fax:023216257zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBAfo

    E-mail:; C.- or';

  • Technical/Narrative Report

    Semi-Annual and Annual Consolidated Report

    Submitted by thezyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBANational Implementation Unit (NIU) to

    The Executive Secretariat (ES) for the Enhanced Integrated Framework

    and the ElF Trust Fund Manager (TFM)

    Tier 2 project in Cambodia

    Project title: Cambodia Export Diversification and Expansion Programme (CEDEPII)-Cassava


    ffiDate of approval by ElF Board: 13th January 2014

    Date of approval by ElF Board: 13th January 2014

    Date of signature of MoU: 8th April 2014

    Starting date: 8th April 2014

    Duration of project: 3 years

    Total project budget: USD1,303,485

    Amount received under this Agreement: USD997, 026.00

    Amount received from other sources of funding: USD306,459.00

    Contribution of UNDP: USD137,574.00

    Type of report: Semi-annual progress report

    Time period covered by this report: April to December 2014

    Amount spent during the period (US$): 33,627.00

    Date: 16 February 2015

    Name of person reporting: Ratana Norng

    Function of person reporting: Programme Analyst

    Name of contact person: Ratana Norng

    Function of contact person: Programme Analyst

    Telephone/fax: +855 16581596

    E-mail address:

    Napoleon Navarro,

    Deputy Country Director, Programme

    Authorized Official Name, Date, Signature and Stamp:zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA


    I&, .»:


    1.1 Overview of the country situation in project implementation

    o Please briefly describe any significant economic, soclal, political and trade

    developments that influenced project implementation in the reporting period.

    As the previous year, large volumes of cassava have been exported to the

    neighboring countries. The cassava flow is facilitated by silos/dealers buying

    cassava products (both fresh and dried chips) for storing, processing and then

    selling to Thai and Vietnamese Traders. Some of the silos along the borders

    are the joint ventures between Cambodian and foreigners (Thai, Vietnamese

    and Chinese). Trucks from the two neighboring countries have crossed the

    borders to transport cassava products collected by silos or buy directly from

    the farmers at their gates.

    The existed starch processing factories decreases its number dramatically. For

    instance in Kompongcham and Thborngkhmum which used to be one

    province, its starch processing factories drop downs from 210 to fives. Among

    the five starch processing factories in the above provinces, only three are

    operating but at limited capacity for supplying the local starch market. The

    main reason of stop or limited operation because of the high price of

    electricity cost. This single cost alone drives the production cost high which

    makes the local starch products not competitive with the imported ones.

    Some of them are now developing a biogas storage to generate energy from

    polluted water to run their factories; this is a solution implemented to lower

    the production cost. However, the solution also brings a challenge to the

    factories as it requires up-front capitals to set up storage and facilities.

    Besides, the new and old cassava exporters are struggling to export cassava

    dry chips with the brand name of Cambodia to China. They raised that getting

    buyers is not an issue as long as they can supply cassava at competitive prices

    with quality as the specification. They raised their challenges on export costs

    and informal costs which are unpredictable and unacceptable, weak capacity

    of farmers to grow cassava with the conformance of the quality, and lack of

    revolving capital to buy cassava from farmers and to cover all related export


    For this year, cassava flows substantially to Thailand. Most of the silo owners

    along Cambodian and Thailand borders reported that farmers from provinces

    close to Vietnamese borders transported their cassava to sell to them. They

    explains that because the prices are a little better than the Vietnamese sides.

    It is critical that the far distance increasing transportation cost may not

    provide much margin to those farmers.zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA



  • The recent downfall of the oil price is a key topic to be studied. There are

    concerns that ethanol business makes un-profitable because of the above

    reason so leads to the decrease of demand for its materials, mainly cassava.

    Its effect may hit hard to the Cambodian cassava sector as the country has

    least capacity for cassava processing.

    The prices of dry chip and starch are gradually fluctuating at a small scale

    according to the Thai price index. The prices at Cambodia are fluctuating

    accordingly. It cause from the competition among local buyers.

    There are more interest of development partners to intervene in the cassava

    sector. GIZ is implementing a cassava project in Batteaymeanchey and

    Ottameanchey Provinces. JICA is assisting a Japanese Company to conduct a

    feasibility study of setting up a cassava processing factory in

    Batteaymeanchey. On the other hand, UNDP's CCPII and SNV's Cassava

    Climate Smart Agriculture project s will end by the end of March 2015.

    1.2 Effects on project objectives

    o Please describe how the above changes affected or will potentially affect the

    project objectives.

    The flow of cassava to neighboring countries without the control from the

    government suffers local exporters as they have to compete to buy the

    cassava products. This is their serious challenge as they have not much

    working capital to buy enough stock as the cassava leaks quickly.

    Without the coordination among the silos/ cassava traders, the price will

    fluctuate. The traders can lower the price through various ways such based on

    the international price, the availability of cassava products at each time,

    presence of the same buyers/ competitors, and distance from farms to selling

    points. The farmers are the ones suffer much from the price fluctuation

    causing from the fluctuation of international market and competition among

    local buyers. Moreover, since the supply chain in the country is n