Implementation Status & Results Cambodia Cambodia Trade Facilitation and Competitiveness (Julian Clark co-ttl) (P089196)
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1 Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Cambodia Cambodia Trade Facilitation and Competitiveness (Julian Clark co-ttl) (P089196) Operation Name: Cambodia Trade Facilitation and Competitiveness (Julian Project Stage: Implementation Seq.No: 9 Status: ARCHIVED Archive Date: 14-Oct-2012 Clark co-ttl) (P089196) Country: Cambodia Approval FY: 2005 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Commerce Key Dates Board Approval Date 02-Jun-2005 Original Closing Date 01-Dec-2009 Planned Mid Term Review Date Last Archived ISR Date 07-Apr-2012 Effectiveness Date 12-Dec-2005 Revised Closing Date Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to promote economic growth by reducing transaction costs associated with trade and investment, introducing transparency in investment processes, and facilitating access of enterprises to export markets. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) losure Authorized Public Disclosure Authorized Component Name Component Cost Component 1: Trade Facilitation 5.56 Component 2: Export Market Access Fund 2.85 Component 3: Private Participation in infrastructure and investment promotion 0.47 Component 4: Legal Transparency 0.49 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview The TFCP was closed on July 31, 2012 after restructuring and a 32-month closing date extension. Achievement ofprojectdevelopmentobjectives has been moderately satisfactory after a field assessment done during the ICR mission (ICR preparation isongoing). Page 1 of 6
2 ForPDO Component 1 (Project's main component): Customs Automation (ASYCUDA World) has benefited traders and privatesector as customs process time becomes shorter and more predictable in clearing declarations and releasing goods, and simplifyingtrade documents as well as greater consistency and transparency in how this government agency treats traders. Number of documentsrequired to clear imports has been reduced to 10 (from 44 during the time of project design in 2005 and15 at the time of projectrestructuring in2009 and to 10 at the time of project closing date). Share of customs declaration processed through"asycudaautomated System" rose to nearly 100% by the time of project closing date (July 31, 2012) compared to targeted objective ofabove 80% (baseline PDO was29%) and similarly, availability of the "ASYCUDA Customs Automated System" also expanded to nearly 100%.Time required for customs clearance of shipment fell from 6.5 days at the time of project preparation (ICA2004) to 5.1 days in2012 (preliminary result of ICA 2012). And finally, share of shipment selected for physical inspection (secondary inspection)at the port of Sihanoukville fell to 14.2% by the time of project closing date July 2012 (well achieved PDO target rate ofbelow16%). An outcome associated with this progress is also respected in Logistics Performance Index ranking in 2012 (LPI 2012)where Cambodia made a 28- ranking jump compared to previous ranking (LPI 2010) done two years ago. This makes Cambodia the 12thfastest reformer in the world over two years an done of the star performers among Low-Income Countries (9th place). A smallsetback under this component was the project failed to computerize (automate) the Certification of Origin (CO) under the Ministryof Commerce which is mainly due to failed procurement that resulted from receiving non-compliant/non-responsive bidders. Thiscomponent is considered as satisfactory (If CO automation was done, this component would have been considered as highlysatisfactory). For PDO component 2 (Export Market Access Fund): The matching grants to promote exports also succeeded in openingnew markets and encouraging new exporters. 65 firms and associations have become beneficiaries of EMAF with export developmentplan prepared (well above PDO target of 50 firms). Of the 65 firms and association,13 are new exporting firms (short of PDO targetof 30 new exporters). The Better Factories Cambodia initiative (alsoemaf beneficiary) has also promoted the opening of new marketsthrough encouraging greater social responsibility among garment factory managers regarding the wages and working conditions oftheir labor forces (mostly young women), a quality assurance that has gained the industry wider and deeper access with leadingretail chains in USA and Europe markets. In the same time, non-donor revenues for Better Factories Cambodia (BFC) reached 55% bythe end of 2011 and increased to 75% by 2012 (Committed budget), this has met the targeted PDO of above 65%. This component isconsidered as satisfactory. For PDO component 3 (PPI andinvestment): The area where the project has been less successful is undercomponent 3, managed by the Council for the Development ofcambodia (CDC),a Concessions Law was developed and adopted by parliamentand relevant officials were trained, but no pilot transaction of private participation in infrastructure(ppi) was launched. Thisis not altogether surprising, as the preparation of the legal framework and procedures and the corresponding training wereovertaken by the global financial crisis of , which deterred such investment almost every where, especially in new countries. But at the least there should be a low-cost, low-risk pilot operations done rather than the relatively high-cost,high-risk proposals put forward. The targeted PDO of having 3PPI piloted isnot met and similarly the Investment Tracking System'srolling out plan to 7 CDC departments has not materialized by the closing date (July 2012). The Investor Tracking System isoperational at one key department (Project Evaluation and IncentivesDepartment) only. And finally Cambodia's Ranking in GlobalInvestment Promotion Benchmarking done in 2012 fell to 28% (fell short of PDO target of 50%).This component is rated asunsatisfactory. For PDO component 4 (Legal Transparency): The websites for the Ministry ofjustice ( and thesupreme Court ( have been up and running and successful training sessions have been conducted butthe volume and content of information available on those websites fall short of expectations. Those sites are supposed to makeavailable to the public all cases or at least 50% of final judgments in the SupremeCourt and in the Court of Appeal. Encouragingprogress made by the Supreme Court is the posting its civil and criminal judgment cases from1997 up to 2007 (and promised to beupdated more later) and with most updated hearing schedules available to the public,the Ministry of Justice's site has also beenimproved recently, but the volume of information remained short of targeted PDO. TheTrade Information Website (TIW), which wasadded to this component during restructuring, and is supposed to be carried out undertheministry ofcommerce, has not beenaccomplished. This component is rated moderately unsatisfactory. Locations Country First Administrative Division Location Planned Actual Cambodia Krong Phnum Penh Phnom Penh Cambodia Khett Preah Seihanu Sihanoukville Cambodia Not Entered Kingdom of Cambodia Page 2 of 6
3 Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Quality improvement in investment climate. Text Value 74% 53.0% 64% The number of firms reporting corruption as a Date 12-Aug-2004 moderate, major or severe problem declinesby 10% ICA 2003/2004 Preliminary Investment Climate Assessment 2012 Share of traders considering "Customs and Percentage Value Trade" as a severe or very severe constraint Date 30-Sep-2009 July/September 2009 Cambodia Rapid Firm Survey (new baseline set during 2009 restructuring) Preliminary Investment Climate Assessment 2012 Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of documents required to clear Text Value imports Project Restructuring Doing Business 2012 Share of shipments selected for secondary Text Value 16% 14.2% Below 20% inspection at the port of Sihanoukville (Red channel) Risk-based selection. Risk Management System works along the line of ASYCUDA System (Red channel) Risk-based selection. Risk Management System works along the line of ASYCUDA System Time to clear import declarations. Text Value 5.1 days 5.1 days Less than 3.0 days 31-Jul days was set at the 2009 Project Restructuring and 6.5 days was the number of days spent during the project design. Preliminary Investment Climate Assessment 2012 Number of firms preparing draft export Text Value development plans Project Restructuring EMAF Manager Final Report Number of new exporters created. Text Value Page 3 of 6
4 Date 19-Nov Project Restructuring EMAF Manager Final Report Number of PPI contracts piloted under the new Text Value PPI contracts to be piloted Law on Concessions (including public under the Law on Concession disclosure and appropriate procurement 31-Jul-2013 process) 2009 Project Restructuring. Council for the Development of Cambodia (CDC) Ranking in Global Investment Promotion Text Value 2008: 47% (2006: 28%) 2012: 28% Above 50% Benchmarking Date 31-Dec Project Restructuring Global Investment Promotion Benchmarking (GIPB 2012) Establishment of well-maintained website and Text Value 0 30% 50% accessible electronic dissemination covering 31-Jul % of judgements (Supreme Court and Court of Appeal) 2009 Project Restructuring Estimated by Bank Staff. Electronic dissemination of some judgments are posted on the supreme court website Establishment of Trade Information Website Text Value No TIW No TIW All key trade-related (TIW) compliant with WTO obligations (Ministry regulations available in a of Commerce) website connected TIW 2009 Project Restructuring Ministry of Commerce Share of Customs declaration processed Percentage Value through ASYCUDA system 01-Jun Project Restructuring Customs declaration or above processed through ASYCUDA for July GDCE Customs automation system availability Percentage Value Project Restructuring Customs declaraton or above processed through ASYCUDA for July GDCE Share of certificates of origin processed Percentage Value electronically 2009 Project Restructuring Ministry of Commerce or above Share of non-donor revenues of Better Percentage Value Factories Cambodia 31-Aug-2012 Page 4 of 6
5 Establishment of Trade Information Website compliant with WTO obligations Data on Financial Performance (as of 25-Jul-2012) 2009 Project Restructuring Non-donor funding for BFC operations reached 55% in 2011 and 75% in 2012 (Committed Budget). Text Value No TIW No TIW All key trade-related regulations available in a website connected to TIW Date 27-Oct Dec Jun-2012 Ministry of Commerce Ministry of Commerce Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P IDA-H1650 Closed 02-Jun Jun Dec Dec-2009 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IDA-H1650 Closed XDR Disbursement Graph Page 5 of 6
6 Key Decisions Regarding Implementation This project was closed on July 31, 2012, and the ICR assessment mission was carried out from late May through June 2012 and the team is working to finalize the ICR report. The Client's Draft Implementation Completion Report (ICR) was delivered to the Bank in July 25, 2012 with final version delivered in August 24, The Bank's ICR due date is January 31, Restructuring History RVP Approved on 02-May-2008, CD Approved on 26-Aug-2008, Level one Approved on 03-Dec-2009 Related Projects There are no related projects. Page 6 of 6
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