Cam 50264 002 LD 04

Agricultural Value Chain Competitiveness and Safety Enhancement Project
Strategic Procurement Planning
Project Number: 50264-002

October 2020
Cambodia: Agricultural Value Chain

Competitiveness and Safety Enhancement Project
This consultant’s report does not necessarily reflect the views of ADB, or the Government concerned, and
ADB and the Government cannot be held liable for its contents. All the views expressed herein may not
be incorporated into the proposed project’s design.
CONTENTS
SECTION 1: PROJECT CONCEPT ........................................................................................... 1

SECTION 2: OPERATING ENVIRONMENT .............................................................................. 4
A. Capacity and Capability Assessment of the Executing Agency........................................ 4
B. Support Requirements..................................................................................................... 5
C. Key Procurement Conclusions ........................................................................................ 6
D. External Influences Analysis ............................................................................................ 7
E. Key Procurement Conclusions ........................................................................................ 7
F. Stakeholder Analysis and Communication Plan............................................................... 8
G. Stakeholder Communication Plan.................................................................................... 8
H. Key Procurement Conclusions .......................................................................................12
SECTION 3: MARKET ANALYSIS ............................................................................................12
A. Porter’s Five Forces .......................................................................................................12
B. Key Procurement Conclusions .......................................................................................13
C. Supply Positioning ..........................................................................................................14
D. Key Procurement Conclusions .......................................................................................15
E. Supplier Preferencing .....................................................................................................16
F. Key Procurement Conclusions .......................................................................................17
SECTION 4: RISK MANAGEMENT ..........................................................................................17
A. Project Procurement Risk Assessment Risk Register .....................................................17
SECTION 5: OPTIONS ANALYSIS ...........................................................................................19
A. Scope of the Project .......................................................................................................19
B. Advance Action ..............................................................................................................19
C. Packaging Options .........................................................................................................20
SECTION 6: PROCUREMENT STRATEGY SUMMARY ..........................................................24
A. Procurement Method ......................................................................................................24
B. Prequalification ...............................................................................................................24
C. Bidding Procedures ........................................................................................................25
D. Specifications .................................................................................................................25
E. Review Requirements ....................................................................................................25
F. Standstill Period .............................................................................................................25
G. Standard Bidding Documents and Contract Forms .........................................................25
H. Pricing and Costing Method............................................................................................25
I. Key Performance Indicators ...........................................................................................25
J. Evaluation Method ..........................................................................................................25
K. Value for Money .............................................................................................................26
L. Contract Management Approach ....................................................................................26
ABBREVIATIONS
ADB - Asian Development Bank

AVCC - Agricultural Value Chain Consultants
CSC - Construction Supervision Consultants
FSC - Financing Specialist Consultants
ICT - Information and Communication Technology
MEF - Ministry of Economy and Finance
MAFF - Ministry of Agriculture, Forestry and Fisheries
MRD - Ministry of Rural Development
NGO - Nongovernmental Organization
OCB - Open Competitive Bidding
PIC - Project Implementation Consultants
SBD - Standard Bidding Document
SDG - Sustainable Development Goal
SPS - Sanitary and Phytosanitary
SME - Small and Medium Enterprises
TRTA - Transaction Technical Assistance
QBS - Quality Based Selection
QCBS - Quality and Cost based Selection
VFM - Value for Money
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SECTION 1: PROJECT CONCEPT
Project Title Agricultural Value Chain Competitiveness and Safety

Enhancement Project
Country Cambodia
Sector Agriculture
Sub-Sector Agricultural Policy, Institutional and Capacity Development-
Agro-Industry Marketing and Trade-Rural Market
Infrastructure, Road Transport(non-urban)
Executing Agency Ministry of Agriculture, Forestry and Fisheries (MAFF). The
core tasks of MAFF are, among others, to develop and
implement the agriculture development policy, participate in
land reforms and land use policy, support improving the
standard of living of the people, define regulations for
agriculture protection of natural resources, establish policies,
technical support to farmers, land development, soil quality
improvement, promote investments in exports of agricultural
and food products and monitor food safety. MAFF will also
participate as a key implementing agency, along with the
Ministry of Economy and Finance (MEF) and the Ministry of
Rural Development (MRD).
MEF is one of the key ministries with the mission of guiding and
managing the economic and financial sectors, economic
development, improving people’s living conditions based on
economic principles, markets and social equity. In addition,
MEF is responsible for design and implementation of policies,
regulatory frameworks and regulations related to
macroeconomic management, public finance and investments.
MRD’s mandate is to coordinate, cooperate, implement,
monitor, and evaluate rural development projects to rehabilitate
and help develop the country’s rural areas by assisting the rural
population.
Implementing Agencies Output-1-Investments for safe and sustainable agricultural
value chain promoted with the provision of credit lines, equity
trust fund and credit guarantee fund-MEF,
Output-2- Facilitation of competitive, safe and inclusive
agricultural value chains-MAFF, and
Output-3-Improvements of the agricultural value chain
connectivity-MRD
Sustainable Development Goals SD8: Decent Work and Economic Growth
Project Development Objectives Value addition in agriculture sector
Project Description The project objective is to increase value addition of selected
competitive agricultural products, including cassava, mangos,
cashew nuts, vegetables and poultry, in the provinces of Oddar
Meanchey, Preah Vihear, Siem Reap, Kampong Thom,
Kampong Cham and Tboung Khmum. The Project will increase
value added by facilitating investment and linkages among the
key actors of these value chains, namely agribusiness
enterprises and farmer organizations, through the provision of
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finance (Output 1), capacity building and public services

(Output 2), and farms-to-market roads (Output 3).
Description of Indicative Contract Six rural roads have been proposed for improvement based on
Packages available funds totaling 110.55 kilometers. These six roads are
taken up in three packages each including two lots under
advance contracting. Small Infrastructures for Agricultural
Cooperatives (AC) will be procured in two packages divided by
the type of work. These works will be located on ACs’ land and
include e.g. meeting rooms/offices, warehouses, drying yards,
greenhouses, sheds with washing/grading areas and on-farm
water supply systems with tube wells and pumps. In addition,
there are 17 goods packages including procurement of
laboratory equipment and furniture, materials for demonstration
farms, office equipment and vehicles. Three firm consulting
service packages and five individual consulting service
packages have been identified, with selection subject to
advance contracting.
The values (in $ million) of the indicative packages are:
1. Works
- Road Improvement Package 1, MRD-CW01-AFD, 4.96
(advance action)
(advance action)
(advance action)
- Small infrastructure 1, MAFF-CW01-ADB, 3.22
- Small infrastructure 2, MAFF-CW02-AIF, 2.77
==============================================
Works, total 22.76
2. Goods
- Laboratory equipment MAFF-GD01-ADB, MAFF-GD02-AFD
TO MAFF-GD-06-AFD, MAFF-NCS01-AFD, MAFF-NCS02-
AFD, MAFF-GD09-ADB, 5.88
- Office Equipment MAFF-GD07-ADB, MRD-GD01-ADB, MEF-
GD01-ADB, 0.12
- Vehicles MAFF-GD08-ADB, MAFF-GD09-ADB, MRD-GD02-
ADB, MRD-GD03-ADB, MEF-GD02-ADB, 0.70 (advance
action)
- Agricultural equipment, materials MAFF-GD10-JFPR, 2.54
=========================================================
Goods, total 9.24
3. Services
- Project Implementation Consultant MAFF-CS01-ADB, 2.44
(advance action)
- Agricultural Value Chain Consultants MAFF-CS02-ADB, 3.95
- Construction Supervision Consultant MRD-CS01-AFD, 1.16
(advance action)
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- Individual Consultant MEF-CS01-ADB to MEF-CS05-ADB,

1.08 (advance action)
==============================================
Services, total 8.63
Grand total for all indicative procurement packages is $40.63

million.
Summary of Financing Agreement This project is estimated to cost $110.06 million of which $70.00
million will be funded from ADB’s ordinary capital resources
(concessional loan), $5.00 million from ADB ASEAN
Infrastructure Fund (loan), $3.00 million from the Japan Fund
for Poverty Reduction (JFPR) (grant) and $25 million from
Agence Francaise de Developpment (loan). Government’s
contribution will be $7.06 million.
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SECTION 2: OPERATING ENVIRONMENT
1. After two decades of sustained and rapid growth, the agricultural sector in Cambodia has
recently been slowing partly due to climatic events and partly due to several features that, if not
addressed properly, will compromise its future growth. These features include weak linkages
among actors in the value chain, limited range of value chain financing products. Most finance to
farmers is done through microfinance institutions that have a limited range of products, often
limited to short terms seasonal loans for production. Over the past decade a number of programs
and projects in Cambodia have aimed at building capacity of institutions to provide quality and
safety assurance.
2. The policy and regulatory system to establish standards in production and postproduction
have considerably improved, but by and large both Cambodian consumers and Cambodian
exporters face difficulty in having access to safe food that is compliant with sanitary and
phytosanitary (SPS) requirements or national, regional, and international standards, weaknesses
in transport and logistics infrastructure. Agricultural diversification is still at a very modest level in
Cambodia, despite of the presence of number of products for which there is a comparative
advantage; little investment in agribusiness and few competitive SMEs and cooperatives. No
agricultural wholesale markets, weak adaptation and mitigation capacity to climate change.
3. Asian Development Bank has been active in supporting Cambodia since 1993, with
projects focused of agriculture development, capacity development, flood management, policy
support, rural infrastructure improvement, food security, biodiversity management, environmental
management, aggregating a total of more than 80 projects, totaling $886 million. Many of these
projects include sub-regional interventions.
4. The country is one of the most disaster‐prone countries in Southeast Asia, as it is affected
by floods and droughts on a seasonal basis. Already, climate change is exacerbating these events
coupled with rising temperatures and unpredictable precipitation levels. For future agriculture
growth, access to reliable, timely, and relevant information will be key for building sustainable
food systems in the country. This is linked to expanding farmer’s knowledge on new varieties,
agriculture practices and adaptation measure to climate change, and low level of on-farm
mechanization and use of Information and Communication Technologies (ICT).
A. Capacity and Capability Assessment of the Executing Agency
1. MAFF (Executing Agency)
Strengths Weaknesses
• Law on Public Procurement is in place. • E-procurement is not in place.

• Law on Anti-corruption is in place. • Procurement audits are not conducted.
• Law on Arbitration is in place.
• Procurement data management is weak.
• Professional team experienced in agriculture
sector projects. • Not enough full-time procurement experts.
• Robust oversight by MEF and governance People in charge of procurement have their
requirements and a clear chain of other main jobs.
accountability. • Lack of experts causes a slow procurement
• Access to many competent consultants and process.
contractors.
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• Borrower agency is a dominant buyer in the

agriculture sector.
Opportunities Threats
• High economic growth rate. • Procurement delays reduce the interest of
• The project has the support of the relevant bidders.
levels of government. • Potential delays in release of counterpart
• The project has the support of ADB. funds.
• Key stakeholders acknowledge the strategic • International markets may not be interested.
need for the project. • Specific periods of the year would have issues
• Local labor is available. with the works delivery due to the monsoon
season.
• Delays due to land acquisition issues.
• COVID-19 related restrictions might reduce
the interest of international firms.
2. MRD (Implementing Agency)
Strengths Weaknesses
• Law on Public Procurement is in place. • E-procurement is not in place.

• Law on Anti-corruption is in place. • Procurement audits are not conducted.
• Law on Arbitration is in place.
• Procurement data management is weak.
• Professional team experienced in rural road
sector projects. • Not enough full-time procurement experts.
• Robust oversight by MEF and governance People in charge of procurement have their
requirements and a clear chain of other main jobs.
accountability. • Lack of experts causes a slow procurement
• Access to many competent consultants and process.
contractors.
• Borrower agency is a dominant buyer in the
rural roads sector.
Opportunities Threats
• High economic growth rate. • Procurement delays reduce the interest of
• The project has the support of the relevant bidders.
levels of government. • Potential delays in release of counterpart
• The project has the support of ADB. funds.
• Key stakeholders acknowledge the strategic • International markets may not be interested.
need for the project. • Specific periods of the year would have issues
• Local labor is available. with the works delivery due to the monsoon
season.
• Delays due to land acquisition issues.
• COVID-19 related restrictions might reduce
the interest of international firms.
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B. Support Requirements
Procurement Capability and Capacity Procurement capacity within MEF is established, in MAFF
and MRD more capacity is needed. Dedicated teams will be
formed to deliver the project with expertise in procurement
and a separate team for project monitoring. However, to avoid
potential procurement risks, ADB’s prior review of all
contracts shall be applicable except post review for small and
non-critical national shopping Goods packages. Prior review
is also the preferred procedure for MEF for all critical
packages.
Experience in implementing Similar There is some depth of experience across MEF, MAFF and
Projects MRD in delivering similar projects under ADB and WB
financing. MRD has the required experience in rural road
construction.
Contract Management Capability and Project teams have been formed to oversee the
Experience implementation of the project including contract management
and implementation. The teams have some previous
experience in delivering similar procurement with consultant
support.
Level of Reliance on External Consultants will be required to support MAFF and MRD for
Consultants most of the tasks. MRD will require support from the
Construction Supervision Consultant (CSC) to support,
design, procurement, implementation monitoring, contract
management and testing.
Existence and Description of Any complaints received will be handled as per the provisions
Complaints Management System in the country’s Procurement Manual, specifically Sub-Clause
3.5 (ref. Standard procedures for procurement for all
externally financed projects/programs in Cambodia, July
2019)
C. Key Procurement Conclusions
Legal issues are well addressed. The Procurement Manual and its Standard Operating
Procedures clearly spell out the requirements for national or foreign funded procurement.
Complaints management procedures are in place. Almost all projects required procurement
consultant support. In this case also, consultants will be required to support MEF and MAFF for
most of the tasks. MRD will require support from the CSC for, design, procurement,
implementation monitoring, contract management, claim management and testing. MEF is the
regulatory agency for public procurement. In accordance with ADB’s Procurement Policy,
transparency for ADB-funded projects must be improved through public accessibility to relevant
procurement information and a formal complaints system should be introduced. MEF
participates as bid Evaluation Committee and Procurement Review Committee for all foreign-
funded procurement.
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D. External Influences Analysis
Governance • There is a stable National Government.

• There is a strong and established oversight and governance structure that
oversees procurement.
• Some corruption may exist. In accordance with the WB’s CPIA (Country
Policy And Institutional Assessment) transparency, accountability and
corruption rating in the public sector (rating: 1=low to 6=high) in Cambodia
in 2018 was 1.5 and in 2017 it was 2.0.
• The project is delivered in an area which has no social or other conflict.
Economic The economic environment presents a predictably stable environment for the
life of the project.
Economic Growth – Economic growth is high at 7.48% in 2018 and 7.05%
in 2019.
Inflation –The inflation rate in 2017 was 2.89% and in 2018 it was 2.46%.
Unemployment –Unemployment rate was at 0.65% in 2018 and 0.68% in
2019.
Exchange Rate – The Cambodian Riel is relatively stable/predictable. The
current exchange rate is 1$~ 4065.95 Riels.
Labor Supply– In the whole country unskilled labor is available at relatively
low cost. Skilled labor is available but at a higher cost.
Sustainability Climatic Change and Impact – Climate Change will have significant
impact on this project. Road designs will ensure minimize effects of climate
change
Local Environmental Standards – Strict standards and monitoring
systems aligned with ADB’s SPS 2009 are in place which require
adherence.
Environmental Impact and Remedies –Potential impacts are mostly
temporary, predictable, and reversible on air, water, soil and noise during
construction period, and can be mitigated through adherence to national
regulations and ADB’s SPS 2009, design criteria, and implementation of
Environmental Management Plan.
Technology Technological advances are slow. Internet access is strong.
Telecommunication facility is available and growing. Electronic procurement
is not in place, but efforts are being initiated to adopt the same soon. Most
of the equipment and basic construction material like steel and cement will
be imported.
E. Key Procurement Conclusions
The external influences that could affect delivery of the project are low. There is a stable National
Government environment for this project to operate within and there is a strong and established oversight
and governance structure that oversees the Ministries. There is a risk of corruption like in many countries
but this is moderate in public sector due to the existing comprehensive oversight. The project is delivered
in an area which is an expanding rural environment that has had no social or other types of conflict and the
economic environment presents a predictably stable environment for the life of the project. Enhanced risk
mitigation measures covering inflation, exchange rate risk and volatile commodity pricing risks are not
needed due to the low level of risk and relatively short contract periods.
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The environment impact assessment of the project has shown that no major impacts are expected except
some minor ones during construction. These will be mitigated by adopting the Environmental
Management Plan. The technology to be utilized for the project is quite standard for this project, therefore
the technology risk is low. Major Works and Goods packages will be procured in accordance with ADB’s
procedures. Other Works and Goods packages will be implemented following national procedures
approved by ADB. All consultants will be selected following ADB procedures.
F. Stakeholder Analysis and Communication Plan
4. To enable successful project planning and implementation, it is necessary to identify the

stakeholders, both internal and external, who will be involved in the project or affected by the
project. Problems may arise when stakeholders are not considered at the outset and become
involved too late. This can occur after the contract is in place, which can lead to project delivery
issues. Some external stakeholders may include other government agencies, bidders, and trade
associations, agriculture cooperatives, civil society associations and local communities. Without
the necessary early engagement, they may seek to influence the project strategy by influencing
the internal stakeholders. Stakeholder analysis is based on identifying and mapping the key
stakeholders, establishing their interest in the project and producing a communication strategy to
involve them. The stakeholder analysis indicates how engagement with all groups of stakeholders
will be carried out and an effective communication plan is to be developed and implemented.
G. Stakeholder Communication Plan
High
Keep Satisfied Key Stakeholders

• Ministry of Environment • Royal Government of
• Land owners Cambodia
• Communes • Senior Officials of MEF,
Power and Influence over the Project
• Village Development MAFF and MRD

Committees • ADB and AFD
Minimal Effort Keep Informed

• NGOs • Population of the Project
• Cooperatives Areas
• Farmers • Suppliers Market/ Bulk
• Logistic Companies consumers
• Agro-enterprises • Consultancy Firms
• Development Partners
• Relevant SMEs
• Financial Institutions
Low High
Interest in the Project
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1. Key Stakeholder Group
Stakeholder Name and Role Key Stakeholder Group (Royal Government of Cambodia, Senior
Officials of MEF/MAFF/MRD and ADB/AFD)
Interest in the Project High Interest
Support and Influence Level High Power and Influence
High Level of Support
Objections, Drivers, Needs, and The objectives of the key stakeholder group are linked to
Levers knowledge on:
• Successful Project Delivery;
• Fulfillment of the Project Requirements;
• Timeframes;
• Quality and Cost; and
• Compliance.
The drivers for this group are quite varied, and include:
• Project Development Objectives; and
• Benefit Realization.
Action Generally, the stakeholders in this group have a positive approach
and outlook to the project.
Actions required will be to support the project.
Responsible, Accountable, The stakeholders in this group are either Responsible, Accountable
Consulted or Informed or Consulted depending on their drivers and involvement in the
preparation, formulation and implementation of the project.
Communicate What, When and Most communication with the key stakeholders will be led by face-
How? to-face communications for this stakeholder group, however such
communication will also be supported by:
1. Regular Reporting;
2. Online Content and Communications;
3. Presentations;
4. Meetings; and
5. Paper documentation (as required).
MEF/MAFF/MRD will be responsible for communicating to this
stakeholder group.
Communication will be scheduled and regular (no less than monthly
as required or agreed), as well as ad-hoc, as required.
2. Keep Satisfied Stakeholder Group
Stakeholder Name and Role Keep Satisfied Stakeholder Group (Ministry of Environment, Land
owners, Communes, Village Development Committees)
Interest in the Project Low Interest
Support and Influence Level High level of Power and Influence
Objections, Drivers, Needs and The objectives of the key stakeholder group are linked to knowledge
Levers on:
• General Updates;
• Scheduling, and specific impacts.
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Administrative approvals and co-ordination of efforts to minimize
disruption are an important part of the requirements of this group.
Therefore, the important actions include:
• Timely consultation/information on any disruptions; and
• Advance information on co-ordination requirements.
Responsible, Accountable, The stakeholders in this group are to be informed and consulted.
Consulted or Informed
Communicate What, When and Most communication will be electronic communication via email,
How? website and online data or face to face.
MRD and the selected contractor(s) will have shared responsibility
for communicating to this stakeholder group.
Communication will tend to be on an “as needs” basis, rather than
scheduled and will be supported by notifications.
3. Minimal Effort Stakeholder Group
Stakeholder Name and Role Minimal Effort Stakeholder Group (NGOs, Cooperatives, Farmers,
Logistic Companies, Agro-enterprises)
Interest in the Project Low Interest

Support and Influence Level Low Power and Influence
Objections, Drivers, Needs and The objectives of the key stakeholder group are linked to
• Project timings and schedule (especially in relation to
implementation periods);
• Development of works and impacts; and
• Good news stories.
• Area Development;
• Possible Revenue;
• Public Support; and
• Business Development.
The needs of the group are linked to:
• Timely information (especially for approval items which could
delay the progress of the project)
• Compliance to regulations.
Responsible, Accountable, The stakeholders in this group are to be informed.
Consulted or Informed
Communicate What, When and Communication in this area will be a mixture of:
How? 1. Media-Based;
2. Online; and
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3. Marketing and Information dissemination materials

(brochures, newsletters, flyers)
MAFF will have responsibility for communicating to this stakeholder
group.
Communication will be scheduled and regular to ensure that the
stakeholders are appropriately informed.
4. Keep Informed Stakeholder Group
Stakeholder Name and Role Keep Informed Stakeholder Group (Population of the Project Areas,
Suppliers Market/ Bulk consumers, Consultancy Firms,
Development Partners, Relevant SMEs, Financial Institutions)
Interest in the Project High Interest

Support and Influence Level High to Medium Level of Power and Influence
Objections, Drivers, Needs, and The objectives of the key stakeholder group are linked to
• Project timings and schedule (especially in relation to
implementation periods);
• Development of works and impacts; and
• Good news stories.
• Area Development;
• Possible Revenue;
• Public Support; and
• Business Development.
The needs of the group are linked to:
• Timely information (especially for approval items which could
delay the progress of the project)
• Compliance to regulations
Responsible, Accountable, The stakeholders in this group are to be informed.
Consulted, or Informed
Communicate What, When, and Communication in this area will be a mixture of:
How? • Media-based;
• Online; and
• Marketing and information dissemination materials
(brochures, newsletters, flyers)
MEF/MRD/MAFF will have responsibility for communicating to this
stakeholder group.
Communication will be scheduled and regular to ensure that the
stakeholders are appropriately informed.
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H. Key Procurement Conclusions
There are many stakeholders that have an interest in the project including the National Government, MEF,
MAFF, MRD, local governments, consultants, SMEs, potential contractors and suppliers, financing
institutions, agro-industries, agricultural cooperatives, farmers, communes, village development
committees and the consultation groups, especially the beneficiary population. The stakeholders have
been split into four different groups and the objectives of the key stakeholder groups are linked to
knowledge on successful project delivery, fulfillment of the project requirements and quality, cost and
compliance.
Communication with the stakeholder groups will be maintained as appropriate.
Each Ministry, as appropriate, is responsible for communicating to the relevant stakeholder groups and
should produce a communication schedule that includes regular (no less than monthly as required or
agreed), as well as ad-hoc, as required communications.
SECTION 3: MARKET ANALYSIS
6. The purpose of the market analysis is to allow the executing agency to develop an
appropriate understanding of the relevant market sectors, their structures, and how they operate.
Based on this understanding, the procurement plan will be tailored to ensure the bidders find the
contract packages attractive and are motivated. Market analysis will often require more than just
office research and the executing agency may need to undertake early supplier engagement to
gain the necessary data and intelligence.
A. Porter’s Five Forces
1. Goods
Competitive Rivalry High Based on information received from MRD on earlier ADB
funded road projects (RRIP II) there are more than 10
local contractors in the national and regional markets
capable of implementing road improvement contracts of
this project. Annual turnover of these contractors varies
from $5 million to $10 million meaning that they would be
capable of implementing the roads in this project. In the
past, most MRD contracts were highly competitive and
successful bids for contracts above $3 million were from
foreign contractors mostly from China mainly due to lack
of domestic local contractors who preferred working for
the real estate sector which is growing at a very high
pace. COVID-19 related restrictions might reduce the
interest of international firms. In this case local
contractors would be playing the key role in the
competition of these roads. The consulting contracts are
largely specialized and based on the TRTA consultant’s
information gathered from the market there are around 7-
10 firms available. In case of laboratory equipment, again
MAFF had received a large number of bids and the same
trend is expected for this project because financing is
secured and transparent procurement policy is in place.
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Other goods in this project are small in value and they will
be procured locally where competition is high.
Bargaining Power of Buyers High The civil works packages and three of nine laboratory
equipment packages are of high value. Hence, the buyer
will have higher bargaining power as the buyer is the main
purchaser of such works and goods
Bargaining Power of Suppliers Low As the project scope is not highly technical and does not
require specific skill sets, a large number of possible
competitive contractors/suppliers operating in the region
can carry out the road works and deliver the goods
needed. As such, bargaining power of suppliers is low.
Risk of New Entrants Low Risk of new entrants is unlikely to impact the market
significantly. New entrants are nevertheless welcome to
improve competition.
Risk of Substitutes Low There is a low risk of substitutes because the design
provided by the borrower is a standard technology and it
has been in use for a number of years. Options to provide
alternatives are minimal. There are minimal opportunities
to use high level technology and innovation.
B. Key Procurement Conclusions
There are more than 10 national/regional contractors operating in the market as informed by MRD who has
recently carried out road construction projects funded by ADB. Of these ten contractors it is assumed that
5-6 financially and technically capable contractors would be interested to bid for the road contracts of this
project.
The market is relatively competitive that helps to lower costs. The bargaining power of suppliers is low due
to the large number of possible bidders who can implement the road construction works. Since, such a
project involving upgrading of rural roads is a continuous process, it is expected that this project will be
sufficiently attractive to encourage large participation and will support value for money. The risk of new
entrants is not likely to impact the market significantly especially during the time of restrictions caused by
COVID-19.
The project includes a number of consulting services contracts. The TRTA consultants have identified 7-
10 consultants who are operating in Cambodia and in the region. Large participation is expected especially
in the specialized assignments.
The project includes various goods packages. The procurement of laboratory equipment and their
maintenance has been divided into nine packages, most of which will be procured internationally because
local market doesn’t have capable manufacturers, while others will be procured through request for
quotations (RFQ). Based on the TRTA consultant’s laboratory specialist’s experience in similar laboratory
equipment supply contracts in Cambodia and in other countries it is estimated that the equipment delivery
packages would attract between 5-10 manufacturers thus creating satisfactory competition. Other goods
packages are under national shopping (RFQ) because they are much smaller in value and simple to
procure. Local market has many interested and capable firms to provide these goods.
However, governance issues such as lengthy administrative procedures, and possible corruption is to be
avoided by strict oversight by senior officers of the Ministries, MEF and ADB.
Skilled labor is scarce.

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There could be delays in release of counterpart funds which must be addressed by MEF. Natural hazards
including floods, and droughts and other environmental issues such as soil erosion and delays in land
availability may adversely affect project implementation.
C. Supply Positioning
7. The supply positioning tool is used to consider how to differentiate the procurement
approaches for the proposed contract packages and lots within the project. It positions contracts
into four groups based on their level of spending and risk. At this stage, it is worth validating the
early risk assessment based on the analysis of the market and the operating environment.
Categorizing goods, works, and services according to the nature of the supply situations provides
a basis for developing appropriate strategies for managing these procurement arrangements. This
analysis also provides areas to be considered within the project risk register. High-risk projects
will have direct operational support during project processing from ADB procurement staff in the
preparation of the procurement plan and bidding documents.
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High
Strategic Security
• Highly specialized Strategic Critical

consultants (AVCC)
• Road improvement under
advance action
• CSC under advance action
• PIC under advance action
Tactical Acquisition
Tactical Advantage
Risk
• Vehicles • Small simple infrastructure

• Office equipment works
• Agricultural equipment and • Laboratory equipment
materials
Low High
Spending
D. Key Procurement Conclusions
The most expensive and high-risk components are listed under “Strategic Critical” box and other expensive
components under “Tactical Advantage” box in the above diagram. Totally they represent about 66% of
project spending. All consultancy packages (except CDC and PIC) are categorized as high-risk “Strategic
Security” packages because of their highly specialized nature and importance in successfully achieving
the project targets. All advance contracting packages (including CDC and PIC) are categorized as
“Strategic Critical” because the success of the project requires an early procurement of these packages.
Laboratory Equipment are included in here too due to their special nature. All other packages (procurement
of goods and simple infrastructure works) are categorized as low-risk packages. Below is a more detailed
explanation of the procurement packages.
The project includes five works packages (including improvement of six rural roads and small infrastructure
works), selection of eight consulting service packages and 16 packages for goods (office equipment,
laboratory equipment and their maintenance, vehicles and materials for demonstration farms, awareness
and capacity building). Detailed engineering designs of all six rural roads have been prepared during the
TRTA and contracts will be awarded by adopting advance procurement action so that construction work
can be started immediately after the monsoon season. The six rural roads are proposed to be divided into
16
three packages each including two lots (contract) with values Package 1 ($1.86 +$3.10 = $4.96), Package
2 ($4.56 + $2.45 = $7.01) and Package 3 ($1.80 + $3.00 = $4.80) million.
It is proposed that ADB’s open competitive bidding with international advertisement following the Single-
Stage: One-Envelope Bidding Procedure is suitable considering the simple nature of technology and
availability of many contractors within the country. It may be noted that the Cambodian Procurement
Manual (July 2019) is issued in compliance with Cambodian Law on Public Procurement and it requires
international bidding for works contracts above $3 million. International bidding doesn’t rule out national
contractors. Such a packaging philosophy will encourage both national and international firms to participate
in the bidding.
Small infrastructure works with total value of $5.99 million is proposed to be divided into two packages to
lower the cost for each package: $ 3.22 million and $ 2.77 million. This would encourage more national
firms to participate in the bidding thus increasing the competition. These works will be located in the six
target provinces on ACs’ land without resettlement. During the first year the project provides awareness
raising to ACs who will then request infrastructure works from PMU. PMU’s AVCC consultant will analyze
these requests and design these works and finalize the Bidding Documents. The works will be commenced
from the second year onward.
The project includes procurement of laboratory equipment in nine separate contracts for three MAFF’s
laboratories located in Phnom Penh. The estimated total cost of the equipment for establishing these three
laboratories is $5.88 million. For increasing competition and creating simpler bidding these laboratory
equipment are divided into nine contracts. It is recommended that only the three biggest laboratory
equipment packages valued $1.75 million, $1.48 million and $1.65 million should be procured following
OCB with international advertisement using ADB’s SBD for Goods, following Single-Stage: One–Envelope
bidding procedure. One of these three packages will be procured later in the 4th year of the project. Other
laboratory equipment packages will be under RFQ (values from $0.08 to $0.32 million).
The required office equipment, other goods and vehicles are available locally through dealers and agents
and may be procured by adopting national procedures.
All the three consulting contracts for international firms, cost of which range from $1.16 to $2.44 million,
selection should be done by adopting QCBS procedure with a recommended ratio of 80:20. The five
individual contracts (MEF), cost of which range from $0.04 to $0.38 million, selection should be done by
adopting ICS.
Selection of all the consultants should be expedited under advance procurement action so that the selected
firm can mobilize immediately after loan effectiveness.
E. Supplier Preferencing
8. The supplier preferencing analysis as detailed below has been applied to provide an
indication of how suppliers may view ADB funded projects in terms of attractiveness of doing
business and the behaviors suppliers may exhibit in bidding and delivering contracts. Larger value
contracts will encourage bidders to participate in large numbers. Local capability is inadequate.
The suppliers prefer timely award of contracts, avoid inspection delays and timely payment, in
addition to clear instructions on delivery locations, if the stores are in different places.
17
High
Develop Core
• Road improvement • Laboratory equipment
• Small Infrastructure works
• Consultancy services
Attractiveness
Harvest
Nuisance
• Vehicles
• Office equipment
• Agricultural equipment and
materials
Low High
Percentage of Revenue
F. Key Procurement Conclusions
The supplier preferencing indicates that ADB funded projects and projects run by MAFF and MRD are
generally attractive to the market, especially the local and regional market. Relatively large size contracts
within $10 million are preferred as per the Cambodian Constructors Association. Contractors, especially
national ones, are likely to view ADB and MRD projects as a development opportunity to help them grow
their business and get experience of delivering an ADB financed project. A review of previous contracts
implemented by MRD showed significant participation for most road packages in the range of at least 4-10
bids per package.
SECTION 4: RISK MANAGEMENT
A. Project Procurement Risk Assessment Risk Register
No. Risk Description Likelihood Impact Risk Score Proposed Mitigation Risk Owner
(1-5) (1-5) (L x I)
(L) (I)
1 Potential for not 1 4 4 All major procurement MAFF/MRD
complying with ADB (Low) to be subject to ADB’s (for Road
procurement prior review. contracts)
policies and
regulations means
risk of project delay.
2 Inadequate 3 4 12 Provide additional ADB/EA
procurement (Medium) capacity building
capacity. training to the EA on
18
No. Risk Description Likelihood Impact Risk Score Proposed Mitigation Risk Owner
(1-5) (1-5) (L x I)
(L) (I)
ADB procurement
requirements.
3 Inadequate 3 2 6 Attract prospective MAFF/MRD
response by (Low) bidders by posting the Project Team
qualified bidders. Procurement Plan on
MEF, MAFF/MRD and
ADB websites,
improved
communication.
4 Foreign Bidders 3 3 9 MAFF/MEF/MRD to MAFF/MEF/M
less interested due (Medium) discuss with RD
to COVID-19 Cambodian
restrictions. government about
establishing clear
COVID-19 related
regulations for
allowing interested
foreign firms to do
business in
Cambodia.
4 The procurement 3 5 15 Initiate advance action MAFF/MRD
process is delayed. (High) and ensure open and Project Team
transparent process.
5 Delay in release of 1 2 2 Prepare appropriate MEF
counterpart funds. (Low) budget and release
funds in a timely
manner.
6 Delays in project 3 5 15 Road alignment MRD
implementation due (High) should be along
to land availability existing roads to avoid
and capacity issues land acquisition.
7 Inefficient contract 2 3 6 CSC support will be MRD
management (Low) provided.
8 Inadequate 1 5 5 Road design TRTA

operation and (Low) technology will ensure Consultants
maintenance minimum
maintenance by
adopting low
maintenance road
design.
19
SECTION 5: OPTIONS ANALYSIS
This option analysis has been prepared during pandemic caused by COVID-19. Currently there
are a number of worldwide and local restrictions which have a negative impact on procurement
activities. It has been acknowledged that international contractors might have difficulties in
accessing the market and import plant, materials and personnel to Cambodia. This might reduce
the interest towards the project and therefore reduce the competition. However, it has been
assumed that before the project starts the restrictions will be eased or lifted allowing international
and local contractors to carry out the works and services in accordance with the procurement
plan. If the restrictions continue hindering clearly the normal procurement process the EA together
with ADB should consider revising SPP and PP to reflect the prevailing situation.
A. Scope of the Project
9. The procurement activities under the proposed project are identified as follows:
(i) Rehabilitation of six Rural Roads: These roads are:
1) TrapaingThmar-Dang Anteak, 12.40 km

2) Sangkhum Thmey-Taseng, 24.19 km
3) Banteay Thmey-Atao, 27.70 km
4) Kok Klaing-Phumi Kul, 16.20 km
5) Dambae Sreveng, 12.50 km
6) Ou Mlou, 17.55 km
(ii) Small Infrastructure Works for Agricultural Cooperatives (AC):

As earlier mentioned, these works will be commenced from the second project
year onward. During the first project year awareness raising is provided to ACs
who will then submit request to PMU and its AVCC consultant for obtaining
infrastructure works.
(iii) Goods:
• Laboratory Equipment in 9 contracts

• Office Equipment in 3 contracts
• Vehicles in 5 contracts
(iii) Consulting Services:
• Project Implementation Consultants (PIC)

• Agricultural Value Chain Consultants (AVCC)
• Construction Supervision Consultants (CSC)
• Individual Consultants for Finance Services in 5 contracts
B. Advance Action
10. ADB supports and encourages the Borrowers to ensure early project readiness, especially
in the project design and procurement. Such advance preparation before loan effectivity ensures
efficient project implementation. However, such readiness activities require funding. Normally,
EAs should typically provide advance budget allocation to meet the needs of these actions. ADB
20
has a number on initiatives to support project readiness, such as the services or the Transaction
Technical Assistance (TRTA) consultants who can prepare initial designs and drawings, and
bidding documents and also support the procurement process. Other sources of funds are also
available such as co-financed trust funds which can be availed of by the Borrower. Advance
procurement action is now a default provision and ADB’s formal approval is not required, if
implemented within the required framework. Advance procurement action significantly improves
project implementation. Normally, road works are implemented during the dry season. As such, it
is essential to process the procurement of civil works early so that the contractors can be
mobilized immediately after the monsoon season. It is noted that MAFF, TRTA consultants and
ADB project team have decided to take advance action for all the six roads for which detailed
engineering design has been prepared by the TRTA consultants. This decision is appreciated.
The construction supervision of these six roads will be taken up by the CSC consultants during
the project implementation phase.
11. Normally, the PIC/CSC selection process is initiated after loan effectiveness, but this
approach is likely to delay the project substantially. Such selection normally takes 6-8 months and
after mobilization, the consultants will prepare the bidding documents including tender drawings
which may take three months. Thereafter, procurement will start and conclude after another 6-8
months. Accordingly, if this approach is adopted, the contractors can be fielded after 15-20
months or maybe more. Hence, this approach is not recommended. The TRTA proposal to initiate
advance action for the selection of the PIC and CSC is supported.
12. Based on the above analysis, advance procurement action is proposed for the above
mentioned six rural roads sections (in three packages), the PIC and CSC assignments, and the
contract for vehicles (G7-G8).
C. Packaging Options
Strategic Options Description Feasibility Suitability Acceptability Overall Comments

(1–10) (1–10) (1–10) (3–30)
PIC and CSC selection to be 10 1 1 12 - PIC and CSC contracts
processed after loan effectiveness would not be awarded
before Road
Improvements (advance
action) contracts start
- more risks to EA
PIC and CSC selection initiated 10 10 8 28 + PIC and CSC
immediately after Fact-finding in contracts would be
Q4/2020 awarded before Road
Improvements (advance
action) contracts start
+ less risks to EA
Civil Works for roads after loan 7 2 2 11 - EA’s request for
approval procuring critical roads
under advance action
would not be possible
Civil Works for roads initiated 10 10 10 30 + EA’s request for
immediately after Fact-finding in procuring critical roads
Q4/2020 (Advance action) under advance action
would be possible
+ works can be started
right after monsoon
season
+ less risks to EA
21

(1–10) (1–10) (1–10) (3–30)
Roads in six separate packages 10 5 3 18 - large number of bids
will increase the work
load of procurement
team
- contract management
of six separate contracts
will be complicated
- foreign bidders would
be less interested due to
small value of packages
leading to less
competition
Roads in three packages each 10 9 8 27 + less time and
including two lots resources needed for
procurement team
+ bidders may choose to
bid 1 or 2 lots within the
package which is
suitable for local bidders
+ maximum 6 contracts,
but possibly less which
makes contract
management easier
+ foreign bidders will be
more interested due to
higher value of
packages leading to
more competition
Small infrastructure Works in one 7 2 2 11 - the package size $5.37
large single package million would be too
large for local
contractors to bid
- reduced competition
- foreign bidders might
not be interested
because the work is
simple and scattered in
six provinces
Small infrastructure Works in two 9 9 9 27 + package sizes would
separate packages be more suitable for
local bidders
+ increased competition
Separate packages for Goods as 10 10 10 30 + attractive to bidders
they are different products because simple to bid
+ less risks to EA
Laboratory equipment in one 6 4 2 12 - difficult to bid for the
package suppliers due to different
type of equipment
included in the package
- bidding difficulty will
lead to high prices
- less suppliers
interested due to
complexity
- less competition
+ work load of the
procurement team will
be less
22

(1–10) (1–10) (1–10) (3–30)
Laboratory equipment in nine 9 9 9 27 + easy to bid
separate contracts + lower prices
+ more interested
suppliers creating more
competition
+ each laboratory will
have its own separate
instrument package
allowing better flexibility
in deliveries
- work load of the
procurement team will
increase
Laboratory maintenance packages 1 1 1 3 - impossible to create
under open bidding good competition
because bidders would
have to subcontract the
whole package to the
only maintenance
service co which is
allowed by the
manufacturer to do the
service
- high prices
- unnecessarily
complicated and more
risks
Remaining five separate packages 10 10 8 28 + attractive to bidders
for consulting services as the because simple to bid
specialization is different in each + less risks to EA
case
Civil Works
14. The six roads are proposed to be divided into three separate packages each including
two lots with the following values (in millions): Package 1 ($1.86 +$3.10 = $4.96), Package 2
($4.56 + $2.45 = $7.01) and Package 3 ($1.80 + $3.00 = $4.80). Such a packaging philosophy
will encourage both national and international firms to participate in the bidding as also evidenced
from previous MRD contracts. Open competition bidding (OCB) with international advertisement
shall be adopted. ADB’s SBD for Works shall be used.
The small infrastructure works for Agricultural Cooperatives (AC) are proposed to be divided into
two packages with the values of $ 3.22 million and $ 2.77 million.
The proposed package sizes encourage especially national bidders to participate in the bidding
but doesn’t rule out foreign bidders. OCB with international advertisement shall be adopted for
packages valued more than $3.0 million and national advertisement shall be adopted for
packages valued less than $3.0 million.
Goods
15. The goods to be procured under the project include 17 packages, (i) Laboratory
Equipment and maintenance in eight packages (totally $5.88 million), (ii) Agricultural equipment
23
and materials ($2.54 million), (iii) Office Equipment ($0.12 million), and (vii) Vehicles in five
packages ($0.70 million).
The three biggest laboratory equipment packages will be under OCB with international advertising
using ADB’s SBD for Goods. The other smaller laboratory packages will be under Standard RFQ
(Standard National Shopping Document). The remaining seven goods packages, Standard RFQ
with national advertising will be adopted.
Consulting Services
16. The project includes eight consulting assignments. The selections of the three packages
for international firms will be made following QCBS. The recommended ratio is 80:20. Initially
TRTA consultant recommended the use of QBS for these services. While acknowledging the
technical complexity of these assignments, QBS is not favored as the cost will be high and
financial negotiations will be prolonged and contract signing will get delayed. Further, for the
assignments which are not that complex to warrant full technical proposals (FTP) simplified
technical proposals (STP) are recommended. Consultancy assignment under STP are AVCC
(MAFF-CS02-ADB) and CSC (MRD-CS01-AFD). However, PIC (MAFF-CS01-ADB) is under
FTP. The selections of five packages (MEF-CS01-ADB to MEF-CS05-ADB) for individual
consultants will be made following ICS.
Packaging Summary and Responsibilities
Package No Type Est. Bidding Type Advertisement Advance Bidding Bidding Responsible
Cost Action Procedure Document Agency
($m)
MRD-CW01-AFD Works 4.96 OCB International Yes 1S1E ADB/SBD MRD
MAFF-CW01-ADB Works 3.22 OCB National No 1S1E ADB/SBD MAFF
MAFF-CW02-AIF Works 2.77 OCB National No 1S1E ADB/SBD MAFF
MAFF-GD01-ADB Goods 1.75 OCB International No 1S1E ADB/SBD MAFF
MAFF-GD02-AFD Goods 0.08 RFQ International No 1S1E National MAFF
MAFF-GD05-AFD Goods 1.48 OCB International No 1S1E ADB/SBD MAFF
MAFF-GD07-ADB Goods 0.08 RFQ International No 1S1E National MAFF
MRD-GD01-ADB Goods 0.02 RFQ International No 1S1E National MRD
MEF-GD01-ADB Goods 0.02 RFQ International No 1S1E National MEF
MEF-GD02-ADB Goods 0.10 RFQ International No 1S1E National MEF
MAFF-NCS01-AFD Non- 0.12 RFQ International No 1S1E National MAFF
consulting
services
24
Package No Type Est. Bidding Type Advertisement Advance Bidding Bidding Responsible
Cost Action Procedure Document Agency
($m)
MAFF-NCS02-AFD Non- 0.23 RFQ International No 1S1E National MAFF
consulting
services
MAFF-CS01-ADB Services 2.44 QCBS (80:20) International Yes NA ADB MAFF
MAFF-CS02-ADB Services 3.95 QCBS (80:20) International Yes NA ADB MAFF
MRD-CS01-AFD Services 1.16 QCBS (80:20) International yes NA ADB MRD
MEF-CS01-ADB Services 0.38 ICS International Yes NA ADB MEF
MEF-CS02-ADB Services 0.21 ICS International Yes NA ADB MEF
MEF-CS03-ADB Services 0.28 ICS National Yes NA ADB MEF
MAFF-GD09-ADB Goods 1.65 OCB International No N/A N/A MAFF
MAFF-GD10-JFPR Goods 2.54 OCB N/A No 1S1E N/A MAFF
SECTION 6: PROCUREMENT STRATEGY SUMMARY
17. The indicative procurement plan has been prepared with the following assumptions:
i) Advance procurement action shall be adopted.

ii) The package distribution provided herein has been agreed between the Executing
Agencies and ADB.
iii) The estimated values in the plan are tentative and may be subject to change.
iv) The estimated values mentioned in the plan are confidential and for internal
consumption only as values to be put in the tenders are not yet finalized.
v) The advertisement dates mentioned for the packages are tentative and may be
advanced or postponed as per the requirements of the project.
18. The table in the Appendix lists the contracts (packages) for which the procurement activity
is expected to commence within the procurement plan’s duration and financed by ADB.
A. Procurement Method
19. Open Competitive Bidding with International/National Advertisement, as appropriate, is

the preferred method of MEF, MAFF, MRD and ADB with the ability to provide the best outcome
will be the procurement method used for all packages. Given the market analysis and competitive
rivalry that is identified, this approach is likely to produce the best value for money and deliver the
project development objectives.
B. Prequalification
20. Prequalification is not being undertaken for any of the packages for the project as all
packages are standard in nature and design.
25
C. Bidding Procedures
21. The civil works and goods contracts are rather standard and straight forward, hence it is
recommended that the Single-Stage: One Envelope Bidding Procedure may be adopted. For the
consulting packages for international firms, the QCBS procedure will be adopted using a ratio of
80:20. For the consulting packages for individual consultant, the ICS procedure will be adopted.
D. Specifications
22. Standard MRD specifications will be used for the procurement of the road packages for
the project. Specification for small infrastructure works will be written by PMU’s AVCC consultant
based on the analyzed requests from the ACs. For equipment procurement, international
standards will be applicable and included in the bidding documents.
E. Review Requirements
23. All civil works contract packages and goods packages under OCB shall be subject to prior
review. The first of the remaining Goods packages under RFQ (National Shopping) shall be
subject to prior review. The others shall be subject to post review. All consulting contracts shall
be subject to prior review.
F. Standstill Period
24. The use of a Standstill Period is applicable in Cambodia and will be used to this project
also.
G. Standard Bidding Documents and Contract Forms
25. ADB’s SBD for Works shall be used for the road improvement packages, ADB’s SBD for
Small Works for Small Infrastructure Works packages, ADB’s SBD for Goods for the three biggest
laboratory equipment packages, RFQ document for the remaining small laboratory equipment
packages, RFQ for all other goods packages.
H. Pricing and Costing Method
26. Payments for civil works will be on admeasurements basis while that for goods will be on
unit price basis. All consultancy service contracts shall be time-based contracts. In consulting
packages payments will be made as follows: advance, remuneration, per diem, other out of pocket
expenses and other eligible payments.
I. Key Performance Indicators
27. As part of the contract management strategy, the clients will identify key performance
indicators (KPIs) for each contract to monitor the contractor’s performance during contract
implementation. Identified KPIs should be detailed in the final contract with the contractor to
ensure delivery and enforcement.
J. Evaluation Method
26
28. The evaluation method to be used shall be based on the lowest evaluated substantially
responsive bid as detailed in the procurement documents. In case of consulting packages, the
evaluation will be made as per ADB’s procedures for QCBS.
K. Value for Money
29. The project procurement arrangements detailed in this Procurement Strategy have been
decided with consideration to Value for Money (VFM). To help achieve VFM, the civil works (3
road improvement construction - each including 2 road sections - and 2 small infrastructure) and
goods packages have been restructured in accordance to geographical spread to maximise local
participation while retaining values that will attract local and international interest. Likewise, the
16 goods packages and 8 consultancy service packages have been structured into sizes which
will allow local and international competition. In the Bidding Documents the Employer’s
requirements, Bill of Quantities and RFP/ToR will be written in logical way enabling the bidders to
clearly understand the targets and requirements of each package thus supporting VFM.
L. Contract Management Approach
30. MRD staff has received training on various components of the project including ADB’s
Procurement Policy and Regulations covering procurement plan development, procurement
selection methods, bidding documents and complaint management. Within the last five years
experienced officers from both MEF and MRD have provided training sessions at least once per
year. In each session there have been 2 to 3 officers from MRD to be trained.
However, there is a need to further build their capacity and capabilities on contract management
to ensure effective and timely execution of the various project components.
31. Training on contract management plans and contract monitoring could be offered to
effectively manage the implementation of the contract. Without proper contract management of
the activities under the project, major risks likely are nonconformance to specifications,
incomplete works, and coordination issues between the separate contracts. The bidding
documents provide substantial information on contract management, such as payment
procedures, and submission of drawings, approvals, testing and payments. Other aspects like
communication etc. will be agreed upon by MRD and the contractors as part of the contract
discussions and a suitable plan will be annexed to the contract.
27
Appendix
Procurement Plan
Project Name: Agricultural Value Chain Competitiveness and Safety Enhancement Project
Project Number: 50264-002 Approval Number: LXXXX, LXXXX, LXXXX and
GXXXX
Country: Cambodia Executing Agency: Ministry of Agriculture Forestry
and Fisheries (MAFF)
Project Procurement Classification: B Implementing Agencies: MAFF, MEF and MRD
Project Procurement Risk: Low
Project Financing Amount: Project Closing Date: 30 August 2027
ADB OCR (Concessional Loan): $70.00 million
ASEAN Infrastructure Fund (concessional loan): $5.00
million
Japan Fund for Poverty Reduction (grant): $3.00 million
AFD loan: $25.00 million
Government: $7.06 million
Total: $110.06 million
Date of First Procurement Plan: [loans/grant approval Date of this Procurement Plan: October 2020
date]
Procurement Plan Duration (in months): 18 Advance Contracting: Yes e-Procurement: No
1. Methods, Review, and Procurement Plan
1. Except as ADB may otherwise agree, the following methods shall apply to the
procurement of goods, works, non-consulting services, and consulting services.
Procurement of Goods, Works, and Non-consulting Services

Method Comments
Open competitive bidding for Goods International advertisement is required for laboratory equipment given
the lack of qualified and experience suppliers in Cambodia.
National advertisement is acceptable for vehicles and equipment.
Prior review will be undertaken for all packages.
Open competitive bidding for Works International adverting is considered for increased competition.
EA has requested use of ADB Works SBD for all bid packages.
Prior review will be undertaken for all packages
Request for Quotation Used for low value non-complex packages. The first RFQ package
shall be subject to prior review, with the remainder subject to post
review (sampling)
Consulting Services
Method Comments
Open competitive bidding with Consultant packages are large and require expertise that local firms
international advertising using Quality cannot easily provide.
and Cost-Based Selection
28
Individual consultant selection Five individual consultants who are mainly financial management
(international and national) experts will be recruited
2. Lists of Active Procurement Packages (Contracts)
2. The following table lists goods, works, non-consulting services, and consulting services
contracts for which the procurement activity is either ongoing or expected to commence within
the procurement plan’s duration.
Goods, Works, and Non-consulting Services

Package General Estimated Procurement Review Bidding Advertise Comments
Number Description Value ($m) Method Procedure ment Date
(quarter,
year)
MRD- Road 4.96 OCB Prior 1S1E Q4/2020 Advertising: International
CW01- Improvement
AFD Package no. 1 Number of lots
(contracts): Two (2)
Lot 1: 1.86
Road Prequalification of
Improvement for Bidders: No
Roads KPT-02
(Trapaing Thmar- Domestic Preference: No
Dang Antaek,
12.40 km), Advance Contracting: Yes
Lot 2: 3.10 Bidding Documents:

Road ADB’s SBD for Works
Improvement for
Road PVH-01
(Sangkum Thmey-
Taseng, 24.19 km)
CW02- Improvement
AFD- Package no. 2 Number of lots
(contracts): Two (2)
Lot 1: 4.56
Roads OMC-10
(Banteay Thmey- Domestic Preference: No
Atao, 27.70 km)
Advance Contracting: Yes
Lot2: 2.45
Road Bidding Documents:
Improvement for ADB’s SBD for Works
Road SRP-05
(Kok Klaing-Phumi
Kul, 16.20 km)
CW03- Improvement
AFD Package no. 3 Number of lots
1.80 (contracts): Two (2)
Lot 1:
Road TBK-10
(Dambae Domestic Preference: No
Sreveng,12.50
km) Advance Contracting: Yes
Lot 2: 3.00 Bidding Documents:

Road ADB’s SBD for Works
Improvement for
Road KPC-10 (Ou
Mlou, 17.55 km)
29

(quarter,
year)
MAFF- Pesticides 1.75 OCB Prior 1S1E Q2/2021 Advertising: International
GD01- residues analysis
ADB equipment (GC Number of contracts:
and LC-MS/MS, One (1)
laboratory
equipment and Prequalification of
chemicals for Bidders: No
NAL)
Domestic Preference: No
Advance Contracting: No
Bidding Documents:
ADB’s SBD for Goods
MAFF- Specialized 0.08 RFQ Post 1S1E Q2/2022 Number of contracts: One
GD02-AFD laboratory (Sampling)
furniture (NAL) Prequalification of
Bidders: No
Bidding Documents:
Standard RFQ (National)
MAFF- Veterinary 0.12 RFQ Post 1S1E Q2/2021 Number of contracts: One
GD03-AFD Medicine (Sampling)
Residues Prequalification of
(laboratory Bidders: No
equipment,
standards and Domestic Preference: No
chemicals for
NAHPRI) Advance Contracting: No
Bidding Documents:
MAFF- Mycotoxins 0.32 RFQ Post 1S1E Q2/2021 Number of contracts: One
GD04-AFD analyses by HPLC (Sampling)
& ELISA (HPLC, Prequalification of
laboratory Bidders: No
equipment and
chemicals for Domestic Preference: No
CamLAPF)
Bidding Documents:
MAFF- Heavy metals 1.48 OCB Prior 1S1E Q2/2021 Advertising: International
GD05-AFD analyses (ICP-MS,
laboratory Number of contracts: One
equipment and
chemicals for Prequalification of
CamLAPF) Bidders: No
Bidding Documents:
ADB’s SBD for Goods
MAFF- Microbiology 0.13 RFQ Post 1S1E Q2/2021 Number of contracts: One
GD06-AFD Equipment & (Sampling)
Chemicals Prequalification of
(CamLAPF) Bidders: No
30

(quarter,
year)
Bidding Documents:
MAFF- Office Equipment 0.08 RFQ Post 1S1E Q1/2021 Number of contracts: One
GD07- (16 desktop (Sampling)
ADB computers, 20 Prequalification of
laptop computers, Bidders: No
14 printers, 5
projectors, 5 copy- Domestic Preference: No
printer machines
and accessories) Advance Contracting: No
Bidding Documents:
MAFF- Pick-ups 0.46 RFQ Post 1S1E Q4/2020 Number of contracts: One
GD08- (9 units: 3 for PMU (Sampling)
ADB and 6 for MAFF) Prequalification of
Bidders: No

Bidding Documents:
MAFF- Motorcycles 0.03 RFQ Post 1S1E Q1/2021 Number of contracts: One
GD09- (24 units for (Sampling)
ADB MAFF/PDAFFs) Prequalification of
Bidders: No
Bidding Documents:
MRD- Office Equipment 0.02 RFQ Post 1S1E Q1/2021 Number of contracts: One
1 projector, 2
copy-printer Domestic Preference: No
machines and
accessories) Advance Contracting: No
Bidding Documents:
MRD- Pick-ups 0.10 RFQ Post 1S1E Q4/2020 Number of contracts: One
GD02- (2 units) (Sampling)
ADB Prequalification of
Bidders: No
Bidding Documents:
MRD- Motorcycles (7 0.008 RFQ Post 1S1E Q1/2021 Number of contracts: One
GD03- units: 1 unit for (Sampling)
ADB PIU and 6 units for Prequalification of
PDRD) Bidders: No
31

(quarter,
year)
Bidding Documents:
MEF- Office Equipment 0.02 RFQ Post 1S1E Q1/2021 Number of contracts: One
1 projector, 2
copy-printer Domestic Preference: No
machines and
accessories) Advance Contracting: No
Bidding Documents:
MEF- Pick-ups 0.10 RFQ Post 1S1E Q4/2020 Number of contracts: One
GD02- (2 units) (Sampling)
ADB Prequalification of
Bidders: No
Bidding Documents:
MAFF- LC-MS Service 0.12 RFQ Post 1S1E Q2/2022 Number of contracts: One
NCS01- contract for (Sampling)
AFD existing Advance Contracting: No
instruments (NAL)
Bidding Documents: RFQ
MAFF- LC-MS/MS 0.23 RFQ Post 1S1E Q2/2021 Number of contracts: One
NCS02- Service contract (Sampling)
AFD for existing Advance Contracting: No
instruments
(NAHPRI) Bidding Documents: RFQ
Consulting Services
Package General Estimated Selection Review Type of Advertisement Comments
Number Description Value ($m) Method Proposal Date
(quarter, year)
MAFF- Project 2.44 QCBS Prior FTP Q4/2020 Type: Firm
CS01-ADB Implementation Assignment: International
Consultants (PIC) Quality-Cost Ratio: 80:20
Prequalification/Short-
listing of Firms: Yes
MAFF- Agricultural Value 3.95 QCBS Prior FTP Q1/2021 Type: Firm
CS02-ADB Chain Consultants Assignment: International
(AVCC) Quality-Cost Ratio: 80:20
MRD- Construction 1.16 QCBS Prior STP Q4/2020 Type: Firm
CS01-AFD Supervision Assignment: International
Consultants (CSC) Quality-Cost Ratio: 80:20
Financing Specialist Consultants (FSC) - MEF
MEF-CS01- Agribusiness 0.38 ICS Prior N/A Q4/2020 Type: Individual
ADB finance specialist Assignment: International
/Team leader Advance Contracting: Yes
32
Consulting Services
Package General Estimated Selection Review Type of Advertisement Comments
Number Description Value ($m) Method Proposal Date
(quarter, year)
MEF-CS02- Credit guarantee 0.21
ADB specialist
MEF-CS03- Agribusiness 0.28 Type: Individual
ADB finance specialist Assignment: National
/Deputy team leader Advance Contracting: Yes
MEF-CS04- Financial 0.04
ADB management
specialist
MEF-CS05- Project 0.17
ADB administration
1S1E = single-stage: one-envelope; ADB = Asian Development Bank; AFD = Agence Française de Développement;
AIF = ASEAN Infrastructure Fund; CS = consulting services; CW = civil works; GD = goods; ICS = individual
consultant selection; kms= kilometers; MAFF = Ministry of Agriculture, Forestry and Fisheries; MEF = Ministry of
Economy and Finance; MRD = Ministry of Rural Development; NCS = non-consulting services; OCB = open
competitive bidding; Q = quarter; QCBS=quality and cost-based selection; RFQ = request for quotations;
STP=simplified technical proposal.
3. List of Indicative Packages (Contracts) Required Under the Project
3. The following table lists goods, works, non-consulting services, and consulting services
contracts for which the procurement activity is expected to commence beyond the procurement
plan duration and over the life of the project.
Goods, Works, Non-consulting and Consulting Services

Package General Estimated Value ($m) Procurement Review Bidding Advertisement Comments
Number Description Method Procedure Date
(quarter, year)
MAFF- Small 3.22 OCB Prior 1S1E Q1/2022 Advertising: TBC
CW01- Production Number of
ADB Infrastructure contracts:
for Agricultural multiple
Cooperatives Prequalification
(AC) I of Bidders: No
(e.g., Domestic
warehouses, Preference: No
greenhouse, Advance
drying Contracting: No
yard/shades) Bidding
Documents: TBC
MAFF- Small 2.77 OCB Prior 1S1E Q1/2022 Advertising: TBC
CW02- Production Number of
AIF Infrastructure contracts:
for Agricultural multiple
Cooperatives Prequalification
(AC) II of Bidders: No
(e.g., Domestic
warehouses, Preference: No
greenhouse, Advance
drying Contracting: No
yard/shades) Bidding
Documents: TBC
MAFF- Additional LC 1.65 OCB Prior 1S1E Q2/2024 Delivery of these
GD09- and GC for goods will start in
ADB pesticide the 4th year of the
(NAL) project.
MAFF- Agricultural 2.54 OCB Prior 1S1E Q1/2022 Estimated

GD10- equipment, Number of
JFPR materials, and Contracts: TBC
works for
demo farms
33

Package General Estimated Value ($m) Procurement Review Bidding Advertisement Comments
Number Description Method Procedure Date
(quarter, year)
This package
shall be
implemented in
conjunction with
packages
MAFF-CW01-
ADB and MAFF-
CW02-ADB.
ADB = Asian Development Bank; AIF = ASEAN Infrastructure Fund; CW = civil works; GD = goods; MAFF = Ministry
of Agriculture, Forestry and Fisheries; OCB = open competitive bidding; Q = quarter; STP=simplified technical
proposal; TBC = To be confirmed
4. List of Awarded and Completed Contracts
4. The following table lists the awarded and completed contracts for goods, works, non-
consulting and consulting services.

Package Number General Contract Value Date of ADB Approval Date of Comments
Description ($m) of Contract Award Completion
5. Non-ADB Financing
5. The following table lists goods, works, non-consulting and consulting services contracts
over the life of the project, financed by non-ADB sources.

Package Number General Contract Value Date of ADB Approval Date of Comments
Description ($m) of Contract Award Completion
None

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Agricultural Value Chain Competitiveness and Safety Enhancement Project

Strategic Procurement Planning

Project Number: 50264-002

Cambodia: Agricultural Value Chain

SECTION 1: PROJECT CONCEPT ........................................................................................... 1

ADB - Asian Development Bank

SECTION 1: PROJECT CONCEPT

Project Title Agricultural Value Chain Competitiveness and Safety

finance (Output 1), capacity building and public services

- Individual Consultant MEF-CS01-ADB to MEF-CS05-ADB,

Grand total for all indicative procurement packages is $40.63

SECTION 2: OPERATING ENVIRONMENT

A. Capacity and Capability Assessment of the Executing Agency

1. MAFF (Executing Agency)

• Law on Public Procurement is in place. • E-procurement is not in place.

• Borrower agency is a dominant buyer in the

2. MRD (Implementing Agency)

• Law on Public Procurement is in place. • E-procurement is not in place.

C. Key Procurement Conclusions

D. External Influences Analysis

Governance • There is a stable National Government.

E. Key Procurement Conclusions

F. Stakeholder Analysis and Communication Plan

4. To enable successful project planning and implementation, it is necessary to identify the

G. Stakeholder Communication Plan

Keep Satisfied Key Stakeholders

• Village Development MAFF and MRD

Minimal Effort Keep Informed

1. Key Stakeholder Group

2. Keep Satisfied Stakeholder Group

Action Generally, the stakeholders in this group have a positive approach

3. Minimal Effort Stakeholder Group

Interest in the Project Low Interest

3. Marketing and Information dissemination materials

4. Keep Informed Stakeholder Group

Interest in the Project High Interest

H. Key Procurement Conclusions

Communication with the stakeholder groups will be maintained as appropriate.

SECTION 3: MARKET ANALYSIS

A. Porter’s Five Forces

B. Key Procurement Conclusions

Skilled labor is scarce.

• Highly specialized Strategic Critical

• Vehicles • Small simple infrastructure

D. Key Procurement Conclusions

F. Key Procurement Conclusions

SECTION 4: RISK MANAGEMENT

A. Project Procurement Risk Assessment Risk Register

8 Inadequate 1 5 5 Road design TRTA

SECTION 5: OPTIONS ANALYSIS

A. Scope of the Project

(i) Rehabilitation of six Rural Roads: These roads are:

1) TrapaingThmar-Dang Anteak, 12.40 km

(ii) Small Infrastructure Works for Agricultural Cooperatives (AC):

• Laboratory Equipment in 9 contracts

(iii) Consulting Services:

• Project Implementation Consultants (PIC)

Strategic Options Description Feasibility Suitability Acceptability Overall Comments

Strategic Options Description Feasibility Suitability Acceptability Overall Comments

Strategic Options Description Feasibility Suitability Acceptability Overall Comments

Packaging Summary and Responsibilities

SECTION 6: PROCUREMENT STRATEGY SUMMARY