1. Climate Investment Funds (CIF) through ADB and World Bank
Preparation of a Strategic Pilot Program for Climate Resilience (PPCR) Project - Phase I (November January 2013)
Climate Investment Funds (CIF)
Grant No. TF097459
through ADB and World Bank

2. Consultative Workshop on PPCR Phase I Implementation 23-24 April 2012
Preparation of a Strategic Pilot Program for Climate Resilience (PPCR) Project - Phase I
Consultative Workshop on
PPCR Phase I Implementation
23-24 April 2012
Private Sector Scoping Study
Prepared by:
Mr. Keo Chamroeun,
Mr. Michele Mottolese,

3. TORs for a Scoping Study on PS Engagement in CCA
Background: The private sector scoping study as one of the two activities under Component 3, linked to SPCR implementation.
Objective: To formulate specific private sector interventions for inclusion in the detailed design of Cambodia’s SPCR and possibly other climate change adaptation projects.
Sectors: agriculture, rural infrastructure, water resources.
Target: Organized farmers, MSMEs, Companies and Institutions, NGOs, MDBs, Government agencies participating in the program
Outputs: 1 Study report; 1 Mission report, 1 PowerPoint
Timeframe: Mid Feb – Mid July 2012
Human Resources: 2 Consultants and inputs from PPCR Team.
PPCR Phase I – Private Sector Scoping Study

4. Methodology and Work Plan
Desk review; semi-structured interviews with Key Informants, included data collection; Selected field visits; Technical Meetings
Market Development Analysis approach
Work Plan
- Desk Review
- Key Informant Interviews
- Milestone: matrix with initial options
- More KIIs
- Field visits
- Technical meetings
- Milestone: Report Outlines
- Follow-up KIs
- Draft report, collection of feedback
- Milestone: final Report produced
Mid Feb - March
April - May
June - Mid July
PPCR Phase I – Private Sector Scoping Study

5. Report Structure Sections Executive Summary (in English and Khmer)
Introduction and Overview
Legal and Institutional Background
Objective of the Mission
Results and Financial and Economic Aspects
Findings and Analyses
Conclusions and Recommendations
PPCR Phase I – Private Sector Scoping Study

6. CCA and Private Sector Vulnerabilities
Vulnerability: the degree to which a system is susceptible to, and unable to cope with, adverse effects of climate change (IPCC 2007)
Agriculture sector as most vulnerable due to its high dependence on climate and because of low adaptive capacity (ADB, 2009, CHDR, 2011). Climate Change increases challenges for water management and infrastructures (SPCR).
Examples of vulnerabilities:
General awareness of PS but lack of practical options.
Changing of rice planting patterns and need for more farming flexibility. A similar scenario applies to the fishery sector.
Clients of MFIs affected by 2011 flooding have difficulties in re-payment, which increase lending risk.
PPCR Phase I – Private Sector Scoping Study

7. PPCR Phase I – Private Sector Scoping Study
PPCR Phase I – Private Sector Scoping Study

8. CCA and Private Sector Opportunities
Adaptive Capacity: the ability of a system to adjust to climate change to moderate potential damages, take advantage of opportunities, or cope with the consequences (IPCC 2007).
Solid Policy Framework for both CC mainstreaming and PS support.
Examples of response to CC do exist and have three characters:
Facilitated access to credit
Deployment of ‘know-how’, appropriate technologies and business services.
Partnership among private sector, civil society, public sector.
New international mechanisms for CC finance and technology transfer can provide new opportunities for Cambodia, but cross-sector coordination, and partnership with private sector is necessary (CHDR, 2011).
PPCR Phase I – Private Sector Scoping Study

9. Engaging Private Sector in CCA (1/2)
To engage PS in investing in CCA, we suggest to work simultaneously in:
Supporting Expansion of Financial Services, expanding MFIs and other institutions credit via credit guarantees and other measures such as TAs, allowing PS to reduce costs of investment
Supporting Expansion of Non Financial Services: transfer of know-how, business management, access to better inputs, markets, infrastructures, to reduce risks for investments
Who: Ministries and Sub-National level, Development Partners and NGOs, Private Sector
How: PPP; climate change development assistance can play a triggering role with a multiplier effect
PPCR Phase I – Private Sector Scoping Study

10. Engaging Private Sector in CCA (2/2)
Sample Diagram of Market System
PPCR Phase I – Private Sector Scoping Study

11. Initial Findings for PS Engagement (1/3)
Agriculture
Develop framework for innovative micro-credit lines
Supporting the development of resilient rice seeds market
Support rice-millers in investing in gasifies; expanding biodigesters programme
Enhancing rice-millers post-harvest facilities via innovative credit line
Crop insurance and other micro-insurances
Support climate change adaptation in fishery sector
Enhancement of CC-related businesses among MSMEs via pro-poor VCM
PPCR Phase I – Private Sector Scoping Study

12. Initial Findings for PS Engagement (2/3)
Rural Infrastructures
Developing PPP framework for Climate proofing rural infrastructures
Capacity building for national Consulting and Construction firms
Promotion of PS investments in provincial roads via BoT model
PS investments in provincial markets and other infrastructures /services
Expanding hybrid rural electricity enterprises (mini-grids).
PPCR Phase I – Private Sector Scoping Study

13. Initial Findings for PS Engagement (3/3)
Water Resources
Options for Private Sector involvement in O&M in irrigation schemes
Supporting expansion of small irrigation schemes via credit provision
Options for enhancing drip-irrigation markets
Evaluating drinking water via PS concessions
Drinking water via solar panels
PPCR Phase I – Private Sector Scoping Study

14. Inputs for Target Areas of Reference
SPCR engagement:
Agriculture & water supply: Koh Kong and Mondulkiri
Agriculture & business adapt.: BTM, KCM, KTH, SRP
Provincial roads: PRV, SVR, KCN, KSP
South. Corridor towns: Poipet, BTB, Neak Leung, Bavet.
Flood-resilient infrastr.: BTM, SRP, KTH, BTB, PST, KCM
S-Medium scale irrigation: KTH, BMC, SRP
Flood and drought management: PST, Kratie
Commercial/Agricultural Activities: High in BTB, PRV, KCM.
Environmental vulnerability: Very high in BTB, PRV; High in KCM, KCN, KTH, SVR (Source: NAPA 2006).
PPCR Phase I – Private Sector Scoping Study

15. Some Points for The Way Forward
Boosting partnership among social investment funds, MFIs, Ministries, Project developers.
Governance and O&M of irrigation schemes.
Agricultural seeds markets expansion and flexibility in farming.
The continuum mitigation – adaptation
Sector-specific Technical Meetings
Day 2: Multi-stakeholder Platform
RGC/Donors/NGOs/PS partnership in supporting appropriate technology development and reduction of business risk.
Emergency, rehabilitation and DRR: PS/NGOs synergies
A platform for awareness raising and information sharing.
PPCR Phase I – Private Sector Scoping Study

16. Thanks