1. Cambodia Silk Strategy Validation Workshop Darius Kurek Senior Officer Phnom Penh, 2 nd December 2015

2. Workshop Agenda 2 Day 1 – Wednesday, 2 nd December, 2015 08:30-09:00Arrival of participants and registration 09:00-09:15 Opening session  Opening remarks by His Excellency Mao Thora, Secretary of State, MoC, Chair of Silk Development Commission 09:15-10:00 Silk strategy validation  Presentation of the Cambodian Silk Strategy and Plan of Action Mr. Darius Kurek and Prince Pheanuroth Sisowath Group work and feedback in plenary 10:00-10:15 Coffee break 10:15-12:30 Silk strategy validation  Validation of the Strategic Orientations (Vision, objectives)  Validation of the Plan of Action Group work and feedback in plenary 12:30-14:00 Lunch break 14:00-15:00 Introduction to strategy implementation management  Presentation of the Silk Development Commission by MoC Mr You Mab, MoC  Recapitulation of concepts and functions related strategy implementation management Mr Darius Kurek Group discussion in plenary 15:00-15:15 Coffee break 15:15-16:45 Strategy process: action planning  Developing implementation activities to build the Plan of Action of the Silk strategy and guide the future work of SDC Mr Darius Kurek Group work and feedback in plenary 16:45-17:00 Wrap-up of the day  Closing remarks by Mr Mao Thora and Prince Pheanuroth Sisowath

3. Workshop Agenda Day 2 – Thursday, 3 rd December, 2015 08:30-09:00Arrival of participants 09:00-10:30 Operational planning  Selection of priority activities  Developing of biennial implementation plan (2016-2018) Mr Darius Kurek Group work in 2 groups and feedback in plenary 10:30-10:45Coffee break 10:45-12:30 Operational planning  Selection of priority activities  Developing of biennial implementation plan (2016-2018) Mr Darius Kurek Group work in 2 groups and feedback in plenary 12:30-13:30Lunch break 13:30-15:00 Developing project ideas and proposals  Methodology and tools Mr Darius Kurek Group work in 3 or 4 groups and feedback in plenary 15:00-15:15Coffee break 15:15-16:30 Developing project ideas and proposals  Methodology and tools Mr Darius Kurek Group work in 3 or 4 groups and feedback in plenary 16:30-17:00 Wrap up and next steps  Closing remarks by Mr Mao Thora Prince Pheanuroth Sisowath 3

4. Sector baseline analysis Value Chain Diagnostic Strategic planning workshop Review and consolidation workshop Finalize Strategy and management framework Endorsement and launch of strategy And then what? The ITC Export Strategy Design “Standard Model” 4 Introduction Workshop focus

5. Session 1 Cambodia silk strategy Main findings and results

6. Where do we want to go? 6 Strategic objectives( Thematic) 1Revitalized sericulture 2Skills and value chain development 3Enhanced enabling environment 4Improved market access Vison "Revitalized sericulture and modernized silk sector producing high value products providing sustainable income for women and men" To be confimred during the following session

7. Session 2 Cambodia silk strategy Strategy validation

8. Group exercise 1: Review and consolidation 8 Strategic objectives 1 2 3 4 Vison "Revitalized sericulture and modernized silk sector producing high value products providing sustainable income for women and men" Formulate the Strategic objective base on the identified thematics

9. Group exercise 2: Plan of Action review and consolidation Please use the Plan of action handout and discuss and confirm the following elements: Operational objectives Activities Priority level Beneficiaries Targets Lead implementing agency Supporting agencies Existing program or potential support Each group to consolidate and present the feedback in plenary session 9

10. Session 3 Implementation Management concepts and functions 10

11. Presentation of the Silk Development Commission by MoC 11

12. Strategy Implementation Management Advocacy, Coordination, Resource mobilization (project formulation, preparing budgets, raising funds, …) Relations with various partners (technical/financial), Performance monitoring, Communication. 12 Strategy Implementation is the execution of activities outlined in the strategy plan of action. Strategy Implementation Management is the set of all functions necessary for managing the implementation of these activities.

13. Challenges to strategy implementation Without implementation, any strategy, no matter how excellent it may be, remains merely a piece of paper Yet, many partner countries have in the past struggled to implement their strategies 13 Policy levelInstitutional level Lack of coordination abilityHuman and financial capacities to take on additional functions Many partners, many approachesDifficulty to translate PoAs into projects Competition in the allocation of resourcesInter-coordination for effective trade development Tracking of implemented activities

14. In order to effectively manage trade strategy implementation, ITC provides guidance along three key components. 14 ITC Response - Our proposal Institutional strengthening Tools Capacity- Building

15. ITC supports partners in strengthening the governance structure that ensures country ownership at all levels of the strategy implementation management process and is aligned with the existing institutions. Institutional Strengthening 15 The purpose of this framework is to insure coordination at the national level and convergence of objectives.

16. Function: Performance monitoring 16 Objective: Provide the secretariat and relevant stakeholders with real-time information on progress, constraints, and partners involved in Strategy implementation. Role of the Secretariat: Monitor the day-to-day progress of Strategy implementation vis-à-vis milestones & objectives agreed by NEC and implementing partners; Collect up-to-date information on project implementation; Suggest corrective measure to the NEC and Strategy implementing partners Inform NEC and other relevant stakeholders on implementation progress. SIMT outputs

17. 17 Function: Partner Coordination Objective: Coordinate Aid for Trade partners (potentially) involved in Strategy implementation in an effective and inclusive manner Role of the Strategy Secretariat: Act as national coordination hub for all AfT and TRTA interventions Keep abreast of all relevant AfT activities and projects in the country; Produce multi-partner workplans to ensure coherent POA implementation; Facilitate interactions among TSIs as well as between TSIs and DPs; Identify and seek synergies between projects and activities. Ressource mobilisation POA implementation Tracking and Reporting Proactive planification Communication & coordination

18. Function: Resource Mobilization 18 Objective: Mobilize sufficient resources to ensure effective implementation of the entire Strategy POAs in a timely and complementary manner. Role of the Strategy Secretariat: Draft a resource mobilisation plan for approval by the NEC; Develop project ideas and project proposals in collaboration with resource providers (Gov, PS, donors) and prospective implementing partners; Liaise continuously with potential resource providers so as to ensure alignment of their activities/projects with Strategy POAs; Engage with the private sector, and especially investors, to promote and attract investment opportunities along Strategy POAs. Number of interventions by main executing agencies SIMT output

19. Function: Policy Advocacy & Communication 19 Objective: Ensure that Strategy remain visible and relevant to key decision makers in the country and abroad. Role of the Strategy Secretariat: Advocate Strategy and its objectives to public and private partners at the national and international level; Develop a policy advocacy strategy so as to place Strategy high on the agenda of decision- making bodies (i.e. Parliament, PM Office, MoF, etc.); Provide stakeholders with communication materials to promote their involvement in steering and implementing Strategy; Draft position papers to propose changes to policies and legislations.

20. Strategy Implementation Management Tool (SIMT) 20 What is the SIMT Web-based / easy-to-use / customizable tool based on Strategy POAs; Different levels of access rights enable national stakeholders partners, donors, and other stakeholders to access and feed information into the system via the web- interface.

21. Strategy Implementation Management Tool (SIMT) SIMT objectives To support partners to effectively track, manage, and promote strategy implementation according to their specific responsibilities, To build Strategy related institutional capacity of partner countries, key partners, and ITC along strategy implementation process. 21

22. Strategy Implementation Management Tool (SIMT) SIMT outcome Provides ITC with overview of Strategy implementation progress in various countries Customizable report and visuals for partner and/or public use. 22 Number of interventions aligned to strategy by region Number of interventions aligned to strategy by sector Number of interventions by main executing agencies

23. Group exercise 3: Cambodia implementation arrangements 23 Please discuss the SDC secretariat mandat in regard to the implementation and elaborate annual work plan Scenario …

24. 24 Session 4 Projects currently implemented in line with the strategy

25. Projects supporting strategy implementation Monitoring and evaluation Programming activities in line with strategy Resource mobilisation Implemented projects in line with PoAs 25 The Strategy is already being implemented but we are not aware of all the ongoing projects. Without knowledge of what is happening it is difficult to do monitoring and pro-active programming Strategy ?

26. Group Exercise 3 26 There are various sources of resources for Strategy implementation.  List all the projects/initiatives you know are currently being implemented in your sector,  Link the projects to the sector PoA activities. ProjectPriority AreasObjectives PoA activities corresponding to the selected project activities TimeframeBudget Donor (international, regional, national, including government) ProjectPriority AreasObjectives PoA activities corresponding to the selected project activities TimeframeBudgetGovernment ProjectPriority AreasObjectives PoA activities corresponding to the selected project activities TimeframeBudgetPrivate sector

27. Session 5 Short term implementation priorities How to prioritize implementation activities?

28. What is prioritization? Prioritization is : to decide what to do and what not to do in order to implement effectively the strategy a process meant at evaluating and ranking activities in their order of importance to facilitate the strategy implementation and planning. a way to allocate resources, time and energy to those activities deemed most relevant to achieve the operational and strategic objectives within a given time period. 28

29. Why do we need to prioritize? To allow implementation of an optimal portfolio of activities to maximize benefits. To allocate scare resources to the most relevant activities in a resource constrained environment and limited time period. To define and select «low hanging fruits» for rapid implementation To implement activities along a critical path (i.e.: ensure we start with the key priorities For effective delivery 29

30. Evolving and responsive prioritization Type of additional information 30 Economics trends, new competitors Emerging opportunities Donors and institutions’ changes Emerging project and initiatives Prioritization is an ongoing process subject to additional refinement as new information or analysis emerges.

31. How to prioritize? The strategies PoA has defined 3 levels of priority activities 31 High priority activities Medium priority activities Low priority activities Level 1 = Short term Level 2 = Medium term Level 3 = Long term Main objectives This represent the first filter

32. How to prioritize?(2) Based on level 1 priorities, additional criteria will be taken into account. 1.Critical path to reach the objectives  Activity essential to achieve other activities linked to the strategic objective 2.Supported or not supported activities and estimated achievement of target  To identify resource already allocated and avoid duplication This represent the second filter 32 Prioritization criteria

33. Groups exercise 4 1. Please organize the PoA by filtering the activities by priority level: 2. For priority 1 activities: Select if the activity is essential/imperative to achieve the objective. Indicate if the activity is supported through an existing project/initiative. If supported, indicate name of project/implementing agency. 33 Access to FinanceCriteria Sector / Cross- sector Strategic objective Operational objective ActivityPriority Start date Targets Means of verificati on Leading implementi ng partners Supporting implementi ng partners Existing programme s or potential support Estimated costs (USD) Critical path (0=No, 1=Yes) Supported activities (% of supported activities according to the target of the strategy) None = 0 25% = 0.25 50% = 0.50 75% = 0.75 100% = 1 Name of the project/ implementing Agency Access to Finance 1: Process quickly all pending approvals, instructions and clarifications that will facilitate trade. 1.1 Support trade competitiveStr ategys by bringing regulation of payments for exports and imports in line with global standards. 1.1.1 Issue Ministry of Finance and Revenue instructions permitting the export of goods without proof of advance payment or L/C, as currently required, so that Cambodia may engAttorney Generale in trade according to international norms and be a more attractive sourcing destination. 2 Clear Instructions from Ministry of Finance and Revenue and Central Bank of Cambodia for this permission Ministry of Commerce; Ministry of Finance and Revenue Level 1 activities - First year of the strategy

34. Resources for implementation Resources that can be utilized to implemented activities of the Strategy can originate from: Public sector: o National or institutional budgets and human resources o National investment funds Private sector: o Enterprise level or sector associations budget and human resources o Enterprise investment International partners: o Financial partners (donors) o Technical partners (agencies) o Foreign investors 34

35. Groups exercise 5 Access to FinanceCriteriaPotential financial partners Strategic objective Operational objective ActivityPriority Start date Targets Means of verification Leading implementing partners Supporting implementi ng partners Existing programm es or potential support Estimated costs (USD) Activities that can be supported by National Budget None = 0 25% = 0.25 50% = 0.50 75% = 0.75 100% = 1 Activities that can be supported by private sector Budget None = 0 25% = 0.25 50% = 0.50 75% = 0.75 100% = 1 Activities for submission to international financial partners None = 0 25% = 0.25 50% = 0.50 75% = 0.75 100% = 1 2: Review and update the legal, regulatory and institutional frameworks for banking and finance. 2.1 Relax regulations limiting liquidity. 2.1.1 Issue regulations and Central Bank of Cambodia instructions empowering banks to establish a foreign exchange market with the full range of financial instruments – swaps, forwards, futures and options – giving Cambodia exporters the foreign exchange risk mitigation tools they need to compete confidently in international markets. 1 Two private banks involved in two or more types of foreign exchange markets (other than spot) Central Bank of Cambodia 35 Please indicate the potential level of resources that can be expected for each of the following sources: Public Private International Degree of possible support: None = 0 25% = 0.25 50% = 0.50 75% = 0.75 100% = 1

36. Selecting work priorities 36 36. A number of criteria have been evaluated by the sector team to refine the priorities for strategy implementation: Priorities from the strategy PoA Critical path to reach the objectives Supported or not supported activities and estimated achievement of target Resources that can be utilized to implemented activities Based on this information it is now possible to better plan the process of short term implementation of the Strategy. As indicated earlier, short term means 2 years from start of implementation. In the case of Cambodia, this means 2016 and 2017.

37. Groups exercise 6 37 Among all these activities can be implement within the first and the second years.. Access to FinanceCriteria Potential financial partnersPriority implementation Strategic objective Operational objective ActivityPriority Start date Targets Means of verificatio n Leading implemen ting partners Supportin g implemen ting partners Existing programmes or potential support Estimate d costs (USD) 20152016Post 2016 2: Review and update the legal, regulatory and institutional frameworks for banking and finance. 2.1 Relax regulations limiting liquidity. 2.1.1 Issue regulations and Central Bank of Cambodia instructions empowering banks to establish a foreign exchange market with the full range of financial instruments – swaps, forwards, futures and options – giving Cambodia exporters the foreign exchange risk mitigation tools they need to compete confidently in international markets. 1 Two private banks involved in two or more types of foreign exchange markets (other than spot) Central Bank of Cambodia To be realistic: Planned initiatives = Resources

38. Project design basics 38 Session 6

39. Introduction to project design Defining a project A project is a temporary endeavor undertaken to meet specific goals and objectives, to bring about beneficial change or added value. It has a defined start and end-point, budget, deliverables and specific objectives that, when achieved, signify completion. Project ≠ Programme A programme is a group of projects, related by objective, size or a common source of funding, which are managed in a coordinated way to obtain benefits not available from managing the projects individually. 39

40. Different notion of the project objective 40

41. Introduction to project design The Project design process 41 Information partly available in the strategy

42. Introduction to project design 42 Project Plan/Proposal Project Idea/Concept project life-cycle Project life-cycle - basic concept Systematic assessment of progress made and effects produced; analyze reasons for success or failure; draw lessons from experiences made; Analysis of existing situation (baseline), objective setting, option appraisal, activity and resource scheduling, risk assessment, and presentation. Implement activities as planned and approved; observe/monitor the environment; check quality of outputs; report on progress and react on changes/adapt plan; continuously improve. If there is a plausible possibility of funding

43. Project idea development 43

44. What is a Project Idea? A project idea is a short document that serves to: Identify and describe the problems to be addressed Set the initial project objectives Convey the relevance of the project for beneficiaries Demonstrate alignment with the National Policies The project idea does not have to be perfect; it will be more fully developed into a detailed project plan at a later stage. 44

45. Basic details about the project. Should demonstrate the project’s alignment to the National plans and provide the reader with a quick and clear answer to “what and how?”. Provides an outline of the project’s strategy and identifies the expected impact, outcomes, outputs, and activities. Should provide a detailed answer to the question “what and how?” Project idea structure Describe the current challenges and root causes of those challenges that the project will address. Should answer the question “why is this project necessary?” I- Project details II- Need assessment III- Logical framework / plan of action 45

46. 46 Developing a project logframe Terminology Impact Outcome Outputs Activities Inputs Overall purpose and intent of the project/benefit for final beneficiaries Intended results that the project is to achieve at the end of the implementation in terms of changes identified to the target group(s) Clearly identified deliverables that should support the achievement of the expected accomplishments/outcome Tasks executed as part of the project to produce the project’s outputs

47. Micro Short term Macro Long term Changes in the lives of people Institutional or behavioral change Operational change, change in knowledge and skills Budget & Resources Impacts Outcome Outputs Inputs Or in other words… 47 Developing a project logframe Terminology Activities Concrete actions taken

48. Project idea- Questionnaire Section 1 : Project details Project title What is the estimated duration of the project? Project overview What will be the project focus? What specific strategic or operational objective(s) will be addressed? If not applicable, what is the overall objective of the project? Who are the direct beneficiaries of the project? Who will be the lead Focal points for implementation? 48 Review the strategic or operational objectives to locate a priority area to focus on. If you already have a priority area in mind, locate the relevant strategic or operational objectives in the roadmap.

49. Project idea- Questionnaire Section 2 : Needs assessment Challenges to be addressed a)What challenges does the project seek to address ? b)What are the sub-challenges (root issues) that the project seek to address? Now that we have identified our project’s objective, we can identify the main challenges. Locate the diagnostic section of the strategy. Here you will detail the constraints of the sector to be addressed. Feel free to reformulate and/or combine the challenges to be more specific to your project. You can identify the root causes of these challenges by looking at the details of the constraints in the strategy document

50. Project idea- Questionnaires Section 3 : Logframe / Workplan / Budget Logical Framework Work plan Organization & Management Project implementation structure Budget 50

51. Group exercise 7 : Create a project idea One line heading of the proposed idea Who would be in charge of leading the implementation? Key objectives of this proposed project If implemented, what would be the main steps involved Value chain stakeholders that this idea will benefit Describe the idea clearly, using bullets if necessary Does idea have cross sector linkages? In your team’s estimate, How implementable is this idea? Are there components of national dev plans aligned with this idea? IF high level of collaboration required with Israel, explain how implementation will accomplish this

52. Thank You 52