Multi-year Expert Meeting on Transport and Trade Facilitation:

Public and Private Partnerships for the

Development of Infrastructure to Facilitate Trade and Transport

8-10 December 2009

Cambodia: Recent Development in Transport and Trade Facilitation

by

H.E. Mr. Sorasak Pan Secretary of State

Ministry of Commerce Royal Government of Cambodia

This expert paper is reproduced by the UNCTAD secretariat in the form and language in which it has been received. The views expressed are those of the author and do not necessarily reflect the view of the United Nations.

Regional Corridors and International Highways in Cambodia Regional Corridors and International Highways in Cambodia

Road Transport ProjectsRoad Transport Projects

Air TransportAir Transport

Water Transport ProjectsWater Transport Projects

Rail Transport ProjectsRail Transport Projects

Development in Transport, Logistics and Development in Transport, Logistics and

CrossCross--border Transport Facilitationborder Transport Facilitation

In the context of Greater Mekong SubIn the context of Greater Mekong Sub--Region (GMS)Region (GMS)

1- Northern Corridor2- North-South Corridor3- North-Eastern Corridor4- North-Western Corridor5- Eastern Corridor6- East-West Corridor7- Southern Corridor8- Southern Coastal Corridor9- Central Corridor

Northern CorridorNorthern Corridor--I (1032kmI (1032km)Bankok-Aranyaprathet/Poi Pet-Phnom Penh-Bavet/Moc Bai-Ho Chi Minh-Vung Tau

Northern Coastal Corridor (893km)Northern Coastal Corridor (893km)Bankok-Trat-Koh Kong-Kampot-Ha Tien-Ca Mau-Nam Can

Central Corridors (763km)Central Corridors (763km)Trapaing Kreal-Phnom Penh-Sihanouk Ville

Northern CorridorNorthern Corridor--II (1168km)II (1168km)Bangkok-Aranyprathet/Poipet-Siem Reap-Ratanakiri-Quy Nhon

Southern Corridor-II

Southern Corridor-I

Upgrading completed in 2009 by ADB

Completed in 2005

Upgrading completed in 2004.

JICA-Upgrading completed by 2009

4 Lanes HW & Mekong Bridge to

be financed by Japan (2010-2014)

Completed in 2009 by RGC

Siem Reap

Vung Tau

Ho Chi Min City

BangkokAranyaprathet

Phnom PenhPoipet Border

Second Mekong Bridge at Neak Loeung

(Projected-2010-2014)

Upgrading completed by ADB in 2009

Local BOT, 2008

Will be completed in 2011 by PRC

Upgrading 70 km section to be completed in 2009VN: 68%completed

Financed by PRC to be completed by

2011

165km , seeking Fund

Poipet Stung Treng

Rattaanak Kiri

good condition

completed in 2007, PRC

COMPLETED

COMPLETED

Southern Southern Costal CorridorCostal Corridor

Completed in 2007 (Thai, WB,RoK)

Committed by ,RoK

SihanoukvilleSihanoukville

TraTratt

Hat Hat LekLek

Ho Chi Min CityHo Chi Min City

THAILANDTHAILAND

CAMBODIACAMBODIASreSre AmbleAmble

KhoKho KongKong

HatieHatienn

KampKampotot

Ca MauCa Mau

VIETNAMVIETNAM

Sre Amble – Phnom Penh

NR-3 : CompletedKorea : 2007

NR-3: completedWB : 2005

Siem Reap International AirportPassenger Terminal completed in 2006Siem Reap International AirportPassenger Terminal completed in 2006

Phnom Penh International AirportPassenger Terminal completed in 2004Phnom Penh International AirportPassenger Terminal completed in 2004

SIHANOUKVILLE International Airport completed 2008

SIHANOUKVILLE International Airport SIHANOUKVILLE International Airport completed 2008completed 2008

KratieKratie AirportAirport

RatanakiriRatanakiri AirportAirport

Domestic Airport Management and RehabilitationDomestic Airport Management and RehabilitationDomestic Airport Management and RehabilitationSihanoukvilleSihanoukville AirportAirport•• Opened as 3C typeOpened as 3C type

since early 2007 to since early 2007 to accommodate aircraft accommodate aircraft type ATR72 or type ATR72 or equivalentequivalent

••The airport was The airport was upgraded to the upgraded to the international type in international type in 2008 2008

SihanoukvilleSihanoukville AirportAirport

Rehabilitation and Upgrade the following domestic airports:

PreahvihearPreahvihearRattanakiriRattanakiriStung Stung TrengTrengKohKoh Kong Kong KratieKratieKratieKratieMundulkiriMundulkiri

CAMBODIA AIRPORTCAMBODIA AIRPORT

InternationalRegionalDomesticNewt d

Missing LinkPoi Pet-Sisophone48km

Northern LineSisophon-Phnom Penh338km

Southern LinePhnom Penh-Sihanoukville Port: 264km

Missing LinkPhnom Penh-Lock Ninh255km

Description 2004 2005 2006 2007 TOTAL registration 13 32 72 70 187

ownership-Transfer 3 3 11 8 25

change-dublication 10 6 8 7 31

driving licence 3 8 20 58 89

issuing the technical certificate 1 2 2 3 8 Technical (seaworthness) Inspection 135 121 180 241 677

Issuing Operational Licensing 98 100 158 185 541

TOTAL 263 272 451 572 1,558

MARITIME TRANSPORTMARITIME TRANSPORT

Description 2004 2005 2006 2007 TOTAL ship registration certificate

30 10 21 3 64 Certification on skillc capacity 12 12 13 14 51 Issuing Crew book

29 15 15 70 129 Issiung Technical Certificate

95 90 97 61 343 Issuing Operational Licencee 28 23 24 12 87

TOTAL 194 150 170 160 674

US$ millionDredgingDredging: Up to Phnom Penh, short-term 8.47

Up to Phnom Penh, medium-term 2.29Up to Kampong Cham 0.59

PortPort DevelopmentDevelopment: Phnom Penh, Short-term 2.21Re-location of Phnom Penh Port 36.69Kampong Cham Container Facility 1.67 Passenger facilities, Chong Kneas 0.40New Chong Kneas Port 15.57

WaterwayWaterway SafetySafety: Immediate priority measures 1.01Medium-term 1.00

LegalLegal: 0.35

TOTAL US$ 70.25 million

GMS Agreement on Cross-Border Transport (CBTA): signed and ratified the GMS CBTA and 17 AnnexesAnnexes and 3 Protocols.

Initial Implementation on GMS CBTA (GMS IICBTA) between Cambodia and Thailand:• MOU on GMS IICBTA through the Aranyaprathet-Poipet Border Crossing Points• MOU on the Exchange of Traffic Rigth (allow 40 vehicles from each country to perform

the cross-border transportation) • Addendum to the MOU between the Exchange of Traffic Rights for Cross-Border

Transport through the Aranyaprathet-Poipet Border Crossing Points. (De-Linking MOU2 from MOU1).

• Cambodia and Thailand planed to meet on November 2, 2009 : discussed detailed procedure for implementation

Implementation of Bilateral Road Transport Agreement (BRTA) btw Cambodia and Lao PDR• signed Agreement and Protocol on Road Transportation btwn Cambodian and Lao PDR;• 40 Trucks from each countries will perfom cross-border transportation. • Bus\Passenger services will be performed saperately by partner contract between

association and company(s) of the two countries. Route, stations, prices, quota number, and other condition of the contract should be agreed upon and certified by both authorities/ministries (MPWTs);

CrossCross--Border Transportation FacilitationBorder Transportation Facilitation

Initial Implementation on GMS CBTA (GMS IICBTA) between CambodiaInitial Implementation on GMS CBTA (GMS IICBTA) between Cambodia and and Vietnam:Vietnam:

• signed MOU on Initial Implementation on GMS CBTA (GMS IICBTA) between Cambodia and Vietnam at Bavet Moc Bai border point: (MOU on GMS IICBTA). The MOU has not been implemented due to some reasons: location identification/designation and the non-existance of Common Control Area (CCA) at Bavet border-gate; and the Custom Clearance Procedure and Custom Transit System for Goods and Vehicle.

• Customs signed MOU cross-border procedure

Implementation of Bilateral Road Transport Agreement (BRTA) betwImplementation of Bilateral Road Transport Agreement (BRTA) between een Cambodia and Vietnam:Cambodia and Vietnam:

• Cambodia has signed Agreement and Protocol on Road Transportation between Cambodian and Vietnam

• Allow 40 vehicles (trucks and buses ) to perform cross-border transportation between Cambodia and Vietnam;

• More than 6 border gates between two countries will open and perform cross-border transpotation;

• MOU on Type and Quantity of conmercial vehicles was signed on March 17, 2009 to increase quotas from 40 to 150 vehicles;

CrossCross--Border Transportation FacilitationBorder Transportation Facilitation

Trade Facilitation Competiveness Program (TCFP)Trade Facilitation Competiveness Program (TCFP)• US$ 10M grant from World Bank implemented by Ministry of

Commerce of the Royal Government of Cambodia (RGC).• Counterpart funding from RGC: US$ 630,000 (25.67% used)• Promotion of economic growth by:

Reducing transaction costs associated with trade and investment, Introducing transparency in investment process,Facilitation access of enterprises to export market

• Four components: Trade Facilitation: Implementation of ASYCUDA systemExport Market Access Fund (EMAF), Private Participation in Infrastructure (PPI) and Promotion of Investment (PI)Legal transparency

Component 1: Trade Facilitation: ASYCUDA implementationComponent 1: Trade Facilitation: ASYCUDA implementation• Support: ASYCUDA team at General Directorate of Custom an

d Exercise (GDCE) of MEF and Trade Facilitation Reform of Ministry of Commerce.

• Progress status:Validation and update of ASYCUDA Prototype: custom tariff, tariff tables, SAD configuration, VAT/TIN number, Taxation, ASYCUDA world in Khmer, Statistics Report, Introduction Cambodia Custom Tariff 2007: 8314 tariff linesImplementation of ASYCUDA-SADTrainings and workshopsCustom Brokers system: MEF approved 144 individuals from 76 cos.Risk Management

Component 1: Trade Facilitation: ASYCUDA implementationComponent 1: Trade Facilitation: ASYCUDA implementation• Issues and Recommendations:

April 2009 evaluation by the WB: moderately unsatisfactory:Recommendations:

o Determine if the new technology support the business requirementso Define future application reference architectureo Evaluate the architecture from the customs core processes: registration,

assessment, collection, accounting, examination, audit & post clearance and future Single window.

o Establish technology responsiveness plan to address problemo Ensure sufficient data and system management skills to avoid critical

resource dependencies.o Establish long-term ICT support systemo Revise project implement plano Establish risk management and contingency management

Component 2: Export Market Access Fund (EMAF) Component 2: Export Market Access Fund (EMAF) • Support ILO: Better Factories Cambodia project• Procurement of Management team finalized (April 2009)• Learning by doing – Expert guidance and study tour.Component 3: Private Participation in Infrastructure (PPI) and Component 3: Private Participation in Infrastructure (PPI) and

Promotion of Investment (PI)Promotion of Investment (PI)• Implementing PPI: performing necessary procedures to comply

with government and legislative bodies.• Implementing PI: the Council of Investment Board to compile all

Laws and Regulations in force and seeking financial from IFC for publications for Government-Private forums.

• Staff Training workshops• ICT system coordination with Asean-Japan center.

Component 4: Legal Transparency Component 4: Legal Transparency • Building websites for the Ministry of Justice, the Supreme Court

Provide public accessibility relevant information: including final judgments of the Supreme Court and the court of Appeal and other related laws, Decrees and Sub-decrees.Provide stimulus energy to the current MoC websiteIncrease confidence in transparency and predictability of domestic and foreign investment in the court judgments.Corresponds to Government Legal and Judicial Reform Strategy (objective #3): to promote public awareness and enhance knowledge and access of legal and judicial informa-tion.

•• ICT systems implementation for the Ministry of CommerceICT systems implementation for the Ministry of CommerceTrade Information Website (TIW)Trade Information Website (TIW)

Strategic Goal and Purpose:Strategic Goal and Purpose:

“To provide the MoC with modern, sustainable Information Systems and Technology infrastructure and coordinated services for the improvement of information access, and service delivery to public”

Strategic Goal and Purpose: Strategic Goal and Purpose: • Infrastructure: modern, effective & scalable ICT infrastructure

that insure security, availability and recovery of the MoC’sInformation Systems and Technology assets – hardware infrastructure, application data.

• Applications: open software applications with international standard, to provide core service to improve communications, eliminate redundant tasks, standardize processes, integrate information stores and automate manual tasks with linkages where appropriate to other information stores.

• Management & Support: to provide optimal level of staffing, both internal (where appropriate) and outsourced, at required location, level of seniority and skill level to support deployment and maintenance of information system and technology to support MoC’s business and operational goals

ICT systems implementation for the Ministry of CommerceICT systems implementation for the Ministry of Commerce

Trade Information Website (TIW)Trade Information Website (TIW)

Strategic Goal and Purpose (cont.): Strategic Goal and Purpose (cont.): • Sustainability: to insure adequate provision of suitable

training to all staffs in alignment with the deployment of new application as to insure their efficient use; and to introduce cost recovery mechanisms to fund future and maintain present ICT investment.

• Quality: assure quality of services and applications provided to MoC by way of controlled planning, project management, document, monitoring and feedback version controlled, system development and administration standards, continuous improvement of the quality system.

ICT systems implementation for the Ministry of CommerceICT systems implementation for the Ministry of Commerce

Trade Information Website (TIW)Trade Information Website (TIW)

Infrastructure

Services

Trade DbHR

Db

E-Li

brar

yE-

Mai

l

Cost recovery

Cap

acit y

Bu i

ldi n

g

Building the ICT platformBuilding the ICT platform

Link to Commercial

offices: Embassies

Link to other

Ministries & Provincial

offices

Import and Export PermitsImport and Export PermitsMOC has under it control certain prohibited and restricted items that require issue of permits to allow import or exports

Trade StatisticsTrade StatisticsMOC’s department of Trade Information and Statistics receives trade data from Customs through receipt of a statistics bulletin in hardcopy

Certificate of Origin Certificate of Origin Issued by 3 departments of MOC (depending on country of destination) following evidence of goods being shipped

Trade Development support program (TDSP)Trade Development support program (TDSP)• US$ 12.6M initial grant from EC, UNIDO, Danida managed by

the World Bank implemented by Ministry of Commerce of the Royal Government of Cambodia.

•• ObjectivesObjectives:Support key recommendation of the DTIS:Develop and diversify exportsMaximize the contribution of Trade to Growth and poverty reduction Increase Government’s efficiency in formulating and implementing effective trade policies:Transparent and effective trade related transactions, export competiveness and growth

•• Objectives (cont.)Objectives (cont.):Impact to overall DTIS implementation:Evaluate indicators capturing evidence of improved policy, planning and implementation (development and usage of monitoring and evaluation framework).Broad commitment and ownership of the trade sector-wide process.Support the development and implementation of a sound results of framework for the overall Trade SWAp.

Trade Development support program (TDSP)

Trade Development support program Trade Development support program (TDSP)(TDSP)

•• Project componentsProject components:Four components to support the implementation of the Trade SWAp:Component 1: First pillar on cross-cutting reforms. Components 2 and 3: Third pillar on capacity. All three components: give priorities to reform and capacity development that enable growth in the priority sectors identified in the DTIS and supported by the second pillar of the Trade SWAp. Component 4: build implementation capacity for the TDSP and, by extension, the Trade SWAp.

Trade Development support program (TDSP)

Trade Development support program Trade Development support program (TDSP)(TDSP)