Promoting South Asian Regional Economic Cooperation II

Transcription

1 Technical Assistance Report Project Number: Regional Capacity Development Technical Assistance (R-CDTA) December 2008 Promoting South Asian Regional Economic Cooperation II The views expressed herein are those of the consultant and do not necessarily represent those of ADB s members, Board of Directors, Management, or staff, and may be preliminary in nature.

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3 ABBREVIATIONS ADB Asian Development Bank FAO Food and Agriculture Organization PCN project concept notes RCI regional cooperation and integration SAARC South Asian Association for Regional Cooperation SAC SAARC Agriculture Center SAFTA South Asia Free Trade Area SAOC South Asia Country Coordination and Regional Cooperation Division SRETS SAARC Regional Energy Trade Study SRMTS SAARC Regional Multimodal Transport Study TA technical assistance TECHNICAL ASSISTANCE CLASSIFICATION Type Regional capacity development technical assistance (R-CDTA) Targeting Classification General intervention Sectors Multisector (agriculture and natural resources, transport and communications, industry and trade) Subsectors Agriculture production, agroprocessing, and agribusiness; multimodal transport and sector development; trade Themes Regional cooperation, sustainable economic growth, capacity development Subthemes Trade and investments, promoting economic efficiency and enabling markets, institutional development NOTE In this report, "$" refers to US dollars. Vice-President X. Zhao, Operations Group 1 Director General K. Senga, South Asia Department (SARD) Director B. Carrasco, Country Coordination and Regional Cooperation Division, SARD Advisors Team leader Team members F. Roche, Deputy Director General, SARD A. Sharma, Director, Governance, Finance, and Trade Division, SARD N. Sinsiri, Senior Economist (Regional Cooperation), SARD P. Dayal, Principal Economist, SARD S. Oh, Principal Regional Cooperation Specialist, SARD P. Spantigati, Senior Country Programs Specialist, SARD

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5 I. INTRODUCTION 1. The Asian Development Bank (ADB) has been working closely with the South Asian Association for Regional Cooperation (SAARC) to promote regional cooperation in South Asia. The memorandum of understanding between SAARC and ADB, signed on 12 April 2004, provided a framework for collaboration between the two institutions on activities to accelerate broad-based economic growth and social development; promote cross-border movement of goods, services, and people through regional cooperation; and promote institutional links with other regional cooperation initiatives. 2. A regional technical assistance (TA) for Promoting South Asian Regional Economic Cooperation 1 has been assisting the SAARC Secretariat to (i) implement priority regional cooperation activities; (ii) enhance the capacity of the SAARC Secretariat, select entities and regional centers, 2 and member states for effective planning, processing, and implementation of the key regional cooperation agenda; and (iii) prepare activities to strengthen cooperation between SAARC and the Association of Southeast Asian Nations (ASEAN). Two other TAs also assisted SAARC in organizing a workshop on the proposed SAARC Development Fund, 3 and in preparing the energy sector dialogue During the SAARC secretary general s visit to ADB headquarters on December 2007, the SAARC delegation requested ADB to provide a follow-on umbrella TA 5 to move the key decisions and outcomes of SAARC summits forward and support the activities of the SAARC Secretariat. The meeting also served as a fact-finding mission. Although the TA will focus on important areas including agriculture, energy, transport, and trade it was agreed that the TA should have enough flexibility to include areas of emerging importance, such as environment and climate change, as the need arises. The proposed activities of the TA are in line with the operational objectives of the Regional Cooperation Strategy and Program for South Asia ( ). The TA is included in the South Asia Regional Cooperation Operations Business Plan for The design and monitoring framework is in Appendix 1. II. ISSUES 4. ADB is mandated by its charter to foster regional cooperation. Recognizing the vital role of regional cooperation and integration (RCI) in Asia s future, and in realizing its overall vision an Asia and the Pacific region free of poverty ADB formulated the RCI Strategy 7 in ADB Technical Assistance for Promoting South Asian Regional Economic Cooperation. Manila (TA REG). The TA is expected to be completed in June There are 10 SAARC regional centers: Agriculture Center (Dhaka), Meteorological Research Center (Dhaka), Tuberculosis and HIV/AIDS Center (Kathmandu), Documentation Center (New Delhi), Information Center (Kathmandu), Human Resources Development Center (Islamabad), Coastal Zone Management Center (Male), Energy Center (Islamabad), Disaster Management Center (New Delhi), and Forestry Center (Thimpu). 3 ADB Technical Assistance for a Workshop on Proposed South Asian Association for Regional Cooperation (SAARC) Development Fund. Manila (TA 6302-REG). 4 ADB Technical Assistance for Preparing the Energy Sector Dialogue and South Asian Association for Regional Cooperation Energy Center Capacity Development Project. Manila (TA 6368-REG). 5 The TA first appeared in the business opportunities section of ADB s website on 7 October ADB South Asia Regional Cooperation Operations Business Plan Manila. 7 ADB Regional Cooperation and Integration Strategy. Manila. Cross-border infrastructure, trade and investment cooperation, monetary cooperation, and cooperation on regional public goods are the four pillars of the strategy.

6 2 ADB s long-term strategic framework (Strategy 2020) 8 importance of RCI. also emphasizes the 5. Although South Asia is one of the fastest growing regions in Asia, its share of world trade and share of intraregional to total trade remains much low compared to other regions. The region s contiguity holds immense potential not only in increasing intraregional trade, but also in improving the regular movement of people across borders and boundaries, and accessing the region s densely-populated markets. Increased connectivity in South Asia could help propel inclusive growth. 6. The 15th SAARC Summit 9 reaffirmed the SAARC leaders commitment to regional efforts to accelerate growth, social progress, and cultural development; and develop regional and subregional projects. The leaders urged quick implementation of the cooperative agenda on connectivity, energy, agriculture and food security, trade, and environment; and called for the implementation of regional agreements such as the South Asia Free Trade Area. 7. ADB assisted SAARC in conducting the SAARC Regional Multimodal Transport Study (SRMTS), 10 a detailed road map to improve regional transport connectivity. 11 SAARC member states have identified a number of subregional projects based on SRMTS, on which further work through high-level inter-governmental meetings will address the matters further. 8. SAARC leaders have also emphasized the need to expeditiously develop renewable sources of energy, such as hydropower; conserve energy; and introduce energy reforms, efficiency, and trade. Following the completion of the ongoing ADB-supported SAARC Regional Energy Trade Study (SRETS), the feasibility studies for a regional energy grid and other identified potential projects will need to be undertaken. 9. Recognizing the importance to regional trade of mutual recognition of standards and the harmonization of customs procedures, the 15th SAARC Summit signed an agreement on the Establishment of a South Asia Regional Standards Organization. The implementation of the agreement will be vital in facilitating trade in South Asia. 10. Cooperation in agriculture and food security has also intensified in the past year following concerns about rapidly-rising commodity prices, including world food prices; declining stocks of cereals; concerns over productivity and natural resource base; more erratic weather patterns that may be a harbinger of climate change; and the fast-growing interdependence of markets for food and energy. As highlighted during the 15th SAARC Summit, SAARC member states are now cooperating more actively to promote food security and enhance agricultural productivity and sustainability, including timely responses to the emerging trends in international and domestic food markets ADB Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank Manila. Strategy 2020 commits, by 2020, at least 30% of ADB operations in support of subregional and regional development. The three complementary strategic agendas are inclusive growth, environmentally-sustainable growth, and regional integration. 9 Held on 2 3 August 2008 in Colombo, Sri Lanka. 10 Supported by the regional TA for Promoting South Asian Regional Economic Cooperation (TA 6187-REG). 11 The study was endorsed at the 14th SAARC Summit in New Delhi in Subsequently, the study has been extended to cover Afghanistan and a model agreement on transport and transit for SAARC has been prepared. 12 The Colombo Statement on Food Security guided agriculture ministers of SAARC to establish a short- to mediumterm regional strategy and a set of projects that would promote: increased food production, investment in agriculture and agro-based industries, research on sustainable land use and agricultural technology, sharing of

7 3 11. With a view to implement the region s cooperation agenda, SAARC member states are increasingly focusing on acquisition and exchange of the necessary knowledge and skills to effectively implement regional priorities. SAARC also acknowledged the importance of sharing of successful experiences with other relevant regional cooperation initiatives. III. THE TECHNICAL ASSISTANCE A. Impact and Outcome 12. The expected impact of the TA is enhanced regional cooperation and integration in South Asia. The TA s envisaged outcome is enhanced capacity of the SAARC Secretariat, SAARC entities, and government entities of SAARC member states, as approved by the SAARC mechanisms, to effectively plan and implement regional cooperation activities. The TA expects to promote the effective sharing of information and experiences, and develop capacity in support of regional cooperation. 13. The TA will focus on institutional strengthening and have the following main components: (i) initiatives for regional food security; (ii) trade, economic, and financial cooperation; (iii) capacity development programs for SAARC entities, including select regional centers, as approved by the SAARC member states and training programs; (iv) programs to support institutional links with other regional organizations; and (v) technical and logistics support. B. Methodology and Key Activities 14. The TA will focus on the following priority areas: agriculture, including food security; energy; transport; and trade. The TA is designed to be flexible to allow for the inclusion of activities of other emerging important sectors or thematic areas (e.g., environment), or those supporting the resolutions of inter-ministerial meetings. The SAARC Secretariat and ADB will hold periodic consultation meetings to discuss and agree on priorities, milestones, and details of activities to be implemented in an agreed timeframe. A joint SAARC ADB annual work program reflecting and outlining these agreements could also be formulated for the approval of SAARC higher bodies. 15. The TA will support SAARC initiatives for regional food security. With assistance from the Food and Agriculture Organization (FAO), senior policy makers and technical experts from agriculture and food ministries, and leading research entities have prepared initial proposals for a program of regional cooperation to address the problems of (i) low and stagnating productivity in both marginal and productive areas of the region, (ii) high pre- and post-harvest crop losses and low value addition, (iii) degradation of soil and water resources, (iv) lack of biosecurity and food safety measures, and (v) inadequate human resource capacity in the areas of food safety and trade. The TA will prepare a set of detailed project proposals, with associated implementation plans, cost estimates, and possible financing arrangements. 16. On trade, economic and financial cooperation, the TA will support: (i) a study on the regional economic integration in SAARC, its current extent and recommendations for further deepening; (ii) development of institutional framework for data collection on trade in services, including capacity building; (iii) a study on codification of variations in the level of development best practices in food procurement and distribution, and management of climate and disease risks in agriculture. The summit directed that the SAARC Food Bank be urgently operationalized.

8 4 of capital markets in SAARC member states. Through this support, the TA will assist in the formulation of policy agenda and preparation of regional investment projects. 17. SAARC-approved knowledge management activities such as workshops and conferences involving representatives from the Governments and SAARC Secretariat on one hand, and other stakeholders, as appropriate could also be organized to facilitate discussions on regional cooperation. These activities could be used to disseminate information on and generate support for regional cooperation projects, as agreed. 18. The TA will support capacity development of select SAARC entities, including regional centers, 13 as requested by the member states. Capacity building and the training needs will be assessed by SAARC mechanisms. The specific programs will be developed in consultation with SAARC Secretariat and concerned entities and select regional centers to ensure that they are need-based and value added. Training programs could be designed based on the successful training modules of other regional cooperation initiatives. A mix of case study, experience sharing, on-site visit, and lectures will be used for the training. Other stakeholders could be invited to participate in selected training programs, as appropriate. 19. The TA will help build the institutional links between SAARC and other regional organizations, as approved by SAARC member states, through joint meetings, field visits, and other knowledge management activities. Such links would not only enable the sharing of experiences and lessons from each other, but would also promote economic activities among regions. This would ultimately enhance economic gains for all partners. 20. The regional cooperation advisor will prepare semi-annual progress reports to be distributed to the SAARC Secretariat. Mutually agreed appropriate documents related to the TA, could be disseminated or posted on the ADB website and the SAARC website, as appropriate. C. Cost and Financing 21. The TA cost is estimated at $1.5 million and will be financed on a grant basis by ADB s TA funding program. The SAARC Secretariat and SAARC member states will provide in-kind contributions. 14 The detailed cost estimates and financing plan are shown in Appendix 2. D. Implementation Arrangements 22. The TA will be implemented over a 24-month period beginning March 2009 until February ADB will be the executing agency in consultation with the SAARC Secretariat. A steering committee comprising representatives from the SAARC Secretariat and ADB will oversee overall project implementation. Specific components will be jointly implemented by ADB and SAARC Secretariat, and where required, through SAARC entities including select regional centers. Given the priority attached to food security, the initiatives for regional food security will be implemented by the SAARC Agriculture Center (SAC) under the overall guidance of the SAARC Secretariat. 15 The component on trade, economic, and financial cooperation will be implemented through the SAARC Secretariat. The technical and logistics support component 13 Selection of the SAARC entities and the regional centers will be agreed with SAARC Secretariat and approved by the member states. 14 Including officials time, resource persons, and office space as agreed with SAARC Secretariat during implementation. 15 The Agriculture, Natural Resources, and Social Services Division of ADB s South Asia Department will coordinate the implementation of the component on initiatives for regional food security.

9 5 will be implemented by ADB. Disbursements under the TA will be conducted in accordance with ADB s Technical Disbursement Handbook (2008, as amended from time to time). No activity will be financed in any member country under this TA, unless and until a letter of no objection in respect of the activities under the TA is received from the government of such member country. 23. An ADB TA team will comprise staff of the South Asia Country Coordination and Regional Cooperation Division (SAOC); Nepal Resident Mission; and other divisions, resident missions, and consultants, as appropriate. SAOC will be responsible for overall TA implementation within ADB, in coordination with the SAARC Secretariat. 16 Designated focal persons from relevant divisions will assist in implementing selected activities and/or programs. 24. A total of 23 person-months of international consultancy services and 108 personmonths of national consultancy services will be engaged on an individual basis by ADB in close consultation with the SAARC Secretariat and concerned SAARC entities, including select regional centers, in accordance with ADB s Guidelines on the Use of Consultants (2007, as amended from time to time). The initiatives on regional food security will require international and national consultancy services comprising scientists, researchers, and support staff providing technical and logistical support. 17 All equipment acquired under this TA will be procured in accordance with ADB's Procurement Guidelines (2007, as amended from to time) 25. The trade, economic, and financial cooperation component will require international and national consultants to provide analytical and advisory inputs on selected topics and identify possible sectoral regional initiatives and interventions that could be supported by SAARC. The capacity development of SAARC entities, including select regional centers, as approved by the member states; and the training programs will require international and national consultants to design and conduct capacity development and training programs in close consultation with the SAARC Secretariat and the concerned SAARC entities and regional centers. 26. The technical and logistic support component will be undertaken by ADB. A regional cooperation advisor, based in the Nepal Resident Mission, and a senior program analyst will each be engaged to assist the ADB TA team in coordinating with the SAARC Secretariat, consultants, and other stakeholders. The consultants will also provide technical, advisory, and logistics services for the TA implementation and other activities related to RCI in South Asia. 27. Generic outline terms of references of all the consultants are given in Appendix 3. However, a certain level of flexibility will be required to allow ADB to accommodate the SAARC Secretariat s requests that may arise during the finalization of the annual SAARC ADB work program and/or during the TA implementation. IV. THE PRESIDENT'S DECISION 28. The President, acting under the authority delegated by the Board, has approved the provision of technical assistance not exceeding the equivalent of $1,500,000 on a grant basis for Promoting South Asian Regional Economic Cooperation II, and hereby reports this action to the Board. 16 SAOC will coordinate with the Office of Regional Economic Integration, the Regional and Sustainable Development Department, the Central and West Asia Department, the Economics and Research Department, the Southeast Asia Department, and the ADB Institute on knowledge-management activities and activities for building institutional links with other regional organizations. 17 For the food security component, relevant specialists of FAO may be recruited in accordance with the existing cooperative agreement between ADB and FAO.

10 6 Appendix 1 DESIGN AND MONITORING FRAMEWORK Design Summary Impact Enhanced regional cooperation and integration in South Asia Performance Targets and/or Indicators Number of regional initiatives being implemented each year Number of new cross-border agreements Data Sources and/or Reporting Mechanisms Regional and national statistics SAARC Summits and agreements News and other public data Assumptions and Risks Assumption Commitment and support of participating countries to SAARC process and regional cooperation Risks Changing political and macroeconomic conditions in the region Varying implementation capacity among countries Outcome Enhanced capacity of SAARC Secretariat, SAARC entities including select regional centers, and government entities of SAARC member states, as approved by the SAARC mechanisms, to effectively plan and implement regional cooperation activities Outputs 1. Initiatives for regional food security 2. Studies and papers on trade, economic, and financial cooperation 3. Capacity development programs for SAARC entities and training programs for SAARC officials from SAARC member states. Timely implementation of identified priorities and goals for regional cooperation New skills acquired and/or improvement of skills in implementing regional cooperation initiatives Effective dialogue and interaction among SAARC member states to further deepen regional cooperation Detailed proposals, with associated implementation plans, cost estimates, safeguard provisions, and financing arrangements for formal submission to SAARC leadership Timely preparation of quality studies and papers At least three studies and/or papers accepted and/or endorsed by SAARC Secretariat and member states Assessment of regional centers capacity Capacity development programs undertaken in a year Number of trainings undertaken in 1 year Reports by SAARC and the regional centers SAARC summits Regional and national statistics News and other public data Meetings between the SAARC Secretariat and ADB TA team Reports from the SAARC Secretariat Consultants reports Progress reports prepared by regional cooperation advisor Varying policies and priorities on SAARC initiatives among Governments Assumption Timely and necessary inputs from participating countries and stakeholders Risk Different priorities accorded to regional projects versus national projects Assumptions Strong partnership between SAARC and ADB Other regional organizations have strong interest in cooperating in a mutually beneficial way with SAARC Risks Political instability and security issues Changes in governments and officers-in-charge

11 Appendix 1 7 Design Summary 4. Programs to support institutional links with other regional organizations Performance Targets and/or Indicators Achievement of program goals and objectives as designed Effective interaction and exchange of information between SAARC and other regional organizations Data Sources and/or Reporting Mechanisms Assumptions and Risks 5. Technical and logistics support Timely preparation and number of seminars, meetings, and conferences organized Timely submission of quality reports Activities with Milestones a Component 1: Initiatives for Regional Food Security 1.1 Prepare 7 10 detailed project proposals on regional food security, with resource contributions committed by participating research institutions at country level. 1.2 Organize regional consultations, workshops, and other networking with participating research institutions for the purpose of project formulation for food security. 1.3 Organize multi-stakeholder field visits for data collection and project formulation. 1.4 Organize and participate in consultation visits to Asia-based regional and international agriculture institutions, among others, to support SAC capacity. Component 2: Trade, Economic, and Financial Cooperation 2.1 Prepare papers in consultation with SAARC Secretariat on the implementation of approved initiatives on regional economic integration in SAARC, development of institutional framework for data collection on trade in services, and codification of variations in the level of development of capital markets in SAARC member states. 2.2 Coordinate with Secretariat on the implementation of the two studies and development of institutional framework for data collection on trade in services including holding of relevant workshops and coordination through national focal points. 2.3 Implement approved capacity building efforts in the conduct of above, as approved by SAARC mechanisms. Inputs ADB - $1.5 million Technical and administrative support Consulting services SAARC Secretariat and Government in-kind contribution (including officials time, resource persons, and office space as agreed with SAARC Secretariat during implementation) ADB staff time Component 3: Capacity Development and Training 3.1 SAARC mechanisms to undertake need assessment for capacity building for SAARC entities including selected regional centers. 3.2 Prepare and conduct capacity development programs as approved by the relevant SAARC bodies. 3.3 Organize approved training programs using case study, experience sharing, on-site visit, simulation workshops, and lectures. 3.4 Undertake capacity development programs, including training, as approved by the SAARC mechanisms. Component 4: Institutional Links with Other Regional Organizations 4.1 Organize joint knowledge sharing workshops on regional cooperation and sectorspecific workshops as agreed with SAARC Secretariat. 4.2 Organize, as agreed, field visits to regional projects sites, and/or centers of excellence. Component 5: Technical and Logistics Support 5.1 Prepare SAARC ADB joint annual work program. 5.2 Prepare progress report. a Milestones in time scale will be included in the SAARC ADB annual work program. ADB = Asian Development Bank, SAARC = South Asian Association for Regional Cooperation, SAC = SAARC Agriculture Center.

12 8 Appendix 2 COST ESTIMATES AND FINANCING PLAN ($'000) Item Total Cost Asian Development Bank Financing a A. Consultants b 1. Remuneration and Per Diem a. International Consultants b. National Consultants International and Local Travel a. International Consultants b. National Consultants B. Trainings, Seminars, and Conferences 1. Regional Networking and Seminars on Food Security c Other Meetings, Trainings, and Conferences 3. Field Visits 4. Consultation Visits to Asia-Based Regional and International Agriculture Institutions C. Equipment d 15.0 D. Miscellaneous Administration and Support Costs 30.0 E. Contingencies Total 1,500.0 a b c d Financed by the Asian Development Bank s technical assistance funding program. Consultants will not only be involved in the initiative for regional food security; and in the trade, economic, and financial cooperation components, but also in capacity development and training components. The initiatives on regional food security will require a total of 4 person-months of international consultancy services and 36 person-months of national consultancy services. The trade, economic and financial cooperation component will require a total of 12 personmonths of international consultancy services and 24 person-months of national consultancy services. The capacity development of SAARC entities, including select regional centers, as approved by the member states and the training programs will require a total of 7 person-months of international consultancy and 4 person-months of national consultancy services. The technical and logistic support component will include a regional cooperation advisor, based in the Nepal Resident Mission, and a senior program analyst. Each will be engaged for a period of 22 person-months. The initiatives for regional food security component will be allocated a total of $500,000 (including $290,000 for consultants remuneration, $40,000 for travel, $95,000 for seminars and consultation visit, $10,000 for equipment, $20,000 for miscellaneous costs, and $45,000 for contingency). Including computers and telecommunication equipment to be turned over upon the completion of the project to select regional centers. Source: Asian Development Bank estimates.

13 Appendix 3 9 OUTLINE TERMS OF REFERENCE OF CONSULTANTS 1. Under the technical assistance (TA), international and national consultants will be recruited to (i) develop initiatives for regional food security; (ii) implement approved initiatives and training workshops on trade, economic and financial cooperation; (iii) implement capacity development programs for South Asian Association for Regional Cooperation (SAARC) entities, including select regional centers, as approved by the member states; and the training program for officials; and (iv) provide technical and logistics support for the implementation of the TA. All consultants should have substantial work experience in South Asia. They will be engaged as individual consultants. A certain level of flexibility will be required to allow the Asian Development Bank (ADB) to accommodate SAARC Secretariat s requests that may arise during the finalization of the annual SAARC ADB work program and/or during the TA implementation. A. Initiatives for Regional Food Security 2. With support from the Food and Agriculture Organization (FAO), SAARC has prepared project concept notes (PCNs) to address five thematic problem areas in agriculture: (i) low and stagnating productivity; (ii) high pre- and post- harvest losses, and low value addition; (iii) overexploitation and degradation of natural resources (e.g., land, water, biodiversity); (iv) lack of biosecurity and food safety measures; and (v) human resource capacity in the areas of food safety, quality and standards, and trade. With considerable ownership of this work by the participating SAARC specialists, the PCNs can be fully developed and detailed in order to become feasible project proposals for submission to higher SAARC authorities. The objectives and scope of the projects need to be sharply focused. Some activities proposed in the PCNs parallel existing programs of agricultural research, training, and extension undertaken at the country level, so the full proposals need to show how these activities will be integrated and what additional benefits a regionally-coordinated approach will bring as compared to the existing country-level programs. The project cost estimates need to be refined. Institutional arrangements for implementation must be determined and agreed upon by the collaborating institutions and their parent ministries. Each PCN includes a logical framework, but the outcome and impact indicators, deliverables, and monitoring systems must be updated based on the above refinements and in relation to attributable project outputs. 3. The TA will support the additional work that SAARC will undertake to prepare proposals for consideration by SAARC leaders, and possibly by the development partners, for financing. The key outputs will be a set of detailed proposals with associated implementation plans, cost estimates, social and environmental safeguards (if needed), and financing arrangements including the indicative contributions of ADB and other donors, if any. In addition, the TA will build capacity within the implementing agency, the SAARC Agriculture Center (SAC), which has recently been given an enhanced mandate to facilitate and support knowledge dissemination and the implementation of collaborative agricultural research and development projects in the SAARC region. The outcome will be a stronger regional agricultural cooperation network and consensus on a detailed and well-coordinated program of investment and capacity development. If successful, the ultimate impacts will be improved farm incomes, better farm practices, and more sustainable natural resource management, contributing to improved food security in the SAARC region by way of enhanced subregional cooperation and trade. The initiatives for regional food security are expected to commence in March 2009 and should be completed by October 2009.

14 10 Appendix 3 4. Key activities of the food security initiatives will include: (i) (ii) (iii) (iv) (v) preparing 7 10 detailed project proposals on regional food security, with resource contributions committed by participating research institutions at country level; organizing regional consultations, workshops, and other networking activities with participating research institutions for the purpose of project formulation; organizing multi-stakeholder field visits for data collection and project formulation; preparing a medium-term capacity development action plan; and organizing and participating in consultation visits to Asia-based regional and international agriculture institutions, among others, to support SAC capacity development planning. 5. The initiatives will include extensive country-level and regional consultations with stakeholders, including concerned private and nongovernment organizations. 1 The TA will be facilitated by individually-recruited national and international experts in the thematic areas to be covered by the ensuing program. These include: 1. Senior Agricultural Advisor (international, 4 person-months) 6. The advisor will be an accomplished international agricultural specialist, with at least 20 years experience in designing, undertaking, and managing multi-country and multi-institutional collaborative programs of agricultural research and training, preferably with wide knowledge of concerned institutions and programs in SAARC member states. The advisor will: (i) provide overall guidance to SAC and the regional consultants in planning and executing their work, and (ii) guide and contribute to the preparation of detailed project proposals and final reports. The advisor will also advise SAC on formulating a medium-term plan for capacity development, including preparations to supervise the implementation of the ensuing food security program. 2. Agriculture and Food Policy Specialists (national, 36 person-months) 7. These specialists will be senior agricultural scientists and researchers from regional research, training and/or policy making institutions from SAARC member states in fields that may include: (i) agronomy; (ii) plant breeding and biotechnology; (iii) crop physiology and crop modeling, including climate change impacts; (iv) soil and water management; (v) post-harvest storage and processing; (vi) economics; (vii) trans-boundary biosecurity and food safety; and (viii) regional and international trade. 2 Besides the above specialist and/or scientists, the TA will finance supporting specialists in the areas of workshop facilitation, data management, and office administration for initiatives for regional food security. B. Trade, Economic and Financial Cooperation 8. Details of recruitment for consultants, including recruitment of the international, regional and national consultants and sector-specific thematic experts will be drawn up based on terms 1 Besides regional stakeholders and international organizations like FAO, it is envisioned that the TA will be undertaken in consultation with the international agricultural research institutions active in the region under the Consultative Group for International Agricultural Research. The TA will build upon ADB s ongoing RETA support to South Asia through coordinated international and national agricultural research. 2 Some of these specialists may be recruited in collaboration with FAO under the existing cooperation agreement between ADB and FAO.

15 Appendix 3 11 of reference of the approved initiatives, to be conveyed by the SAARC Secretariat (provision for these may be made in the approved annex): (i) (ii) (iii) a study on the regional economic integration in SAARC, its current extent, and recommendations for further deepening; development of institutional framework for data collection on trade in services, including capacity building; and a study on codification of variations in the level of development of capital markets in the SAARC Member States. 1. Thematic Experts (international, 12 person-months) 9. International consultants, as appropriate, will be recruited for the prefeasibility, sector, and thematic studies including (i) a study on the regional economic integration in SAARC; (ii) the development of institutional framework for data collection on trade in services, including capacity building; and (iii) a study on codification of variations in the level of development of capital markets in SAARC member states. The consultants may be asked to work with other international and national consultants as appropriate. The consultants will have extensive experience in the South Asia region in one or more of the following fields: regional economic integration, capital markets development, trade, regional cooperation, agriculture, energy, transport, environment, and other priority sectors. The consultants will be engaged, as required, to provide advisory and technical services. Their engagement will be based on the terms of reference, service requirements, and milestones to be prepared by ADB in close consultation with the SAARC Secretariat and the agreed-upon activities included in the joint annual SAARC ADB work program. 10. The thematic experts are expected to perform the selected tasks below: (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) receive a review of regional cooperation initiatives among SAARC countries in approved initiatives being implemented in cooperation with ADB; undertake extensive consultations with concerned officials, private sector representatives, and other stakeholders to assess the cooperation issues and opportunities in the sector; analyze and prepare a paper for regional cooperation for the relevant sector, including recommendations for projects within SAARC member states and neighboring states, and submit it to the SAARC Secretariat for further consideration; conduct approved prefeasibility studies for prioritized projects; consolidate inputs from national consultants in preparing a synthesized regional report on the sector being studied; revise and finalize completed reports on the sector concerned based on reviews and comments from the participating countries and ADB; organize and facilitate consultations and participatory meetings; participate in meetings, as approved; and perform other tasks that may be elaborated in the terms of reference agreed with the SAARC Secretariat. 2. National Sector and/or Thematic experts (national, 24 person-months) 11. National consultants from SAARC member states will be engaged for the prefeasibility, sector, and thematic studies including (i) a study on the regional economic integration in

16 12 Appendix 3 SAARC; (ii) the development of institutional framework for data collection on trade in services, including capacity building; and (iii) a study on codification of variations in the level of development of capital markets in SAARC member states. The consultants may be asked to work with other international and national consultant as appropriate. The consultants will have extensive experience in one or more of the following fields: regional economic integration, capital markets development, regional cooperation, agriculture, energy, transport, trade (trade facilitation), environment, and other priority sectors. Their engagement will be based on the terms of reference to be prepared by ADB in close consultation with the SAARC Secretariat, and the agreed-upon activities included in the joint annual SAARC ADB work program. The national consultants should have extensive knowledge of the national policies, programs, and issues affecting the particular sector being studied and should also be familiar with regional cooperation issues affecting the said sector. 12. The sector and/or thematic experts are expected to perform selected tasks as stated in para. 10. C. Capacity Development, including Training Programs, as approved by the SAARC Mechanisms 13. The capacity development component will be implemented as agreed upon by the SAARC Secretariat for the SAARC entities, including select regional centers, as approved by the SAARC mechanisms and ADB. This component will cover several activities, including implementation of assessed institutional capacity building, workshops, skills development, sharing of best practices, and on-site visits, as appropriate. 1. Capacity Development Specialists (international, 7 person-months; national, 4 person-months) 14. International consultants with expertise in capacity development and extensive knowledge of regional cooperation issues in South Asia will be engaged for the capacity development of selected SAARC entities. Their engagement will be based on the terms of reference, service requirements, and milestones to be prepared by ADB in close consultation with the SAARC Secretariat, and the agreed-upon activities included in the joint annual SAARC ADB work program. They may be asked to work with other international and national consultants as appropriate. 15. The main tasks of the international consultants will include but not be limited to the following: (i) (ii) (iii) (iv) receive from SAARC Secretariat assessment of capacity building requirements; based on the SAARC s assessment, prepare a capacity development plan, and following its approval, implement it; conduct training programs as approved under the agreed initiatives; and monitor implementation of progress in capacity building, in coordination with SAARC Secretariat, through a calendar of activities. 16. The national consultants may be engaged with the terms of reference stated in para. 15 and may be asked to work with other international and national consultants as appropriate.

17 Appendix 3 13 D. Logistics Services and Support 17. A regional cooperation advisor, based in the Nepal Resident Mission, and a senior program analyst, based in ADB headquarters, will be engaged to help ADB and the SAARC Secretariat to implement the TA efficiently and effectively. 1. Regional Cooperation Advisor (national, 22 person-months) 18. A regional cooperation advisor will be based in the Nepal Resident Mission and will (i) assist ADB in TA implementation by liaising and coordinating with the SAARC Secretariat, and ensuring the smooth flow of documents and communications among all stakeholders involved in TA implementation; (ii) help prepare conferences, workshops, seminars, and meetings under the TA, in consultation with the SAARC Secretariat; (iii) prepare TA-related documents and papers, including progress reports as required; (iv) manage the information database related to TA implementation; and (v) participate in ADB missions, and conferences, workshops, and meetings, as required. The regional cooperation advisor should have prior experience in dealing with regional cooperation in South Asia. 2. Senior Program Analyst (national, 22 person-months) 19. A senior program analyst will be recruited at ADB headquarters to (i) prepare a checklist of logistics requirements and assignments, and support TA activities; and arrange conferences, workshops, and meetings for the TA; (ii) assist ADB staff in TA administration, including budget preparation and liquidation of all individual activities under the TA; (iii) prepare and maintain a comprehensive and orderly filing system for the TA, and update files regularly; (iv) help ensure the smooth flow of documents and communications related to TA implementation; (v) assist the ADB TA team in managing the implementation database; (vi) help draft routine communications; and (vii) participate in ADB missions, conferences, workshops, seminars, and meetings as required. The senior program analyst should have prior experience in working with South Asian countries.