GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR Objective Promote regional cooperation, foster economic and social integration, support increased trade and investment, and facilitate exchange and development along the east-west axis between and among Thailand, Cambodia, and Viet Nam. Participating GMS Countries Cambodia, Thailand, and Viet Nam Programs and Projects Core Transport 1. Bangkok-Phnom Penh-Ho Chi Minh City-Vung Tau Road Improvement Project 2. Southern Coastal Road Corridor 3. Southern Lao PDR-Sihanoukville Road Improvement Project 4. Cambodia Central West-East Corridor Project (part of Northern ThailandSouthern Lao PDR-Northeastern Cambodia-Central Viet Nam Corridor Project) 5. Thailand-Cambodia-Viet Nam railway development 6. Water transport development 7. Cross-border facilitation in the movement of goods and people (see flagship initiative on Facilitating Cross-border Trade and Investment) 8. Human Resource Development for the Transport Sector Other Infrastructure 9. Development of electric power grid (see flagship initiative on Regional Power Interconnection and Power Trade Arrangements) 10. Promotion of regional energy cooperation arrangements 11. Telecommunications backbone development (see Telecommunications and Information and Communications Technology Flagship Initiative) 12. Mekong Tourism Development 13. Thai Cambodian Economic Cooperation Plan GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR Program/Project 1 Description, Scope and Status Estimated Cost (US$M) Financing Plan/Sources or Potential Sources Bangkok-Phnom Penh-Ho Chi Minh City-Vung Tau Road Improvement Project Components a Bangkok-Aranyaprathet The project will upgrade roads along 40.0 Government of (Thai/Cambodian the Thai/Cambodian border. The Thailand border) section 210-km Bangkok-Phanom Sarakham-Kabinburi section has been upgraded to a four-lane highway and the 103-km section from Kabinburi-Cambodian border is scheduled to be upgraded to a fourlane route within the 9th National Development Plan period (20022006). b Poipet (Cambodian/Thai Project will upgrade the 150-km 77.5 ADB: US$50M border)-Sisophon-Siem connection along route number (RN) Cambodia: Reap section 6, east of Tonle Sap. This is US$18.5M considered high priority by the Organization of Cambodian government. The PoipetPetroleum Siem Reap section is included in Exporting ADB's lending pipeline to Cambodia Countries in 2002. (OPEC) Fund: US$9M c Sisophon-Phnom Penh The project restores national road 88.1 ADB: US$68M (RN) 5 west of Tonle Sap from (Total cost of OPEC: US$6M Sisophon to Battambang (60 km), primary Australia: 260 km of RN 5 from Pursat to roads US$0.9M Battambang, and damaged sections rehabilitation) Cambodian between Phnom Penh and Pursat government: and is part of an ADB-financed US$13.2M primary roads restoration project for Cambodia. The section from Sisophon to Battambang was financed by an ADB loan for Cambodia’s emergency flood rehabiliation project. Other components include 112 km of RN 6 Implementing Implementation Agencies Schedule Department of Highways of Thailand 2002-2006 Ministry of Public Works and Transport of Cambodia Civil works is expected to commence in Jan 2004, and be completed by 3rd quarter of 2006. Ministry of Public Works and Transport of Cambodia Expected project completion date: end of 2003 Issues and Constraints GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR page 5 Program/Project Description, Scope and Status from Kompong Thmor to the Kompong Thom provincial boundary with Siem Reap province, 205 km of RN 7 from Kompong Cham to Kratie, and rehabilitation of bridges along these roads. Civil works is 40% complete in mid-2002. d Phnom PenhThe project involves the Cambodian/Vietnamese construction/reconstruction/urban border expansion of roads along the Phnom Penh-Cambodia-Viet Nam borders, including minor road improvements, bridges and flyovers, and other crossing facilities. The Cambodian government has requested the Government of Japan for grant assistance to reconstruct the Phnom Penh-Neak Leoung section. Feasibility study began in December 2001, civil works is expected to commence in 2004. Requests have also been made for the Japanese government to finance the construction of a bridge across the Mekong River at Neak Leoung. Reconstruction of 105 km from the eastern landing of the Mekong River ferry crossing at Neak Leoung to the border with Viet Nam at Bavet, and construction of border-crossing facilities at Bavel are being financed by ADB under the Phnom Penh-Ho Chi Minh City (HCMC) Highway Improvement Project for US$57M. Civil works was 50% complete in mid-2002. Project includes minor road improvements for 60 km from Estimated Cost (US$M) Financing Plan/Sources or Potential Sources 57.0 ADB: US$40.0M (Cost of Cambodian Neak Leoung government: to Bavet US$10.7M section.) for the Neak Leoung-Bavet Cost of entire section. length, still to be estimated. Project seeks financing for other sections or project components, particularly from the Japanese government. Implementing Implementation Agencies Schedule Ministry of Public Works and Transport of Cambodia Estimated project completion date: 30 June 2003 Issues and Constraints A study is needed on the impact of constructing a bridge crossing the Mekong River at Neak Leoung in lieu of the regular ferry. GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR page 6 Program/Project Description, Scope and Status Phnom Penh to the Mekong River ferry. Feasibility study for this section began in May 2002 with financing from the Japan International Cooperation Agency (JICA). Construction is expected to commence in 2004 under the auspices of a grant from the Government of Japan. e Cambodian/Vietnamese The project involves the construction border-Ho Chi Minh City and repair of roads, bridges, border crossing facilities along the Cambodia-Viet Nam border. Reconstruction of 80 km of roads, construction and repair of 10 bridges, and construction of border crossing facilities at Moc Bai are being financed by ADB under the Phnom Penh- Ho Chi Minh City Highway Improvement Project. Civil works component consists of three international competitive bidding contracts whose work progress exceed 40% as of July 2002. Changes in technical requirements and additional works required, such as flyovers, a bypass road, and urban road expansion, will move project completion date to end of 2004. f Ho Chi Minh City-Vung This 86.5-km section (RN 51) was Tau completed in 2000, financed by the Government of Viet Nam in the amount of US$45M. A 15-km section (RN 51B) is being reconstructed, and is expected to be completed by 2003. Estimated Cost (US$M) Financing Plan/Sources or Potential Sources 144.8 ADB: US$100.0M Viet Nam government: US$44.8M 45.0 Government of Viet Nam Implementing Implementation Agencies Schedule Ministry of Transport of Viet Nam Ministry of Transport of Viet Nam Revised civil works completion date: end-2004. All auxiliary work will be completed by mid-2005. Completed in 2000 Issues and Constraints GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR page 7 Program/Project 2 Description, Scope and Status Southern Coastal Road Corridor Components a Bangkok-Trat – Hat Lek Bangkok-Trat is a four-lane highway (Thai/Cambodian for the entire length of 310 km. The border) 89-km section from Trat to Hat Lek is planned to be rehabilitated during the 9th National Development Plan period (2002-2006). b Koh Kong-KampotProject involves RNs 48, 4, 3, and 33 Vietnamese border in Cambodia. Rehabilitation of 170 km in RN 48 from Koh Kong-Sre Am Bil into gravel/laterite road is underway with locally-arranged financing (US$5M) and grant aid of US$2.6M from the Thai government. Civil works is 78% complete as of 30 July 2002. A 21.5 km section of RN3 is being upgraded as part of a World Bank-financed (US$6.48M) road rehabilitation project. Civil works for the project is 78% complete as of 30 July 2002. The Government of Cambodia considers this section of the road from the Cambodia-Thai border to Sre Ambil, which will link with RN4, as high priority and has requested the Government of Thailand to speed up project implementation. In the project’s second phase, the Thai government will support a study to pave and improve the capacity of RN48. It has committed to provide assistance to for the upgrade of the road from laterite to double-sealed bituminous, and to include construction of four long span bridges. Estimated Cost (US$M) 18.0 Financing Plan/Sources or Potential Sources Government of Thailand Various, see Various, see Status; other Status. Project costs, to be seeks financing. determined. Preparation of an ADB-assisted project is tentatively included in ADB's technical assistance pipeline to Cambodia of US$0.8M for 2004. Possible ADB loan for a section to be determined by project preparatory technical assistance, is tentatively included in ADB pipeline to Cambodia for 2005 of US$25M. Implementing Implementation Agencies Schedule Department of Highways of Thailand Ministry of Public Works and Transport of Cambodia Work on 21.5 km of RN3 under a World Bank project is scheduled to be completed in 2003. Work on RN 48 will be completed by April 2003. Issues and Constraints GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR page 8 Program/Project Description, Scope and Status Estimated Cost (US$M) Financing Plan/Sources or Potential Sources The Korea International Cooperation Agency completed a study to improve another 32 km, including a new bridge in Kampot. Implementation of this US$25M project is expected to start in 2004. Restoration of about 52 km of RN33 from Kampot to the Cambodia/Viet Nam border is being planned, to be financed by the International Development Association (IDA)World Bank. Civil works for the project has yet to commence. Small emergency repair is being undertaken by the Cambodian government. Corridor improvement may include tourism development and inviting greater private sector participation. ADB-financed technical assistance is also being considered to undertake prefeasibility study in 2004 of Koh Kong–Lok – Thailand/Cambodia–Cambodia/Viet Nam border. c Ha Tien, Ca Mau, and The transport corridor in Viet Nam 120.0 ADB: US$60M Nam Can (Southern territory will include improvement of (cost Viet Nam Provinces Corridor, Viet 222 km of road and covers estimate of government: Nam) improvement of Highway 63 (117 Viet Nam US$30M km), to be designed as category III government) Project seeks road in a plain area; and two-lane cofinancing. Highway 80 (105 km), to be upgraded to category II four-lane road in a plains area. Vietnamese consultants are undertaking prefeasibility study of the project. Corridor improvement may also include tourism development and inviting greater private sector Implementing Implementation Agencies Schedule Ministry of Transport of Viet Nam Issues and Constraints GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR page 9 Program/Project Description, Scope and Status Estimated Cost (US$M) Financing Plan/Sources or Potential Sources Implementing Implementation Agencies Schedule Issues and Constraints participation. Project preparation is tentatively included in ADB's technical assistance pipeline to Viet Nam (US$1.0M) for 2004. ADB loan for the project of US$60.0M may be provided to Viet Nam in 2005. 3 Southern Lao PDR-Sihanoukville Road Improvement Project Components a Vientiane (Lao PDR) – Assistance has been provided by Lao/Cambodia border donors including ADB, World Bank, and the Governments of Australia, Japan, and Sweden to improve this road section. b Lao/Cambodia border to This 198-km section of RN7, which Kratie will connect to RN13 in Lao PDR, is in extremely poor condition. The Cambodian government considers rehabilitating this road section a high priority. c Kratie-Phnom Penh 60.0 A prefeasibility study financed by the PRC government was completed in March 2002. Detailed engineering design commenced in October 2002. An agreement between the Cambodian and PRC governments was signed during the GMS Summit in Phnom Penh in November 2002 for the PRC government to provide concessional assistance to Cambodia for road improvement. The project constructs, upgrades, or To be rehabilitates roads along Kratieestimated Phnom Penh. The 205-km section PRC government Project seeks financing from ADB, OPEC Ministry of Communication, Transport, Post and Construction of Lao PDR Ministry of Implementation Public Works is expected to and Transport start in 2003. of Cambodia Ministry of Public Works and Transport Current condition of the road needs to be assessed. GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR page 10 Program/Project Description, Scope and Status Estimated Cost (US$M) from the junction of RN7 and RN11 at Thnal Totuoeng (Chub) to Kratie is included in ADB’s primary road rehabilitation project. Work on this section commenced in Jan 2001 and will be completed in 2003. Financing Plan/Sources or Potential Sources Fund, and the Government of Japan. Works on some 11.5 km from Kampong Cham Bridge to the junction of RN7, RN11, and Maoth Khmoung is ongoing, financed by a Japanese government grant aid and is expected to be completed by the end of 2003. Upgrading of 30 km of RN6 from Thnal Keng to the junction with RN7 at Skun, and 50 km of RN7 from Skun to Kompong Cham, was completed in 1999 under Japanese government financing. Reconstruction of 45 km from Phnom Penh to Thnal Keng along RN6 was completed in 1995, also with Japanese government assistance. d Phnom PenhThis section (RN4) is in good Sihanoukville condition. 4 Cambodia Central West-East Corridor Project (part of Northern Thailand-Southern Lao PDR-Northeastern Cambodia-Central Viet Nam Corridor Project) Components a Cambodian component The project involves reconstruction of 70 km of RN7 from the LaoCambodian border to 19 km south of Stung Treng, and further to the east for 203 km, from the junction south of Stung Treng to the Cambodia-Viet To be determined by ongoing feasibility study by a Vietnamese Project seeks financing. Implementing Implementation Agencies Schedule of Cambodia Issues and Constraints GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR page 11 Program/Project Description, Scope and Status Nam border along RN78. Estimated Cost (US$M) Financing Plan/Sources or Potential Sources Implementing Implementation Agencies Schedule consultant The Government of Cambodia will undertake emergency repair of RN78 to temporarily open the road to traffic. Upgrading of the earth road and emergency repair on 128-km section of RN78 from O Pong Moan to Ratannakiri has been completed. The Government of Cambodia has requested Vietnamese government assistance for this section, including for a feasibility study and road construction. The Vietnamese government has responded with commitment to provide, in the initial stage, assistance to undertake a study as well as to construct a 78-km section of RN78 from Yadav in the Cambodia-Viet Nam border to Ban Lunng (Rattanakiri). The Cambodian government intends to extend the route crossing the Mekong River eastward (250 km) to link Thala Barivat in the west bank of Stung Treng and Siem Reap. This will further develop and promote tourism in the northern region of Cambodia. b Vietnamese component The project involves two routings: (i) a 251-km route following Route 19 from the Cambodia-Viet Nam border to the deep-sea port in Quy Nhon, including a 183-km category III road and a 68-km category IV road and (ii) a 355-km route following Route 19 from the Viet Nam-Cambodia border 70.0 Vietnamese government Ministry of Transport of Viet Nam 2003-2005 Issues and Constraints GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR page 12 Program/Project Description, Scope and Status to the junction of Routes 19 and 14, including 64-km category IV road 291-km category III road, some 12 km south of Plei Ku, proceeding to the deep-sea port at Da Nang via Routes 14 and 14B. Under the auspices of the Vietnamese government, a Vietnamese consulting team is carrying out a master plan for the road network, including the Cambodian and Lao components, as part of the “Development Triangle Initiative.” The master plan will focus on the section on RN 78 from Bung Lung in Cambodia to Duc Co in Viet Nam. 5 Thailand-Cambodia-Viet Nam Railway Development Components a Poipet-Phnom Penh Feasibiity studies have been undertaken, including a study of the Singapore-Kunming Rail Link (SKRL) commissioned by ASEAN. The Cambodian government has formally requested ADB assistance in rehabilitating the 337-km railway line. Emergency rail construction and repair was carried out on the Phnom Penh-Battambang section between 1994-1996 under an ADB special rehabilitation assistance loan. Reconstruction of a 48-km section from Poipet to Sisophon is considered very high priority for development by the Cambodian government and is included in ADB's tentative investment pipeline to Cambodia of US$40M for 2004. Estimated Cost (US$M) 54.4 Financing Plan/Sources or Potential Sources Project seeks financing. Implementing Implementation Agencies Schedule Ministry of Public Works and Transport of Cambodia Issues and Constraints ADB technical assistance to Cambodia to formulate a transport sector strategy will reexamine the economic/financial viability of the rail system in Cambodia. GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR page 13 Program/Project Description, Scope and Status b Phnom Penh-Ho Chi Minh City Feasibility studies have been undertaken, including a study of the SKRL commissioned by ASEAN. Construction of the 255-km railway line is important to completing the SKRL. c Phnom PenhSihanoukville The project rehabilitates the railway line from Phnom Penh to Sihanoukville, where a 40% increase in freight volume handled has been noted in the last five years. The project supports the railway link between Cambodia and Thailand and is considered a priority by the Cambodian government. The Cambodian government has made a formal request to the Japanese government in late 2000 for assistance to rehabilitate the railway line. 6 Water Transport Development Components a New Phnom Penh Port The existing port has been Development Project rehabilitated, financed by a grant aid of US$32M from the Government of Japan. World Bank has financed the rehabilitation of the two floating berths, repaired two dredges, and provided equipment and facilities amounting to US$1.6M. A new port, originally planned for construction along the Mekong River at Chrouychangwar, anticipated increased cargo that did not materialize. Most cargo tended to Estimated Cost (US$M) Financing Plan/Sources or Potential Sources 489.4 Project seeks financing. To be estimated Project seeks financing To be estimated Project seeks financing Implementing Implementation Agencies Schedule Ministry of Public Works and Transport of Cambodia Issues and Constraints ADB technical assistance to Cambodia to formulate a transport sector strategy will reexamine the economic/financial viability of the rail system in Cambodia. ADB technical assistance to Cambodia will formulate a transport sector strategy and reexamine the economic and financial viability of the rail system in Cambodia. ADB technical assistance to Cambodia to formulate a transport sector strategy is assessing issues and options in the port subsector in Cambodia. GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR page 14 Program/Project b Sihanoukville Port Development Project c Thi Vai-Vung Tau Port System Development Project Description, Scope and Status Estimated Cost (US$M) arrive and exit through Sihanoukville Port instead. The plan to construct a new port at Phnom Penh has thus been deferred with the planned expansion and rehabilitation of Sihanoukville Port. The project will improve the existing 41.0 port and includes dredging, facility repair, and equipment procurement. A masterplan and feasibility study financed by JICA has been formulated to develop the port of Sihanoukville. The Government of Japan has provided a soft loan for the expansion of the port. Construction started in April 2002 and is expected to be completed by the end of 2005. Considering long-term constraints on 160.0 expanding the Saigon Port, the for Cai Mep, Government of Viet Nam has and proposed developing a Thi Vai-Vung 80.0 Tau port system. This would serve for Thi Vai in primarily Vietnamese traffic, but the first could also cater to traffic to and from phase up to eastern Cambodia. A port 2010.0 development study is being jointly conducted by the Vietnamese Ministry of Transport and Japanese International Cooperation Agency (JICA), with proposals to develop two ports, namely, Thi Vai and Cai Mep. Based on the midterm report, two new ports in the Vung Tau area are proposed for development to meet economic growth targets up to 2010. The development of two 50,000 deadweight tons (dwt) container Financing Plan/Sources or Potential Sources Implementing Implementation Agencies Schedule Government of Japan Ministry of Public Works and Transport of Cambodia and the Sihanoukville Port Authority The project is expected to be completed in 2005. Project seeks financing. Ministry of Transport of Viet Nam Construction of berths are planned to commence in 2004. Issues and Constraints ADB technical assistance to Cambodia to formulate a transport sector strategy is assessing port subsector issues and options in Cambodia. GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR page 15 Program/Project 7 8 9 10 Description, Scope and Status berths and two 50,000 dwt general cargo berths are recommended for Cai Mep and Thi Vai, respectively. d Construction of Marine The project will focus on collection Fishing Port and distribution of fish obtained from marine fishing areas to wholesalers and exporters. The port facility will improve data collection on fisheries products. A feasibility study of the project has been completed under the auspices of JICA. Cross-Border Facilitation in the Movement of Goods and People (see flagship initiative on Facilitating Cross-Border Trade and Investment) Human Resource Development for the Transport Sector Components Project may be included as components of the transport projects included in this Corridor. a Assessment of personnel capability for the transport sector b Preparation of a human resource development (HRD) plan c Conduct of training and workshops Development of Electric Power Grid (see flagship initiative on Regional Power Interconnection and Power Trade Arrangements) Promotion of Regional Energy Cooperation Components a Ayuthaya-Sakeo-Poipet Project will develop a connecting Gas Pipeline Feasibility network from Maptaphut to Poipet via Study Nakhon, Nayok, Prachinburi and Sakaeo. Estimated Cost (US$M) Financing Plan/Sources or Potential Sources 14.0 Discussions are underway with JICA for possible financing. 56.0 IDR Implementing Implementation Agencies Schedule Dept of Fisheries, Ministry of Agriculture, Forestry, and Fisheries Electricity Generating Authority of Thailand (EGAT) 2003-2005 2010-2020 Issues and Constraints GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR page 16 Program/Project Description, Scope and Status b MaptaphutChanthaburi- Koh Kong Gas Pipeline Feasibility Study 11 Project will link networks of gas pipelines from Yanado to Ratchaburi, Bangkok, Map Ta Phut, Trat and Koh Kong (approximate route distance: 290 km). Telecommunications Backbone Development (see flagship initiative on Telecommunications and Information and Communications Technology) Mekong Tourism Development (see flagship initiative on GMS Tourism Development ) 13 Thai-Cambodian Economic Cooperation Components a Thai-Cambodia Joint Thailand and Cambodia have agreed Development Study for to develop a common framework for Economic Cooperation economic cooperation. Financed by (TCJDS) the Thai government, the ThaiCambodia Joint Development Study (TCJDS) promotes cooperation between the two countries in the short, medium, and long term. The study covers five key sectors: infrastructure, agro-industry and fisheries, light manufacturing and industry, tourism, and trade, and recommends four recurrent programs, 21 feasibility studies, and 19 investment projects. b Feasibility Studies b.1 Study on The project is considered a high Environmental Impact priority as the marine waters of from Coastal Fishery Cambodia are relatively undisturbed Promotion and marine fish stock is considered to have great economic and ecological significance. b.2 Study of Stung Cambodia and Thailand have agreed Menam Hydropower to undertake a prefeasibility study of Project the project. Estimated Cost (US$M) Financing Plan/Sources or Potential Sources 65.0 IDR Implementing Implementation Agencies Schedule EGAT Issues and Constraints 2010-2020 12 Thai government financed the TCJDS. The joint development study has been completed. 6.9 IDR Ministry of Agriculture Fisheries and Forestry of Cambodia 2002-2005 3.5 IDR Electricity Generating Authority (EGA) 2002-2005 The Thai government will provide technical assistance for the conduct of a feasibility study and joint development of the four projects. Estimated budget requirement under the plan is US$809,777, see b3-b6 below. GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR page 17 Program/Project b.3 Study on Establishment of Wholesale/Export Market in Cambodia b.4 Feasibility Study on the Establishment of an Industrial Estate in Koh Kong, Cambodia b.5 Thailand-Cambodia Tourism Investment and Marketing Promotion b.6 Field Crop Production Enhancement Project Description, Scope and Status Estimated Cost (US$M) The study will focus on market potential and opportunities for goods in wholesale/export market in Cambodia, and involves technical analysis to set up the market system. The study will focus on the joint production industry, and seek mutual benefits through effective resource sharing and the idea of a common production economy. This will accommodate the private sector's ability to systematically implement activities on trade, investment, production, and tourism, based on the potential and competitive advantages of the area. The project is expected to enhance cooperation in tourism investment and sales promotion activities, encourage private sector investment in tourism infrastructure, and increase tourism investment potentials for Cambodian operators, and build a tourism investment network for Cambodian and Thai investors. The project will assist Cambodia improve its cash crop farming and production (e.g., in soybean, maize, and caster bean, etc.) and will focus on technical assistance, transfer of production technologies, management of farm products, and promotion of joint venture investment. 0.1 0.2 Financing Plan/Sources or Potential Sources Implementing Implementation Agencies Schedule of Thailand Thai government Thai Ministry of Commerce, Department of Business Commerce Thai government Industrial Estate Authority of Thailand Issues and Constraints 2002-2003 Budget submitted for approval in 2002. 2002-2003 Proposed for budget approval 0.1 Thai government Tourism Authority of Thailand 2002-2003 Proposed for budget approval 0.4 Thai government Thai Ministry of Agriculture and Cooperatives, and the Office of Agricultural Economics 2002-2003 Proposed for budget approval GMS Flagship Initiative SOUTHERN ECONOMIC CORRIDOR page 18 Program/Project Description, Scope and Status In the initial stage, emphasis will be on production of cash crops as identified in the Agreement for Local Consumption. The succeeding stage will emphasize the promotion of commercial standard production base in Cambodia to meet its demand for agro-processing industries in the future. Estimated Cost (US$M) Financing Plan/Sources or Potential Sources Implementing Implementation Agencies Schedule Issues and Constraints