30%

- Kom Reang, Phnom Preuk and Sampovloon districts.

- Cropping Techniques : Ministry of Agriculture, Forestry and Fisheries.

- Credit Management : Rural Development Bank

- Aid Farmers Association

- Processing agricultural product (Drying processing kiln : 20t/h)

- Create jobs opportunity

- Maintains the corn price at the similar cost in Thailand.

Micro-Finance and Small & Medium Enterprise Inte gration Project in Malay

Samdech Hun Sen Vision : " Transforming The Former Battle Field to Agricultural Products & Agro Industry Development Region “

Micro Finance serves the poor farmers in Malay district for maize

Sesame crops harvest

Financial support for Small & Medium Enterprise In Malay district

Drying processing kiln installation in Malay

Crops Storage for Domestic Consumption / Exporting

Vision :

" Transforming The Former Hot Battle Field into The Central Agricultural Products & Agro Industry Development Region by using Micro-Finance services and Small & Medium Enterprises Integration mechanism ", this is the vision of Samdech Hun Sen, Prime Minister of the Royal Government of Cambodia.

Objectives :

To create job opportunity, increase the living standard of the poor and prevent the lost of value adding in exporting the raw agricultural products and reduce the illegal immigration into Thailand to contribute development in the national economy and against poverty.

Target areas :

Five Districts, one in Bantey Meanchey and four in Battambang province, located at the northwest country, close to the Cambodia-Thailand border.

Project duration :

Five years, started from year 2004 to year 2008

Executive agencies :

1. Aid Farmers Association
2. Seilanithih limited
3. Northwest Development Association

Technical assistance :

1. Ministry of Agriculture, Forestry and Fishery (MAFF), PSU of ADESS (Funded by IFAD)
2. Rural Development Bank (RDB)

Input :

a. Technical input

1. MAFF, PSU, ADESS provides agricultural technical training to people in the target area.
2. RBD provides training on credit management, and financial management to executive agencies.
3. P. C group provides marketing training course.

Total project cost is amount of USD 1.5 million was provided by RDB loan:

1. Micro-finance: 70% of the total project cost
2. Small & Medium enterprise: 30% of the total project cost

Output :

1. Expects around 2,300 of the poor families that will get micro-finance services.
2. Insuring processing of the raw agricultural products in the target area with machinery, it can save the value adding.
3. Insuring proper storage of the raw and finished agricultural products for future domestic consumption as well as export to other countries at competitive market price.
4. Create the jobs opportunity and reduce illegal immigration into Thailand.
5. To stimulate national economic growths.

Lesson learned in past year :

1- The environment of competitive market price of raw agricultural products was created.

2- Prevent and reduce the illegal immigration to find the jobs in Thailand.

3- Turnover of the poor increases two times, in average total turnover per family around USD 900.00, higher than other districts.

4- Micro-finance services are successful in the past years, with repayment rate around 98%/year.

Constraints :

1. Natural disaster
2. Lack of compromise between concerning institutions and non-confidential of international donors.
3. Lack of loan fund for expanding in the target area.

Under this project the RDB is adjudged winner ADFIAP Award 2006 in category 3 "SME Development"