ANNEX 2

INDICATIVE INVESTMENT AND IMPLEMENTATION PLAN

1. Design Criteria

1. The main challenge for the SDD strategy is to craft an investment plan that will be implemented for the benefit of Asia’s millions of actual and potential smallholder dairy operators, and the consumers they supply; and to action the strategy for use in country situations. At this stage it is only feasible to draft an outline that focuses on immediate activities, some of which stakeholders have committed to. The detailed investment programme will be finalised towards the end of 2008 and will depend on the interest of individual Governments and the appeal of the strategy to investors from the private sector, regional and sub-regional organizations such as ASEAN, SAARC and the International Financing Institutions (IFIs), Regional Financing Institutions (RFIs) and International Agencies.

2. The foundation of the indicative Investment and Implementation Plan (IIP) is based on the SDD Strategy. For practical reasons common design criteria are used for framing its components. A ten year timeframe is adopted spanning 2009 to 2018, though some activities will start immediately in 2008. SDD involves investments in livestock and dairy chain infrastructure, which take time to achieve critical mass, especially for new entrants, who may have to borrow capital to build their enterprises. The IIP is divided into regional and country level sub-programmes, which will be implemented in parallel for optimum impact. A dual track approach will be used with immediate and longer-term interventions. While the IIP has been reviewed and adopted by the Chiang Mai workshop delegates, it will be necessary to develop the proposed investments into detailed, fully costed project proposals in collaboration with potential investment partners. An immediate action plan covering this process for the remainder of 2008 is set out in annex 1.

3. In essence the SDD Strategy and the IIP must be practical, bankable and actionable; it must be a roadmap to enable localized, targeted and tailored investment approaches.

2. Main components

2.1 Sub-programme 1: Regional Investment and Implementation Programme

4. The Regional IIP-1 consists in the main of interventions for immediate implementation to support the preparation of country level activities (IIP-2) and includes the following components. The indicative budget is US$ 10 million.

IIP-1.1: DairyAsia Knowledge Centre and Information Network
(could be combined with IIP-1.2 and IIP-1.3)²⁴

IIP-1.2: SDD Regional Centre Project
(could be combined with IIP-1.1 and IIP-1.3)

IIP-1.3: Dairy Asian Association (DAA) Project
(could be combined with IIP-1.1 and IIP-1.2)

IIP-1.4: Greenhouse Gas Emissions and SDD Project

IIP-1.5: Unidentified Projects:

2.2 Sub-programme 2: Country Investment and Implementation Programme

5. The country level IIP-2 will depend to some extent on the finalisation of the IIP-1 sub-programme and on the interest of the IFIs/RFIs and regional trading blocks, e.g. ASEAN, SAARC, Governments, International/Bilateral Development Agencies and the private sector in actioning and financing the strategy at regional and national level. The indicative budget is US$ 240 million. The IIP-2 will include,inter alia, the following components:

IIP-2.1: Rapid Smallholder Milk Production Productivity and Quality Improvement Project

IIP-2.2: Enhancing nutrition and livelihoods through school milk programmes linked to smallholder dairy operators

IIP-2.4: Smallholder Dairy Competiveness and Markets Access Country Level Projects
(could be combined with IIP-1.1, IIP-1.2 and IIP-1.3)

IIP-2.5: Expansion of activities related to Dairy Policy Development and Smallholder Dairy Competiveness/ Markets Access Country Level Projects

IIP-2.6: Unidentified Projects

2.3 IIP Summary and Timeframe

6. The IIP is summarised below and outlined in more detail in annex 2.

* Funding agreed in principle

2.4 Monitoring and Evaluation

7. Implementation of the Asia SDD Strategy will initially be guided and monitored by an APHCA Asia Dairy Task Force, facilitated by FAO and other involved organizations operating in the region. Later, as movement builds for SDD in Asia, the task will be taken over by the proposed DAA. The Task Force would initially be funded by APHCA (first three years), then by the proposed CFC/FAO pilot regional project (years four and five) and thereafter by the DAA. Task Force members are drawn from a broad constituency of public, private and NGO SDD stakeholders who attended the Chiang Mai workshop as indicated below, who have signified their willingness to participate. The Chair will be elected by members for two-year periods.

8. Membership is intentionally limited to streamline meeting business and, to the extent possible, is gender-balanced. However, the option is kept to co-opt additional members with specialised expertise on an ad-hoc basis as and when needed. Outline terms of reference for the Task Force are:

• Guide and harmonise all regional IIPs and projects implemented under the SDD strategy at the regional level, including the preparation of annual workplans for the proposed Chiang Mai based Regional SDD Centre.
• Source and channel funding for SDD and the DAA.
• Ensure the widest possible gender-balanced participation of all SDD stakeholders at country level by setting up, where appropriate, SDD working groups under the lead national dairy institution.
• Review all substantives reports and documents prepared under the SDD IIP.
• Meet at least once a year at the proposed Chiang Mai Regional SDD Centre to review progress and approve annual workplans for the SDD IIP and the Centre.

9. In addition to the standard performance monitoring and evaluation built into each IIP programme/project, FAO and APHCA will develop an M&E system, based on the strategy logframe (annex 3), to assess the overall performance and impact of the strategy and the IIP. A mid-term review of the IIP will be carried out during year four to review progress to determine the scope in interventions for the remaining IIP period.