Lao People's Democratic Republic 56928 Operational Costs of Trade-Related Sanitary and Phytosanitary Activities The World Bank East Asia and Pacific Region Poverty Reduction and Economic Management Sector Department Lao People`s Democratic Republic Operational Costs of Trade-Related Sanitary and Phytosanitary Activities An assessment undertaken with resources from the Trade Development Facility Multi Donor Trust Fund The World Bank East Asia and Pacific Region Poverty Reduction and Economic Management Sector Department Poverty Reduction and Economic Management East Asia and Pacific Region The World Bank Washington, D.C. July 2010 This report is a product of the staff of The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978-750-8400, fax 978-750-4470, www.copyright.com. Contents Foreword Acknowledgments Acronyms and abbreviations Executive Summary ......................................................................................................................... i I. Introduction ................................................................................................................................. 1 II. Scope and Methodology ............................................................................................................. 6 III. Issues and Estimates of Costs of Laboratories and Testing .................................................... 10 IV. Operational Costs of Food Safety Tasks of Ministry of Health ............................................. 15 V. Operational Costs of Plant Health and Related Food Safety Tasks of Ministry of Agriculture and Forestry .................................................................................................................................. 21 VI. Operational Costs of Animal Health and Related Food Safety Tasks of Ministry of Agriculture and Forestry ............................................................................................................... 25 VII. Summary and Conclusions .................................................................................................... 30 Annex A. Estimates of Operational Costs of Equipment and Laboratories ................................. 35 Annex B. Testing Fees in Thai and Vietnamese Laboratories ...................................................... 39 Annex C. Estimations and Data for Food Safety .......................................................................... 42 Annex D. Estimations and Data for Plant Health ......................................................................... 49 Annex E. Estimations and Data for Animal Health ...................................................................... 52 Annex F. Lao PDR Data on Expenditures for Agriculture and Health Sectors ............................ 61 Annex G. List of Interviewees ...................................................................................................... 62 References ..................................................................................................................................... 64 Foreword The 2009 World Bank report Lao PDR Sanitary and Phytosanitary Measures: Enhancing Trade, Food Safety and Agricultural Health expressed concern over the insufficient funding by the Government of Lao PDR to effectively operate a viable sanitary and phytosanitary (SPS) system. Despite donor grants and lending actively supporting capacity building and investments in equipment and facilities, operational expenses in this area are needed to make sustainable use of newly created capacities. This report, Operational Costs of Trade-Related Sanitary and Phytosanitary Activities, presents the work of a World Bank team, to assist the Lao PDR Government in making assessments of the minimum levels of public funding needed to carry out basic SPS tasks -- performing surveillance, testing, diagnostics and risk analysis. The work involved close coordination with leading Lao Government officials in the areas of food safety, plant health, and animal health. As part of this study report, Lao Government staff and the World Bank study team visited SPS agencies in Thailand and Vietnam to gather information and learn from their experiences. Preliminary findings were presented in a workshop held in Vientiane on December 14, 2009, for senior officials and technical staff of the offices involved in food safety, plant health and animal health. A second workshop was held on February 8, 2010, to review a draft of this report. The work was carried out by Cornelis van der Meer and Laura Ignacio under the supervision of Richard Record, task team leader for the World Bank, with the assistance of Konesawang Nghardsaysone, and with important contributions from laboratory specialists Maria Beug-Deeb, Upali Samarajewa and Tom Deeb. Overall guidance was provided by Mathew Verghis and Genevičve Boyreau. This assessment was made possible through resources provided via the Lao PDR Trade Development Facility, a multi donor trust fund financed by Australia and the European Union, and administered by the World Bank. Acknowledgments The authors gratefully acknowledge the cooperation of officials and technical staff of the Lao Ministries of Agriculture and Forestry, and Health -- in particular, Mrs. Douangchay Malyvanh; Mr. Khamtanh Thadavong; and Plant Protection Center staff, Dr. Phengphet Vorachit, Dr. Phouth Inthavong, Dr. Phouvong Phommachanh, and Mr. Sisouphanh Nakasene for providing data and information; and to Mr. Phaydy Phiaxaysarakham, Mr. Khamtanh Thadavong, Ms. Pheophanh Soysouvanh, Ms. Pinkham Vongphachanh, Mrs. Sivilay Naphayvong, Mrs. Douangchay Malyvanh, Mr. Thongchai Sayasak, and Dr. Phengphet Vorachit for their participation in the study visits to Bangkok and Hanoi. Acknowledgment is also extended to officials and staff of Thai and Vietnamese SPS agencies, in particular, Mr. Surapol Yinasawapun (plant health), Dr. Tipvon Parinyasiri (food safety), Dr. Laddawalaya Ratanakorn and Mrs. Tharntip Rugchat (animal health) in Thailand, and Mr. Dam Quoc Tru (plant health) and Mr. Dam Xuan Thanh (animal health) in Vietnam, for their advice and invaluable assistance in coordinating meetings with their respective staff. Material in Chapter III and Annex A was prepared in close cooperation with Maria Beug-Deeb, Upaili Samarajewa, and Tom Deeb, independent consultants. Special thanks are extended to World Bank administrative support staff, Ms. Chanthaly Chanthavisouk (Vientiane) and Ms. Ruangrong Thongampai (Bangkok). The authors also thank Cees de Haan, Ulrich Schmitt, Jaakko Korpela, Genevičve Boyreau, Digby Gascoigne, Keang- Yeang Lum, Eric Mckenzie and Trevor Crosby for providing comments on earlier drafts. Acronyms and abbreviations AAS Atomic absorption spectroscopy AOAC Association of Analytical Communities or AOAC International ASEAN Association of Southeast Asian Nations AusAID Australian Agency for International Development CSF Classical swine fever DAFO District Agriculture and Forestry Office DOA Department of Agriculture DOLF Department of Livestock and Fisheries ELISA Enzyme-linked immunosorbent assay FAO Food and Agriculture Organization FDD Food and Drug Department FDQCC Food and Drug Quality Control Center FMD Foot-and-mouth disease GC Gas chromatography GC­MS Gas chromatography­mass spectrometry GMS Greater Mekong Subregion GT Gobthong Thoophom HPAI Highly pathogenic avian influenza HPD Hygiene and Prevention Department HPLC High performance liquid chromatography ICP Inductive coupled plasma (for simultaneous multi-element detection) ISO International Organization for Standardization Lao PDR Lao People`s Democratic Republic LC-MS Liquid chromatography-mass spectrometry MAF Ministry of Agriculture and Forestry MOH Ministry of Health MTC Ministry of Transportation and Communication NAHC National Animal Health Center NCLE National Center Laboratory for Epidemiology NFI/BAM National Food Institute/Bacteriological Analytical Manual NZAID New Zealand`s International Aid and Development Agency OIE Office International des Epizooties, World Organization for Animal Health PAFO Provincial Agriculture and Forestry Office PCR Polymerase chain reaction PPC Plant Protection Center PRRS Porcine Reproductive and Respiratory Syndrome RPBR Rapid Bioassay of Pesticide Residues RT­PCR Reverse transcriptase­polymerase chain reaction SPS Sanitary and phytosanitary UNIDO United Nations Industrial Development Organization WHO World Health Organization WTO World Trade Organization Executive Summary The 2006 Sanitary and Phytosanitary (SPS) Action Plan for the Lao People`s Democratic Republic (PDR) recommends that improved SPS capacities are needed (a) to gain and maintain market access, and (b) to better protect consumers, crops, and livestock against trade-related hazards. The Government of Lao PDR has been making efforts to build SPS capacities with external support, but major capacity gaps remain in surveillance and diagnostic services. Adding to the urgency for capacity building in surveillance and diagnostic services is the growing trend in market access that requires information about the pest, disease, and food safety situation in the exporting country. Information obtained from surveillance is also needed as input to policymaking on SPS measures, risk management, and priority setting. Expanding capacities can only be done selectively and gradually because of the small size of the country and its limited resources. And operational funds are critical to make sustainable use of newly created capacities. Recommendations This study report provides recommendations for expanding surveillance, testing, and diagnostic activities for the next 5 to 7 years, and assesses minimum levels of additional public funding needed. Investments Strengthened capacities should take into consideration demand and available cost- effective alternatives to several lumpy investments. Testing and diagnostic facilities and equipment require significant investments. Also, there are requirements to the efficient and sustainable use of advanced testing equipment such as sufficient volume of tests (at least 500 per year), availability of chemicals, continuous supply of power and air conditioning, regular maintenance and calibration, and participation in a proficiency testing scheme. However, in some areas there is not yet enough demand to justify investment in expensive testing equipment. A short- and medium-term alternative is to make use of rapid test kits and to subcontract laboratories abroad for confirmation testing. Institutions A consolidated national SPS laboratory would provide economies of scale and is -- at least from a technical point of view -- the preferable solution for building laboratory capacities in Lao PDR. If it is not feasible to consolidate laboratories, the next best alternative would be to design a clear delineation of functions with allocation of lead roles and specializations for each of the institutions. Lao PDR is too small to justify parallel capacities in most areas of food safety testing. The three institutions in place -- Food and Drug Quality Control Center (FDQCC,) National Animal Health Center (NAHC), and Plant Protection Center (PPC) -- have commonalities in various areas of surveillance and testing, such as pesticides, veterinary drugs, mycotoxins, and heavy metals. The following proposed division of responsibilities would allow for the use of each other`s expertise and capacities: i FDQCC would lead on food microbiology and food chemistry, including pesticide residues, and mycotoxins; PPC would lead on heavy metals and composition and quality of pesticides; and NAHC would lead on composition and quality of veterinary drugs and vaccines, residues of veterinary drugs in food, zoonoses in and microbiological safety of unprocessed animal products. The above institutional arrangements also call for coordinating responsibilities and procedures, and sharing information. There should be clear procedures, especially among agencies from different ministries, on submission of samples, provision of certificates, and cost recovery mechanisms. Funding The amount of additional public operational funding needed to conduct the recommended volume of activities is about US$800,000 each year. It is recommended to expand the amount of funding incrementally in five annual steps of US$160,000. The table below presents the breakdown of the estimated operational costs for recommended activities for the next five years. Summary of estimated operational costs (US$) FDQCC (Food safety) 170,200 Surveillance 23,200 Microbiology 27,000 Pesticides residues, Variant 2 72,000 Mycotoxins, Variant 2 14,500 Heavy metals 17,000 Food-borne diseases 15,000 Data management 1,500 PPC (Plant health and food safety) 156,600 Pest surveillance 57,000 Purchased pest identification 5,000 Post-entry quarantine 3,000 Pesticide residues 22,600 Pesticide formulations 52,500 Heavy metals (soil and fertilizer) 15,000 Data management 1,500 NAHC (Animal health and food safety) 706,000 Surveillance 164,000 Diagnostic testing 310,000 Veterinary drug residues 25,000 Drug and vaccine quality 35,000 Animal and fish products (microbiology and zoonoses) 10,000 Safety of animal feed 60,000 Readiness, variant 2: vaccines 100,000 Data management 2,000 Total SPS 1,032,800 ii Total (additional) operational budget needed to carry out recommended expanded activities amount to about US$1 million a year (about 8.5 billion Kip). More than half (68 percent) is for animal health (and related food safety and human health protection), primarily for animal health surveillance and diagnostics, of which half is for highly pathogenic avian influenza (HPAI). The present operational budgets allocated from Government resources are estimated to be in the range of US$50,000 annually. In some cases, temporary small budgets are available from foreign-funded projects; the main exception is the sizable external funding for HPAI, which is currently about US$237,000 for surveillance and testing. If external HPAI funding continues in the medium term, an additional public fund of about US$800,000 each year would be needed to achieve the recommended volume of activities. It is recommended to reach that level by expanding funding in five annual increases of $160,000. Priority activities for near-future initiation include the use of rapid test kits and plant pest and disease surveillance. Subsequently, other active and passive surveillance activities can be gradually stepped up. A rolling annual plan would guide priority in allocations. Key Requisites to Recommendations There are requirements that will be critical to successfully expanding operational budgets: (1) Institutional and legislative framework. Expanding capacities in surveillance, testing, and diagnostics assumes that proper institutional and legislative frameworks are already or are being put in place already with support from the Trade Development Facility and other projects. (2) Volume of work. The volume of sample collection should be sufficient for the building and maintaining of proficiencies of staff and utilization of laboratory capacities. The current volume of samples does not justify further addition of equipment, staff, and accreditation. (3) Equipment and facilities. In the medium and long terms, purchase of equipment, facilities, and structural adjustments may be needed to broaden the range of testing parameters. Equipment. The following equipment purchases may be necessary; alternatives would be to subcontract with specialized laboratories in Thailand or Vietnam: (a) Department of Agriculture (DOA) may need to invest in high performance liquid chromatography (HPLC) for testing composition of pesticides; (b) DOA may need atomic absorption spectroscopy (AAS) for testing of heavy metals; and, (c) NAHC may need equipment for testing veterinary drugs, antibiotics and growth enhancers. iii Facilities. Quarantine work on seed and other plant material requires the establishment of a post-entry quarantine laboratory at PPC. (4) Human resources. In all areas there is a dearth of trained specialists, inspectors, and laboratory technicians to conduct surveillance, collect samples, and to carry out diagnosis and tests. This will necessitate a well-planned gradual increase of human resource capacities. (5) Information management. Information management should be performed by setting up a database in each of the three institutional areas and employing a staff dedicated to data management and analysis. Proper management, dissemination, and use of the information will help assure maximum benefits from surveillance, testing, and diagnostics. iv I. Introduction 1. Information derived from sanitary and phytosanitary (SPS) surveillance and monitoring activities is an increasingly important requirement for market access and a crucial input for risk management and policymaking. Implementation of these activities however needs more than initial capital investments and training provided by external sources. Sustainability requires public funding of substantial recurrent costs. 2. This study report was undertaken with resources provided by the Trade Development Facility multi donor trust fund to assist the Government of the Lao People`s Democratic Republic (PDR) in assessing minimum levels of public operational funding needed to expand surveillance and diagnostic activities related to the management of SPS risks in Lao PDR. It provides policy options and recommendations for expanding the scope of current SPS activities, and assessments of additional operational costs needed for sustainably performing the recommended expanded activities. Structure of the Report 3. This introductory chapter describes SPS activities in general and the growth of SPS capacities in Lao PDR. Chapter II describes the scope and methodology of the study. Chapter III presents a basic discussion of issues and broad estimates of costs of laboratories and testing. Chapters IV-VI discuss present activities undertaken in the areas of food safety, plant health, and animal health, respectively, together with recommendations for their expansion and corresponding cost estimates. Chapter VII presents a summary of recommendations and conclusions. Annexes present the following supporting material: Annex A, Estimates of operational costs of equipment and laboratories; Annex B, Testing fees in Thai and Vietnamese laboratories; Annex C, Estimations and data for food safety; Annex D, Estimations and data for plant heath, Annex E, Estimations and data for animal health; Annex F, Lao PDR data on expenditures for agriculture and health sectors; and Annex G, List of interviewees. Sanitary and Phytosanitary Activities 4. The purpose of SPS measures is to protect human, animal, and plant life or health. From the import-related perspective, SPS measures aim to protect against the introduction and spread of pests, diseases, and harmful chemicals in conjunction with the entry of imported agricultural and food products. Likewise, SPS measures benefit and promote domestic production, and agricultural and food export potentials by monitoring and controlling pests, diseases, and harmful chemicals along the entire food supply chain. 5. Well-enforced SPS measures comprise the following actions: Protect against entry and spread of health hazards; Detect and, subsequently, control health hazards already within the country; and 1 Certify agricultural and food exports for compliance with requirements of importing countries. 6. Crucial attributes of SPS management needed to support the enforcement of SPS measures include: Legislation and institutional frameworks to effectively enforce and implement measures; Diagnostics and testing to support detection and certification activities; Quarantine facilities to support border protection; and Capacity for analysis to properly evaluate levels of risks to (a) inform decision and policymaking; and (b) provide scientific basis for SPS measures on imports and to validate SPS measures of exporting countries. Surveillance and Monitoring 7. Surveillance and monitoring activities are especially important for countries with long porous borders, such as Lao PDR, where border controls are not the most effective or cost- efficient method to manage agricultural and food hazards. Surveillance and monitoring activities rely heavily on capable and efficient diagnostic laboratory support (at home or abroad). These should have capacities to perform physical, microbiological, and chemical analyses, which require significant investments for facilities, equipment and supplies, and human resources. 8. A well-equipped surveillance and monitoring operation will help detect and subsequently help control potential hazards. The operation will provide data and information on pests, diseases, and harmful substances that will make significant contribution to the following: Guiding policy makers on adopting appropriate measures, priority setting, and resource allocation; Providing input for risk analysis; and Complying with requirements of trading partners for information on the pests and diseases situation. 9. Surveillance in food safety. Food surveillance is the continuous monitoring of the food supply to ensure consumers are not exposed to components in foods, such as chemical contaminants or biological hazards, which pose a risk to health.1 Hazards to food safety include pathogens such as bacteria, viruses, and parasites; chemical residues (for example, residues of agro-chemicals such as pesticides, veterinary drugs, and mycotoxins); and filth. 10. An effective national food safety program is characterized by its integration with the public health system, thereby establishing a link between food contamination and food-borne 1 Food and Nutrition Paper No. 76 (FAO 2003). 2 diseases.2 Public health laboratories that examine epidemiological aspects of food-borne diseases are generally outside the food safety agencies, but cooperation and information sharing between epidemiologists and microbiologists are necessary. 11. Surveillance in plant health. Basic to establishing phytosanitary measures is pest surveillance -- gathering of information on the pest situation in a country or region within a country. Pest information is increasingly important for market access. More and more, trading partners like China and OECD countries ask Lao PDR for provision of data on the pest situation. Non-compliance can block market access and adds to the risks faced by investors. 12. Countries must also protect their ecosystems by monitoring agricultural inputs such as seeds and planting materials. With growing commercialization, the entry risks from damaging pests through seed and planting material are also increasing. Also, sub-grade and forbidden agrochemical products and formulations might enter from neighboring countries or be illegally made or used by domestic blenders. Preventive activities include regulating entry of seeds and planting materials,3 surveillance and control of agro-chemicals used in production such as pesticides4 and fertilizers, and monitoring of chemical residues in agro-produce. 13. Surveillance in animal health. The main task of veterinary services is the prevention and control of animal and fish diseases that impact on domestic income (livestock losses), human health (zoonoses), and trade. Animal health authorities carry out this responsibility by surveillance and monitoring of animal diseases to enable early detection of diseases, and by interventions in cases of outbreaks and detection. 14. In recent years there has been strengthened emphasis on the relation of animal health management and the protection of public health. The Office International des Episooties (OIE), in cooperation with the Codex Alimentarius Commission, promotes the role of the veterinary services in food safety and elaborates on its dual responsibility -- monitoring and gathering epidemiological information (inspection of animals, both aquatic and terrestrial) and ensuring safety of animal products. 15. Likewise, in cooperation with the private sector, veterinary authorities have a role in enabling market access by ensuring safety and safe use of veterinary drugs and antimicrobials in animal husbandry. Animal feed is another component of the food chain that has implications on both animal health and public health, therefore its safety and safe use should be monitored accordingly. 2 The term food-borne diseases generally refers to diseases caused by pathogens that are commonly food-borne although diseases may result from other vectors such as water. Diarrheal diseases, for example, may be food- borne, water-borne, or transmitted person to person. 3 Guidelines for a Phytosanitary Import Regulatory System, International Standards for Phytosanitary Measures No. 20 (IPPC 2004). 4 In Lao PDR, a pesticide survey conducted by FAO Integrated Pest Management (March 2009) in Sayabouly and Xiengkhouang provinces found that WHO-rated Class 1b pesticides (highly hazardous technical grade active ingredients of pesticides) are still available in shops and being used in vegetable production. 3 Building SPS capacities in Lao PDR 16. The 2006 Diagnostic Trade Integration Study for Lao PDR5 recommends that improved capacities for SPS measures are needed (a) to gain and maintain market access and (b) to better protect consumers, crops, and livestock against trade-related hazards. This was followed by successive work on the SPS capacities of Lao PDR: The 2006 SPS Action Plan provides an initial assessment of public and private SPS capacities and specific recommendations for various aspects of management of SPS activities in Lao PDR.6 In 2008, the Standards and Trade Development Facility, in collaboration with the Aid for Trade initiative, undertook regional consultations that included Greater Mekong Subregion (GMS) countries of Cambodia, Lao PDR, and Vietnam.7 The work examined the supply and receipt of SPS-related technical cooperation with the aim to improve delivery of donor assistance. A 2009 World Bank report8 implemented one of the recommendations of the Lao PDR SPS Action Plan to study SPS requirements faced by Lao agricultural exports and imports from both the Lao Government and trading partners. The study draws attention to the growing requirement of trading partners for information on the pest and disease situation as a requisite for trade, further underscoring the need for Lao PDR to continue improving its SPS capacity. The report recommends an assessment of the minimum public funding needed to sustainably fund SPS capacities. A 2010 Asian Development Bank (ADB) SPS Action Plan proposes capacity building and cooperation among the GMS countries as part of the ADB trade and transport facilitation initiatives program.9 Some of the proposed actions pertain to surveillance and diagnostic activities in food safety, plant health, and animal health. 17. The Government of Lao PDR has been making efforts to build SPS capacities. External assistance has been provided for investment and training. A multi-donor trust fund created the Trade Development Facility to help implement the Integrated Framework Action Matrix. One component, with an allocation of US$1.6 million, supports SPS capacity building on formulation of legislations and regulations, and training and application of risk management principles. 18. However, it is not sufficient for donors to provide, for example, initial laboratory equipment and training. There are considerable operational costs to SPS activities, particularly in surveillance, testing, and diagnostic activities. Improvements will only be sustainable if the level 5 Building Export Competitiveness in Laos (World Bank 2006a). 6 Lao PDR Sanitary and Phytosanitary Standards Management: Action Plan for Capacity Building (World Bank 2006b). 7 Greater Mekong Subregion is comprised of Cambodia, Lao PDR, Myanmar, Thailand, Vietnam and the Yunnan Province Guangxi Autonomous Region of the People`s Republic of China. 8 Lao People's Democratic Republic: Sanitary and Phytosanitary Measures ­ Enhancing Trade, Food Safety, and Agricultural Health (World Bank 2009). 9 Action Plan 2010-2015 for Improved SPS Handling in GMS Cross-Border Trade (ADB 2010). 4 of public funding is adequate to make use of the new investments and skills created through donor assistance. Inadequate public funding limits absorptive capacity for external support. An obstacle for this is that Government decisionmakers have little knowledge about the tasks to be performed and the costs involved. This study report seeks to provide guidance on expanding the current scope of SPS surveillance and diagnostic activities, and assessment of pertinent costs. 5 II. Scope and Methodology 19. The study focuses on surveillance and diagnostic activities that include the collection of samples, diagnostics of pests and diseases, and testing of safety of agricultural and food products and agricultural inputs. Inasmuch as the focus is more on gathering of information and less on adoption of good practice, or enforcement of and compliance with regulations, this study does not include inspection of food factories, marketplaces, slaughterhouses, and other establishments, although some samples needed could be collected during such inspection activities. The establishment of databases of information gathered from surveillance and monitoring activities is likewise included. Scope -- Surveillance and diagnostic activities 20. Primary sanitary and phytosanitary (SPS) institutions are situated in the Ministries of Health (MOH) and Agriculture and Forestry (MAF). The Department of Agriculture (DOA) and the Department of Livestock and Fisheries (DOLF) of MAF are responsible for plant and animal health, respectively. Food safety, however, is a shared responsibility among various offices of both MOH and MAF. Under the MOH, the Food and Drug Department (FDD) is responsible for processed or semi-processed food products and shares the responsibility for the management of food-borne diseases with the MOH Hygiene and Prevention Department (HPD). The proper use and safe levels of pesticides in food products, safe formulations of fertilizers and pesticides and the presence of heavy metals and other pollutants in soils and fertilizers are shared concerns of the FDD with the DOA. Likewise, safe use and levels of veterinary drug residues, proper formulation of veterinary drugs and animal feed, and safety of animal and fish products are food safety concerns shared with the DOLF. 21. The following agencies provide support to relevant surveillance and monitoring activities: Food and Drug Quality Control Center (FDQCC) under FDD; National Center Laboratory for Epidemiology (NCLE) under HPD; Plant Protection Center (PPC) under DOA; and National Animal Health Center (NAHC) under DOLF. 22. The following specific activities fall under the jurisdictions of these departments and laboratories: FDQCC/FDD and NCLE/HPD: General surveillance of processed food products in markets - Tests for microbiological pathogens, and - Tests for chemical contaminants such as heavy metals, mycotoxins, and pesticide residues; Surveillance of food-borne diseases; Readiness for outbreaks of food-related illnesses; and Data and information management on food safety. 6 PPC/DOA: Crop pest surveillance and diagnostics; Pest identification; Post-entry quarantine of seed and plant materials; Surveillance of pesticide residues in unprocessed and primary processed agricultural products; Surveillance of quality and formulation of pesticides in markets and on farms; Surveillance for heavy metals in soils and fertilizers; Readiness for outbreaks of plant pests; and Data and information management of safety of plant products, pesticides and fertilizers. NAHC/DOLF: Surveillance of OIE-listed animal diseases such as foot and mouth disease (FMD), classical swine fever (CSF) and highly pathogenic avian influenza (HPAI); Diagnostic testing of OIE-listed animal diseases; Surveillance and testing of safety of animal and fish products; Surveillance of animal and fish products for residues of veterinary drugs; Surveillance of quality and formulation of veterinary drugs in markets and farms; Surveillance of safety of animal feed; Readiness for outbreaks of animal and zoonotic diseases through vaccination programs of the major contagious diseases;10 and Data and information management of animal health, animal products, feed, and veterinary drugs. Cost items 23. A core assumption of the study is that fundamental SPS capacities such as legislations and institutions have been or are being put in place with support of public funding from donors. The same assumption is made for capital investments for diagnostic and testing activities -- specifically that facilities such as laboratories and certain equipment are already or will soon be available and operational. Moreover, general expenditure items that are part of regular public budget for laboratories such as utilities, and salaries of staff are not included. 24. In summary, assessments in this study report do not include the following expenditures: Capital expenditures on buildings, laboratories, testing, and diagnostic equipment; Upgrade of laboratory facilities; Complementary appliances such as air-conditioning or a back-up generator; Investment expenditures in data and specimen storage systems; Depreciation of equipment and building; Utilities such as water, power, gas, telephone, and internet; Glassware, instruments, and non-disposable laboratory supplies; and Salaries of staff. 10 Discussion in Chapter VI differentiates between diseases that may be financed by the public and private sectors. 7 25. The premise is that the level of existing surveillance activities is small in all three areas of food safety, plant health, and animal health. This study assesses the additional operational costs that would be incurred if surveillance activities (and necessary diagnostics and testing) would be expanded in the areas recommended in the next chapters. 26. These additional operational costs primarily consist of the following: Transportation and purchasing costs for sample collection; Costs of chemical reagents and solvents; Costs of outsourcing of tests; Calibration and maintenance of laboratory equipment; Maintenance of information systems; Participation in proficiency testing schemes and training; and Cost of accreditation services for diagnostic activities. 27. Consistency with the annual cycle. The assessment recognizes and incorporates the annual budget cycle of activities consisting of: (a) Design of monitoring and surveillance programs (including sampling design); (b) Collection of samples; (c) Subsequent diagnostics, testing, and analysis of samples; and (d) Storage of data in systems, analysis, and reporting of findings. 28. Consolidated budgets. The assessment does not include consolidated SPS budgets for two basic reasons. The departments and agencies have no financial autonomy, and many items are paid on different administrative levels (such as salaries, maintenance of buildings, special budgets); and the departments and specialized agencies have many other major tasks that are not SPS related. Moreover, depreciation is not accounted for under Government accounting practices. Given the amount of work involved, estimation of consolidated SPS budgets was beyond the scope of this study; instead it was decided to focus on the needed expansion of operational costs of departments and pertinent specialized agencies. 29. Time frame. Expanding capacities can only be done selectively and gradually because of the small size of Lao PDR, as well as its limited resources and limited absorptive capacities. The focus is on basic capacities that can be achieved in the next 5 to 7 years. This excludes the creation of pest-free and disease-free areas and compartmentalization since it presumes qualitative and quantitative capacities that are beyond what can realistically be put in place in this period. It also excludes for this period the deployment of sophisticated equipment for expensive specialized testing and advanced diagnostics. Methodology 30. Assessments were made based on information from three sources: Estimates by technical staff from the SPS agencies in Lao PDR. Technical staff of the different SPS agencies identified pertinent cost items and their respective prices for the various 8 activities they are carrying out.11 The main limitation for this information is that for many areas, especially modern laboratory methods, no capacities exist in Lao PDR from which data can be derived. Also, at the time of the interviews technical staff had no readily available price information for a number of chemicals and other inputs, and some robust approximations are made. Experiences of Thailand and Vietnam. Teams of Lao specialists and World Bank consultants and staff visited Thailand and Vietnam with the aim to observe some of the SPS capacities in these countries, to learn from experiences in funding their system, and to collect information on some cost elements, especially laboratory tests. The level of laboratory fees for testing in Thailand and Vietnam (see Annex B) is important for calculating cost of testing in Lao PDR. First, the fees provide an indication of cost levels in well-established laboratories in the region, and, second, purchasing these tests for fees can be an alternative to conducting tests by laboratories of Lao PDR agencies. Estimates of the use of sophisticated laboratory equipment. In close cooperation with international laboratory specialists (Maria Beug-Deeb, Upali Samarajewa, and Tom Deeb, independent consultants), information was collected from different sources to arrive at stylized estimates for the costs of use of expensive laboratory equipment (see Chapter III and Annex A). 11 Information and estimates are presented in Annexes C, D, and E. 9 III. Issues and Estimates of Costs of Laboratories and Testing 31. Analyses of microbiological and chemical substances are undertaken using either rapid test kits or conventional laboratory tests. Rapid test kits 32. Rapid test kits with independent evaluation of their efficacy are available for many biological, chemical, medical, and veterinary tests. The function of test kits is to indicate the presence or absence of a certain contamination or substance in a sample. In case of a positive result, a conventional laboratory analysis may be required to measure the exact concentration of the tested substance. The kits can be employed at field sites, in markets, and laboratories. 33. These kits are sold in packages that contain 10-50 units or more, of which individual costs are usually in the range of US$7-10. Some tests cost very little -- about US$3 per test for pesticides residue test kits from Thailand and Taiwan used by the Plant Protection Center (PPC) in Lao PDR. Rapid tests for aflatoxin, vomitoxin, and zearalenone are about US$15 per test.12 Actual costs for the user may be 20-50 percent higher because of cost of shipping, spoilage, and the short shelf life of the rapid test kits. Quantitative testing 34. Conventional chemical testing of food, feed, and agro-chemicals is still partly done by so-called wet laboratory methods; but nowadays it is mostly carried out by modern equipment. High performance liquid chromatography (HPLC), gas chromatography (GC), and atomic absorption spectroscopy (AAS) equipment are most commonly used for testing pesticides, veterinary drugs, heavy metals, and mycotoxins. These types of methods can perform most of the tests needed by regulators and industries. They are available in robust and more advanced versions, for low and high throughput. But their common characteristics have the following requirements: Uninterrupted electricity supply and an air-conditioned environment; Calibration and maintenance by specialists; and Expensive chemicals and standards. 35. These equipment are built for high volume of tests; when used for low volume workloads, the costs of chemicals per test increase and skills of staff erode. Although each piece of fitted equipment using these methods can be used for many purposes, there are important trade-offs for changing the set-up of equipment for different kinds of tests. It involves costs, requires experienced staff, and can result in damage to the equipment and false negatives or false positives if not done correctly. Therefore, multiple testing is not recommended in many developing-country situations where staff may be poorly skilled. In most cases where there are skilled staff, the volume of samples is sufficient to have similar equipment running in parallel for different tests. 12 Information provided by Tom Deeb. 10 36. The actual operational cost will depend on the type of equipment, the tests performed, and the cost level of the country. Countries with so-called low-cost environment have good local services available for maintenance and calibration and have competitive markets for supplies. In contrast, high-cost environment countries may have to fly in specialists since local options are not available or more expensive. Also, their consumables are 25 percent or more expensive than in industrialized countries. For example, cost levels in many areas in India tend to be low; and in poor ASEAN countries and Africa, they appear to be relatively high. In some poor countries costs of some facilities may be prohibitively high. Cost estimates 37. Assessments for this study report were made in cooperation with laboratory specialists. Details of derivations are presented in Annex A. This study assumes a workload of 500 tests as the minimum number of tests in a year to maintain proficiency of staff and to make efficient use of advanced equipment and facilities. Also, in practice one sample may be subjected to more than one test but for a simplified estimation of costs, the study assumes one sample to correspond to one test unless otherwise indicated. Operational cost for equipment 38. Estimates were made of stylized operational costs of a piece of equipment (with a workload of 500 tests) using testing methods that require low levels of chemicals, for low- and high-cost environments (see Annex A, Table A-1). The estimated operational cost per test is between US$50 and $62.13 Operational costs for a chemical food laboratory 39. Stylized assessment for a high-cost environment was used to assess the minimum operational cost for a chemical food laboratory that can test for mycotoxins, and residues of veterinary drugs, pesticides and metals (see Annex A, Table A-2). The total operational cost for such a laboratory -- with 5 HPLCs, 1 gas chromatography­mass spectrometry (GC­MS), and 1 inductive coupled plasma­mass spectrometry (ICP­MS) -- would be about US$270,000. For laboratories in a low-cost environment, the minimum operational cost might be about US$220,000. 40. Varying sizes of laboratories. The food chemistry laboratory indicated above may not be the best choice for small less-developed countries that are starting to build their laboratory capacity. The number of tests that can be funded for different areas of food safety is usually much lower than a minimum workload of 500. Much depends on requirements for export and domestic health risks that Governments are willing to address. In such cases, a few priority areas might warrant expensive equipment while using rapid test kits and sending a limited number of samples abroad for verification could work for other areas. With increased income and exports, demands for laboratory services could increase and more funding for more testing areas could become available. Countries with larger populations can in any case afford to establish bigger laboratories than smaller countries. Operational costs for small, medium, and large laboratories 13 If charges for labor, overhead, utilities, and depreciation are added, the costs would probably be similar as the fees charged in Thailand and Vietnam for pesticides residues (about US$100 per test). 11 were estimated to be US$78,000; US$217,000; and a maximum of US$630,000, respectively (see Annex A, Table A-4). Agrochemicals testing 41. Testing quality and composition of pesticides and veterinary drugs requires the same kind of equipment as testing for residues in food. Although there are differences in sample preparation and standards used because of differences in concentration, the operational cost would be about the same as for residue testing (US$50­62 per test at a workload of 500 tests per year). 42. It is important to note that because of risk of cross-contamination there are major obstacles to using the same facilities for testing residues and for testing composition of agrochemicals. Risks of cross-contamination are highest in the sample preparation phase, which therefore requires separate rooms. The risks of cross-contamination in the testing phase can be mitigated at very low sample volumes, provided that special precautions are taken. Although it is technically possible to use the same equipment for the tests, the advantages are doubtful and may not balance the risks related to cross-contamination, the higher maintenance requirements, and possible damage to the equipment. When cross-contamination does occur, the impact of false positive results would not only damage the laboratory's reputation but could also lead to removal of valuable shipments and damage trade. If only limited equipment is available, a better option would be to share equipment for different trace methods. At high sample volumes of testing, utilizing separate sets of equipment is the superior solution; and at low volumes, outsourcing to a bigger laboratory (abroad) may be a safer and cheaper option. Chemicals in soils and water 43. Soils and water polluted by toxic chemicals, such as heavy metals from mining and industrial waste, can form a risk for contamination of the food chains. Provided that cross- contamination is prevented, testing for most metals can be done by the same AAS equipment used for testing residues in food. Costs for both tests would be comparable. Food microbiology testing 44. Basic microbiology testing for food safety and related human health requires less expensive equipment compared to chemical testing. Only the more advanced microbiology laboratories will employ expensive equipment. Hence, the operational costs for basic testing laboratories are relatively low and will depend on the number of parameters a laboratory can test. Although 500 tests per year should be considered a minimum for maintaining proficiency of staff, the minimum number of tests per parameter will be less critical for food microbiology testing than for chemical food testing with expensive equipment. This means that a microbiology laboratory with a smaller number of parameters might operate sustainably at an annual minimal operational cost of US$90,000­100,000 (See Annex A, Table A-5). 45. Microbiological contaminants in soils and water. Microbiological laboratories can test for microbiological contaminations in soil and water at costs similar to tests on food. 12 Veterinary testing 46. Veterinary testing includes a large array of chemical, microbiological, viral, and parasitological tests. Rapid test kits are widely used for screening. Diagnostic tests can be relatively cheap for areas of microbiology and expensive for virology. Most veterinary tests in developing countries are done for and by the public sector only, with exceptions for big commercial poultry and pig farms. 47. Cost of testing for highly pathogenic avian influenza (HPAI or H5N1) is high. The cost of consumables for polymerase chain reaction (PCR) and enzyme-linked immunosorbent assay (ELISA) for a small laboratory is estimated at about US$150,000.14 If costs for calibration, proficiency testing, training, and literature are added, the annual cost would be about US$175,000. For the diagnostic veterinary laboratory in Vietnam, the fees of tests on Newcastle`s Disease, HPAI, and foot-and-mouth disease (FMD) using ELISA and reverse transcriptase polymerase chain reaction (RT-PCR) range between US$20 and US$35 (see Annex B, Table B-2). Testing for antibodies and bacteria is generally cheap. Testing animal feed 48. Testing the nutritional composition of feed is practiced to protect farmers and fish growers against fraudulent practices of traders. This is not part of SPS. Testing the chemical and biological safety of feed, however, is important for assuring food safety and animal health. Most of the chemical and microbiological parameters to be analyzed are the same as for food safety. These include contamination with pesticides, veterinary drugs, heavy metals, and mycotoxins. Since there are in most cases no serious risks for cross-contamination at the testing phase, the same equipment can be used as for food; and it is recommended that in countries with low sample volumes no duplicative equipment should be installed for food and feed. The costs of tests will be the same as for food testing. However, at the sample preparation, risks of cross- contamination may need to be controlled by using separate rooms. 49. Tests for some zoonotic feed safety parameters, however, may be conducted at veterinary laboratories that have the necessary expertise. Similarly, testing for safety of medicated feed might be done by the laboratory specialized in composition of veterinary drugs. Safety of animal products 50. Most safety parameters of animal products can be analyzed in chemical and microbiology food laboratories since they are the same and there is no risk of cross-contamination. At low sample volumes it is therefore important to use capacities in the food safety laboratories. The costs will be the same as for other food testing. 51. Tests for some zoonoses, however, may better be taken care of by veterinary laboratories (or in some cases public health laboratories). 14 Communication by Tom Deeb, T&M Associates, and estimation by World Bank in Lao PDR. 13 Accreditation 52. Accreditation of laboratories by the international standard ISO 17025 is a common requirement for most products for recognition of tests in international commercial and government-to-government relations. In developing countries there is little demand for accreditation in domestic markets and traditional export markets, and public and private clients usually do not want to pay for the cost. Recognized accreditation bodies provide the accreditation for those parameters for which standards have been met. The annual cost for subscription for accreditation might add another US$1,000 per parameter to the total cost of the tests depending on the number of parameters. More basic in quality management of laboratories is to have an annual budget for training and literature, and to participate in an international scheme for proficiency testing. In particular, through participation in proficiency testing, staff and management of a laboratory can check their own performance at a cost of about US$1 per test. At the present situation with low volume of tests and clients with low requirements, accreditation is not so urgent, all the more reason because exporters have easy access to accredited laboratories in neighboring countries or countries of destination. 14 IV. Operational Costs of Food Safety Tasks of Ministry of Health 53. Food safety management in Lao PDR is a shared task of various ministries. The Ministries of Health (MOH) and Agriculture and Forestry (MAF) are responsible for monitoring of processed food and unprocessed agricultural products, respectively. Within the Ministry of Health, two departments, with corresponding laboratories, are involved in food safety activities: the Food and Drug Department (FDD) with its Food and Drug Quality Control Center (FDQCC), and the Hygiene and Prevention Department (HPD) with its National Center Laboratory for Epidemiology (NCLE). Current activities 54. Food safety. Monitoring of food products for contaminants or chemical residues consists of regulatory inspections of food establishments by MOH, including testing food sample for purposes of certification or registration. The FDQCC also issues health certificates for exported foods. Its Food Laboratory Division performs limited microbiological and chemical tests on food products, mostly on bottled water, as a regulatory requirement. The safety of unprocessed animal products, including fish, is under the jurisdiction of the Department of Livestock and Fisheries (DOLF) and will be discussed in Chapter VI. 55. In 2008, of the 456 tests done on food products, more than half (64 percent) were on drinking water (Table 4.1): Table 4.1. Tests on food products by FDQCC in 2008 Drinking water 292 Other drinks 56 Salt 23 Bakery products 18 Raw fish 11 Other food 56 Total 456 Source: FDQCC 56. The FDQCC has the capacity to carry out microbiological tests for total bacteria count, salmonella spp, shigella spp, vibrio cholerae, vibrio parahaemolyticus, e. coli, coliform, staphylococcus aureus, and yeast and molds. However, with the low volume of tests at FDQCC, proficiency suffers. At present, the FDQCC is able to perform chemical tests for formaldehyde, borax (qualitative), and food coloring (qualitative). Testing for heavy metals, mostly done for bottled water, requires the use of atomic absorption spectroscopy (AAS), which the laboratory does not have, therefore samples are sent to the Water Supply Laboratory of the Ministry of Transportation and Communication (MTC). The FDQCC has no capacity for virology. 57. Food-borne diseases. The HPD is responsible for the surveillance and clinical analysis of food-borne illnesses. Food-borne disease surveillance is passive and syndromic. Hospitals and outpatient centers report incidents of illnesses with symptoms of food-borne diseases (mainly 15 diarrheal). Further tests and information gathering to determine cause are performed only in cases of outbreaks. 58. The NCLE performs epidemiological tests on human samples sent by seven hospitals in the Vientiane area. The tests are done not as part of a regular surveillance system but as requested by the hospitals (and, in certain cases, by private individuals who seek their assistance). The NCLE performs tests on samples from provinces only when there are outbreaks or upon requests of assistance by provincial hospitals. At present, NCLE does tests on salmonella spp, shigella spp, e.coli 0157, vibrio cholerae, and staphylococcus. 15 The weekly reports on tests performed by NCLE are submitted to HPD; also monthly and yearly summaries are prepared. 59. The FDQCC and NCLE use guidelines of the Ministry of Finance for their fees.16 Fees for microbiological tests range from 70,000 Kip (US$8) to 200,000 Kip (US$24) depending on the type of microorganism. The guidelines list fees for tests for which FDQCC only recently acquired basic capacities, which include 800,000 Kip (US$94) for mycotoxins and1,500,000 Kip (US$176) for pesticide residues using gas chromatography (GC). Table C-1 (Annex C) shows fees charged by FDQCC to the private sector for the various tests. 60. For human specimens, NCLE charges 30,000 Kip (US$4) for a test on stool, urine, sputum, etc. If the test requires a culture, there is an additional fee of 135,000 Kip (US$16). 61. Donor support. Several donor projects provide support. The United Nations Industrial Development Organization (UNIDO) is assisting in the accreditation of the microbiology laboratory. Among the components of the NZAID/FAO/WHO-supported Food Safety Project, the preparation of the National Food Safety Action Plan 2008-2013 will provide guidelines to implement strategies of the National Food Safety Policy. It includes a Contaminant/Residue Monitoring Program to be implemented in the medium to long term. Also, capacities for active surveillance in the event of an outbreak are being put in place. A standard operating procedure is being drafted on the coordination between the NCLE and FDQCC in the event of an outbreak, and questionnaires are being prepared for patient interviews. In 2009 FAO assisted in the training for pesticide and mycotoxin residue testing. However, there is no significant workload for these tests yet. Recommended activities and estimated costs 62. This section describes recommended activities and the estimated costs, which are summarized at the end of the section in Table 4.2. 63. Monitoring and surveillance. There is need to collect more systematic information on food hazards in the country. A relatively cheap way is to carry out surveillance by using rapid test kits for common hazards such as illegal use of disinfectants, microbial spoilage, mycotoxins, and pesticides. To monitor for pesticide residues, the Plant Protection Center (PPC) of the Department of Agriculture (DOA) aims to conduct 1,200 tests on fruit and vegetables (discussed 15 MOH gathers data on hepatitis (viral) occurrences, but these are not usually considered as food-borne. 16 Decree of the President of Lao PDR on the Promulgation of the Charges and Fees Law (amended in 2008) (Ministry of Finance, Decree No. 03/PO, November 19, 2008). 16 in Chapter V). The FDQCC could aim at 1,300 tests at an average estimated cost of US$10 for a total cost of US$13,000.17 The focus should be guided by proven and perceived risks. 64. Positive samples could be sent to FDQCC and other laboratories for confirmative testing for which about US$5,000 may be needed in additional cost for tests described below. Moreover, while applying rapid tests in the field, it could be efficient to collect samples for conventional tests on some other parameters, such as in the area of microbiology, parasites, and chemical residues. The additional cost of collecting samples would also be incorporated into the total expenditure; US$4 per sample may cover costs of travel, transport, and purchase of products for a total of US$5,200 (for 1,300 samples). 65. Microbiology testing. In order to build proficiency and make accreditation sustainable, the number of food samples should be increased to 500, excluding tests on bottled water. Assuming that, in general, 5 microbiological tests are being done per sample at a cost of US$10 per test,18 a total budget of US$25,000 (500 samples at US$50 each) is needed. The cost of collecting samples would be about US$2,000 (500 samples at US$4 each). 66. Pesticide residue testing The proposed creation of pesticide residue testing, which FAO is supporting, will have major implications on operational budget requirement. There are 4 groups of pesticides: organo-phosphate, organo-chlorine, synthetic pyrethroid and carbamates.19 The tests for the first 3 groups make use of gas chromatography (GC) and the carbamates group makes use of high performance liquid chromatography (HPLC), which FDQCC acquired at the end of 2009.20 Taking into consideration the fees charged in Thailand and Vietnam (Annex B, Table B-1), and the fee in the FDQCC price list (Table C-1), it can be assumed that the operational cost for testing for residues on the GC for any of the first 3 groups of pesticides would be about US$100 per sample,21 and about US$180 per sample for any 2 groups.22 Testing 500 samples for carbamates at the HPLC would also cost about US$100 per sample. Assuming that on the GC testing 250 samples are tested for one group and another 250 for two groups, the total cost for the GC would be about US$70,000, and the cost of 500 samples for the HPLC would be about US$50,000.23 Moreover, in this case probably about 750 samples every year would be required at an additional cost of about US$3,000. 67. However, it is uncertain whether this level of funding is achievable in the near future. An alternative, intermediate solution would be to keep the capacities limited in the short term by having 500 GC tests (for pyrethroids, organo-phosphate and organo-chlorine groups) for which 17 The market price for test kits can range from US$3 per test for pesticides to US$15 per test for aflatoxin (Chapter III). 18 Author`s estimate based on NCLE data (Part E, Annex C). 19 Some herbicides may also be identified with the present capacities for pesticide residue testing. 20 An informal estimate by FAO project consultant provides the costs of reagents to test 500 samples for the various groups. The costs range from US$4,925 to US$28,905 (Table C-4). The estimation does not include cost for calibration and maintenance of GC and HPLC, additional calibration of balances, costs of selective participation in proficiency testing schemes, and continued need for training and literature. 21 Fee based on Thailand fees (Table B-1, Annex B), which are US$91, US$106 and US$121. 22 Based on fee of US$152 for 2 groups provided by Central Laboratory Thailand (Table B-1, Annex B) and Lao fees (Table C-1, Annex C), which is US$176 for organo-chlorine and organo-phosphate. 23 Given the consideration of testing half the samples for 1 group and the other half for 2 groups, 750 samples may be required to keep proficiency for each test. 17 the costs would be US$70,000 for testing and US$2,000 for sample collection. If the number of samples that can be funded drops significantly below 500, it would be better to send samples to Thailand or Vietnam for testing. 68. Given the low level of fruit and vegetable exports and the low demand for tests domestically, separate testing facilities for pesticide residues at both FDD and DOA might not be justified. Thus, an arrangement is needed between the FDA (food safety) and DOA (agricultural products), especially if tests are for unprocessed agricultural exports that would require DOA certification. 69. Mycotoxins testing Public health authorities would benefit from better information about health hazards from mycotoxins. The need for mycotoxin testing by Lao agribusinesses is mixed. Coffee exporters test in Vietnam or Thailand and do not face any major problems. The maize industry, on the other hand, faces problems with mycotoxins in exporting to neighboring countries, and mycotoxins in maize also cause domestic health risks through animal feed and by direct consumption. Peanuts and other such products may also have mycotoxin contaminations. Although both MOH and MAF have interest in testing for mycotoxins, the volume of tests is likely to be low and duplication of capacities is not justifiable. Testing can be done by using rapid test kits (about US$15) and conventional HPLC tests, which would require dual use of the new HPLC at FDQCC for pesticides and mycotoxin residues, or another HPLC for mycotoxins. Many specialists recommend separate HPLC equipment for pesticide residues and mycotoxins because the regular change of the set-up of the HPLC is technically difficult and would increase the risk of breakdown of equipment and cross-contamination. 70. Depending on the desired level of sophistication, fee lists from Thailand and Vietnam suggest that the cost per test would be about US$50 for robust testing and over US$100 for testing more detailed mycotoxin parameters (Annex B, Table B-1). The annual operational cost would be at least US$25,000 for 500 tests. An initial cost-effective method would be to do 500 rapid tests at US$15 and to send 100 samples to Vietnam or Thailand for further analysis. This would cost about US$7,500 in addition to US$5,000 per year, or in total US$12,500. The collection costs would add another US$2,000 to the 500 sample tests. 71. Heavy metals testing. Once Lao PDR sets up a system of monitoring and surveillance of food, it will need to add testing for heavy metals and a few other elements. At present FDQCC subcontracts testing of heavy metals in drinking water to the MTC laboratory. Problems with heavy metals can occur in processed and unprocessed food, feed, water, fertilizer, and soils. Hence, both MAF and MOH have interest in tests in this area. If the demand from these sources goes beyond MTC capacity, it may be best to acquire one additional AAS at PPC for multiple use (provided that experts will endorse such a solution) since there will not be enough volume to justify such equipment at both laboratories.24 72. Fees available from Vietnam and Thailand (Annex B, Table B-1) suggest that the cost per test parameter would be about US$30, which is US$15,000 per year for 500 samples. In addition, an operational budget for collecting 500 samples is estimated to be about US$2,000. Given the 24 See section on Surveillance of chemical contaminants in soils and fertilizers, Chapter V. 18 likely low volume of AAS tests on food, approximately 200 per year, it may be most cost- effective to subcontract to MTC, PPC, or other food laboratories in Thailand or Vietnam. 73. Food-borne diseases. The surveillance of food-borne diseases should be increased to 300 human specimens per year, which at an estimated cost of US$50 per sample would cost US$15,000 (Part E, Annex C). 74. Readiness for an outbreak. If a food-borne disease outbreak occurs, timely diagnostic tests would be critical for an immediate response to determine causes and to advise the public. It requires staff with experience and basic supplies of chemicals for regular testing. In addition, modest budgets are needed for travel and collecting samples. The present situation lacks readiness. A small regulation-driven workload, which is paid through fees by the private sector, and the lack of regular funds for FDQCC does not allow for building and maintaining capacities that could effectively be mobilized in the event of an outbreak of a food-related illness. A sufficient regular workload of monitoring, surveillance and testing will increase readiness for emergency responses in the event of emergencies and outbreaks. Part of the increased capacity and budget for sampling and testing could be earmarked for outbreaks if needed. 75. Management of data and information. Food safety information is an important output from surveillance and monitoring activities on food and food-borne diseases. Data collected should be put in a database and analyzed to evaluate levels and sources of risks (a qualitative risk profile) that would, in turn, contribute to policymaking on control measures and responses, and help authorities determine priorities. The cost of staff time and setting up of an information system, as indicated in the methodology (Chapter II), is not part of this study`s reporting. However, maintenance of database and software would require an operational budget estimated at US$1,500 per year. Table 4.2. Summary of costs for recommended activities at FDQCC and NCLE US$ General surveillance (1,300 samples) 23,200 Rapid tests 13,000 Sample collection 5,200 Confirmation testing 5,000 Microbiological tests (500 samples) 27,000 Tests 25,000 Sample collection 2,000 Pesticide residues - Variant 1 123,000 Quantitative tests 120,000 Sample collection 3,000 Pesticide residues - Variant 2 72,000 Quantitative tests 70,000 Sample collection 2,000 Mycotoxins - Variant 1 27,000 Quantitative tests (500 samples) 25,000 Sample collection (500 samples) 2,000 Mycotoxins - Variant 2 14,500 Rapid tests (500 samples) 7,500 Quantitative tests (100 samples) 5,000 Sample collection (500 samples) 2,000 Heavy metals (250 samples) 17,000 19 US$ Tests 15,000 Sample collection 2,000 Food-borne diseases (300 samples) 15,000 Data management 1,500 Total (with Variant 2 recommendations) 170,200 20 V. Operational Costs of Plant Health and Related Food Safety Tasks of Ministry of Agriculture and Forestry 76. The Department of Agriculture serves as the National Plant Protection Organization for Lao PDR, and its Plant Quarantine Division is responsible for phytosanitary measures. Its Regulatory Division is responsible for control of pesticides. The Plant Protection Center (PPC) provides technical support through the conduct of pest surveys, and diagnostic and testing activities. The PPC houses the plant pest and disease reference collection and also has responsibilities for testing quality and safe use of pesticides and fertilizers, which is important for food safety in the food supply chains. Current activities Pest surveillance 77. Pest surveillance in Lao PDR is an ad hoc activity, carried out as part of donor assistance. AusAID supports recent surveillance activities for mango, and the NZAID Phytosanitary Capacity-Building Project for maize and cabbage. Pest identification 78. Identification of pests is necessary for the development of pest lists (list of pests endemic in the country). Pests should be identified by order, by family, by genus, and by species. Pest lists require identification by species. Lao plant health authorities can generally identify only to genus level; identification by species is more difficult. 79. For pest identification, PPC staff consults with experts, especially those from Landcare Research, an environmental research organization in New Zealand. This free consultation is part of the NZAID phytosanitary project. Support for identification from Thai colleagues has not yet been sought. Pesticide residue testing 80. The PPC does pesticide residue testing with rapid detection test kits, such as the Gobthong Thoophom (GT) test kit from Thailand or the rapid bioassay of pesticide residues (RPBR) test kit from Taiwan, for donor-funded projects or upon request of private agribusinesses for safety certification; the charge is about 70,000 Kip (US$8) per sample. In 2008, PPC tested about 150 samples, amounting to revenue of about 10 million Kip (US$1,000). The GT kit comes in packages of 30 tests, costing 600,000 Kip (US$71) or about US$2 per test. The GT kits can be used to test for organo-phosphates and carbamates. Main gaps in capacities 81. Conventional testing capacities for quality of pesticides, residues of pesticides in plant products, mycotoxins, and chemical contaminants in fertilizers and soils are unavailable. The country has no post-entry quarantine for seed, propagation material, and other potentially risky plant products. 21 Recommended activities 82. A summary of costs of the recommended activities is shown at the end of this section in Table 5.1. Pest surveillance 83. Authorities would like the PPC to be able to carry out pest surveillance as part of its regular responsibilities and not as an ad hoc activity. Given the demands of trading partners for acquiring information on the pest situation, this is a high priority. The number of field visits per crop depends on cropping patterns and empirical knowledge of important pests. For crops that grow in both dry and rainy seasons, surveys should be conducted in both seasons. Surveys are carried out in the main cropping areas. 84. Using PPC-provided data for this study, estimates were made of costs to undertake pest surveillance. A big share of surveillance costs are the allowances and travel expenses for plant health staff. Costs, likewise, depend on the type of crop (one-season or two-season crop). Estimated operational costs range from a low 110 million Kip (US$13,000) for a one-season crop involving 5 provinces to a high 494 million Kip (US$58,000) for a two-season crop involving 9 provinces (Annex D, Table D-3). 85. A reasonable task for the coming years would be to plan to carry out 2 one-season crop surveys. One survey would be conducted in 5 provinces and the other in 9 provinces with a budget of about US$42,000. In planning for cases of potential outbreaks, support for risk analysis, market access issues, and verification of previous findings, there should be a contingency budget of US$10,000 for ad hoc surveys. Increased surveillance and diagnostics should be supported by an increased operational budget of US$5,000 for laboratory supplies. Pest identification 86. The PPC staff will do most pest identification routinely during surveys and at the laboratory. There is basic funding for routine diagnostic work, including taxonomy. However, staff will need external support for specimens that they cannot identify. Cost of support for pest identification from independent international centers such as the Center for Agricultural Bioscience International (CABI) will be expensive. Expertise from Australia, China, New Zealand, Thailand, and countries in the region may be less expensive alternatives. Modalities of support could be electronic exchange of images, visits by foreign specialists or visits by PPC staff to laboratories in other countries. An annual budget of US$5,000 (for pests that cannot be identified locally) might be a necessary expense and best managed by DOA and PPC. 87. There is no recommended additional budget for maintenance of the pest and disease specimen collection. Present facilities are operating at reasonable standards; and maintenance costs, primarily for utilities to support humidity and temperature requirements, are low and covered in current basic funding. 22 Post-entry quarantine 88. A post-entry quarantine unit is priority for Lao PDR. Since the expertise needed is in part similar to that of the plant diagnostic laboratory, the unit should be located at the PPC. The staff, which would require a plant pathologist, an entomologist, and a virologist, would conduct testing on perhaps100-200 imported samples per year and need an annual operational budget of US$3,000. Pesticide residue testing 89. Because of the expected low volume of samples and high cost of conventional tests, there is room for only one laboratory in the country to have the capacity and be responsible for the quantitative testing of pesticide residues. Given existing capacities, the FDQCC has the capacity to be the lead agency for quantitative testing of pesticide residues. Depending on the importers` requirement, exporters may choose PPC (use of rapid test kits) or FDQCC (quantitative testing) to conduct tests for compliance;25 although PPC would still have to certify for conformity. 90. The DOA through PPC may want to expand rapid testing activities by conducting its own monitoring of pesticide residues on unprocessed and primary processed products (for example on farms at pre-harvest or in certain markets). It may send positive samples to the FDQCC or to a laboratory in Thailand or Vietnam for confirmation and quantification. To test 1,200 samples would cost about US$3,000 for the test kits and US$4,800 for sample collection (Part B, Annex D). Assuming that DOA wants to send 150 samples to FDQCC for confirmation by conventional testing method, it should have an additional budget of US$100 per sample or in total US$15,000. An arrangement may have to be worked out between FDD and DOA over the issuance of conformity certificates. Also, in the event that PPC would request FDQCC to perform quantitative tests, a cost recovery mechanism might need to be established between the 2 agencies. Surveillance of pesticide formulation 91. Sub-grade and forbidden substances readily circulate in the marketplace. Growers, traders, and consumers would benefit from monitoring and controlling the quality of pesticides available in the market and being used in farms. However, additional HPLC equipment would be needed for testing. And the chemicals needed for the test of pesticide formulation are expensive. There is no cheap option for rapid test kits. Cost of testing would be about US$100 per sample, and 500 samples per year would cost US$50,000. Collecting samples would require travel, transport, and purchase of products in the market. This may boost the cost to another US$5 per sample for a total of US$2,500. Sending samples to a neighboring country could be the more cost-effective option. 25 Experience from other countries suggests that in case the private sector has free choice, main exporters might select laboratories in the country of destination. Similarly for Lao, neighboring countries have excellent laboratories that could be used. 23 Surveillance of chemical contaminants in soils and fertilizers 92. The most important parameters in testing soils and fertilizers for SPS are pollution with toxic metals. Pollution of soils can occur through waste from mining and industries, and sewage. Some fertilizers may have overly high contents of cadmium or other toxic elements. The AAS equipment is the most appropriate for testing. Given the likely intensity of use, the equipment might best be located at PPC where it may also offer tests for heavy metals in feed and food. Assuming that 500 tests would be conducted per year and that the cost per test is US$30 (see Annex B for fees in Thailand and Vietnam), the total cost for testing would be US$15,000. Readiness for an outbreak 93. In the event of an outbreak of plant pests and diseases, it is imperative to have the capacity to confine the spread and minimize adverse impacts on crops. Part of the increased capacity and budget for surveillance and identification could be earmarked for outbreaks if needed. Management of data and information 94. Data and information gathered from surveillance and monitoring activities is needed for DOA policymaking. It should be properly stored in a phytosanitary database and regularly analyzed. Although the set-up of the database and staff needed for data storage and analysis is not included in this study`s assessment, maintenance of databases and software would require additional annual operational budget of US$1,500. Table 5.1. Summary of costs for recommended activities at PPC US$ Pest surveillance 57,000 Two one-season crop surveys 42,000 Ad hoc surveys 10,000 Laboratory supplies 5,000 Pest identification (purchased) 5,000 Post-entry quarantine (100-200 import samples) 3,000 Pesticide residues 22,600 Rapid tests (1,200 samples) 2,800 Sample collection 4,800 Qualitative tests (150 samples) 15,000 Pesticide formulations 52,500 Tests 50,000 Sample collection (500 samples) 2,500 Heavy metals (soils and fertilizers) (500 samples) 15,000 Data management 1,500 Total 156,600 24 VI. Operational Costs of Animal Health and Related Food Safety Tasks of Ministry of Agriculture and Forestry 95. The Department of Livestock and Fisheries (DOLF) is responsible for veterinary services and safety of animal products in Lao PDR. The National Animal Health Center (NAHC) undertakes diagnostic testing. The NAHC also has responsibilities for testing quality and safe use of veterinary drugs and feed, which is important for food safety in the food supply chains. Current activities Animal health surveillance 96. There is active serological surveillance only for the highly pathogenic avian influenza (HPAI). For all the other diseases, clinical (passive) surveillance -- suspected cases showing clinical signs of diseases are reported -- and serological surveillance is done only with outbreaks or when there is a request from provincial authorities to investigate suspected cases. The DOLF relies on information and reports from farmers, veterinary village workers, and provincial livestock officers. (However, often the information comes too late when a number of animals have already been infected, making control more difficult). Samples of suspected cases are taken, tested, and confirmed through NAHC-performed laboratory diagnostic tests. For example, given the significance of HPAI, an average of 10,000 sera, 10,000 swabs, and 300 carcasses are tested in a year, with the cost of chemicals amounting to about US$130,000 (see Annex E, Table E-2), which is largely donor funded.26 Monitoring of animal and fish products 97. There are District Agriculture and Forestry Office (DAFO) livestock staff stationed at slaughterhouses to inspect live animals and meat products. Sick animals are removed from the premises. Meat products are inspected visually, for example, for parasites. If there is visual evidence of disease, the meat products are removed and sent to NAHC for formal tests. There is hardly any control on the safety of fish. 98. The Livestock Product Quality Assurance Unit also tests for safety certification for animal-based products for export, such as salted skin of buffalo and cattle. Laboratory testing capacities of biological and chemical contaminations for meat products are very limited. Testing of animal feed 99. The Animal Feed Laboratory is a unit under the Livestock Farming Technical Standard Control Center of the DOLF. Currently, the laboratory tests for nutrients and chemical compositions of locally produced and imported feed samples (from China, Thailand, and Vietnam). It tests on average 1,100-1,300 samples in a year. 26 There is multi-donor support for HPAI because of its significant threat to the country and region. In Lao PDR, there had been 18 reported outbreaks during 2006-2008 and 2 cases of human fatalities. 25 Main gaps in capacities 100. The DOLF does not have capacities to undertake testing for veterinary drug formulation,27 and for microbiological and chemical contaminants (veterinary drug residues, heavy metals, and mycotoxin) in animal feed and animal products. At present there are no quarantine facilities. Recommended activities 101. In general, early detection of listed animal diseases and rapid response would be beneficial to the country and various stakeholders. However, priorities among stakeholders are not necessarily the same. Neighboring countries want Lao PDR to strengthen its surveillance on priority trans-boundary animal diseases such as HPAI, foot-and-mouth (FMD), and classical swine fever (CSF). Such expanded capacities will also be beneficial to Lao farmers. However, priorities of neighboring countries are not necessarily a priority to all Lao farmers, many of whom may prefer increased help for diseases that affect livelihood income such as hemorrhagic septicemia, fowl cholera, and Newcastle`s disease. Moreover animal health authorities may give special attention to re-occurrence of endemic diseases and the control of the introduction of new diseases such as Porcine Reproductive and Respiratory Syndrome (PRRS). Consequently, actual priority setting for increased surveillance is not easy and depends on many factors. Since increased surveillance capacities can be applied for different diseases, this assessment of operational costs will be partly indifferent to the annual priorities. A summary of costs associated with the following recommended activities is provided in Table 6.1 at end of this section. Animal health surveillance and diagnostics 102. Notwithstanding that surveillance and corresponding diagnostics for the more prevalent diseases (HPAI, FMD, and CSF) are currently being undertaken with significant support from donors,28 it is recommended that a steady budget stream be made available to make sustainable use of capacities. The present budgets are very unevenly distributed. 103. Staff of the NAHC provided estimates of costs of diagnostic activities for the more high- impact diseases for specific number of samples (see Annex E for details). There are also estimates, using varying approaches, of costs to collect serological samples that, to a large extent, include allowances and travel expenses of staff. The cost of surveillance therefore depends on the frequency of surveys, extent of coverage, and the number of samples. HPAI. Estimation for HPAI involves many samples: on average10,000 sera, 10,000 swabs, and 300 carcasses in a year. The cost of consumables, maintenance, and proficiency tests is about US$155,000. Training costs an additional US$56,000. With the surveillance cost of US$82,000,29 the estimated annual budget is US$293,000. 27 The FDQCC does not have such capacities either. 28 The Lao-Australia Animal Health Research Project that provided support to FMD and CSF activities officially ended June 2009. 29 A sampling plan is made by a team of FAO-HPAI and NAHC staff. Ideally, there should be surveys every 3 to 6 months, however surveys depend on availability of budget and donor assistance. 26 FMD and CSF. Assuming 1,000 sera samples, the cost for consumables is about US$26,000. The cost to collect samples, assuming 4 times in a year, is about US$11,000. Two training courses -- for outbreak investigation and sample collection -- cost about US$14,000. The total estimated cost for FMD and CSF is US$51,000. Bacterial diseases. Two scenarios were considered to estimate costs of diagnostic activities for the more damaging bacterial diseases such as hemorrhagic septicemia, anthrax, and Blackleg. A passive surveillance scenario using 20 carcasses and 100 organs has an estimated cost of US$4,000. The active surveillance scenario using 50 carcasses and 500 organs costs US$10,000. 104. If the budget for surveillance and diagnostics for FMD, CSF, and all other listed diseases would be the same as for HPAI -- probably a realistic ambition -- the annual budget would be US$82,000 for surveillance and US$155,000 for diagnostic activities. Safety of animal- and fish-based products 105. Similar to the FDQCC, almost all NAHC-conducted tests on animal-based and fish and meat products are for regulatory private sector safety certification. This capacity should expand to allow for routine tests of animal and fish products for public health concerns. Since the likely number of samples of animal products is small, having parallel investments in expensive equipment at NAHC and FDQCC for testing residues of veterinary drugs, pesticides, mycotoxins, and heavy metals is not justifiable. It is recommended that NAHC takes responsibility for testing zoonoses and microbiological safety of animal products, which would cost perhaps US$10,000; other tests will be the main responsibility of FDQCC. Testing for veterinary drug residues in fish and animal products 106. Testing for residues of veterinary drugs and antibiotics is expensive. Most products require HPLC; other groups require the more expensive ion-pair chromatography method.30 An expensive option would be to invest in HPLC and test 500 samples per year, which would cost about US$35,000 (at US$70 per sample). The less expensive solution would be to use rapid test kits for the main chemical residues and to send part of the samples (about 200) to Thailand or Vietnam. Five-hundred rapid tests would probably cost about US$10,000, including related travel to markets and production sites. The cost of collecting the 500 samples and testing fees abroad would probably be about US$15,000, depending on the parameters. Control of quality of veterinary drugs and vaccines 107. Due to risks of substandard and illegal products being traded and applied, there is need to build capacity for testing quality and composition of veterinary drugs. This requires the same kind of equipment as for testing residues. However, because of risk of cross-contamination, parallel sets of equipment and separate laboratories are recommended. There is no option for using rapid test kits. Whether samples are sent for testing in Thailand or Vietnam or tested by HPLC installed within the country may not make a big difference for a volume of only 500 30 The purchase of an ion-pair chromatography application is not considered at this stage given its high operational cost. 27 samples per year. The ion-pair chromatography method is expensive, making it difficult to justify in this circumstance. Therefore, samples would have to be sent abroad. The total cost would be about US$35,000. At a sample volume lower than 500, testing abroad would be the cheaper option. Monitoring of animal and fish feed 108. The DOLF should have capacity to tests animal and fish feed for biological and chemical contaminants on a regular basis. Safety tests on animal feed are mainly the same as for food. Given the small number of tests that can be expected in the foreseeable future, purchase of expensive equipment will not lead to sustainable use. If precautions are taken to prevent cross- contamination, feed samples can be tested at the FDQCC and PPC for pesticides, mycotoxins, and heavy metals. Alternatively, samples could be sent abroad. Responsibilities of NAHC would be to conduct tests on zoonoses, and medication and hormones used in feed. Some samples may be sent for testing to Thailand or Vietnam. Altogether, testing 300 feed samples for different parameters (pesticides, mycotoxins, heavy metals, pathogens, and veterinary drugs and growth enhancers) could cost up to US$200 per sample, or US$60,000 per year. Prevention and readiness for outbreaks 109. Readiness and quick response should come naturally from staff experienced in surveillance and diagnostics. Effectiveness of veterinary village workers, and district and provincial staff depends on training, incentives, and motivation. Preventive actions and interventions -- vaccination, animal movement controls, additional control measures on animal- based products and animals, and, in some cases, culling and destruction -- are often necessary and sometimes required or expected by other countries. The NAHC staff listed amounts of vaccines for the more important OIE-listed diseases (hemorrhagic septicemia, anthrax, FMD, and CSF) and antibiotics that were actually in stock and the desirable amounts that should be in stock. In line with increased surveillance and needed capacity for response, the total value of stock should increase from about US$65,000 to about US$160,000 (Annex E, Table E-9). Since it is not likely that such a drastic increase can be achieved in the near future, a variant 2 is proposed of US$100,000 for vaccines for OIE-listed diseases only. Vaccines that are due to expire might also be used for preventive purposes in the high-risk pathways. This does not include medication for diseases for which the private sector bears the first responsibility. In cases of outbreaks, the country can, although with delays, get assistance for vaccines from Australia, China, the European Union, FAO, Thailand, Vietnam, and the World Bank. Plans are underway to establish an EU/OIE regional facility for emergency provision of vaccines to be made available in case of outbreaks. Yet, there will nearly always be need for extra allocations from the Ministry of Finance depending on the nature of the outbreak. Quarantine 110. Given the porous borders of the country, permanent public quarantine facilities are likely to have low effect in the foreseeable future. Hence, it is not recommended to draw resources away from surveillance and diagnostic testing for quarantine, with the exception of temporary quarantine in case of outbreaks. However, if there is regular transit of animals, it would be recommended to establish private sector-managed quarantine facilities. 28 Management of data and information. 111. Preparation of data on animal diseases is already part of OIE requirements, although there is room for improvement. Active surveillance would yield greater information on sero-types and pathways of disease spread -- information that would identify and determine levels of risks. Combining this and other information in a well-maintained database would help DOLF develop more effective measures and focus scarce resources on the most serious problems. The annual maintenance of the database and software, given the complexity of the information, is estimated at US$2,000. Table 6.1. Summary of costs for recommended activities at NAHC US$ Animal health surveillance 164,000 HPAI 82,000 Other diseases 82,000 Animal health diagnostic testing 310,000 HPAI 155,000 Other diseases 155,000 Safety of animal and fish products 10,000 (microbiology and zoonoses) Veterinary drug residues 25,000 Rapid tests (500 samples) 10,000 Quantitative tests (200 samples) 15,000 Veterinary drugs and vaccines (500 35,000 samples) Animal feed (300 samples) 60,000 Readiness: Variant 1 vaccines and antibiotics 160,000 Variant 2 vaccines for OIE listed 100,000 diseases only Data management 2,000 Total (with Variant 2 recommendation) 706,000 29 VII. Summary and Conclusions 112. The need for strengthening SPS management capacities was central in the 2006 SPS Action Plan (World Bank 2006b), which was endorsed by the Government of Lao PDR. The plan recommended capacity building for fundamental SPS activities. A follow-up study (World Bank 2009) further assessed SPS capacity constraints in Lao PDR in its trade relations with neighboring countries and ability to protect the country against trade-related health hazards. 113. Started in 2009, the Trade Development Facility is addressing some of the identified capacity gaps, especially legal and regulatory deficiencies (World Bank 2008). Remaining major gaps in capacities are in surveillance, testing, and diagnostic services. Current SPS capacities are insufficient in the following ways: Gaining and maintaining market access by meeting requests of trading partners for information about the pest, disease, and food safety situation and, if requested, providing adequate assurances about safety of products. Requirements from trading partners increasingly form constraints to market access. Protecting adequately the people, crops, and livestock against trade-related hazards. 114. These are areas requiring significant investment and operational budgets that have so far not been quantified. With its recommendations and conclusions, this study aims to fill that gap by offering estimates for additional operational costs needed to make good use of the enhanced capacities. It is fair to expect that in the coming years donors will be willing to invest in capacity, training, and institutional strengthening. However, until now there has been no comprehensive assessment of the operating costs for enhanced capacities at reasonable ambition levels for Lao PDR . Principles and consideration Timeframe and limitations 115. The focus is on basic capacities that can be achieved in the next five to seven years. This timeframe excludes the creation of pest-free and disease-free areas and compartmentalization since it presumes qualitative and quantitative capacities that are beyond what can realistically be in place in this period. It also excludes for this period the deployment of sophisticated equipment for expensive specialist tests and advanced diagnostics. Public good 116. Activities that can be carried out independently for a direct commercial interest, such as diagnostic testing for the issuance of a health certificate and treating diseased animals, should be paid for by the benefiting farms and enterprises. However, the prevention or containment of the spread of contagious pests and diseases is an example of a public good -- the benefits of which are shared by many farms or enterprises. Public goods require public actions -- in this example, quarantine activities, vaccination, surveillance and monitoring of the food safety, pest and disease situation -- and their costs can only be borne by the public sector. If the benefits of a public good exceed the costs, then funding by the public sector is of benefit to society. If public 30 funds are limited, priority should be given to public goods that have the highest benefit-to-cost ratios. Costly investments 117. Diagnostic facilities and equipment require significant investments, and issues for investing in laboratories are complex. Purchase of expensive modern laboratory equipment such as high performance liquid chromatography (HPLC) would lead to good quality tests and sustainable use only if (a) the volume of tests is at least 500 per year; (b) chemicals for that workload are available; (c) stable power and air conditioning are secure 24 hours, 7 days per week; (d) maintenance and calibration are secured; and (e) there is participation in a proficiency testing scheme. 118. Nonetheless, for many testing and consulting services, the public services and agribusinesses can find excellent and competitive providers in Thailand and Vietnam. This means that the buildup of capacities within Lao PDR should take into consideration that there are cost-effective alternatives available to several lumpy investments. Responding to demand 119. In some areas there is not yet enough demand to justify investment in expensive testing equipment, and the best value for public money will be to make use of rapid test kits and to subcontract laboratories abroad for confirmation testing. Once the demand for testing is sufficient (at least 500 tests per year for expensive equipment), the purchase of expensive equipment would become feasible. Infrastructure 120. Because of its small size, Lao PDR cannot afford to have parallel capacities in most areas of food testing. The three institutions in place -- FDQCC, NAHC, and PPC -- have common interest in various areas of surveillance and testing. Moreover, each has its own overhead facilities and shortage of well-trained and experienced staff. A consolidated national SPS laboratory would definitely have advantages of economies of scale. Specialization and delineation 121. If it is not feasible to consolidate laboratories, the next-best alternative would be designing a clear delineation of functions with lead role and specialization for each of the institutions and making use of each other`s capacities. The following is proposed: FDQCC leads on food microbiology and food chemistry, including pesticide residues and mycotoxins; PPC leads on heavy metals (including heavy metals in food, feed, soils, and fertilizers), and composition and quality of pesticides; and 31 NAHC leads on composition and quality of veterinary drugs and vaccines, residues of veterinary drugs in food, zoonoses in and microbiological safety of unprocessed animal products. Institutional arrangements. 122. Responsibilities span across sectors and require coordination among the departments. Coordination and delineation between FDD and HPD on responsibilities and procedures, and information sharing would facilitate joint activities, especially during food-related outbreaks. The FDD and DOA should establish procedures with regard to cooperation in testing pesticide residues, heavy metals, and mycotoxins; covering submission of samples; provision of certification; and cost recovery mechanisms. The same goes for FDD and DOLF with regard to tests on safety of animal products. Summary of estimated operational costs 123. Total (additional) operational costs needed to carry out recommended expanded activities amount to about US$1 million a year (about 8.5 billion Kip), 68 percent of which is for animal health and related food safety and human health activities, primarily for animal health surveillance and diagnostics, half of which is for HPAI (Table 7.1). Table 7.1. Summary of estimated operational costs for SPS in Lao PDR US$ FDQCC (Food safety) 170,200 Surveillance 23,200 Microbiology 27,000 Pesticides residues, Variant 2 72,000 Mycotoxins, Variant 2 14,500 Heavy metals 17,000 Food-borne diseases 15,000 Data management 1,500 PPC (Plant health and food safety) 156,600 Pest surveillance 57,000 Purchased pest identification 5,000 Post-entry quarantine 3,000 Pesticide residues 22,600 Pesticide formulations 52,500 Heavy metals (soil and fertilizer) 15,000 Data management 1,500 NAHC (Animal health and food safety) 706,000 Surveillance 164,000 Diagnostic testing 310,000 Veterinary drug residues 25,000 Drug and vaccine quality 35,000 Animal and fish products (microbiology and zoonoses) 10,000 Safety of animal feed 60,000 Readiness, variant 2: vaccines 100,000 Data management 2,000 Total 1,032,800 32 124. About US$863,000 (7.3 billion Kip) pertains to activities of the Ministry of Agriculture and Forestry (MAF) and about US$170,000 (1.4 billion Kip) to activities of the Ministry of Health (MOH). These costs would be about 8 percent and 0.7 percent, respectively, of the 2008- 09 recurrent expenditures of MAF and MOH of 94 billion Kip (US$11 million) and 194 billion Kip (US$23 million) (see Annex F). 125. At present very small budgets are allocated from Government sources, in the range of US$50,000 annually. In some cases, temporary small budgets are available from foreign-funded projects; the main exception is the sizable external funding for HPAI, which is currently about $237,000 for surveillance and testing and has a medium-term character. An additional US$800,000 per year is needed for public operational funding to achieve the recommended volume of activities. Recommendations for Increasing Operational Funding 126. It is recommended to expand the amount of funding incrementally in five annual incremental amounts of US$160,000. Priorities for the expansion of operational funding will depend on several factors, such as the need to coordinate with external support for capacity- building activities, readiness of regulatory framework, investment and availability of equipment, and training of staff. However, some activities can be expanded sooner. Priority could be given to the use of rapid test kits and pest surveillance. Subsequently, other active and passive surveillance activities can be gradually stepped up. A rolling annual plan should be introduced to guide priority in allocations. Key Requisites to Interventions 127. Certain requirements are needed to be able to carry out the recommended options. Institutional and legislative framework 128. Stepping up work on surveillance, testing, and diagnostics assumes that proper institutional and legislative frameworks are already in place or being put in place with support from the Trade Development Facility and other projects. Volume of work 129. The low volume of work in sample collection is the main constraint for developing a system of surveillance, diagnostics, and testing with adequate proficiencies. The present laboratory capacities are underutilized. Adding equipment, staff, and accreditation is only useful if this basic constraint is removed first. Equipment and facilities 130. Purchasing equipment is a means, not an objective in itself; it should be justified by its contribution to clear objectives in the areas of food safety, plant health, and animal health. If there is no trained staff and no operational budget to make use of equipment, it should not be purchased since it will draw scarce resources from other areas that are already underfunded. 33 131. Purchase of equipment, facilities, and structural adjustments will sooner or later be needed to broaden the range of testing parameters. Specifically: For plant health, the DOA may need to acquire HPLC equipment for testing composition of pesticides, or alternatively, make arrangements with a specialized laboratory in Thailand or Vietnam for subcontracting the analyses. Testing for heavy metals requires AAS testing methods or arrangements with a laboratory in another country. The establishment of a post-entry quarantine laboratory at PPC will have to precede quarantine work on seed and propagation material. The purchase of equipment for testing veterinary drugs, antibiotics, and growth enhancers should precede the activity, or an alternative arrangement with a laboratory in a neighboring country is needed. Human resources 132. In all areas there is a dearth of laboratory technicians with proficiencies and adequate training to carry out proposed increases in the number of tests and to perform various specialist functions. This will necessitate a well-planned gradual increase of human resource capacities. Information management 133. A well-managed information database should be set up in each of the three areas and should employ staff solely working in data management and analysis. Without ensuring proper use of the information, benefits from surveillance, testing and diagnostics will be meager. 34 Annex A. Estimates of Operational Costs of Equipment and Laboratories Operational costs for equipment 1. Table A-1 shows estimates of operational cost of a typical piece of equipment with a workload of 500 tests per year using testing methods that require low levels of chemicals, for low- and high-cost environments. Costs were added for participation in proficiency testing schemes, for training and purchase of literature. The operational cost per test as defined here is between US$50 and $62.31 It is important to note that the cost per test will increase with decreasing number of tests because of increased fixed cost and cost of consumables per test, and relatively increasing cost of more frequent uploading at low levels of use. Table A-1. Estimates of stylized operational cost for a piece of modern testing equipment Low-cost High-cost Item environment environment Calibrated with a workload of 500 tests per year US$ US$ Consumables and maintenance for sophisticated equipment 20,000 25,000 (maintenance is estimated at 20-25% of purchase prices) Calibration services (balances, volumetric apparatus, thermometers) 1,000 1,500 Proficiency testing 1,500 2,000 Training and literature* 2,500 2,500 Total annual cost 25,000 31,000 Cost per test 50 62 Note: * Training and literature are indispensable operational cost items for maintaining proficiency of staff and keeping up with new developments. Source: Estimates derived by Maria Beug-Deeb, Tom Deeb, and Upali Samarajeewa, independent consultants, personal communication. 2. More sophisticated equipment, such gas chromatography­mass spectrometry (GC­MS), liquid chromatography­mass spectrometry (LC­MS), and inductive coupled plasma (ICP) for simultaneous multi-element detection, are available for higher performance testing and detecting substances for which high performance liquid chromatography (HPLC), gas chromatography (GC) and atomic absorption spectroscopy (AAS) are not suitable. The requirements and cost per sample will generally be higher, especially for ICP. Operational costs for a chemical food laboratory 3. The minimum operational cost for a chemical food laboratory that can test for mycotoxins, and residues of veterinary drugs, pesticides, and metals is estimated assuming a high-cost environment. A spreadsheet was built for consumables and reagents required for an inexpensive (low reagent intensive) method for about 500 tests per year per piece of equipment. It was assumed that the laboratory would run: 1 HPLC for mycotoxins, 2 HPLC for veterinary residues, 2 HPLC for pesticide residues, and 31 If charges for labor, overhead, utilities and depreciation would be added, the costs would probably be similar as the fees charged in Thailand and Vietnam for pesticides residues (about $100 per test) (see Annex B). 35 1 GC-MS or another HPLC and 1 ICP for metals. 4. A 25 percent up-charge in cost of consumables was included for developing countries. Calibration and maintenance costs are estimated at 20 to 25 percent of instrument costs (based on rough estimates from instrument manufacturers). Computation does not include labor, benefits, facility maintenance, electricity, accreditation, overhead, management costs, quality assurance costs, utilities, disposal of solvents, and the cost of collecting samples. Total cost is estimated to be about US$270,000 (Table A-2). For laboratories in a low-cost environment the minimum operational cost might be about US$220,000. Table A-2. Consumables and maintenance costs for chemical laboratory (US$) US$ Consumables, maintenance, and calibration service for 5 HPLC and 1 GC-MS 183,000 Consumables for ICP-MSa 18,000 Maintenance service for ICP 50,000 Maintenance and calibration service for 3 balances 1,800 Proficiency testingb 8,000 Training, literature, etc.b 8,000 Total annual operational cost of testing 268,800 Notes: a. The cost of operating ICP-MS came from "Practical Guide to ICP-MS" by Robert Thomas, Marcel Dekker, Inc., NY (2005). b. The estimates for proficiency testing, training, and literature were downwardly adjusted from Rama Rao, Guide for assessing investment needs in chemical laboratory capacities for managing food safety in developing countries. Vimta Labs LTD, Hyderabad, 2008, since his data refer to a relatively large laboratory. Source: Maria Beug-Deeb, personal communication. Sensitivity. Costs per test will be higher at lower volumes for several reasons: Lower test volumes mean more equipment start-up and shut-down cycles. Lower test volumes mean more reagent blanks and standards that need to be run per test volume. Lower test volumes mean higher costs per quantity of solvents and carrier gasses. Low budget laboratories cannot afford to take risks (such as qualifying less expensive solvents at the risk of trashing injectors and columns), nor do these laboratories usually have the expertise to do this. Cutting corners in low-budget laboratories is really not a good idea especially since the cost savings are proportional to test volume anyway. 5. Varying sizes of laboratories. Experience suggests that it is best to identify laboratories at three levels. The demand to carry out a broad range of micro-chemical tests arises mainly in highly developed economies. In many countries, exports are limited to a few items with a few critical parameters from among pesticides and residues, veterinary drugs and residues, unpermitted dyes, mycotoxins, heavy metals, adulterants, and additives tested in developed countries. Also, if availability of staff and samples is so low, then often one piece of equipment (especially GC and HPLC) could be used for several types of analysis through selection of appropriate columns and detectors. 36 6. Sophisticated equipment such as GC-MS, LC-MS, and ICP are needed mostly to recognize new compounds beyond the common food safety issues (such as melamine). Such tests could always be subcontracted to a laboratory elsewhere. Table A-3 identifies three different sizes of laboratories based on workloads using examples of Southeast Asian countries. Table A-3. Workload and equipment Workload Size of laboratory (Number of GC HPLC AAS GC-MS LC-MS ICP tests) Small 300-500 1 1 1 - - - (Lao PDR, Cambodia) Medium (Vietnam, providing local 500-1,000 2 2 1 1 - - services) Large (China, Thailand, >1,000 >5 >5 2 1 1 1 QUATEST3 in Vietnam) Source: Upali Samarajeewa, personal communication. 7. Based on these considerations, Table A-4 presents minimum levels of required funding of operational costs budgets for the three different sizes of laboratories. Table A-4. Operational cost at three levels of operation US$ Small Medium Large Operational cost items laboratory laboratory laboratory Consumables and maintenance for equipment 70,000 200,000 >600,000 Calibration services (balances, volumetric 1,000 3,000 >5,000 apparatus, thermometers) Proficiency testing 2,000 4,000 10,000 Training and literature 5,000 10,000 15,000 Total annual operational cost of testing 78,000 217,000 >630,000 Note: Same definition of operational cost as in Table A-2. Source: Upali Samarajeewa, personal communication. Food microbiology testing 8. An example of operational cost for a microbiology laboratory is presented in Table A-5. Table A-5. Operational cost for a microbiology laboratory Activity US$ Consumables 90,400 Maintenance and calibration service 28,000 Training, literature, reference samples 10,000 Total 128,400 Source: Maria Beug Deeb, personal communication. 9. These costs were developed based on the US Food and Drug Administration Bacteriological Analytical Manual. Tests included are anaerobic plate count, fecal coliform, e. coli, listeria, and salmonella for various types of products (juice, meat, eggs, dry milk, fruit and 37 vegetables). All materials are assumed to be prepared on site versus purchasing of pre-mixed materials. 38 Annex B. Testing Fees in Thai and Vietnamese Laboratories 1. Thailand has many well-established laboratories with high workloads of testing for both private sector and Government. Main laboratories have accreditation for many parameters and are mostly participating in some kind of national and international proficiency schemes. The Thai Central laboratory has the highest volume of tests and is most oriented to providing commercial services to the private sector. It is an autonomous organization, which will be fully privatized and listed at the Stock Exchange. On the other hand, the laboratories of Vietnam`s Department of Animal Health are still less developed and mostly oriented to serving public policy needs. 2. There are differences in fees among the laboratories in Thailand and Vietnam (Table B- 1). Fees differ to some extent between the laboratories, which can partly reflect the volume of work, kind of equipment, services provided, and costs covered. Also, commercial considerations of how to operate in the market can play a role, especially in Thailand. Moreover, no details are available on discounts given for larger contracts and to certain customers. Fees in the Thai Central Laboratory tend to be lower than the other two Thai laboratories. This may well reflect the higher volume and the general efficiency in this new laboratory. Fees in Vietnam tend to be lower than in Thailand that may reflect different costing methods and different actual costs. For example, in the Vietnamese laboratories, accreditation and proficiency testing are less applied and costs of salaries are lower. 3. In Thailand, Government policy requires that laboratories cover their costs from fees. The fees are probably close to commercial rates, although there are likely to be some remaining subsidy elements since buildings and equipment were procured by Government and, for some laboratories, staff are still partly paid by Government. However, fees probably cover cost of salaries, utilities, and equipment replacement. For comparison, the study made use of recently proposed fees32 by the Departure of Animal Health in Vietnam for approval by the Ministry of Finance. These prices, presented in Table B-1, provide an update of how these laboratories see their cost levels. 4. The fees are higher than the stylized operational costs provided in Table A-1 (Annex A) since these are basically commercial fees that include utilities, replacement costs for equipment, accreditation and, possibly, wages. Moreover, they may not be using the cheapest methods. 5. Fees for testing for veterinary drugs range from US$55 to $106; for heavy metals, from US$18 to $30; and for single group pesticides, from US$91 to $121. Fees for aflatoxins are difficult to compare since there can be several parameters under this group. Microbiology tests in Thailand range from US$9 to $18, with higher prices for some specific tests on salmonella. Tests in Vietnam for microbiology are much lower than in Thailand. It is noteworthy that all laboratories are offering rapid tests for a series of parameters. 32 As of September 2009. 39 Table B-1. Comparisons of some testing fees in Thai and Vietnamese laboratories Thai Department of Thai Thai National Food Vietnam Department Livestock Development Central Laboratory Institute of Animal Health Method US$ Method US$ Method US$ Method US$ Antibiotic and drug residue Nitrofurans - parent LC-MS 61 HPLC 76 Metabolites LC-MS-MS 106 LC-MS-MS 91 LC-MS-MS 106 Tetracycline HPLC 61 HPLC 55 HPLC 76 LC-MS-MS 106 Chloramphenicol ELISA 21 ELISA 21 ELISA 21 LC-MS-MS 106 LC-MS-MS 91 LC-MS-MS 91 General HPLC 44 Heavy metals & other elements Cadmium AAS 30 ICP- MS 18 AAS 24 N/A 22 Mercury AAS 30 ICP- MS 18 AAS 30 N/A 17 Lead AAS 30 ICP- MS 18 AAS 21 N/A 22 Food additives Benzoic acid HPLC 48 HPLC 58 Sorbic acid HPLC 45 HPLC 58 Monosodium glutamate AOAC 27 HPCL 45 Borax Test 6 Test 1 AOAC 30 Formaldehyde AOAC 61 Test 18 Test 1 AOAC 30 Toxin & pesticides residues General HPLC 44 Aflatoxin B1,B2,G1,G2 N/A 21 HPCL 67 HPCL 106 HPLC 17 Sudan I-IV HPCL 45 LC-MS-MS 91 Organochlorine group GC 106 GC 91 GC,GC/MS 121 Organophosphorus group GC 91 GC 121 Pyrethroid group GC 121 GC 91 GC 121 Carbamate group HPCL 121 HPCL 106 HPCL 91 Any two groups CG/HPCL 152 Microbiological Aerobic plate count N/A 12 BAM 9 BAM 12 MPN, coliform N/A 12 BAM 9 BAM 15 ISO 6 Petrifilm 18 Fecal coliform N/A 12 BAM 9 BAM 15 ISO 6 E.coli N/A 18 BAM 9 BAM 15 ISO 8 Petrifilm 18 Vidas 12 Salmonella spp. N/A 18 AOAC 24 BAM 30 ISO 14 ISO 15 Vidas 12 Note: N/A denotes unavailable information. Average exchange rates of 33Thai Baht to US$1 and 18,000 Vietnamese Dong to US$1. Sources: Thai data provided by the Bureau of Agricultural Commodity and Food Standards. Vietnamese data provided by the Department of Animal Health; proposed for approval by Ministry of Finance. 6. For the diagnostic veterinary laboratory in Vietnam (Table B-2), similar estimated costs were provided as discussed above. 40 Table B-2. Fees for veterinary diagnostic testing in Vietnam Tests Method Fee (US$) Test for virus Isolating Newcastle`s disease N/A 4 RT-PRC 35 Bird flu egg inj. 3 HI subtype 9 cell envir 24 RT-PRC 35 Swine fever antibody ELISA 9 Aujezky antibody ELISA 4 PRRS antibody ELISA 8 Rabies antibody fluoresc 9 Rabies ELISA 13 Detecting FMD ELISA 22 FMD antibody ELISA 20 Tests for germs Salmonella sp N/A 11 E.coli isolation and identification N/A 8 Brucellosis isolation N/A 13 Brucellosis antibody Rose Bengal 3 ELISA 4 Tubercolosis isolation N/A 14 tuberc test 3 Tuberculosis ELISA 10 Anthrax isolation N/A 13 Parasites Trichinella spiralis antibody ELISA 6 Note: Average exchange rate of 18,000 Vietnamese Dong to US$1. Source: Vietnam Department of Animal Health; for approval by Ministry of Finance . 41 Annex C. Estimations and Data for Food Safety A. Testing fees 1. Tests done by the Food and Drug Quality Control Center (FDQCC) on food products are paid by and done upon requests of the private sector either for certification or as compliance to regulation. Table C-1 shows the fees for the various food tests as set by the Ministry of Finance guidelines from recommendations of the Ministry of Health based on derivations by the FDQCC. It is to be noted that FDQCC still does not have the capacities for some of these analyses such as for mycotoxins and pesticide residues. Table C-1. Fees for food analysis Description Price Kip (US$ equivalent) Pesticide residue in water, vegetable, cereal and fish 1,500,000 Kip ($176) (for two groups of pesticides organo-chlorine and organo-phosphate to use gas chromatography) Chemical contaminants in food: Nitrate, nitrite, and formaldehyde (to use 200,000 Kip ($24) per element spectrophotometer) Phosphate (AAS method) 150,000 Kip ($18) Sulphate 120,000 Kip ($14) Borax 60,000 Kip ($7) Sodium benzoate (by spectrophotometer) 600,000 Kip ($71) Mycotoxin (HPLC) 800,000 Kip ($94) Nutrients: Protein, sugar, vitamin and mineral (by titration) 150,000 Kip ($18) per element Fat (extraction and drying or clavimetrie) 300,000 Kip ($35) Soft drinks, water: Furfural (color test), Ethanol (densimeter), carbonic 60,000 Kip ($7) Color (by TLC), ammonia (color test), arsenic, cadmium (by AAS) 150,000 Kip ($18) per element Saccharine (spectrophotometer) 250,000 Kip ($29) Cyanur (CN), methanol, Hg, Lead, Fe, Zn, Cu, Al 120,000 Kip ($14) per element Hardness ( titration ) 110,000 Kip ($13) pH 50,000 Kip ($6) Calcium, magnesium, carbonate, bicarbonate (titration and flammeter) 70,000 Kip ($8) per element Potassium, Sodium (by AAS method) 110,000 Kip ($13) per element Caffeine (by TLC) 300,000 Kip ($35) Caffeine (by HPLC) 800,000 Kip ($94) Food microbiology testing: Total plate count 70,000 Kip ($8) Coliform, Shigella 110,000 Kip ($13) for 1 microorganism E.coli, Yeast and mould, Bacillous cereous, Closterium perfingen 165,000 Kip ($19) for 1 microorganism Salmonella, Staphyloccoccous aureus, V.cholera, V.paraemoticous 200,000 Kip ($24) for 1 microorganism Note: Average exchange rate of 8,500 Kip to US$1. Source: Decree of the President of the Lao PDR on the promulgation of the Charges and Fees Law (amended in 2008), Decree No. 03/PO, November 19, 2008. 2. Testing fees were calculated by FDQCC as follows: (a) Cost of equipment is spread over 5 years, and estimated for one day. 42 (b) Annual calibration and maintenance expenses are computed, and estimated for one day. (c) Cost of chemicals used for one test is computed. (d) The number of tests that could be run in a day is estimated. (e) Testing fee = (1 day` of equipment`s cost and calibration and maintenance expenses) ÷ (estimated number of tests in a day) + cost of chemicals used for one test. 3. The estimation was done at the beginning of 2008; the document was released November 2008. A revision of the document would be done if there is a new procedure or test to be included. B. Estimates for microbiological tests 4. Table C-2 presents FDQCC`s estimated costs for chemicals to do microbiological tests for 500 food samples. A number of price items however are not available; for some of the tests, estimates are partial. The total for the 7 tests is US$36,391. The test for staphyloccoccus aureus is the most expensive test. Table C-2. Estimated costs of media and reagent for microbiological tests for 500 samples g/ml per Price (US$) g or ml for g or ml for 500 Items Subtotal (US$) bottle per bottle one sample* samples* For E.coli: Lauryl sulphate 500 101 7.3 3,650 737 EC broth 500 162 3.7 1,850 599 EMB agar 500 90 7.2 3,600 648 Tryptone water 500 100 1.2 600 120 MR-VP N/A N/A 0.1 50 N/A Simone citrate agar 500 321 1.2 600 385 Kovac reagent 140 14 1 500 50 Methyl red 10 25 1 500 1,250 Subtotal 3,789 For coliform : Lauryl sulphate 500 101 7.3 3,650 737 BGB 500 N/A 4.0 2,000 N/A Subtotal 737 For salmonella: Lactose broth 500 112 4 2,000 448 Selenite 500 175 0.5 250 88 Tetrathionate broth 500 190 0.5 250 95 Brian green 500 135 0.2 100 27 Oxydase disc B/30 50 6 1 500 60 Bismuth sulphid agar 500 161 3.5 1,750 564 HE 500 N/A 3.1 N/A N/A XLD 500 145 0.6 300 87 Nutrient agar 500 98 0.5 250 49 Urease N/A N/A N/A N/A N/A LIM 500 204 3.3 1,650 673 TSI N/A N/A 3.5 1,750 N/A OMA 2 42 0.5 250 5,250 OMB 2 49 0.5 250 6,125 Subtotal 13,466 For shigella: 43 g/ml per Price (US$) g or ml for g or ml for 500 Items Subtotal (US$) bottle per bottle one sample* samples* GN broth 500 150 1 500 150 Mac Conky 500 160 1.6 800 256 LIM N/A N/A 3.3 1,650 N/A TSI N/A N/A 3.5 1,750 N/A Nutrient agar 500 98 0.5 250 49 Polyvalent A-D 2 N/A 0.5 250 N/A Polyvalent A,B,C,D 2 N/A 0.5 250 N/A Subtotal 455 For staphyloccoccus aureus: Baird parker 500 58 25.6 12,800 1,485 Eggyork emulsion 20% 50 65 12 6,000 7,800 Brand heart infusion 500 286 2 1,000 572 Rabbit Plasma 8 156 0.5 250 4,875 Subtotal 14,732 For vibriocholerae: Peptone water alkalin 500 N/A 9 4,500 N/A TCBS 500 116 3.6 1,800 418 Gelatin N/A N/A 2.9 1,450 N/A GPS agar 500 150 2.1 1,050 315 Subtotal 733 For yeast and mould: KH2PO4 500 60 22 11,000 1,320 Potatose dextrose agar 500 125 7.8 3,900 975 Tartaric acid 500 92 2 1,000 184 Subtotal 2,479 Total 36,391 Note: - *Gram (g) for solids and milliliter (ml) for liquid substances. N/A denotes unavailable data, thus, totals for some tests are partial estimated costs. Source: FDQCC. C. Estimates for chemical tests 5. Table C-3 shows the various reagents required for performing analysis on formalin, borax, histamine, sulfur dioxide, and food color. Similar to the microbiological tests, these estimates are also partial for selected chemical tests due to unavailability of prices for some chemicals. Total for the 5 tests for 500 samples each is US$22,590. Unfortunately, the incomplete information precludes the use of these data for the report. Table C-3. Estimated costs of reagents for selected chemical analyses for 500 samples Estimated Price Approximate Approximate cost (US$) (US$) need for 1 need for 500 for 500 Chemicals per unit Unit sample (ml/g) samples (L/kg) samples For formalin analysis Ammonium acetate N/A 500g 1.2 0.5 N/A Acid acetic 37.8 2.5 L 12ml 6 90 Acetyl acetone 80 500ml 4 ml 2 320 Formaldehyde std 40 1L 2ml 2.5 100 Phosphoric Acid 35 1L 5 175 1.8hydroxynaphtalene-3.6 sulforic acid 85 10g 0.05 425 Subtotal 1,110 For borax analysis Sodium carbonate N/A 500g 20 2.5 N/A Sulphuric acid 98% 15 1L 10 5 75 44 Estimated Price Approximate Approximate cost (US$) (US$) need for 1 need for 500 for 500 Chemicals per unit Unit sample (ml/g) samples (L/kg) samples Chloroform 115 2.5L 9 415 2 Ethyl 1,3 hexandiol( EHD) N/A 1 N/A Curcumin N/A 0.25 N/A Acetic acid 37.8 2.5L 2.5 40 Ethanol ,aldehyd free N/A 1L 37.5 N/A Boric acid std. sigma cat no.B7660 N/A 0.5 N/A Subtotal 530 For histamine analysis Benzene N/A 1L 5 N/A n butanol N/A 1L 5 N/A Sodium acatate anhydrous 72 1kg 5 360 Succinic acid anhydride 73 500g 0.1 0.05 5 Acid acetic 37.8 2.5L 5 2.5 40 Acetyl acetone reagent plus >99% 120.6 1L 5 605 P. Nitro aniline 80 1L 10 5 400 Acid chlorhydrid 40 1L 10 5 200 NaNO2 (sodium nitrite) N/A 4 2 N/A Ethyl alcohol 41.4 2.5L 10 5 85 Sodium metaborate 115 500g 7.5 3.75 865 Sodium carbonate N/A 500g 5.7 0.1 N/A Sodium barbital N/A 500g 10g 2.5 N/A Sulphuric acid 30 1L 5 150 Dilute Sulphuric acid 0.2+/- 0.01M N/A 10 5 N/A Methanol 60 1L 20 10 600 4-Methyl 2- pentanone purified grade 169 1l 15 7.5 1,270 Benzaldehyde 90 1L 2 1 90 Sodium hydroxide 70 1kg 0.5 35 Sodium chloride 50 kg 20 10 500 Standard: Histamine .2HCl code no.53300 238 1g 0.01 2, 375 Subtotal 7,580 For sulfur dioxide analysis Acid chlorhydrid 37% 40 1L 70 35 1400 Methyl red indicator 35 25g 0.125 175 Ethanol absolute 41.4 2.5L 12.5 205 Sodiumhydroxid 0.01 N 50 1l 10 5 250 Pyrogallol 180 50g 0.25 900 Hydrogen peroxid AR 30% 30.0 500ml 27 13.5 810 Nitrogen gas N/A cylinder 5 Potassium hydroxid N/A 500g 5 N/A Potassium acid phthalate N/A N/A 2.5 N/A Sulphuric acid 98% 30 1L 5 150 Sodium hydrosulphide ( NaHSO3) N/A 0.1g 0.5 Subtotal 3,890 For food color analysis 9,480 Acid acetic 37.8 2.5L 10 5 75 Hydrochloric acid 40 1L 5 200 Sodium hydroxide 70 1kg 5 350 n Butanol N/A 1L 5 N/A Metyhyl ethyl ketone 70 1L 5 350 Ammonium hydroxide 50 2.5 10 5 100 ---2 propanol 135 2.5l 20 10 540 ---Chloroform 115 2.5L 5 2500 115 ---Diethylamine N/A 1L 5 2.5 N/A Supplies Wool /polyamide powder N/A 5 2.5 N/A Whatman filter paper No.2v N/A 1 piece 500 N/A TLC plate(Aluminium sheets)25/pack 775 pack 10 7,750 Silica gel 60 F254 20x20cm 45 Estimated Price Approximate Approximate cost (US$) (US$) need for 1 need for 500 for 500 Chemicals per unit Unit sample (ml/g) samples (L/kg) samples TLC Tank with cover ( 22x22 cm (outside)) N/A ea 1 25 N/A Food color standard Sunset yellow N/A 50 g N/A Ponceau N/A 50 g N/A Tartrazine N/A 50 g N/A Brian blue N/A 50 g N/A Garmoisine N/A 50 g N/A Erythrocine N/A 50 g N/A Subtotal 9,480 Total 22,590 Note: N/A denotes missing unavailable data, thus, totals for some tests are partial estimated costs. Source: FDQCC. 6. Table C-4 presents the reagents and corresponding costs to do 500 tests for pesticide residues for fruit and vegetables for the 4 groups of pesticides and differing methodologies. Costs for reagents for the 4 groups range from US$4,925 to US$28,905. Table C-4. Estimated costs of reagents for pesticide residue analysis for 500 samples Approximate need Approximate need Estimated costs Item for one sample for 500 samples for 500 samples (g/ml) (L/kg) (US$) I. Organochlorine and organophosphorus residues AOAC 970.52 general method Acetone 100 50 700 Acetonitrile CH3CN 250 125 3,840 Ethyl ether (Ether, diethyl ether, ether) (CH3CH2)2O 150 75 2,380 Florisil 25 12.5 1,580 Petroleum ether 450 225 6,385 Sodium sulfate 30 15 825 Glass wool N/A N/A N/A Methyl-tert Bytyl Ether, MTBE 50 25 4,765 Celite filter aid 10 5 365 OP Internal standard (2-nitrotoluene) N/A 5 vials 220 OP surrogate standard (DMNB; 1,3-dimethyl-2-nitrobenzene N/A 5 vials 165 OC Internal std (Quintozene; pentachloronitrobenzene) N/A 5 vials 440 OC Surrogate std (4,4 dichlorobiphenyl) N/A 5 vials 165 Analytical standards (e.g. malathion, DDT, aldrin) depending N/A 5 vials each 1,000 on the needs Total 22,830 II. Synthetic pyrethroids, AOAC 998.01 from fruit and vegetables Acetone 100 50 700 Acetone 200 100 1,400 Hexane 333 166.5 2,330 Acetonitrile 60 30 920 Diethyl ether 15 7.5 240 Florisil 25 12.5 5,270 NaCl 1 0.5 30 Sodium sulphate 20 10 550 Synthetic pyrethroids standards N/A 1 vial each 8 analyte 4,000 Total 15,440 III. Thin-layer chromatography for organophosphorus and organochlorine, AOAC 970.52, extraction as in 970.52 without clean-up Aluminum oxide 60 G TLC plates N/A 125 1,575 n-heptane 12.5 405 Silver nitrate AgNO3 50 g N/A 46 Approximate need Approximate need Estimated costs Item for one sample for 500 samples for 500 samples (g/ml) (L/kg) (US$) 2-phenoxyethanol 5 2.5 450 Acetone 100 50 700 Hydrogen peroxide N/A N/A N/A N-N` Dimethyl formamide 20 10 400 Petroleum ether 20 10 285 Methylcyclohexane 10 5 155 Tetrabromophenolphthalein ethyl ester 0.2 5g 955 Citric acid 1 0.5 N/A Total 4,925 IV. Carbamate pesticide residues, AOAC 985.23 from fruit and vegetables Acetonitrile 200 100 10,870 Methanol 305 152.5 5,595 NaCl 15 7.5 440 Methylene chloride (dichloromethane) 170 85 5,270 Petroleum ether 100 50 1,420 Toluene 35 17.5 320 HPLC grade water 50 25 765 Sodium hydroxide 2 1 70 Sodium sulfate 5 2.5 65 Sodium tetraborate decahydrate Na2B4O7 x 10H2O 8 4 385 o-phthaladehyde 0.1 0.05 350 2-mercaptoethanol 0.1 0.05 205 Silanized Celite 545 4.5 2.25 975 Activated charcoal 1 0.5 125 BDMC Internal standard N/A 5 vials 700 Carbamate standard mix N/A 5 vials 1,350 Total 28,905 Source: FDQCC, based on initial estimates by FAO consultant. D. Estimates on calibration and maintenance 7. The FDQCC estimated annual expense for calibration and maintenance of all equipment being used in abovementioned tests of microbiological and chemical laboratories to be US$4,588 (Table C-5). Table C-5. Estimated annual costs for calibration and maintenance for instruments Instruments Costs (US$) HPLC (chemical laboratory) 1,000 GC 600 Balances Balance (chemical laboratory) 200 Balance (microbiology laboratory) 200 Balance (microbiology laboratory), more accurate 300 Spectrophotometer 500 Incubator (microbiology laboratory) 337 Autoclave (microbiology laboratory) 367 Biological safety cabinet ( microbiology) 661 CO2 incubator 423 Total 4,588 Source: FDQCC, based on quotations of 2H Instrument Co. and Simazu Co., Vietnamese suppliers of laboratory instruments and equipment. 47 E. Estimates for tests on food-borne diseases 8. The National Center Laboratory for Epidemiology (NCLE) provided a rough cost estimate of US$50 for testing a stool or sputum sample. If the cause of illness is unidentified, samples have to be tested on average for 5 pathogens: vibrio cholerae, shigella, salmonella, E. Coli, and staphylococcus aureus. The NCLE estimates each test to cost about US$10. With regard to the sample size, WHO guidelines recommend performing tests of about 10 percent of the number of cases. In the last outbreak of vibrio cholerae, the NCLE tested 25 samples. Therefore, assuming doing tests on 300 specimens at US$50 each amounts to a total of US$15,000 as an estimate of operational cost for food-borne diseases. 48 Annex D. Estimations and Data for Plant Health A. Pest surveillance 1. The Plant Protection Center (PPC) provided cost estimates for the proposed pest survey for rice.33 2. Since rice is grown in both dry and rainy seasons, the survey should be done for both seasons with four visits to correspond to each of the four crop stages -- for a total of eight visits in a year. Since the crop is grown throughout the country, the survey covers growing areas in eight provinces and Vientiane capital. Table D-1 shows the breakdown of costs for the collection of specimens and for the preparation of specimens. Main cost items for specimen collection are allowances (49 percent) and transport (50 percent). Total cost amounts to 563,466,000 Kip (US$66,290). Table D-1. Costs for surveillance for rice Unit Amount Price (Kip) Total (Kip) Specimen collection 451,336,000 Supplies 1,016,000 Tissue paper Bag 16 15,000 240,000 Distilled water Bottle 10 10,000 100,000 Cardboard for insects Sheet 10 8,000 80,000 Brush Brush 20 5,000 100,000 Scissors Pair 8 12,000 96,000 Secateurs Pair 8 10,000 80,000 Stickers Sheet 50 4,000 200,000 Sticky tape Roll 10 12,000 120,000 Plastic bags for specimens Allowance for PPC staff and local staff 217,520,000 Phongsali province 4 people x 7 days x 8 times 180,000 40,320,000 Louang Namtha province 4 people x 4 days x 8 times 180,000 23,040,000 Sayabouri province 4 people x 4 days x 8 times 180,000 23,040,000 Xiangkhouang province 4 people x 4 days x 8 times 180,000 23,040,000 Vientiane province 4 people x 2 days x 8 times 180,000 11,520,000 Vientiane Capital 4 people x 2 days x 8 times 35,000 2,240,000 Savannakhet province 4 people x 4 days x 8 times 180,000 23,040,000 Champasak province 4 people x 4 days x 8 times 180,000 23,040,000 Attapeu province 4 people x 4 days x 8 times 180,000 23,040,000 Local staff 2 people x 35 days x 8 times 45,000 25,200,000 Transport 232,800,000 Phongsali province 7 days x 8 times 900,000 50,400,000 Louang Namtha province 4 days x 8 times 900,000 28,800,000 Sayabouri province 4 days x 8 times 900,000 28,800,000 Xiangkhouang province 4 days x 8 times 900,000 28,800,000 Vientiane province 2 days x 8 times 400,000 6,400,000 33 Data prepared by the Plant Protection Center: Mr. Khamtanh Thadavong (Head), Ms. Khonesavanh Chittarath (Pathology), Ms. Thipphavanh Silipanyo (Fertilizer and pesticide unit) and Ms. Pheophanh Soysouvanh (Entomology). 49 Vientiane Capital 2 days x 8 times 200,000 3,200,000 Savannakhet province 4 days x 8 times 900,000 28,800,000 Champasak province 4 days x 8 times 900,000 28,800,000 Attapeu province 4 days x 8 times 900,000 28,800,000 Costs for specimen preparation 18,690,000 Chemicals 13,090,000 Acid Fuchsin 500ml 2 250,000 500,000 Agar 1Kg 5 500,000 2,500,000 Clove oil 500ml 2 200,000 400,000 Ethylacetate 1L 30 250,000 7,500,000 Euparul 500 ml 1 250,000 250,000 Potassium Hydroxide 500 g 2 450,000 900,000 Glucose 1 Kg 5 100,000 500,000 Glycerol 1L 3 180,000 540,000 Supplies and materials 5,600,000 Material for media (potato, carrot etc.) 500,000 Slide box Box 10 150,000 1,500,000 Slide Box 15 40,000 600,000 Cover glass (18x18 mm) Box 15 80,000 1,200,000 Pin no. 1, 2, 3 Box 10 100,000 1,000,000 Petri Dishes (15x100 mm) 20 40,000 800,000 Total 470,026,000 Notes: 1. Daily allowance from Ministry of Finance guidelines for an Administrative Position category 4 and lower includes 50,000 Kip for food, 120,000 Kip for lodging and 10,000 Kip for individual allowance. Category 4 positions include head of technical unit under a department. 2. Transport expenses represent rental cost of car/van, lower in Vientiane capital and Vientiane province. Source: Plant Protection Center. 3. Variations. Using the proposed rice survey data as starting point for calculations, the following variations are applied: (a) For a one-season crop covering 9 provinces (including Vientiane Capital), total costs would be lowered by 50 percent to 235,013,000 Kip (US$27,649). (b) If the number of provinces included in the survey (for a two-season crop) were to be lowered to five (Table D-2) -- Vientiane Capital, Vientiane Province and 3 other provinces -- allowances and transport costs would be reduced by 59 percent to 190,400,000 Kip (US$22,400). Assuming no significant reductions in outlays for chemicals and supplies, total cost for a survey would be 210,106,000 Kip (US$24,718). (c) For a one-season crop, survey with 5 provinces would cost 105,053,000 Kip (US$12,359). 50 Table D-2. Allowance and transport costs for surveillance in five provinces Units Unit cost (Kip) Total (Kips) Allowance for PPC staff and local staff 94,400,000 Vientiane Province 4 people x 2 days x 8 times 180,000 11,520,000 Vientiane Capital 4 people x 2 days x 8 times 35,000 2,240,000 Any 3 provinces 3 x (4 people x 4 days x 8 times) 180,000 69,120,000 Local staff 2 people x 16 days x 8 times 45,000 11,520,000 Transport 96,000,000 Vientiane province (x Kip) 2 days x 8 times 400,000 6,400,000 Vientiane Capital 2 days x 8 times 200,000 3,200,000 Any 3 provinces 3 x (4 days x 8 times) 900,000 86,400,000 Total 190,400,000 Source: Computation by authors. 4. Allowance for preparatory activities. Surveys are preceded by preparatory activities such as training workshops on the proper collection of specimens. A rough allocation might be 5 percent of the total cost. In summary, when incorporating preparatory activities to the variations discussed above, operational costs for a year for pest surveillance range from 110 million Kip to 494 million Kip (US$13,000 to $58,000): Table D-3. Summary of operating costs Survey activities Kip US$ 2-season crop, 9 provinces 493,527,300 58,062 1-season crop, 9 provinces 246,763,650 29,031 2-season crop, 5 provinces 220,611,300 25,954 1-season crop, 5 provinces 110,305,650 12,977 Note: Average exchange rate of 8,500 Kip to US$1. B. Monitoring for pesticide residues 5. The PPC provided cost estimates for a proposed activity to monitor for pesticide residues in agricultural produce using rapid test kits. Proposed activity will cover tests for 1,200 samples -- 300 samples each for Vientiane Capital and Vientiane Province, and 200 samples each for 3 other provinces. Each Gobthong Thoophom (GT) test kit consists of 30 tests and costs 600,000 Kip. Testing 1,200 samples would require 40 kits for a value of 24 million Kip (US$2,824). 6. Another cost item would be the cost to gather the samples. At US$4 per sample, the cost for 1,200 samples would be US$4,800. If part of the positive tests is also sent for confirmation with a conventional method, the additional cost for 100 samples with a unit price of US$100 would be US$10,000. 51 Annex E. Estimations and Data for Animal Health A. Cost of diagnosis of animal diseases 1. FMD/CSF. Table E-1 provides the cost estimate for foot-and-mouth disease (FMD) and classical swine fever (CSF) tests for 1,000 sera. Total value is US$25,971 (220,753,500 Kip) with reagents comprising about 96 percent of total costs. Considering only the reagents, this shows a US$25 cost per sample.34 Table E-1. Estimated costs for diagnosis of FMD and CSF Unit Items Unit Price Quantity US$ (US$) Reagents 25,000 Lab consumables 971 Latex gloves Box of 50 pairs 6.47 25 162 Face masks Box of 50 6.47 25 162 Syringes 5 ml/10ml Box of 100 6.47 100 647 Total (US$) 25,971 Total (Kip) 220,753,500 Notes: The estimated chemicals and costs correspond to 1,000 sera. Breakdown of cost of reagents was not provided. Average exchange rate of 8,500 Kip to US$1. Source: Data was prepared by Dr. Phout Inthavong (NAHC/DOLF). 2. HPAI. A similar estimation for highly pathogenic avian influenza (HPAI) is presented in Table E-2 for tests on 10,000 sera, 10,000 swab and 300 carcasses. Total estimate for HPAI diagnosis is US$130,396 (1,108,366,000 Kip). Table E-2. Estimated cost for diagnosis of HPAI Unit Price Reagent Unit Quantity Total (US$) (US$) Flock Chek HPAI multiS-screen ELISA 5 plates/kit 930 50 46,500 QIAamp® Viral RNA Mini Kit 50 reactions 187 50 9,350 RNeasy® Mini Kit 50 reactions 238 5 1,190 100-1500 bp DNA ladder 0,5 ml 179 5 895 Loading buffer 1 ml 35 5 175 LightCycler RNA Master HypProbe 96 reactions 582 30 17,460 primer AIV-H5 TH5 F OD 5/1000 reactions 38 1 38 primer AIV-H5 TH5 A OD 5/1000 reactions 38 1 38 primer AIV-N1 InfA_N1_F OD 5/1000 reactions 38 1 38 primer AIV-N1 InfA N1_A OD 5/1000 reactions 38 1 38 primer AIV-M Th MAT F OD 5/1000 reactions 38 5 190 primer AIV-M Th MAT R OD 5/1000 reactions 38 5 190 Hybridization probe H5 TH5 FL 1nmol/300 reactions 575 3 1,725 Hybridizaion probe H5 TH5 LC 1nmol/300 reactions 575 3 1,725 Hybridization probe N1 InfA_N1_FL 1nmol/300 reactions 575 3 1,725 Hybridization probe N1 InfA_N1_LC 1nmol/300 reactions 575 3 1,725 Hybridization probe MAT FL 1nmol/300 reactions 575 15 8,625 34 Estimates were provided in dollars because activities were mostly donor-funded. 52 Unit Price Reagent Unit Quantity Total (US$) (US$) Hybridization probe MAT LC 1nmol/300 reactions 575 15 8,625 Capillaries Light Cycler 5 x 96 78 50 3,900 PCR tubes 0,2ml (DNAse/RNAse free) 1000 47.2 2 94 H5-antigen 1 ml 50.00 5 250 H5-antiserum 1 ml 55.00 2 110 H7-antigen 1 ml 50.00 3 150 H7-antiserum 1 ml 55.00 3 165 H9-antigen 1 ml 50.00 3 150 H9-antiserum 1 ml 55.00 3 165 Biohazard Autoclavable Bag Pack of 200 80 5 400 ep T.I.P.S. Dualfilter 1000 µl, PCR Clean/Sterile rack of 96 tips 92.8 60 5,568 ep T.I.P.S. Dualfilter 200 µl, PCR Clean/Sterile rack of 96 tips 88.8 60 5,328 ep T.I.P.S. Dualfilter 10 µl, PCR Clean/Sterile rack of 96 tips 84.8 60 5,088 Surgery kits, small Sets,Local purchase sets 25 100 2,500 Latex gloves Box of 50 pairs 6.47 50 323 Face masks Box of 50 pairs 6.47 50 324 Tuberculin Syringe Box of 100 6.47 30 194 Syringes 5 ml Box of 100 6.47 500 3,235 Cryovial Bag of 500 109.95 20 2,199 Total (US$) 130,396 Total (Kip) 1,108,366,000 Notes: The estimated chemicals and costs correspond to 10,000 sera, 10,000 swab and 300 carcasses. Average exchange rate of 8,500 Kip to US$1. Source: Data was prepared by Dr. Phouvong Phommachanh (NAHC-DOLF). 3. Tables E-3 and E-4 show the cost data for the diagnoses of the high-impact bacterial diseases hemorrhagic septicemia, anthrax and Blackleg. Estimation assumes two scenarios -- passive and active surveillance. For passive surveillance (Table E-3), fewer tests were performed on 20 carcasses and 100 organs resulting in a total cost of US$4,079 (34,671,500 Kip) per year. Active surveillance scenario (Table E-4) assumes tests on 50 carcasses and 500 organs with a total of US$10,202 (86,717,000 Kip) per year. Considering only the chemicals consumed, the cost per sample for bacterial diseases was estimated to be US$6.68.35 Table E-3. Estimated costs for diagnosis of bacterial diseases hemorrhagic septicemia, anthrax, Blackleg (passive surveillance) Unit price Description Unit Quantity Amount (US$) (US$) Culture Media 1,517 Blood agar base 500g bottle 1 150 150 MacConkey Agar 500g bottle 1 79 79 Nutrient Agar 500g bottle 1 96 96 Brilliant green Agar 500g bottle 1 105 105 DSA Agar 500g bottle 1 150 150 Mueller Hinton Agar 500g bottle 1 80 80 Triptic Soy broth 500g bottle 1 96 96 Triptose broth 500g bottle 1 96 96 Thioglicollate broth 500g bottle 1 96 96 Egg Yolk Agar 500g bottle 1 89 89 Cooked meat medium 500g bottle 1 96 96 XLD agar bottle 1 96 96 Urea agar 500g bottle 1 96 96 DHL agar bottle 1 96 96 TSI agar bottle 1 96 96 35 Estimation of Dr. Phengphet Vorachit (NAHC/DOLF). 53 Unit price Description Unit Quantity Amount (US$) (US$) Reagents 524 API 20E box/25 strips 2 55 110 API 20 NE box/25 strips 2 55 110 TDA Reagent for API Ampoule 2 6.60 13 MRVP Regent for API Ampoule 2 6.60 13 V1 Regent for API Ampoule 2 6.60 13 V2 Regent for API Ampoule 2 6.60 13 Jame's Regent for API Ampoule 2 6.60 13 NIT1 Regent for API Ampoule 2 6.60 13 NIT2 Regent for API Ampoule 2 6.60 13 Zn Reagent for API 2 6.60 13 B.Anthracis precipitating Antiserum 5 bottles 2 25 50 API 20E Analytical profile Index box 1 75 75 Oxidation paper box/100 5 15 75 Chemicals 733 Bacl2.2H2O bottle 1 N/A N/A H2SO4 liter 1 25 25 Ethanol Alcoho 95% liter 5 18 90 Aceton liter 3 14 42 Paraffin Oil liter 1 11.7 12 Glycerin liter 1 35 35 Gram Iodine solution liter 1 N/A N/A Zeil-Neelsen carbol fuchin liter 1 45 45 Biodine 500ml bottle 10 4.11 42 Alcohol 90°c, 1000ml bottle 20 2.58 52 India Ink, 30ml bottle 3 N/A N/A Immerson Oil, 50ml bottle 2 N/A N/A Formalin 40%, 450ml bottle 5 1.50 8 Hydrogen peroxide 3%, 1000ml bottle 1 N/A N/A Dettol, 1000ml bottle 2 5.20 10 Giemsa powder 10 g bottle 1 93 93 Methylene blue powder 10g bottle 1 93 93 Crystal violet 10g bottle 1 93 93 Safranin powder 10g bottle 1 93 93 Ammonium Oxalate500g bottle 1 N/A N/A Ether 500ml bottle 5 N/A N/A Potassium Iodine 500g bottle 1 N/A N/A Iodine 100g bottle 1 N/A N/A Antimicrobioal Agents (per year) 22 Penicilin G Disc 50's/bot 1 2 2 Streptomycin Disc 50's/bot 1 2 2 Oxytetracyclin Disc 50's/bot 1 2 2 Amoxacilin Disc 50's/bot 1 2 2 Ganamycin Disc 50's/bot 1 2 2 Tetracylin Disc 50's/bot 1 2 2 Ampicilin Disc 50's/bot 1 2 2 Gentamycin disc 50's/bot 1 2 2 Oxacilin Disc 50's/bot 1 2 2 Enrofloxacin Disc 50's/bot 1 2 2 54 Unit price Description Unit Quantity Amount (US$) (US$) Teramycin Disc 50's/bot 1 2 2 Disposable supplies 1,305 Spreading spatula set 2 Absorbent cotton 500g/roll 2 5 10 Latex gloves size M, S box/50 20 14.70 294 Face Mask box/50 20 6.47 129 Syringe 5 ml box/100 5 15 75 Syringe 50 ml box/20 5 20 100 Syringe 2 ml box/100 5 15 75 Biohazard Autoclave Bag 8.5x11'' pack/200 2 80 160 Bottle brush 20 0.59 12 Swab with transport medium for bacteria pack/200 20 Aluminium foil roll 5 2.40 12 Microscope slide76x26mm pack/100 30 11.00 330 Cover glass22x22mm pack/200 2 5.00 10 Filter paper Watman grade 2 diameter 125 mm box 5 19.56 98 Total 4,079 Total (Kip) 34,671,500 Notes: The estimated inputs and costs assume passive surveillance and correspond to tests on 20 carcasses and 100 organs. Average exchange rate of 8,500 Kip to US$1. Source: Data was prepared by Dr. Phengphet Vorachit (NAHC/DOLF). Table E-4. Estimated costs for diagnosis of bacterial animal diseases hemorrhagic septicemia, anthrax and Blackleg (active surveillance) Chemicals, Reagent, Media Unit Quantity Unit price(US$) Amount(US$) Culture Media 2,741 Blood agar base 500g bottle 3 150 450 MacConkey Agar 500g bottle 3 79 237 Nutrient Agar 500g bottle 3 96 288 Brilliant green Agar 500g bottle 2 105 210 DSA Agar 500g bottle 3 150 450 Mueller Hinton Agar 500g bottle 2 80 160 Triptic Soy broth 500g bottle 2 96 192 Triptose broth 500g bottle 2 96 192 Thioglicollate broth 500g bottle 2 96 192 Egg Yolk Agar 500g bottle 2 89 178 Cooked meat medium 500g bottle 2 96 192 Reagents 3,078 API 20E box/25 strips 10 55 550 API 20 NE box/25 strips 10 55 550 TDA Reagent for API Ampoule 10 6.60 66 MRVP Regent for API Ampoule 10 6.60 66 V1 Regent for API Ampoule 10 6.60 66 V2 Regent for API Ampoule 10 6.60 66 Jame's Regent for API Ampoule 10 6.60 66 NIT1 Regent for API Ampoule 10 6.60 66 NIT2 Regent for API Ampoule 10 6.60 66 55 Chemicals, Reagent, Media Unit Quantity Unit price(US$) Amount(US$) Zn Reagent for API 10 6.60 66 B.Anthracis precipitating Antiserum 5 bottles 5 25 125 API 20E Analytical profile Index box 1 75 75 Oxidation paper box/100 10 15 150 Chemicals 593 Bacl2.2H2O bottle 2 N/A N/A H2SO4 liter 1 25 25 Ethanol Alcoho 95% liter 10 18 180 Aceton liter 5 14 70 Paraffin Oil liter 2 11.70 23 Glycerin liter 2 35 70 Gram Iodine solution liter 2 N/A N/A Zeil-Neelsen carbol fuchin liter 2 45 90 Biodine 500ml bottle 10 4.11 42 Alcohol 90°c, 1000ml bottle 20 2.58 52 India Ink, 30ml bottle 3 N/A N/A Immerson Oil, 50ml bottle 5 N/A N/A Formalin 40%, 450ml bottle 10 1.50 15 Hydrogen peroxide 3%, 1000ml bottle 2 N/A N/A Dettol, 1000ml bottle 5 5.20 26 Antimicrobioal Agents 44 Penicilin G Disc 50's/bot 2 2 4 Streptomycin Disc 50's/bot 2 2 4 Oxytetracyclin Disc 50's/bot 2 2 4 Amoxacilin Disc 50's/bot 2 2 4 Ganamycin Disc 50's/bot 2 2 4 Tetracylin Disc 50's/bot 2 2 4 Ampicilin Disc 50's/bot 2 2 4 Gentamycin disc 50's/bot 2 2 4 Oxacilin Disc 50's/bot 2 2 4 Enrofloxacin Disc 50's/bot 2 2 4 Teramycin Disc 50's/bot 2 2 4 Disposable supplies 3,746 Spreading spatula set 10 N/A N/A Absorbent cotton 500g/roll 5 5 25 Latex gloves size M, S box/50 50 14.7 735 Face Mask box/50 50 6.47 324 Syringe 5 ml box/100 20 15 300 Syringe 50 ml box/20 10 20 200 Syringe 2 ml box/100 20 15 300 Biohazard Autoclave Bag 8.5x11'' pack/200 5 80 400 Bottle brush 50 0.59 30 Swab with transport medium for bacteria pack/200 50 N/A N/A Aluminium foil roll 20 2.4 47 Microscope slide76x26mm pack/100 100 11 1,100 Cover glass22x22mm pack/200 10 5 50 Filter paper Watman grade 2 diameter 125 mm box 12 19.56 235 Total 10,202 Total (Kip) 86,717,000 Notes: The estimated inputs and costs correspond to 50 samples of carcasses and 500 samples of organs. Average exchange rate of 8,500 Kip to US$1. Source: Data was prepared by Dr. Phengphet Vorachit (NAHC/DOLF). 56 B. Allowance, transport. and miscellaneous laboratory expenses HPAI Estimates 4. For the donor-funded HPAI surveillance, 2 rounds of surveys were done in 1 year in 33 target districts of 6 target provinces.36 There were 24,750 households visited and interviewed. The surveys collected 10,000 sera, 10,000 swab, and 300 carcasses. Collecting serological samples for HPAI usually involves 1 livestock staff each from PAFO and (district) DAFO and 2 village veterinary workers from each village. 5. Per diem and travel expenses. Accounting for allowances and travel expenses of staff (for 6 provinces, 33 districts, 2 rounds in one year) are shown in Table E-5. Table E-5. Per diem and travel expenses for HPAI Target areas Unit Cost per unit (Kip) Total (Kip) 6 PAFO 10 days x 2 rounds 225,000 27,000,000 33 DAFO 10 days x 2 rounds 110,000 72,600,000 2 Village veterinary workers 33 districts x 50 days* x 2 90,000 594,000,000 rounds Total (Kip) 693,600,000 Total (US$) 81,600 Note: * One village per day. 50 target villages in each district. 6. Training expenses. Before the start of each survey, separate training sessions were held for PAFOs and DAFOs, and for village veterinary workers. The HPAI training in preparation for collection of samples had 2 phases: phase 1 for PAFOs/DAFOs and phase 2 for training of village veterinary workers by PAFOs/DAFOs, assuming a 5-day course for PAFO/DAFO training and 3-day course for village veterinary workers (Table E-6). 36 Data and estimation from Dr. Phouvong Phommachanh (NAHC/DOLF), using average exchange rate of 8,500 Kip to US$1. 57 Table E-6. HPAI-related training costs Phase 1: Training for PAFO and DAFO (5-day course) Per diem for 2 PAFO x 212,500 Kip per unit 5 days 82,875,000 Kip 6 provinces + 2 DAFO x 33 districts day Travel cost for PAFO and DAFO 150,000 Kip 2 roundtrips x 78 23,400,000 Kip per roundtrip persons Total per diem and travel - Phase 1 (Kip) 106,275,000 Phase 2: Training for village veterinary workers (3-day course) Per diem for 2 PAFO x 33 districts 225,000 Kip 3 days 44,550,000 Kip per unit day Per diem for 2 DAFO x 33 districts 110,000 Kip 3 days 21,780,000 Kip per unit day Travel cost for PAFO and DAFO 150,000 Kip 2 roundtrips x 33 9,900,000 Kip per roundtrip districts Per diem and travel cost for 2 90,000 Kip 50 villages x 33 297,000,000 Kip village veterinary workers per unit day districts Total per diem and travel ­ Phase 2 (Kip) 373,230,000 Kip Total HPAI training (Kip) 479,505,000 Kip US$56,412 Miscellaneous laboratory costs. 7. Other expenses include the following: (a) Proficiency tests ­ There are proficiency tests in which a reference laboratory sends standard sample for the HPAI staff to test. The tests consist of 4 samples: positive control, negative control, unknown positive sample, and unknown negative sample, each sample costs US$2,500, for a total of US$10,000. (b) Biosafety cabinet ­ HPAI laboratory utilizes 4 Class II biosafety cabinets to protect the staff from getting infected while performing tests and to protect test samples from getting contaminated. The cabinets are calibrated once a year for a total cost of US$15,000 a year. 8. Table E-7 summarizes HPAI activities in a year. Diagnostic testing is a big component of costs (44 percent), followed by the per diem and travel expenses to collect samples and training expenses. The estimated cost for diagnostic activities is in line with a general estimate from other countries by a World Bank consultant who calculated that the total annual cost of consumables for ELISA and PCR for a small HPAI laboratory is US$150,000 (calibration and maintenance not included).37 37 Personal communication from Tom Deeb. T&M Associates. 58 Table E-7. Yearly HPAI activity costs Percentage of total Activity Kip US$ costs Diagnostic tests 1,108,366,000 130,396 44 Maintenance (biosafety cabinets) 127,500,000 15,000 5 Proficiency tests 85,000,000 10,000 3 Survey per diem and travel 693,600,000 81,600 28 Training per diem and travel 479,505,000 56,412 19 Total 2,493,971,000 293,408 FMD and CSF estimates 9. For foot-and-mouth disease (FMD) and classical swine fever (CSF), different assumptions were used in making estimations.38 10. Collection of samples. The cost for daily allowances for field staff is estimated to be US$8,333 (1,000 samples at 15 samples per day x 5 persons per day x US$25). The assumption is that the survey will be conducted 4 times costing US$300 each for a total of US$1,200. Sample collection makes use of the vacuumtainer (1,000 units at US$1 each) and blood collecting needles (100 units that can be sterilized and re-used at US$1 each). Total sample collection cost for FMD and CSF is US$10,633 (90,380,500 Kip). 11. Training courses. The costs are based on 2 training courses (both for 5 days) for outbreak investigation and sample collection. The 2 trainings involve PAFO and DAFO from each of the 17 provinces (Table E-8). Table E-8. Cost for FMD and CSF Training Per diem allowance for PAFO and DAFO and trainers 2 participants from 17 212,500 Kip 5 days x 2 courses 72,250,000Kip provinces (34) (US$25) per day (US$8,500) 4 trainers 340,000 Kip 5 days x 2 courses 13,600,000 Kip (US$40) per day (US$1,600) Travel expenses for PAFO and DAFO and trainers 2 participants from 17 150,000 Kip 2 roundtrips x 2 courses 20,400,000 Kip provinces (34) (US$17.60) (US$2,400) 4 trainers 1,300,500 Kip 2 courses 2,601,000 Kip (US$153) per (US$306) course Training material 4,250,000 Kip 2 courses 8,500,000 Kip (US$500) per (US$1,000) course Total Training for FMD and CFS 117,351,000 Kip (US$13,806) 58,675,500 Kip per course (US$6,903 per course) 38 Estimation of Dr. Phout Inthavong (NAHC/DOLF), using average exchange rate of 8500 Kip to US$1. 59 C. Cost for Antibiotics and Vaccines 12. Table E-9 gives an estimate of the amount and costs of antibiotics and vaccines (for the more common OIE-listed diseases) that should be in stock in the event of a disease outbreak. Values for antibiotics and vaccines are US$36,010 and US$125,144, respectively, for a total of US$161,204 (1,370,234,000 Kip). Table E-9. Estimated costs for vaccines and antibiotics Quantity Unit price Amount (US$) Antibiotics and Vaccines Unit Actual Desired (US$) Actual Desired Antibiotics 16,105 36,060 Penstrep 100ml bottle 1,000 2,500 7.70 7,700 19,250 Oxytetracycline 20%,50ml bottle 1,000 2,000 5 5,000 10,000 Enrofloxacin 100,50ml bottle 500 1,000 3.05 1,525 3,050 Genta-Tylocin,100ml bottle 500 1,000 3.76 1,880 3,760 Vaccines/vaccine coverage* 48,652 125,144 Hemorrhagic Septicemia, 15 doses/bottle, 40% bottle 20,000 53,000 0.83 16,600 43,990 Anthrax, 10 doses/bottle, 0.1% bottle 100 200 1.17 117 234 FMD for cattle, 20 doses/bottle, 2% bottle 500 2,000 14.11 7,055 28,220 FMD for pig 75 doses/bottle, 1% bottle 100 250 58.80 5,880 14,700 CSF 10 doses/bottle, 20% bottle 20,000 40,000 0.95 19,000 38,000 Total US$ 64,757 161,204 Total (Kip) 550,434,500 1,370,234,000 Notes: *Vaccine coverage refers to percentage of (relevant) livestock population that may be vaccinated given indicated quantity of vaccines. Average exchange rate of 8,500 Kip to US$1. Source: Data was prepared by Dr. Phengphet Vorachit (NAHC/DOLF) and Dr. Signa Kittiphone (NAHC/DOLF). D. Fees for Testing of Animal Feed 13. Table E-10 shows the fees for animal feed analysis. Table E-10. Fees of feed analysis Description Cost per sample (Kip) Dry Matter or Moisture 20,000 Crude Protein 30,000 Crude Fat or Ether Extractive 30,000 Crude Fiber 20,000 Total Ash 20,000 Calcium 30,000 Phosphorous 20,000 Sodium Chloride 20,000 Source: Animal Feed laboratory 60 Annex F. Lao PDR Data on Expenditures for Agriculture and Health Sectors 1. Budgets for SPS management are responsibility of the Ministry of Agriculture and Forestry (MAF) and Ministry of Health (MOH). Data on expenditure by these ministries on SPS- relevant activities on animal health, plant health, and food safety are not readily available. 2. An analysis of Lao PDR public expenditure shows data on a higher level of aggregation. Table F-1 presents a summary of data. Since 2000-01, public expenditure has almost tripled from 3.5 to 10 trillion Kip (almost US$1.2 billion). The share of recurrent spending has increased from 40 to 67 percent and public investment decreased from 60 to 33 percent. The share of the MAF in expenditure was only 3 percent in 2008-09 and has declined from 17 percent in 2000-01. The MOH has a share fluctuating between 3 and 6 percent. The recurrent expenditure of MAF fluctuates between 1.4 and 1.7 percent and was about US$11 million in 2008-09. The share of MOH fluctuates at close to 3 percent per year and was about US$23 million in 2008-09. Whereas MAF did have a high share of over 20 percent in public investment in the first years of the 2000s, it has declined to 7 percent in 2008-09. The share of MOH has fluctuated at a lower level without a clear trend until it surpassed MAF in 2008-09. Table F-1. Lao PDR public expenditure, central and local levels (billion Kip and %) 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Total expenditures All Ministries ­ billion Kip 3,548 3,599 4,410 4,172 5,619 6,944 8,099 8,884 10,026 All Ministries ­ percent 100 100 100 100 100 100 100 100 100 Agriculture ­ percent 16.6 11.4 11.5 6.9 5.8 6.9 4.5 4.4 3.3 Health ­ percent 3.7 5.0 5.8 4.3 5.8 3.2 2.8 4.0 6.3 Recurrent expenditures All Ministries ­ billion Kip 1,476 1,672 1,884 2,395 3,184 3,725 4,701 5,442 6,696 All Ministries ­ percent 100 100 100 100 100 100 100 100 100 Agriculture ­ percent 1.5 1.6 1.5 1.6 1.7 1.7 1.3 1.4 1.4 Health ­ percent 3.2 3.6 2.8 2.7 2.5 2.6 2.4 2.8 2.9 Capital expenditures All Ministries ­ billion Kip 2,072 1,926 2,526 1,777 2,435 3,219 3,398 3,442 3,330 All Ministries ­ percent 100 100 100 100 100 100 100 100 100 Agriculture ­ percent 27.4 19.9 19.1 13.9 11.0 12.9 8.9 9.2 7.1 Health ­ percent 4.0 6.2 8.0 6.5 10.0 4.0 3.4 5.8 13.3 Source: Official Gazette Database, World Bank Lao PDR. 61 Annex G. List of Interviewees Lao PDR Food safety Mr. Chittavong Siviengxay Deputy Director, FDQCC Mrs. Sivilay Naphayvong Head, Food Control Division, FDD Mrs. Douangchay Malyvanh Head, Food Division, FDQCC Mrs. Khambay Phantavong Senior staff, Microbiological laboratory, FDQCC Dr. Noikaseumsy Sithivong Chief, Bacteriology Unit, NCLE Dr. Kaye Wachsmuth Consultant, FAO Mr. Jaakko Korpela Technical Laboratory Officer, FAO Plant health Mr. Phaydy Phiaxaysarakham Director, Plant Quarantine Division, DOA Mr. Khamtanh Thadavong Head, PPC Ms. Khonesavanh Chittarath Pathology unit, PPC Ms. Thipphavanh Silipanyo Fertilizer and pesticide unit, PPC Ms. Pheophanh Soysouvanh Entomology unit, PPC Mr. Thongsavanh Taipangnavong National Expert, FAO Inter-Country Programme for Integrated Pest Management in Vegetables (Lao PDR) Animal health Dr. Sounthone Vongthilath Director, Livestock and Veterinary Division, DOLF Dr. Bounlom Douangngeun Director, NAHC, DOLF Dr. Signa Kittiphone Deputy Director, NAHC Dr. Phachone Bounma DOLF Dr. Thongchay Xayachak Director, Veterinary Legislation Division, DOLF Dr. Phengphet Vorachit Head, Diagnostic Laboratory Unit, NAHC Dr. Phouth Inthavong Veterinary Officer, NAHC; Project counterpart, Lao- Australia Animal Health Research Project Dr. Phouvong Phommachanh Head, Avian Influenza Diagnostic Laboratory, NAHC Dr. Syseng Khounsy PAFO, Luang Prabang Mr. Sisouphanh Nakasene Head, Livestock Farming Technical Standard Control Center Dr. Thongphone Theungphachanh Chief, Livestock Quality Assurance Unit, NAHC Thailand Food safety--Food and Drug Administration, Ministry of Public Health Dr. Tipvon Parinyasiri Director, Food Control Division, Mr. Kitpatch Paranajindar Post-marketing Section, Food Control Division Mr. Amarint Nantavitayaporn Import and Export Inspection Division Dr. Nattapong Snitmatjaro Import and Export Inspection Division Ms. Uraiwan Huabcharoen Mobile Unit team, Food Control Division Mr. Sayan Ruadrew Mobile Unit team, Food Control Division Mr. Sarawut Jobsi Mobile Unit team, Food Control Division Ms. Panchuti Phoopuritham Mobile Unit team, Food Control Division 62 Plant health--Plant Protection Research and Development Office, Department of Agriculture, Ministry of Agriculture and Cooperatives Mr. Surapol Yinasawapun Chief, Plant Quarantine Research Group Ms. Prapassara Pimpan Head, Pesticide Research Group Ms. Srivisess Kessank Senior Agricultural Scientist, Plant Quarantine Research Group Ms. Oraphun Wisessang Plant Pathology Research Group Ms. Pornpimon Athipunyakom Plant Pathology Research Group Animal health--Department of Livestock Development, Ministry of Agriculture and Cooperatives Dr. Sirikarn Chotiprasartinthara Head, Bureau of Disease Control and Veterinary Services Dr. Pranee Panichabhongse Bureau of Disease Control and Veterinary Services Dr. Neppawan Buameethub Bureau of Disease Control and Veterinary Services Dr. Weerapong Thanapongtharm Bureau of Disease Control and Veterinary Services Dr. Laddawalaya Ratanakorn Bureau of Disease Control and Veterinary Services Dr. Adilak Lebnark Feed Quality Control Division Ms. Cherdhai Thiratinrat Director, Bureau of Quality Control of Livestock Products Ms. Naraya Tangsirisap Bureau of Quality Control of Livestock Products Mrs. Nitaya Nijthavorn Bureau of Quality Control of Livestock Products Mr. Kitipong Sirisuthanant Bureau of Quality Control of Livestock Products Mr. Siripong Suktavonjareonpon Bureau of Quality Control of Livestock Products Mrs. Tharntip Rugchat Chief, Foreign Relations Section Dr. Ronello Abila Southeast Asia Coordinator, OIE Dr. Alexandre Bouchot Technical Advisor, OIE Vietnam Plant health Mr. Dam Quoc Tru Deputy Director General, Plant Protection Department Mr. Nguyen Van Ung Director, Plant Quarantine Division Mr. Tu Director, Plant Quarantine Diagnosis Center Mr Le Duc Dong Director, Post-Entry Quarantine Station No. 1 Ms Le Thi Kim Oanh Director, Northern Pesticide Control Centre Animal health Mr. Dam Xuan Thanh Deputy Director General, Department of Animal Health Mr. Do Huu Dung Department of Animal Health Mr. Nguyen Phu Thai Quarantine system Ms. Nguyen Hoai Nam Head, Drug Management Division Mr. Ta Hoaung Long National Center for Veterinary Drugs and Bio-products, Control No. 1 (North) Mr. Do Huu Dung Head, Epidemiology Division Mr. Chu Van Tuat National Center for Hygiene Inspection, Control No. 1 (North) 63 References ADB (Asian Development Bank). 2010. Action Plan 2010-2015 for Improved SPS Handling in GMS Cross-Border Trade. Draft. FAO (Food and Agriculture Organization). 2009. Report on pesticide survey conducted in Sayabouly and Xiengkhouang provinces during March 2009. Integrated Pest Management. Rome. FAO. 2003. Food and Nutrition Paper No. 76. Rome. IPPC (International Plant Protection Convention). 2004. International Standards for Phytosanitary Measures No. 20 Guidelines for a Phytosanitary Import Regulatory System. FAO. www.ipcc.int. World Bank. 2009. Lao People's Democratic Republic: Sanitary and Phytosanitary Measures ­ Enhancing Trade, Food Safety, and Agricultural Health. East Asia and Pacific Region. Washington, D.C. World Bank. 2008. Project Appraisal Document on a Proposed Grant in the amount of US$6.8 Million to the Lao People`s Democratic Republic for a Trade Development Facility. Washington, D.C. World Bank. 2006a. Building Export Competitiveness in Laos. East Asia and the Pacific Region. Washington, D.C. World Bank. 2006b. Lao PDR Sanitary and Phytosanitary Standards Management: Action Plan for Capacity Building. Washington, D.C. World Bank. Official Gazette Database. Lao PDR. 64 Poverty Reduction and Economic Management Sector Department East Asia and Pacific Region The World Bank 1818 H Street, NW Washington, D.C. 20433 www.worldbank.org