Concept Paper

Project Number: 43309 November 2010

Royal Government of Cambodia: Provincial Roads Improvement Project

I. THE PROJECT A. Rationale

1. The project aims to rehabilitate 87 kilometers (km) of provincial roads in Prey Vang and Svay Rieng provinces to paved condition to provide a safer, cost-effective provincial road network with all-year access to markets and other social services for provincial centers of southeastern Cambodia. A new cross border facility (CBF) will be constructed at Prey Var-Mocva to facilitate efficient cross border transport and trade between Cambodia and Vietnam. The project will support a sustainable road maintenance regime in the Ministry of Public Works and Transport (MPWT), HIV/AIDS and human trafficking prevention program, and climate change adaptation measures. 2. Roads are the principal mode of transportation in Cambodia. The road network of approximately 39,600 km includes: (i) national roads (primary national highways) with a total length of about 2,100 km; (ii) provincial roads (secondary national highways) with a total length of about 9,500 km; and (iii) about 28,000 km of rural roads. Management of national and provincial roads is the responsibility of MPWT, whereas management of rural roads is the responsibility of the Ministry of Rural Development. 3. The remote rural economy is becoming increasingly dependent on the improved national road network, yet the provincial road network, with a paved ratio of 11%, continues to deteriorate because of the rapid growth in traffic, combined with a lack of maintenance financing, and poor road maintenance standards. National Road (NR) 13 that links NRs 1 and 8 in north-south direction and NR 314D linking NR 1 with CBF at Prey Var-Mocva are two such provincial roads1

. Though vital for transport within Prey Vang and Svay Rieng provinces and to cross-border transport and trade, these roads are unpaved with no all-year accessibility.

4. To enhance the regional transport and trade activities in Greater Mekong Subregion (GMS) corridors, Cambodia acceded to the GMS Cross-Border Transport Agreement (CBTA) in November 2001. One forward initiative to implement CBTA in Cambodia was the pilot implementation of a CBF at Bavet through a bilateral agreement between Cambodia and Vietnam in 2003. Furthermore, the two Governments agreed on expanding the quota for vehicles for cross border transport from 40 to 150 on 17 March 2009. It is expected that the CBF planned for Prey Var-Mocva will further supplement cross border transport and trade in southeastern Cambodia. 5. As a consequence of relatively rapid economic development, overloading of cargo vehicles has become a severe cause of road damage in Cambodia in the past 5 years. This is also an issue on provincial roads as a result of overloaded trucks that haul agricultural products and carry quarry materials for construction. While the Asian Development Bank (ADB) is currently supporting an axle load control program for national roads, the project will expand its coverage, including axle load control on some provincial roads. 6. Cambodia has one of the highest incidences of road accidents in the world with 12 fatalities per 10,000 vehicles in 2009. This is a 30% decrease from 2007, but still represents the highest accident rate in Southeast Asia. Thus, road safety continues to be a major sector concern, especially with the increasing growth of traffic in provincial and rural areas. In line with the national umbrella programs for road safety and ADB's ongoing road safety support through MPWT, the project will assist MPWT in designing and managing a road safety program for Prey Vang and Svay Rieng provinces. Additionally, given the natural disasters that Cambodia has faced in recent years, particularly the frequent flooding during the wet season, the need to address climate change considerations is essential. The project therefore includes a number of climate change adaptation measures, including road design features and plans for disaster preparedness, mitigation, and response. 7. ADB's country operations business plan (COBP) 2009–2012 for Cambodia aims to foster

1 As noted in para. 2, provincial roads (secondary national highways) in Cambodia are labeled as national roads with

a 2- and 3-digit numbering system; the primary national highways are labeled using a single digit system.

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pro-poor and socially inclusive growth by enhancing environmentally sustainable agriculture and rural development. In light of the indirect impacts of the global economic crisis, the COBP seeks to do this by diversifying rural growth and bolstering poverty reduction efforts.2

Improving provincial and rural roads is a core means of promoting rural growth and reducing poverty.

8. Although the geographic focus of ADB’s rural livelihood efforts has been the Tonle Sap Basin, which has a large proportion of Cambodia's rural poor, this project’s geographical focus is on Prey Vang and Svay Rieng, two provinces with very high poverty levels of 37 and 36 % respectively (national poverty level 35%). The project fits well geographically with the southern economic corridor of the Greater Mekong Subregion as a feeder route, and aligns well with the Government’s strategy on promoting exports of rice (the new rice export policy) and rubber, the production of which would be supported by the project road and CBF improvements. The Vaico Irrigation Development Project (financed by Chinese Government, for approval in 2010), a canal that connects to Mekong River in north-south direction across Prey Vang and Svay Rieng provinces, is also expected to boost agriculture in the area. Therefore, these two projects are expected to be complementary. 9. The COBP includes four road sector projects in the program, all of which are consistent with the sector assistance program evaluation recommendation to shift its focus towards rehabilitating provincial and rural roads, rather than national roads. For example, the first ADB-financed provincial road project was approved in 2009 and will improve NR 56.3 ADB approved the first rural road project in 2010, which will rehabilitate and maintain connecting rural roads to improve the rural poor’s access to markets and social services. A second rural road project is programmed for 2013 to supplement the first.4

10. The government's poverty reduction strategy for 2009–2013 (the Rectangular Strategy for Growth, Employment, Equity and Efficiency, Phase II) emphasizes generating economic growth through the private sector, with rehabilitation and development of the country's physical infrastructure as a necessary precondition.5

The project supports this strategy, particularly as it enhances connectivity, economic exchange, and access to social services and cross-border transport and trade in remote areas of southeastern Cambodia.

B. Impact, Outcome, and Outputs

11. The impact of the project is improved access to markets, jobs, social services, and cross border transport and trade in Prey Vang and Svay Rieng provinces. This impact is related to the sector results framework of Cambodia Transport Sector Assessment, Strategy, and Roadmap.6

12. The outcome of the project is the safe, cost effective, all-year access provided in the road network of provincial agricultural areas of Prey Vang and Svay Rieng provinces. 13. There are five outputs in the project. First output is civil works to (i) rehabilitate to paved condition NR 13 connecting NRs 8 and 1, between Komchay Mear and Prosot, and NR 314D from Prosot to the border of Vietnam at Prey Var-Mocva; and (ii) construct a new CBF at Prey Var-Mocva. This output has associated detail design and implementation supervision (DDIS) consulting services, and land acquisition and resettlement required for roads and the CBF. 14. Second output is improved road asset management through axle load control at strategic locations of national and provincial roads, to expand the ongoing axle load control programs of MPWT. 2 ADB. 2008. Country Operations Business Plan: Cambodia, 2009–2012. Manila. 3 ADB. 2009. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the

Kingdom of Cambodia for the Greater Mekong Subregion: Cambodia Northwest Provincial Road Improvement Project. Manila. (Loan 2539-CAM).

4 The first project is: ADB. 2010. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Kingdom of Cambodia for Rural Roads Improvement Project. Manila (Loan 2670-CAM). It will be supplemented by a proposed Second Rural Roads Improvement Project, for approval in 2013.

5 Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister of the Kingdom of Cambodia. 2008. Rectangular Strategy for Growth, Employment, Equity and Efficiency, Phase II. Phnom Penh.

6 ADB. 2010 (in preparation). Cambodia Transport Sector Assessment, Strategy, and Roadmap. Manila

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15. Third output is increased road safety and safeguards by implementing: (a) a community-based road safety awareness program in line with the national program; (b) an HIV/AIDS and human trafficking prevention program; and (c) a sex-disaggregated baseline socioeconomic survey of beneficiaries. 16. Fourth output is climate change adaptation to assess vulnerability to climate change in NRs and vulnerability mapping for NRs to improve planning for climate changes by introducing ecosystem-based adaptation strategies. The output will also develop emergency management planning for NRs and planning water capture and storage systems. 17. Fifth output is efficient project management support to MPWT. Overall, the project has many innovative features. Some of these features are, road asset management, social safeguards and road safety, effective gender mainstreaming, and climate change adaptation. With the CBF at Prey-Var Mocva, the project has regional cooperation features as well. C. Investment and Financing Plans 18. The tentative project investment cost is estimated at $71 million, with civil works costing about $40 million. The total cost includes taxes and duties, physical and price contingencies, and interest and other charges during implementation. The source of ADB financing is through the Asian Development Fund. The other financing sources are not yet known.

Table 1: Tentative Investment and Financing Plan

Item Cost

($ million)

Financing ($ million)

ADB Cofinanciers (to be determined) Government

Civil works 39.50 14.50 25.00 Road asset management 2.00 2.00 Road safety and safeguards 1.80 1.80 Climate change adaptation 5.00 5.00 Project management 2.30 2.30 Contingencies 11.90 11.90 Taxes and duties 7.00 7.00 Interest during construction 1.50 1.50 Total 71.00 34.00 30.00 7.00 Percentage 100.00 47.90 42.30 9.80 D. Indicative Implementation Arrangements

19. The MPWT will be the executing agency of the project. The project preparatory technical assistance (TA) fact-finding confirmed project management unit 3 (PMU3) as a part of the General Department of Public Works of MPWT will be the implementing agency of the project preparatory TA. MPWT plans to make PMU3 a permanent division within MPWT in 2011. It is expected that civil works contracts for road rehabilitation and CBF rehabilitation will follow International Competitive Bidding as the mode of procurement. Equipment for axle load control will follow National Competitive Bidding or Limited International Bidding, and still smaller procurement packages for project management vehicles etc. will be under shopping. Advance contracting and retroactive financing will be considered for project management vehicles and office furniture. As for consulting services, it is planned to recruit firms for activities of DDIS, road asset management, climate change adaptation, road safety, and HIV/AIDS and human trafficking prevention. Advance action for recruitment of DDIS consultants will be considered. The project will be implemented over 5 years, from 2012 to 2017.

II. DUE DILIGENCE REQUIRED

20. Due diligence required include the following: (i) Economic and financial. Economic viability will be confirmed during the project

preparatory TA. (ii) Governance. The project preparatory TA will look into public financial

management, procurement, anticorruption, policy and legal, capacity, and other institutional issues and mechanisms.

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(iii) Poverty and social. There are indirect poverty reduction impacts. Major direct social impacts are HIV/AIDS, human trafficking, road safety as well as inclusion of women in emergency management in the project area. A poverty and social/gender analysis will be undertaken during the project preparatory TA. Social and gender specialists will be hired for this purpose to prepare an analysis report and a gender action plan based on recommendations for maximizing the benefits for women.

(iv) Safeguards. It is envisaged that there will be limited or no impacts on indigenous peoples. Also, minor environment impacts will be likely, due to site works by dust and emissions. Therefore, the project may be category B for indigenous peoples and environment. For involuntary resettlement, since there is a significant number of affected persons, the project category is likely to be A.

21. Major risk in the project is that is associated with governance. This will be mitigated and managed by a good governance framework developed during the project preparatory TA.

III. PROCESSING PLAN

A. Risk Categorization 22. The project is an investment project with a loan amount of $71 million, Further, ADB has sound past experience in Cambodia in road sector projects. MPWT and PMU3 also have a reasonable capacity with experience in ADB-financed projects. However, project’s safeguard categorization is A as its resettlement effects are over 1,000 households, almost all of which are likely partially affected households. Thus it is considered a complex project.

B. Resource Requirements 23. The project team will be comprised of a senior transport specialist/mission leader, a transport economist, an environment specialist, a social development specialist, and a project analyst. About 80 person-weeks of internal staff resources will be required for timely processing. A project preparatory TA is required to design the project. The project preparatory TA requirements are in Appendix 5. C. Processing Schedule 24. Table 2 shows the major milestones of the project up to loan effectiveness.

Table 2: Proposed Processing Schedule Milestones Expected Completion Date Concept paper meeting October 2010 Reconnaissance mission October 2010 Peer review November 2010 Mobilization of TA consultants March 2011 Loan fact-finding mission July 2011 Management review meeting October 2011 Loan negotiations November 2011 Board consideration December 2011 Loan effectiveness April 2012 Source: Asian Development Bank estimates

IV. KEY ISSUES

25. There are no key issues requiring due diligence and support from other ADB teams. However, during project preparatory TA it is necessary to confirm cofinancing in the amount of about $30 million. For this, ADB has already initiated discussion with Korea Eximbank. Discussions with Nordic Development Fund for financing climate change output will happen during the pr0oject preparatory TA implementation.

Appendix 1 5

BASIC PROJECT INFORMATION Aspects Arrangements Modality Project loan

Financing ADB financing of $34 million through an ADF loan; parallel co-financing will be

sought for about $30 million; Government financing is likely to be the remaining amount of about $7 million.

COBP/RCOBP ADB. 2008. Country Operations Business Plan: Cambodia. Manila.

Classification Sector (subsectors): Transport and ICT (road transport) Themes (subthemes): economic growth, social development, capacity development, climate change adaptation (widening access to markets and economic opportunities, disaster risk management), regional cooperation and integration

Targeting classification: general intervention Gender mainstreaming category: effective gender mainstreaming Location impact: rural (high), urban (low), national (medium), regional/cross country (medium) Safeguards: Involuntary resettlement: A; indigenous peoples: B; environment: B

Risk categorization complex

Partnership(s) During the project preparatory TA, ADB will seek co-financing for road improvement from bilateral partners like Korea Eximbank, and Nordic Development Fund’s financing for the climate change adaptation output.

Use of a PBA None

Parallel PIU None

Department and division

Southeast Asia Department, Transport and Urban Development Division

Mission leader and members

Mission Leader: S. Date, Senior Transport Specialist Mission members: P. Broch, Senior Transport Economist; M. Buendia, Social Development Specialist (Resettlement); K. H. Leung, Financial Analysis Specialist; T. Mella, Operations Officer; N. Ouk, Senior Project Implementation Officer; S. Ouk, Social Safeguard Officer; A. Velasquez, Safeguards Specialist (Environment) and P. Villanueva, Administrative Assistant

ADB = Asian Development Bank, ADF = Asian Development Fund, COBP = country operations business plan, DMC = developing member country, PBA = programmatic based approach, PIU = project implementation unit, RCOBP = regional cooperation operations business plan, TA = technical assistance.

6

A

ppendix 2

PROBLEM TREE

Access to markets, jobs, social services, and cross border is inadequate in Prey Vang and Svay Rieng

Transport in Prey Vang and Svay Rieng provinces is inefficient, unsafe, and inaccessible all year through

Overloading in provincial roads induce severe damage

Weak asset management in provincial roads

Road accident rates in provincial roads in Prey Vang and Svay Rieng are high

CBF at Prey Var-Mocva in poor condition to allow agricultural products to pass efficiently between Cambodia and Vietnam

Climate changes are increasingly frequent and damage road assets and affect livelihood of rural residents

More permanent weigh stations are needed to control overloading

Provincial and rural communities need road safety education

MPWT lacks funds to rehabilitate unpaved provincial roads in Prey Vang and Svay Rieng

MPWT lacks funds to rehabilitate CBF at Prey Var-Mocva

Ground water is not sufficient to manage for long droughts

Government lacks awareness and capacity on emergency management

Most traffic on NR314D is overloaded cargo trucks with agricultural products to and from CBF at Prey Var-Mocva

Agricultural cargo accessing CBF at Prey Var-Mocva is slow by unpaved NR314D

CBF= cross border facility, MPWT = Ministry of Public Works and Transport, NR = national road.

Appendix 3 7

PRELIMINARY DESIGN AND MONITORING FRAMEWORK

Design Summary Performance Targets

and Indicators Data Sources and

Reporting Mechanisms Assumptions

and Risks Impact Improved access to markets, jobs, social services, and cross border transport and trade in Prey Vang and Svay Rieng provinces

Volume of cargo traffic at CBF increases by 30% from 2012 to 2019. Volume of agricultural products transported on project roads increases by 100% from 2012 to 2019. By 2019, in Prey Vang and Svay Rieng provinces: (i) economic activity rate

of 80% (ages15–64, both sexes) increases to 85%;

(ii) child mortality rate of 83 deaths per 1,000 live births decreases to 50;

(iii) maternity mortality rate of 461 deaths per 100,000 live births decreases to 230; and

(iv) rural girls’ lower secondary net enrollment rate increases from 30.8% in school year 2009/2010 to 40%

National and regional statistics: NIS Field surveys: MPWT Population census: NIS (adjusted to target years) Health information system and Cambodia Demographic and Health Survey: NIS Education management information system: MOE

Assumptions Increased availability and quality of transport services following the rehabilitation of project roads and CBF Agriculture related and other industries increase in the project area. Improved CBF operates efficiently in line with bi-lateral agreements Risks Unexpected long-term new epidemic hits Cambodia. The project roads deteriorate because of insufficient funds for road maintenance programs.

Outcome Safe, cost effective, all-year access provided in the road network of provincial agricultural areas of Prey Vang and Svay Rieng provinces

Road accidents in the project area decrease by 20% from 2009 (1,469 accidents) to 2016 Average travel times on project roads decrease by 25% from 2012 to 2016 Average trip lengths on project roads increase by 40% from 2012 to 2016 Share of the paved provincial road network increases from 11% in 2010 to 12% in 2016 Average number of days per year that the project roads are accessible increases from 200 days in 2012 to 365 days in 2016.

National road safety action plan annual report: NRSC Field traffic surveys: MPWT Field traffic surveys: MPWT Provincial and national trade statistics, MPWT's annual reports: MPWT MPWT’s annual reports: MPWT

Assumption The government sustains its commitment to provincial infrastructure development. Cambodia and Vietnam governments agree to develop Prey Var-Mocva as a supplementary gateway for Bavet. Risk Project roads suffer severe damage from unexpectedly severe natural disasters.

Outputs 1. Project roads

87 km of provincial roads

Monthly and quarterly project

Assumptions Continued government

8 Appendix 3

Design Summary Performance Targets

and Indicators Data Sources and

Reporting Mechanisms Assumptions

and Risks and CBF rehabilitated 2. Improved MPWT road asset management 3. Increased road safety and awareness of potential social problems 4. Reduced vulnerability of project roads to climate change 5. Efficient project management

and CBF rehabilitated by 2016 Average roughness of project roads in 2012 decreases from 6–14 to 2–3 in 2016. Violations of overloaded trucks in the southeastern Cambodia are reduced by 60% from 2012 to 2016. Annual operation and maintenance budget for project roads increases from $350 per km in 2010 to $400 per km in 2016. 40% of project beneficiaries in project provinces and all contractors' personnel participate in an HIV/AIDS awareness and human trafficking prevention program before and during civil works construction, by 2016. Sex-disaggregated baseline socioeconomic data established by 2013 At least 2 female facilitators will conduct road safety awareness program in communes. All residents at risk are evacuated within 72 hours after a typhoon occurs in the pilot province for emergency management, 2016 onwards. Vulnerability mapping will integrate gender issues. Emergency management plan will include women as agents and beneficiaries. PMU3 personnel increased from 12 (7 male, 5 female) in 2010 to

progress reports: MPWT Monitoring reports: MPWT Quarterly progress reports: MPWT; and project completion report: ADB Project review missions: ADB Project accounts: MPWT MPWT annual reports: MPWT JICA Axle Load Control Program reports: JICA Quarterly progress reports: MPWT; and project completion report: ADB MPWT annual reports: MPWT National health statistics: NIS Quarterly progress reports: MPWT; and project completion report: ADB Quarterly progress reports: MPWT; and project completion report: ADB

commitment to overloading control and cross-border transport and trade Targeted communities apply road safety principles Targeted communities apply HIV/AIDS awareness and prevention education Risks Recruitment of consultants and contractors is delayed by external factors. Increased construction costs reduce the scope of works The number of natural disasters exceeds predictions Trained personnel in the PMU3 leave MPWT or are replaced

Appendix 3 9

Design Summary Performance Targets

and Indicators Data Sources and

Reporting Mechanisms Assumptions

and Risks 22 (14 male, 8 female) in 2016 All PMU3 staff (current 7 male, 5 female) participates in training on social and gender issues, by 2015 (likely 22 with 14 male, 8 female).

Activities with Milestones Inputs 1. Civil works 1.1 MPWT selects detailed design and construction supervision

consultants: by March 2012 1.2 MPWT prepares tender documents and selects contractors: by

October 2012 1.3 MPWT completes the land acquisition and resettlement: by 2013 1.4 MPWT completes 87 km of road and CBF rehabilitation: by 2016 2. Road asset management 2.1 MPWT completes weigh station construction: by 2014 2.2 MPWT completes procurement of weigh station equipment and

installation: by 2014 2.3 MPWT implements new weigh stations: by 2015 3. Road safety and safeguards 3.1. MPWT implements the road safety program: by 2015 3.2. MPWT implements the HIV/AIDS awareness and human trafficking

prevention program: by 2015 3.3 MPWT completes the baseline socioeconomic survey with sex-

disaggregated data: by 2013 4. Climate change adaptation 4.1 MPWT completes the detailed vulnerability map for climate change

for project provinces: by 2016. 4.2 MPWT completes the ecosystem based climate change adaptation

strategies: by 2016 4.3 MPWT completes a pilot climate monitoring system-based road

maintenance and management program: by 2016 4.4 MPWT establishes a pilot emergency management system for Prey

Vang and Svay Rieng, and operates it: by 2016 4.5 MPWT installs the pilot early warning system the project province (of

4.4): by 2016 4.6 Completion of the plan for water capture and storage systems for the

project province: by 2016 5. Efficient project management 5.1 MPWT completes training on social and gender issues for all PMU3

staff: by 2014 5.2 PMU3 recruits 10 new staff for to increase its efficiency: by 2016 5.3 MPWT manages the project efficiently: by 2016

1. Civil works: 1.1 Improving 87 km of provincial

roads and CBF – $39.5 million 1.2 Land acquisition and

resettlement – $1.9 million 1.3 Consulting services for design

and implementation supervision

– $5.5 million 2. Road asset management – $2.0 million 3. Road safety and safeguards – $1.8 million 4. Climate change adaptation – $5.0 million 5. Project management – $2.3 million 6. Contingencies – $11.9 million 7. Financial charges during

implementation – $1.50 million ADB: $34.0 million Government: $7.0 million Cofinancing: $30.0 million Beneficiaries: 200,000 persons

ADB = Asian Development Bank, CBF = cross-border facility, JICA = Japan International Cooperation Agency, km = kilometer, MOE = Ministry of Education, MPWT = Ministry of Public Works and Transport, NIS = National Institute of Statistics, NRSC = National Road Safety Committee; PMU = project management unit Source: Asian Development Bank estimates

10 Appendix 4

INITIAL POVERTY AND SOCIAL ANALYSIS

Country/Project Title: CAM: Provincial Roads Improvement Project Project Number: 43309 Month/Year October 2010

Lending/Financing Modality: Project loan, ADF Department/

Division: SERD/SETU

I. POVERTY ISSUES

A. Links to the National Poverty Reduction Strategy and Country Partnership Strategy

1. Based on the country poverty assessment, the country partnership strategy, and the sector analysis, describe how the project would directly or indirectly contribute to poverty reduction and how it is linked to the poverty reduction strategy of the partner country. The government's poverty reduction strategy for 2009–2013 (the Rectangular Strategy for Growth, Employment, Equity and Efficiency, Phase II) emphasizes generating economic growth through the private sector, with rehabilitation and development of the country's physical infrastructure as a necessary precondition. The project supports this strategy, particularly as it enhances connectivity, economic exchange, and access to social services and cross-border transport and trade in remote areas of southeastern Cambodia. Thus, it is included in the Country Operations and Business Plan 2009–2012 as a core project in the transport sector. B. Targeting Classification 1. Select the targeting classification of the project: General Intervention Individual or Household (TI-H) Geographic (TI-G) Non-Income MDGs (TI-M1, M2, etc.) 2. Explain the basis for the targeting classification: The project does not have a direct impact on poverty, thus classified as general intervention. C. Poverty Analysis 1. If the project is classified as TI-H, or if it is policy-based, what type of poverty impact analysis is needed? 2. What resources are allocated to the project preparatory technical assistance (TA) and due diligence? The project preparatory TA consulting firm will have qualified international and national experts to carry out social impact assessment, resettlement due diligence and impact assessment. Budget will be allocated for social surveys, consultation, and disclosure activities. 3. If GI, is there any opportunity for pro-poor design (e.g., social inclusion subcomponents, cross subsidy, pro-poor governance, and pro-poor growth)? Likely.

II. SOCIAL DEVELOPMENT ISSUES A. Initial Social Analysis Based on existing information: 1. Who are the potential primary beneficiaries of the project? How do the poor and the socially excluded benefit from the project? Communities living along the road as it will result to improved access to markets, jobs, social services, and cross border transport and trade in Prey Vang and Svay Rieng provinces. 2. What are the potential needs of beneficiaries in relation to the proposed project? To save time and money on transportation through improved roads. To allow them to transport their goods/ produce faster and at reduced cost.

Appendix 4 11

3. What are the potential constraints in accessing the proposed benefits and services, and how will the project address them? Meaningful consultations will be carried out during the project preparatory TA. Views and concerns of women and vulnerable groups will be elicited with regard to access to markets, jobs and social services; social risks; resettlement and rehabilitation. To ensure that women and vulnerable groups will be heard, separate meetings will be held with them. Improved roads may also result to speculators/developers buying land from the community, which is considered a social risk that comes along with any development interventions. The project preparatory TA will be required to design and implement a public information program to inform the local communities not only about the project benefits but also risks such as being bought out by developers. B. Consultation and Participation

1. Indicate the potential initial stakeholders. Local communities, road users, local government. 2. What type of consultation and participation is required during the project preparatory TA or project processing. Public meetings, focus group discussions. Meetings with non-government organizations and community-based organizations. 3. What level of participation is envisaged for project design? Information sharing Consultation Collaborative decision making Empowerment 4. Will a consultation and participation plan be prepared? Yes No Please explain. C. Gender and Development

1. What are the key gender issues in the sector and subsector that are likely to be relevant to this project or program? The key gender issues that the project will impact directly are: i) employment opportunities for women generated through demand for local labor in civil works as well as in rural road maintenance; ii) increasing awareness on and prevention of HIV/AIDS and trafficking in girls and women; iii) increasing awareness and action on road security and safety issues impacting local populations, including women and children.; as well as iv) gender sensitive resettlement plans so that affected households secure better access to compensation resources and livelihood activities. Other indirect benefits include increased women’s access to social benefits of improved transportation services, including better access to health and education services and access to markets and increased trading opportunities. A Gender and Social Development Specialist will be recruited under the project preparatory TA to undertake a poverty, gender and social analysis and prepare a gender action plan to maximize project benefits for women. Also, this will establish the impacts of the project on the poor residents and design mechanisms to maximize the benefits for them. 2. Does the proposed project or program have the potential to promote gender equality and/or women’s empowerment by improving women’s access to and use of opportunities, services, resources, assets, and participation in decision making? Yes No Please explain. 3. Could the proposed project have an adverse impact on women and/or girls or widen gender inequality? Yes No Please explain

III. SOCIAL SAFEGUARD ISSUES AND OTHER SOCIAL RISKS

Issue Nature of Social Issue Significant/Limited/ No Impact/Not Known

Plan or Other Action Required

Involun ta ry Res e ttlement

Acquisition of land will result to impact on houses and shops that are close to the edge of the road.

Significant Full Plan Short Plan Resettlement

Framework No Action Uncertain

Ind igenous Peoples

There are no reported minority groups in Svay

Plan Other Action

12 Appendix 4

Issue Nature of Social Issue Significant/Limited/ No Impact/Not Known

Plan or Other Action Required

Rieng Province. To be verified during PPTA.

Indigenous Peoples Framework

No Action Uncertain

Labor Employment Opportunities

Labor Retrenchment Core Labor Standards

Plan Other Action No Action Uncertain

Affordability Action No Action Uncertain

Other Risks and/or Vulnerabilities

HIV/AIDS Human Trafficking Others (conflict, political instability, etc.), please specify.

Speculators/land developers

Social Action Plan to be prepared as per result of the Social Impact Assessment to be carried out during PPTA. The project preparatory TA will be required to design and implement a public information program to inform the local communities, not only about the project benefits, but also risks such as being bought out by developers.

Plan Other Action No Action Uncertain

IV. PROJECT PREPARATORY TECHNICAL ASSISTANCE/DUE DILIGENCE RESOURCE REQUIREMENT 1. Do the terms of reference for the project preparatory TA (or other due diligence) include poverty, social, and gender

analysis and the relevant specialist(s)? Yes No If no, please explain why.

2. Are resources (consultants, survey budget, and workshop) allocated for conducting poverty, social, and/or gender

analysis, and C&P during the project preparatory TA or due diligence? Yes No If no, please explain why.

Appendix 5 13

PROJECT PREPARATORY TECHNICAL ASSISTANCE A. Justification

1. The Government of Cambodia has requested the Asian Development Bank (ADB) project preparatory technical assistance (TA) to prepare the Provincial Roads Improvement Project. This project is a priority project in the Government’s key infrastructure development agenda as it provides all-year access to provincial and rural agricultural communities of Prey Vang and Svay Rieng provinces of southeastern Cambodia. Thus the TA was included in ADB's country operations business plan 2009–2012 for Cambodia. B. Major Outputs and Activities

2. Major activities of the TA are: (i) inception; (ii) feasibility study; and (iii) project design. These include: (a) for inception, the preparatory activities; (b) for the feasibility study, the activities for project preparation, which will cover engineering, economic, social, and environmental aspects. The engineering study will include geological, topographical, hydrological surveys, preliminary pavement design, detailed cost estimates, and implementation plan. The economic study will conduct traffic surveys and assess the economic feasibility of the project. The social and environmental study will prepare reports on environmental assessment, poverty and social assessment, and resettlement plans; and (c) for project design, preparation of drafts of the report and recommendation of the president, and the project administration manual. The major outputs and activities are summarized in Table A5.1.

Table A5.1: Summary of Major Outputs and Activities

Major Activities Expected

Completion Date Major Outputs Expected

Completion Date 1. Inception April 2011 Inception report April 2011 1.1 Conduct stakeholder consultations (should accompany

a tripartite meeting)

1.2 Establish TA methodology and develop work program

2. Feasibility study July 2011 Mid-term report July 2011 2.1 Conduct engineering study to

prepare preliminary engineering design and detailed cost estimate

(this report may contain interim results of the feasibility study as of July 2011; it should accompany a tripartite meeting)

2.2 Conduct economic study to assess economic feasibility

2.3 Conduct environment and social studies to prepare IEE, RPs, and social assessment reports

3. Project design September 2011 Draft final report September 2011 3.1 Prepare draft RRP 3.2 Prepare draft PAM

(should accompany a tripartite meeting)

Final report October 2011 IEE= initial environment examination; PAM= project administration manual; RP= resettlement plan; RRP= report and recommendation of the president; TA= technical assistance Source: Asian Development Bank estimates C. Cost Estimate and Proposed Financing Arrangement

3. The TA is estimated to cost $1,100,000 equivalent, of which $1,000,000 equivalent will be financed on a grant basis by ADB's Technical Assistance Special Fund (TASF-IV). ADB pursued Japan Fund for Poverty Reduction, but it was not currently available for Cambodia’s road sector projects. As a result, TASF financing is being requested to support the TA. The

14 Appendix 5

Government was advised that approval of the TA does not commit ADB to financing any ensuing project 4. The Government will finance the remaining $100,000 equivalent in kind. The detailed cost estimate is presented in Table A5.2. 5. Disbursements under the TA will be done in accordance with the ADB’s Technical Assistance Disbursement Handbook (May 2010, as amended time to time). The TA consultants will turnover the equipment to MPWT smoothly after the TA completion.

Table A5.2: Cost Estimates and Financing Plan ($'000)

Item Total Cost

A. ADB Financinga 1. Consultants a. Remuneration and per diem i. International consultants (25 person-months) 500,000.0 ii. National consultants (43 person-months) 215,000.0 b. International and local travel 60,000.0 c. Reports and communications 15,000.0 2. Equipment (computer, printer, etc.)b 15,000.0 3. Workshops, training, seminars, and conferencesc a. Tri-partite meetings 10,000.0 4. Vehicled 21,000.0 5. Surveys 80,000.0 6. Miscellaneous administration and support costs 10,000.0 7. Representative for contract negotiations 4,000.0 8. Contingencies 70,000.0 Subtotal (A) 1,000,000.0 B. Government Financing 1. Office accommodation and transport 25,000.0 2. Remuneration and per diem of counterpart staff 60,000.0 3. Contingencies 15,000.0 Subtotal (B) 100,000.0 Total 1,100,000.0

a Financed by the Asian Development Bank's Technical Assistance Special Fund (TASF-IV) b Equipment

Type Quantity Cost 2 desktop computers with software,1 color laser printer, and 1 color copy machine Lump sum $15,000

c Workshops, training, seminars, and conferences Purpose Venue

Tri-partite meetings (3) Phnom Penh d Vehicle

Justify the use of and the need to purchase or lease a vehicle Expected length of use Lease of vehicle by consultant for field work 7 months

Source: Asian development Bank estimates D. Consulting Services

6. An international consulting firm will be engaged to implement the TA. The TA will require 10 positions in international and 9 positions in national consultants. The requirement of international consultants is 25 person months, 43 person-months for national consultants. ADB will select and engage the consulting firm in accordance with ADB’s Guidelines on the Use of

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Consultants, (2010, as amended from time to time) and other arrangements satisfactory to ADB. ADB will use the quality- and cost- based selection (quality:cost ratio 80:20) with full technical proposal to select the consulting firm. Table A5.3 below shows the summary of consulting services requirement.

Table A5.3: Summary of Consulting Services Requirement International Name of Positions

Person- months

National Name of Positions

Person- months

Highway engineer/Team Leader 7 Highway engineer/Deputy Team Leader 8 Transport economist 2 Transport economist 5 Pavement design engineer 1 Environment specialist 4 Environment specialist 2 Resettlement specialist 8 Resettlement specialist 2 Road safety specialist 4 Social safeguards specialist 2 Axle load control specialist 4 Road safety specialist 2 Climate change specialist 4 Axle load control specialist 2 Labor and gender specialist 3 Climate change specialist 2 Procurement specialist 3 Procurement specialist 3 Total 25 43 Source: Asian development Bank estimates 7. The outline terms of references for the project preparatory TA consultants are described in paras. 7–15. 8. The team leader, as highway engineer, with his national counterpart deputy will coordinate all TA activities within the team and also with all stakeholders. These two experts will conduct the engineering study on proposed roads national road (NR) 13 and NR 314D, and cross border facility (CBF) at Prey Var-Mocva to conduct their preliminary design for road and CBF rehabilitation. Road design should be within the existing construction limits, and no widening or realignment. They will prepare a detailed plan for implementation of the project, including civil works, consulting services and other necessary contracts, and procurement method adopted. Also, they will prepare a detailed cost estimate for the entire project and draft the detailed terms of reference (TOR) for all consultants required for project implementation. The international pavement design engineer will assist the above two experts to complete the preliminary pavement design. 9. The international and national transport economists will conduct economic analysis for NR 13 and NR 314D, and the CBF, and conduct risk and sensitivity analyses. They will also draft the benefit monitoring framework for the ensuing project. 10. The international and national environment specialists will perform an environmental assessment of the proposed road’s environmental impacts to comply with both the Government’s and ADB’s safeguard requirements, recommend on required mitigating measures and draft the environment management plan (EMP) for civil works implemented under the project, and recommend on implementation and monitoring of the EMP. 11. The international resettlement specialist with the national counterpart will assess resettlement impacts and prepare the resettlement plans for the roads and the CBF. The international social safeguards specialist will conduct poverty and social and indigenous peoples impact assessments and develop a program to raise awareness of HIV/AIDS and human trafficking in project construction camps and among the project road-side population. Further, this expert, with the national labor and gender specialist will prepare a labor and gender action plan for the project for gender mainstreaming.

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12. The international and national road safety specialist with the experts of 10 above, will prepare a community-based road safety program for the project area in line with the national road safety program, with gender participation. They will prepare the TOR for the road safety program consulting services. 13. The international and national axle load control specialists will review the current program for over-loading control for NRs, and propose improvements, along with preliminary designs of two new permanent weigh stations on strategic locations of NRs. 14. The international and national climate change specialists will assess the needs for climate change adaptation measures including disaster mitigation, mainly for floods. They will propose to the team leader climate proofing design for roads and design a disaster mitigation plan for MPWT road network with more operational emphasis and participation of communities. 15. The international and national procurement specialists will adequately assess the executing agency’s capacity, and suggest remedial action plan to build the agency capacity to minimize procurement and financial management risks, prepare project’s procurement plan and indicative implementation schedule with proposed sequencing of consultant recruitment and procurement bidding and awarding. Also, they will assist the agency in advance action in consultant recruitment and advance procurement, after the management review meeting. 16. The general qualifications required for all specialists are a university degree and a minimum of 10 years experience in the relevant field of expertise, and geographical experience. In the case of the team leader, the team leadership experience of 15 years is required. E. Implementation Arrangements

17. The Ministry of Public Works and Transport (MPWT) will be the executing agency of the TA. The project management unit 3 (PMU3), will be the implementing agency of the executing agency. PMU3, the implementing agency for three ongoing ADB-financed road sector projects, is familiar with implementation activities. MPWT, along with the Ministry of Economy and Finance, the oversight agency or the Borrower of the ensuing loan, will make in-kind contributions of office accommodation, and other inputs of staff salaries, per diem, transport, etc. to support the TA. 18. The proposed TA processing and implementation schedule is listed in Table A5.4.

Table A5.4: Proposed Technical Assistance Processing and Implementation Schedule Major Milestones Expected Completion Date TA approval November 2010 Short listing of consultants January 2011 Approval of technical and financial proposals March 2011 Inception April 2011 Mid-term review July 2011 Submission of TA draft Final Report September 2011 Final review and submission of TA Final Report October 2011 Loan fact-finding mission October 2011 TA physical closing date September 2012 TA financial closing date December 2012 TA= technical assistance Source: Asian Development Bank