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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 roads 1. 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.
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.
2
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.
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
3
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.
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.
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.
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.
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.
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
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.
Location impact: rural (high), urban (low), national (medium), regional/cross country
(medium)
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.
Department and Southeast Asia Department, Transport and Urban Development Division
division
Mission leader and Mission Leader: S. Date, Senior Transport Specialist
members 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.
PROBLEM TREE
6
Appendix 2
Access to markets, jobs, social services, and cross
border is inadequate in Prey Vang and Svay Rieng
Overloading in Road accident Weak asset Agricultural CBF at Prey Climate changes
provincial roads rates in provincial management in cargo accessing Var-Mocva in are increasingly
induce severe roads in Prey Vang provincial roads CBF at Prey poor condition to frequent and
damage and Svay Rieng are Var-Mocva is allow agricultural damage road
high slow by unpaved products to pass assets and
NR314D efficiently affect livelihood
between of rural residents
Cambodia and
More permanent Vietnam
weigh stations Provincial and MPWT lacks
are needed to rural funds to
control communities rehabilitate
overloading need road safety unpaved MPWT lacks
education provincial roads Most traffic on funds to
in Prey Vang and NR314D is rehabilitate CBF
Svay Rieng overloaded at Prey Var-
cargo trucks Mocva
with agricultural
products to and
from CBF at
Prey Var-Mocva Ground water is Government
not sufficient to lacks awareness
manage for long and capacity on
droughts emergency
management
CBF= cross border facility, MPWT = Ministry of Public Works and Transport, NR = national road.
Appendix 3 7
Sex-disaggregated
baseline socioeconomic
data established by 2013
At least 2 female
facilitators will conduct
road safety awareness
program in communes. Quarterly progress reports:
MPWT; and project
4. Reduced All residents at risk are completion report: ADB
vulnerability of project evacuated within 72 hours
roads to climate after a typhoon occurs in
change the pilot province for
emergency management,
2016 onwards.
Emergency management
plan will include women
as agents and
beneficiaries. Quarterly progress reports:
MPWT; and project
5. Efficient project PMU3 personnel completion report: ADB
management increased from 12 (7
male, 5 female) in 2010 to
Appendix 3 9
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
Lending/Financing Department/
Project loan, ADF SERD/SETU
Modality: Division:
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.
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.
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.
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
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
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.
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.
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.
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
Appendix 5 15
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.
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.
16 Appendix 5
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.