Concept Paper

Project Number: 42334 February 2013

Proposed Loan CAM: Rural Roads Improvement Project II (Project Preparatory Technical Assistance for Preparing the Mekong River Island Connectivity Output)

CURRENCY EQUIVALENTS (as of 1 February 2013)

Currency unit – riel/s (KR)

KR1.00 = $0.00025

$1.00 = KR3,995

ABBREVIATIONS

ADB – Asian Development Bank CPS – country partnership strategy km – kilometer MPWT – Ministry of Public Works and Transport MRD – Ministry of Rural Development PMU – project management unit

NOTE

In this report, "$" refers to US dollars unless otherwise stated.

Vice-President S. Groff, Operations 2 Director General K. Senga, Southeast Asia Department (SERD) Director J. Lynch, Transport and Communications Division, SERD Team leader S. Date, Senior Transport Specialist, SERD Team members P. Broch, Senior Transport Economist, SERD C. Clark, Safeguards Specialist (Resettlement), SERD M. Ingratubun, Senior Procurement Specialist, Operations Services

and Financial Management Department S. Kawazu, Senior Counsel, Office of the General Counsel C. Kheang, National Governance Specialist, SERD K. Leung, Finance Specialist, SERD J. Nam, Safeguards Specialist (Environment), SERD M. Ortega, Project Analyst, SERD N. Ouk, Senior Project Implementation Officer, SERD S. Ouk, Safeguards Officer, SERD K. Schelzig, Senior Social Sector Specialist, SERD S. Sok, Senior Procurement Officer, SERD A. Srinivasan, Principal Climate Change Specialist, SERD F. Villanueva, Senior Operations Assistant, SERD Peer reviewer S. Khan, Pacific Department

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS

Page I. THE PROJECT

A. Rationale 1 B. Impact, Outcome, and Outputs 3 C. Investment and Financing Plans 4 D. Indicative Implementation Arrangements 4

II. DUE DILIGENCE REQUIRED 4

III. PROCESSING PLAN 5

A. Risk Categorization 5 B. Resource Requirements 5 C. Processing Schedule 5

IV. KEY ISSUES 5

APPENDIXES

1. Basic Project Information 6

2. Problem Tree 7

3. Design and Monitoring Framework 8

4. Project Preparatory Technical Assistance 11

5. Initial Poverty and Social Analysis 15

I. THE PROJECT A. Rationale 1. The project aims to rehabilitate about 1,000 kilometers (km) of rural roads in 9 provinces (Banteay Meanchey, Battambang, Kampong Cham, Kampong Chhnang, Kampong Speu, Kampong Thom, Pursat, Siem Reap, and Takeo) to paved condition to provide a safer, cost-effective rural road network with all-year access to markets and other social services of poor rural provinces in Cambodia. The project will also support a sustainable road maintenance regime in the Ministry of Rural Development (MRD), a community based road safety program, HIV/AIDS and human trafficking prevention program, and climate change adaptation measures. 2. The principal mode for transport in Cambodia is by road. This road network of approximately 50,900 km includes: (i) national roads (primary national highways) with a total length of about 4,800 km; (ii) provincial roads (secondary national highways) with a total length of about 6,600 km; and (iii) about 39,500 km of rural roads. Management of national and provincial roads is the responsibility of the Ministry of Public Works and Transport (MPWT), whereas management of rural roads is the responsibility of MRD. 3. By the early 1990s, the years of civil war had left the country’s road network severely deteriorated. Since 1992, with assistance from the Asian Development Bank (ADB) and others, the Government focused on rehabilitating core infrastructure to support sustainable economic development. These efforts have brought the paved national road network to about 2,700 km in length, about 25% of the total national and provincial road network. However, with rural economy becoming increasingly dependent on the improved national road network, the rural road network continues to deteriorate due to rapidly growing traffic, lack of maintenance financing, poor road maintenance standards, inadequate institutional capacity in road maintenance and management, lack of private contractor capacity, and shortcomings in design and construction methods. 4. In 2010, ADB approved the Rural Roads Improvement Project (Loan 2670) 1 aimed to remedy aforementioned issues systematically by providing reliable all-year road access to over 500 km of rural roads, from provincial towns and agricultural rural areas in 7 provinces, serving about 0.6 million beneficiaries. These provinces are Battambang, Kampong Cham, Kampong Chhnang, Kampong Speu, Kampong Thom, Pursat, and Siem Reap, where a large proportion of Cambodia's rural poor live. These gravel roads are 5 to 6 meters in width, some of which are vulnerable to flooding in rainy season. The roads have average daily traffic volumes ranging from 200 to 2,000 passenger car units. Nearly 80% of the traffic is motor cycles. The current yearly growth rate of traffic varies between 3.6%–6.0% based on the type of vehicle. Traffic on rural roads is forecast to increase by 7.2%–12.0% per annum. 5. The proposed project aims to continue and expand the initiatives of Loan 2670 by rehabilitating about 1,000 km of rural roads in the 7 original project provinces and 2 additional provinces. As one activity of implementation supervision consulting services under Loan 2670, it was planned to design the proposed project to enhance ownership and capacity development of MRD, to build upon lessons learned in all outputs, and for a seamless continuation of initiatives between the two projects (see also paras. 12 and 16). The ongoing Loan 2670 has supported MRD’s capacity development in applying road selection criteria, minimizing resettlement impacts, improving procurement efficiency, and strengthening project management.

1 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.

2

6. 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 rural roads due to overloaded trucks that haul agricultural products and those that carry quarry materials for construction. While ADB is currently supporting axle load control programs for MPWT’s national and road networks, the proposed project aims to continue the ongoing overloading control program for rural roads. Lessons learned from MPWT’s axle load control interventions will be incorporated in rural road axle control activities which are expected to be integrated into the national axle load control program.

7. Cambodia’s accident rate is 10 fatalities per 10,000 vehicles in 2010.2 This is a 44% decrease from 2007, but still represents the highest accident rate in Southeast Asia. Thus, deteriorating road safety is a major sector concern, especially with increasing growth of traffic in rural areas. Increased traffic speeds resulting from improved paved road surfaces can also impose tremendous safety risks to rural communities. In line with the national umbrella programs for road safety and ADB's ongoing support, Loan 2670 has been assisting the MRD to design and manage a community-based rural road safety program. These activities will continue in the proposed project as well over all 9 project provinces.

8. Additionally, given the natural disasters that Cambodia has faced in recent years, particularly frequent flooding during the wet season, the need to address climate change considerations is essential. Loan 2670 made initial climate change adaptation interventions in climate resilient road design and planning for emergency preparedness, response, and recovery. The proposed project will continue these pilot interventions further to design and implement a climate resilient access measures in an island cluster in the Mekong River.

9. The overarching objective of the ADB’s Country Partnership Strategy (CPS) 2011–20133 for Cambodia is poverty reduction in line with the Government’s socio-economic development priorities. The CPS focuses on two strategic objectives: (i) inclusive economic growth through provision of physical infrastructure as well as interventions in other development activities such as vocational training, agriculture, and financial sector development; and (ii) social development and equity. Rehabilitation and enhanced climate resilience of the rural roads under the project will improve the rural poor’s access to markets and social services, and is a core means of promoting inclusive economic growth and reducing poverty, as well as enhancing social development and equity. The CPS includes four road sector projects in the program, all of which are consistent with the sector assistance program evaluation4 recommendation to shift focus towards rehabilitating provincial and rural roads, rather than national roads. ADB approved the first provincial road project in 20095 and the second in 2011.6 ADB also approved the first rural road project in 2010, Loan 2670, which will improve the rural poor’s access to services. Building upon the Loan 2670 this proposed project aims to incorporate lessons learned in its project design. 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.7 The project supports this strategy, particularly as it 2 It is expected to update this with 2011 data during the fact finding mission planned for August 2013.

3 ADB. 2011. Country Partnership Strategy: Cambodia, 2011–2013. Manila.

4 ADB. 2009. Transport Sector in Cambodia-Focusing on Results. Manila. (SAP: CAM2009-34).

5 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. 6 ADB. 2011. Report and Recommendation of the President to the Board of Directors: Proposed Loan to the Kingdom of

Cambodia for the Provincial Roads Improvement Project. Manila. 7 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.

3

enhances connectivity, balanced economic development, and access to social services in remote rural areas of 9 provinces in Cambodia. B. Impact, Outcome, and Outputs 11. Impact and outcome. The impact of the project is improved access to markets, jobs, and social services in 9 project provinces. This impact is consistent with the sector results framework of Cambodia Transport Sector Assessment, Strategy, and Roadmap.8 The outcome of the project is a safe, climate-resilient, and cost effective road network that provides all-year access in the agricultural areas of the project provinces which encompass a large proportion of Cambodia’s rural poor population. 12. The project outputs. The design of Loan 2670 planned for four key outputs in this project that address the aforementioned issues pertaining to rural roads, continuing from the efforts initiated in Loan 2670. The first output is road rehabilitation, to improve about 1,000 km of rural roads to climate resilient paved condition. This output also includes design and implementation supervision consulting services.

13. The second output of the project will improve road asset management in a sustainable manner through a strong capacity-building program. This program will continue the interventions initiated in Loan 2670, including the overloading prevention program for rural roads to efficiently manage the road assets.

14. The third output will increase the awareness and application of road safety and safeguards by (i) further expanding the pilot community-based road safety awareness program, initiated in Loan 2670, including education program for schools, drivers, road users, and the community that also incorporates road safety provisions in road design; (ii) further strengthening the capacity of the social and environment office in MRD established in 2012; (iii) implementing an HIV/AIDS and human trafficking prevention; and (iv) conducting a sex disaggregated baseline socioeconomic survey of project beneficiaries.

15. The fourth output is to strengthen the capacity of MRD to provide efficient project management support for project implementation. The project will promote substantial positive employment and gender impacts in the rural communities under most of the outputs. The labor and gender mainstreaming action plan, to be developed during project design, will incorporate all the labor and gender-mainstreaming aspects of the project outputs.

16. New output: Mekong River Island Connectivity. Though not originally planned during the design of Loan 2670, MRD subsequently requested ADB to rehabilitate roads and jetties within a Mekong River island cluster (part of mainland Kampong Cham Province) in order to improve climate resilient access and connectivity. Geographically located in the Mekong River but 11 km away from the mainland these 5 remote islands are highly vulnerable to flooding with no organized access either from the mainland or inter-island. Due to recent increasing calamities caused by climate changes, lack of access to emergency facilities have resulted in annual casualties of about 10 island residents.

17. Based on the aforementioned rationale, this fifth output, improving climate resilient access, will incorporate climate change adaptation measures for the design and rehabilitation of rural roads as well as river access. This output will be piloted for the Mekong River island cluster of Kampong Cham Province, and replicated in other similar areas while strengthening associated policy

8 ADB. 2011. Cambodia Transport Sector Assessment, Strategy, and Roadmap. Manila.

4

approaches. Details of this output are described in the Supplementary Appendix: Strengthening Mekong River Island Connectivity in Kampong Cham, Cambodia. C. Investment and Financing Plans

18. The project is estimated to cost $144.6 million including taxes and duties of $14.6 million. The total cost includes physical and price contingencies, and interest and other charges during implementation. The investment and financing plan is summarized in Table 1. ADB financing is firm but others are tentative now. Therefore, ADB will seek financing from all other financiers in the future.

Table 1: Tentative Investment and Financing Plan ($ million)

Item Cost

Financing

ADB Cofinanciers

(to be determined)a Government

Road rehabilitation 94.86 30.56 64.30 Road asset management 3.00 3.00 Road safety and safeguards 2.40 1.80 0.60 Project management 3.24 3.24 Mekong River Island Connectivity 2.50 2.50 Contingencies 22.00 6.90 15.10 Taxes and duties 14.60 14.60 Interest during construction 2.00 2.00 Total 144.60 50.00 80.00 14.60 Percentage 100.00 34.69 55.30 10.01 a

Tentative co-financiers are: Australia Agency for International Development, Korea Export-Import Bank, Kuwait Fund, and OPEC Fund for International Development. Source: Asian Development Bank estimates.

19. The Mekong River Island Connectivity Output is estimated to cost about $2.5 million. D. Indicative Implementation Arrangements 20. The MRD will be the executing agency for the project. The project management unit (PMU), which is implementing Loan 2670, will be the implementing agency of the project. The proposed project will be implemented within a period of 6 years, from 2014 through 2019.

II. DUE DILIGENCE REQUIRED 21. Due diligence may include the following:

(i) Economic. Economic viability will be confirmed during the project design. (ii) Governance. The project design will look into public financial management,

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

(iii) Poverty and social. There are indirect poverty reduction impacts. Major direct social impacts are HIV/AIDS, human trafficking, and road safety. A poverty and social/gender analysis will be undertaken during the project design. Social and gender specialists will be hired for this purpose to prepare a 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 will be no road widening, it will be category C for resettlement.

5

III. PROCESSING PLAN

A. Risk Categorization 22. The project is an investment project with a loan amount of about $140 million. Further, ADB has sound past experience in Cambodia in road sector projects. MRD and PMU also have a good capacity with experience in ADB-financed projects. With no resettlement effects and other safeguards categories as B, it is considered a low risk project. B. Resource Requirements 23. The key members of the project team will comprise of a senior transport specialist/mission leader, a senior transport economist, an environment specialist, a social development specialist, a procurement specialist, and a project analyst. About 80 person-weeks of staff resources will be required for timely processing. Loan proceeds from Loan 2670 will design the proposed project. 24. The aforementioned project design will be supplemented by a project preparatory technical assistance (TA) that will design the Mekong River Island Connectivity Output of paras. 16 and 17. The project preparatory TA requirements are in Appendix 4.

C. Processing Schedule

25. Table 2 shows the major milestones of project processing. The TA for the fifth output (para. 18) will be implemented parallel with the project design for seamless alignment in project processing. The TA consultants to design this output are expected to be engaged by March 2013 and complete the output design by July 2013, 2 weeks ahead of the loan fact finding mission.

Table 2: Proposed Processing Schedule

Milestones: Project Expected

Completion Date

Milestones: TA Expected

Completion Date

Reconnaissance mission October 2012 Reconnaissance Mission October 2012 Concept paper meeting October 2012 Advance Action October 2012 Peer review November 2012 Short listing of consultants December 2012

Mobilization of TA consultants March 2013 Consultant mobilization March 2013

Loan fact-finding mission July 2013 Inception April 2013

Staff review meeting September 2013 Mid-term review May 2013

Loan negotiations October 2013 TA Final Report August 2013

Board consideration January 2014 TA physical closing date September 2013

Loan effectiveness May 2014 TA financial closing date December 2013

TA = technical assistance. Source: Asian Development Bank

IV. KEY ISSUES

26. There are no key issues requiring due diligence and support from other ADB teams. However, during project design, it is necessary to confirm cofinancing in the amount of about $80 million. For this, ADB has already initiated discussion with co-financiers listed in para. 18.

6 Appendix 1

BASIC PROJECT INFORMATION Aspects Arrangements

Modality Project loan

Financing ADB financing of $50 million through an ADF loan; co-financing will be sought for about $80 million; Government financing is likely to be the remaining amount of about $15 million.

COBP/RCOBP ADB. 2013-2015. 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)

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

Risk categorization

Low risk

Partnership(s) During the project design, ADB will seek co-financing for road improvement from bilateral partners like the Australia Agency for International Development, Korea Export-Import Bank, Kuwait Fund, and OPEC Fund for International Development.

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; C. Clark, Safeguards Specialist (Resettlement); M. Ingratubun, Senior Procurement Specialist; S. Kawazu, Senior Counsel; C. Kheang, National Governance Specialist; K.H. Leung, Financial Analysis Specialist; J.H. Nam, Safeguards Specialist (Environment), M. Ortega, Project Analyst; N. Ouk, Senior Project Implementation Officer; S. Ouk, Social Safeguard Officer; K. Schelzig, Senior Social Development Specialist, S. Sok, Senior Procurement Officer, A. Srinivasan, Principal Climate Change Specialist, and F. Villanueva, Senior Operations 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.

Ap

pe

ndix

2 7

PROBLEM TREE

MRD = Ministry of Rural Development.

Transport in the project provinces is inefficient, unsafe, and inaccessible all year through

Overloading by trucks carrying quarry materials and agricultural products in rural roads induce severe damage

Weak asset management regime in rural roads

Road accident rates in rural roads in the project provinces are high

Connectivity from Mekong River Island cluster to mainland Kampong Cham is poor

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

Mobile axle load control units are needed to control overloading

Rural communities need road safety education and support for self-sustainable road safety enforcement

MRD lacks funds to rehabilitate unpaved rural roads in the project provinces to climate resilient standards.

MRD lacks funds to rehabilitate the Mekong River island roads and boat landings.

Access to markets, jobs, and social services is inadequate in the project provinces (Banteay Meanchey, Battambang, Kampong Cham, Kampong Chhnang, Kampong Speu,

Kampong Thom, Pursat, Siem Reap, and Takeo)

8 Appendix 3

DESIGN AND MONITORING FRAMEWORK

Design Summary Performance Targets and

Indicators Data Sources and

Reporting Mechanisms Assumptions

and Risks

Impact Improved access to markets, jobs, and social services in 9 project provinces

Volume of agricultural products transported on project roads increases by 100% from 2013 to 2022.

National and regional statistics: NIS Field surveys: MRD

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

By 2022, in the project provinces: (i) economic activity rate of

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

Population census: NIS (adjusted to target years)

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

Health information system and Cambodia Demographic and Health Survey: NIS

(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%

Education management information system: MOEYS

Outcome Safe, climate-resilient and cost effective road network that provides all-year access in the agricultural areas of the project provinces

Road accidents in the project area decrease by 20% from 2010 (7,250 accidents) to 2019

National road safety action plan annual report: NRSC Field traffic surveys: MRD

Assumption The government sustains its commitment to rural infrastructure development. Risk Project roads suffer severe damage from unexpectedly severe and frequent natural disasters.

Average travel times on project roads decrease by 25% from 2013 to 2019

Field traffic surveys: MRD

Average trip lengths on project roads increase by 40% from 2013 to 2019

MRD's annual reports

Share of the paved rural road network increases from 18% in 2013 to 20% in 2019

MRD’s annual reports

Average number of days per year that the project roads are accessible increases from 200 days in 2013 to 365 days in 2019.

MRD’s annual reports

Appendix 3 9

Design Summary Performance Targets and

Indicators Data Sources and

Reporting Mechanisms Assumptions

and Risks

Outputs 1. Project roads rehabilitated

About 1,000 km of rural roads rehabilitated by 2019

Monthly and quarterly project progress reports: MRD Monitoring reports: MRD

Average roughness of project roads in 2013 decreases from 6–14 to 2–3 in 2019.

Quarterly progress reports: MRD and Project completion report: ADB Project review missions: ADB

Contractors’ cumulative unskilled labor force will be 25% women by 2019.

Quarterly progress reports: MRD and Project completion report: ADB

2. Improved MRD road asset management

Overloading control mobile teams increase from 1 in 2014 to 5 in 2019.

MRD annual reports

Annual operation and maintenance budget for project roads increases from $268 per km in 2012 to $310 per km in 2019.

Quarterly progress reports: MRD and Project completion report: ADB MRD annual reports

3. Increased road safety and awareness of potential social problems

40% of project beneficiaries (50% women) 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 2019.

Quarterly progress reports: MRD; and Project completion report: ADB

Sex-disaggregated baseline socioeconomic data established by 2015

Quarterly progress reports: MRD

Every 10 facilitators will include at least 2 female facilitators to conduct road safety awareness program in rural communes.

Quarterly progress reports: MRD; and project completion report: ADB

4. Efficient project management

PMU personnel increased from 12 (7 male, 5 female) in 2013 to 22 (14 male, 8 female) in 2019

Quarterly progress reports: MRD; and project completion report: ADB

10 Appendix 3

Design Summary Performance Targets and

Indicators Data Sources and

Reporting Mechanisms Assumptions

and Risks

All PMU staff (current 7 male, 5 female) participates in training on social and gender issues, by 2019 (likely 22 with 14 male, 8 female).

Quarterly progress reports: MRD; and project completion report: ADB

5. Strengthened Mekong River Island connectivity

Emergency related deaths due to lack of access to health services from islands reduce from 10 in 2011 to 0 in 2019.

National health statistics: NIS

Rural beneficiary women are employed for manual concrete paving in island roads.

Quarterly progress reports: MRD; and Project completion report: ADB

Activities with Milestones Inputs

1. Civil works 1.1 MRD selects detailed design and construction supervision

consultants: by June 2014 1.2 MRD prepares tender documents and selects contractors: by

December 2014 1.3 MRD completes 1,000 km of road rehabilitation: by 2019 2. Road asset management 2.1 MRD completes procurement of mobile weigh pads and

enforcement vehicles: by 2014 2.2 MRD expands mobile axle land control: by 2016 3. Road safety and safeguards 3.1. MRD implements the road safety program: by 2016 3.2. MRD implements the HIV/AIDS awareness and human trafficking

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

disaggregated data: by 2015 4. Efficient project management 4.1 MRD completes training on social and gender issues for all PMU

staff: by 2016 4.2 PMU recruits 10 new staff for to increase its efficiency: by 2019 4.3 MRD manages the project efficiently: by 2019 5. Mekong River island connectivity 5.1 MRD completes the concrete roads in Mekong River islands: by

2019 5.2 MRD completes procurement and installation of jetties in Mekong

River islands: by 2019

ADB: $50.00 million

Item Amount

($ million)

1. Civil works

1.1 Improving 1,000 km of provincial roads and CBF

104.00

1.2 Consulting services for design and implementation supervision

9.00

2. Road asset management

3.00

3. Road safety and safeguards

2.40

4. Project management 3.24

5. Mekong River island connectivity

2.50

6. Contingencies 22.00

7. Financial charges during implementation

2.00

Government: $14.60 million

Cofinancing: $80.00 million

Beneficiaries: 700,000 persons

ADB = Asian Development Bank, CBF = cross-border facility, km = kilometer, MOEYS = Ministry of Education, Youth and Sports, MRD = Ministry of Rural Development, NIS = National Institute of Statistics, NRSC = National Road Safety Committee; PMU = project management unit. Source: Asian Development Bank estimates.

Appendix 4 11

PROJECT PREPARATORY TECHNICAL ASSISTANCE A. Justification 1. The Government of Cambodia has requested an Asian Development Bank (ADB) project preparatory technical assistance (TA) to prepare the Mekong River Island Connectivity Output, one of the 5 outputs, under the proposed Rural Roads Improvement Project II. Meanwhile, the ongoing Loan 2670 will design the other 4 outputs of the proposed project in a parallel process with this TA implementation. This proposed project is a priority project in the Government’s key infrastructure development agenda as it provides all-year access to rural agricultural communities of 9 provinces Cambodia. Thus, the TA was included in ADB's country operations business plan 2013–2015 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 social and environmental study will prepare reports on environmental assessment, poverty and social assessment, and resettlement framework; 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 A4.1.

Table A4.1: Summary of Major Outputs and Activities

Major Activities Expected

Completion Date Major Outputs Expected

Completion Date 1. Inception April 2013 Inception report April 2013 1.1 Conduct stakeholder consultations (should accompany

a tripartite meeting)

1.2 Establish TA methodology and develop work program

2. Feasibility study May 2013 Mid-term report May 2013 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 June 2013; it should accompany a tripartite meeting)

2.2 Conduct environment and social studies to prepare IEE, and social assessment reports

3. Project design July 2013 Draft final report July 2013 3.1 Prepare a link document in draft

RRP for the Output 3.2 Prepare relevant sections of draft

PAM as applicable to the Output

(should accompany a tripartite meeting) Final report

August 2013 IEE= initial environment examination; PAM= project administration manual; 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 $440,000 equivalent, of which $400,000 equivalent will be financed on a grant basis by ADB's Technical Assistance Special Fund (TASF-IV). The

12 Appendix 4

Government was advised that approval of the TA does not commit ADB to financing any ensuing project. 4. The Government will provide counterpart support in the form of office accommodation and counterpart staff, whose value is estimated to account for 9% of the total TA cost. The detailed cost estimate is presented in Table A4.2. 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 procurement of equipment will be in accordance with ADB’s Procurement Guidelines (April 2010, as amended from time-to-time). The TA consultants will turn over the equipment to the Ministry of Rural Development smoothly after the TA completion.

Table A4.2: Cost Estimate of the Proposed TA

Item Total Cost ($)a

ADB Financingb

1. Consultants a. Remuneration and per diem i. International consultants (9 person-months) 180,000.0 ii. National consultants (10 person-months) 60,000.0 b. International and local travel 30,000.0 c. Reports and communications 10,000.0 2. Equipment (computer, printer, etc.)

c 10,000.0

3. Workshops, training, seminars, and conferencesd

a. Tri-partite meetings b. Social and/or Gender consultation meetings

10,000.0 15,000.0

4. Vehiclee 12,000.0

5. Surveys 30,000.0 6. Miscellaneous administration and support costs 5,000.0 7. Representative for contract negotiations 0.0 8. Contingencies 38,000.0 Total 400,000.0

a. The total cost of the TA amounts to an equivalent of $400,000, of which contributions from TASF are presented in the table above. The Government will provide counterpart support in the form of office accommodation and counterpart staff, whose value is estimated to account for 9% of the total TA cost.

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

c Equipment

Type Quantity Cost

2 desktop computers with software,1 color laser printer, and 1 color copy machine Lump sum $10,000 The consultants will turn over the equipment to the Ministry of Rural Development upon TA completion.

d Workshops, training, seminars, and conferences

Purpose Venue

Tri-partite meetings (3) Phnom Penh Social/gender consultation meetings (2 per island) 5 islands of Kampong Cham

e Vehicle

Justify the use of and the need to purchase or lease a vehicle Expected length of use

Lease of vehicle and boat by consultant for field work 4 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 3 positions in international and 3 positions in national consultants. The requirement of international consultants is 9 person-months and 10 person-months for national consultants. ADB will select and engage the consulting firm in accordance with ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time). ADB will use the fixed budget selection

Appendix 4 13

with simplified technical proposal to select the consulting firm. Table A4.3 below shows the summary of consulting services requirement.

Table A4.3: Summary of Consulting Services Requirement International Name of Positions

Person- months

National Name of Positions

Person- months

Pavement design engineer/team leader 4 Highway engineer/deputy team leader 4 Climate change specialist 3 Social development and gender specialist 3 Environment specialist 2 Environment specialist 3

Total 9 10 Source: Asian Development Bank estimates.

7. The outline terms of references (TOR) for the project preparatory TA consultants are described in paras. 8 to 13. The proposed TA needs close coordination during implementation between the TA consultants and the detailed design and implementation supervision consultants of Loan 2670. This coordination, along with the detailed TOR of TA consultants, is described in the Supplementary Appendix: Strengthening Mekong River Island Connectivity in Kampong Cham, Cambodia. 8. The team leader, as the international pavement design engineer, with his deputy, the national highway engineer, will coordinate all TA activities within the team and also with all stakeholders. The team leader will lead the team of international and national consultants to design an investment output to increase the islands’ connectivity. He or she will prepare a detailed plan for implementation of the output, including civil works, consulting services and other necessary contracts, and procurement method adopted. The team leader will also lead in conducting necessary studies, seminars, and surveys, as necessary for each team member’s inputs, and prepare a detailed cost estimate for the entire output.

9. The international pavement design engineer and the national highway engineer will design the inland roads, based on 100-year flood design, with hand-paved concrete with local labor participation and small-size machinery with high focus on gender aspects plus local employment generation, working in close coordination with the national social development and gender specialist. These two experts will conduct the engineering studies on proposed roads for improvement. Road design should be within the existing construction limits, and no widening or realignment. The experts will also design appropriate-sized floating jetties with floating approaches in all islands based on 100-year flood design. The expert will propose schemes for boat services, with private sector involvement, for connectivity among inter-island as well as between island-mainland. 10. The international climate change specialist will assess the current climate resilient status of the islands cluster, in a strategic approach. The expert should identify a set of studies and policies to be proposed for the sector/multi-sectors to strengthen the current climate resilience approaches. These policy directions should be complied in a proposed draft strategic framework on climate change, in close coordination with the Loan 2670’s Climate Change Adaptation Output. The framework should focus on multi-sector development of climate change studies and flood planning for enhanced access, eco-tourism, climate resilient tourism, and private sector participation in rural clean energy generation. Also, the expert should propose a list of climate change adaptation measures necessary for the island cluster based on the aforementioned vulnerability assessment.

14 Appendix 4

11. The international and national environment specialists will perform an environmental assessment of the proposed output’s environmental impacts to comply with safeguard requirements of the Government and ADB, recommend on required mitigating measures and draft the environment management plan (EMP) for civil works implemented under the output, and recommend on implementation and monitoring of the EMP. 12. The national social safeguards and gender 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 for the output. Also, this expert will prepare a labor and gender action plan for the output for gender mainstreaming. Further, the expert will prepare an Indigenous Peoples Plan or Planning Framework if social assessment will find that the project will have impacts on Indigenous Peoples. 13. The general qualifications recommended for all specialists are a university degree and a minimum of 4–10 years experience in the relevant field of expertise, and geographical experience. In the case of the team leader, the team leadership experience of 5 years is required. For all national experts, fluency in English is essential. E. Implementation Arrangements 14. The Ministry of Rural Development (MRD) will be the executing agency of the TA. The project management unit (PMU) will be the implementing agency of the executing agency. The PMU, the implementing agency for two ongoing ADB-financed road sector projects, is familiar with implementation activities. MRD, 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. 15. The proposed TA processing and implementation schedule is listed in Table A4.4. The TA is expected to start in February 2013 and complete in September 2013.

Table A4.4: Proposed Technical Assistance Processing and Implementation Schedule Major Milestones Expected Completion Date Advance action on recruitment of TA consultants October 2012 Short listing of consultants December 2012 TA approval January 2013 Approval of technical and financial proposals February 2013 Inception April 2013 Mid-term review May 2013 Submission of TA draft Final Report July 2013 Loan fact-finding mission July 2013 TA physical closing date September 2013 TA financial closing date December 2013 TA= technical assistance Source: Asian Development Bank.

Appendix 5 15

INITIAL POVERTY AND SOCIAL ANALYSIS

Country: Cambodia Project Title: Rural Roads Improvement Project II

Lending/Financing Modality: Project loan; ADF

Department/ Division:

Southeast Asia Department/ Transport and Communications Division

I. POVERTY IMPACT AND SOCIAL DIMENSIONS

A. Links to the National Poverty Reduction Strategy and Country Partnership Strategy 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 2013–2015 as a core project in the transport sector.

B. Targeting Classification General Intervention Individual or Household (TI-H) Geographic (TI-G) Non-Income MDGs (TI-M1, M2, etc.) This project does not have a direct impact on poverty, this classified as general intervention.

C. Poverty and Social Analysis 1. Key issues and potential beneficiaries. The main project beneficiaries are rural-based communities and road users in nine provinces of Cambodia. The incidence of poverty in Cambodia (based on the national poverty line), is estimated at 35%, of which more than 90% live in the rural areas. Cambodia’s poverty is rooted in its large agricultural sector, which has low productivity and low growth, but provides livelihood to the vast majority of the country’s population. As well as living in rural areas, the poor tend to have low levels of education and limited access to land and other productive assets.

2. Impact channels and expected systemic changes. Improving the estimated 1,000 kilometers of rural roads to climate resilient paved condition will increase access to markets and employment opportunities, as well as goods and services. Improved road conditions would reduce travel time and vehicle operating costs, both of which would reduce transportation costs. Reduced transportation costs in turn are expected to contribute to reduced prices for goods and services in the project areas. Reduced input costs for agriculture and improved access to markets for farm produce are expected to have a positive impact on farming incomes. Road construction will prioritize employment of locally-sourced labor, including a target of 25% women for unskilled labor. The output of the Strengthened Mekong River Island Connectivity is expected to generate new income sources from labor-based road construction.

3. Focus of (and resources allocated in) the PPTA or due diligence. A Poverty and Social Assessment (PSA) will prepare a socioeconomic baseline and analyze the incidence and causes of poverty in the project areas. The PSA will also assess negative impacts and propose necessary mitigation measures, as well as analyze positive impacts and means of maximizing pro-poor features in the project design. Project risks are to include increased risk of HIV/STI transmission, human trafficking, and road accidents along with other risks identified through the PSA. Positive impacts and opportunities are to include improve access and mobility, as well as project related employment. The gender analysis will explore gender-related risks, opportunities, and required conditions will be set out in a Labor Gender Action Plan (LGAP) and Gender Strategy based on results of a gender analysis. Other social issues to be addressed include guarantees for adherence to Core Labor Standards and ensuring meaningful participation through the preparation of a communications and participation plan.

16 Appendix 5

4. Specific analysis for policy-based lending. Not applicable.

II. GENDER AND DEVELOPMENT

1. What are the key gender issues in the sector/subsector that are likely to be relevant to this project or program? The needs of women as road users often vary considerably to those of men. Women typically are responsible for transporting their children to school and social services such as primary health care. Women are also dependent on reliable road transport to access reproductive and maternal health services. In many rural communities, women play an essential role in contributing to household income through marketing of their households’ farm produce, as well as participating in informal sector livelihoods such as small businesses and casual labor–all of which are affected significantly by the quality of the road transportation. Improved road transportation is, therefore, likely to significantly contribute to women’s health, improved capacity to contribute to household incomes, and reduction in time burden in managing both livelihood and reproductive (i.e. household maintenance) roles. During project implementation, women face specific risks and are likely to have a keener interest in various aspects of the project which need to be addressed in project design and implementation. Women in host communities are, in some respect, more vulnerable to HIV infection due to greater physiological susceptibility, as well as the need to ensure their partners do not engage in risky sexual practices. Women are likely to have a greater interest in road safety as their roles of primary caregivers of their children. The project also provides for short to medium term benefits during the implementation phase including potential opportunities for project-related work, participation in livelihood improvement programs and enhanced roles within the community during consultation and participation activities. A Gender and Social Development Specialist will be recruited during the project design to undertake a poverty, gender, and social analysis and prepare an LGAP to maximize project benefits for women.

2. Does the proposed project or program have the potential to make a contribution to the promotion of gender equity and/or empowerment of women by providing women’s access to and use of opportunities, services, resources, assets, and participation in decision making? Yes No Please explain. Improved road transportation will enhance improved access to services and livelihood opportunities, as well as potentially reduce their time burden. The project implementation will also set targets for women’s participation in project-related work opportunities and implementation of community-based road safety programs.

3. Could the proposed project have an adverse impact on women and/or girls or widen gender inequality? Yes No Risks on women’s interests will be carefully assessed during the project design stage and addressed through LGAP and other relevant Social Action Plans.

4. Indicate the intended gender mainstreaming category: GEN (gender equity theme) EGM (effective gender mainstreaming) SGE (some gender elements) NGE (no gender elements)

III. PARTICIPATION AND EMPOWERMENT

1. Who are the main stakeholders of the project, including beneficiaries and negatively affected people? Identify how they will participate in the project design. Main stakeholders include communities through which the roads traverse and road users in the project areas. Project stakeholders will participate in the consultations during the Poverty and Social Analysis and Gender Analysis which will, in turn, inform the design of project outputs such as the road safety and safeguards output, HIV and Human Trafficking Mitigation Program.

Appendix 5 17

2. How can the project contribute (in a systemic way) to engaging and empowering stakeholders and beneficiaries, particularly, the poor, vulnerable and excluded groups? What issues in the project design require participation of the poor and excluded? A communication and participation plan will be prepared setting out information disclosure and consultation requirements throughout various stages of the project’s implementation. Modes of project communication will include public meetings and focus group discussions. In addition to this, some project components (such as road safety) will be community-based, providing opportunities for participation and management of local communities in activities which directly affect them. A grievance redress mechanism will also be established for the project. Lower levels of the project grievance redress mechanism will be located at the local administrative levels. Collaboration with existing community based organizations such as religious institutions, mass organizations and local government service providers (e.g. schools and health services) will also be incorporated in various project outputs involving outreach or community mobilization.

3. What are the key, active, and relevant civil society organizations in the project area? What is the level of civil society organization participation in the project design?

Information generation and sharing Consultation

Collaboration Partnership

4. Are there issues during project design for which participation of the poor and excluded is important? What are they and how shall they be addressed? Yes No Please explain. Local communities will be consulted on the design of community-based programs as well as mitigation measures of anticipated social impacts. These consultations will be inclusive. Community-based programs will include participation of women as well as marginalized groups.

IV. SOCIAL SAFEGUARDS

A. Involuntary Resettlement Category A B C FI

1. Does the project have the potential to involve involuntary land acquisition resulting in physical and economic displacement? Yes No Please explain. No involuntary resettlement impacts are expected; the project activities will be limited to road rehabilitation, road asset management; and road safety and safeguards that will not entail further land acquisition and as such will not lead to any involuntary resettlement issues/risks.

2. What action plan is required to address involuntary resettlement as part of the PPTA or due diligence process? Resettlement plan Resettlement framework Social impact matrix Environmental and social management system arrangement None

B. Indigenous Peoples Category A B C FI

1. Does the proposed project have the potential to directly or indirectly affect the dignity, human rights, livelihood systems, or culture of indigenous peoples? Yes No Ethnic minority Cham are expected to be present in some project areas. The presence of indigenous peoples will be confirmed and impacts assessed during the project design. The safeguards categorization will be reviewed and confirmed at that time.

2. Does it affect the territories or natural and cultural resources indigenous peoples own, use, occupy, or claim, as their ancestral domain? Yes No

3. Will the project require broad community support of affected indigenous communities? Yes No The project will improve existing roads. The project will not entail the physical displacement of Indigenous Peoples from traditional or customary land nor engage in commercial development of cultural or natural resources in customary or traditional lands of Indigenous Peoples

N M

H H

18 Appendix 5

4. What action plan is required to address risks to indigenous peoples as part of the PPTA or due diligence process? Indigenous peoples plan Indigenous peoples planning framework Social Impact matrix Environmental and social management system arrangement

None Since the project will not entail the physical displacement of Indigenous Peoples from traditional or customary land nor engage in commercial development of cultural or natural resources in customary or traditional lands of Indigenous Peoples only an Indigenous peoples planning framework will be prepared.

V. OTHER SOCIAL ISSUES AND RISKS

1. What other social issues and risks should be considered in the project design?

Creating decent jobs and employment Adhering to core labor standards

Labor retrenchment Spread of communicable diseases, including

Increase in human trafficking HIV/AIDS Affordability Increase in unplanned migration Increase in vulnerability to natural disasters Creating political instability Creating internal social conflicts Others, please specify __________________

2. How are these additional social issues and risks going to be addressed in the project design? A HIV and Human Trafficking Awareness and Prevention Program will be prepared. Requirements for Core Labour Standards will be stipulated in bidding documents and civil works contracts.

VI. PPTA OR DUE DILIGENCE RESOURCE REQUIREMENT

1. Do the terms of reference for the PPTA (or other due diligence) contain key information needed to be gathered during PPTA or due diligence process to better analyze (i) poverty and social impact; (ii) gender impact, (iii) participation dimensions; (iv) social safeguards; and (vi) other social risks. Are the relevant specialists identified? Yes No The project design consultants 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.

2. What resources (e.g., consultants, survey budget, and workshop) are allocated for conducting poverty, social and/or gender analysis, and participation plan during the PPTA or due diligence? It is also included in the detailed design for implementation supervision consultant’s terms of reference of Loan 2670.

M

H

H

1

Supplementary Appendix: Strengthening Mekong River Island Connectivity in

Kampong Cham, Cambodia

February 2013

Asian Development Bank

2

Figure 1: Location of the island cluster with villages in Kampong Cham Province

3

A. Objective

1. There are two key objectives of the proposed technical assistance (TA). First is to design interventions that would increase island connectivity of the 6 villages of 5-island cluster in Mekong River to the impacts of climate change. Second is to establish strategic changes in multi-sector development of climate change studies and flood planning for enhanced access, eco-tourism, climate resilient tourism, and private sector participation in rural clean energy generation. It is expected that the outputs of the first objective will serve basis and signature interventions in developing strategic directions of the second objective. 2. The proposed TA, in the amount of $400,0001 requested from the Asian Development Bank (ADB) TASF-IV, will design one output: Mekong River Connectivity of the proposed Rural Roads Improvement Project II (RRIP II). RRIP II is included in ADB’s assistance program for Cambodia for approval in 2014. The ongoing loan for Loan 2670-CAM: Rural Roads Improvement Project2 will design the remaining outputs of the RRIP II, which intends to rehabilitate about 1,000 kilometers (km) of rural roads to paved condition, in 9 high poverty provinces of Cambodia. B. Background

3. The aforementioned 6 villages of the Mekong River Island cluster are Kaoh Mitt, Kaoh Phal, Kaoh Pir, Kaoh Samraong, Kaoh Soutin, and Kaoh Thmei3, as shown in Figure 1. (see Appendix that illustrates the current condition of islands with photos). 4. Land area. The remote communities of 5-island cluster lie on the Mekong River in the Cambodian Province of Kampong Cham. The land area of each island in the cluster varies from 11,400 hectare (ha) to 90,000 ha. The total land area of the islands is approximately 190,000 ha (or 1,900 square kilometers [km2]). 5. Population. The population is approximately 24,000 people (5,500 households) in the entire island cluster. The smallest island has 9 households or a population of 36 people, while the largest island has 2,063 households and a population of 9,208.

6. Livelihood. Residents of the island cluster are engaged primarily in farming of cassava, corn, peanut, tobacco, and other crops such as fruits and vegetables. The community members are highly dependent on accessing markets on the mainland Kampong Cham to sell agricultural products. Their primary source of income is agriculture based and, therefore, they are highly vulnerable to droughts and floods damaging their crops. Few have savings to buffer against these losses and income diversification would greatly benefit their ability to withstand climate shocks. 7. Services. Some islands have one primary school but none have health care services. Energy needs are met by local entrepreneurs who have set up diesel generators and sell electricity to the population. Water supply and sanitation needs are met primarily by local wells and pit latrines which families have mostly built themselves with the exception of a few larger wells which have been funded by local and provincial governments. Very few services are provided by the government, and the island community has become well organized for self

1 Exclusive of Government counterpart financing.

2 ADB, Manila, 2012: Loan 2670-CAM: Rural Roads Improvement Project, approved on 23 September 2010 for

$35.0 million. 3 The villages of Kaoh Mitt and Kaoh Soutin form one island. All other villages are in their own island.

4

sufficiency. However, there are many limitations to this self sufficiency. This type of energy provision is relatively expensive and highly reliant on diesel generation with its associated pollution. The quality of ground water is not regularly monitored and there is virtually no road rehabilitation or maintenance.

8. Access. Access to markets, schools and medical services is insecure. Connectivity to the mainland is critical and is solely by boat. Residents of these islands use small motor boats from several small landing areas, which are not properly built for safe landing or launching, to cross the Mekong River to the mainland Kampong Cham and its provincial town which is 11 km away. Each island has a main rural road, under the jurisdiction of the Ministry of Rural Development (MRD), that has been constructed from the village going towards the boat landing areas. However, road access and boat landing have become increasingly hazardous, especially during the rainy season and monsoons which have become increasingly intense in the area. Travel times during the rainy season have doubled, and this has placed additional burden and risks on villagers, with high fatality rate of patients being transported to mainland during serious illness or emergency. With an aging population, the slow and deteriorating access to health care services is expected to exacerbate the already tenuous health care issues for the local communities. C. Climate Change in the Region

9. Climate data. Precise information on the climate change situation at the national level in the region is limited. Available information is often drawn from global or regional level models with varying degrees of relevance to the national level. However, predicted trends in climatic conditions in the studied area are expected to produce significant negative impacts on the local communities, especially in light of their known vulnerabilities and coping mechanisms of the local communities. A good basis for action is by assessing the current local vulnerability and coping mechanisms. Strengthening these from a climate change perspective will increase capacity to cope with future climate changes. 10. Future forecast impacts. The Mekong River Commission reports that, in Cambodia, the climate change models predict that there will be an increase in mean annual temperature of between 1.4°C and 4.3°C by 2100. 4 Mean annual rainfall is also predicted to increase, with the most significant increase experienced in the wet season. Floods and droughts are expected to increase in terms of frequency, severity, and duration. It should be noted that small drought periods can occur in the wet season with devastating effects on the rice crop. The potential impacts of climate change include (i) changes to crop productivity, with increases in wet season crops in some areas and decreases in others; (ii) acceleration of forest degradation including the loss of wet and dry forest ecosystems; and (iii) inundation of the coastal zone and higher prevalence of infectious diseases. 11. The climate change impacts of concern in this proposed project output include increased intensity of rainfall events, further damaging existing transport routes in the islands and damaging crops. At the same time, extended droughts may increasingly create crop losses which have serious consequences in a community so heavily dependent on its agricultural products for participation in the cash economy.

4 Mekong River Commission 2009, Booklet Series No.1 Adaptation to climate change in the countries of Lower

Mekong Basin.

5

12. While these impacts are considered in the design of the project, they are also used as future development studies in technical designs, higher education curriculums in coordination with the ongoing Loan 2670’s climate change output, and related ministerial policies for climate change adaptation measures. MRD will share such information through technical conferences held during their Annual Meeting while technical guidelines will be available in their website. D. Proposed TA’s Impact, and Outcome 13. The impact of the proposed TA is increased island connectivity of the 6 villages of 5-island cluster in Mekong River in Kampong Cham Province. The outcome of the TA is design of Mekong River Island Connectivity Output under the proposed RRIP II. 14. The overall approach in designing the aforementioned output (for investment) is essentially intended for strengthening the accessibility of the islands. The output design also places emphasis on the importance of economic diversification and access to markets. This will, in effect, reduce social and economic vulnerability to climate shocks by securing mobility to the mainland Kampong Cham for trade, education and health care. Also, securing mobility will enable access to critical services of schools and clinics. 15. Based on the above overall approach, the following are the broad sub-outputs of the Mekong River Connectivity Output (the Output) of the proposed project RRIP II.

16. Rehabilitation of island roads. The Output intends to rehabilitate about a total of 10 km of the existing rural roads in the islands, which currently become inaccessible during the rainy season. The road are of earth surface with about 2 meters (m) in width Upgrading may include using concrete which are more resistant to high water content, as well as slightly elevating the embankment. The road section design will adopt a 100-year flood design that may be adopted strategically as a standard design in similar areas of high vulnerability. This has the added advantage of providing safe areas for villagers during times of high floods. Much of the current population and local developments occur along these main access roads, including the local schools and community centers. 17. Provision of Boat landing stages/Jetties. There are currently no loading piers or jetties. The current landing facility is a bare tree trunk which is difficult even for able-bodied passengers. Trying to load a patient into a boat would be extremely difficult. Doing this at night or in heavy weather would be virtually impossible. Improved jetty facilities are essential, as well as provision of a water ambulance.

18. Strategic Policy Framework on Climate Change. Along with the two sub outputs above, this TA also aims to develop a proposed strategic policy framework on climate change, as mentioned in para 1. This proposed policy framework should be developed in close coordination with the ongoing Loan 2670’s Climate Change Adaptation Output (financed by Nordic Development Fund), as it focuses on broad policy areas as applicable for rural road sector. However, this intervention broadens the policy further in a multi- sector approach that is expected to strengthen climate change mitigation/adaptation activities in an enhanced sustainable manner. The policy should also include high focus on gender aspects as almost all investment activities required, including those of the Output under proposed RRIP II, are generally labor intensive activities.

19. Investment cost. It is expected that the Output may be approximately $2.5 million in terms of investment cost.

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E. Scope of the Proposed TA

20. It is expected that the proposed TA will need inputs of 9 person months of international experts and 10 person months of national experts. The consultants are required to design the Output based on the broad scope as outlined in Section D. 21. ADB will recruit an international consulting firm to implement the proposed TA according to ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time). F. Outline Terms of Reference of the Consultants

22. It is expected that the proposed TA will need inputs of 19 person months total (9 international and 10 national) from a team of international and national consultants. The outline terms of reference of each expert are as shown below. Since this TA is implemented parallel to the design proposed RRIP II (outputs other than the Mekong River Connectivity Output) designed under the Loan 2670 efficient coordination between the two designs is essential (see Section K). ADB will select the TA consultants in accordance with ADB’s Guidelines on the Use of Consultants (2010, as amended from time to time).

a. International Experts 23. Team Leader/Pavement Design Engineer (4 person-months [pm]). The expert will lead the team of international and national consultants. The expert will assess the vulnerability of the cluster of islands in climate change aspects to design an investment output to increase the islands’ connectivity. The expert will design the inland roads, based on 100-year flood design, with hand-paved concrete with local labor participation and small-size machinery with high focus on gender aspects plus local employment generation, working in close coordination with the national Social Development and Gender Specialist. The expert will also design appropriate-sized floating jetties with floating approaches in all islands based on 100-year flood design. The expert will propose boat services schemes, with private sector involvement, for connectivity among inter-island as well as between island-mainland. The expert should also finalize the framework of para 18. The expert is responsible for gathering inputs from all team members to finalize this framework. The framework should also specify an implementable action plan that leads to sustainable climate change interventions by various stakeholders. The Team Leader will prepare a detailed plan for implementation of the Output, including civil works, consulting services and other necessary contracts, and procurement method adopted. The team leader will also lead in conducting necessary studies, seminars, and surveys, as necessary for each team member’s inputs, and prepare a detailed cost estimate for the entire output. The expert’s preferable qualifications are: bachelor degree in civil engineering, 10 years experience in the field of expertise, 5 years experience as a team leader, 2 assignments in road design (over 4 months of duration each), 2 assignments in floating jetty design (over 4 months duration each), 1 assignment related to private sector ferry and/or boat services (over 6 months duration), 2 assignments in the GMS countries (over 4 months duration each). 24. Climate Change Specialist (3 pm). The expert must assess the current climate resilient status of the islands cluster, in a strategic approach. He/she should focus on the existing studies and policy approaches adopted by the sector, especially through coordinating with the ongoing Loan 2670’s Climate Change Adaptation Output. The expert should identify a set of studies and policies to be proposed for the sector/multi-sectors to strengthen the current climate resilience approaches. These policy directions should be complied in a draft framework of para 18, to be

7

finalized by the Team Leader. Also, the expert should propose a list of climate change adaptation measures necessary for the island cluster based on the aforementioned vulnerability assessment. The expert’s preferable qualifications are: bachelor degree in environmental sciences, 8 years experience in the field of expertise of climate change, 2 assignments in climate change adaptation design (over 4 months of duration each), 1 assignment in climate change adaptation in project implementation (over 4 months of duration each), 2 assignments in the countries of GMS (over 4 months duration each). 25. Environment Specialist (2 pm). The expert will perform environment assessments of the environmental impacts of the Output design proposed under this TA, for future investment, to comply with both the Government’s safeguard policy and ADB’s Safeguards Policy Statement (SPS, 2009). In this process the expert will prepare the Initial Environment Examination for the project design. The expert will recommend on required mitigating measures and draft Environment Management Plan including monitoring program to mitigate adverse effects during project implementation, in line with ADB’s SPS. The expert’s preferable qualifications are: bachelor degree in environmental sciences, 5 years experience in the field of expertise of environmental impact assessment, 2 assignments in environmental impact assessment for ADB financed projects (over 4 months of duration each), 1 assignment in environment assessment in project implementation (over 4 months of duration each), 2 assignments in the countries of GMS (over 4 months duration each).

b. National Experts 26. Highway Engineer/Deputy Team Leader (4 pm). The expert will assist the team leader in his responsibilities, leading the team in his absence. The expert will assist the team leader to assess the vulnerability of the cluster of islands in climate change aspects to design an output to reduce the islands’ vulnerability. The expert’s preferable qualifications are: bachelor degree in engineering, 10 years experience in the field of expertise, 2 assignments in engineering design (over 4 months of duration each), 1 assignment as deputy team leader (over six months duration), 2 assignments in an international organization (over 4 months duration each). Fluency in English (speaking, writing, and understanding) is essential. 27. Social Development and Gender Specialist (3 pm). The expert will design the labor and gender action plan for the proposed Output. Also, the expert will prepare an Indigenous Peoples Plan or Planning Framework, if social assessment will find that the project will have impacts on Indigenous Peoples. The expert will focus closely on social aspects of the Output: (i) land acquisition and resettlement requirements if any, (ii) ethnic minority requirements, (iii) gender requirements, and (iv) HIV/AIDS prevention. The expert will conduct adequate consultations, training, and information dissemination during the project design to produce required reports in line with the ADB’s SPS. The expert will coordinate with the international experts: team leader, and other team members for an effective project design free of social issues. The expert’s preferable qualifications are: bachelor degree in social studies, 8 years experience in the field of expertise, 2 assignments in social and gender development (over 4 months of duration each), 2 assignments in an international organization (over 4 months duration each). Fluency in English (speaking, writing, and understanding) is essential. 28. Environment Specialist (3 pm). The expert will assist the international environment specialist and international climate change specialist in all tasks, to perform environment assessments of the environmental impacts of the output design proposed under this TA, for future investment. The expert’s preferable qualifications are: bachelor degree in environment sciences, 4 years experience in the field of expertise, 2 assignments in environment

8

assessment/implementation (over 4 months of duration each), 2 assignments in an international organization (over 4 months duration each). Fluency in English (speaking, writing, and understanding) is essential. G. Cost Estimate

29. The proposed TA is expected to cost $400,000. The detailed cost estimate is as shown below.

Table 1: Cost Estimate of the Proposed TAa Item Total Cost ($) 1. Consultants a. Remuneration and per diem i. International consultants (9 person-months) 180,000.0 ii. National consultants (10 person-months) 60,000.0 b. International and local travel 30,000.0 c. Reports and communications 10,000.0 2. Equipment (computer, printer, etc.)b 10,000.0 3. Workshops, training, seminars, and conferencesc

a. Tri-partite meetings b. Social and/or Gender consultation meetings

10,000.0 15,000.0

4. Vehicled 12,000.0 5. Surveys 30,000.0 6. Miscellaneous administration and support costs 5,000.0 7. Representative for contract negotiations 0.0 8. Contingencies 38,000.0 Total 400,000.0

a Financed by ADB TASF-IV. Government counterpart financing is not included here.

b Equipment

Type Quantity Cost

2 desktop computers with software,1 color laser printer, and 1 color copy machine Lump sum $10,000 c Workshops, training, seminars, and conferences

Purpose Venue

Tri-partite meetings (3) Phnom Penh Social/gender consultation meetings (2 per island) Project area of 5 islands

d Vehicle

Justify the use of and the need to purchase or lease a vehicle Expected length of use

Lease of vehicle and boat by consultant for field work 4 months Source: Asian Development Bank estimates

H. Implementation Arrangements 30. ADB will administer the proposed TA. For the Cambodian Government, the MRD will be the executing agency. The Project Management Unit (PMU) within MRD, implementing Loan 2670, will implement the TA. I. Implementation Schedule 31. The implementation of the TA will be over a period of 7 months from February to September 2013. The phases of inception, interim, and final will make the entire TA. At the end of the final phase, it is expected that TA will deliver the design of the Output, approximately $2.5 million in terms of investment cost. This output will be a part of the proposed Rural Roads Development Project II, for ADB approval in 2014.

9

J. Reporting 32. Reports for each of the above 3 TA phases will be necessary. Submission of draft reports will be: (i) for inception, at the beginning of the month 2 of the TA; (ii) for interim, in middle of month 3 of the TA, and (iii) for final, in the beginning of month 5 of the TA. In addition, short monthly reports for months 2 and 4 are necessary. All draft reports should be submitted electronically in English language to ADB and PMU. Only final reports should be submitted in hardcopy as requested by ADB or PMU. K. Key Coordination Activities 33. The proposed TA needs close coordination during implementation between the TA consultants and the detailed design and implementation supervision (DDIS) consultants of Loan 2670. Since the TA does not include inputs on economic analysis, resettlement related activities, and procurement related activities, DDIS consultants will perform these tasks. The following table summarizes the necessary key coordination, but not limited to, between the two consultant teams.

Table 2: Coordination necessary between the DDIS consultants and the TA consultants Activity Tasks performed by DDIS

consultants (not limited to tasks listed below, as what is listed here are those only needing coordination between the two processes)

Coordination necessary by the TA consultants

Economic analysis Perform the economic analysis of the entire project including that for this Output

The TA consultants team leader needs to share cost estimates of the Output with the DDIS team leader

Resettlement safeguards

Though no resettlement is envisaged in the entire project a resettlement framework, will be prepared to provide guidelines for handling any contingencies involving minor resettlement impacts.

The DDIS team leader needs to provide information with the social development specialist on possible contingency situations which could involve minor resettlement impacts.

Environment safeguards

Finalize the IEE and EMP for the entire project in collaboration with the TA consultants

The environment specialists needs to prepare all information on environment effects and draft EMP of the Output in collaboration with the DDIS team

Social development activities

Prepare PSA, HIV and Human Trafficking Prevention Program; and LGAP for entire project. An Indigenous Peoples Framework will also be prepared if due diligence concludes the presence of indigenous peoples (IP) in the project area and that the ADB SPS’s safeguards requirement is triggered in this respect. Provide information for the revision of the IP Safeguards Categorization as needed.

Social development and gender specialist need to share basic information on socio-economic baseline data, consultation and participation planning, social assessment information as well as HIV and human trafficking and draft LGAP with the DDIS team leader

Procurement activities

Finalize procurement packages for the entire project

The TA consultants team leader needs to share indicative contract packages of the Output with the DDIS team leader

DDIS=detailed design and implementation supervision; EMP=environment management plan; IEE=initial environment examination; LGAP= labor and gender action plan; PSA= Poverty and Social Assessment; SPS=Safeguards Policy Statement, 2009; TA=technical assistance

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Source: Asian Development Bank estimates

Annex: Current Situation in the Islands The following photos illustrate some of the issues described in the main text.

Islands as seen from mainland Kampong Cham

Mainland Kampong Cham as seen from the islands.

Islands roads have non-motorized traffic; motorized traffic is motorcycles only.

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Typical (and only) mode of transport from island to mainland

The wooden log on the river bank is the landing stage for boat passengers. This is tricky

in good weather. In rainy or dark conditions for a sick person, it is impassable.

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Village child holding abundant fruits naturally grown all over the island: he has no access to

health, sanitation, medical or educational facilities.

This is the grave of a highly respected village elder who died in the boat

while being transported to Kampong Cham for emergency medical treatment.