38882 Public Disclosure Authorized

Public Disclosure Authorized In a broader sense the propoaed projects would contl-ibute towards promoting regional power trade through de~nonstratingthe establishment of mechanisms ftrr common design, financing, and construction of cross-border links and commercial agreement underpiri~linpsuch transactions.

W~thinthe aforementioned longer-term GMS power trade framework. the propc~sedPrc~jects have the following three immediate development objectives: (i) to bring affordable gr~d-basedelectricity to 's PI-ovincesof and Stung Treng, through import of power from Lao PDR and ; (ii) to supply itffordable grid based electricity to the province of Saravan in Lao PDR in the near term while establishing a portion of a transmission link that would in the rnedium-term help interconnect Cambodia and Thailand through southern Lao PDR to increaae power trade among them; and iii) to help establish load dispatching facilities and capabilities in Lao PDR. that would enable it to oplimizc its system peration and facilitate its pnrtic~pationin regional trade.

he project supports CAS objectives as well as the National Strategic Development Plan (2006-2010)of "improvtng nfrastructure to promote private sector investments. and to help achieve CMDGs (Cambodia has less than 15%.access rate Public Disclosure Authorized or electricity) through continued asslstancc to rural electrification, least-cost power supply and through GMS power tradc

roject Corriprrnents eographically, the Project involves three GMS countries - Cambodia. Lao PDR and Vietnam, Cambodia being the ecipient" of power and Lao PDR and Vietnam the "suppliers". GMS-Power Trade (Cambodia) comprises flnanctng of transmission lines from the Kampong Cham and Stung Treng pravinces of Cambodia to the Vietnam and I

Public Disclosure Authorized under th~sproposed pl-eject.

he Projecr Components ;Ire:

This component is the Cambodia Cham Substation in Cambodia. I would enable import of power' from the South of Vietnam to the Kampong Cham Province in Cambodia. It would involve construction of: (i) a 115 kV double circuit transmission line of 64 km in length from Kampong Cham Substation to the Cambodia-Vletnam horder: (ii) a 115122 kV, 2x20 MVA Substation in Ka~npongCham; (iii) 21 115122 kV. 2x15 MVA Substation, en route, at , Tbourlg Khmum Dlstr~ct;and (iv) a 11.5122 kV, 1x10 MVA Substation at Kraek, Kampong ! I Cham Province. il Component C-2: 115 kV Transmission Svstem: Lao-Border to Stune Trenn: This component is the Cambodia portion of a 115 kV transmiss~online from Ban Hat Subst~ltionin Lao PDR to Stung Treng Substation in Cambodia. It would enable impel-t of surplus hydropower from the south of Lao PDR to the Province of Stung Treng in Cambodia. It would involve construction of: (i) a 115 kV double circult transmission line of 56 km in length from the Cambodia-Laos borde~(at Veun Khan?); and (ii) a 115122 kV. 1x10 MVA Substation at Stung Treng. Component C-3: Consulting Services: Proiect Design and Management for Com~onentsC-1 and C-2: Consulting assistance (about 35 staff-months) would be provided under the proposed Project to assist EDC in design and implementat~on. An Independent Procurement Agent would be hired by the MEF for IDA projects, including GMS-PT (Cl~mbodia)project. [ ' Component C-5: Detailed Feasibility Study for a hydro project: This component would advance the pre-feasibility level studies to detailed feasibility stage studies for a hydropower project, to be decided by the government in consultation with the Rank. The feasibility sludy would include an assessment of envircinmenlal and social impacts, daln safety issues. revlew the application of Bank's safeguards policies, and make recommendations on mitigation measures, accurding to Terms of Reference satishctory to the Bank.

Cnmponcnt C-7: Institutional Develop~nentof MIME and EDC. This componcnt would finance consulting assistance to EDC for strengthening its I~itsrnalAudit department and to MIME and EDC for strengthening power sector planning and ~nstitutionalizingthe processes developed in preparing the recent power system development plan with the assistance 01' a

Japanese (PHRD) Grant. I A.4. Project Location and salier~tphysical characteristics relevant to the safeguard analysis: I The transmission l~nespass through 30 villages in 10 communes in 3 districts in Cambodia. The proposed project will consist of two investment components: (1) a 56 kilometel- long I15kV Transmission Line between Laos border to Stung Treng; and (2) a 66 kilometer long 115kV Transmission Line between Kampong Cham and Vietnam border. The transmission lines follow the alignment of existing national roads to the border of Lao PDR and Vietnam.

The construction of these two transmission lines will involvt: limited amount of land acquis~tionand resettlement. which is mainly caused by acquiring land for substations, building tower bases, and clearing right of way (ROW) under the transmission lines. Following Ihc Bank policy on involuntary resettlement, a draft RAP was prepared by Electriciti. du Cambodge (EDC) based on deta~ledimpact survey and proposed compensl~tionpolicies.

Accol-ding to the survey. :I total 4.1 ha of land areas would be acquired including 2.1 ha for four sub-stations and 2.0 ha for tower bases. In addition, it is estin~atedthat during the construction about 6 ha of land areas would be occupied temporarily for access ronds, storage site, and soil deposit or borrowing sites. Most of these will be paddy land. In addition, about 6.400 trees will be removed and 94 small shops will be relocated within a short distance from the Right of Way (ROW). Most of such impact is relatively minor: caused by the clearance of ROW (30m wide) and land acquisition for tower bases. The more significant impact is on those affected by land acquisition for four substations (12 households) and those to be physically relocated along the transmission alignment (94 shops), thereby affecting a total of 106 households.

Remov;il of 6.400 trees, including some economically valuable trees, might also have some impacts for some affected households. Must of those are likely to be the ownera of res~dences,as the trees tend to be clustered around built up rraidential areas. In addition, during prnject construction, some temporary impacts might take place e~tllerin or outside the IZOW and substation boundaries.

Land use along the proposed route is primarily rural, with small areas of urban settlement and light industry occurring on the I-~ghtside of the route from Kempong Cham tu Vietnam bordet-. The local farming system is dominated by rice cl-upping,

I While initially used for power import, the line could, in the medium and long term plans with hydropower development in Cambodia, help transfer surplus hydropower from Cambodia to Vietnam. 2 conductors in a horizontal plane. EdC will hire an NGO to help monitor implementation of measures during construcuon and initial period of operations.

The project arena consist mainly of rice fields in very flat terrain with scattered villages, houses arid trees. The villages are located ~nostlyalong roads, with some small businesses also developed along the sides of major roads. The major economic activity is rain-fed lowland rice farm~ng.Other farming activities include vegetables and tree crops, small-scale livestock production and collecting fish, frogs and crabs in rice fields and channels.

The social economic survey carried out during RAP preparation and follow up discussions with local off~cialsindicated that there are no ethnic minority villages along the two transmission lines. This social economic survey was reviewed by the Bank arid it was concluded that thc Bank IP policy should not be triggered The environmental and social assessmenla find that there are no historic, religious or other cultural sites likely to be affected by the transmission lines. Howevcr, acknowledging that the construction team may nonetheless encounter such physical

No major impacts are expected. Impacts of both prnjects are described in Section A-4.

lli, sl~pporrir~grhc pmposedprojecr. rhc Borlk does nor irirrr~d10 prcjr

Rescttle~nentAction Plan and Environment Management Plan for the proposed transmission lines and the associated sub- stations have been prepared and reviewed by the Bank. Irnplementation of these plans will be monitored as covenants of the proposed Grant. EDC has some experience of implementing environmental and social impacts ~nitigalion through i~nplementationof previous IDA projects. For resettlement implementation, according to the government decree in June 2006, Inter-Mini~triesResettlement Committee (IRC) will be responsible for resettlement implementation for all Bank-funded projects in Cambodia. The secretariat of IRC IS called Resettlement Unit with 17 full time staff. They are responsible for reviewing and approving RAPS. establishing compensntion rates based on replacement cost survey, carrying out detail measurement survey (IIMS) prior to resettlement implementation, and dellvrrlng compensations to the affected people. As project sponsor, EDC will also partleipate in these processes, and they will be supported by Prujicl Implementation Consultant in terms of resettlement training and internal resettlement monitoring.

In terms of resettlement implementation, both IRC and EDC will work closely with sub-committees to be set up in the project provinces. These sub-comm~tteeswill be led by the provincial governor and consist of district governors, commune chiefs and heads of villages. or their representatives as well as EDC branch staff. The sub-committees will be respons~bleto (I) assist IRC and EDC to conduct DMS and replacement cost survey; (2) organize village consultations; (3) assist delivery of compensations. and (4) assist IRCfEDC to resolve any issues in resettlement process.

In the process of land acquisition and resettlement, to ensure rcscttlement inlplementation is carried out smoothly and in ~(impliancewith the approved RAP, IRC and EDC will employ an external monitoring and evaluation team to carry out ~ndependentmonitoring and evaluation in accc~rdancewith the RAP. As regards the feasibility study for the hydro project. it would include an asseasment of environmental and socii~limpacts, dam safity issucs, I-cview the application of Bank's safeguards policies, and make recommendations on mi~igictionmeasures, according to Terms of Reference satisfactory to the Bank.

To srrengthen institutional capacity for resettlement, technical assistance such as workshops, train~ng,and study tour, will be provided under the loan for staff from both EDC and IRC. An NGO will be engaged by EDC to assist in monitoring implementation of social and environmental measures, including impacts, if any, on the birds in the habitats in the vicinity of the transmission lines. Training will be arranged through the Ministry of Culture and Fine Arts for the staff of contractor, supervision consultant, and EDC in recognizing chance finds and implementing chance finds procedures.

11.5. Identify the key stakeholders and describe the mechanisms for consultation and disclosure on safeguard policies, with an emphasis on potentially affected people.

The date of consultation with the project affected people is as followh: Stung Treng Fzbl-uary 05,2006 to February 1 1.2006 Kampong Cham March 14,2006 to March 18, 2006 Knmpong Cham May 05,7006 to May 09,2006

The EMP and RAP were disclosed to the public on August 14 at EDC's offices at , Kampong Cham, and Stung Treng, and at MIME offices a1 Kampung Cham and Stung Treng. The EMP and RAP we!-e also disclosed at the Bank's PlCs in Phnom Penh and Wa5hington. Enviro~~~rreritalAssess~rte~rr/Ai~dir/Mnt~ngeme~~t PlandOrher: Date of receipt by the Bank 07/25/06 (revised version received in Dec 2006) Date of "in-country" disclosure 08/14/06 or Not Applicable

07/12/06 (revised version received in Dec 2006) 08/14/06 or Not Applicable

or Not Applicable xx/xx/xx or Not Applicable

Section I11 - Conlpliance Monitoring Indicators at the Corporate Level (To be filled in when the ISDS is finalized by the pro,iect decision meeting) OI'/8fJ 4.01 - Etrvirutrmenl Assessnrent: Does the project require a stand-alone EA (includ~ngEMP) repoi-t'! If yes. then did the Regional Env~ronrnentUnit review and approve the EA report? Are thc cost and the nccount;rbilities for the EMP Incorporated in the credidloan? OP/BP 4.12 - I~zr~oluntaryResettlernent: -Yes -No Has a resettlement action plan, policy framework or policy process been prepared? If yes, then d~dthe Regional Social De\,cloprnent Unit revlew and approve the plan 1 policy framework 1 policy process? OP/BP 4.36 - Forests: -Yes -No Has the sector-wide analysis of policy and institutional issues and constraints been carried out'? Does the project design include satisfactory measures to overcome these constraints'? 11025 the project finance comniercial harvesting, and if so, does it include provisions for certification system'? OP/BP 4.37 - Safety of Dams: -Yes -No Have darn safety plans been prepared'? Have the TORS as well as composition for the independent Panel of Experts (POE) been reviewed and approved by the Bank'? IIas an Emergency Preparedness Plan (EPP) been prepared and arrangements been made for public awareness and training? OP 7.50 - Projects oil Iirter~mtional\Vaterways: -Yes -No Have the other ripnrians been notified of the project? if the project fr~llsunder one of the exceptions to the notification requirement, then has this been cleared with the Legal Department. and the memo to the RVP prepared and sent? What arc the reasons for the exception? Plcasc cxvlain: Has the KVP approved such an exception? OP 7.60 - Projects in Disprrted Areas: -Yes -No Has the memo conveying all pert~nentinformation on the international aspects of the project. including the procedures to be Ibllowed, and the recommendat~onsfor dealing with the issue, been prepared, cleared with the Legal Department and sent to the RVP? Does the PADlMOP include the standard discla~merreferred to in thc OP? BP 17.50 - Pitblic Disclosirre: -Yes -No Have relevant safeguard policies documents been sent to the World Bank's Int'oshop'? I-lave relevant documents been disclosed in-country in a public place in a form and language that -are understandable and accessible to project-affected groups and local NGOs? AN Safcgrcard Policies: -Yes -No Have satisfactory calendar. budget and clear institutional responsibilities been prepared. . for the implementation of the safeguard measures? I ldvc safeguard measures costs been included In project cost? Will the safeguard measures cobts be funded as part of project implementation? Doeh the Monitol-ing and Evaluation system of the project include the monitoring of safeguard impacts and measures? Have satisf~ctory-.implementatiun arrangements- been arrreed- with the borrtrbver and the same been adequately reflected in the project legal documents? Signed and subinitred by: Name Task Team Leader: Mohinder Gulati, Lead Energy Specialist Project Safeguards Specialist 1: Bcrnard Baratz, Consultant (Environmental Project Satzguards Specialist 2: Youxuun Zhu. Consultant (Social Specialist)

Project Snfe~uardsSpecialist 3: Approvsrl by: Name Date Regional Safeguards Coord~nator: Juan Qurntcro, Sr. Environmental Engineer Comments: Sector Manager: Comments: