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Tonle Sap Sustainable Livelihoods Project

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Tonle Sap Sustainable Livelihoods Project Project Administration Memorandum Project Number: 39603 May 2006 Grants 0034/0035–CAM: Tonle Sap Sustainable Livelihoods Project The project administration memorandum is an active document, progressively updated and revised as necessary, particularly following any changes in project or program costs, scope, or implementation arrangements. This document, however, may not reflect the latest project or program changes. CURRENCY EQUIVALENTS (as of 22 May 2006) Currency Unit – riel (KR) KR1.00 = $0.0002504 $1.00 = KR3,992.60 ABBREVIATIONS ADB – Asian Development Bank CARD – Council for Agricultural and Rural Development CLF – community livelihood fund CLFT – community livelihood facilitation team CPBC – commune planning and budgeting committee C/SF – commune/sangkat fund DOF – Department of Fisheries EA – Executing Agency IFREDI – Inland Fisheries Research and Development Institute MOE – Ministry of Environment MOI – Ministry of Interior NGO – nongovernment organization TSBR – Tonle Sap Biosphere Reserve TSEMP – Tonle Sap Environmental Management Project NOTE In this Report, "$" refers to US dollars. iii GRANT PROCESSING HISTORY Fact-Finding 4–27 May 2005 Management Review Meeting 12 August 2005 Appraisal 22–26 August 2005 Staff Review Committee Meeting 12 October 2005 Grant Negotiations 9–10 November 2005 Board Circulation 29 November 2005 Board Consideration and Approval 21 December 2005 Grant Agreement Signing 9 March 2006 Cofinancing Agreement Finalized 15 April 2006 and Agreements Signed Grant Effectiveness, Including 9 June 2006 (Expected)1 Conditions 1 The single condition to grant effectiveness specifies that a project steering committee headed by the secretary general of CARD will have been established and all necessary staff with qualifications acceptable to ADB will have been appointed. The Council of Ministers signified that it had established the committee in a letter dated 10 April 2006. iv CONTENTS Page MAP iv I. PROJECT DESCRIPTION 1 A. Impact and Outcome 1 B. Outputs 1 C. ADF IX Grant Component 5 D. Special Features 5 E. Cost Estimates 5 F. Financing Plan 6 G. Implementation Arrangements 6 II. THE PROJECT AREA 11 III. THE SUSTAINABLE LIVELIHOODS APPROACH 19 A. Definition 19 B. The Asset Base 21 C. The Vulnerability Context 24 D. Policies, Institutions, and Processes 25 IV. THE COMMUNITY LIVELIHOOD FUND 25 V. GENDER ACTION PLAN 27 VI. DESIGN AND MONITORING FRAMEWORK 30 VII. PROJECT MANAGEMENT AND ORGANIZATION 33 VIII. INDICATIVE ACTIVITIES SCHEDULE 34 IX. CONTRACT PACKAGES AND INDICATIVE STAFFING SCHEDULE FOR CONSULTANTS 36 X. TERMS OF REFERENCE FOR CONSULTANTS 37 XI. IMPLEMENTING SMALL PROJECTS WITH COMMUNITY PARTICIPATION 54 XII. SAMPLE SELECTION CRITERIA FOR NONGOVERNMENT ORGANIZATIONS 63 XIII. DETAILED COST TABLES 64 XIV. DETAILED COMMUNITY LIVELIHOOD FUND FLOW MECHANISM 80 A. Annual Planning—Year 1 Review of Existing Rolling Plan 80 B. Annual Planning—Year 1 Through Year 4 Community Development Planning 81 C. Reporting and Flow of Funds 82 XV. MAJOR GRANT COVENANTS 88 XVI. KEY PERSONS INVOLVED IN THE PROJECT 93 XVII. THE PROJECT STEERING COMMITTEE 95 A. Mandate and Purpose 95 B. Functions 95 C. Role and Responsibilities of Individual Project Steering Committee Members 96 D. Organization and Operation 96 XVIII. SUMMARY OF RESPONSIBILITIES AND PREPARATORY ACTIVITIES 98 XIX. ANTICORRUPTION 101 I. PROJECT DESCRIPTION A. Impact and Outcome 1. The Project will improve livelihoods. It will increase access to assets in the five provinces that adjoin the Tonle Sap.2 The project area encompasses the buffer zone and core areas. Specifically, it covers 37 communes, comprising 316 villages with a population of 287,430 in 54,857 families. These communes qualify because they pursue livelihood activities in the buffer zone.3 B. Outputs 1. Community-Driven Development Is Supported 2. The purpose of decentralization and deconcentration is to devolve responsibilities, functions, and power to the lowest practicable structural level to deliver demand-driven services more equitably, efficiently, and effectively. The first driver of success is availability of finance to the decentralized bodies. This is being achieved by direct transfer of capital from central government to the commune/sangkat fund (C/SF)4 managed by the commune councils. But the amounts involved are small and so, under the Seila program, the C/SF has been augmented by the donor community. The second driver of success is ability to plan and manage disbursement to improve livelihood outcomes. a. Establish a Community Livelihood Fund 3. The Project will establish a community livelihood fund (CLF) to finance small-scale community-driven activities planned and agreed on at village and commune levels. The CLF will be managed by MOI, and the 37 communes in the project area will be able to access CLF grant funds through their Commune Councils.5 The planning of the activities will follow the procedures of the Commune Development Plan.6 The Project will make allocations from the CLF to 37 individual communal funds. The allocations will be channeled to a commercial bank account for each commune at the district level. Eligible activities will relate to (i) social infrastructure,7 (ii) income-generating activities, and (iii) support for community fisheries. Limits will be set on the allocation to each category. Community livelihood facilitation teams (CLFTs) will be established 8 in each project province in the office of the governor. 2 They are Battambang, Kompong Chhnang, Kompong Thom, Pursat, and Siem Reap. 3 Fifty-seven communes have some land in the buffer zone. The 37 target communes are of two types: (i) 21 have villages in the buffer zone, and (ii) 16 have community fisheries and some land area, but no villages, inside the buffer zone. The 20 excluded communes have land but neither villages nor community fisheries in the buffer zone. 4 Provinces are divided into districts and communes. Municipalities are divided into khan and sangkat. There are now 20 provinces, 4 municipalities, 171 districts, 14 khan, 1,510 communes, and 111 sangkat. The C/SF was established in 2001 to provide Commune/Sangkat Councils with predictable and transparent fiscal transfers for development spending. 5 The range of eligible activities was decided based on participatory rural appraisals during project preparation. 6 The commune development plan is a 3-year rolling plan with annual updates derived from proposals put forward by individual villages working through their representatives on the commune planning and budgeting committees. Individual commune development plans are passed to a district integration workshop at which line agencies, nongovernment organizations, and donors pledge support. Components of the plans that are not adopted will be considered for direct funding through the C/SF. 7 Construction of small piped water supply systems, wells, or intra-village roads may entail minor acquisition of land. A land acquisition and resettlement framework has been prepared to guide planning and implementation. 8 Emphasis will be placed on improving the quality of facilitation services to commune planning. The facilitation will include a discussion of what are, and what are not, pro-poor outcomes. 2 b. Design and Implement Livelihood Investment Packages 4. The Project will integrate the planning of activities to be funded through the CLF with the established process of village and commune planning. However, village-level planning needs to be supported, particularly in the less familiar income-generating and community fisheries activities, and activities to ensure greater participation of women and the more disadvantaged households. To this end, the Project will assist demand-based organizations including community fisheries in formulating proposals for funding under the CLF. It will also help to form village or commune special interest groups.9 It is accepted that in the first update of the 3-year rolling commune development plans in which the Project will be involved there will be little change particularly in social infrastructure.10 However, at that stage, community fisheries that are being organized under component 2 of the TSEMP may be formulating plans for funding. 5. Village-based proposals will be passed through to the commune councils via the commune planning and budgeting committees (CPBCs) for inclusion in the annual update of the commune development plans. The commune councils may choose specifically to earmark individual items for funding under the CLF; other items may be included with other proposals put forward to the district integration workshops and, if not selected for funding through other sources at that forum, would be reconsidered for funding under the CLF. 6. The Project will set guidelines to which all proposals for activities to be funded through the CLF will conform.11 The guidelines will indicate the technical support needed to ensure that activities are properly implemented, and this support will be contracted to government agencies, nongovernment organizations (NGOs), or the private sector. The Project will also contract independent auditors to verify project accounts and financial transactions.12 Additionally, the provincial offices of economy and finance will audit the CLF each year. 2. Core Areas Are Safeguarded 7. The core areas are reservoirs of natural capital that strengthen the Tonle Sap's resilience in the face of ever-increasing pressures and contribute directly to fisheries productivity. Protecting their functions, products, and attributes will contribute
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