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.

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 in each project province in the office of the governor.8

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.

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 appreciably to sustainable livelihoods. The fishing lots that overlap, sometimes totally, with the core areas provide a degree of protection of sorts but they compromise their conservation function: they maximize the fish harvest and private economic rent with no regard for sustainability.13 Implementing a robust core area management system depends on a solid understanding of the biological functions of the core areas (as well as sanctuaries) in the broader lake ecosystem; the dynamics of resource use and the livelihood strategies of the population of the core areas;14 and an effective management framework for the core areas. DOF endorses the strategy of doing away with fishing lots in the core areas in favor of establishing fish sanctuaries and a

9 Special interest groups will include women's groups and ethnic minorities. 10 Experience under the Seila program shows that commune development plans tend to focus on this. 11 Activities must be demonstrably free of negative effects on the environment and cultural heritage. They must not disadvantage or cause losses to any part of the community. Activities for which there are potentially negative environmental effects may nevertheless be retained subject to the findings of a competent environmental impact assessment. The TSBR secretariat will be the arbiter of such cases. 12 The terms of reference of the auditors should include a requirement to verify on-the-ground services and infrastructure. 13 They are lot no. 2 in Prek Toal; lots no. 4, no. 5, and no. 6 around Boeng Tonle Chhmar; and lot no. 1 in Stung Sen. License to exploit these fishing lots until 31 May 2009 has been granted. 14 Only Boeng Tonle Chhmar is populated. In July 2004, it was home to 2,218 people.

3 management system compatible with biodiversity conservation. The fishing lot licenses in the core areas, which will expire in 2009, will not be extended.

a. Establish an Information Base on Core Areas

8. The Project will (i) review and describe the operations of fishing lots in the core areas, (ii) establish a database of biological and socioeconomic information as a subset of the TSBR environmental information database, and (iii) build the capacity of the TSBR secretariat in the Cambodia National Mekong Committee to manage the information base. b. Institute a Management System for Core Areas

9. The Project will (i) establish the position of core areas coordinator in the TSBR secretariat; (ii) assist the TSBR secretariat to develop, conclude, and implement a management and protection agreement for the core areas between the Cambodia National Mekong Committee, DOF, the Inland Fisheries Research and Development Institute (IFREDI) in DOF, and the Ministry of Environment (MOE); (iii) detail a plan and schedule for the removal of the fishing lots,15 with reference to activities under component 3 of the TSEMP; (iv) select the best way to maximize the conservation of natural resources in the core areas;16 (v) identify all current classes of direct users—seasonal and others—of the core areas and prepare a livelihoods development and support plan identifying (a) priority interventions in support of livelihoods for poorer groups that might be affected by the removal of the fishing lots, and (b) activities to embed the protection and management of the core areas in the livelihoods of neighboring communities; (vi) identify and recommend alternative livelihoods for the population of Boeng Tonle Chhmar, whose right of abode is maintained under the Royal Decree on the Establishment and Management of the Tonle Sap Biosphere Reserve,17 and who will be allowed to continue using the natural resources of the core areas in ways that respect the protection objectives of the core areas; (vii) assess, with reference to activities under component 3 of the TSEMP, the operations of the fishing lots and recommend mitigation measures to DOF for immediate action and inclusion in the burden books of the lots; (viii) plan and propose a new management system for core areas, and its monitoring and evaluation; (ix) identify, jointly with DOF, IFREDI, and MOE mechanisms to ensure compliance;18 and (x) propose the incorporation of the additional potential core areas identified under component 3 of the TSEMP.

c. Institute an Improved Network of Fish Sanctuaries

10. The Project will (i) assess the function of fish sanctuaries vis-à-vis fish productivity in the Tonle Sap;19 (ii) determine the optimum number, location, and size of fish sanctuaries; and (iii) formulate recommendations for their use and management.

15 The mechanism will be applicable to any additional core areas that may be identified. 16 This might include various levels of spatial or temporal restriction of access. 17 Those measures would be based on a series of stakeholder and community consultations and surveys to identify socially acceptable options and tradeoffs. The consultations would also serve the important function of building legitimacy for the rules once they are implemented. 18 This involves defining the roles of various government and local institutions, and also designing community institutions to enforce measures at the community level. MOE would be the main management authority, and the TSBR Secretariat would approve recommended enforcement mechanisms. 19 The fish sanctuaries referred to are the eight protected areas of the Tonle Sap under the jurisdiction of DOF. 4

3. Skills and Awareness for Sustainable Livelihoods are Built

11. Decentralization and deconcentration have boosted local autonomy and participation in national development. Accordingly, the structures supporting this effort—at central, provincial, district, and commune levels—have received considerable assistance. But, given their short history, the impact on improved livelihoods, though encouraging, has been modest: there remains a need to strengthen institutions and processes at all levels. This includes improving cross-sectoral linkages in development planning, building skills for community-driven development, and raising awareness of the need to protect natural resources.

a. Improve Coordination for Community-Driven Development

12. The Project will (i) recommend the institutional arrangements, including the role, functions, terms of reference, structure, budget, and staff complement, that would enable the Council for Agricultural and Rural Development (CARD) to better coordinate with ministries, facilitate policy formulation, and harmonize external assistance for agricultural and rural development, (ii) draw up a work plan and train staff of CARD to update it; and (iii) build the capacity of CARD to complete critical tasks effectively, efficiently, and more inclusively.

b. Enhance the Skills Base for Community-Driven Development

13. The Project will familiarize government institutions at central, provincial, and commune levels with the CLF. This will entail preparing a range of materials for awareness-raising activities covering the objective of the CLF, its scope, and the means of accessing it. The principal modes of delivery will be group discussions, workshops, and audio-visual materials.20 A project information center will be set up in each project province.21

14. Staff of the provincial departments of rural development, environment, and women's affairs, and the provincial office of fisheries assigned to the CLFTs or otherwise involved in project implementation will receive formal training in participatory development planning and performance management based on the Project's design and monitoring framework. Staff of the provincial offices of economy and finance will be trained in specific auditing requirements. Training in operations and financial accountability will be given to members of the CPBCs and to the accountants of the commune councils.22 The commune facilitators will be trained in the participatory analysis of livelihood needs and opportunities and the mobilization of communities for deeper involvement in sustainable development planning, implementation, and performance evaluation.

15. Training modules specifying content, inputs, outputs, and costs will be prepared by the CLFTs. Their delivery will be contracted to service providers. The training will develop, within provincial line agency staff, commune councils, and village-level organizations, the ability to conduct inclusive, community-driven development planning.

c. Educate for Protection of Natural Resources

16. The Project will (i) assemble educational materials on natural resource management, including those developed under component 3 of the TSEMP; (ii) hold environmental awareness

20 These will include posters and video presentations in the language or dialect of the target audience. Specific information materials will also be prepared for the illiterate and semi-literate. 21 These will normally be included in the office of the CLFTs. 22 Accounting and procurement systems for the CLF will be formulated at the start of project implementation.

5 forums for staff of the Ministry of Agriculture, Forestry, and Fisheries, MOE, Ministry of Rural Development, Ministry of Women's Affairs, their provincial departments, and commune leaders; (iii) prioritize villages according to their potential impact on resource extraction; (iv) assemble, train, and equip a mobile training team to extend environmental awareness in priority villages; (v) deliver the environmental awareness program; and (vi) conduct monitoring and evaluation. The activities will build on achievements under component 1 of the TSEMP, according to the principles developed under an ADB-assisted pilot and demonstration activity.23

C. ADF IX Grant Component 17. As a poor, debt-stressed country, Cambodia is eligible for Asian Development Fund (ADF) grant financing of up to 50% of its ADB lending program, as spelled out in the ADF IX Donors' Report, Development Effectiveness for Poverty Reduction. It is recommended that ADB provide the Project with $15,000,000 grant financing from the ADF IX grant facilities. Special justifications include the Project's close alignment with the Tonle Sap Initiative and the Government's Rectangular Strategy for Growth, Employment, Equity, and Efficiency, as well as the Project's unequivocal intention to harness community-driven development to reduce poverty and vulnerability in one of the poorest regions of Cambodia.

D. Special Features 18. Grassroots Funding. The Project will bridge the gap in access to finance by improving the sectoral allocation and geographic balance of public investment. There is no generic solution to rural development: the process must be locally specific and responsive to conditions and circumstances; it must also maximize local participation. The concept of rural amenities provides the overarching perspective necessary for this.

19. Environmental Governance. The Project will help the Government to make a stand on environmental governance. The removal of fishing lots from the core areas would signify the Government's intention to meet the obligations that are embodied in treaties and conventions,24 and work toward the goals of the Seville Strategy for Biosphere Reserves, 1995.25

E. Cost Estimates 20. The total project cost, including contingencies, taxes, and duties, is estimated at $20.3 million equivalent. The foreign exchange cost is estimated at $6.9 million, or 34% of the total project cost. The local currency cost including taxes is $13.4 million, or 66% of the total project cost. Cost estimates are in Table 1.

23 ADB. 2003. Technical Assistance for Promoting Effective Water Management Policies and Practices III: Developing and Testing Methodologies and Tools for Environmental Education and Awareness. Manila. 24 Cambodia's obligations vis-à-vis the Tonle Sap are embodied in more than 10 treaties and conventions. These include the Convention on Wetlands of International Importance especially as Waterfowl Habitat (the Ramsar Convention), 1971; the Convention on International Trade in Endangered Species of Wild Fauna and Flora, 1979; and the Convention on Biological Diversity, 1992. One of the core areas of the TSBR, Boeng Tonle Chhmar, was designated as one of the country's three Ramsar sites in 1999. 25 The goals of the Seville Strategy for Biosphere Reserves are to (i) use biosphere reserves to conserve natural and cultural diversity; (ii) use biosphere reserves as models of land management and of approaches to sustainable development; (iii) use biosphere reserves for research, monitoring, education, and training; and (iv) implement the biosphere reserve concept. 6

Table 1: Project Cost Summary by Output ($ million)

Foreign Local Total Output Exchange Currency Cost A. Base Costs 1. Community-Driven Development Is Supported 5.67 11.83 17.50 2. Core Areas Are Safeguarded 0.48 0.29 0.77 3. Skills and Awareness for Sustainable Livelihoods Are Built 0.51 0.72 1.23 Subtotal (A) 6.67 12.84 19.51 B. Contingencies 1. Physical Contingenciesa 0.03 0.14 0.18 2. Price Contingenciesb 0.20 0.46 0.66 Subtotal (B) 0.23 0.60 0.83 Total 6.90 13.44 20.34 a Based on 5% for all costs except for civil works (10%). b Based on annual escalation factors. Source: Asian Development Bank estimates.

F. Financing Plan

21. It is proposed that ADB provide a grant of $15,000,000 equivalent to finance 58% of the foreign exchange cost of the Project amounting to $4.0 million, and 82% of the local cost, amounting to $11.0 million.26 The Government of Finland is expected to provide about $4,738,000 grant financing to cover the cost of consulting services and independent external auditors. The Government of Cambodia will contribute $600,000, or 3% of the total project cost, from local sources. The financing plan is in Table 2.

Table 2: Financing Plan ($ million)

Foreign Local Total Source % Exchange Currency Cost Asian Development Bank 4.0 11.0 15.0 74 Government of Finland 2.8 1.9 4.7 23 Government of Cambodia 0.1 0.5 0.6 3 Total 6.9 13.4 20.3 100 Source: Asian Development Bank estimates.

G. Implementation Arrangements

1. Project Management

22. The Ministry of Interior (MOI) will act as Executing Agency.27 In the context of decentralization and deconcentration,28 MOI has been tasked with building the central and local institutions that will support the operation of the entire sub-national system of governance and implementing the related capacity-building effort. While the Project will be executed predominantly at the commune level and rely on the decentralized structures strengthened under the Seila program, at the central level MOI plays a leading role in decentralization. MOI's main functions will be setting overall project direction, resolving implementation problems,

26 The allocation of grant proceeds in the Grant Agreement will be presented in US dollars, with reference only to total expenditure, in accordance with the policy on Cost Sharing and Eligibility of Expenditures for Asian Development Bank Financing: A New Approach. 27 MOI is the Executing Agency for the Commune Council Development Project. 28 Royal Government of Cambodia. 2005. Strategic Framework for Decentralization and Deconcentration Reforms. Phnom Penh.

7 reviewing project progress and performance against milestones (with reporting every 6 months), ensuring flow of funds to the communes29 and timely and adequate counterpart funding by the Government, and carrying out certain procurement under outputs 1 and 3.

23. The Ministry of Economy and Finance (MEF) will assist MOI in the smooth transfer of funds from the central to the commune levels. MEF has already created a local finance department to provide assistance and monitor the performance of sub-national administrations in the management of local finances. The Project will assign a domestic consultant to strengthen its operations. MEF also led the task force that drafted guidelines, standard operating procedures, and detailed instructions for financial management and procurement under donor-assisted projects.30 These guidelines, procedures, and instructions are expected to be formally approved by the Government in 2005, and the Project will provide an opportunity to apply them on a limited basis.

24. CARD, through its secretary general, will head a project steering committee established to provide policy and strategy guidance.31 CARD will also communicate project outcomes to the Council of Ministers. The steering committee will meet at least twice a year. An international consultant will assist CARD intermittently.

25. MOI will also be the Implementing Agency for output 1. The commune-level committees and working bodies that were strengthened under the Seila program have been enshrined in legislation but many institutional structures at the central, provincial, and district levels are to be reconfigured in a further phase of structural change itemized in the Government's strategic framework for decentralization and deconcentration.32 Importantly, the Government is drafting an Organic Law on Deconcentration to introduce decentralized governance structures at provincial and district levels (dovetailing with those created at commune level), streamline relations between government agencies at the central and provincial levels (now clouded by overlapping responsibilities and a mix of centralized, decentralized, and deconcentrated features), and devolve own-resource financing to sub-national levels. By February 2007, when the next commune elections take place, a successor to the Seila task force secretariat will be operational. Meanwhile, the existing institutions will continue to function, perhaps with different titles, and their roles will eventually be integrated into new structures developed according to the strategic framework.33 The Project will therefore work through the existing institutional arrangements but with such management and organizational flexibility that its structures and processes can evolve and blend with those of the anticipated new administrative structures.34 As an important move toward implementing the recommendations in the strategic framework, the Project will set up commune bank accounts as the vehicle for moving funds to the communes. The provincial local administration units in MOI's department of local administration will oversee the CLFTs.

29 First- and second-generation imprest accounts will be opened at the central level for this purpose (see Disbursement Arrangements section below). 30 This reflects the commitment made by Cambodia to implement the "Declaration by the Royal Government of Cambodia and Development Partners on Harmonization and Alignment" (December 2004), and thereby improve the management of external assistance. 31 The project steering committee will include the Cambodia National Mekong Committee, the Ministry of Agriculture, Forestry, and Fisheries, MEF, MOE, MOI, the Ministry of Rural Development, and the Ministry of Women's Affairs. Other ministries can join upon request. 32 The strategic framework was expected to be approved by the Council of Ministers in August 2005. 33 The new decentralization and deconcentration systems and processes will be introduced in two phases: a transitional phase of 2 years (2006–2007) and a consolidation phase of 3 years (2008–2010). 34 Retaining CLFT staff in the new structures would further guarantee sustainability. 8

26. The TSBR secretariat, in close consultation with DOF, IFREDI, and MOE, will be the Implementing Agency to accomplish output 2. The long-awaited sub-decree on community fisheries management was approved on 20 May 2005, and the draft Fisheries Law is also expected to be ratified by the national assembly before December 2005. The Government intends to reinforce its commitment to the edicts of biosphere reserve zoning. Critical to this is stopping the operations of fishing lots in the core areas once a management system compatible with biodiversity conservation has been instituted.

27. The activities for output 3 have been composed to promote the rapid accomplishment of output 1. CARD will equip itself to improve coordination for community-driven development. Given its important and increasing role in the implementation of local development planning through decentralized and deconcentrated agencies, MOI will also act as implementing agency in enhancing the skills base for community-driven development. MOE will act as Implementing Agency in educating for the protection of natural resources.

28. The CLFTs will oversee the implementation of livelihood support at commune and village levels. Each CLFT will be headed by the chief of the provincial local administration unit and will have a permanent administration and a representative from each of the provincial departments of rural development, environment, and women's affairs, and the provincial office of fisheries. It will also include commune facilitators,35 posted in each commune,36 to assist communities in (i) identifying activities suitable for funding under the CLF,37 and (ii) preparing the activities for submission to the CPBC.38 Additionally, the Project will attach to each CLFT domestic consultants responsible for guiding, training,39 fielding, and supporting the line agency staff and commune facilitators in the performance of their duties. An international consultant to be based in each of the CLFTs in Pursat and Siem Reap will manage and coordinate CLF implementation.40 The CLFTs will approve the activities, monitor procurement by the commune councils, and report on CLF-related activities to MOI through the provincial local administration units.

2. Implementation Period

29. The Project will span 4 years. All project activities are expected to be fully completed within this time. But much will depend on a speedy start-up to output 1. During the first 6 months there will be an intensive effort to build skills and awareness for sustainable livelihoods. In each commune, information dissemination workshops will be held and awareness-raising materials (e.g., pamphlets, posters, and samples of activity proposals) in the Khmer language will be distributed to villages through their CPBC representatives. Commune facilitators41 will be recruited, and a first round of priority activities42 for funding under the CLF will be identified in

35 Commune facilitators were created under the Seila program (some 800 have been appointed in 24 provinces) to assist commune councils in planning and to monitor the implementation of works. 36 An additional 74 commune facilitators (48 for Battambang, Kompong Chhnang, and Pursat; and 26 for Siem Reap and Kompong Thom) will be selected and appointed. Each commune will be represented by two facilitators. 37 The CLFTs will take the opportunity to promulgate the technical packages based on sustainable natural resource management that are being designed under component 2 of the TSEMP. 38 The commune facilitators will have extensive experience in facilitation, including presenting, synthesizing, and responding to organizational issues raised. 39 Training will focus on awareness raising, group formation, planning, coordination, quality assurance, and reporting. 40 Pursat has 13, Siem Reap 10, Battambang 8, Kompong Chhnang 3, and Kompong Thom 3 target communes. 41 The long list of candidates will be drawn up by the commune councils based on criteria agreed with CPBCs and line agency staff assigned to the CLFTs. 42 Most of the activities are expected to be drawn from existing commune development plans—those that were not funded in the current development budget or multi-year plans.

9 consultation with the CPBCs. Activities will be screened by the consultants to eliminate any that are unsuitable, and a combined list will be submitted to the commune councils for approval. Detailed designs, cost estimates, business plans, and implementation arrangements will be prepared for approved activities, and then contracts for their implementation will be prepared and awarded.43 The consultants will use this first cycle to provide direct, hands-on training to the commune facilitators and other agents (e.g., village representatives, administrative staff of commune councils, and CPBC members) in identifying, screening, designing, and implementing activities under the CLF. Adherence to this plan of action should ensure that later activities for output 1 proceed smoothly. The accomplishment of outputs 2 and 3 is not expected to present difficulties.

3. Procurement

30. Civil works, goods, and related services will be procured in accordance with ADB's Guidelines for Procurement. Civil works for output 1, such as water supply and sanitation, schools, and small village works, that cost less than $500,000 will be procured through local competitive bidding procedures acceptable to ADB. Any substantial variation in civil works contracts would need prior approval from ADB. Their small and scattered nature is not likely to attract international bidders. Vehicles, machinery, and office equipment will be procured through international shopping if the cost per package is from $100,000 to $500,000, and through local competitive bidding if the cost is less than $100,000. Goods with a value of less than $50,000 can be purchased directly. Service contracts may be given to NGOs. The commune councils, through the bidding committee, will procure civil works, goods, and related services for eligible activities. Details of procurement packages will be determined during project implementation. The training packages under output 3 will be procured by MOI.

4. Consulting Services

31. The Project will require 841 person-months of consulting services—708 person-months by domestic consultants and 133 person-months by international consultants. The consultants will be selected and engaged according to ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for the selection and engagement of domestic consultants. If any substantial amendment of the contract is proposed after its execution, the proposed changes shall be submitted to the Bank for prior approval. In view of its experience, capacity, and commitment, the WorldFish Center of the Consultative Group on International Agricultural Research will be appointed by direct selection for output 2.44 Live and Learn Environmental Education45 will be appointed by direct selection for the activities in output 3 that relate to education for the protection of natural resources. ADB's quality- and cost-based selection method will be used in recruiting all other consultants. Two international consultants and 20 domestic consultants will be based in the project provinces. A team of international and domestic consultants will be attached to MOI's department of local administration46 in Phnom Penh.

43 The Project will aim to complete these operations in time for the communes to receive the CLF funds together with the development funds, which are released each February by the national treasury. 44 The WorldFish Center works on inland and marine fisheries in developing countries. It has existing collaboration arrangements with DOF on issues dealing with institutional frameworks, livelihood analysis, and economic valuation. It has just opened a regional center in Phnom Penh. 45 Live and Learn Environmental Education is a regional nongovernment organization specializing in environmental education. It works with poverty-stricken communities to develop community-based problem-solving models and with government to integrate these models into national curricula and education strategies. It has been tasked with delivering the national environmental education and awareness campaign under component 1 of the TSEMP. 46 A project manager no lower in rank than a director will serve full time throughout the Project. 10

5. Disbursement Arrangements

32. The Government will open a first-generation imprest account at the National Bank of Cambodia into which grant funds from ADB will be deposited. The amount to be deposited into the first-generation imprest account will not exceed the equivalent of $1 million. A second- generation imprest account will be established in the name of MOI in a commercial bank, acceptable to the Government and ADB, for the purpose of replenishing and liquidating the CLF and for other activities under the Project. The ceiling of the second-generation imprest account will not exceed $500,000. ADB's statement-of-expenditures procedure will be used to reimburse eligible expenditures and to liquidate advances to the imprest accounts. The ceiling on the statement of expenditure is $100,000 per payment. The first- and second-generation imprest accounts will be established, managed, replenished, and liquidated according to ADB's Loan Disbursement Handbook of January 2001, as amended from time to time, and detailed arrangements agreed upon between the Government and ADB. The CLF grant funds will be transferred from the second-generation imprest account to the account of each of the 37 commune councils at a commercial bank acceptable to ADB and MOI.

6. Accounting, Auditing, and Reporting

33. MEF, MOE, MOI, the TSBR secretariat, and the CLFTs will maintain separate accounts strictly for the Project. The CLFTs will maintain ongoing and up-to-date accounts for the Project according to sound and acceptable accounting principles and will submit quarterly reports to MOI through the provincial local administration units. The CLFTs will use the financial management procedures in the Financial Management Manual and its supplement.47 MOI will prepare an annual financial report on the Project's accounts and submit it to MEF and ADB. The imprest accounts and statement of expenditures will be audited as part of the regular audit of the Project's accounts and financial statements, and audit opinions on the imprest account and statement of expenditures will be set out separately according to ADB procedures. The Project's accounts will be audited each year by independent external auditors acceptable to ADB. The audited accounts, together with the auditor's report, will be submitted to ADB not more than 6 months after each financial year. MOI's decision in June 2005 to establish provincial and municipal C/SF accountability working groups is also expected to promote the transparent, accountable, and effective use and implementation of the CLF. The annual audit report should specify the auditor's opinion on the imprest accounts and statement of expenditures.

7. Anticorruption Measures

34. ADB's Anticorruption Policy was explained to and discussed with the Government. Consistent with its commitment to good governance, accountability, and transparency, ADB reserves the right to investigate, directly or through its agents, any alleged corrupt, fraudulent collusive or coercive practices relating to the Project. To support these efforts, relevant provisions of ADB's Anticorruption Policy are included in the Loan Regulations and the bidding documents for the Project. In particular, all contracts financed by ADB in connection with the Project will include provisions specifying the right of ADB to audit and examine the records and accounts of the Executing Agency and all contractors, suppliers, consultants, and other service providers as they relate to the Project.

47 ADB and World Bank. 2005. Financial Management Manual for Investment Projects Financed by ADB and the World Bank. Manila. Also relevant here is the Manual on Operating Procedures for Externally Assisted Projects Under the Purview of the Ministry of Economy and Finance (undated). Manila.

8. Project Performance Monitoring and Evaluation

35. Project performance monitoring and evaluation will be based on the design and monitoring framework and the baseline surveys specified in it. Monitoring will also be undertaken by the Executing Agency as part of the standard procedures required by ADB through the disbursement of funds and the semiannual and annual reporting. The Implementing Agencies will be responsible for providing the Executing Agency with quarterly progress reports on their respective outputs.

9. Project Review

36. ADB will conduct semiannual reviews facilitated by CARD. The reviews will (i) examine the appropriateness of implementation arrangements and schedules of activities, (ii) assess the procedures for village and commune development plans, (iii) review compliance with agreed procurement procedures, (iv) analyze the outcomes of the capacity-building and training programs, and (v) monitor, in consultation with the TSBR secretariat, the effectiveness of safeguard procedures. At mid-term, a comprehensive project review will be jointly undertaken by ADB and the Government. Within 3 months of project completion, MOI will submit to ADB a project completion report in the standard ADB format.

II. THE PROJECT AREA

37. The Project will benefit people in the communes that are located either fully or partly in the buffer zone and core areas of the Tonle Sap Biosphere Reserve. The buffer zone, while not fully contiguous with the limits of the flooded forest, largely consist of flooded forest, and thus the project area can be understood as being centered on the flooded forest and the Tonle Sap itself. Specifically, the project area covers 37 communes surrounding the lake in which there are a total of 316 villages with a population of 287,430 in 54,857 families. The Project area can be divided into two parts: (i) the 21 communes with villages in the buffer zone, and (ii) the 16 communes with community fisheries and some area, but no villages, inside the buffer zone.

Table 3: Project Area Population

No. of No. of Villages Villages in TA Population of Project No. of No. of Villages No. of Villages Covered by not Covered Covered Area Communes Covered in BZ and CZ Community by Villages Fisheries Community Fisheries

1 21 155 133,000 65 72 57 2 16 161 154,000 0 59 102 Total 37 316 287,000 65 131 159 BZ = buffer zone, CZ = controlled zone, TA = transition area.

Table 4: Project Communes

No. of Villages No. of Villages No. of Other Total No. No. of Population Province in the Covered by Villages of Villages Families Buffer Zone Community Fisheries Battambang 1 Aek Phnum 1 Kaoh Chiveang 5 4 – 5 1,726 9,404 2 Preaek Luong – 5 2 7 1,790 9,057 3 Preaek Norint 4 6 10 2,760 13,339 4 Prey Chas 5 5 5 756 3,969 2 Sangkae 5 Kompong Preah 1 5 6 1,571 8,802 6 Kompong Preang 1 5 6 1,791 9,096 7 Roka 1 5 6 1,639 8,061 8 Ta Pon 5 5 2,545 13,016 Kompong Chhnang 3 Baribour 9 Chhnok Tru 3 3 687 3,927 10 Trapeang Chan 2 2 4 980 4,424 4 Kompong Leaeng 11 Pralay Meas 1 2 3 6 829 4,195 Kompong Thom 5 Kompong Svay 12 Phat Sanday 5 5 970 4,691 6 Stoung 13 Chamnar Kraom 4 6 10 1,979 10,549 14 Peam Bang 5 4 5 616 2,905 Pursat 7 Bakan 15 Boeng Bat Kandaol 4 9 13 1,951 10,182 16 Me Tuek 2 6 9 15 2,516 13,227 17 Ou Ta Paong 1 17 18 2,911 15,616 18 Snam Preah 1 19 20 3,142 16,276 8 Kandieng 19 Kanhchor 5 7 12 1,713 8,378 20 Reang Til 5 5 5 892 4,818 21 Srae Sdok 1 16 17 1,877 10,130 9 Krakor 22 Ansa Chambak 4 3 7 1,197 6,152 23 Kompong Luong 5 5 1,214 7,029 24 Kompong Pou 3 5 8 1,173 5,661 25 Kbal Trach 1 10 11 1,423 7,740 26 Ou Sandan 2 5 7 876 4,342 27 Sna Ansa 1 9 10 901 4,476 Siem Reap 10 Chi Kraeng 28 Anlong Samnar 2 16 16 1,968 10,525 11 Kralanh 29 Sambuor 8 8 1,077 5,566 12 Prasat Bakong 30 Kompong Phluk 3 3 3 459 2,523 13 Puok 31 Kaev Poar 1 8 8 1,031 5,771 32 Lvea 6 6 12 1,627 9,267 33 Mukh Paen 4 2 6 914 4,945 34 Pou Treay 2 2 2 293 1,779 14 Siem Reab 35 Chong Khnies 7 7 7 1,101 5,812

No. of Villages No. of Villages No. of Other Total No. No. of Population Province in the Covered by Villages of Villages Families Buffer Zone Community Fisheries 15 Soutr Nikom 36 Dan Run 5 8 13 2,020 11,030 37 Kompong Khleang 4 10 10 1,942 10,750 Grand Total 65 131 159 316 54,857 287,430

Table 5: Project Villages

Village Villages Covered Villages in No. of Population by Community Buffer Families Fisheries Zone Kompong Chhnang 2 6 2,496 12,546 3 District Baribour 9 Comm. Chhnok Tru 0 3 51 Chhnok Tru 420 2,535 52 Kompong Preah 136 772 53 Seh Slab 131 620 10 Comm. Trapeang Chan 0 2 54 Kandal 213 1,012 55 Kbal Damrei 296 1,186 56 Sanlang 222 1,042 57 Trapeang Chan 249 1,184 Sub-total for District 0 5 1,667 8,351 4 District Kompong Leaeng 11 Comm. Pralay Meas 2 1 58 Anlong 193 947 59 Kaoh Ruessei 161 702 60 Kramal 72 342 61 Krang Phtel 103 510 62 Pralay Meas 205 1,145 63 Ta Daok 95 549 Sub-total for District 2 1 829 4,195

Kompong Thom 8 10 3,565 18,145 5 District Kompong Svay 12 Comm. Phat Sanday 0 5 64 Kompong 212 1,115 65 Kaoh Ta Pov 250 1,182 66 Neang Sav 171 713 67 Phat Sanday 149 751 68 Tuol Neang Sav 188 930 Sub-total for District 0 5 970 4,691 6 District Stoung 13 Comm. Chamnar Kraom 4 0 69 Chamnak 175 933 70 Chi ab 211 1,161 71 Lieb 50 269 72 Neang Noy 169 843 73 Preah Neangkoal 254 1,271 74 Sampoar 219 1,092 75 Sandan 199 1,190 76 Spean Krong 333 1,795 77 Srei Ronguet 144 855 78 Svay Ie 225 1,140 14 Comm. Peam Bang 4 5 79 Ba Lat 115 562 80 Doun Sdaeng 108 583 14

Village Villages Covered Villages in No. of Population by Community Buffer Families Fisheries Zone 81 Peam Bang 206 936 82 Pechakrei 76 279 83 Pov Veuy 111 545 Sub-total for District 8 5 2,595 13,454 Pursat 27 19 21,786 114,027 7 District Bakan 15 Comm. Boeng Bat 4 0 84 Bat Kandaol 140 703 85 Bat Trach 127 648 86 Boeng Chhuk 104 600 87 Doung Chrum 241 1,355 88 Ou 237 1,315 89 Preah Ampil 156 808 90 Robang Romeas 211 970 91 Ruessei Ta Man 176 962 92 Samraong 112 537 93 Svay 65 315 94 Svay Chrum 134 697 95 Tram Seh 162 834 96 Tuol Thmea 86 438 16 Comm. Me Tuek 6 2 97 Angkanh 219 1,125 98 Cha Yov 177 914 99 Chen Tay 250 1,301 100 Dei Roneat 137 699 101 Kaoh khsach 131 684 102 Kaomsamnor 155 881 103 Kdat 284 1,260 104 Ma 66 344 105 Me Tuek 142 705 106 Ou Preal 154 838 107 Paolao 163 865 108 Prekkro 109 769 109 Samraong Prey 119 665 110 Ta Mom 255 1,296 111 Trang 155 881 17 Comm. Ou Ta Paong 1 0 112 Anlong Kray 186 980 113 Bat Kokir Chas 129 705 114 Bat Kokir Thmei 237 1,276 115 Chamkar Khloy 215 1,096 116 Chamkar Ou 154 788 117 Oknha Moan 154 889 118 Ou Bat 86 539 119 Ou Ta Paong 301 1,665 120 Phsar Andaet 180 939 121 Prey Krabau 107 537 122 Prey Yeang 50 378 123 Robaoh Reang 191 956 124 Samraong Pok 130 788 125 Sdok Khlouk 285 1,375 126 Srah Mkak 194 1,104 127 Srah Run 132 610 128 Ta Nai 90 515 129 Tuol Rokeang 90 476 18 Comm. Snam Preah 1 0 130 Andoung Krasang 273 1,500 131 Andoung Sanbuor 171 1,015 132 Anlong Mean 141 664

Village Villages Covered Villages in No. of Population by Community Buffer Families Fisheries Zone 133 araen 130 628 134 Bak Pring 136 714 135 Chambak Meas 204 1,016 136 Cheung Phleung 116 632 137 Dangkieb Kdam 100 477 138 Kampeaeng Svay 104 545 139 Kaoh Krasang 103 561 140 Khmar 239 1,424 141 Krapeu Rou 224 846 142 Pnov 182 927 143 Sameakki 141 787 144 Sdok Svay 151 837 145 Snam Preah 112 520 146 Svay at 94 421 147 Thnuoh Ta Chab 225 1,267 148 Tram Peaer 163 751 149 Tuol Khmaer 133 744 Sub-total for District 12 2 10,520 55,301 8 District Kandieng 19 Comm. Kanhchor 5 0 150 Boeng Kranh 93 524 151 Dang Ou 86 420 152 Kandal 93 374 153 Kanhchor 183 888 154 Koun Kray 134 643 155 Phlov Luong 158 804 156 Pou Andaet 136 746 157 Preaek Trabaek 251 1,405 158 Roleang 153 698 159 Samraong 149 685 160 Tbaeng Prakieb 141 656 161 Tuol Totueng 136 535 20 Comm. Reang Til 5 5 162 Kaoh K'aek 287 1,582 163 Kaoh Ta Kaev 242 1,252 164 Phum Charoh 65 334 165 Phum Preaek 99 571 166 Reang Til 199 1,079 21 Comm. Srae Sdok 0 1 167 Bakur 203 981 168 Banteay Traok 112 633 169 Chamkar Ta Pour 112 557 170 Chamreh 169 883 171 Entheakyea 104 611 172 Kdei Chhvit 131 740 173 Phteah Kaoh 66 328 174 Pou 83 439 175 Pou Pir 86 473 176 Pring Khpos 123 720 177 Saen Chey 96 476 178 Sarieng 55 475 179 Ta Mao Leu 90 423 180 Thlea Ampil 95 519 181 Thmei 154 776 182 Trang 114 654 183 Veal 84 442 Sub-total for District 10 6 4,482 23,326 9 District Krakor 22 Comm. Ansa Chambak 0 4 16

Village Villages Covered Villages in No. of Population by Community Buffer Families Fisheries Zone 184 arang Pruoch 98 647 185 Kompong Thkoul 166 805 186 Kbaldamrei 113 583 187 Khsach L'et 319 1,498 188 San Sar 129 684 189 Thkoul Thum 197 1,006 190 Thkoul Touch 175 929 23 Comm. Kompong Luong 0 5 191 Phum Bei 118 653 192 Phum Buon 227 1,239 193 Phum Muoy 185 922 194 Phum Pir 117 813 195 Phum Pram 567 3,402 24 Comm. Kompong Pou 3 0 196 Chek Chau 243 1,136 197 Kompong La 253 1,164 198 Moat Prey 177 804 199 Pou Kod 110 680 200 Pou Robang 159 649 201 Roluos Kandal 90 471 202 Roluos Khang 68 418 203 Sna Reach 73 339 25 Comm. Kbal Trach 0 1 204 Chheu Teal 163 751 205 Doung 83 395 206 Kompong Leu 213 1,275 207 Kandal 125 667 208 Kralanh 99 632 209 Phsar 118 645 210 Samraong 130 737 211 Srae Ruessei 78 415 212 Totueng 93 410 213 Trapeang Rumdenh 217 1,236 214 Trapeang Smach 104 577 26 Comm. Ou Sandan 2 0 215 Chong Khlong 152 678 216 Doung Chuor 98 570 217 Krang Thum 134 553 218 Ou ach Kok 100 599 219 Ou Ta Prok 182 936 220 Puttream 118 564 221 Thnoeng 92 442 27 Comm. Sna Ansa 0 1 222 Ansa Kdam 96 521 223 Beng 112 554 224 Chi Cheh 69 357 225 Kompongprak 39 159 226 Krang Veaeng 157 879 227 Sarovoan 64 292 228 Sna Ansa 85 385 229 Svay Sa 88 414 230 Thmei 78 374 231 Veal Vong 113 541 Sub-total for District 5 11 6,784 35,400 Siem Reap 69 19 12,432 67,968 10 District Chi Kraeng 28 Comm. Anlong Samnar 16 2 232 Anlong Pring 133 755 233 Anlong Pring Leu 132 750

Village Villages Covered Villages in No. of Population by Community Buffer Families Fisheries Zone 234 Anlong Ruessei 120 531 235 Anlong Samnar 139 691 236 Chaek Khsach 79 396 237 Chaek Khsach 88 488 238 Lbaeuk 104 565 239 Meat Khla 159 902 240 Preaek Angkor 165 832 241 Samraong Thum 153 825 242 Sdau 148 915 243 Stueng Chrov 44 249 244 Svay Ta Daok 133 597 245 Ta Kuem Kraom 97 546 246 Ta Kuem Leu 120 689 247 Trapeang Tras 154 794 Sub-total for District 16 2 1,968 10,525 11 District Kralanh 29 Comm. Sambuor 8 0 248 Ampil 116 606 249 Anlong Sar 49 280 250 Damnak Khchas 302 1,385 251 Kouk Chas 108 561 252 Kouk Krouch 159 754 253 Ovmal 106 582 254 Sambuor 150 820 255 Santhan 87 578 Sub-total for District 8 0 1,077 5,566 12 District Prasat Bakong 30 Comm. Kompong Phluk 3 3 256 Dei Kraham 144 936 257 Kouk Kdol 154 956 258 Tnaot Kambot 161 631 Sub-total for District 3 3 459 2,523 13 District Puok 31 Comm. Kaev Poar 8 1 259 Kamphem 155 805 260 Kouk Pou 126 669 261 Kouk Ruessei 157 852 262 Peam Ta Uor 227 1,265 263 Prey Danghaeum 96 641 264 Roka Yea 107 573 265 Svay Chek 104 638 266 Thmei 59 328 32 Comm. Lvea 6 0 267 Chreas 167 956 268 Doun Tro 141 747 269 Kouk Srama 110 622 270 Kouk Thmei 116 678 271 Kumru 106 545 272 Lvea 224 1,325 273 Preah Angk 95 463 274 Prohut 51 316 275 Roka 143 816 276 Snao 136 742 277 Stueng Preah Srok 183 1,144 278 Tuol Lvieng 155 913 33 Comm. Mukh Paen 4 0 279 Kouk Reang 156 886 280 Kouk Run 106 588 281 Mukh Paen 176 1,074 18

Village Villages Covered Villages in No. of Population by Community Buffer Families Fisheries Zone 282 Sva Huol 173 857 283 Ta Trav 164 837 284 Trakiet 139 703 34 Comm. Pou Treay 2 2 285 Pou 85 501 286 Treay 208 1,278 Sub-total for District 20 3 3,865 21,762 14 District Siem Reab 35 Comm. Chong Khnies 7 7 287 Phum Bei 118 657 288 Phum Buon 117 685 289 Phum Muoy 172 908 290 Phum Pir 113 563 291 Phum Pram 78 470 292 Phum Prammuoy 147 664 293 Phum Prampir 356 1,865 Sub-total for District 7 7 1,101 5,812 15 District Soutr Nikom 36 Comm. Dan Run 5 0 294 Bantoat Baoh 117 616 295 Beng 143 756 296 Kouk Chan 128 710 297 Kouk Ruessei 113 648 298 Kouk Ruessei 113 639 299 Run Khang Cheung 216 1,206 300 Run Khang Tboung 174 881 301 Santey 156 844 302 Srama Thum 167 942 303 Thnal Dach 182 1,049 304 Thnong 167 939 305 Trav Kiet 141 768 306 Veal 203 1,032 37 Comm. Kompong Khleang 10 4 307 Chamkar Yuon 155 931 308 Cheay Chet 86 444 309 Mukh Voat 164 874 310 Ou Ta Puk 249 1,329 311 Phsar Khleang 301 1,553 312 Preaek Sramaoch 310 1,440 313 Roteang 166 979 314 Spean Veaeng 141 945 315 Ta Chranieng 225 1,345 316 Ta Uor Sa 145 910 Sub-total for District 15 4 3,962 21,780 Grand Total 131 65 54,857 287,430

Table 6: Communes Not Included in the Project Area Communes with Area, but No Villages, in the Buffer Zone and No Community Fisheries

No. of Villages No. of Villages No. of Other Total No. No. of No. of in the Covered by Villages of Villages Families People Buffer Zone Community Fisheries Battambang 1 Moung Ruessei 1 Chrey 0 0 8 8 2,208 11,133 Kompong Chhnang 2 Kompong Leaeng 2 Chranouk 0 0 4 4 1,326 6,368 3 Phlov Tuk 0 0 3 3 458 2,599 4 Pou 0 0 6 6 981 4,081 Kompong Thom 3 Stoung 5 Msar Krang 0 0 11 11 1,760 8,577 6 Pralay 0 0 14 14 2,299 12,440 7 Samprouch 0 0 17 17 1,821 10,692 Pursat 4 Kandieng 8 Sya 0 0 11 11 1,231 6,297 5 Krakor 9 Anlong Tnaot 0 0 12 12 1,639 8,264 Siem Reap 6 Chi Kraeng 10 Lveaeng Ruessei 0 0 13 13 2,057 10,807 11 Spean Tnaot 0 0 15 15 1,644 9,247 7 Prasat Bakong 12 Kandaek 0 0 10 10 2,018 10,674 8 Puok 13 Puok 0 0 11 11 2,197 12,384 14 Samraong Yea 0 0 6 6 910 5,004 9 Siem Reab 15 Chreav 0 0 7 7 1,313 7,607 16 Sala Kamraeuk 0 0 7 7 2,577 15,655 17 Sambuor 0 0 5 5 567 2,965 18 Siem Reab 0 0 8 8 2,362 14,654 19 Srangae 0 0 7 7 854 5,109 10 Soutr Nikom 20 Khchas 0 0 7 7 1,535 8,346 Grand Total 0 0 182 182 31,757 172,903

III. THE SUSTAINABLE LIVELIHOODS APPROACH

A. Definition

38. The sustainable livelihoods approach is based on an understanding of the nature and interaction of five key livelihood components: • Livelihood Assets—the strengths that people have available to achieve their livelihood goals. • Transforming Structures and Processes (often referred to as policies, institutions, and processes)—the enabling environment for livelihoods. • Livelihood Strategies—the range and combination of activities and choices adopted to achieve livelihood goals. • Livelihood Outcomes—the achievements or outputs of livelihood strategies. 20

• Vulnerability Context—the factors operating in the external environment, which may affect people's susceptibility to poverty.

Figure: Sustainable Livelihoods Approach

I n LIVELIHOOD ASSETS

TRANSFORMING LIVELIHOOD O STRUCTURES & OUTCOMES VULNERABILITY r H PROCESSES d CONTEXT • More income e STRUCTURES r • Increased • SHOCKS S N LIVELIHOOD Influence • Levels of well being Government STRATEGIES • TRENDS & access T • • Laws Reduced • Private o • SEASONALITY Sector • Policies vulnerability PF • Culture A . Improved c Food security

• Institutions h More PROCESSES i sustainable use e of NR base v e

39. The sustainable livelihoods approach considers assets in terms of human, social, financial, physical, and natural capital. In the Tonle Sap region, most livelihoods are based on access to natural capital, either through agriculture or through exploitation of renewable natural resources. It is the interaction between the various forms of capital, their relative strengths and weaknesses, and the diverse externalities, which determine the options for, and success of, livelihood strategies.

40. The following table outlines the issues raised as priorities in 67 villages around the Tonle Sap during project preparation. Thirty three of the total 67 villages surveyed are located in the transition zone.

Table 7: Gender Disaggregated Priorities in the Transition Area, Buffer Zone, and Core Areas

Percentage of Percentage Percentage of Broad Priority Villages Citing of Females Males Citing This Citing This This TA 56 38 65 Irrigation Systems (dry season cultivation) BZ/CA 40 15 40 TA 56 45 65 Access to Credit BZ/CA 20 25 5 TA 40 40 45 Livestock Activities BZ/CA 40 34 38 TA 24 19 12 Improved Health and Hygiene BZ/CA 40 45 29 TA 24 20 35 Improved Communications (roads and bridges) BZ/CA 20 16 28 TA 12 25 8 Improved Access to Education BZ/CA 28 28 25 TA 12 10 19 Better Rice Seed, Fertilizers, and Pest Control BZ/CA 24 15 28 TA 12 10 15 Other Agriculture (non-rice) BZ/CA 8 6 10 TA 8 0 9 Aquaculture BZ/CA 52 32 55 TA 4 5 2 Post-Harvest BZ/CA 20 10 25 TA 4 12 12 Off-Farm Income-generating Activity BZ/CA 12 15 9 TA 0 0 0 Improved Fisheries Management BZ/CA 76 31 52 BZ = buffer zone, CA = core area, TA = transition area.

B. The Asset Base

41. Target communities rely on natural resources, catching enough fish, collecting sufficient forest products, and growing supplementary crops, to ensure their livelihood. Table outlines the issues raised as priorities in 67 villages around the Tonle Sap.

42. Priorities for asset accumulation vary according to the specific circumstances of the villages concerned. Enhancement of natural assets is a priority in all zones, but communities focus on access to land and water for agriculture, whereas the key concern in the BZ and CA was sustainable production from fisheries, both from more effective participatory management and aquaculture development. The BZ/CA communities have a strong interest in land development and irrigation systems for agriculture, due perhaps to poor performance of 22 fisheries in 2004, and concern over a general decline in production over which participants felt they had no control.

1. Natural Capital

43. The core elements of the natural asset base identified were: (i) fish and other aquatic resources, (ii) timber and non-timber forest products, (iii) water, (iv) land and crops, and (v) livestock.

a. Fisheries

44. Actual production estimates may vary widely, but the value of the Tonle Sap fishery is well documented. The importance of fish to the livelihood of people living in the BZ and CA was clearly stated, as was the seasonal relevance of fishing to the livelihood strategies of many people living in the transition zone. Fish provide self-employment, wage employment (for men and women in the fishing lots), direct nutrition, indirect nutrition, and other livelihood needs (by cash sale or barter for other produce).

b. Timber and Non-Timber Forest Products

45. In the flooded forest areas, many people, notably women, place great emphasis on the traditional access to timber and non-timber forest products. A wide range of products from medicinal plants, fruits and firewood, to amphibians and reptiles, play a part in livelihood strategies, and access to these assets is of major importance, particularly to people without access to land for agriculture.

c. Water

46. Water is the core asset underpinning livelihoods around the Tonle Sap and is highly valued by all villagers, irrespective of zone. It provides for agriculture (dry season, wet season, and recession cropping), fisheries production, and domestic use.

d. Land and Crops

47. The importance of land varied according to the agro-ecological zone and the livelihood strategies. However, land suitable for agriculture was a highly-prized asset of interest to people in all parts of the project area, including the core areas. All land suitable for agriculture within the project area tends to be occupied and fully utilized.

e. Livestock

48. Livestock occupies an important place in the livelihood ambitions of many people from all zones of the Tonle Sap. Livestock is regarded as both a source of income and as a livelihood safety net to be sold in response to shocks such as illness or expenses associated with marriage or death.

2. Human Capital

49. Human capital includes the skills, knowledge, ability to work, and good health that enable a person to pursue a sustainable livelihood. From the analysis of natural assets, this capital underpins the use of all other forms of capital.

50. There is substantial body of knowledge in local communities, ranging from the development and use of indigenous fishing gear in the water bodies of the Tonle Sap, to a detailed knowledge of the practical uses of timber and non-timber forest products from the flooded forest and a highly developed tradition of wet season and flood recession agricultural cropping. Nevertheless, villagers are adamant that they still have the necessary skills and knowledge to develop their livelihoods without dependency on external guidance, and that there are still plenty of 'good people' in communities to guide and support the development process. There is, however, acceptance that it is necessary to learn new skills on which to base improved livelihoods in the face of changing times, whether these skills are farm- or fishery-based, or off- farm.

3. Social Capital

51. Social capital comprises the networks and relationships which exist between communities and groups, and which people make use of in their livelihoods whether informal or formal. There are many different patronage arrangements within communities. Community-based organizations are included as social capital. In theory, the VDCs should be the focal point for coordinating village development, and provide a source of information and advice for people seeking to resolve livelihood issues. The VDCs should also provide the conduit for exchange of information between the village and the commune council (which might have 7 or more villages to support). In reality, the role and success of the VDC varies widely depending on how it was set up, the training, and the actual role and functions performed.

52. The community fisheries and community forestry organizations are important community-based organizations that are sources of social capital. These have generated a degree of cohesion and sense of purpose among groups of villagers. However, the effectiveness of these organizations is currently constrained by operational problems and there have been suggestions that the organizations do not represent the wider community. The lack of strong VDCs as a village-wide integrating force is probably a major contributing factor.

53. The overall message derived from project preparatory work was that communities feel that they still have a substantial level of social capital, but lack financial and group management skills necessary for self-help livelihood improvement.

4. Financial Capital

54. Financial capital is the resource that people use to achieve livelihood strategies. It includes cash and savings, access to credit, and the ability to convert other assets (e.g., boat, motor, cattle, or jewelry) into cash. It also covers remittances sent by family members working elsewhere. Financial capital is highly versatile and can be converted into other assets, or used directly for livelihood outcomes.

55. Access to credit was high on the list of priorities expressed. Credit was used for many purposes, i.e., invest in livestock, improved rice seed, fertilizers, pest control, fishing gear, and aquaculture. However, the demand does not imply that credit is not available. ACLEDA is the 24 main formal finance provider in the Tonle Sap, and makes credit available at rates between 3% and 4% per month, depending on the type of loan. Nongovernment organizations provide credit at around 3% per month, small traders and village money lenders offer loans (at up to 30%), or credit may be offered against payment in kind (e.g., fish or fish products). Money is clearly available as loans. However, ACLEDA requires collateral (which excludes the poor) and has strong rules and responses to non-payment.

5. Physical Capital

56. Physical capital is the infrastructure and tool used to support livelihood strategies. The capital varies according to strategy, e.g., households may require boats, gear, landing sites, drying pads, irrigation systems, ploughs, and holding facilities for livestock. Some elements of physical capital, such as roads, schools, housing, water supply systems, health clinics, and markets, are vital to all livelihoods. Although rural infrastructure generally tends to be less than adequate for livelihood needs throughout the Project area, there are, nevertheless, substantial physical assets.

C. The Vulnerability Context

57. The strengths of communities, in terms of their livelihood assets, are inevitably affected by their vulnerability. There are three broad areas contributing to the vulnerability of poor people, trends, shocks, and seasonality. These are summarized below.

1. Trends

58. Core trends identified included: • declining fish resources, reflected in decreased catches per household; • decreasing flooded forest area and decreasing forest products, notably wildlife; • increasing human population relying on common property resources; • increasing need for land by transition zone dwellers, notably the poor; • increasing demand for Tonle Sap fish products on foreign markets; and • declining water quality and water levels.

2. Shocks

59. The shocks identified include: • conflict between resource users; • a sudden drop in the availability of fish; • outbreaks of disease among livestock (e.g., Newcastle disease in fowl); • natural disasters; and • economic shocks.

3. Seasonality

60. Seasonality issues identified include: • seasonal food security; • seasonal health issues; and • seasonal wage labor opportunities.

D. Policies, Institutions, and Processes

61. The Government and ADB are working towards a new institutional arrangement for the integrated management of the Tonle Sap (the Tonle Sap Basin Management Organization), but there are major inadequacies. These concerns are, to an extent, mitigated by the strengths emerging in transforming structures and processes: • The existence of, and enthusiasm for, community management groups; • The recent development of a new fisheries law and general management plan; • Institutional change in the department of fisheries favoring community participation; • Establishment of the Tonle Sap Biosphere reserve secretariat in partnership with the Ministry of the Environment; • Advances in decentralized government capability at the commune council and provincial levels (e.g., the Seila program); and • The formation of the Council for Agricultural and Rural Development as a coordinating force for integrated rural development.

62. These institutional changes contribute to a foundation for improving and sustaining livelihoods in the Tonle Sap, but considerable reinforcement and support are needed.

IV. THE COMMUNITY LIVELIHOOD FUND

63. Activities eligible for community livelihood fund grant funds will include, but will not be limited to, those described below: (i) Social infrastructure. The cost limit for each village is $20,000 (refer to Table). The participatory livelihoods analyses conducted during project preparation showed high priority for improvement of water supply and sanitation, rehabilitation and enlargement of schools, provision of houses for teachers, and construction of small village facilities (e.g., community meeting rooms, fish processing sheds and drying platforms, small produce stores, small markets, and solar power supply for public buildings). New road construction is a special case that would require clearance by the Ministry of Environment. (ii) Income generation. Grants for income-generating activities will be available to groups and individuals. Non-rice agricultural income-generating activities include improved horticultural production using production of pigs and drip irrigation. Financing of processing and marketing may be applied to improved techniques for (a) drying, smoking, and fermenting fish; (b) producing fermented fish paste (prahoc);48 (c) packaging and marketing dried and shelled shrimp; (d) producing, packaging, and marketing fish sauce; and (e) bulk fish purchasing and marketing. Grants will be available for small-scale industries that would employ relatively large numbers of people such as repair and maintenance of electrical and other appliances, production of basketry and other products using bamboo, rattan, hyacinth, and other non-timber forest products; and production of honey. In support of income-generating activities grants could also be used for skills training (e.g., food processing and other vocational training) or for more general

48 Prahoc is made from small low-value fish such as trey riel. After the fish are washed, the head and scales are removed, the fish are salted and dried for a few days, and then the fish are stored in large ceramic pots to ferment. The protein in prahoc is more digestible than that in fresh fish. Prahoc is thus an excellent food for the elderly and the young. It is the main product made from excess fish. Families work together and businesses that make and sell prahoc hire many temporary workers. 26

education such as adult literacy. Applications would need to show that at least 25% of the beneficiaries of grants are poor. (iii) Support to community fisheries. The community livelihood fund grant funds may also be used to support the implementation of community fisheries management plans, prepared under component 2 of the Tonle Sap Environmental Management Project,49 that have been approved by the Department of Fisheries in the Ministry of Agriculture, Forestry, and Fisheries. This supplementary assistance to community fisheries will enable communities to establish fish sanctuaries and administrative facilities, procure boats and other necessary equipment, and expand the range and frequency of monitoring of illegal fishing practices.

Table 8: Eligibility Criteria for Community Livelihood Fund Activities

Type of Investment Criterion Certifying Agency Any activity financed by - High priority accorded by community in the - Commune planning the community livelihood village development plan and budgeting fund - Inclusion in the commune development plan committee - Not expected to have adverse environmental - Commune council effects - Compliance with applicable environmental, legal, and other requirements of the country and with the environmental assessment requirements of the Asian Development Bank - Does not disadvantage any part of the community - Demonstrable benefits to the poor, women, ethnic minorities, or other vulnerable groups - Entails only legal activities. - Does not affect cultural heritage sites

Social infrastructure - Total cost not to exceed $20,000 per village - Commune planning - Technical, financial, and economic feasibility and budgeting - Road construction requires special clearance committee from the Ministry of Environment

Income generation - Each grant not to exceed $5,000 - Commune planning - Financial feasibility of the business plan. and budgeting - Enterprise would employ a significant number committee of persons - Improved technology successfully demonstrated and financially feasible

Support to community - Cost of each community fishery grant not to - Commune planning fisheries exceed $5,000. and budgeting - Supported by a majority of the members of the committee community fisheries. - Department of Fisheries

Source: Asian Development Bank estimates.

49 ADB. 2002. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the Kingdom of Cambodia for the Tonle Sap Environmental Management Project. Manila.

V. GENDER ACTION PLAN

64. The project area comprises 316 villages organized into 37 communes, with about 290,000 inhabitants in 55,000 households. Assuming a poverty rate of 50%, about 145,000 persons in 27,500 households live below the poverty line. As women constitute more than half of the population, at least 72,500 women in the project area live in poverty. At least 13,500 households are likely to be headed by women.

65. The establishment of the community livelihood fund (CLF) will offer women an opportunity to secure sustainable livelihoods. The CLF will fund community-driven development through strengthened local participation in planning. While the CLF is derived from the present system of commune council accounts—which receive funds directly from the national treasury— the Project will significantly augment the resources available to participating communes. It will deepen and expand the participation of community members, particularly women and other vulnerable groups, in planning and deciding on priority investments and associated resource allocation, distribution, utilization, and accountability.

A. Strategy for Gender-Responsive Community-Driven Development

66. The Project will support the following measures for improved gender responsiveness in commune planning and resource allocation: (i) Compulsory gender-sensitization training for all levels of staff to be involved in the Project, as part of project management training. (ii) The inclusion of sessions on gender analysis and gender-sensitive monitoring indicators in training for project staff in participatory planning and performance management based on the project framework. Gender-related training for communities will be adapted to the absorption capacity of the communities, particularly the commune councils and the commune planning and budgeting committees (CPBCs). (iii) Project presentations for Government agency staff and for beneficiaries at central, provincial, and commune levels, designed to lead to a shared understanding of gender issues and the gender equality concerns of the Project. Ensuring women's full participation and full benefit are integral to realizing the Project's outcome. (iv) The establishment of gender focal points in each provincial CLFT. (v) The appointment of women to at least half of the commune facilitators posts. (vi) At least equal participation of women from poor households and men in all community-training programs. The training sessions should be short and to allow women with low literacy levels to participate. (vii) The nomination of at least two staff members of each provincial department of women's affairs to the CLFT to ensure that women will be represented and gender issues will be discussed at CLFT meetings.

B. Strategy for Maximizing Women's Participation at the Commune Level

67. The Project will make the communities better able to formulate, implement, and manage development plans. To promote the participation of women in development planning so that the plans explicitly reflect the needs and concerns of women, the gender action plan envisages the following: (i) Women will be organized into planning groups in each community. 28

(ii) At the start of the Project, specialized teams, including members from the women's affairs office, consultants/NGOs, and commune facilitators, will join meetings of women in the communities to brief these groups on the project components and expected outcome. The briefing will be done at times that are convenient to the women. (iii) At such meetings, women will be encouraged to speak about their livelihoods and their needs so that the proper use of project resources to benefit them and their communities can be determined. (iv) Each commune is expected to start with one women's planning organization. For this, the women's groups will select leaders between 5 and 10 per organization information dissemination, training, and capacity building. (v) The selected leaders will be trained in gender-responsive planning and development, leadership development, and accountability. They will represent the women in the different organizations (e.g., CPBC, bidding committee, and project management committee, community fisheries). By the end of year 4, at least half of all CPBC members should be trained women representatives, selected directly by their women constituents. (vi) Women representatives will participate in commune planning to ensure that the interests of their constituents are represented, and they will meet weekly with their constituents to brief them on the various activities. (vii) Gender-responsive commune development plans will be reviewed by the women's planning group at a plenary meeting before these are submitted to the CPBC for consolidation. (viii) Local women's groups will meet weekly and keep records of the proceedings to aid monitoring by commune facilitators.

C. Strategy for Gender-Sensitive Project Management

68. The Project will leverage the following gender-sensitive project management tools: (i) Gender focal points will be established in each CLFT. (ii) The gender focal points will meet each month to assess gender-related achievements and gender issues encountered during project implementation. (iii) The progress reports will include gender-related achievements. (iv) The midterm review will determine if the targets set for the participation of women are being met, and draw up plans as appropriate.

D. Design of Gender-Responsive Commune Development Plans

69. The CLFTs, along with the provincial and district gender focal points, will meet at least twice with the members of the CPBC and women's planning groups at commune level, to identify their needs and priorities and assist them in formulating sub-proposals to be included in the CLF. (i) The CPBC prioritization exercise should include separate group discussions for women participants to screen activities proposed by women and the poor. (ii) The CLF allocation should reflect women's practical needs, such as water supplies, sanitation, and health services, which will reduce women's work load and free up time for income-generating activities.

E. Delivery of Investment Packages

70. For the construction or rehabilitation of small-scale infrastructure, such as intra-village roads, wells, and latrines: (i) Ensuring that contractors' agreements contain an appropriate clause promoting the hiring of women and equal pay for men and women for work of equal value. (ii) Reserving half of unskilled jobs for women, especially women-headed households, so that they can support their families without having to go out on boats with their small children to catch fish.

For rural water supply and sanitation, (i) Ensuring the appropriateness of awareness-raising and health education materials, training packages, and manuals to the literacy level of women in the project area, and emphasizing the important roles of women, especially married women, in operation and maintenance, as they rarely leave the communities. (ii) Assisting targeted communities in establishing water and sanitation user groups50 where women make up at least 40% of the board members, have equal opportunity to receive training, and participate in meetings to decide on the location and design of water points and latrines that meet the practical needs of women.

F. Education for the Protection of Natural Resources

71. Gender focal points and consultants will facilitate the testing of awareness-raising material on women's groups. This issue will also be incorporated in literacy classes, in schools, and in the child-to-child approach for out-of-school children.

G. Expected Outcomes

72. The expected outcomes of the gender action plan are: (i) All project entities are trained in gender-responsive planning, implementation, and monitoring. (ii) At least half of all community fisheries, CPBCs, and other committees are fully trained. (iii) All selected commune councils have trained and articulate women members. (iv) In all 316 villages, women take an active part in planning. (v) Women constitute at least 50% of social infrastructure groups/committees. (vi) Training in participation and gender-responsive project monitoring is conducted for all 316 villages.

50 National guidelines on water and sanitation user groups were drafted during the preparation of the proposed Tonle Sap Rural Water Supply and Sanitation Project. At least 40% of the boards of the water and sanitation user groups will be formed to include at least 40% women and at least 50% the board members will receive technical training in operation and maintenance. The boards will also be representative of the ethnic composition of their members. 30

VI. DESIGN AND MONITORING FRAMEWORK

Design Summary Performance Data Sources/Reporting Assumptions and Risks Targets/Indicators Mechanisms Impact Assumption Livelihoods improved Poverty reduced (compared Government's annual • The Government with baseline survey)a income and poverty sustains the surveys decentralization and Biodiversity conserved deconcentration (compared with baseline Project performance process survey)b monitoring surveys and Risk project performance audit • The cumulative impact report of built structures in the Mekong River basin could disrupt the Tonle Sap basin ecosystem Outcome Assumptions Access to assets increased Community-driven Design and monitoring • Commune councils in the five provinces that development supported, framework function increasingly adjoin the Tonle Sap based on the eligibility efficiently, especially criteria specified, by the Project completion report with regard to end of year 4 management and Socioeconomic indicators in protection of natural Core areas safeguarded by the five provinces resourcesc the end of year 4 • The Government maintains its Skills and awareness for commitment to sustainable livelihoods built biosphere reserve by the end of year 4 zoning principles Risks • The removal of the fishing lots precipitates uncontrolled exploitation in the core areas • Corrupt practices divert funds from the community livelihood fund Outputs Assumptions 1. Community-driven A community livelihood Design and monitoring • The proposals put development is fund is established by the framework forward to the supported middle of year 1 commune councils Grant review mission reflect community Livelihood investment reports desires packages are designed and • Removal of the fishing implemented from the end Semiannual progress lots from the core areas of year 1 reports and the new management system 2. Core areas are An information base on Quarterly progress reports provides sufficient safeguarded core areas is established safeguards for the core by the end of year 1 Audit reports areas • Staff of national, A management system for Commune accounts provincial, district, and core areas is instituted by commune institutions the middle of year 2 Number of proposals and villagers are successfully implemented receptive to the training An improved network of fish in each category and messages sanctuaries is instituted by imparted the end of year 2 Number of proposals successfully implemented

Design Summary Performance Data Sources/Reporting Assumptions and Risks Targets/Indicators Mechanisms 3. Skills and awareness for Coordination for Number of proposals put Risks sustainable livelihoods community-driven forward to the commune • Access to the are built development is improved councils each year community livelihood from the middle of year 1 fund is dominated by Village prioritization better-off interest The skills base for exercises groups community-driven • The new management development is enhanced Removal of the fishing lots system is not sustained from the middle of year 1 from the core areas • Target groups cannot spare the time to attend Education for protection of Gender action plan training courses natural resources is delivered from mid-year 2 End-of-assignment reports

Monthly progress notes

Training reports

Training and awareness building materials developed Activities with Milestones (for details of activities and their milestones, see the Inputs indicative activities schedule and the terms of reference for consultants) ($ million) • ADB 15.0 1. Community-driven development is supported • Government 4.7 1.1 Establish a community livelihood fund by the middle of year 1 • Cofinancing 0.6 1.1.1 Establish a community livelihood facilitation team in each province 1.1.2 Prepare the inception report for livelihood support 1.2 Design and implement livelihood investment packages from the end of year 1 1.2.1 Create village activity and special interest groups 1.2.2 Select activities for funding under the community livelihood fund (first cycle) 1.2.3 Select activities for funding under the community livelihood fund (second and later planning cycles) 1.2.4 Prepare detailed implementation arrangements (first and later planning cycles) 1.2.5 Implement investment packages (first and later planning cycles)

2. Core areas are safeguarded 2.1 Establish an information base on core areas by the end of year 1 2.2.1 Review and describe the operation of fishing lots in the core areas 2.2.2 Establish a biological and socioeconomic database 2.2.3 Build the capacity of the Tonle Sap Biosphere Reserve secretariat to manage the database 2.2 Institute a management system for core areas by the middle of year 2 2.2.1 Develop, conclude, and implement a management and protection agreement for the core areas 2.2.2 Plan and propose a new management system for the core areas 2.2.3 Identify mechanisms to ensure compliance 2.2.4 Propose the incorporation of additional core areas identified under component 3 of the Tonle Sap Environmental Management Project 2.3 Institute an improved network of fish sanctuaries by the end of year 2 2.3.1 Assess the operation of existing fish sanctuaries 2.3.2 Determine the optimum number, location, and size of fish sanctuaries 2.3.3 Formulate recommendations for improved management of fish sanctuaries

3. Skills and awareness for sustainable livelihoods are built 3.1 Improve coordination for community-driven development from the middle of 32

Design Summary Performance Data Sources/Reporting Assumptions and Risks Targets/Indicators Mechanisms year 1 3.1.1 Recommend institutional arrangements to strengthen the Council for Agricultural and Rural Development (CARD) 3.1.2 Formulate a work plan and operating guidelines for CARD 3.1.3 Build the capacity of CARD to carry out its functions 3.2 Enhance the skills base for community-driven development from the middle of year 1 3.2.1 Raise the awareness of agencies at the national, provincial, district, and commune levels 3.2.2 Train provincial, commune, and village staff in project implementation 3.2.3 Train commune facilitators in participatory project implementation 3.3 Educate for protection of natural resources from year 2 3.3.1 Assemble educational materials on natural resource management 3.3.2 Hold environmental awareness forums 3.3.3 Prioritize villages on the basis of their potential impact on resource extraction 3.3.4 Assemble, train, and equip a mobile training team 3.3.5 Deliver the environmental awareness program 3.3.6 Conduct monitoring and evaluation

ADB = Asian Development Bank, CARD = Council for Agricultural and Rural Development. a The survey will make use of information from ADB. 2003. Technical Assistance to the Kingdom of Cambodia for the Participatory Poverty Assessment in the Tonle Sap. Manila. b The survey will make use of information from component 3 of ADB. 2002. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the Kingdom of Cambodia for the Tonle Sap Environmental Management Project. Manila. c This is the one area of commune council performance that both citizens and councilors deem least satisfactory. See The Asia Foundation. 2005. Commune Councils in Cambodia: A National Survey on their Functions and Performance, with a Special Focus on Conflict Resolution. Phnom Penh.

VII. PROJECT MANAGEMENT AND ORGANIZATION

Ministry of Ministry of Economy Ministry of Interior Agriculture, Forestry, and Finance Ministry of Women's and Fisheries Affairs

Ministry of Rural Council for Development Agricultural and Rural Ministry of Development Environment

Provincial CNMC Other Ministries Project Consultants Departments (Contract 4) of Agriculture, TSBR Secretariat Forestry, and Fisheries Provincial Local Administration Units

Project Consultants (Contract 3)

Project Consultants (Contracts 1 and 2)

PDWA

Community Livelihood PDRD Facilitation Teams PDE

Commune Councils Commune Planning and Budgeting Committees

Community Activity Groups Special Interest Fisheries Groups

CNMC = Cambodia National Mekong Committee, PDE = provincial department of environment, PDRD = provincial department of rural development, PDWA = provincial department of women's affairs, TSBR = Tonle Sap Biosphere Reserve. Source: Asian Development Bank.

VIII. INDICATIVE ACTIVITIES SCHEDULE 34 Activity Project Year 2005 2006 2007 2008 2009 2010 Anticipated Grant Effectiveness Initial Activities Recruit consultant team for project management Nominate project manager in MOI Open first generation imprest account Open second generation imprest account Output 1: Support Community-Driven Development 1.1 Establish a Community Livelihood Fund 1.1.1 Establish a CLFT in each province - appoint one staff each from PDE, PDRD, PDWA, and PFO - establish offices in the five provinces - procure vehicles, machinery, and office equipment - recruit commune facilitators in all project communes - open commercial bank accounts in all project communes 1.1.2 Prepare the inception report for livelihood support - review and assess related ongoing activities - prepare operational guidelines and procedures - prepare work plans for the CLF - conduct inception workshop and prepare inception report 1.2 Design and Implement Livelihood Investment Packages 1.2.1 Mobilize community groups - conduct information dissemination workshops in each commune - assist in setting up and activation of community groups - assist community groups in designing participation modalities and guidelines 1.2.2 Select activities for funding under the CLF (first cycle) - identify unfunded priority activities in the current 3-year rolling CDPs - screen activities in eliminating any that would be unsuitable for the CLF - assist the CPBCs prepare lists of priority CLF activities Ministry of Interior Ministry 1.2.3 Select activities for funding under the CLF (second and later planning cycles) - assist community groups in generating ideas for income generating activities - assist community fisheries in generating fisheries proposals - assist the CPBCs prepare lists and prioritize new CLF activities 1.2.4 Prepare detailed implementation arrangements (first and later planning cycles) - submit environmentally sensitive activities to MOE for review - finalize list of priority activities in consultation with the CPBCs - assist the CPBCs in preparing detailed designs, costs, business plans - assist the CPBCs in preparing contracts and financing plans 1.2.5 Implement investment packages (first and later planning cycles) - release funds to commune accounts for conforming CLF activities - assist commune councils to award contracts and supervise implementation - assist community groups to review progress and formulate recommendations - monitor performance of contract implementation - assist the CPBCs to audit financial accounts and report progress

Activity Project Year 2005 2006 2007 2008 2009 2010 Output 2: Safeguard the Core Areas 2.1 Establish an Information Base on Core Areas 2.1.1 Review and describe the operation of fishing lots in the core areas 2.1.2 Establish a biological and socioeconomic database 2.1.3 Build the capacity of the TSBR secretariat to manage the database 2.2 Institute a Management System for Core Areas 2.2.1 Develop, conclude, and implement a management and protection agreement for the core areas 2.2.2 Plan and propose a new management system for the core areas 2.2.3 Identify mechanisms to ensure compliance 2.2.4 Propose the incorporation of additional core areas identified under the TSEMP 2.3 Institute an Improved Network of Fish Sanctuaries 2.3.1 Assess the operation of existing fish sanctuaries TSBR secretariat/DOF/MOE TSBR 2.3.2 Determine the optimum number, location, and size of fish sanctuaries 2.3.3 Formulate recommendations for improved management of fish sanctuaries Output 3: Build Skills and Awareness for Sustainable Livelihoods 3.1 Improve Coordination for Community-Driven Development 3.1.1 Recommend institutional arrangements to strengthen CARD 3.1.2 Formulate a work plan and operating guidelines for CARD 3.1.3 Build the capacity of CARD to carry out its functions 3.2 Enhance the Skills Base for Community-Driven Development 3.2.1 Raise the awareness of agencies at the national, provincial, district, and commune levels 3.2.2 Train provincial, commune, and village staff in project implementation 3.2.3 Train commune facilitators in participatory project implementation 3.3 Educate for Protection of Natural Resources 3.3.1 Assemble educational materials on natural resource management MOI/CARD/MOE 3.3.2 Hold environmental awareness forums 3.3.3 Prioritize villages on the basis of their potential impact on resource extraction 3.3.4 Assemble, train, and equip a mobile training team 3.3.5 Deliver the environmental awareness program 3.3.6 Conduct monitoring and evaluation 35

IX. CONTRACT PACKAGES AND INDICATIVE STAFFING SCHEDULE FOR CONSULTANTS 36

Project Year International Domestic Position Consultant Consultant 2006 2007 2008 2009 2010 (Person-months)

Team Leader/Local Governance Specialist 18 Deputy Team Leader/Decentralization Specialist 45 Finance and Administration Specialist (attached to MEF) Phnom 45 Organization and Strategy Advisor (attached to CARD) Penh 9 Education and Training Specialist bd 3

MOI Training Specialist 12 Rural Livelihoods Specialist (Pursat) 30 CONTRACT 1 Rural Livelihoods Specialist (Siem Reap) Province 30 Community Development Specialist (10 persons) based 300 Community Development Specialist (10 persons) 180 Subtotal (Contract 1) 90 582

Senior Environmental Specialist 2

2 Phnom

MOI Environment Specialist Penh 40

CONTRACT bd Subtotal (Contract 2) 2 40

Team Leader/Natural Resources Planner 18 Fisheries Biologist 9 Socioeconomist Phnom 6 Policy and Planning Specialist Penh 18 Fisheries Biologist 18 CONTRACT 3 Socioeconomist 18 TSBR Secretariat TSBR Subtotal (Contract 3) 33 54

Team Leader/Community Education Specialist 6 Teaching Resource Development Specialist 3 Monitoring and Evaluation Specialist Phnom 1 MOE Environmental Education Specialists (4 persons) Penh 60

CONTRACT 4 CONTRACT Graphic Designer 12 Subtotal (Contract 4) 10 72 Total 133 708

CARD = Council for Agricultural and Rural Development, MEF = Ministry of Economy and Finance, MOE = Ministry of Environment, MOI = Ministry of Interior, TSBR = Tonle Sap Biosphere Reserve. Source: Asian Development Bank.

X. TERMS OF REFERENCE FOR CONSULTANTS

A. Team Leader/Local Governance Specialist (one international consultant, 18 person- months)

73. Qualifications and Experience. The specialist will have qualification in rural development or management, with knowledge of decentralized systems and natural resource management, and will have team leadership experience in this area. Work experience in a similar geographical area is required. Work experience in Cambodia would be an advantage. Excellent computer skills and fluency in written and spoken English are required.

74. Duties and Responsibilities. He/she will: • Facilitate formulation of annual work plans and budgets. • Supervise and monitor the implementation of activities set out in the annual work plan. • Prepare annual and semi-annual reports and incorporate in them an analysis of output accomplishment and improvement of activities using the format laid out in the figure below. • Coordinate activities of the domestically and internationally recruited specialists. • Review and monitor specialists inputs. • Liaise with the Ministry of Environment (MOE) for environmental screening of proposed community livelihood fund (CLF) activities. • Liaise and coordinate with the Executing Agency, line agencies, and service providers. • Provide leadership and support to the CLFTs. • Advise on confirmation and, as necessary, elaboration or revision of the terms of reference for consultants engaged under the Project, with close reference to the Project framework and the schedule of activities detailed in the Project documents. • Liaise with the Tonle Sap Biosphere Reserve (TSBR) Secretariat for yearly consultations on conformity of CLF activities with biosphere reserve zonation principles. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative, related projects, and the ADB mission in Phnom Penh.

75. He/she will be based in the Ministry of the Interior in Phnom Penh and report to the Project Director.

Analysis of Output Accomplishment and Improvement of Activities

Component No. Output No. Targets No. No. No. Is the output being accomplished? Yes Partially No Are the targets being achieved? No. No. No. How are the activities being implemented? Strength Weakness No. No. No. No. No. No. How can the activities be improved? Proposed Change Justification No. No. No. No. No. No. Action plan to improve the activities Action Target Date No. No. No. No. No. No.

B. Deputy Team Leader/Decentralization Specialist (one domestic consultant, 45 person-months)

76. Qualifications and Experience. The specialist will have qualification in rural development, with knowledge of decentralized systems and natural resource management, and will have team leadership experience in this area. Excellent computer skills and advanced capability in written and spoken English are required.

77. Duties and Responsibilities. He/she will: • Facilitate formulation of annual work plans and budgets. • Supervise and monitor the implementation of activities set out in the annual work plan. • Prepare annual and semi-annual reports as required. • Coordinate activities of the domestically and internationally recruited specialists. • Review and monitor specialists inputs. • Ensure that requests for deposit into Community Livelihood Funds are carried out in a timely manner. • Liaise with MOE for environmental screening of CLF activities. • Liaise and coordinate with the Executing Agency, line agencies, and service providers. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative, related projects, and the ADB mission in Phnom Penh.

C. Finance and Administration Specialist (one domestic consultant, 45 person-months)

78. Qualifications and Experience. The specialist will have qualification in finance and administration, with knowledge of harmonized financial and administrative procedures for use in the Executing Agency and the Implementing Agencies. Excellent computer skills and advanced capability in written and spoken English are required.

79. Duties and Responsibilities. He/she will:

• Conduct an institutional diagnosis of the Local Finance Department within MEF and recommend the institutional arrangements, including role, functions, terms of reference, structure, budget, and staff complement, that would enable it to better ensure a smooth flow of funds from central to provincial and commune levels. • Advise on establishing appropriate administrative systems for application in the Executing Agency, Implementing Agencies, and CLFTs. • Oversee the establishment and maintenance of a uniform and sound accounting procedures to be used throughout the Project, based on appropriate proprietary software and in conformity with the accounting, auditing, and reporting procedures of ADB and the Government. • Advise on disbursement procedures in accordance with ADB's Loan Disbursement Handbook (January 2001). • Ensure the harmonization of equipment specifications and procurement procedures among all elements of the Project, following ADB's Guidelines for Procurement and ADB's Guidelines on the Use of Consultants. • Oversee the preparation of the consolidated annual financial reports for the Project, for submission to the Government and ADB. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects.

D. Organization and Strategy Advisor (one international consultant, 9 person-months)

80. Qualifications and Experience. The specialist will have qualification in organizational management, with knowledge of strategic planning. Work experience in Cambodia would be an advantage. Excellent computer skills and fluency in written and spoken English are required.

81. Duties and Responsibilities. He/she will: • Conduct an institutional diagnosis of CARD in relation to its mandate. • Recommend the institutional arrangements, including role, functions, terms of reference, structure, budget, and staff complement, that would enable CARD to better coordinate with ministries, facilitate policy formulation, and harmonize external assistance for agricultural and rural development. • Prepare (a) a focused work plan that is based on a realistic objective and deliverable outputs; (b) an allocation of resources geared to the objective and deliverable outputs; (c) a realistic time horizon that reflects the absorptive capacity of CARD and recognizes the complexities and time requirements of capacity building; (d) a well-designed program of process improvement that

should include transfer of skills to staff members of CARD to operate the process; (e) the establishment of achievable measures of progress and milestones to determine the effectiveness of progress; (f) a management actively involved in directing and leading the process; mechanisms to ensure that improvements are maintained upon completion of the assignment. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative, related projects, and the ADB mission in Phnom Penh.

E. Education and Training Specialist (one international consultant, 3 person-months)

82. Qualifications and Experience. The specialist will have qualification in education, with knowledge of participatory approaches, and work experience in communicating with rural communities. Work experience in Cambodia would be an advantage. Excellent computer skills and fluency in written and spoken English are required.

83. Duties and Responsibilities. He/she will: • Conceptualize a range of materials for awareness-raising activities covering the objective and scope of the CLF and the means of accessing it.51 • Design a project information center in each project province.52 • Liaise with staff of other projects under the Tonle Sap Initiative and related projects.

F. Training Specialist (one domestic consultant, 12 person-months)

84. Qualifications and Experience. The specialist will have qualification in education, with knowledge of participatory approaches, and work experience in communicating with rural communities. Excellent computer skills and advanced capability in written and spoken English are required.

85. Duties and Responsibilities. He/she will: • Deliver the materials for awareness-raising activities. The principal mode of delivery will be group discussions, workshops, and dissemination of audio-visual materials. • Set up a project information center in each project province. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects.

51 These will include posters and video presentations in the language or dialect of the target audience. Specific materials aimed at informing illiterate and semi-literate persons will also be prepared. 52 These will normally be included in the office of the CLFTs.

G. Contracts Manager (one domestic consultant, 40 person-months)

86. Qualifications and Experience. The specialist will have qualification in finance and administration, with knowledge of international and local bidding procedures as well as implementing small projects. Excellent computer skills and advanced capability in written and spoken English are required.

87. Duties and Responsibilities. He/she will: • Refer closely to the instructions on implementing small projects with community participation. • In close coordination and consultation with the CLFTs, (a) oversee the award of contracts and the signing of contract agreements and, if necessary, in certain situations, countersign the contracts; (b) allocate funds for each eligible project activity; (c) monitor the progress and quality of works regularly; (d) release funds to commune councils or to contractors as per schedule or stage-wise completion; (e) certify completion of eligible project activities; (f) provide regular progress reports on the implementation status of eligible project activities and fund utilization to MOI and ADB; (g) prepare statements of expenditures, maintain proper accounts, and conduct selective audits; and (h) provide advice to commune councils, communities, nongovernment organizations, contractors, and other groups concerned regarding ADB's policies and guidelines, especially on procurement, indigenous people, involuntary resettlement, and gender. • Ensure that goods and services procured are in line with the procurement procedures of the Government and ADB. • Prepare requests for proposals for consulting services, bidding documents, bid evaluation reports, and contract documents. • Provide overall guidance to smooth contract management activities under the Project. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects.

H. Accountant (one domestic consultant, 45 person-months)

88. Qualifications and Experience. The specialist will have qualification in accountancy, with knowledge of national accounting systems, and work experience in externally funded projects. Work experience on an ADB-assisted project would be an advantage. Excellent computer skills and advanced capability in written and spoken English are required.

89. Duties and Responsibilities. He/she will: • In close consultation with the Finance and Administration Specialist, supervise all aspects of project accounting, financial reporting, and auditing. • Maintain project account ledgers and prepare monthly statement of accounts and statement of expenditures. • Maintain an asset register of all capital items purchases under the Project. • Administer the disbursement of funds to meet approved capital and operational costs of the Project.

• Provide specific assistance and training for project staff involved, with particular attention to management of the project accounts, withdrawal applications, statement of expenditures, and preparation of financial reports in accordance with ADB requirements. • Provide overall guidance to the accountants of the commune councils. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects.

I. Rural Livelihoods Specialists (two international consultants, 60 person-months in total)

90. Qualifications and Experience. The specialists will have qualification in rural development, with knowledge of decentralized systems and natural resource management, and work experience in community organization and participatory demand-based planning. Work experience in rural finance would be an advantage. Work experience in a similar geographical area is required. Work experience in Cambodia would be an advantage. Excellent computer skills and fluency in written and spoken English are required.

91. Duties and Responsibilities. They will: • Assume primary responsibility for the interventions in community development and management. • Manage the CLFTs to make sure their activities are in line with project outputs. • Assist and provide support to staff of line agencies in conducting training needs assessments and formulating appropriate training programs particularly in relation to natural resource management for both agency and community levels. • Provide guidance on non-farm livelihoods and development of technical/vocational training options to build on existing assets. • Assist in establishing self-help groups to pursue livelihood diversification and improvement initiatives. • Support improvements and strengthening of existing community-based natural resources management organizations. • Identification of opportunities to increase food security through improved community organizations and practices. • Assist in developing generic capacity-building and awareness-raising action plans and facilitate in conducting training programs for project staff. • Produce a project action plan and support the CLFTs in making their action plans. • Conduct training needs assessments for agency staff in participatory and demand driven planning, community organizing strategies, training skills and techniques. Review and formulate training program and assist other technical advisors to deliver training. • Assist and facilitate line agency training of communities. Organize and manage training provided by external training providers. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time their inputs to the Project are completed.

• Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative, related projects, and the ADB mission in Phnom Penh.

92. The internationally recruited Rural Livelihoods Specialists will work closely with the other team members and will report to the Project Director through the Team Leader. They will be based in Pursat and Siem Reap.

J. Community Development Specialists (twenty domestic consultants, 480 person- months in total)

93. Qualifications and Experience. The specialist will have qualification in sociology, with knowledge of participatory approaches and work experience in communicating with rural communities. Excellent computer skills and advanced capability in written and spoken English are required.

94. Duties and Responsibilities. They will: • Provide training to and manage the Commune Facilitators. • Work with communities to prepare proposals for submission to the CLF. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time their inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects.

K. Senior Environment Specialist (one international consultant, 2 person-months)

95. Qualifications and Experience. The specialist will have qualification in environmental management, with knowledge of freshwater lakes and work experience in designing and applying environmental assessment and review procedures Work experience in a similar geographical area is required. Work experience in Cambodia would be an advantage. Excellent computer skills and fluency in written and spoken English are required.

96. Duties and Responsibilities. He/she will: • Finalize the Environmental Management Plan. • Ensure integration of the environmental guidelines and criteria for project activities into the guidelines for project activities. • Ensure that the different specific roles of all agencies involved in project implementation are clarified and understood by all parties. • Conduct an early review of the adequacy of the environmental safeguarding activities by the commune councils, and make recommendations accordingly. • Ensure that the environmental awareness and capacity building of the Project adequately covers the requirements for environmental safeguarding. • Finalize detailed monitoring requirements and procedures for all activities. • Remedy any problems that might arise regarding the environmental safeguarding procedures of the Project. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects.

L. Environment Specialist (one domestic consultant, 40 person-months)

97. The specialist will have qualification in environmental management, with knowledge of freshwater lakes and work experience in applying environmental assessment and review procedures. Excellent computer skills and advanced capability in written and spoken English are required.

98. Duties and Responsibilities. He/she will: • Serve as the focal point in the project regarding all environmental safeguarding issues. • Assist the CLFTs and commune councils in all aspects of implementing the environmental safeguarding procedures for project activities. • Guide the CLFTs in implementing the Environmental Assessment and Review Procedures. • Review and identify prevention and project-specific environmental mitigation measures for eligible subprojects. • Assist the commune councils to prepare and incorporate environmental clauses into the contractors' contracts and to conduct compliance monitoring of subprojects. • Coordinate the involvement of the TSBR Secretariat as required, as well as technical inputs by line agencies. • Monitor the performance of commune councils in all aspects of the application of the environmental safeguarding procedures. • Review subproject monitoring suggestions to ensure that they comply with proposed environmental selection criteria. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects.

M. Team Leader/Natural Resources Planner (one international consultant, 18 person- months)

99. Qualifications and Experience. The specialist will have qualification in natural resource management, with knowledge of critical freshwater ecosystems, and work experience in inland fisheries. Familiarity with the particular circumstances of the Tonle Sap is required. Excellent computer skills and fluency in written and spoken English are required.

100. Duties and Responsibilities. He/she will: • Review the operations of the fishing lots in the core areas by (a) compiling and reviewing relevant legislation and burden books for each lot; (b) identifying the rules in practice at the field level through interviews with staff of DOF, the TSBR Secretariat, and MOE, police, military, district, and commune authorities, local communities, nongovernment organizations, and/or international organization staff working in the areas; and (c) summarizing the findings for input into the TSBR Environmental Information Database. • Provide advice to guide DOF, the TSBR Secretariat, and MOE on how to implement systems for the management of the core areas by (a) assessing the

capacity needs and recommending capacity development priorities; (b) developing guidelines for monitoring and evaluation; (c) training staff of MOE to implement the monitoring and evaluation system on an ongoing basis. • Identify, jointly with the TSBR Secretariat and the Inland Fisheries Research and Development Institute, mechanisms to ensure compliance with core area principles. • Provide guidance to MOE on implementation arrangements for incorporation of any additional potential core areas identified under the Tonle Sap Environmental Management Project. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative, related projects, and the ADB mission in Phnom Penh.

N. Fisheries Biologist (one international consultant, 9 person-months)

101. Qualifications and Experience. The specialist will have qualification in fisheries biology, with knowledge of critical freshwater ecosystems, and work experience in inland fisheries. Familiarity with the particular circumstances of the Tonle Sap is required. Excellent computer skills and fluency in written and spoken English are required.

102. Duties and Responsibilities. He/she will: • Develop and present a plan and schedule for permanently ending fishing lots in core areas by (a) reviewing and summarizing lessons from the fisheries reform of 2001; (b) identifying the respective responsibilities of DOF, the TSBR Secretariat, and MOE in implementing the transition; (c) identifying potential conflicts and recommending measures to avert these; (d) identifying and recommending safeguards to protect vulnerable stakeholders, if any, during the transition. • Select the best means of maximizing conservation of biodiversity in the core areas by (a) analyzing the functions of core areas with regards to fisheries productivity in the lake; (b) assessing various levels of spatial or temporal access restriction in terms of livelihood impacts, contributions to fisheries productivity, equity, and institutional sustainability; (c) conducting stakeholder consultations in the core areas to determine the feasibility of each option. • Gather and review literature on freshwater fish sanctuaries, in particular French colonial literature justifying the number, location and size of fish sanctuaries under the jurisdiction of DOF, and international experience with freshwater protected areas. • Undertake a qualitative identification of new areas of the lake considered important vis-à-vis breeding, foraging and shelter of dominant fish species; and of major migration routes to be protected for fish to come back to the Mekong mainstream. Identification will be based on gathering of traditional ecological knowledge and analysis of fishing lots values. • Propose, test and validate an optimized sampling program for assessment of fish sanctuaries productivity and ecological role • Undertake a sampling program in the 8 sanctuaries and in new zones candidate for protection.

• Undertake preliminary data analysis after one cycle of sampling; this aims at identifying the best sanctuaries (higher fish biodiversity, highest abundance and concentration of breeders), the features correlated to these parameters, the most relevant new sites candidate for protection and the crucial migration routes to be protected. • Issue preliminary recommendations about the relevance of current sanctuaries vis-à-vis biodiversity conservation and production sustainability, about the new sited candidate as fish sanctuaries and the major migration routes identified. • Undertake a final analysis based on two annual cycles for a robust identification of the current core areas and sanctuaries that harbor highest fish biodiversity, fish abundance and concentration of breeders; clear identification of the features correlated to these parameters. • Issue final recommendations about the actual role of current sanctuaries, the alternative sanctuaries to be considered, e.g., number, location, and size, the crucial migration routes to be protected, and the optimal management system to be put in place. • Assist the socieconomist to analyze and propose alternative livelihood options for the population of the core areas. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects.

O. Socioeconomist (one international consultant, 6 person-months)

103. Qualifications and Experience. The specialist will have qualification in socioeconomics, with knowledge of critical freshwater ecosystems, and work experience in inland fisheries. Familiarity with the particular circumstances of the Tonle Sap is required. Excellent computer skills and fluency in written and spoken English are required.

104. Duties and Responsibilities. He/she will: • Locate and quantify the population that will benefit from changes in the management regime, by (a) compiling and reviewing census data, available local studies or surveys on population distribution in and around the core areas; (b) estimating the distribution of the fish catch from core areas by main stakeholder group using representative sample survey of 100 fishers per core area during 2 seasons and by monitoring of landing sites; (c) triangulating survey estimates against values predicted by biological estimates of fisheries productivity, level of fishing effort, and fees paid by lot sub-lessees; and (d) summarizing findings spatially by mapping the population concerned. • Assess the contribution of core areas to the livelihoods of local and migrant communities, by (a) conducting participatory rural appraisals in 3-5 communities per core area to estimate the livelihood value of the current fish catch from core areas in terms of income and nutrition for local and migrant communities, disaggregated by wealth rank, gender, and location; (b) triangulating outcomes of the PRA with established survey results and valuation studies conducted in comparable communities around the lake; and (c) conducting a stakeholder analysis by presenting the information compiled in the steps above, and

validating this through local consultations convening the main stakeholder groups in each core area. • Assist the fisheries biologists to select the best means of maximizing the conservation of natural resources in the core areas Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Analyze and propose alternative livelihood options for the population of the core areas. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects.

P. Policy and Planning Specialist (one domestic consultant, 18 person-months)

105. Qualifications and Experience. The specialist will have qualification in environmental management, with knowledge of critical freshwater ecosystems, and work experience in inland fisheries. Familiarity with the particular circumstances of the Tonle Sap is required. Excellent computer skills and advanced capability in written and spoken English are required.

106. Duties and Responsibilities. He/she will: • Assist the team leader/natural resources planner to carry out his duties and responsibilities. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects.

Q. Fisheries Biologist (one domestic consultant, 18 person-months)

107. Qualifications and Experience. The specialist will have qualification in fisheries biology, with knowledge of critical freshwater ecosystems, and work experience in inland fisheries. Familiarity with the particular circumstances of the Tonle Sap is required. Excellent computer skills and advanced capability in written and spoken English are required.

108. Duties and Responsibilities. He/she will: • Assist the fisheries biologist to carry out his/her duties and responsibilities and ensure that activities continue in his/her absence. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects.

R. Socioeconomist (one domestic consultant, 18 person-months)

109. Qualifications and Experience. The specialist will have qualification in socioeconomics, with knowledge of critical freshwater ecosystems, and work experience in inland fisheries. Familiarity with the particular circumstances of the Tonle Sap is required. Excellent computer skills and advanced capability in written and spoken English are required.

110. Duties and Responsibilities. He/she will: • Assist the socioeconomist to carry out his/her duties and responsibilities and ensure that activities continue in his/her absence. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects.

S. Community Education Specialist/Team Leader (one international consultant, 6 person-months)

111. Qualifications and Experience. The specialist will have qualification in education extension, with knowledge of environmental management. and experience in communicating with rural communities. Work experience in Cambodia would be an advantage. Excellent computer skills and fluency in written and spoken English are required.

112. Duties and Responsibilities. He/she will: • Identify and bring forward the achievements from the national environmental education and awareness campaign initiated under the Tonle Sap Environmental Management Project and tailor these to complement the Project. He/she will identify the lessons learnt to date and plan replication of local success stories and ensure that lessons learnt from previous projects are effectively used in all levels of implementation and duplication is avoided. • Train, supervise, and guide the Mobile Training Team. This will include the development of annual work plans and ensuring that environmental education and awareness complement other activities of the Project and the Tonle Sap Initiative. • Deliver training forums for local stakeholders including DOF and PFO officers and commune leaders. • Manage financial and technical reporting and liaise with the Government and ADB on issues regarding the above. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative, related projects, and the ADB mission in Phnom Penh.

T. Teaching Resource Development Specialist (one international consultant, 3 person- months)

113. Qualifications and Experience. The specialist will have qualification in environmental education, with knowledge of extension materials, and work experience in communicating with rural communities. Work experience in Cambodia would be an advantage. Excellent computer skills and fluency in written and spoken English are required.

114. Duties and Responsibilities. He/she will: • Gather examples of past and existing teaching materials on fisheries conservation. • Refine and finalize five new sets of teaching materials. • Pre-test and modify the teaching materials. • Supervise the production of the teaching materials and prepare a plan for their distribution, use, and integration in the curriculum. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects.

U. Monitoring and Evaluation Specialist (one international consultant, 1 person-month)

115. Qualifications and Experience. The specialist will have qualification in environmental education. Familiarity with the particular circumstances of the Tonle Sap and work experience in communicating with rural communities are required. Excellent computer skills and fluency in written and spoken English are required.

116. Duties and Responsibilities. He/she will: • Develop a monitoring and evaluation framework and instruct the Mobile Training Team in self-evaluation techniques. • Detail the mechanism required to ensure that lessons from monitoring and evaluation feed back to improve the conduct of project activities for protection of natural resources. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects.

V. Environmental Education Specialists (four domestic consultants, 60 person-months in total)

117. Qualifications and Experience. The specialists will have qualification in environmental education. Familiarity with the particular circumstances of the Tonle Sap and work experience in communicating with rural communities are required. Excellent computer skills and advanced capability in written and spoken English are required.

118. Duties and Responsibilities. They will: • Constitute the Mobile Training Team and deliver the education program to communities, teachers, and educators. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects.

W. Graphic Designer (one domestic consultant, 12 person-months)

119. Qualifications and Experience. The specialist will have qualification in graphic design, with knowledge of environmental issues and work experience in communicating with rural communities. Excellent computer skills and capability in written and spoken English are required.

120. Duties and Responsibilities. He/she will: • Provide layout and design of resources and curriculum modules. • Liaise with staff of other projects under the Tonle Sap Initiative and related projects.

X. Commune Facilitators (seventy four domestic consultants, 2,442 person-months in total)

121. Qualifications and Experience. They will have studied at secondary level or higher. They will have good report writing and communication skills. They will have facilitation and training experience. They will have knowledge of participatory analysis of livelihood needs and opportunities as well as appropriate experience of mobilizing communities for deeper involvement in sustainable development planning, implementation, and performance evaluation. Familiarity with the particular circumstances of the Tonle Sap and willingness to travel by motorcycle and work at the village level are required.

122. Duties and Responsibilities. They will: • Provide training and facilitation support to the commune councils and Commune Planning and Budgeting Committees on the decentralized planning, implementation procedures, and monitoring and evaluation of commune development activities. • Assist commune council accountants in provide training on decentralized management finance systems, formats, and procedures to commune councils and Commune Planning and Budgeting Committees. • Provide technical and advisory support to commune councils on integration of gender and natural resource and environment management related issues into commune development plans and further assist in monitoring support the implementation of those plans from the gender and natural resource and environment management perspectives. • Provide administration management training to commune councils and Commune Planning and Budgeting Committees. • Assist and provide advisory support to the commune councils in promoting effective development collaboration and partnership with various line agencies, national, international agencies, local associations, and the private sector. • Assist the commune councils in their responsibilities to be transparent and to disseminate information to citizens. • Help communities to identify activities suitable for funding under the CLF. • Help communities to prepare activities suitable for funding under the CLF for submission to the Planning and Budgeting Committee. • Transfer specialist skills to ensure that these exist in the beneficiary organization by the time his/her inputs to the Project are completed. • Prepare brief monthly progress notes and an end-of-assignment report providing activity-output indicators and making recommendations.

SAMPLE QUESTIONNAIRE FOR COMMUNITY PARTICIPATION IN THE CONSTRUCTION OF SCHOOL BUILDINGS

A. General

1. School : ______Village: ______2. Commune: ______District: ______Province: ______3. Category of School: ___ Primary ___ Secondary ___ Senior Secondary 4. Classification: ___ Remote ___ Rural ___ Urban 5. Distance from nearest provincial office: ______kilometers 6. Distance from nearest urban center: ______kilometers 7. Student enrolment: ______8. Name of Director or Head Principal: ______9. School Management Committee:

Name Designation a. ______b. ______c. ______d. ______

B. Needs Analysis

10. How many students are presently enrolled in the existing school? ______

11. What is the expected increase in enrolment? ______

12. How many additional classrooms will be required? ______

13. How many teachers are presently available? ______

14. How many additional teachers will be required in the next 5 years? Please indicate year-wise requirements? ______15. Do agreements exist with the government authorities for appointment and financing of the additional teachers, furniture, and books, etc.? Please attach relevant documents. ______

16. Do children from poor families attend school? If yes, what is the number of such children? ______17. What steps does the committee proposes to take to increase enrolment of children from poor families? ______

C. Community Participation

18. Is the School Committee ready to own responsibility for the Yes / No construction of the new school? ______

19. If yes, provide the name of the person responsible of the construction. ______

20. Does this person have experience in supervising building Yes / No construction? ______

21. If yes, indicate experience. Years ______

22. Are there experienced building contractors operating in the (a) community? Yes / No (b) district? Yes / No (c) province? Yes / No

23. If yes, provide names of some of these contractors. ______

24. Can the community contribute in kind for the construction of Yes / No the school?

25. If yes, please explain the form of contributions. ______

26. Has the community any previous experience with Yes / No international donors?

27. If yes, please provide details. ______

28. Can the community maintain the new school? Yes / No

29. If yes, what is the source of financing? ______

30. Name and communication details of the nearest reputable bank or microcredit institution. ______

31. Distance from school. ______kilometers (km)

32. Indicate availability of construction materials in the near Material Distance (km) vicinity. ______

33. Indicate availability of adequately experienced local labor.

Please indicate the names of three persons of the school committee who will be authorized to sign the agreement as well as checks on behalf of the school, if the school is selected for community participation.

• ______• ______• ______

______Principal Chairman, School Committee

XI. IMPLEMENTING SMALL PROJECTS WITH COMMUNITY PARTICIPATION

DRAFT AGREEMENT FOR COMMUNITY PARTICIPATION IN THE CONSTRUCTION OF SCHOOL BUILDINGS

1. Articles of Agreement

This deed of agreement is made on [date] between the (Community Livelihood Facilitation Team (CLFT)) ______by its authorized representative (hereinafter referred to as the first party) and the School Construction Committee/Village Education Committee/Parent Teacher Association/Block Resource Committee ______, Village ______, Block ______, District ______(hereinafter referred to as the second party) to execute the work of construction of (hereinafter referred to as works) on the following terms and conditions.

2. Cost of Contract

The total cost of the works (hereinafter referred to as the "total cost") is ______. **Out of the total cost, a sum of ______would be borne by the second party and/or other beneficiaries. [** delete if not applicable].

3. Disbursement of Funds

3.1 The second party shall open a bank account in the name of the subproject (to be operated by two to three members of the commune council with the branch of the ______[Name of Bank] as soon as this Agreement has been signed and shall provide its account number to the first party.

3.2 The second party shall notify the first party in writing of the names and addresses of those who will jointly operate the Bank account mentioned in Clause 3.1. Such signatories shall not be changed without the prior consent of the first party.

3.3 Payment to the second party for the construction work will be released by the first party in the following manner:

Advance (Mobilization advance upon start of work) : 25% of the total cost On reaching first stage * : 25% of the total cost On reaching second stage * : 25% of the total cost On reaching third stage * : 15% of the total cost Completion of the whole work (fourth stage) : 10% of the total cost. [* All stages should be agreed in advance and should be annexed to the agreement]

The above payment schedule is indicative and may be suitably adjusted on a case-to- case basis. Since this is an agreement between the CLFT and the commune council, no retention money is envisaged

3.4 Funds will be released at each stage by the first party on submission of a request by the commune council.

4. Maintenance of Accounts

4.1 The second party shall maintain separate accounts for all the expenditures incurred and the payments made therefore by the first party from time to time for execution of the work. Such accounts shall be available for inspection by the first party or any other visiting team deputed for the purpose.

4.2 If at any time the first party determines that the second party is engaging in corrupt or fraudulent practices in any manner under or in relation to the contract, the first party shall be entitled to stop the right of the second party to make withdrawals from the bank account. Only after the second party either remedies the situation or compensates adequately for such corrupt or fraudulent practices, to the satisfaction of the first party, the second party will then be entitled to seek withdrawals from the bank account in agreement with the first party.

5. Completion Time

The works should be completed in _____[months/weeks/days]____ from the date of this Agreement. In exceptional circumstances, the time period stated in this clause may be extended in writing by mutual consent of both parties.

6. Duties and Responsibilities of the First Party

6.1 The First Party shall be responsible for providing regular and frequent supervision and guidance to the second party for carrying out the works as per specifications. This will include written guidelines and regular visit of the authorized personnel of the first party, for checking quality of material and construction to ensure that it is as per the norms.

6.2 The CLFT shall hold weekly meetings [period to be modified as agreed for each project] to monitor the progress of work and carry out random site inspections, as needed.

6.3 The First Party shall have the right to instruct, stop or suspend the construction at any stage if there is any deviation from the specification or violation of any of the terms of this Agreement and demand reimbursement of its payments.

6.4 The First Party shall guide and instruct the contractor, through the commune council, on requirements concerning ADB's policies applicable on Involuntary Resettlement, 1995; Indigenous Peoples, 1998; and Guidelines for Incorporating Social Dimension in Bank Operations.

7. Duties and Responsibilities of the Second Party, Represented by the Commune Council

7.1 The second party shall

(i) take up the works and arrange for its completion within the time period stipulated in Clause 5; (ii) employ suitable skilled persons to carry out the works; (iii) make labor payment as per schedule of labor payment for different items of work; (iv) ensure that all purchases are as per specifications and required quality; (v) regularly supervise and monitor the progress of work; (vi) abide by the technical suggestions or direction of supervisory personnel, including engineers, regarding building construction; (vii) be responsible for bringing any discrepancy to the notice of the representative of the first party; (viii) ensure that the works are carried out in accordance with specifications, drawings and also within the total sanctioned amount without any cost escalation; (ix) keep the community informed of the progress of the works; (x) ensure that there is no improper utilization of the money or materials during construction; (xi) maintain necessary insurance wherever practicable against loss of materials or cash or worker's benefits such as worker's compensation; (xii) pay all duties, taxes and other levies payable by construction agencies as per law under the contract (first party will perform deductions in respect of such taxes as may be imposed under the law); (xiii) obtain all permits and licenses required under local laws; (xiv) ensure that no child labor is employed in any manner under the Contract and provide equal opportunities and pay for equal work for men and women; (xv) ensure that the Contractor in carrying out the Contract complies with all and any applicable laws, rules and regulations; and (xvi) be responsible of the operation and maintenance works, if required.

7.2 In special circumstances, the second party may, after prior approval of the first party, entrust execution of the works on a piecework basis or otherwise to any appropriate agency.

8. Contract Variations

Only the first party can authorize any additions or subtractions to prices or quantities that imply the variation of the total amount of the contract. The first party may authorize variations in quantities, without modifying the unit price, of up to a maximum of 10% of the total contract price without amending the contract. The first party will not reimburse any such additional total costs not so authorized. The final contract value including all variations should not exceed the approved project cost.

9. Dispute Settlement

If any dispute arises between the parties over works relating to any aspects of this Agreement, the parties shall first attempt to settle the dispute through mutual and amicable consultation. If the dispute is not settled through such consultation, the matter may be referred for arbitration to the District Collector or Deputy Commissioner of the District.* (*Modify as appropriate for each project.)

10. Termination

This Agreement may be terminated on the occurrence of either of the following:

(i) by mutual agreement between the parties to this Agreement; (ii) by the first party in any of the following cases :

(a) upon completion of the work to the satisfaction of the first party as evidenced by the commune council; (b) if the second party engages in fraud or corrupt practices that adversely impacts on the Contract execution in the view of the first party; (c) if the second party is in breach of any of the provisions of this Agreement; (d) for any reason as reasonably justified by the first party in the interest of the Contract.

Signed and delivered by ______, Councilor ______on behalf of the Committee. In the presence of:

(a) ______(b) ______

Signed and delivered by ______, authorized representative of the CLFT, in the presence of

(a) (b)

DRAFT CONTRACT FOR CIVIL WORKS

Project Contract Code Number: ______Name of Project: ______Project Number: ______Bid Number: ______

This contract, which will be referred to as the "Contract" is made on ______at ______

between

The Commune Council of ______, which for the purposes of this Contract will be referred to as the "Owner" and will be represented by its Councilor and located at ______,

and

______, which for the purposes of this Contract will be referred to as the "Contractor" and will be represented by ______and located at ______.

1. Description and Location of the Works: (here indicate in reasonable the scope of work) which for the purposes of this Contract will be referred to as the "Works".

2. Responsibilities of the Parties

2.1 The Owner is responsible for financing, supervision, and disbursements of the Contract amount to the Contractor. The Owner will also have final responsibility for suspension or cancellation of the Contract. 2.2 The Owner will guide and instruct the Contractor through the Commune Council on requirements concerning ADB's policies applicable on Involuntary Resettlement (1995); Indigenous Peoples (1998); and its Guidelines for Incorporating Social Dimensions in Bank operations. 2.3 The Contractor shall ascertain and conform in all respects with the provisions of any general or local act of government and such regulations and laws, which may be applicable to the Works. 2.4 The Contractor shall carefully plan and conduct the works in a manner, which will minimize any adverse or negative effect on the environment and natural resources. 2.5 The Contractor is responsible for implementing the project according to the specifications, designs, site plan and costs contained in the Contract and its attachments. The Contractor shall also be responsible for safe and recur storage of materials and equipment, transport of materials and equipment, labor costs and other costs incidental to implementing the Contract. The Contractor retains all responsibilities for all labor and personnel employed by the Contractor, including all responsibilities for emergencies, health, accident liabilities and other social benefits. 2.6 The Contractor will ensure that no child labor is employed in any manner under the Contract.

2.7 The Contractor will ensure, to the extent possible, use of suitable labor, with equal opportunities for men and women and with equal pay for equal work, from the local community, who will be paid reasonable wages, not less than the minimum applicable wages. 2.8 The Contractor will implement the Contract in accordance with applicable ADB guidelines indicated in subclause 2.2 above.

3. Purposes

In accordance with the decision of the meeting held on [date] , the Owner will provide funds for the implementation of the Contract in accordance with the documents attached hereto.

4. Attached Documents

The following are appended and form part of the Contract: 4.1 Bid Form 4.2 Designs, specifications, site plan, project cost 4.3 Mandates, designations and other legal documents 4.4 Project Bill of Quantities 4.5 Schedule of Construction.

5. Financing and Disbursements

5.1 The amount of the Contract is up to the sum of ______.

5.2 The Owner will release payments in accordance with the payment schedule attached, on receipt of a request from the Contractor, and subject to measurements and quality acceptance.

6. Performance Bond and Defects Liability Period

(Normally, such community-based contracts should not have provisions for performance bonds. Nevertheless, it is proposed to include this draft clause here for reference. A suggested sample is provided)

6.1 Within 7 days of the signing of the Contract, the Contractor shall furnish the owner a performance bond in the amount of 10% of the Contract price to guarantee the faithful performance of the Contractor's obligation under the Contract. Such performance bond will be denominated in [currency], in cash, bank drafts, or in the form of a bank guarantee or irrevocable letter of credit (LC) issued by a reputable bank acceptable to the Owner and valid upon the completion of the defects and liability period. The LC should be in the form as provided as a sample in the bidding document or another form acceptable to the Owner. 6.2 The Owner will return the performance bond fee to the Contractor, on satisfactory completion of a defects liability period after the accepted hand over of the Works. In the event of incomplete or defective work, the performance bond will first be used to cover the cost of rectification of satisfactory completion of such Works.

6.3 The Contractor shall be responsible for rectifying all defects for a period of 6 months from the date of completion of the works, which must include one full rainy season.

7. Advance Payment

7.1 The Owner will make an advance payment to the Contractor upon signing of the Contract and subsequent receipt of performance bond in the amount of 10% of the Contract price.

8. Project Supervision

8.1 The Owner will supervise directly the implementation of the project till completion.

8.2 The CLFT of ______will have the right to review and inspect the Works and accounts to verify correct implementation of the Project.

9. Disbursement Procedures

9.1 All disbursements under this Contract will be carried out by means of money transfer order, issued in favor of the Contractor, in the name of ______, Account No. ______, [Name of Bank] ______.

9.2 All disbursements will be made only after carrying out the following procedures: (i) The Contractor requests disbursement from the Owner by means of a monthly (or more often) invoice of implementation. (ii) Requested disbursement is approved by the Owner.

9.3 For all disbursements up to the final disbursement, the Owner will withhold 5 percent of each disbursement as a repayment of the work advance. All outstanding advances shall be adjusted from the final payments.

10. Contract Termination

This Contract may be terminated on the occurrence of either of the following:

(a) by mutual agreement between the parties to this Agreement; or (b) by the Owner in any of the following cases:

(i) upon completion of the Works to the satisfaction of the Owner; (ii) if the Contractor engages in fraud or corrupt practices that adversely have an impact on the Contract execution in the view of the Owner; (iii) if the Owner is in breach of any of the provisions of this Agreement; (iv) for any reason as reasonably justified by the Owner in the interest of the Contract.

11. Amendments to the Contract

Amendment to the provisions of this Contract can be made only with the consent of all parties to the Contract.

12. Prohibitions

12.1 The Contractor is prohibited from subcontracting any Works component, otherwise the Owner shall have the right to cancel this Contract and shall not reimburse the costs of construction work and material to the Contractor.

12.2 The Contractor is prohibited from requesting free counterpart work from beneficiaries for activities being paid by the Contractor. In case of such contraventions, the Owner shall have the right to stop disbursements and suspend or cancel this Contract.

13. Authorized Signatures

Any request or report directed to any of the parties to this Contract must be signed by designated representatives of the parties.

14. Duration of the Contract

The Contractor commits to completion of the implementation of the Works within ______months to be counted from the ground breaking ceremony date. In the case of noncompliance with this provision, the Contractor is subject to a penalty of ______of the total Contract amount per day of delay, the maximum amount of penalty shall not exceed 5 per cent of the Contract Price, except in the case of force majeure, in which case the Owner will evaluate the additional time to be allowed and so inform the Contractor.

15. Addition, Revisions and Variations

15.1 Any additions or subtractions to prices or quantities that imply the variation of the total amount of the Contract can be authorized only by the Owner. The Owner may authorize variations in quantities, without modifying the unit price, of up to a maximum of 10% of the total Contract price without amending the Contract. The Owner will not reimburse any such additional total costs not so authorized.

15.2 The Contractor will not make any claims to the Owner on the basis of incomplete knowledge or errors in the project design or specifications during or after the implementation of the Contract.

16. Settlement of Disputes

Any conflicts or dispute arising out of or in connection with the interpretation or implementation of this Contract, which cannot be settled amicably by the parties, shall be decided through judicial proceedings in accordance with the ______laws.

17. Effectivity of Contract

The present Contract shall take effect when signed by all parties.

Signed on this ______day of ______at ______.

The Commune Council The Contractor of ______Commune

XII. SAMPLE SELECTION CRITERIA FOR NONGOVERNMENT ORGANIZATIONS

123. Nongovernment organizations (NGOs) should (i) be local community organizations or local branches of national NGOs, working for the social development of weaker sections of the community; (ii) be legally registered as per local laws (registration certificate must clearly indicate the mission and objective); (iii) not be objectionable to the relevant government department or ADB; (iv) have guided at least five village-level community-development programs; (v) maintain audited accounts (this could be considered restrictive but in the interest of transparency, this requirement should be retained); (vi) have active management; (vii) hold open meetings as needed; (viii) have experience in addressing gender issues; (ix) submit a clear statement of understanding and responsibilities; (x) have adequate number of field staff; (xi) have prior experience with the community similar communities, or both, or implementation of comparable activities at the community level; and (xii) should not have political or commercial interests.

124. Submission by NGOs should also include the following information: • Number of permanent staff; • Year of registration and years since establishment (this is to exclude instantly formed NGOs); and • Existence of permanent office.

XIII. DETAILED COST TABLES 64

Support Community-Driven Development Detailed Costs

(US$ '000) Quantities Unit B Unit 06/07 07/08 08/09 09/10 Total Cost 06/07 07/08 I. Investment Costs A. Civil Works Office Construction square meter 700 - - - 700 140 - Land Purchase square meter 3,000 - - - 3,000 30 - Subtotal Civil Works 170 - B. Livelihood Grants 1. Battambang Social Infrastructure lump sum - 0.6 0.4 - 1 800 - 480 Income Generating Grants lump sum - - 0.6 0.4 1 400 - - Community Fisheries lump sum - 1 - - 1 315 - 315 Subtotal Battambang -795 2. Kompong Thom Social Infrastructure lump sum - 0.6 0.4 - 1 390 - 234 Income Generating Grants lump sum - - 0.6 0.4 1 220 - - Community Fisheries lump sum - 1 - - 1 150 - 150 Subtotal Kompong Thom -384 3. Siem Reap Social Infrastructure lump sum - 0.6 0.4 - 1 1,530 - 918 Income Generating Grants lump sum - - 0.6 0.4 1 950 - - Community Fisheries lump sum - 1 - - 1 650 - 650 Subtotal Siem Reap -1,568 4. Pursat Social Infrastructure lump sum - 0.6 0.4 - 1 2,750 - 1,650 Income Generating Grants lump sum - - 0.6 0.4 1 1,591 - - Community Fisheries lump sum - 1 - - 1 1,100 - 1,100 Subtotal Pursat -2,750 5. Kompong Chhnang Social Infrastructure lump sum - 0.6 0.4 - 1 300 - 180 Income Generating Grants lump sum - - 0.6 0.4 1 150 - - Community Fisheries lump sum - 1 - - 1 90 - 90 Subtotal Kompong Chhnang -270 Subtotal Livelihood Grants -5,767 C. Vehicles Dualcab Vehicles /a unit 2 - - - 2 20 40 - Four WD Vehicles unit 2 - - - 2 30 60 - Motorcycles unit 94 - - - 94 2 188 - Boats unit 5 - - - 5 3 15 - Subtotal Vehicles 303 - D. Equipment & Furniture Office Equipment in Phnom Penh set 2 - - - 2 6 12 - Office Equipment in Provinces set 7 - - - 7 6 43 - Office Furniture in Phnom Penh set 12 - - - 12 4 - Office Furniture in Provinces set 52 - - - 52 18 - Office Furniture in Information Centers set 5 - - - 5 1 5 - Subtotal Equipment & Furniture 83 - E. Consulting Services Contract 1. International Consultants Remuneration person-month 44 32 14 - 90 17 748 544 Per Diem person-month 44 32 14 - 90 2 86 62 Subtotal International Consultants 834 606 2. Domestic Consultants Remuneration person-month 276 204 84 18 582 2 414 306 Per Diem /b person-month 276 204 84 18 582 1 166 122 Subtotal Domestic Consultants 580 428

Support Community-Driven Development Detailed Costs (continued) 3. Travel International Travel round trip 14 1 9 - 24 3 38 3 Domestic Travel round trip 250 250 250 50 800 38 38 Subtotal Travel 75 40 4. Communications Office in Phnom Penh office month 12 12 12 9 45 3 3 Offices in Provinces office month 12 12 6 - 30 2 2 Report Preparation lump sum 0.3 0.3 0.2 0.2 1 8 2 2 Subtotal Communications 88 5. Office Operating Costs Office Supplies in Provinces office month 60 60 30 - 150 12 12 Office Utilities in Provinces office month 60 60 30 - 150 12 12 Subtotal Office Operating Costs 24 24 6. Vehicle & Boat Operation 4-WD Vehicle O&M vehicle month 24 24 24 18 90 8 8 Boat O&M /c boat month 30 30 30 22.5 112.5 11 11 Subtotal Vehicle & Boat Operation 19 19 Subtotal Consulting Services Contract 1,539 1,126 F. Workshops & Training Workshops & Meetings lump sum 0.3 0.3 0.2 0.2 1 100 30 30 Total Investment Costs 2,125 6,923 II. Recurrent Costs A. Environmental Oversight Senior Environment Specialist person month 0.7 0.7 0.6 - 2 17 12 12 Per Diem person month 0.7 0.7 0.6 - 2 3 2 2 International Travel round trip 1 1 1 - 3 3 3 3 Environment Specialist person month 12 12 12 4 40 2 18 18 Per Diem /d person month 12 12 12 4 40 4 4 Airfares person month 12 12 12 1 37 2 2 Subtotal Environmental Oversight 41 41 B. Project Administration 1. National Project Director & Staff Project Director /e person month 12 12 12 12 48 5 5 Assigned Ministry Staff /f person month 24 24 24 18 90 8 8 Contracts Manager person month 10 12 12 6 40 1 9 10 Project Accountant person month 12 12 12 9 45 1 10 10 Secretary person month 12 12 12 12 48 1 9 9 Clerk person month 12 12 12 12 48 1 6 6 Drivers person month 24 24 24 24 96 1 12 12 Watchman person month 12 12 12 12 48 2 2 Subtotal National Project Director & Staff 61 63 2. Provincial Government Staff Community Livelihood Facilitators /g person month 240 240 240 240 960 106 106 3. Provincial Project Staff Commune Facilitators person-month 888 888 666 - 2,442 38 38 Secretaries person-month 60 60 30 - 150 1 30 30 Clerks person-month 60 60 30 - 150 21 21 Drivers & Boatmen person-month 84 84 42 - 210 1 42 42 Watchmen person-month 60 60 30 - 150 6 6 Subtotal Provincial Project Staff 137 137 4. National Office Costs Office Rental in Phnom Penh office month 12 12 12 9 45 2 18 18 Office Supplies in Phnom Penh office month 12 12 12 9 45 2 2 Office Utilities in Phnom Penh office month 12 12 12 9 45 1 6 6 Office Supplies (CARD & MEF) office month 12 12 12 9 45 2 2 Subtotal National Office Costs 29 29 5. Provincial Office Costs Information Centers office month - - 6 9 15 - - 6. Project Performance Management Project Performance Management lump sum 1 1 1 1 4 15 15 15 CLF Audit lump sum - 1 1 1 3 5 - 5 65 Subtotal Project Performance Management 15 20

Subtotal Project Administration 348 355

Support Community-Driven Development Detailed Costs (continued) 66 C. Operations and Maintenance 1. Social Infrastructure Maintenance Battambang lump sum -10 Kompong Chhnang lump sum -4 Pursat lump sum -33 Siem Reap lump sum -18 Kompong Thom lump sum -5 Building Maintenance office year 33 Dualcab O&M vehicle month 24 24 24 18 90 8 8 Motorcycle O&M vehicle month 1,128 1,128 1,128 846 4,230 56 56 Subtotal Social Infrastructure Maintenance 68 137 Total Recurrent Costs 456 532 Total 2,582 7,455

______\a For the Project Director's office in Phnom Penh. \b Based on an average of 20 days spent in the field each month. \c On the assumption that boats are used for 6 months on average each year. \d on the basis of 10 days per month in the field on average. \e Overall rate includes base salary, supplement, and per diems. \f Overall rate includes base salary, supplement, and per diems. \g Overall rate includes base salary, supplement, and per diems./Per diems are calculated on the basis of 10 days per month on average spent in the field.

Safeguard Core Areas Detailed Costs

(US$ '000) Quantities Unit Base Cost Totals Inclu Unit 06/07 07/08 08/09 09/10 Total Cost 06/07 07/08 08/09 09/10 Total 06/07 07/08 I. Investment Costs A. Study Inputs /a 1. International Consultants Remuneration person-month - 20 13 - 33 14 - 280 182 - 462 - 292 2. Domestic Consultants Remuneration person-month - 36 18 - 54 2 - 76 38 - 113 - 79 3. Travel Domestic Travel round trip - 20 10 - 30 - 3 2 - 5 - 3 4. Logistics Communications office month - 12 12 - 24 - 2 2 - 4 - 2 Office Equipment set - 6 - - 6 3 - 15 - - 15 - 17 Dualcab Vehicles unit - 1 - - 1 20 - 20 - - 20 - 22 Boat unit - 1 - - 1 15 - 15 - - 15 - 16 Field Survey Equipment /b lump sum - 1 - - 1 7 - 7 - - 7 - 8 Field Operations /c lump sum - 0.7 0.3 - 1 20 - 14 6 - 20 - 16 Workshops & Meetings lump sum - 0.7 0.3 - 1 20 - 14 6 - 20 - 17 Subtotal Logistics -8714-101-98 Total Investment Costs - 445 235 - 681 - 473 II. Recurrent Costs A. MEF Office Costs Office Operating Costs (MEF) office month - 12 12 - 24 - 3 3 - 6 - 3 Dualcab O&M vehicle month - 12 12 - 24 - 4 4 - 8 - 5 Boat O&M office month - 12 12 - 24 - 4 4 - 8 - 5 Subtotal MEF Office Costs -1111-23-13 B. National Project Director & Staff Project Director person month - 12 12 - 24 - 5 5 - 11 - 6 Assigned Ministry Staff person month - 12 12 - 24 - 4 4 - 8 - 5 Clerk person month - 12 12 - 24 1 - 6 6 - 12 - 7 Drivers person month - 24 24 - 48 1 - 12 12 - 24 - 14 Total - 484 274 - 759 - 517

______\a This component will be implemented through a contract with The WorldFish Center. \b Includes nets, sampling equipment, and water quality testing instruments. \c Covers the costs of user surveys and field consultations. 67

Build Skills and Awareness for Sustainable Livelihoods Detailed Costs 68

(US$ '000) Quantities Unit Base Cost Unit 06/07 07/08 08/09 09/10 Total Cost 06/07 07/08 08/09 I. Investment Costs A. Strengthening of CARD 1. Policy Coordination Policy Studies unit 1 3 3 3 10 5 5 15 15 Policy Seminars session1 3 3 3 102266 Publications lump sum 0.2 0.2 0.3 0.3 1 20 4 4 6 Subtotal Policy Coordination 11 25 27 2. Consulting Services Remuneration person months 5 2 2 - 9 17 85 34 34 Per Diem person months 5 2 2 - 9 3 15 6 6 International Travel round trip 1 1 1 - 33333 Subtotal Consulting Services 103 43 43 Subtotal Strengthening of CARD 114 68 70 B. Training for Community-Driven Development Training Contract lump sum 140 230 10 Education & Training Specialist person month 3 - - - 3 17 51 - - Per Diem person month 3 - - - 3 3 9 - - International Travel round trip 1 - - - 1 3 3 - - Training Specialist person month 12 - - - 12 2 18 - - Per Diem /a person day 120 - - - 120 4 - - Subtotal Training for Community-Driven Development 225 230 10 C. Educate for Protection of Natural Resources 1. Consulting Services International Consulting Services /b person month 8 2 - - 10 10 80 20 - Domestic Consulting Services person month 17 55 - - 72 2 31 99 - Subtotal Consulting Services 111 119 - 2. Vehicles & Equipment 4-WD Vehicle unit 1 - - - 1 30 30 - - Mobile Education Unit unit 1 - - - 1 30 30 - - Boats unit 2 - - - 2 3 6 - - Vehicle & Boat Operating Cost /c vehicle month 18 36 - - 54 6 13 - Subtotal Vehicles & Equipment 72 13 - 3. Design of Education Materials Design and Production Inputs lump sum 1 1 - - 2 20 20 20 - Community Theatre Production lump sum - 2 - - 2 12 - 24 - Publication of Materials lump sum 1 1 - - 2 10 10 10 - Workshops & Training lump sum 1 1 - - 2 20 20 20 - Subtotal Design of Education Materials 50 74 - Subtotal Educate for Protection of Natural Resources 233 206 - Total Investment Costs 572 503 80 II. Recurrent Costs A. Project Management Annual Audit lump sum 1 1 1 1 45555 B. CARD Office Costs Office Supplies (CARD & MEF) office month 12 12 12 9 45 2 2 2 Total Recurrent Costs 777 Total 579 511 87

______\a On the assumption that the specialist will spend 10 days per month on average in the field. \b For three specialists. \c On the assumption that each boat will be operated for 50% of the contract period on average.

Disbursement Accounts by Financiers ($'000)

Royal Government Asian Development Government of Local of Cambodia Bank Finland Total For. (Excl. Duties & Amount % Amount % Amount % Amount % Exch. Taxes) Taxes A. Civil Works 59 30.0 139 70.0 - - 198 1.0 69 99 30 B. Equipment, Vehicles & Boats Vehicles 0 - 412 100.0 - - 412 2.0 206 58 148 Boats -0 -0.0 16 100.0 - - 16 0.1 5 8 3 Equipment & Furniture 0 - 118 100.0 - - 118 0.6 74 27 17 Subtotal Equipment, Vehicles & Boats 0 - 545 100.0 - - 545 2.7 284 92 169 C. Training & Workshops Training 71 15.0 404 85.0 - - 475 2.3 95 309 71 Workshops & Meetings 51 13.7 321 86.3 - - 372 1.8 84 237 51 Subtotal Training & Workshops 122 14.4 725 85.6 - - 847 4.2 179 546 122 D. Consulting Services International Consultants 0 - - - 2,910 100.0 2,910 14.3 2,624 286 - Domestic Consultants 0 - - - 1,764 100.0 1,764 8.7 176 1,588 - Subtotal Consulting Services 0 - - - 4,674 100.0 4,674 23.0 2,801 1,874 - E. Contracts World Fish Center 8 36.0 14 64.0 - - 22 0.1 11 3 8 Subtotal Contracts 836.01464.0- - 220.1113 8 F. Operations & Maintenance 409 18.9 1,697 78.2 64 2.9 2,169 10.7 278 1,790 102 G. Livelihood Grants 0 - 11,881 100.0 - - 11,881 58.4 3,279 6,819 1,782 Total PROJECT COSTS 599 2.9 15,000 73.8 4,738 23.3 20,337 100.0 6,901 11,223 2,212 69

Components Project Cost Summary 70 ($'000)

%% Total (Riel Million) (US$ '000) Foreign Base Local Foreign Total Local Foreign Total Exchange Costs 1. Support Community-Driven Development 47,974 23,008 70,981 11,828 5,673 17,501 32 90 2. Safeguard Core Areas 1,176 1,956 3,132 290 482 772 62 4 3. Build Skills and Awareness for Sustainable Livelihoods 2,919 2,079 4,998 720 513 1,232 42 6 Total BASELINE COSTS 52,069 27,042 79,111 12,838 6,667 19,505 34 100 Physical Contingencies 572 140 712 141 35 176 20 1 Price Contingencies 2,163 942 3,105 456 199 656 30 3 Total PROJECT COSTS 54,804 28,124 82,929 13,435 6,901 20,337 34 104

Expenditure Accounts Project Cost Summary ($'000)

%% Total (Riel Million) (US$ '000) Foreign Base Local Foreign Total Local Foreign Total Exchange Costs I. Investment Costs B. Civil Works 456 246 702 112 61 173 35 1 C. Vehicles Vehicles 842 842 1,684 208 208 415 50 2 Boats 4319621151530- Subtotal Vehicles 885 861 1,746 218 212 431 49 2 D. Equipment & Furniture 142 264 405 35 65 100 65 1 E. Consulting Services International Consultants 1,131 10,177 11,308 279 2,509 2,788 90 14 Domestic Consultants 5,973 664 6,637 1,473 164 1,636 10 8 Subtotal Consulting Services 7,104 10,841 17,945 1,752 2,673 4,424 60 23 G. Training & Workshops Training 1,255 314 1,569 309 77 387 20 2 Workshops 826 206 1,032 204 51 255 20 1 Subtotal Training & Workshops 2,081 520 2,601 513 128 641 20 3 H. Field Expenses 344 148 492 85 36 121 30 1 I. Livelihood Grants Social Infrastructure 15,485 8,338 23,824 3,818 2,056 5,874 35 30 Income Generating Grants 10,937 2,734 13,671 2,696 674 3,371 20 17 Community Fisheries 7,614 1,903 9,517 1,877 469 2,346 20 12 Subtotal Livelihood Grants 34,036 12,976 47,011 8,392 3,199 11,591 28 59 Total Investment Costs 45,048 25,854 70,902 11,107 6,375 17,481 36 90 II. Recurrent Costs A. Project Administration International Consulting - 199 199 - 49 49 100 - Domestic Consulting 296 33 328 73 8 81 10 - Administration Costs 844 94 938 208 23 231 10 1 Staff Costs /a 4,421 - 4,421 1,090 - 1,090 - 6 Subtotal Project Administration 5,560 325 5,886 1,371 80 1,451 6 7 B. Operations & Maintenance Building O&M 32 14 46 8 3 11 30 - Vehicle & Boats 623 415 1,038 154 102 256 40 1 Subtotal Operations & Maintenance 655 429 1,084 162 106 267 40 1 C. Social Infrastructure O&M 805 434 1,239 199 107 305 35 2 Total Recurrent Costs 7,021 1,188 8,209 1,731 293 2,024 14 10 Total BASELINE COSTS 52,069 27,042 79,111 12,838 6,667 19,505 34 100 Physical Contingencies 572 140 712 141 35 176 20 1 Price Contingencies 2,163 942 3,105 456 199 656 30 3 Total PROJECT COSTS 54,804 28,124 82,929 13,435 6,901 20,337 34 104 71

______\a Includes all payments to Government staff assigned to the project/ and any other local staff recruited by the project. 72

Summary of Project Cost Estimates ($'000)

Foreign Local Total 1. Support Community-Driven Development 5,673 11,828 17,501 2. Safeguard Core Areas 482 290 772 3. Build Skills and Awareness for Sustainable Livelihoods 513 720 1,232 Total BASELINE COSTS 6,667 12,838 19,505 Physical Contingencies 35 141 176 Price Contingencies 199 456 656 Total PROJECT COSTS 6,901 13,435 20,337

Project Cost Summary ($'000)

Asian Cost Development Including % of Bank % Contingencies Total Financing Financing 1. Support Community-Driven Development 18,178 89.4 14,148 77.8 2. Safeguard Core Areas 810 4.0 129 16.0 3. Build Skills and Awareness for Sustainable Livelihoods 1,349 6.6 723 53.6 Total PROJECT COSTS 20,337 100.0 15,000 73.8

Expenditure Accounts by Components—Totals Including Contingencies ($'000)

Build Skills and Awareness Support Safeguard for Community-Driven Core Sustainable Development Areas Livelihoods Total I. Investment Costs B. Civil Works 198 - - 198 C. Vehicles Vehicles 305 38 90 433 Boats 16 - - 16 Subtotal Vehicles 321 38 90 449 D. Equipment & Furniture 93 17 - 110 E. Consulting Services International Consultants 2,010 482 366 2,858 Domestic Consultants 1,401 118 158 1,677 Subtotal Consulting Services 3,410 600 524 4,535 G. Training & Workshops Training - - 451 451 Workshops 121 24 157 302 Subtotal Training & Workshops 121 24 608 752 H. Field Expenses - 40 95 135 I. Livelihood Grants Social Infrastructure 6,021 - - 6,021 Income Generating Grants 3,455 - - 3,455 Community Fisheries 2,405 - - 2,405 Subtotal Livelihood Grants 11,881 - - 11,881 Total Investment Costs 16,023 720 1,318 18,061 II. Recurrent Costs A. Project Administration International Consulting 52 - - 52 Domestic Consulting 87 - - 87 Administration Costs 202 16 32 250 Staff Costs /a 1,167 64 - 1,231 Subtotal Project Administration 1,509 80 32 1,620 B. Operations & Maintenance Building O&M 13 - - 13 Vehicle & Boats 280 10 - 290 Subtotal Operations & Maintenance 293 10 - 303 C. Social Infrastructure O&M 353 - - 353 Total Recurrent Costs 2,155 89 32 2,276 Total PROJECT COSTS 18,178 810 1,349 20,337

Taxes 2,054 25 133 2,212 Foreign Exchange 5,859 498 544 6,901

______\a Includes all payments to Government staff assigned to the project/ and any other local staff recruited by the proj

Project Components by Year—Totals Including Contingencies ($'000)

Totals Including Contingencies 06/07 07/08 08/09 09/10 Total 1. Support Community-Driven Development 2,755 7,831 5,671 1,921 18,178 2. Safeguard Core Areas - 517 293 - 810 3. Build Skills and Awareness for Sustainable Livelihoods 628 581 98 42 1,349 Total PROJECT COSTS 3,384 8,929 6,062 1,962 20,337 75

Project Components by Year—Investment/Recurrent Costs 76 ($'000)

Totals Including Contingencies 06/07 07/08 08/09 09/10 Total A. Support Community-Driven Development Investment Costs 2,253 7,228 5,069 1,473 16,023 Recurrent Costs 503 603 601 448 2,155 Subtotal Support Community-Driven Development 2,755 7,831 5,671 1,921 18,178 B. Safeguard Core Areas Investment Costs - 473 248 - 720 Recurrent Costs -4445- 89 Subtotal Safeguard Core Areas - 517 293 - 810 C. Build Skills and Awareness for Sustainable Livelihoods Investment Costs 620 573 90 34 1,318 Recurrent Costs 888832 Subtotal Build Skills and Awareness for Sustainable Livelihoods 628 581 98 42 1,349 Total PROJECT COSTS 3,384 8,929 6,062 1,962 20,337 Total Investment Costs 2,873 8,274 5,407 1,507 18,061 Total Recurrent Costs 511 655 655 455 2,276

Expenditure Accounts by Years—Base Costs ($'000)

Base Cost Foreign Exchange 06/07 07/08 08/09 09/10 Total % Amount I. Investment Costs B. Civil Works 173 - - - 173 35.0 61 C. Vehicles Vehicles 367 48 - - 415 50.0 208 Boats 15 - - - 15 30.0 5 Subtotal Vehicles 382 48 - - 431 49.3 212 D. Equipment & Furniture 85 15 - - 100 65.0 65 E. Consulting Services International Consultants 1,189 1,020 561 18 2,788 90.0 2,509 Domestic Consultants 682 652 256 46 1,636 10.0 164 Subtotal Consulting Services 1,871 1,672 817 64 4,424 60.4 2,673 G. Training & Workshops Training 143 234 10 - 387 20.0 77 Workshops 62 91 54 48 255 20.0 51 Subtotal Training & Workshops 205 325 64 48 641 20.0 128 H. Field Expenses 31 81 9 - 121 30.0 36 I. Livelihood Grants Social Infrastructure - 3,524 2,350 - 5,874 35.0 2,056 Income Generating Grants - - 2,022 1,348 3,371 20.0 674 Community Fisheries - 2,346 - - 2,346 20.0 469 Subtotal Livelihood Grants - 5,871 4,372 1,348 11,591 27.6 3,199 Total Investment Costs 2,745 8,013 5,263 1,460 17,481 36.5 6,375 II. Recurrent Costs A. Project Administration International Consulting 17 17 15 - 49 100.0 49 Domestic Consulting 24 24 24 8 81 10.0 8 Administration Costs 52 65 65 50 231 10.0 23 Staff Costs /a 310 339 279 162 1,090 - - Subtotal Project Administration 403 445 384 219 1,451 5.5 80 B. Operations & Maintenance Building O&M 3 3 3 3 11 30.0 3 Vehicle & Boats 66 70 70 49 256 40.0 102 Subtotal Operations & Maintenance 69 73 73 52 267 39.6 106 C. Social Infrastructure O&M - 70 117 117 305 35.0 107 Total Recurrent Costs 472 589 574 389 2,024 14.5 293 Total BASELINE COSTS 3,217 8,602 5,837 1,849 19,505 34.2 6,667 Physical Contingencies 62 61 30 21 176 19.7 35 Price Contingencies Inflation Local 67 213 162 87 529 - - Foreign 45 82 55 17 199 100.0 199 Subtotal Inflation 112 294 217 105 728 27.4 199 Devaluation -9 -29 -23 -13 -73 - - Subtotal Price Contingencies 104 266 195 92 656 30.4 199 Total PROJECT COSTS 3,384 8,929 6,062 1,962 20,337 33.9 6,901

Taxes 234 1,014 718 246 2,212 - - Foreign Exchange 1,604 2,982 1,927 389 6,901 - -

______\a Includes all payments to Government staff assigned to the project/ and any other local staff recruited by the project.

Expenditure Accounts by Years—Totals Including Contingencies ($'000)

Totals Including Contingencies 06/07 07/08 08/09 09/10 Total I. Investment Costs B. Civil Works 198 - - - 198 C. Vehicles Vehicles 382 52 - - 433 Boats 16 - - - 16 Subtotal Vehicles 397 52 - - 449 D. Equipment & Furniture 93 17 - - 110 E. Consulting Services International Consultants 1,218 1,046 575 19 2,858 Domestic Consultants 699 668 263 47 1,677 Subtotal Consulting Services 1,917 1,714 837 66 4,535 G. Training & Workshops Training 163 275 12 - 451 Workshops 71 107 65 59 302 Subtotal Training & Workshops 234 382 77 59 752 H. Field Expenses 33 91 11 - 135 I. Livelihood Grants Social Infrastructure - 3,612 2,408 - 6,021 Income Generating Grants - - 2,073 1,382 3,455 Community Fisheries - 2,405 - - 2,405 Subtotal Livelihood Grants - 6,018 4,481 1,382 11,881 Total Investment Costs 2,873 8,274 5,407 1,507 18,061 II. Recurrent Costs A. Project Administration International Consulting 18 18 16 - 52 Domestic Consulting 25 26 27 9 87 Administration Costs 54 69 71 56 250 Staff Costs /a 338 381 321 191 1,231 Subtotal Project Administration 435 494 436 255 1,620 B. Operations & Maintenance Building O&M 3 3 3 3 13 Vehicle & Boats 72 79 81 58 290 Subtotal Operations & Maintenance 75 82 84 62 303 C. Social Infrastructure O&M - 79 135 139 353 Total Recurrent Costs 511 655 655 455 2,276 Total PROJECT COSTS 3,384 8,929 6,062 1,962 20,337

______\a Includes all payments to Government staff assigned to the project/ and any other local staff recruited by the project.

Expenditure Accounts Breakdown ($'000)

Base Cost Physical Contingencies Price Contingencies Total Inc Local Local Local Local For. (Excl. Duties & For. (Excl. Duties & For. (Excl. Duties & For. (Excl. Exch. Taxes) Taxes Total Exch. Taxes) Taxes Total Exch. Taxes) Taxes Total Exch. Taxes) I. Investment Costs B. Civil Works 61 87 26 173 6 9 3 17 3 4 1 8 69 99 C. Vehicles Vehicles 208 58 149 415 - - - - 9 3 7 18 217 61 Boats 5 8 3 15 - - - - 0 0 0 1 5 8 Subtotal Vehicles 212 66 153 431 - - - - 9 3 7 19 221 69 D. Equipment & Furniture 65 20 15 100 3 1 1 5 3 1 1 5 71 22 E. Consulting Services International Consultants 2,509 279 - 2,788 - - - - 63 7 - 70 2,572 286 Domestic Consultants 164 1,473 - 1,636 - - - - 4 37 - 41 168 1,510 Subtotal Consulting Services 2,673 1,752 - 4,424 - - - - 67 44 - 111 2,740 1,795 G. Training & Workshops Training 77 251 58 387 8 25 6 39 5 16 4 25 90 293 Workshops 51 165 38 255 5 17 4 25 4 14 3 22 60 196 Subtotal Training & Workshops 128 417 96 641 13 42 10 64 9 31 7 47 150 489 H. Field Expenses 36 73 12 121 2 4 1 6 2 5 1 8 41 81 I. Livelihood Grants Social Infrastructure 2,056 2,937 881 5,874 - - - - 51 73 22 147 2,107 3,010 Income Generating Grants 674 2,191 506 3,371 - - - - 17 55 13 84 691 2,246 Community Fisheries 469 1,525 352 2,346 - - - - 12 38 9 59 481 1,563 Subtotal Livelihood Grants 3,199 6,653 1,739 11,591 - - - - 80 166 43 290 3,279 6,819 Total Investment Costs 6,375 9,066 2,040 17,481 24 55 14 93 174 253 60 487 6,572 9,375 II. Recurrent Costs A. Project Administration International Consulting 49 - - 49 - - - - 3 - - 3 52 - Domestic Consulting 8 73 - 81 - - - - 1 5 - 6 9 78 Administration Costs 23 208 - 231 - - - - 2 17 - 19 25 225 Staff Costs /a - 1,090 - 1,090 - 54 - 54 - 87 - 87 - 1,231 Subtotal Project Administration 80 1,371 - 1,451 - 54 - 54 6 109 - 115 86 1,534 B. Operations & Maintenance Building O&M 3 6 2 11 0 0 0 1 0 1 0 1 4 7 Vehicle & Boats 102 115 38 256 5 6 2 13 9 10 3 21 116 131 Subtotal Operations & Maintenance 106 121 40 267 5 6 2 13 9 10 3 22 120 138 C. Social Infrastructure O&M 107 153 46 305 5 8 2 15 11 16 5 32 123 176 Total Recurrent Costs 293 1,645 86 2,024 11 68 4 83 26 135 8 169 329 1,848 Total 6,667 10,712 2,126 19,505 35 123 18 176 199 388 68 656 6,901 11,223

______\a Includes all payments to Government staff assigned to the project/ and any other local staff recruited by the project. 79

XIV. DETAILED COMMUNITY LIVELIHOOD FUND FLOW MECHANISM

A. Annual Planning—Year 1 Review of Existing Rolling Plan

Review Existing Commune 3yr rolling plan (CLFT/PBC/CF)

Eligible Projects for CDF funding (PBC)

Technical proposal required No (PBC)

Yes

Proposal Preparation CLFT Screening Contracts (awarded by CC) Yes

Environmental or Social Safeguards req'd (PBC/CLFT) Proposal Submitted to Commune Council No (PBC)

Financial Approval (Commune Council)

Community Public Works Grants Contracts

B. Annual Planning—Year 1 Through Year 4 Community Development Planning

Commune and vilage Community Facilitators Awareness Appointed Program (PIU/CLFT)

Formation of Community Groups CBO's (CF's)

Village Planning Process (CF's)

Community Fishery Village Priorities Plans (ex TSEMP/DOF)

Proposal Preparation Contracts CLFT/PBC screening (PBC-CC)

Yes

Evinronmental or Social safeguards required

Proposal Submitted to No Commune Council

Incorporated into 3 yr plan (PBC -CC)

Commune Annual District Commune Development Planning Meeting Council Approval Fund

Funded from Community Public Works Other Sources Grants Contracting

C. Reporting and Flow of Funds

Asian Development Bank

MEF – Local Finance National Bank of Cambodia Department First Generation Imprest A/C

Second Generation National Ministry of Interior Imprest A/C

Local Administration Unit Provincial Provincial Governor's Office

Community Livelihood Commune Commune Council Fund (Commercial Bank A/C)

Community Fisheries Village Community Groups Activity Groups Special Interest Groups

Suppliers and Contractors

Funds Flow

Reporting

A/C = account, MEF = Ministry of Economy and Finance. Source: ADB staff.

1. Fund Flow Procedures

125. The Ministry of Economy and Finance (MEF) will open a first-generation imprest account at the National Bank of Cambodia into which grant funds from the Asian Development Bank (ADB) will be deposited. MEF will also create a budget line item in the commune council accounts to be used for the Project. Funds will be released on the basis of the annual work plans prepared by the commune planning and budget committees with the help of commune facilitators and the community livelihood facilitation teams. Once the plans are complete, the commune councils will request fund transfers via the provincial local administration unit of the Ministry of Interior (MOI). The community livelihood facilitation teams will screen each request for eligibility and forward them through the provincial local administration unit to MOI. MOI will then request MEF to release funds into a second-generation imprest account opened by MOI in a commercial bank for the purpose of replenishing and liquidating the community livelihood fund and for other activities under the Project. MOI will then direct the funds to the commercial bank accounts of the commune councils. It is proposed that funds be released in two or three tranches in year 1 to ensure that the system is operating well.

126. The commune councils will use the funds according to ADB's guidelines for: (i) direct procurement of goods, (ii) procurement of technical services for village project design, (iii) contracting of public works and social infrastructure, (iv) payments to community groups for income-generating activities, and (v) payments to community fisheries.

127. Procurement and purchases undertaken by the commune councils will be recorded in a project accounting system that includes: (i) procurement details, including specifications of goods to be procured; (ii) record of three quotes obtained; (iii) contract copies and procurement dates, suppliers and schedule of payment; (iv) invoices and receipts; and (v) balanced cash-book that is reconciled each month with the statements from the commercial bank.

128. Community groups will be required to maintain simple balanced cash books showing the funds received and transferred and the signatures of at least three authorized individuals attesting to the accuracy of the records, and to post a copy of the cash book in a public place. The cash books will be the basis of project accounting. A copy of each cash book will be forwarded to the commune council each month. The cash book will record: (i) the amounts of money received by date, with date of receipt; (ii) the amounts of money paid, to whom and when; (iii) the goods and services purchased including the supplier's name and signature and sale documentation (receipts, invoices, etc.) for each item purchased; and (iv) information on losing bids for goods and services.

129. The planning and budget committees of the commune councils will consolidate all expenditure documentation, forward one copy to the project manager from MOI, and retain a complete set for the commune records and audit purposes. The project manager must review and approve the expenditure documentation before the next tranche of funding can be released. Incomplete expenditure documentation will stop the flow of funds to the commune council. The project manager will submit a consolidated statement of expense to ADB for the replenishment of the imprest account.

2. Community Group Procedures—Proposal Preparation

a. Proposal Approval

• Each proposal will be presented as a coherent set of activities to be implemented by the group or a service provider. • The proposals will state beneficiaries, inputs, outputs and timing. • Each proposal will include a schedule of works. • Approved proposals that are to be financed will be returned to the group through the commune council with a contract between the commune council and the community group.

b. Opening Bank Accounts

• Each group will have three officers and be a legal entity. • Each group will open a bank account with three signatories.

c. Accounting

• Based on the work plan and schedule of works a budget will be attached to the proposal. • The Commune Council will agree on a payment schedule that is at least 60% front loaded. • Community level accounting shall be the responsibility of a book keeper of the respective group with accounting requiring the following procedures: o A single bank account for the group under a minimum of three signatures (being the chairperson, Secretary, and the book keeper). o Cash books based on a simple summary of funds received and itemized expenditure reconciled to the balance. The cash book will be maintained at the level of each activity in the proposal and the summary of activities will be reconciled against the group bank account statements. The cash book will be made to provide information on losing bids for goods and services. o Receipts and documentation are required for all items in the cash book. o Procurement records where required will be maintained to justify the contract prices and to confirm the receipt of goods and services received. o All procurement will be undertaken with high degrees of transparency and will be publicly notified at each stage to the group. o Goods handed to group members will be signed for within an asset register. o All advances not liquidated within 3 months will be returned in full to the CLF.

d. Reporting

• The group will report quarterly to the village representative on the planning and budget committee and the community facilitator who will collate reports for the Provincial project offices. This will include information on:

o Date or purchase, supplier. o Goods purchased. o Recipients of goods. o Services purchased. o Miscellaneous expenditure.

e. Monitoring

• Monitoring will be the responsibility of the community group . • The commune facilitator will also monitor and report progress to the commune and provincial level.

f. Auditing

• The group records shall be available for audit by the CLFY and or the Office of Finance and Economy. • An annual independent audit will be undertaken as part of the overall project audit program.

3. Commune Livelihood Fund Procedures

a. Preparation for commune livelihood funds

• To assemble from each village livelihood proposals prepared with assistance from the commune facilitators. • To contract technical support for the preparation of proposals. • Consolidate the proposals into the commune development plan to be submitted to the Provincial Integration Workshop. • Negotiate with the Provincial service providers to gain access to a wider Government programs.

b. Establish a Commune Livelihood Fund

• Open a bank account at a commercial acceptable bank with three signatories including the commune chairperson, the secretary and the accountant. • Place an annual request for funds based on the commune livelihood development plan and recognizing the outcome of the provincial integration workshop.

c. Payments

• All payments are limited to the stated principles of the fund. • Payments will be made for the following purposes only: o Service providers for technical assistance in proposal preparation. o Contractors for the provision of public works or social infrastructure programs. o Community livelihood groups formed by the project that have submitted successful proposals. o Community fisheries groups formed under the TSEMP, that have an approved community fisheries plan.

o To the commune Council for administrative costs of operating the funds up to a maximum ***% of the total volume of funds disbursed above.

d. Accounting

• Advances into the CLF are to be liquidated within a maximum period of 6 months. • Records of advances will be reported to the commune council through the finance and the planning and budget committees. • Payments will be made to community groups from within the commune area only and to those with approved plans that have been previously submitted to the Provincial Integration Workshop. • Payments will be recorded in a cash book that is reconciled with the bank account statements on a monthly basis. • Cash book records will be kept at the level of the community group and then aggregated to provide a commune livelihood fund statement report to the commune every month. • A statement of expenses will be compiled at least 2 monthly and submitted to Provincial MOI project office for replenishment or sooner if required. • Administrative charges will be recovered and accounted for on a quarterly arrears basis. • Unexpended or disbursed amounts at the end of each year will be held in the commune livelihood fund and applied to the next years' funds. This will be recorded as the annual balance of the fund. • All expenditure to service providers and contractors will be recorded by date, contract numbers, amount paid, supplier of goods and services. The records will include an invoice and receipt system as proof of each transaction. • Procurement records will be maintained where ever required to justify the contract prices and to confirm the receipt of goods and services received. • All procurement will be undertaken with high degrees of transparency and will be publicly notified at each stage to the commune council and village representatives.

e. Reporting

• The commune will report quarterly to the Provincial MOI project office through the community facilitator who will collate reports on behalf of the Provincial project office as part of their wider reporting. This will include information on: o CLF account balance, and bank statements. o Copies of the cash book. o Contract let, contracts awarded, outstanding contract amounts. o Community livelihood grants – number, recipient, purpose, and value. o Community fisher grants – number recipient, purpose and value.

87 f. Monitoring of program implementation

• Day to day monitoring will be the responsibility of the commune accountant and the planning and budget committee. • The commune facilitator will monitor and report on the progress and use of funds for: o Proposal preparation. o Community livelihood grants. o Community fisher grants. o progress to the commune and provincial level. • The Provincial Rural Development Committee will monitor the use of funds against the agreed commune development plan and will undertake random assessments of the use of funds o The Provincial Rural Development Committee will monitor all ongoing direct procurement programs by the commune council that use community livelihood funds and will compile status reports on a quarterly basis including a completion report for each contract completed in the preceding quarter. g. Auditing

• The CLF will be audited by Office of Finance and Economy on an annual basis. • An annual independent audit will be undertaken as part of the overall project audit program and reported to the executing agency and ADB. • Where audit records are not provided or are inadequate for audit purposes the CLF will be frozen by the Provincial Project office with the support of the Office of Finance and Economy.

XV. MAJOR GRANT COVENANTS

Reference Covenant Responsibility Status of Compliance in Grant Agreement GA, Art IV, The Recipient shall (i) maintain, or cause to be MOI Sect. 4.02 maintained, separate accounts for the Project; (ii) (a) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; (iii) furnish to ADB, as soon as available but in any event not later than 6 months after the end of each related fiscal year, certified copies of such audited accounts and financial statements and the report of the auditors relating there (including the auditors' opinion on the use of the Grant proceeds and compliance with the financial covenants as well as on the use of the procedures for imprest account/statement of expenditures), all in the English language; and (iv) furnish to ADB such other information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request. GA, Art IV, The Recipient shall enable ADB, upon ADB's MOI Sect. 4.02 request, to discuss the Recipient's financial (b) statements for the Project and its financial affairs related to the Project from time to time with the auditors appointed by the Recipient pursuant to Section 4.02(a) above, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB, provided that any such discussion shall be conducted only in the presence of an authorized officer of the Recipient unless the Recipient otherwise agree. GA, Sched. Each supply contract for equipment or materials MOI,TSBR 3, estimated to cost the equivalent of more than Secretariat, Para. 4 (a) $500,000 shall be awarded on the basis of MOE international competitive bidding as described in Chapter II of the Guidelines for Procurement. GA, Sched. Each supply contract for equipment or materials MOI,TSBR 3, estimated to cost between the equivalent of Secretariat, Para. 5 (a) $500,000 and $100,000 (other than minor items) MOE shall be awarded on the basis of international shopping as described in Chapter III of the Guidelines for Procurement. GA, Sched. Civil works contracts estimated to cost the equivalent MOI,TSBR 3, of $500,000 or less may be awarded on the basis of Secretariat, Para. 7 (a) local competitive bidding among contractors in MOE accordance with the standard procurement procedures of the Recipient and acceptalbe to ADB. Selection and engagement of contractors shall be subject to the approval of ADB. As soon as the bids have been evaluated, the proposal for award of contract shall be submitted to ADB for approval. ADB shall be furnished with a copy of: (i) an account of the public opening of bids; (ii) a summary and evaluation of the bids; (iii) the proposal for award; and (iv) a draft contract or a draft letter of acceptance. ADB

Reference Covenant Responsibility Status of Compliance in Grant Agreement shall be furnished with a copy of the contract as executed. GA, Sched. Each supply contract for equipment and materials MOI,TSBR 3, estimated to cost the equivalent of $100,000 or less Secretariat, Para. 7 (b) may be awarded on the basis of local competitive MOE bidding in accordance with the standard procurement procedures of the Recipient and acceptable to ADB. GA, Sched. Minor items, estimated to cost less than the MOI,TSBR 3, equivalent of $50,000 per contract may be procured Secretariat, Para. 7 (c) directly from the manufacturers of the original MOE equipment or their agents. Prior to such procurement, a list of individual items to be procured, an estimate of their costs, an indication of potential sources of supply and any related documents shall be submitted to ADB for approval. GA, Sched. Contracts for preparing guidelines for proposals for MOI 3, activities eligible for funding under the CLF may be Para. 8 awarded on the basis of direct selection. Promptly after each contract is awarded, ADB shall be furnished with a copy of the contract as executed. GA, Sched. The Recipient shall ensure that all ADB-financed MOI,TSBR 3, goods and services procured (including without Secretariat, Para 9 (a) limitation all computer hardware, software and MOE systems, whether separately procured or incorporated within other goods and services procured) do not violate or infringe any industrial property or intellectual property right or claim of any third party. GA Sched. The Recipient shall ensure that all ADB-financed MOI,TSBR 3, contracts for the procurement of goods and services Secretariat, Para. 9 (b) contain appropriate representations, warranties and, MOE if appropriate, indemnities from the contractor or supplier with respect to matters referred to in subpara (a) of this paragraph. GA Sched. The selection, engagement and services of the MOI 4, consultants shall be subject to Sched. 4 of this Grant Para. 2 Agreement, and the "Guidelines on the Use of Consultants by ADB and its Borrowers" dated January 2005, as amended from time to time. GA Sched. The international consultants shall be selected and MOI 4, engaged as a firm by the EA using the quality-and- Para. 3 cost-based selection method. GA Sched. The domestic consultants shall be selected and MOI 4, engaged by the Project EA using arrangements Para. 4 acceptable to ADB and the Government of Finland. GA Sched. Contract for Component 2 of the Project may be TSBR 4, awarded to the Worldfish Center on the basis of Secretariat Para. 5 (a) direct selection. Promptly after the contract is awarded, ADB shall be furnished with a copy of the contract as executed. GA Sched. Contract for the education for protection of natural MOE 4, resources under Component 3 may be awarded to Para. 5 (b) Live and Learn Environmental Education on the basis of direct selection. Promptly after the contract is awarded, ADB shall be furnished with a copy of the contract as executed. GA Sched. The Recipient shall ensure that all consultants MOI, TSBR 4, financed under the Project contain appropriate Secretariat,

Reference Covenant Responsibility Status of Compliance in Grant Agreement Para. 6 representations, warranties and, if appropriate, MOE indemnities from the consultants to ensure that consulting services provided do not violate or infringe any industrial property or intellectual property right or claim of any third party. GA Sched. A PSC shall be established prior to the effective date MEF 5, and shall consist of representatives from MAFF, Para. 1 MEF, MOE, MOI, MRD, MOWA, CNMC and CARD. CARD, through its Secretary General, shall head the PSC, which shall provide policy and strategy guidance. The PSC shall communicate Project outcomes to the Council of Ministers. The PSC shall meet at least twice a year. CAD shall be assisted, on an intermittent basis, by an international consultant. GA Sched. MOI shall be the Project EA and shall (i) set overall MOI 5, project direction, (ii) resolve implementation Para. 2 problems, (iii) review Project progress and performance against milestones (with 6-monthly reporting), (iv) ensure flow of funds to the communes, (v) ensure the timely and adequte provision of counterpart funding, and (v) undertake procurement for contract supply and civil works under Components 1 and 3. In addition, MOI shall implement Component 1 and 3B of the Project. GA Sched. TSBR Secretariat shall be the IA for Component 2 TSBR 5, and shall carry out day-to-day activities. In carrying Para. 2 (a) out its duty as the IA, TSBR Secretariat shall work in close consultation and coordination with DOF, IFREDI and MOE. GA Sched. CARD shall be the IA for Component 3A. MOE shall CARD, MOE 5, be the IA for Component 3C Para. 2 (b) & (c) GA Sched. A CLFT, headed by the Chief of PLAU, shall be MOI 5, Para. 3 established in each of the Project provinces and shall be responsible for overseeing the implementation of livelihood support at commune and village levels. The CLFTs shall also be responsible for approving the activities, monitoring the procurement carried out by the Commune Councils and report on CLF-related activities to MOI through PLAU. GA Sched. The Commune Council shall receive support from the MOI 5, Para. 4 commune facilitators organized under the CLFT and shall be responsible for (i) identifying activities suitable for funding under the CLF, and (ii) preparing the proposals for submission to the Planning and Budgeting Committee. A commune bank account shall be set up in each of the communes as the vehicle to transfer funds to the commune level. GA Sched. The Recipient shall ensure that all necessary MEF 5, Para. 5 counterpart funds for Project implementation are provided in a timely manner and, to such end, the Recipient shall make timely submissions of annual budgetary appropriation requests and take all other measures necessary or appropriate for prompt disbursement of appropriate funds during each year of Project implementation. GA Sched. The Recipient, through MEF and MOI, shall further MEF, MOI 5, Para. 6 ensure the smooth flow of funds from central level to

Reference Covenant Responsibility Status of Compliance in Grant Agreement the Project provinces and the commune level. MEF shall assist MOI in assuring the smooth transfer of funds from the central to the commune levels. Local Finance Department shall be established by MEF to provide assistance and monitor the performance of sub-national administrations in the management of local finances. GA Sched. The Recipient, through MOI, shall ensure that the MOI 5, Para. 7 CLF is established within 3 months following the effective date. The CLF grant funds shall be available for the benefit of the selected 37 communes located within the Project provinces and shall be managed by the MOI. The planning of the activities shall follow the procedures of the Commune Development Plan, managed by the Commune Council. Activities endorsed by commune Council shall be submitted to CLFT for approval. The CLF grant funds shall e transferred fro the CLF to the respective bank accounts o tht 37 individual commune funds to be established at a commercial bank acceptable to ADB by each of the communes at district level. The CLF shall only be be used to finance small-scale community-driven activities that are planned and agreed at village and commune levels relating to (i) social infrastructure, (ii) income genereation, and (iii) community fisheries that meet the eligibility criteria. GA Sched. The Recipient, through MOI, shall ensure that (i) MOI 5, each of the commune implementing activities funded Para. 8 under the CLF adhere to the Recipient's environmental laws and regulations, ADB's Environment Policy (2002), (ii) best environmental practices, acceptable to ADB, are incorporated into all activities and their implementation, and (iii) each of the communes meets the environmental assessment review procedures described in the IEE prepared for the Project. GA Sched. The Recipient shall ensure that prior to the award of MOI 5, civil works contracts, MOI screens such works for Para. 9 involuntary resettlement effects to make certain that there are no losses of land, income, housing, community facilities, and resources that would require compensation to be paid in accordance with ADB's Poliy on Involuntary Resettlement (1995). In the even land acquisition and resettlement is required for any activities or projects funder under the CLF, such land acquisition and resettlement shall be carried out in accordance with the agreed Land Acquisition and Resettlement Framework prepared for the Project. GA Sched. The Recipient shall ensure that the village or MOI 5, commune level special interest groups established Para. 10 under the Project in each of the Project provinces will include women's groups and ethnic minorities. There shall be no ethnic discrimination and equal opportunities shall be provided to all minorities. GA Sched. The Recipient shall ensure that the Project is MOI 5, implemented in accordance with ADB's Policy on Para. 11 Gender and Development (1998) and the Gender Action Plan prepared for the Project, as agreed

Reference Covenant Responsibility Status of Compliance in Grant Agreement between the Recipient and ADB . GA Sched. The Recipient shall ensure that monitoring is MOI 5, undertaken by MOI and reported to ADB through the Para. 12 6 monthly and annual reporting mechanisms. The basis for project performance monitoring and evaluation shall be the design and monitoring framework and the baseline surveys, as prepared and agreed between the Recipient and ADB. GA Sched. The Recipient shall conduct a comprehensive joint MOI, CARD, 5, midterm review of the Project implementation with ADB Para. 13 ADB. Semi-annual revies shall also be conducted by ADB with the support of CARD. The semiannual reviews shall (i) examine the appropriateness of implementation arrangements and schedules of activities, (ii) assess the procedures for village and commune development plans, (iii) review compliance with agreed procurement procedures, (iv) analyze the outcomes of the capacity building and training programs, and (v) monitor the effectiveness of safeguard procedures.

XVI. KEY PERSONS INVOLVED IN THE PROJECT

Name Position Project Position Address Telephone Email/Facsimile Number Ministry of Interior H.E. Sak Director General, Department General of Project Director Preah Norodom Bvd., +855-11 942 222 [email protected] Setha Administration Tonle Bassac, Chancar Mon, Phnom Penh H.E. Leng Vy Deputy Director General, General Project Manager Preah Norodom Bvd., +855-12 915 473 [email protected] Department of Administration Tonle Bassac, Chancar Director, Department of Local Administration Mon, Phnom Penh Ny Kimsan Chief, Research Office, Department of Local Assigned Ministry Preah Norodom Bvd., +855-23 720 194 [email protected] Administration Staff Tonle Bassac, Chancar +855-11 970 565 +855-23 720 194 Mon, Phnom Penh Yin Malina Deputy Director, Department of Local Assigned Ministry Preah Norodom Bvd., Administration Staff Tonle Bassac, Chancar Mon, Phnom Penh Ministry of Economy and Finance Chan Sothy Chief, ADB Division St 92, Khan Daun Penh, +855-23 216 547 Phnom Penh Hak Ponnarin Deputy Chief, ADB Division, Department of St 92, Khan Daun Penh, +855-23 430 774 [email protected] Investment and Cooperation Phnom Penh +855-16 999 108 +855-23 430 137 Yi Sokthearith Deputy Chief, ADB Division, Department of St 92, Khan Daun Penh, +855-23 428 424 [email protected] Investment and Cooperation Phnom Penh +855-12 585 959 +855-23 428 424 Ministry of Environment Dr. Neou Deputy Director, Department of Natural Project Manager, No 364, Preah Monivong +855-23 221 079 [email protected] Bonheur Conservation and Protection, Ministry of Output 2 Blvd, Khan Chamkarmon, +855-12 976 383 +855-23 221 079 Environment Phnom Penh

Department of Fisheries Eng Cheasan Deputy Director 186 Norodom Blvd. +855-12 904 218 [email protected] Phnom Penh +855 23 221 540

Tonle Sap Biosphere Reserve Secretariat Dr. Neou Deputy Director, Department of Natural Project Manager, No 364, Preah Monivong +855-23 221 079 [email protected] Bonheur Conservation and Protection, Ministry of Output 2 Blvd, Khan Chamkarmon, +855-12 976 383 +855-23 221 079 Environment Phnom Penh

Council for Agricultural and Rural Development H.E. Nouv Secretary General Chairman, PSC +855-11 271 111 +855-23 722 439/426 824 Kanun Sok Silo Director of Administration +855-12 451 111 [email protected] +855-23 722 439 93

94 Name Position Project Position Address Telephone Email/Facsimile Number

Battambang To be Head of CLFT determined

Kompong Chhnang To be Head of CLFT determined

Kompong Thom To be Head of CLFT determined

Pursat To be Head of CLFT determined

Siem Reap To be Head of CLFT determined

Asian Development Bank Olivier Serrat Senior Project Economist, Agriculture, Project Officer 6, ADB Avenue, +632-632 6175 [email protected] Environment, and Natural Resources Mandaluyong City, 0401 +632-636 2231 Division MM, Manila Philippines Mio Nakao Project Specialist, Agriculture, Environment, Alternate Project 6, ADB Avenue, +632-632 6934 [email protected] and Natural Resources Division Officer Mandaluyong City, 0401 +632-636 2231 MM, Manila Philippines Paulin Van Im Senior Project Implementation/Programs In-country Project 93/95 Norodom Blvd., +855-16 811 053 [email protected] Officer, Cambodia Resident Mission Officer Sangkat Boeung Raing, +855-23 215 807 Khan Daun Penh,Phnom Penh, Cambodia Cynthia Project Administration Officer, Agriculture, Project Analyst 6, ADB Avenue, +632-632 6698 [email protected] Garcia Environment, and Natural Resources Mandaluyong City, 0401 +632-636 2231 Division MM, Manila Philippines Tonle Sap Initiative Coordination Unit Dr. David TSI Coordinator +855-12 728180 [email protected] Moffatt Roy Fenn Deputy TSI Coordinator +855-16 894 640 [email protected]

XVII. THE PROJECT STEERING COMMITTEE

130. In December 2005 the Board of Directors of ADB approved a grant from the Asian Development Fund to a total of $15 million. At the same time the Government of Finland pledged $4,738,000 of grant financing to cover the cost of consulting services and independent external auditors. The singular condition of grant effectiveness was the establishment of the PSC.

A. Mandate and Purpose

131. The PSC will be established after inter-ministerial consultation and authorized by the government. Members will be nominated by their respective line agencies. It will remain as a standing committee throughout the life of the Project.

132. The purpose of the PSC is to provide policy and strategy guidance, assure compliance with the design and monitoring framework of the Project, afford a mechanism for resolving implementation problems and conflicts that go beyond single ministerial mandates, support a collaborative approach to its multisectoral coverage, and offer a supportive and collaborative role in the implementation of the Project through effective communications.

B. Functions

1. Policy and Strategy

133. The PSC will address policy issues arising out of the implementation of the Project, will make proposals for the resolution of such issues and refer these, if necessary, to the Council of Ministers. Specific issues that may be addressed would include jurisdiction over resource allocation and management. The PSC would assist in guiding any project reorientation that may derive from the enactment of the Organic Law on Deconcentration.

2. Compliance and Problem Resolution

134. The impact that the Project seeks is improved livelihoods and this will be monitored through Government's annual income and poverty surveys. The impact must also conform to ADB's policies relating to environmental and social safeguards and disclosure of information. The PSC will be advised of the Project impact and, where this may be constrained by the failure of any line agency to comply with the design and monitoring framework of the Project, the PSC will propose remedial action and the relevant member will report this proposed action to the relevant line agency.

135. The PSC will also be advised of instances where compliance with ADB's and the Government's social and environmental safeguards may be compromised by the policy, strategy or actions of any line agency. The PSC will propose the actions required to address this and the relevant PSC member will report this to concerned line agency.

3. Support and Collaboration

136. The PSC will assist in the harmonization of sectoral interests where these are impacted by the Project.

4. Dissemination of Information

137. The PSC will receive copies of relevant documentation from the Project. Members will be responsible for developing a cohesive information dissemination strategy within their line agencies so those departments or divisions whose interests relate to the activities of the Project are kept aware of its progress.

C. Role and Responsibilities of Individual Project Steering Committee Members

138. The role and responsibilities of the individual members of the PSC includes: • Appreciating the significance of the Project for some or all major stakeholders and representing their interests. • Understanding the strategic implications of the outcome being pursued through project outputs. • Taking genuine interest in project outputs and their outcome. • Being an advocate for project outputs. • Having a broad understanding of project implementation arrangements and their relevance to the project rationale. • Being committed to, and actively driving, accomplishment of project outputs in their respective line agencies.

D. Organization and Operation

139. The PSC is primarily a high level body providing policy and strategy guidance and as such must represent the interests of the line agencies and the specific provinces involved in the project. As such it will need to comprise representatives of: • Ministry of Interior • Ministry of Agriculture, Forestry, and Fisheries • Ministry of Rural Development • Ministry of Economy and Finance • Ministry of Environment • Ministry of Women's Affairs • Cambodia National Mekong Committee

140. The PSC will be chaired by the Secretary General of CARD or higher at the request of the Government. Members of the PSC will be at the rank of Director General or higher. In the event of a nominated member of the PSC being unable to attend the meeting he or she may appoint a representative of equal rank.

141. The Chairperson will have the mandate to pursue the functions as stated above. Specifically, the Chairperson is responsible for the preparation of, and invitation to, meetings of the PSC. The Chairperson will chair meetings and ensure that minutes are taken and disseminated to all members and attendees. The Chairperson will ensure an effective communication link between the PSC and the Council of Ministers.

142. Temporarily co-opted members may be appointed to the PSC to assist in addressing specific issues. Additionally, the Chairperson may invite other observers to attend meetings where the meeting may include briefings on general progress or specific project developments which are of interest to a wider audience.

143. The PSC will meet every 6 months or more often as required. Meetings will be scheduled so that they take place within a month of the submission by the Project of a quarterly or annual report. Members of the PSC will receive, not less than 1 week before the meeting, a Khmer language summary of that report.

XVIII. SUMMARY OF RESPONSIBILITIES AND PREPARATORY ACTIVITIES 98

No. Activities / Tasks Completion Remarks Date Ministry of Interior 1 Description of Responsibilities/Main Functions 1.1 Setting overall project direction 1.2 Resolving implementation problems 1.3 Reviewing project progress and performance against milestones 1.4 Ensuring flow of funds to the communes and timely counterpart funding 1.5 Carrying out certain procurement under outputs 1 and 3 1.6 Managing the community livelihoods funds (CLF) 1.7 Providing a member of the Project Steering Committee 1.8 Ensuring project implementation is in accordance with ADB standards and policies on the environment, gender, procurement and adherence to eligibility criteria for CLF activities 1.9 Receiving quarterly financial statements from community livelihood facilitation teams (CLFT) 1.10 Preparing the annual financial report of the Project 2 Actions to be Taken 2.1 Appoint a project director and manager (rank of director or higher) 24/02/06 2.2 Identify assigned ministry staff (5 persons) 24/02/06 2.3 Recruit secretary, clerk, drivers (2), watchman 01/03/06 2.4 Establish national project office 01/03/06 2.5 Prepare technical specifications for procurement of office equipment and furniture (national project office) and 31/03/06 vehicles 2.6 Open 2nd generation imprest bank account at a commercial bank 31/03/06 2.7 Review establishment of commune bank accounts at commercial banks 15/04/06 2.8 Prepare call for expressions of interest for contract package no. 1 01/03/06 Prepare call for expressions of interest for contract package no. 2 31/05/06 2.9 Publish call for expressions of interest for contract package no. 1 06/03/06 Publish call for expressions of interest for contract package no. 2 15/06/06 2.10 Prepare bidding documents for contract package no. 1 31/03/06 Prepare bidding documents for contract package no. 2 30/06/06 2.11 Draw up shortlists and issue bidding documents for contract package no. 1 30/04/06 Draw up shortlists and issue bidding documents for contract package no. 2 15/08/06 2.12 Evaluate proposals and select consultants for contract package no. 1 30/06/06 Evaluate proposals and select consultants for contract package no. 2 30/09/06 2.13 Procure office equipment and furniture and vehicles 30/06/06 Implementing Agency: Output 1 Community-driven Development is Supported 1 Description of Responsibilities/Main Functions 1.1 Establish CLF's 1.2 Oversee implementation 2 Actions to be Taken 2.1 Appoint heads of CLFT's in the five provinces 31/03/06

No. Activities / Tasks Completion Remarks Date 2.2 Identify representatives from provincial departments of rural development, environment, women's affairs, and 31/03/06 fisheries 2.3 Recruit commune facilitators (2 per commune), secretaries, clerks, drivers and boatmen, and watchmen 30/04/06 2.4 Establish CLFT offices in the five provinces 30/04/06 2.5 Prepare technical specifications for office equipment and furniture 31/03/06 2.6 Open commercial bank accounts in all project communes 01/04/06 2.7 Procure office equipment and furniture 03/06/06 2.8 Prepare inception report for livelihood support that will include operational guidelines and procedures and CLF work plans Tonle Sap Biosphere Reserve Secretariat Implementing Agency: Output 2 Core Areas are Safeguarded 1 Description of Responsibilities/Main Functions 1.1 Establishing an information base on core areas 1.2 Instituting a management system for core areas 1.3 Instituting an improved network of fish sanctuaries 2 Actions to be Taken 2.1 Establish the position of core areas coordinator 30/06/06 2.2 Request technical and financial proposals for consultant contract package no. 3 from the WorldFish Center 30/06/06 2.3 Review technical and financial proposals and conclude a contract with the World Fish Center 30/08/06 Council for Agricultural and Rural Development (CARD) Implementing Agency: Output 3.a Improve Coordination for Community-driven Development 1 Description of Responsibilities/Main Functions 1.1 Setting up the Project Steering Committee (PSC), a condition of grant effectiveness 1.2 Chairing, through its Secretary-General, the PSC Chairman 1.3 Coordinating amongst ministries involved in TSSL 2 Actions to be Taken 2.1 Request approval of the Government to establish PSC 28/02/06 2.2 Prepare terms of reference for PSC 28/02/06 2.3 Invite the ministries to be represented on PSC to appoint committee members 10/03/06 2.4 Initiate consultations between TSBRS and Department of Fisheries in preparation for the implementation of 31/03/06 output 2 2.5 Notify ADB of the establishment and composition of PSC 01/04/06 Ministry of Interior Implementing Agency: Output 3.b Enhance the Skills Base for Community-driven Development 1 Description of Responsibilities/Main Functions 1.1 Raise awareness of agencies at the national, provincial, district and commune levels 1.2 Train provincial, commune and village staff for project implementation 1.3 Train commune facilitators in participatory project implementation 2 Actions to be Taken 2.1 Initiate identification of potential training service providers 30/04/06 99

100 No. Activities / Tasks Completion Remarks Date Ministry of Economy and Finance 1 Description of Responsibilities/Main Functions 1.1 Assisting Ministry of Interior (MOI) in the smooth transfer of funds from the central to commune levels 1.2 Receiving annual financial report of the Project 1.3 Providing a member of the Project Steering Committee 1.4 Assisting in ensuring the timely provision of counterpart funds by the Government 2 Actions to be Taken 2.1 Open the first generation imprest account at the National Bank of Cambodia 31/03/06 2.2 Release funds into second generation imprest account opened by MOI at a commercial bank 30/04/06 2.3 Periodically replenish second generation imprest account as requested by MOI 2.4 Create a budget line item, within the commune council accounts, to be used for the Project 30/05/06 2.5 Administer the first generation imprest account Ministry of Environment Implementing Agency: Output 3.c Educate for Protection of Natural Resources 1 Description of Responsibilities/Main Functions 1.1 Oversee the development and delivery of the environmental awareness program of the Project 2 Actions to be Taken 2.1 Request technical and financial proposals for consultant contract package no. 4 from Live and Learn 30/06/06 Environmental Education 2.2 Review technical and financial proposals and conclude a contract with Live and Learn Environmental Education 30/08/06

101

XIX. ANTICORRUPTION

144. The institutional arrangements and reporting mechanism referred to in the PAM are put in place to enable monitoring and accounting of the use of ADB resources. Anyone coming across evidence of corruption associated with the Project must contact ADB's Office of the General Auditor, which will investigate such allegations.