Safeguards Due Diligence Report

Project Number: 44321-013

December 2019

Cambodia: Climate Resilient, Rice Commercialization Sector Development Program (1688 Rice Mill)

Prepared by Ministry of Economy and Finance for the Royal Government of and the Asian Development Bank.

This safeguards due diligence report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

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

MINISTRY OF ECONOMY AND FINANCE

Program Management Office (PMO) Climate Resilient Rice Commercialization Sector Development Program (Rice-SDP)

Due Diligence Report on Social Safeguard of Paddy Drying and Storage (PDS) Facility within 1688 Rice Mill

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MINISTRY OF ECONOMY AND FINANCE

Program Management Office (PMO) Climate Resilient Rice Commercialization Sector Development Program (Rice-SDP)

Due Diligence Report

on

Social Safeguard of Paddy Drying and Storage (PDS) Facility within 1688 Rice Mill

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I. Summary of Public Consultation

1. The Royal Government of Cambodia (RGC) has received loans and grants financing from the Asian Development Bank (ADB) and other sources towards the cost of the Climate-Resilient Rice Commercialization Sector Development Program ("Rice-SDP"). The Rice-SDP supports the implementation of the ‘Policy on the Promotion of Paddy production and Rice Export’ of the RGC. It is designed to help transform the predominantly subsistence rice sector into a commercially oriented one by improving household and national food security and expanding rice export through (i) removing the legal and regulatory constraints inhibiting rice commercialization; (ii) improving productivity of paddy crops and consistency in quality of milled rice; (iii) enhancing rice value chain support services; and (iv) addressing risks of climate change through mitigation and adaptation. The Rice-SDP is operating in three provinces which have high levels of rice production, namely Battambang, Kampong Thom and Prey Veng Provinces.

2. During the design of the Rice-SDP, the inadequate capacities of the post-harvest infrastructure to handle the increasing volumes of wet paddy were identified as a serious constraint. The infrastructure to handle, dry and store, and transport the volumes of wet paddy is not sufficiently developed despite significant private investment in drying, storage and milling facilities in recent years. Establishment of paddy drying, and storage (PDS) facilities are therefore one of the key activities under the Rice-SDP to help accommodate paddy supplies at peak periods after harvest to ensure better quality for processing and retained added value in Cambodia.

3. The Ministry of Economy and Finance (MEF) is the Executing Agency (EA) of the Rice- SDP and has established a Program Management office (PMO). The PMO has established a PDS Selection Committee in cooperation with the Ministry of Agriculture, Forestry and Fisheries/National Implementation Office (MAFF/NIO) and the three Provincial Implementation Offices (PIOs) who will participate in the entire PDS procurement process.

4. The Rice Millers eligible to avail the concessional loans from Rice-SDP to establish the PDS Facilities are selected following a cumbersome process. Upon receipt of the expression of interest (EOIs) from the Rice Millers, the PMO conducted a feasibility study through engaging an independent firm, assessed the Rice Millers’ PDS business proposals, and came up with a Final Ranking of the Rice Millers before employing a DD & CS (detailed design and construction supervision) firm to support the Rice Millers. The final ranking of the Rice Millers was endorsed

2 | Page by the PDS Selection Committee. The 1688 Rice Mill is ranked first in and therefore got selected to avail the concessional loan for establishment of PDS Facility.

5. An initial environmental examination (IEE) for the proposed PDS Facility at 1688 Rice Mill in Kampong Thom has been prepared covering all facets of environmental safeguards including policy principles, subproject scope, context and environment (physical, biological and socio- economic resources), anticipated environmental impacts and mitigation measures, analysis of alternatives, information disclosure, consultation and participation, grievance redress mechanism (GRM), a rapid environmental assessment, an environmental management plan (EMP), an environmental monitoring plan, institutional arrangement and responsibilities, etc. A brief description of the subproject area including socio-economic characteristics is described under para 6 & 7 below.

6. Rural livelihoods in Kampong Thom are predominantly based on agriculture. Farming is the main source of income for the majority of households in the subproject area, while other income is obtained from off-farm employment in construction, other industries, government employment, and trading. A minority of rural households derive income from fishing, though this activity is merely a supplementary activity for part of the year. Rice production is the mainstay of the rural economy in most areas. The total paddy production in Kampong Thom province was about 709,844 tons out of which wet season production was 522,914 tons and that of the dry season was 186,930 tons. Rice crop production has changed from traditional farming to mechanized farming through the use of modern agricultural equipment, rice seed, chemical fertilizer and pesticide, even though the increase in seasonal rice crop production is limited due to absence of irrigation facility (Source: Kampong Thom Development Plan 2015-2019).

7. Many rural families do not have regular cash incomes, either because of access constraints, lack of landholdings and shortage of employment opportunities. Many families are dependent on remittances by family members working away from home, most often in the construction and garment industries and/or as overseas migrant workers. Alleviating poverty became RGC’s highest priority according to its Millennium Development Goals in 2008. Thereafter, sustained efforts by RGC led to the decrease in poverty rate from 47.8% in 2007 to 13.5% in 2014. But the rural poverty incidence where 90% of the poor live fell from 24.6% in 2009 to 20% in 2012. Based on the Kampong Thom Development Plan, the poverty level in Stoung district of Kampong Thom province where the proposed PDS Facility is located has reduced from 37.9% in 2008 to 22.8% in 2018 (Source: Kampong Thom Provincial Department of Planning, 2019). The proposed PDS Facility is expected to significantly contribute to a qualitative improvement in the villagers living standards as they will get opportunity to expand their rice business as the Rice Miller will buy more paddy from them than earlier times, farmers will be able to save on transportation cost as they do not have to transport the paddy very far, and also they can work as labor at the Facility to earn income.

8. Following the endorsement by the PDS Selection Committee, both the PMO and the DD & CS firm worked with the 1688 Rice Mill and completed the initial survey for detailed design, verification of the proposed location, site layout for construction, system and process design, machine layout drawings, detailed design and specifications of equipment, and budget estimates for the Facility. The proposed PDS Facility shall be constructed on an area of 3,600m2 (around

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0.36 hectare) within the existing Rice Mill compound of the 1688 Rice Mill situated along the National Road No. 6, Sla Village, Trea Commune, Stoung District in Kampong Thom province. The existing Rice Mill is located on a single piece of 5 hectares of fully fenced land owned by the Rice Miller (land title issued by Provincial Department of Land Management and Urban Planning- “PDLMUPC”, Kampong Thom, on 12 November 2010 attached as annex II). The proposed Facility will have a drying capacity of 300-800 tons per day (TPD) of wet paddy and the proposed works will mainly involve construction of a dryer of a size of 24 m x 60 m x 21 m (Width x Length x Height), a storage building of a size of 24 m x 50 m x 17 m (Width x Length x Height) and a concrete yard for paddy receiving area of a size of 24 m x 40 m. (See annex III: Detail Design of PDS Facility for 1688 Rice Mill).

9. After completing the detailed design of the Facility, a Rice-SDP technical team comprising of MEF/PMO officials and consultants, MAFF/NIO officials and consultants, and IRE (DD&CS Consultant for establishment of PDS Facility) together with the provincial officials conducted a Public Consultation Meeting on social safeguards impact assessment for the proposed PDS Facility within the existing business compound of the 1688 Rice Mill. The main focus of the assessment was to avoid risks (such as validation of private land title, boundary conflict with neighbors if any, safety during construction activities, and impact of new PDS facilities at the proposed site - see annex I: Minutes of Public Consultation Meeting) and support the Rice Miller to strengthen his/her safeguard systems and develop the capacity to manage environmental and social risks.

10. The Public Consultation Meeting was conducted on 28 May 2019 from 08:00-11:30AM with the participation of Villagers who have land and/or residences around 1688 Rice Mill, Village Chief, Commune Chief and Provincial Officials. A total of 39 Participants including 05 females participated in the meeting (see section V: List of participants). The meeting was chaired by Mr. Yov Seng Kun, Provincial Program Manager, PIO/Kampong Thom Province.

11. The purpose of the Public Consultation Meeting was to disseminate information on the proposed establishment of PDS Facility for the participants to understand, raise issues/challenges that might arise due to the Facility, and contribute to the discussions/solutions for mitigating any possible negative effects due to the Facility. The meeting had the following objectives:

• Inform the participants on the establishment of PDS Facility • Present the detail design of the PDS Facility for 1688 Rice Mill • Discuss on the social safeguards requirements for the PDS Facility and conflict resolution, if any.

II. List of the key issues raised by participants

12. Participants did not raise any key social safeguard issues for the proposed PDS Facility for 1688 Rice Mill as the proposed Facility will be established well within the existing Rice Mill compound of 1688 Rice Mill where the owner has a Rice Mill in operation for the last 9 years. Also, the construction activities will take place away from peoples’ homes. The land acquisition and resettlement (LAR) screening checklist is attached as annex IV. The issues/concerns raised by participants during the consultation meeting are described in brief below. The details can be

4 | Page found in Minutes of Public Consultation Meeting on social safeguard impact assessment for establishment of PDS Facility within 1688 Rice Mill as attached as annex I.

• Mr. Min Phat, Trea Commune Chief informed the meeting that he had certified the land application form of 1688 Rice Mill and before he certified, he had inquired with all the villagers who have land adjacent to 1688 Rice Mill. The ownership of the land has no dispute either with the neighbors or any villagers. Participating in the discussion, Mr. Chheng Chai, Sla Village, Trea Commune, who has land adjacent to 1688 Rice Mill said that the proposed land is a property owned by 1688 Rice Mill and the owner has no conflict with any neighbors since he started his business in Sla Village.

• On the safety of villagers during construction, Mr. In Orn from Sla Village who has rice land adjacent to 1688 Rice Mill said that the PDS Facility will be established inside the compound of 1688 Rice Mill and hence, there should not be any concern on safety of villagers at construction site. However, Mr. Min Phat suggested that safety signs should be installed to alert visitors and the construction area should be barricade and allow only those persons who are working on the Facility construction.

• Participating in the discussion, Mr. Say Kim Lorm, Deputy Governor of Stoung District, advised the owner of 1688 Rice Mill to follow the Cambodian Labor Law on the working hours, put a barricade around the construction site, and follow the safety standard for construction. Mr. Sao Sok Heng, Production Manager of 1688 Rice Mill, responded by saying that based on previous experiences during constructions within 1688 Rice Mill, he will barricade the construction site and will allow only those persons who are related to the construction works. He also said that he will put up safety signs and explain to 1688 staffs and visitors to be careful about it.

13. During the public consultation meeting the issue of conflict resolution arose. Participants informed the meeting that if they have any concerns or conflict with 1688 Rice Mill in future, they would directly talk with Mr. Kim Hean Roth Khemara, Manager of 1688 Rice Mill or to the owner or report to Village/Commune Chief or District Governor for solutions. The PMO informed the participants that there is a well-defined grievance redress and resolution mechanism (GRM) established in the project to resolve grievances and complaints in a timely and satisfactory manner. The GRM was then discussed in detail in the meeting. The PMO informed the participants that it will further disseminate the GRM through an effective public information campaign prior to and during the construction period. The grievance redress process includes four steps of which three are followed before complaints may be elevated to a court of law as a last resort (see Figure below).

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Figure: Grievance Redress Mechanism

Next Higher Court

Provincial court

YES Provincial Governor Office (PIO), PDAFF and/or Provincial Grievance Redress Committee (PGRC) with participation from PMO Program Manager/ Program Director. (if no result elevate to ……) Resolution of Complaint

YES Meeting of the complainant with District Governor, Provincial Implementation Office (PIO) Representative, PDAFF officials, Commune Chief, and Representative of the Contractor (if no result elevate to Province level)

Meeting of the complainant-APs with Village Chief, YES Commune Chief and Site Manager of the Contractor (if

no result elevate to District level)

Complainant-APs and stakeholder inform Village Chief, Commune Chief, Site Manager of the Contractor (before elevate to the District)

(i) 1st step: Complaints and grievances will be provided verbally or in writing to the village chief and/or commune chief. The receiving agent will provide immediate written confirmation of receiving the complaint. If after 15 days the complainant does not hear from the village chief and/or commune chief or if he/she is not satisfied with the decision taken in the first stage, the complaint may be brought to the District Office.

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(ii) 2nd step: The District Office in cooperation with the Provincial Implementation Office (PIO) representative and PDAFF officials has 15 days within which to resolve the complaint to the satisfaction of all concerned. If the complaint cannot be solved at this stage, the District Office will bring the case to the Provincial Governor Office (PIO) and/or Provincial Grievance Redress Committee (PGRC) and has to inform the complainant.

(iii) 3rd step: The PIO/PGRC in cooperation with the PMO Program Manager/Program Director meets with the aggrieved party and tries to resolve the situation within 30 days of receiving the complaint and to the satisfaction of all concerned. The PIO/PGRC will make a written decision and submit copies to the executing and implementing agency (MEF/PMO).

(iv) 4th step: If the aggrieved person does not hear from the PIO/PGRC or is not satisfied, s/he can bring the case to Provincial Court. The Court will make a written decision and submit copies to the executing agency and implementing agency. If any party is still unsatisfied with the Provincial Court judgment, he/she can bring the case to a higher- level court.

III. Agreed actions/Conclusions

14. Both authorities and villagers expressed their happiness and were enthusiastic about the upcoming PDS Facility within the 1688 Rice Mill and they agreed with the points below:

• PDS Facility shall be established on the private land owned by 1688 Rice Mill at Sla village, Trea commune, Stoung district in Kampong Thom province.

• People especially villagers who reside nearby or have land next to 1688 Rice Mill do not have any issue with the new Facility being constructed at the proposed site as the Facility Mr. Run Rang, Sla Village Chief, shall be established well within the private land Trea Commune said that “I support owned by 1688 Rice Mill. the Paddy Drying and Storage Facility within 1688 Rice Mill • At the construction site, restrictions will be put because I can sell my wet paddy in place for villagers not related to the rice to the rice mill”. construction work but wanting to visit the construction site to avoid any untoward incidents and safety signs will be put up at the site during construction work.

• If the villagers have any concerns or conflict with 1688 Rice Mill in future, they would directly talk with Mr. Kim Hean Roth Khemara, Manager of 1688 Rice Mill or to the owner or report to Village/Commune Chief or District Governor and follow the GRM for resolutions of their complaints, if any.

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• The Rice Miller has applied and received the Environmental Protection Agreement from Provincial Department of Environment (PDOE), Kampong Thom, as part of establishing the PDS Facility and improving the business operation performance to fulfill the Government’s requirements. (see annex V). The specific environmental management plan (EMP) addressing adequate mitigation measures to be implemented by the contractor especially during the construction of the PDS Facility is in place and will be attached to the bidding document.

• To ensure that potential environmental/safeguard problems are detected and addressed appropriately, PMO will monitor and supervise the subproject through the DD and CS consultant to ensure contractors are properly implementing all environmental mitigation measures during construction stage as set out in the IEE and other environmental safeguards that stated in the construction contract documents. The PMO will also deploy the cross sectorial implementation consultants based at PMO to provide necessary backstopping in monitoring and supervision of the subproject. To ensure proper and timely implementation of the EMP and adherence to the agreed environmental/social safeguard covenants, the PMO will submit semi-annual progress reports to the ADB based on the monitoring and inspections data and the report will be disclosed on the ADB website.

• Overall, the proposed PDS Facility is whole heartedly welcomed and supported by the villagers and authorities at all levels. They understand that the Facility will significantly contribute to a qualitative improvement in the villagers living standards as they will get opportunity to expand their rice business as the Rice Miller will buy more paddy from them than earlier times, farmers will be able to save on transportation cost as they do not have to transport the paddy very far, and also they can work as labor at the Facility to earn income. The Rice Miller currently employs 30 poor/vulnerable villagers including 9 women drawn from the surrounding areas of the existing Rice Mill and a big majority, around 20 workers, are from the same village where the Rice Mill is located (Sla village, Trea commune, Stoung district). Upon completion of the proposed PDS facilities, the Rice Miller estimates to engage workers at least two times than the current level.

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IV. Photographic Records

Discussion/ Meeting Photos

Group Photo Photo of Site Visit

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V. List of Participants

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Annex. I

Minutes of Public Consultation Meeting (PDS Facility for 1688 Rice Mill)

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MINISTRY OF ECONOMY AND FINANCE

Program Management Office (PMO) Climate Resilient Rice Commercialization Sector Development Program (Rice-SDP)

Minutes of Public Consultation Meeting on Social Safeguard Impact Assessment for Establishment of Paddy Drying and Storage (PDS) Facility within 1688 Rice Mill

Tuesday (08:00-11:30AM), 28 May 2019 1688 Rice Mill, Sla Village, Trea Commune, Stoung District, Kampong Thom Province

Chair: Mr. Yov Seng Kun, Provincial Program Manager, PIO/Kampong Thom

Participants: Villagers (people living around the rice mill), Village Chief, Commune Chief, PIO/KPT Program Manager and Officers, KPT/PDAFF Officer, KPT/PDoE Officer, KPT/PDLMUPC Officer, MAFF/NIO Officers and Consultants, MEF/PMO Officers and Consultants, IRE (DD&CS Consultant for establishment of PDS Facility) and Rice Miller.1 A total of 39 Participants including 05 females participated in the Public Consultation Meeting (see participants list as attached under section V of the DDR).

Agenda

1.0 Objective of the Public Consultation Meeting 2.0 Opening Remark by Provincial Program Manager, PIO/KPT 3.0 Presentation of Detail Design of proposed PDS Facility for 1688 Rice Mill 4.0 Open Discussion on Social Safeguard for the proposed PDS Facility for 1688 Rice Mill 5.0 Closing of the Meeting

Presentations, discussions, decisions, assignments and conclusion

1.0 Objective of the meeting The purpose was to disseminate information on the proposed establishment of Paddy Drying and Storage (PDS) Facility for the participants to understand, raise issues/challenges that

1 DD&CS= detailed design and construction supervision firm, KPT= Kampong Thom Province, MAFF= Ministry of Agriculture, Forestry and Fisheries, MEF= Ministry of Economy and Finance, NIO= National Implementation Office, PDAFF= Provincial Department of Agriculture, Forestry and Fisheries, PDoE= Provincial Department of Environment, PDLMUPC= Provincial Department of Land Management, Urban Planning and Construction, PDS= Paddy Drying and Storage, PIO= Provincial Implementation Office, PMO= Program Management Office. 15 | Page

might arise due to the Facility, and contribute to the discussions/solutions for mitigating any possible negative effects due to the Facility. The meeting had the following objectives: • Inform the participants on the establishment of PDS Facility • Present the detail design of the PDS Facility for 1688 Rice Mill • Discuss on the social safeguards requirements for the PDS Facility and conflict resolution, if any.

2.0 Opening Remark by Provincial Program Manager, PIO/KPT

Mr. Yov Seng Kun, Provincial Program Manager, PIO-KPT, welcomed the MEF/PMO and MAFF/NIO team (officials and consultants) and thanked the villagers living close to the 1688 Rice Mill, Village Chief, Commune Chief, Provincial officials, and representatives of 1688 Rice Mill for participating in this important meeting. He informed the participants about the Rice Policy of the Royal Government of Cambodia and said that more efforts need to be put including physical infrastructure, quality of resources and services support to achieve the goal of the Rice Policy. He then informed the participants about the Rice-SDP project and its objectives including support to be provided to improve post-harvest facilities.

He informed that Rice-SDP is going to provide loans to the private rice millers, who aim to invest in PDS Facilities and this meeting is related to that activity. He further informed the participants that Rice-SDP is going to provide loans to at least two rice millers at different locations in Kampong Thom province to establish PDS Facilities. One of them is 1688 Rice Mill. Thus, this meeting is very important to study the impact of the social and environmental safeguards requirements to mitigate issues that might affect the people and avoid/resolve conflicts if any that might arise due to the Facility. He then requested the Rice-SDP team to give presentation on the design of the Facility and asked participants to provide their comments and raise concerns on the effects of the Facility on their living and businesses if any. He requested all the participants to fully participate in the discussions to make the Facility a successful one.

3.0 Presentation of Detail Design of proposed PDS Facility for 1688 Rice Mill Please see Annex III.

4.0 Open Discussion on Social Safeguard for proposed PDS Facility for 1688 Rice Mill After the presentation on detail design, the Rice-SDP team presented the location/land proposed by 1688 Rice Mill for the construction of the PDS Facility. The team then raised the following points and/or queries for discussion with the participants:

4.1 Land Title: Does the land title submitted by 1688 Rice Mill as the proposed location of the PDS Facility belong to the owner of the rice mill? Does the proposed land have any conflict with neighbors? Is the accreditation issued by Authorities genuine?

In response to the queries, the participants replied as below:

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(1)- Mr. Say Kim Lorm, Deputy Governor of Stoung District said that the proposed land legitimately and rightfully belongs to the owner of 1688 Rice Mill. He had bought the land from the villagers at the market price and did not have any dispute with his neighbors and/or villagers regarding his land boundary. Furthermore, the miller has fence surrounding his rice mill and no one complain about the boundary.

(2)-Mr. Min Phat, Trea Commune Chief said that he had certified the land application form of 1688 Rice Mill and before he certified, he had inquired with all the villagers who have land adjacent to 1688 Rice Mill. There is no dispute with his neighbors and/or villagers regarding this land.

(3)-Mr. Chheng Chai, Sla Village, Trea Commune, who has land adjacent to 1688 Rice Mill said that the proposed land is a property owned by 1688 Rice Mill and the owner has no conflict with any neighbors since he started his business within Sla Village”.

(See Annex II: 1688 Rice Mill Land Title).

4.2 Establishment of PDS Facility: To explore the benefits and/or concerns that the participants might have for establishing a PDS Facility in their locality that might affect their living and/or daily life, especially for the people who live nearby the Facility, the Rice-SDP team raised the following queries:

• Do you have any concern on working hours for construction works at the site especially at night time? • Do you have any concern on safety due to construction and/or do you need any protection or signs to avoid any possible accidents/danger?

In response to the queries, the participants replied as below: 1. Mr. In Orn, Sla Village, who has rice land adjacent to 1688 Rice Mill, said that the PDS Facility will be established inside the compound of 1688 Rice Mill. So, there should not be any concern on safety of villagers at construction site because villagers do not go inside the rice mill.

2. Mr. Min Phat, Trea Commune Chief said that he is not worried about working hour during construction because 1688 Rice Mill has big land and there are no residents nearby. However, he suggested that for the safety at the construction site, it is better to put safety signs to alert visitors to be cautious and barricade the working area and allow only those persons who are working on the Facility construction.

3. Mr. Say Kim Lorm, Deputy Governor of Stoung District, said that he agreed with villagers and commune chief on working hour and safety during construction as the PDS Facility will be established within the compound of 1688 Rice Mill.

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However, he advised the owner of 1688 Rice Mill to follow the Cambodian Labor Law, put a barricade around the construction site, and follow the safety standard for construction.

4. Mr. Sao Sok Heng, Production Manager of 1688 Rice Mill, said that based on previous experiences during constructions within 1688 Rice Mill, he will barricade the working site and will allow only those persons who are related to the construction works. He also said that he will put up safety signs and explain to 1688 staffs and visitors to be careful about it.

Continuing the discussions, the Rice-SDP team proposed the participants to discuss the benefits of establishing a new PDS Facility in the locality and how to resolve conflicts if any in the future. To kick start the discussion, the team proposed following queries:

o Do you prefer to have a PDS Facility on the site of 1688 Rice Mill? o Do you think PDS Facility will benefit farmers or villagers in general? o If you have any conflict with 1688 Rice Mill, whom do you report to for resolution? o Do you have any idea on solving any of the concerns?

Both authorities and people expressed their happiness and were enthusiastic about the upcoming PDS Facility inside the land owned by 1688 Rice Mill. They mentioned that the PDS Facility would benefit most of the villagers as they cultivate rice and the rice miller could buy more paddy from them than earlier times, farmers would be able to save on Mr. Run Rang, Sla Village Chief, Trea transportation cost as they did not have to Commune said that “I support the transport far, and also their sons/daughters Paddy Drying and Storage Facility could work as labor at the Facility to earn within 1688 Rice Mill because I can sell income. The participants added that they are my wet paddy rice to the rice mill”. not concerned about the perceived negative points on establishment of PDS Facility within 1688 Rice Mill as they will get opportunities to expand their rice business. The participants said that if they have any concerns in the future, they would directly talk with Mr. Kim Hean Roth Khemara, manager of 1688 Rice Mill or to the owner or report to Village/Commune Chief or District Governor for solutions.

Participating in the discussion Mr. Kim Hean Roth Khemara, manager of 1688 Rice Mill said that after the establishment of new PDS Facility, 1688 Rice Mill will buy all kinds of paddy rice varieties with competitive prices. But to strengthen the business, 1688 Rice Mill will do contract farming with individual paddy rice producers or community groups for ensuring regular supply of paddy to the rice mill. He further mentioned that the Rice Miller currently employs 30 poor/vulnerable villagers including 9 women drawn from the surrounding areas of the existing Rice Mill and a big majority, around 20 workers, are from the same village where the Rice Mill is located (Sla village, Trea commune, Stoung

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district). Upon completion of the proposed PDS facilities, the Rice Miller estimates to engage workers at least two times than the current level.

5.0 Closing of the Meeting

Mr. Yov Seng Kun, Provincial Program Manager, PIO/KPT, congratulated all the participants for sharing ideas related to Social and Environmental Safeguards for the establishment of PDS Facility within 1688 Rice Mill. He suggested that if participants have any issue with 1688 Rice Mill they should report to the village or commune chief or directly talk with the owner or his management staffs for resolutions. He hoped that the PDS Facility will be established on the land of 1688 Rice Mill very soon and it would serve the local community well and improve rice business within Stoung district. At the end, he thanked all the participants, local authorities, Rice-SDP team, provincial team and representatives of 1688 Rice Mill for participating in this important meeting and for a fruitful outcome.

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Annex. II Land Title of 1688 Rice Mill

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Annex. III

Detail Design of PDS Facility for 1688 Rice Mill (Presented During Public Consultation Meeting)

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Annex. IV

Land Acquisition and Resettlement (Social-Screening Checklist for 1688 Rice Mill)

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Annex. V

Environmental Protection Agreement

(Provincial Department of Environment, Kampong Thom & 1688 Rice Mill)

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Un-official Translation

Kingdom of Cambodia Nation Religion King

Environmental Protection Agreement on Rice Mill Business Operation and New Establishment of Paddy Drying and Storage (PDS) Facilities

I am Ros Sopharith, age 31 years old, Cambodia Nationality, ID Card: 010915583, Permanent Address: 811, Chhruoy Ampil Village, Sangkat Kbal koh, , City, Owner of 1688 Rice Mill located in Sla Village, Trea Commune, Stoung District, Kampong Thom Province. Phone contact: 012 699 091

To: Director of Kampong Thom Provincial Department of Environment

To contribute to ensuring public health and environmental sustainability in the country’s development, I, the owner of the 1688 Rice mill located in Sla Village, Trea Commune, Stoung District, Kampong Thom Province; do the following environmental commitments:

Provision 1. Construction Phase

During the construction phase for project operation and new project operation, our rice mill will follow the following principles: • Compliance with all applicable laws or regulations relating to the construction of a rice mill. • Comply with Detail Design recognized and approved by professional authorities. • Obey instructions from professionals/ authorities such as fencing surrounding the construction site, follow the investigation regarding the feasibility of location for a business or factory in some specific location (positive and negative results as done by commune/sangkat), respect for working hours, use of side road, noise management thereby not affecting the neighbors and passerby. • Do not harm public benefit and others' interests • Properly handle solid waste storage • Set up tube for husk discharge in low altitude to reduce excessive dust and disturbances affecting neighbors and passerby. • Do not burn any kind of garbage or solid waste that is harmful to health and air quality. For liquid waste, oil must be properly stored. • Provide workers with safety equipment such as construction site helmet, masks and boots. • Control the flow of mud, waste water, dust to avoid affecting neighbors or passersby. • Prepare First Aid kits in the event of an accident (so far no bad thing has happened). • Place fire alarms, fire extinguishers system and fire extinguishers tool in case of any occurrence and safe access (in and out doors). • Set up clean water systems and adequate water use.

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Provision2. Business Operation Phase:

• Ensure regular cleanliness • Properly handle all kinds of liquid solids, avoiding harmful odors to neighbors or passersby and polluting the environment. In case of excess liquid or obstruction, seek permission from the authorities- one window one service or the Department of Environment, before transporting or discharging to outside the premises. • Residues (oil residues) need to be properly stored, avoid spillage or overflow into public drainage or public water systems, such as canal, stream, lake, and river affecting water quality thereby public health, biodiversity and environment. • Some of the husks are burned in the kiln for paddy drying and others are burned at different places by individual people who collected husk from the rice mill. The remaining husks, should be managed and processed properly. • Ensure regular bin disposal within the Rice Mill. • For any residuals that may release odor/smell to neighborhoods, should not be stored for more than 24 hours and should be transported or drop off at the waste management area or at designated locations by authorities. • Do not burn any kind of rubbish or solids that affect health and air quality. • Set up tube for husk discharge in low altitude to reduce excessive dust affecting public health. • Ensure installation of proper fire extinguishers in required quantity. • Ensure putting up signboards for harmful activities such as No-smoking, No entry, be aware of accidents or pass through, etc. • For new workers and staffs, provide training to workers and staffs from day to day work to use of tools for safety. • Respect working hours, avoid disturbing neighbors, and take care of workers’ health. • Current business has minimal vibrations or noise due to use of electric motors and emits only heat and no dust from burning of the husks, follow the noise limit of Sub-Decree 42 or nor kror.bor kor dated on 10 July 2000 on the Control of Air Pollution and Noise pollution (both for vibration and loud noise). • Separate male and female bathrooms and toilets. Both are labeled and kept clean • Ensure to provide sources of drinking water for business operation • Ensure to provide materials and equipment for protection of workers’ health and safety, such as masks, construction site helmets, gloves, and boots. • Any business expansion or change of business, owner will re-submit the agreement to the Department of Environment for further information and guidance.

Provision3. Finish/End of the Business Operation

• If the rice mill business is closed, inform the Department of Environment prior to closing the business. • After finishing the construction, the area needs to be clean as before the construction.

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• Liquid waste and solid waste to be disposed off outside the premise, must seek permission from “one window one service” or the Department of Environment before transporting or discharging outside the premises.

Provision4. In case the department or Ministry of Environment requires me to modify any environmental techniques to comply with the new guidelines and standards, I would completely agree to the guidelines.

Provision5. In case the Ministry of the Environment consider this project has serious environmental and social impacts, it is required to submit an Environmental Impact Assessment report and will comply with the instructions and pay the public service fee to the Ministry of Environment.

Provision6. Cooperate and work closely with relevant environmental experts or relevant authorities who have official permission to perform site inspections and improvements.

Provision7. Volunteer to contribute 1,000,000 Riels (One million Riels) per year to Kampong Thom Provincial Department of Environment every year as state revenue until new guidelines. Provision8. In case, I fail to comply with any provisions or otherwise violate this agreement or any other applicable legal code, I shall be responsible to the Cambodian laws.

No: 492/19 Ror bor.bor sor Kampong Thom Date: 29 May 2019 Seen and agreed Thumb Print and Name Kampong Thom Date: 17 June 2019 Director of Kampong Thom Provincial Department of Environment Ros Sopharith

Top Kakada

File: - Kampong Thom Provincial Department of Environment 01 copy - Kampong Thom Provincial Department of Land Management, Urban Planning and Construction 01 copy - Office of Support Environment of Kampong Thom Provincial Department of Environment 01 copy - 1688 Rice Mill Co., Ltd 01 copy

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