Safeguards Due Diligence Report

Project Number: 44321-013

December 2019

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

Prepared by Ministry of Water Resources and Meteorology for the Royal Government of Cambodia 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 Phou Poy 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

Social Safeguard of Paddy Drying and Storage (PDS) Facility within Phou Poy 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

2 | Page supervision) firm to support the Rice Millers. The final ranking of the Rice Millers was endorsed by the PDS Selection Committee. The Phou Poy Rice Mill is ranked first in Battambang province 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 Phou Poy Rice Mill in Battambang 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. Battambang is long renown for quality rice, fruit and vegetable production. 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 Battambang province was about 836,925 tons out of which wet season production was 796,059 tons and that of the dry season was 40,866 tons. 30% rice crop production in Battambang province depended on natural irrigation and irrigation, and 70% depended on rain water. 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: Battambang Development Plan 2016-2018).

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 Battambang Development Plan, the poverty level in Sangkae district of Battambang province where the proposed PDS Facility is located has reduced from 22.98% in 2010 to 18.99% in 2017 (Source: Battambang Provincial Department of Planning, 2018). 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.

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8. Following the endorsement by the PDS Selection Committee, both the PMO and the DD & CS firm worked with the Phou Poy 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 2,880m2 (around 0.29 hectare) within the existing Rice Mill compound of the Phou Poy Rice Mill situated at the National Road No. 5, Chumnik Village, Anlong Vil commune, Sangkae District in Battambang province. The existing Rice Mill is located on a single piece of 60 hectares of land owned by the Rice Miller of which around 10 hectares has been fenced (land title issued by Provincial Department of Land Management and Urban Planning-“PDLMUPC”, Battambang, on 31 July 2006 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) and a storage building of a size of 24 m x 60 m x 17 m (Width x Length x Height). (See annex III: Detail Design of Phou Poy PDS Facility).

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 Phou Poy 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 24 May 2019 from 08:00-11:30AM with the participation of Villagers who have land and/or residences around Phou Poy Rice Mill (only one resident adjacent to Phou Poy Rice Mill), Village Chief, Commune Chief and Provincial Officials. A total of 22 Participants including 05 females participated in the meeting (see section V: List of participants). The meeting was chaired by H.E Chhim Sabonn, Provincial Program Director, PIO/Battambang 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 Phou Poy Rice Mill • Discuss on the social safeguards requirements for the PDS Facility and conflict resolution, if any.

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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 Phou Poy Rice Mill as the proposed Facility will be established well within the existing Rice Mill compound of Phou Poy Rice Mill where he has a Rice Mill in operation for the last 29 years. Furthermore, the lone villager who lives nearby the Rice Mill or the proposed site, Mrs. Chea Leang, did not raise any concern. 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 found in Minutes of Public Consultation Meeting on social safeguard impact assessment for establishment of PDS Facility within Phou Poy Rice Mill as attached as annex I.

• Mr. Keo Sotha, Secretary to Anlong Vil Commune Chief, informed the meeting that the proposed land for PDS Facility legitimately and rightfully belongs to Mr. Phou Poy, owner of Phou Poy 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.

• Mrs. Chea Leang, a villager, participating in the discussion mentioned that working hours should not be a concern as they follow Cambodian Labor Law and the construction site is well within the compound of Phou Poy Rice Mill Business. Mr. Keo Sotha intervened in the discussion and said that even though he is not concerned about working hours during construction, protection of workers and visitors who visits the construction site should be taken care of. To this, Mr. Phou Poy, owner of Phou Poy Rice Mill, promised to take necessary precautions related to the safety sign and use of safe materials for workers and visitors during construction period and include them in the contract with the contractor. He added that he did not want to take any chance with his Rice Mill Business.

• H.E Chhim Sabonn, Provincial Program Director, PIO/BTB, who chaired the meeting, agreed with the commune chief and the owner of the rice mill that for safety during construction, there need to be safety signs and also barricade to allow only people who are related to work.

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 Phou Poy Rice Mill in future, they would directly talk with Mr. Phou Poy 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

Provincial Governor Office (PIO), PDAFF and/or YES 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 Phou Poy Rice Mill and they agreed with the points below:

• PDS Facility shall be established on the private land owned by Phou Poy Rice Mill at the National Road No. 5, Chumnik village, Anlong Vil commune, Sangkae district in Battambang province.

• People especially villagers who reside Mr. Tep Leub, Chumnik Village Chief nearby or have land next to the proposed said “I support the Paddy Drying and site do not have any issue with the new Storage Facility within Phou Poy Rice Facility being constructed at the proposed Mill because if the Phou Poy Rice Mill site as the Facility shall be established well has new PDS Facility then he will within the private land owned by Phou Poy increase buying more quantity of paddy Rice Mill. rice to operate his Facility and villagers will get more profit from their production. • At the construction site, restrictions will be Also it will create employment put in place for villagers not related to the opportunity for local labors and reduce construction work but wanting to visit the migration of people to outside the construction site to avoid any untoward village’’. incidents and safety materials will be used during construction work.

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

• The Rice Miller has applied and received the Environmental Protection Agreement from Provincial Department of Environment (PDOE), Battambang, 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 25 poor/vulnerable villagers including 13 women drawn from the surrounding areas of the existing Rice Mill such as Ek Phnom, Banann and Sangkae districts but a big majority is from the same village where the Rice Mill is located (Chumnik village, Anlong Vil commune, Sangkae district). Upon completion of the proposed PDS facilities, the Rice Miller estimates to engage at least 50 villagers (i.e. two times than the current level) of which he says 60% would be women.

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IV. Photographic Records

Discussion/Meeting Photos

Photo of Site Visit Group Photo

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V. List of Participants

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Annex. I

Minutes of Public Consultation Meeting (PDS Facility for Phou Poy 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 Phou Poy Rice Mill

Friday (08:00-11:30AM), 24 May 2019 Phou Poy Rice Mill, Chumnik Village, Anlong Vil Commune, Sangkae District, Battambang Province

Chair: H.E Chhim Sabonn, Provincial Program Director, PIO/Battambang

Participants: Villagers (people living around the rice mill), Village Chief, Commune Chief, PIO/BTB Program Director and Officers, BTB/PDAFF Officer, BTB/PDoE Officer, BTB/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 22 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 Director, PIO/BTB 3.0 Presentation of Detail Design of proposed Phou Poy PDS Facility 4.0 Open Discussion on Social Safeguard for the proposed Phou Poy PDS Facility 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 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:

1 BTB= Battambang Province, DD&CS= detailed design and construction supervision firm, 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. 13 | Page

2.0 Opening Remark by Provincial Program Director, PIO/BTB

H.E Chhim Sabonn, Provincial Program Director, PIO/BTB, welcomed the MEF/PMO and MAFF/NIO team (officials and consultants) and thanked the villagers living close to the Phou Poy Rice Mill, Village Chief, Commune Chief, Provincial officials, and Mr. Phou Poy (Rice Mill owner) for participating in this important meeting. He informed the participants about the Rice- SDP project and its objectives that is to boost rice production, improve quality of milled rice, increase export to the international market as well as to help solve problems of farmers due to lack of 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 said that Battambang Province is able to dry paddy rice in between 4,000 to 5,000 tons per day but that also could not able to meet the demand of the province.

He informed the participants that Rice-SDP is going to provide loans to at least two rice millers at different locations in Battambang province to establish PDS Facilities. One of them is Phou Poy 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 because development must go hand in hand with the welfare of the people. 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 Phou Poy PDS Facility Please see Annex III.

4.0 Open Discussion on Social Safeguard for proposed Phou Poy PDS Facility After the presentation on detail design, the Rice-SDP team presented the location/land proposed by Mr. Phou Poy 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 Mr. Phou Poy as the proposed location of the PDS Facility belong to him? 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. Phou Poy, owner of Phou Poy Rice Mill, briefed the meeting that he has about 60 hectares of land at the proposed PDS site and currently around 11 hectares are used for ongoing Rice Mill Business and rest 50 hectares of land are rice field. The proposed PDS Facility will be established on 2-3hectares of these land.

(2)- Mr. Keo Sotha, Secretary to Anlong Vil Commune Chief, said that the proposed land legitimately and rightfully belongs to Mr. Phou Poy, owner of Phou Poy 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.

(3)- Mr. Tep Leub, Chumnik Village Chief said that Mr. Phou Poy and his family members are kind people and they normally donate food or clothes to the poor people and he never heard/received any complaint regarding any conflict from people living around the Rice Mill or their business partners. He also informed that as per his information Mr. Phou Poy even donated about one hectare of land adjacent to his rice mill to the Department of Public Work and Transport, Battambang, for their smooth operation.

(See Annex II: Phou Poy 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. Mrs. Chea Leang, a villager who resides adjacent to Phou Poy Rice Mill and has land and rice mill business adjacent to the proposed site, said that working hours should not be a concern as we follow Cambodian Labor Law and the construction site is within the compound of Phou Poy Rice Mill Business. She further mentioned that both of their businesses do not affect each other.

2. Mr. Keo Sotha, Secretary to Anlong Vil Commune Chief said that Cambodian people are clever and know the working hours and they would charge extra for any overtime work and they would not work for free of charge. So, he is not concerned about working hour during construction. As for safety sign and safe materials, he said that even though the construction will be within the compound

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building of rice mill, protection for workers and visitors who visits the construction site should be taken care of.

3. Mr. Tep Leub, Chumnik Village Chief said that noise or sound should not be a concern to neighbors because the contractor will use electricity and Inverter Welding Machine to build the warehouse and to connect the metal frame.

4. Mr. Phou Poy, owner of Phou Poy Rice Mill, said that he will take necessary precautions related to the safety sign and use of safe materials for workers and visitors during construction period and include them in the contract with the contractor. He added that he did not want to take any chance with his Rice Mill Business.

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 Phou Poy Rice Mill? o Do you think PDS Facility will benefit farmers or villagers in general? o If you have any conflict with Phou Poy 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 Phou Poy 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 transportation cost as they did not have to transport far, and also their sons/daughters could work as labor at the Facility to earn income. The participants added that they are not concerned about the perceived negative points on establishment of PDS Facility within Phou Poy Rice Mill as they will get opportunities to expand their rice Mr. Tep Leub, Chumnik Village Chief said business. The participants said that if they “I support the Paddy Drying and Storage have any concerns in the future, they Facility within Phou Poy Rice Mill because would directly talk to Mr. Phou Poy or if the Phou Poy Rice Mill has new PDS report to Village/Commune Chief or Facility then he will increase buying more District Governor for solutions. quantity of paddy rice to operate his Facility and villagers will get more profit Participating in the discussion Mr. Phou from their production. Also it will create Poy said that he has upgraded his employment opportunity for local labors business from family scale to commercial and reduce migration of people to outside scale and he is taking care of peoples’ the village’’. welfare and environment. He also

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confirmed that he would be happy to discuss with people and authority to solve any problem arising due to the PDS Facility.

Joining the discussion, Mr. It Michael, General Manager of Phou Poy Rice Mill said that the Rice Mill currently employs 25 poor/vulnerable villagers including 13 women. They are from different areas of Battambang such as Ek Phnom, Banann and Sangkae districts but a big majority is from Chumnik village, Anlong Vil commune, Sangkae district. He mentioned that after completion of the proposed PDS facilities, the Rice Mill will engage workers two times than the current level i.e. around 50 villagers of which he expects women to be around 60% of the work force.

5.0 Closing of the Meeting

H.E Chhim Sabonn, Provincial Program Director, PIO/BTB, congratulated all the participants for sharing ideas related to Social and Environmental Safeguards for the establishment of PDS Facility within Phou Poy Rice Mill. He suggested that if participants have any issue with Phou Poy Rice Mill they should report to the village or commune chief or directly talk with the owner or his management staffs for resolutions. He agreed with the commune chief and the owner of the rice mill that for safety during construction, there need to be safety signs and also barricade to allow only people who are related to work. At the end, he thanked all the participants, local authorities, Rice-SDP team, provincial team and Mr. Phou Poy for participating in this important meeting and for a fruitful outcome.

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Annex. II

Land Title of Phou Poy Rice Mill

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Annex. III

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

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Annex. IV

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

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Annex. V

Environmental Protection Agreement

(Provincial Department of Environment, Battambang & Phou Poy Rice Mill)

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Kingdom of Cambodia Un-official Translation Nation Religion King

Environmental Protection Agreement

I am Ith Michael, age 36 years old, Cambodia Nationality, ID Card: 170565814 dated 26 January 2011; Expire date: 26 January 2021, Permanent Address: 20 Uksaphea Village, Sangkat Prek Preah Sdach, Krong Battambang, Battambang Province, Representative of Phou Poy Rice Mill.

To: Director of Battambang Provincial Department of Environment

To contribute to environmental protection in the process of social development, I do the following environmental commitments to Battambang Provincial Department of Environment for Phou Poy Rice Mill business operation that is located in Chumnik Village, Anlong Vil Commune, Sangkae District, Battambang Province, as below:

Provision1. Ensure management of liquid waste storage tanks, and properly manage sediment discharge from the storage tank before releasing it to authorized areas or the public sewer system.

Provision2. Ensure the management of garbage, do not dispose off the garbage in public places or areas near the source of water thereby affecting the public order, aesthetic and also people who have residences nearby.

Provision3. Ensure minimization of noise, vibration, dust, and odor release due to rice mill operation and avoid health hazards to workers and people living nearby due to the release.

Provision4. Allow Environmental Officer from Battambang Provincial Department of Environment who has valid mission letter to inspect the rice mill site every 30 days to advise on pollution control in the environment.

Provision5. In case the department or the 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.

Provision6. Volunteer to contribute some funds as environment fee to Battambang Provincial Department of Environment every year.

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Provision7. This agreement is valid for one year from the date of this agreement. 30 days prior to the expiry of this agreement, I will submit a request for renewing the agreement to Battambang Provincial Department of Environment for the new term.

Provision8. In the case that I failed to comply with any provision or contrary to this agreement, I shall be fully responsible under the relevant Cambodian Laws, especially Environmental Protection and Natural Resources Law.

No. 162/Bor.Sor.khor.Bor Seen and Verified BTB Date: 29.04.2019 Seen and Approved To Director of PDOE Thumb Print BTB Date: 29.04.2019 BTB Date: 29.04.2019 Director of PDOE Chief of Environmental Protection Office Ith Michael

Kort Boran Kong Vannak

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