Rehabilitation of the Railway in Cambodia (Financed by the Japan Special Fund)

Technical Assistance Consultant’s Report

Project Number: 37269 November 2006

Cambodia: Preparing the Greater Mekong Subregion: Rehabilitation of the Railway in Cambodia (Financed by the Japan Special Fund)

Prepared by Japan Railway Technical Service in association with

Nippon Koei Co., Ltd. and Engconsult Ltd. Tokyo, Japan

For the Ministry of Public Works and Transport, Royal Government of Cambodia

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.

Asian Development Bank TA 6251-REG

GMS REHABILITATION OF THE RAILWAY IN CAMBODIA

FINAL REPORT (Volume 1)

November 2006

in association with

Engconsult Ltd.

FINAL REPORT

CONTENTS

• VOLUME 1 – The Study for Main Lines

APPENDICES

Appendix 1 Initial Environmental Examination (separate volume)

Appendix 2 Resettlement Plan (separate volume)

Appendix 3 Hydrological Data (separate volume) Appendix 4 Track Condition Survey Report

Appendix 5 Structure Condition Survey Report (separate volume)

Appendix 6 Sleepers Condition Survey Report (separate volume)

Appendix 7 Description of Requirements for Detail Design and Construction Supervision

Appendix 8 Tender Documents (separate volumes)

Bidding Document for Design and Construction of Railway Rehabilitation

Volume 1 Instructions, General Conditions, Particular Conditions, Bid, Forms, Schedules, Eligible Countries Volume 2 Employer’s Requirements, Design Criteria, Specifications Volume 3 Employer’s Requirements, Bridge & Culvert Data Volume 4.1 Drawings RRL 1 – Southern Line Volume 4.2 Drawings RRL 2 – Northern Line: Section 1 – Phnom Penh to Sisophon Volume 4.3 Drawings RRL 2 – Northern Line: Section 2 – Sisophon – Poipet

• VOLUME 2 – The Study for Branch Lines

APPENDICES

Appendix 9 Preliminary Engineering Design Drawings for Branch Lines (separate volume)

Appendix 10 Preliminary Train Operation Plans

Appendix 11 Resettlement: Socio-economic Indicators

Appendix 12 Economic and Financial Analysis

REHABILITATION OF RAILWAY IN CAMBODIA Final Report (Volume 1) ADB T.A. NO. 6251-REG Contents VOLUME 1

STUDY FOR MAIN LINES

TABLE OF CONTENTS

Abbreviations and Definitions Executive Summary

1. INTRODUCTION ------1-1

1.1 Background ------1-1 1.2 Mobilization------1-4 1.3 Purpose of the Final Report ------1-6

2. REVIEW OF THE PREVIOUS STUDIES------2-1

3. PRELIMINARY ENGINEERING DESIGN------3-1

3.1 Technical Survey of Infrastructures – Track ------3-1 3.2 Technical Survey of Infrastructures – Bridges and Culverts ------3-4 3.3 Hydrological Conditions ------3-21 3.4 Geotechnical Conditions ------3-48 3.5 Preliminary Engineering Design of Track ------3-57 3.6 Preliminary Engineering Design of Bridges and Culverts------3-66 3.7 Cost Estimate ------3-85 3.8 Project Implementation Schedule ------3-87

4. ENVIRONMENTAL ASSESSMENT AND ENVIRONMENTAL MANAGEMENT PLAN------4-1

4.1 Approach ------4-1 4.2 Initial Environmental Examination (IEE) ------4.1 4.3 Environmental Mitigation------4-1 4.4 Environmental Management Plan------4-2 4.5 Public Consultation and Information Disclosure ------4-2

5. RESETTLEMENT PLAN AND SOCIO-ECONOMIC SURVEY ------5-1

5.1 Resettlement Plan ------5-1 5.2 Public Consultation and Disclosure Plan ------5-2 5.3 Socio-economic profiles of affected people ------5-3 5.4 Resettlement Workshops ------5.3

REHABILITATION OF RAILWAY IN CAMBODIA Final Report (Volume 1) ADB T.A. NO. 6251-REG Table of Contents

6. ECONOMIC AND FINANCIAL ANALYSIS ------6-1

6.1 Introduction ------6-1 6.2 Assessment of Project Net Economic Benefits------6-1 6.2.1 Objectives and Scope of the Economic Assessment------6-1 6.2.2 Description of Approach used for the Economic Assessment------6-2 6.2.3 Economic Benefit Flows ------6-9 6.2.4 Results of the Economic Analysis------6-14 6.3 Assessment of Future Passenger Services ------6-19 6.3.1 Passenger Traffic Forecasts ------6-19 6.3.2 Financial Analysis of Future Rail Passenger Traffic ------6-28 6.4 Sensitivity Testing Of Project Evaluation Results ------6-35 6.5 Summary of ADTA Financial Analysis------6-37 6.5.1 Form of Proposed Restructuring ------6-37 6.5.2 Financial Obligations of the RRC and ROC------6-37 6.5.3 Key Assumptions of the Analysis for the RRC ------6-37 6.5.4 Key Assumptions of the Analysis for the ROC ------6-38 6.5.5 Key Analytical Assumptions for the Joint Property Development Agency------6-38 6.5.6 Base Case Results for the RRC------6-38 6.5.7 Results for the ROC------6-39 6.5.8 Recommendations------6-39 6.6 Likely Distribution of Project Benefits------6-40 6.6.1 Direct Benefits ------6-40 6.6.2 Indirect Benefits------6-41 6.7 Benefit Monitoring System ------6-41

7. PROCUREMENT AND DOCUMENTATION ------7-1

7.1 General ------7-1 7.1.1 Procurement Documentation ------7-1 7.1.2 ADB Guidelines and Standard Bidding Documents ------7-1 7.1.3 Project Title ------7-1 7.1.4 Contract Packaging and Identification of Project Components ------7-1 7.1.5 ADB Railway Restructuring ------7-2 7.2 Prequalification ------7-2 7.3 Design-Build Contract------7-2 7.3.1 Procurement Procedure and Conditions of Contract------7-2 7.3.2 Unexploded Ordnance------7-3 REHABILITATION OF RAILWAY IN CAMBODIA Final Report (Volume 1) ADB T.A. NO. 6251-REG Table of Contents 7.3.3 Domestic Preference and Local Participation ------7-3 7.3.4 Sections for Completion ------7-3 7.3.5 Provisional Sums ------7-4 7.3.6 Currencies and Payment Schedule ------7-4 7.3.7 Design Criteria------7-4 7.3.8 Outline Construction Specifications ------7-5 7.3.9 Training ------7-5 7.4 Construction Supervision ------7-5 7.4.1 General ------7-5 7.4.2 Counterpart Staff ------7-5 7.4.3 Required Expertise------7-6 7.4.4 Training and Institutional Strengthening ------7-6

8. CONCLUSIONS AND RECOMMENDATIONS ------8-1

APPENDICES

Appendix 1 Initial Environmental Examination (separate volume) Appendix 2 Resettlement Plan (separate volume) Appendix 3 Hydrological Data (separate volume) Appendix 4 Track Condition Survey Report Appendix 5 Structure Condition Survey Report (separate volume) Appendix 6 Sleepers Condition Survey Report (separate volume) Appendix 7 Description of Requirements for Detail Design and Construction Supervision Appendix 8 Tender Documents (separate volumes) Bidding Document for Design and Construction of Railway Rehabilitation Volume 1 Instructions, General Conditions, Particular Conditions, Bid, Forms, Schedules, Eligible Countries Volume 2 Employer’s Requirements, Design Criteria, Specifications Volume 3 Employer’s Requirements, Bridge & Culvert Data Volume 4.1 Drawings RRL 1 – Southern Line Volume 4.2 Drawings RRL 2 – Northern Line: Section 1 – Phnom Penh to Sisophon Volume 4.3 Drawings RRL 2 – Northern Line: Section 2 – Sisophon – Poipet

REHABILITATION OF RAILWAY IN CAMBODIA Final Report (Volume 1) ADB T.A. NO. 6251-REG Table of Contents

ABBREVIATIONS AND DEFINITIONS

Definitions

Bank : Asian Development Bank Consultant : JAPAN RAILWAY TECHNICAL SERVICE in association with NIPON KOEI CO., LTD. and ENGCONSULT LTD Project /Study : REHABILITATION OF RAILWAY IN CAMBODIA T.A. NO. 6251-REG

Abbreviations

AASHTO : Amerian Association of State Highway and Transportation Officials, Inc, AC : Asphalt Concrete ADB : Asian Development Bank ADT : Average Daily Traffic ADTA : Advisory Technical Assistance AFTA : ASEAN Free-Trade Area ALTID : Asian Land Transport Infrastructure Development Project AMSL : Above Mean Sea Level APEC : Asia-Pacific Economic Cooperation group ASEAN : Association of South East Asian Nations BOQ : Bill of Quantities CAD : Computer Assisted Design CBR : California Bearing Ratio CCC : Cooperation Committee for Cambodia CDC : Cambodia Development Committee CEPT : Common Effective Preferential Tariff CMAC : Cambodian Mines Action Centre DANIDA : Danish International Development Agency DBST : Double Surface Treatment DCP : Dynamic Cone Penetrometer DGM : Digital Ground Model EIA : Environmental Impact Assessment EOD : Explosive Ordnance Disposal ESA : Equivalent Standard Axle ESCAP : Economic & Social Commission for Asia and the Pacific FIDIC : Fédération Internationale des Ingénieurs-Conseils GDP : Gross Domestic Product GMS : Greater Mekong Subregion HDM : Highway Design and Maintenance Standards Model (World Bank) HE : High Explosive HWL : Highest Water Level IBRD : International Bank for Reconstruction and Development, World Bank IDF : Intensity-Duration-Frequency (rainfalls) IEE : Initial Environmental Examination IA : Implementing Agency (see PMU and MPW&T) ICB : International Competitive Bidding ICD : Inscribed Circle Diameter IRIC : Integrated Resource Information Center, UNDP, Cambodia IRR : Internal Rate of Return

REHABILITATION OF RAILWAY IN CAMBODIA PROJECT Final Report (Volume 1)t T.A. NO. 6251-REG Abbrevations and Definitions ISA : Initial Social Assessment ITC : Institute of Technology, Cambodia JARTS : Japan Railway Technical Service JBIC : Japan Bank for International Cooperation JICA : Japan International Cooperation Agency KOICA : Korea International Cooperation Agency LA : Los Angeles test lb : Pound; 1 lb = 0.45 kg LCB : Local Competitive Bidding LSA : Land Service Ammunition LTD : Land Titles Department, Cambodia MAFF : Ministry of Agriculture, Forestry and Fisheries, Cambodia MCLD : Medium Capacity Low Drag aircraft bomb MDE : Micro Deval test MOE : Ministry of the Environment, Cambodia MOU : Memorandum of Understanding MPWT : Ministry of Public Works and Transport, the IA of Cambodia MRC : Mekong River Commission NGO : Non-Governmental Organization NR : National Road (Cambodia) PAP : Project Affected Person PC : Prestressed Concrete PCU : Passenger Car Unit PMU : Project Management Unit PRC : People’s Republic of China ROW : Right of Way RETA : Regional Technical Assistance, ADB RC : Reinforced Concrete RHS : Right Hand Side RN : National Road (Cambodia) ROW : Right of Way RRAP : Resettlement and Rehabilitation Action Plan RRC : Royal Railway of Cambodia SEI : Significant Environmental Impact SIA : Social Impact Assessment SIDA : Swedish International Development Authority STD : Sexually Transmitted Disease TA : Technical Assistance TIR : Customs Convention on International Transport of Goods TOR : Terms of Reference TRS : Transport Rehabilitation Study (Cambodia) UNCTAD : United Nations Conference on Trade and Development UNDP : United Nations Development Programme. UNDTCD : United Nations Department of Technical Cooperation for Development UNECE : UN Economic Commission for Europe UNICEF : United Nations Children's Fund USAID : United States Agency for International Developemnt UXO : Unexploded Explosive Ordnance. VOC : Vehicle Operating Cost WB : World Bank WTO : World Trade Organisation

REHABILITATION OF RAILWAY IN CAMBODIA PROJECT Final Report (Volume 1)t T.A. NO. 6251-REG Abbrevations and Definitions Final Report (Volume 1)

EXECUTIVE SUMMARY

The railway in Cambodia consists of two lines, the Northern Line and the Southern line. The Northern Line, was built in the 1920s and extends for approximately 388 kilometres from Phnom Penh to Poipet, on the border with Thailand. The last 48 kilometres of the total length to the border with Thailand (the missing link) were destroyed during the war. The Southern line with a total length of approximately 264 kilometres was constructed in the late 1960s and links Phnom Penh with Sihanoukville, Cambodia’s main seaport.

The main purpose of the Project is to perform a feasibility study for the rehabilitation of the railway in order to strengthen the capacity of Cambodia transport network, reduce transport costs and re-establish Cambodia’s rail linkage with Thailand and with the other countries of the region.

The study comprises the preliminary engineering design including assessments of the condition of existing sleepers, track, structures and signalling and telecommunication systems; initial environmental examination and management plan; resettlement plan and socio-economic survey of the affected people along the railway lines; economic and financial analysis; and contract packaging and prequalification.

PRELIMINARY ENGINEERING DESIGN

• Geotechnical Conditions

The geological condition of the Project area is roughly divided into i) a recent alluvial area which is a pediment area formed in the Quaternary which is spread along Tonle Sap lake, Tonle Sap river and Mekong river, ii) an old alluvial area located “between Phnom Penh and Pursat”, “between Sisophon and Poipet”, and “close to Takeo and Kampot”, and iii) a sandstone area located between Kampot and Sihanoukville, and near Pursat. Regarding the depth of the bearing strata for bridge substructures in the project area, as a result of the study of various previous projects in the area, the deepest bearing strata of 25m range are found in the Kampot area. In the other areas, bearing strata of between 10 to 15m in depth are dominant. Regarding the ballast quarry sites in the project area, a site survey was conducted in this study because stable ballast supply will become one of important issues during the implementation period. Ballast should have high strength and durability. On the other hand, there are not so many quarry sites which can supply such a quality along the railway lines because railway lines basically run on alluvial plain or sandstone. As a result of the quarry site survey, four quarry sites, Kampong Trach Quarry Site (along the Southern Line), Kampong Chhnang Quarry Site (along the Northern Line), Phnum Thom Quarry Site (along the Northern Line), and Phnum Chunh Choang Quarry Site (along the Northern Line), are evaluated as available quarries.

• Hydrological Condition

The two railway lines of Cambodia connect the capital city of Phnom Penh with the seaport of Sihanoukville to the south, to Poipiet on the northwestern border with Thailand. The region crossed by the northern line is extremely flat and dominated by the regime of the Mekong- Tonle Sap Great Lake. Occasional flash floods might occur in major western tributaries of the Lake, affecting road and railway embankments. The southern line is affected by the coastal climate with more abundant rainfall as it approaches Kampot. The region around Kampot to Sihanoulkville receives more rainfall and some streams are affected by tides. The drainage infrastructure of the northern line was severely damaged by acts of sabotage during the war and its maximum capacity is up to 38% reduced by the temporary repair methods in use. Otherwise

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it seems generally adequate if fully rehabilitated, whereas on the southern line, maintenance seems to be the immediate issue.

• Preliminary Engineering Design – Trackwork

Prior to the engineering design work, the following surveys were carried out; 1) an aerial photo survey, 2) a track condition survey, 3) a sleeper condition survey, and 4) a quarry site survey. Aerial photo surveys were carried out in the area where clearing of UXO and land mines have not been carried out and for the purpose of the resettlement survey in the Poipet area. Track condition surveys were carried out by using motor inspection car for whole section of the Northern and Southern lines to check the existing condition of track structures. A sleeper condition survey was carried out along whole section of the Southern Line by 15 working teams to count the exact number of re-usable wooden and steel sleepers to be utilized for the rehabilitation work. Quarry site surveys were carried out to find potential quarry sites where good quality ballast can be supplied to the rehabilitation project along Northern and Southern Lines. The original requirements of the rehabilitated track for both lines were a maximum axle load of 20 tonnes and an average speed of 50 km/h. However, it was found that the existing condition of rail on the Northern Line is so poor that a maximum axle load of 20 tonnes is not practical. Therefore, a maximum axle load of 15 tonnes was applied to Northern Line and of 20 tons for the Southern Line. An average speed of 50 km/h was retained as per the original requirement. Approximately 90 % of the existing wooden sleepers will be replaced with PC sleepers during the rehabilitation work of Southern Line. Track panels will be re-assembled to form square joints. The number of PC sleepers will be 1,480/km. Where ballast is in poor condition, it will be replaced with new ballast. Where ballast is in good to fair condition, new ballast will be added to secure the required thickness of the ballast bed. All the existing track materials will be used for the rehabilitation of the Northern Line. Track panels will be reassembled to form square joints. Ballast will be placed in the same manner as for the Southern Line. No track structure remains on the Missing Link. New track will be constructed following the old alignment using BS80A rails donated by Malaysia on PC sleepers. Track structure will be as same as that of the Southern Line. Special attention shall be given to the construction of the last 400 m to the border where the track will pass through the median of NR-5 between casino hotels. In areas where the track crosses the street, the same track structure as for level crossings will be applied for a road transportation. Poipet station will have enough space for future provision of cross-border facilities, not only for freight trains but also for passenger trains from/to Thailand. It is recommended to build a building on the main platform accommodating immigration and custom offices inside. Through the number of discussions with PAS (Port Autonomous de Sihanoukville) officials, it was agreed to restore the old track structures inside the port which are approach the container stacking yard, near Warehouse No. 5. It was not recommended to adopt double-stack container transportation by rail because of instability of wagons on the meter gauge. There is no case of the application of double-stack container trains on meter or 1,067 mm gauge tracks. It is recommended that the contract be separated into 3 packages; namely, the Southern Line, the Northern Line and the Missing Link. The construction periods are estimated 30 months for Southern and Northern Lines, and 24 months for the Missing Link.

• Bridges and Culverts

On the Northern Line, there are 175 bridges with a total length of 3,794m. The steel bridges account for 64% of the total bridge length. In addition, there are 276 either box or pipe culverts.

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On the Northern Line, many bridges were damaged by explosives during the various periods of war or insurgency. They were restored temporarily using rails put together as girders supported by the wooden sleepers. All these structures need to be reconstructed. The condition is especially grave in the Pursat – Battambang section. Based on field surveys there are 18 steel bridges and 14 concrete bridges to be completely reconstructed, the total length of which is 593m. Additionally, major rehabilitation works of bridges are required. A total of 77 culverts requires complete reconstruction. On the Southern Line, there are 97 bridges and 488 culverts. The entire length of the whole bridges on this line is 3,371m. Most of the bridges are of concrete structure, accounting for 75% of the total bridge length. Structures on this line are in a relatively good condition excluding ones damaged by floodwater and the steel pipe piers corroded by the sea water between Kampot and Sihanoukville. There is no bridge to be completely reconstructed on this line. The major repair works of bridges are to reinforce corroded steel piles at four bridges. A total of 37 culverts needs to be completely reconstructed. The original design axle load is 15 tonnes on the Northern Line and 20 tonnes on the Southern Line respectively. However, in the rehabilitation of railway bridges and culverts on the Northern Line an axle load of 20 tonnes will be applied for the preparation of the future improvements. The Northern Line has a maximum of three trains per day servicing Phnom Penh and Sisophon while the Southern Line also has a maximum of one train per day servicing Phnom Penh and Sihanoukville. Because the rehabilitation works will be carried out during train operations, construction methods to minimize disruption to train operations have to be adopted.

• Project Cost Estimate

The summary of the estimated project cost is shown in Table below.

Table – Summary of Estimated Project Cost (Unit: Million US Dollar) Southern Line Northern Line Missing Link All

1. Construction Cost 29.44 12.44 8.33 50.21

2. Engineering Service Cost 1.77 0.75 0.50 3.01

3. Administrative Cost 0.16 0.07 0.04 0.27

4. Contingencies 0.47 0.20 0.13 0.80

Sub-total (1.+2.+3.+4.) 31.83 13.45 9.01 54.29 5. Land Acquisition & Compensation Cost 0.33 1.26 2.15 3.74

Sub-total (1.+2.+3.+4.+5.) 32.16 14.71 11.16 58.03

6. Price Escalation 2.85 1.78 1.06 5.68

Total 35.01 16.49 12.21 63.71

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ENVIRONMENTAL ASSESSMENT AND ENVIRONMENTAL MANAGEMENT PLAN

The following procedure has been adopted to examine the detailed baseline environment; 1) Field visits to project influenced sites, 2) Review and analysis of literature, 3) Discussion with local communities and provincial authorities, 4) Assessment of the present environmental scenario and identification of impacts of the project, 5) Addressing of critical problems, and 6) Preparation of an environmental monitoring and management plan and mitigation measures.

A draft IEE has been prepared for the project recommending environmental mitigation measures and an environmental management plan. The IEE defines the most effective mitigation measures and contains an Environmental Management Plan (EMP) for the design, construction, and operation of the railway.

Environmental mitigation can avoid, reduce, remedy, or compensate for, an adverse effect of a project or provide environmental benefits. The most effective mitigation is to design the project effectively, thus avoiding environmental damage.

The Environmental Mitigation plan (EMP) has been prepared based on ADB Guidelines; 1) To define the environmental management principles and guidelines for the design, construction and operation phases of the project, 2) To describe practical mitigation measures, 3) To establish the roles and responsibilities of all parties involved in the implementation of environmental controls.

The IEE process has included public participation and consultation to help MPWT achieve public acceptance of the project. Public consultations for the project have been undertaken in the provinces/districts and in the national capital. They involved a wide range of participants representing provincial governments, community leaders, affected people, development partners, and NGOs. The consultation process has been documented considering the requirements of both the ADB and the Government of Cambodia and presented in the IEE.

The affected people and the local communities expressed support for the project during the consultations as they clearly saw the benefit of the project to the community as well as the region.

RESETTLEMENT

A Resettlement Plan (RP) was prepared as a detailed plan to mitigate the land acquisition impacts of the project. The specific objective of the RP is to ensure that the social and economic well-being of affected persons is improved or at least restored to the pre-project situation.

The RP has been developed in accordance with the ADB’s Guidelines, set out in its “Policy on Involuntary Resettlement” 1995 and “Handbook on Resettlement” 1995 and relevant policies and laws of the Royal Government of Cambodia on involuntary resettlement and land ownership.

Based on a census and assets inventory survey conducted in May to June 2006, 1,145 owners of housing structures, establishments/shops, and minor structures will be affected. Of the said total figure, 410 will experience minor adverse effects while 735 will be affected and stand to be physically displaced. A big majority of those who will be displaced are in the Missing Link located in the Poipet Commune, Ou Chrov District in Banteay Meanchey Province. The total cost for resettlement of affected persons (AP’s) and compensation for lost assets is estimated at US$3,748,419.97.

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ECONOMIC AND FINANCIAL ANALYSIS

The economic benefits expected to flow from the rehabilitation of the railway are mainly associated with the diversion of heavy freight traffic from the primary roads running parallel to the railway alignment. Of these, the most significant benefit is fuel conservation, which is estimated to account for 50 per cent of total project benefits. Other benefits comprise reduced vehicle operating costs (net of fuel), reduced greenhouse gas emissions, reduced road maintenance costs, and reduced road accident costs.

The project may be expected to generate acceptable economic benefits. The Project Base Case, which assumes a moderate diversion of traffic from the road network to the rehabilitated railway and low traffic growth thereafter, is expected to yield an Economic Internal Rate of Return (EIRR) for the total project of about 24.9 per cent. Corresponding EIRRs for the Southern Line and the Northern Line were computed at 29.7 per cent and 15.1 per cent respectively, all of which are above the ADB’s cut-off rate of 12 per cent. Not unexpectedly, the economic returns of the project were found to be sensitive to oil price movements, but in particular were found to be highly sensitive to a reduction in overall transport benefits and to reduced benefits should operations not be re-established across the Thai border.

If railway passenger traffic is excluded from the analysis, the EIRRs for the overall project and for the Southern would increase slightly to 25.8 per cent and to 31.1 per cent respectively, while for the Northern Line the EIRR would be practically unchanged at 14.9 per cent. This result reflects the higher economic costs associated with rail passenger services by comparison with alternative transport modes.

Continuing provision of passenger services on the Cambodian rail system would require a high level of financial support by the Royal Government of Cambodia. This support which would be provided in the form of a subsidy to cover the shortfall of farebox revenue from operating expenses was estimated at a level of US$ 0.61 million in the first year of operation (2010) rising in real terms to US$ 3.1 million by 2030.

PROCUREMENT AND DOCUMENTATION

The procurement procedure with the Standard Single Stage Two Envelops for the tender for the railway rehabilitation was adopted for the purpose for speeding up the procurement process.

The Bidding Documents produced have been prepared in accordance with the ADB Guidelines, Standard Bidding Documents Procurement of Plant Design, Supply and Install for Single-Stage Bidding Procedure, published in April 2006 in which these Multilateral Development Banks (MDBs) General Conditions of Contract (GCC) are based on the Model Form of International Contract for Process Plant Construction published by the Engineering Advancement Association of Japan (ENAA).

The following codes have been given to the various project components to facilitate reference and identification by all parties during the procurement, construction and monitoring process.

Contract B Design and Construction of railway Rehabilitation comprising: RRL1 Southern Line RRL2 Northern Line (Phnom Penh – Poipet)

The standard ADB domestic preference criteria have been included in the evaluation of bid. To qualify for domestic preference a local firm or local partner in a joint venture must meet specified qualification requirements. There is the possibility that local concrete manufacturers will be able to participate in the manufacture of concrete sleepers.

Bids will be submitted in US Dollars or the currency of the Bidder’s home country and payments will be made to the Contractor in the currency of the bid in accordance with Payment Schedule.

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The Consultant team will have the following expertise to ensure the timely completion of the works; 1) railway rehabilitation experience, 2) railway track design expertise, 3) Railway structure design expertise, 4) experience in the administration, as the Engineer, of design-build contracts, and 5) familiarity with procedures in the administration of Bank-funded projects.

CONCLUSIONS

The feasibility study proved that the rehabilitation of both the Southern Line and the Northern Line is technically, economically and environmentally viable with an adequate economic internal rate of return. Therefore, it is recommended that the projects should be implemented as scheduled.

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REHABILITATION OF RAILWAY IN CAMBODIA ADB T.A. NO. 6251-REG

FINAL REPORT

1. INTRODUCTION

1.1 BACKGROUND

Geographically, the Royal Kingdom of Cambodia is located in Southeast Asia and extends over an area of 181,035 sq. km in Southeast Asia and the western part of the Indochina peninsula. It locates completely within the tropics between northern latitudes 10o 25’ and 14o 20’, and eastern longitudes103o 20’ and 107o 30’. Cambodia is bordered by Thailand and the Lao People Democratic Republic in the west and the north, and by the Socialist Republic of Vietnam in the east and south-east. The country is bounded in the south-west by the Gulf of Thailand and has a coastline of approximately 435 km. Cambodia has dimensions of approximately 560 km from North to South and 440 km from East to West.

Most of the land area is comparatively flat with its central three quarters covered by plains where the richness of the land is replenished by the regular flooding of the Mekong river, Southeast Asia’s most important river, and its tributaries. The vast plains spread to the basin between the Mekong River and Tonle Sap River. Surrounding the central plains are more densely forested and sparsely populated highlands and mountainous regions.

The Mekong River which is one of the ten longest rivers in the world, spanning 4,200 km and flows from China, Thailand and the Lao PDR, runs from the north to the south along the eastern side of Cambodia. It meets with the Tonle Sap River (which originates from the Tonle Sap Lake or the Great Lake) and the Tonle Bassac River, continuing southwards through lower Delta of Vietnam into the South China sea and the Pacific Ocean.

The climate of Cambodia belongs to the Southeast Asian Monsoon zone, caused by annual alternating high pressure and low pressure over the Central Asia landmass. It can be divided into a rainy season which lasts from about April to October and a relatively dry season for the remaining of the year. The annual rainfall varies considerably from area to area, with the southwest and southeast coastal areas experiencing the heaviest rainfall. The average annual rainfall is between 1,000 and 1,500 mm. The mean monthly temperatures are almost consistently in the range from 25oC in January to around 30oC in April.

The transport infrastructure that makes an important contribution to the socio-economic development of the country comprises of the road infrastructure, inland waterway, sea ports and railway.

Similar to the road transport network, the Royal Railway of Cambodia (RRC) plays a very important role in the Cambodian social life and in triggering the national economy. It consists of two main lines of metre gauge, one of which carries both passenger and freight traffic and the other only freight traffic.

The Northern, or “Old” line with a total length of 338 km, extends from Phnom Penh to Sisophon. From Sisophon to Poipet on the border with Thailand, there is a “missing link” of 48 km which was removed during the Civil war of the 1970’s. The construction of the Northern line was started in 1929 and completed in 1942. It was built with 30 kg/m rails on steel sleepers, for a maximum axle load of 15 tons. It should be noted that up to date, this line has never been renewed, with only minor maintenance carried out, as a result of which the track is in very poor condition.

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The Southern line, or “New” line that was opened in 1969 just before the start of Civil war links Phnom Penh with the country deep water port at Sihanoukville an has a total length of 264 km. Unlike the Northern line, the Southern line was built with 43 kg/m rail on wooden sleepers.

Very similar to the Northern Line, generally the track is in a very poor condition because of effect of the war and a lack of regular maintenance, since the line was constructed.

As part of the initial programme for encouraging cooperation amongst the countries in the Greater Mekong Sub-region including the Kingdom of Cambodia, the People’s Republic of China (PRC), the Lao People’s Democratic Republic (Lao PDR), Myanmar, the Kingdom of Thailand and the Socialist Republic of Vietnam, the Asian Development Bank (ADB) approved regional technical assistance for a feasibility study of the rehabilitation of the railway. This technical assistance will cover rehabilitation of infrastructure in Cambodia, reconstruction of the missing link from Sisophon to Thailand, construction of new track linking with the container terminal in Sihanoukville port and the construction of two new crossing loops for improving operations. This project is one of the vital, high priority subregional projects for providing a railway link between Thailand, Cambodia and Vietnam.

The objectives of the Project are to prepare a preliminary design for rehabilitation works in sufficient detail for determining the economic viability of the rehabilitation programme, accomplish environmental assessment and mitigation plans, draw up the resettlement plans for the people affected by the railway rehabilitation project and assess the net economic benefits on the railway rehabilitation based on traffic studies and projections prepared under the associated restructuring technical assistance.

It is expected that the rehabilitation of the railway lines will restore railway access in the country, make an effort for improving transport efficiency through provision of a variety of transport means and routes, and revitalizing railway operations on a sustainable foundation which in turn will encourage traffic and trade flows within the country, and with the countries in the region.

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48 km missing link, Sisophon - Poipet

Northern Line, Sisophon – Phnom Penh, 338 km Proposed Tran Asian Railway Line, Phnom Penh – VN border, 286 km

Southern Line, Phnom

Penh – Sihanoukville,

264 km

Figure 1.1 – Railway Lines in Cambodia

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1.2 MOBILIZATION

The organization of the Rehabilitation TA study team is shown on Figure 1.2 below.

Ministry of Public Works and Transport Royal Railways of Cambodia

Dr. Yit Bunna (Project Director) NHEK Thivuth (PD Restructuring TA) LY Borin (Director Permanent Way Dept.) CHAN Samleng (Dep. Dir. Ways & Works)

International Experts Domestic Experts

・Akio OKUTSU (Team Leader/ ・SOK Saing Im (Hydrologist) Railway Infrastructure Engineer) ・Yoshihiro AKIYAMA (Rilway Bridge/ ・KONG Meng (Geologist) Infrastructure Engineer) ・William S. SCHIESSEL (Procurement ・CHEA Sarin (Resettlement/ Social Specialist) Expert) ・Peter HODGKINSON (Transport Economist) ・TAING Sophanara (Environmental ・Nazibor RAHMAN (Resettlement/ Specialist) Social Expert) ・Maria Lyra ESTARIS (Resettlement/ Office Supporting Staff Social Expert) ・Dr. Masud KARIM (Environmental ・CHEA Chetra (Secretary) Specialist) ・Pierre ARNOUX (Resettlement/Social Expert ・Kiichi TAKEMURA (Signalling / Telecommunication Specialist) ・Hirotoshi SUZUKI (Geotechnical Expert) ・Teruki MISHIMA (Railway Alignment Specialist)

Supporting Expert

・SAMRANGDY Namo (Coordinating Engineer)

Figure 1.2 – Organization Chart of Rehabilitation TA Team

The mobilization and demobilization dates with cumulative number of months as of 31 October 2006 is shown on Table 1.1. The Team Leader was mobilized on 13 January 2006 and this date is taken to be starting date of the PPTA consulting services.

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Table 1.1 - Mobilization and Demobilization Dates

Remarks (As of November 1, 2006) 1, November of (As Revised M/M is 6.5 is M/M Revised 5.0 is M/M Revised 4.0 is M/M Revised is M/M total Revised 0.764+1.736=2.5 2.0 is M/M Original Revised M/M is 2.5 is M/M Revised 2.5 is M/M Revised Original M/M is 1.5 is M/M Original 1.0 is M/M Original 1.0 is M/M Original Revised M/M is 2.0 is M/M Revised 1.5 is M/M Revised Original M/M is 0.5 is M/M Original 1.666 0.500 2.466 2.466 2.000 2.500 2.500 5.589 5.589 6.663 6.663 4.232 0.764 0.764 0.267 0.267 is M/M Revised 1.233 2.933 2.933 2.000 2.000 Months to Date Cumulative No. of No. of Cumulative - Sep. 8, 2006 Sep. 8, 2006 Sep. Sep. 1, 2006 Sep. Feb. 8, 2006 Feb. Sep. 8, 2006 Sep. Apr. 8, 2006 8, Apr. May 6, 2006 6, May May 7, 2006 7, May Mar. 9, 2006 9, Mar. Mar. 3, 2006 3, Mar. July 14, 2006 July Oct. 29, 2006 29,Oct. Feb. 26, 2006 26, Feb. Feb. 28, 2006 28, Feb. Feb. 21, 2006 21, Feb. Apr. 21, 2006 21, Apr. Apr. 18, 2006 18, Apr. June 23, 2006 23,June (July 3, 2006) 3, (July June 13, 2009 13,June June 30, 2006 30, June Aug. 28, 2006 28, Aug. 2006 28, Aug. Aug. 23, 2006 23, Aug. (May 9, 2006) 9, (May (Aug. 5, 2006) 5, (Aug. Demobilization (June 23, 2006) 23, (June -- July 7, 2006 7, July 8, 2006 July 1.067 July 3, 2006 3, July 4, 2006 July Sep. 1, 2006 Sep. 4, 2006 Sep. 1, 2006 Sep. 2, 2006 June 3, 2006 3, June 2006 4, June June 30, 2006 30, June 1, 2006 July Oct. 2, 2006 Feb. 1, 2006 1, Feb. Feb. 1, 2006 1, Feb. Apr. 7, 2006 7, Apr. June 7, 2006 June Mobilization Aug. 9, 2006 9, Aug. Jan. 31, 2006 31, Jan. Jan. 13, 2006 13, Jan. July 10, 2006 10, July 2006 30, July July 17, 2006 17, July July 25, 2006 25, July Oct. 26, 2006 Oct. 20,Oct. 2006 Feb. 20, 2006 20, Feb. Feb. 15,Feb. 2006 17,Feb. 2006 Apr. 20, 2006 20, Apr. May 10, 2006 10, May May 16, 2006 16, May June 16, 2006June 2006) 1, (July 14, 2006June June 21, 2006June Mar. 23, 2006 23, Mar. Mar. 27, 2006 27, Mar. Aug. 14, 2006 14, Aug. 2006 14, Aug. 2006 14, Aug. (May 3, 2006) 3, (May (Aug. 3, 2006) 3, (Aug. (June 12, 2006) Dep. Date Dep. date Arrival Date Dep. Date Arrival Feb. 8, 2006 Feb. 9, 2006 May 3, 2006 3, May 2006 4, May 2006 6, July 7, 2006 July Jan. 31, 2006 31, Jan. 2006 1, Feb. 9, 2006 Apr. 2006 10, Apr. Apr. 24,Apr. 2006 25, Apr. 2006 Apr. 19, 2006Apr. 20, 2006 Apr. 1, 2006 May 2, 2006 May Aug. 19, 2006 19, Aug. 2006 21, Aug. Position Resettlement/Social Expert Resettlement/Social Environmental Specialist Environmental Arrival Date means date of arrival at Cambodia. at arrival of date means Date Arrival Work. Office Home is ( ) in shown Date (New Staff for Additional Scope of Work) Scope of Additional for Staff (New Note: Note: country. home at the departure of date the means Dep. Date Name H. SUZUKI Geological Expert CHEA SarinCHEA Expert Resettlement/Social TAING Sophanara EnvironmentalSpecialist A. OKUTSUA. Engineer Infrastructure Leader/Railway Team AKIYAMAY. Engineer Infrastructure Bridge/ Railway P. HODGKINSON Transport Economist M. ESTARIS Expert Resettlement/Social Dr. M. KARIM N. RAHMAN Expert Resettlement/Social MengKONG Geologist T. MISHIMATAKEMURAK. Specialist Alignment Specialist Railway Telecommunication & Signal W.S. SCHIESSEL Specialist Procurement ImSOK Saing Hydrologist P. Arnoux ADB TA No. 6251-REG Rehabilitation of Railway in Cambodia in Railway of Rehabilitation 6251-REG No. TA ADB Record Mobilization/Demobilization

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1.3 PURPOSE OF THE FINAL REPORT

The objectives of the Study are to perform a feasibility study for the rehabilitation of the railway lines, and branch lines of the Northern and the Southern Lines for enhancing the transport network, providing a better transport and linkage between the countries in the region.

The details of the feasibility study for the construction and rehabilitation of the railway branch lines of the Southern and Northern lines are illustrated in the Main Report, Volume 2.

The main purpose of the Final Report is to portray the findings drawn from the review of the previous studies, preliminary tasks and investigations including:

- an assessment of the condition of existing sleepers, track, bridges, culverts and signalling and telecommunication systems; - preliminary engineering design; - initial environmental examination and management plan; - resettlement plan and socio-economic survey of the affected people along the railway lines; - economic and financial analysis; and - contract packaging and prequalification.

The Report illustrates, firstly, the main issues relating to the initial engineering aspects, including technical survey of the existing railway lines and branch lines, hydrological and geotechnical investigations and alternatives for the improvement of the infrastructure together with the technical specifications and bidding documents necessary for the contracts for the rehabilitation works.

Secondly, based on the field investigations, the consultations with various stakeholders and data analysis, the assessment of the general environmental profile, specific environmental conditions and detail environmental impacts together with the mitigation plans have been implemented.

Moreover, presently there are numbers of houses and dwelling cum small business units made of semi- permanent materials are encroaching on the railway lines, especially on the currently unused railway alignment passes through Poipet commune closed to the border with Thailand. When the railway tracks will be rehabilitated people utilizing the structures sitting closed to the railway alignment will be adversely affected. The census of land and properties and the socio-economic surveys had been conducted for determining the impact of the project then draw up the resettlement plan for the households that are negatively affected.

Furthermore, in the line with the engineering design for rehabilitation works, it comments on the proposed approach to an economic evaluation, together with the measurement of the distribution of project benefits, risk analysis and a plan for future monitoring of project benefits.

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2. REVIEW OF THE PREVIOUS STUDIES

Many studies and projects which have been carried out for the purposes of supporting transport infrastructure rehabilitation and development in Cambodia were mostly focused on the improvement of the road network, ports and airports. Railway projects have had lower priority previously.

However, with the significant progress to date in the improvement of the road network and the port system, the Royal Government of Cambodia, the ADB and other donor agencies began to focus on the development of railway with a view to:

• develop sustainable transport infrastructure; • encourage the diversity of multimodal transport services available to users; and, • encourage competition, preventing the formation of monopolies in the transport sector.

There are some previous studies covering various aspects of the restoration of the railway system in the country, including those prepared by the Royal Railway of Cambodia itself. Those previous studies are listed below together with some other studies that may contain useful information specifically related to the geological, hydrological information that were prepared for the road projects but can be used as the reference for the study on the rehabilitation of the railway.

• Cambodia Railway Rehabilitation, Track Survey, Old Line and New Line published in 1993. This is in two separate volumes, one each for the Northern and Southern lines. Both provide a graphical presentation of the railway line, status of the infrastructure, including the general track alignment (curve radius, slope gradient, location of the railway stations, crossing road, bridges and culverts). In addition, it identifies the speed restriction applying to individual sections of both lines.

• Cambodia Transport Rehabilitation Study. ADB T.A. 1866-CAM, co-financed by SIDA and UNDP and was published in 1994. This report considered the need for rehabilitation of transport infrastructures in the context of the prevailing economic conditions at that time.

The same type of information can be found in the report for the railways, ports and inland waterway transport. The report also provides summaries of the proposed priorities for emergency rehabilitation of roads and bridges, the railway, ports and inland waterways.

• Report on the Extent of Flooding and Drainage Requirements for NR5, NR6 and NR11 during Emergency Rehabilitation Works. This report was published by SMEC International Pty Ltd in August 1995 under the financial support from the Asian Development Bank (ADB). This report principally contains the results of the investigation and analysis on the existing situation regarding flooding and catchments areas of the National Road Nos 5, 6 and 11 and recommendation on the most suitable methods for alleviating and minimizing the damages to the roads.

• Program, the Economic Rehabilitation of the Transportation through the Railway of Cambodia, (RRC, 1998). This report presents previous and current information on the railway lines in Cambodia since 1970 together with the data on locomotives and wagons and a railway development plan.

• Project Preparation Technical Assistance for Primary Road Restoration Project, Final Report, Detail Engineering – Bridges. This report was prepared by SMEC Pty. Ltd for the Asian Development Bank T.A. No. 2722-CAM.and published in June 1999. The report reveals the results of the study to the bridges structures, culverts systems along the National Road Nos 5, 6 and 7 for the rehabilitation works to the mentioned roads. The report reviews the overall situation of the bridges and culverts along the project roads including the hydrological and geological information.

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• Feasibility Study on the re-establishing the Bangkok – Aranyaprathet – Phnom Penh Railway Line. This report was prepared by Halcrow Group (Thailand) Ltd. in association with the Thailand Development Research Institute Foundation (TDRI) and was published in December 1999. The report reviews the overall technical situation of the railway lines and their accessories and presents an economic and financial analysis based on an engineering feasibility study of re-establishing the railway from Aranyaprethet in Thailand to Sisophon in Cambodia, to provide a through railway link between Bangkok and Phnom Penh. Moreover, it provides an analysis of the rehabilitation of the remaining section from Sisophon to Phnom Penh.

• Historic background of the Royal Cambodian Railway. This report was published by the RRC in about 2000. It contains general background information on both railway lines, as well as the condition of the tracks and other railway facilities, train operations and some statistical information related to the traffic volume carried on both lines.

• Feasibility Study on Railway Rehabilitation Project between Phnom Penh and Sihanoukville, published in October 2000. The study was conducted by the Royal Railway of Cambodia and Japan Railway Technical Service.

The report is structured as follows:

The first sections address the study background and objectives the socio-economic framework and the national plan for development of the country followed by the descriptions of the existing transport infrastructure including the road network, railway and inland water ports.

The next two sections discuss in more detail the existing organizational structure of the railway, condition of railway components, freight and passenger traffic transportation, traffic demand forecasts, existing train operation condition and the projected possible requirement of the train operation and engineering rehabilitation plan of the railway facilities, such as track, drainage structures, signaling and telecommunication system and rolling stocks etc.

The remainder of the report presents the results of the economic and financial analysis, as well as an environmental analysis.

• Feasibility Study for the Singapore – Kunming Rail Link, Final Report, published in November 2000. The report provided freight and passenger traffic analyses and forecasts for the next 30 years, together with a financial analysis of an international railway, linking Singapore with Kunming and sustaining a flow of the traffic across the countries through which the railway will pass. In this report, all possible impediments to the flow of cross-border movement of goods and vehicles have been identified and recommendations have been made for overcoming obstacles.

• Foundation Investigation Reports. There is a series of the foundation investigation reports conducted on the numbers of bridges along NR5 prepared for the Primary Roads Restoration Project in 2001 under the Loan from the Asian Development Bank. The reports cover the field survey information including the laboratory testing results that are necessary for the construction of the bridges.

• Transport Sector Strategy Study, Final Report was published in 2002. The study, conducted by NDLEA in association with Japan Oversea Consultant (JOC), was funded by ADB T.A. No. 3651- CAM. The report recommended the overall national transport policies for roads, rail inland waterways, ports and shipping, and aviation and the strategies for achieving the development of those sectors.

In addition, it emphasized the important of the private sector participation in the transport sector and provided recommendations for increasing the efficiency and effectiveness of transport institutions. It also developed investment programmes for maintenance and rehabilitation of roads,

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railway and other transport sub-sectors, that are consistent with the suggested transport policies and modal sector strategies, presented in the study.

• The Feasibility Study and Detailed Engineering Design on the Rehabilitation of the Kampot – Trapaing Ropou Road, Draft Final Report published in June 2002. The study was conducted by Korea Consultants International under the financial support from the Korea International Cooperation Agency. The report provides the detailed information on the study of the section of approximately 30 km of the National Road No 3 from Kampot to Trapaing Ropou on the southern part of Cambodia. The results of field surveys for determining the existing condition of the roadway including the conditions and inventories of bridges and culverts in the section of the RN3 on the time of study are emphasized together with the topographic survey and geological conditions along the section of road. Then the detailed engineering designs of the road alignment, cross sections, and pavement and drainage systems in the line with the technical specifications for the necessary rehabilitation works also included in the report.

• Flood Emergency Rehabilitation Project. Design Report, Volumes 1, 2 and 3. The reports were prepared by Scott Wilson in association with BCEOM and published in August 2002 for the World Bank funded project IDA Credit No 3472-KH. It consists of all necessary detailed engineering designs for the reconstruction of the National Road Nos 3, 6, 3, 31 and 33 including the improvement of carriageway, bridges, culverts, and traffic sign and localized safety as appropriate. Besides the detail engineering aspects, the report also covers the study on environmental issues, hydrology and geological information and analysis on for the concerned roads.

• The Study on Regional Development of the Phnom Penh – Sihanoukville Growth Corridor in the Kingdom of Cambodia published in June 2003. The study was conducted by Nippon Koei Co., Ltd. International Development Center of Japan and Kri International Corporation; and was financed by JICA. The document emphasized the importance of the formulating a master plan on the regional development of the Growth Corridor stretching between the national capital city of Phnom Penh and the deep seaport in Sihanoukville. This master plan would focus on the development of industry up until the target year of 2015.

The report also discusses the inter-regional issues including the economic integration of the countries in Indochina peninsula, the Greater Mekong Sub-region (GMS) development programme, as well as infrastructure development, including road, railway, power supply, air transport etc. Furthermore, the report reviews the status of the economy and of the human resource base, together with many other aspects and the problems encountered in the development of the country.

The Special Promotion Zones (SPZs) of Cambodia which are special economic zones (SEZs) designated by the authority from time to time, where different economic principles, taxation systems, FDI treatment and/or institutional procedures are applied for the promotion of investment, their possible locations, basic concepts and principles for development and implementation arrangement are all discussed in great detail in the paper. Moreover, the main strategies, master plan and action program for the development of economic corridor especially the Special Promotion Zone (SPZ) in Sihanoukville and in the suburbs of Phnom Penh have been developed in this report.

• Bridges and Culverts on Railways of Cambodia published by the Royal Railway of Cambodia in December 2003. This is mainly an inventory list of the bridges, culverts and other structures along Northern and Southern railway lines. The locations, types, dimensions and status of those structures are indicated in the inventory.

• Assessment of Modal Competitiveness and Traffic Potential of the Rehabilitation Railway in Cambodia, Final Report. This report was released by the Asian Development Bank in 2004. The purpose of the study was to assess the future modal competitiveness and freight traffic potential of a restructured and rehabilitated railway.

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The report contains a review of the modal competitiveness of rail freight transport with road and inland waterway freight transport. Models were developed for the purpose of assessing the future demand for the rail freight transport. Finally, the report identifies the impact of improved railway services in terms of diverting freight traffic from the road network, thereby achieving road maintenance cost saving and reducing overall traffic costs.

Table 2.1 – Summary list of previous study reports on Royal Railway of Cambodia

No Title Author Publication Date 1 Cambodia Railway Royal Railway of 1990 Rehabilitation, Track survey, Cambodia Volume 5, Track Diagram, New Line 2 Cambodia Railway Royal Railway of 1990 Rehabilitation, Track survey, Cambodia Volume 5, Track Diagram, Old Line 3 Cambodia Transport SweRoad in association 1994 Rehabilitation Study, Interim with Lan Xang Report. ADB T.A. 1866-CAM, International and SWECO co-financed by SIDA and UNDP 4 The Extent of Flooding and SMEC International Pty August 1995 Drainage Requirements for Ltd NR5, NR6 and NR11 during Emergency Rehabilitation Works 5 Program, The Economic Royal Railway of 1998 Rehabilitation of the Cambodia Transportation through the Railway of Cambodia, by RRC, 1998 6 Project Preparation Technical SMEC International Pty. June 1999 Assistance for Primary Road Ltd Restoration Project, ADB T.A. No. 2722-CAM, Final Report, Detail Engineering – Bridges. 7 Feasibility Study on Re- Halcrow Group (Thailand) Dec. 1999 establishing the Bangkok – Ltd. in association with Aranyaprathet – Phnom Penh Thailand Development Railway Line, Interim Report Research Institute Foundation 8 Historic Background of the Royal Railway of 2000 Royal Cambodian Railway Cambodia 9 Feasibility Study on Railway Royal Railway of Oct 2000 Rehabilitation Project between Cambodia and Japan Phnom Penh and Railway Technical Service Sihanoukville.

10 Feasibility Study for the K. L Consult, Juratera Nov 2000 Singapore – Kunming Rail Perunding Link, Final Report

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No Title Author Publication Date 11 Foundation Investigation Ministry of Public Works 2001 Reports. Primary Roads and Transport, Cambodia Restoration Project 12 Transport Sector Strategy NDLEA in association with 2002 Study, Final Report, ADB T.A. JOC No 3651-CAM 13 The Feasibility Study and Korea Consultants June 2002 Detailed Engineering Design International on the Rehabilitation of the Kampot – Trapaing Ropou Road, Draft Final Report. 14 Flood Emergency Scott Wilson in association August 2002 Rehabilitation Project. Design with BCEOM Report, Volumes 1, 2 and 3. 15 The Study on Regional Nippon Koei Co., Ltd. June 2003 Development of The Phnom International Development Penh – Sihanoukville Growth Center of Japan and Corridor in the Kingdom of Kri International Cambodia Corporation

16 Bridges and Culverts on Royal Railway of Dec 2003 Railways of Cambodia Cambodia 17 Assessment of modal Asian Development Bank Jan. 2004 competitiveness and traffic potential of the rehabilitated railway in Cambodia, Final Report 18 Project Preparation Technical SMEC International Pty. June 1999 Assistance for Primary Road Ltd Restoration Project, ADB T.A. No. 2722-CAM, Final Report, Detail Engineering – Bridges.

MAJOR RAILWAY REHABILITATION AND IMPROVEMENT PROJECTS

Besides the studies, there are only two major projects using the funding resources from Asian Development Bank. The first one is the Special Rehabilitation Assistance Project. As part of this project, the rehabilitation of the track sections on the Southern and Northern lines along with the reconstruction of bridges and culverts on both lines, repair to the railway wagons and renovation of Phnom Penh terminus station were implemented in the years 1994-95 for a cost of approximately US$ 3.75 million.

The other rehabilitation works were carried out under the auspices of the Emergency Flood Rehabilitation Project. The works comprised of reconstruction of 35 km of the track on the Northern line (section by section), as well as rehabilitation of three bridges on the Southern line at locations 25.300, 162.029 and 168.519 and of the drainage system on the Southern Line in Sihanoukville. The total amount of the works is approximately US$ 1.80 million. The works were carried out in between the years of 2001 and 2003.

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Table 2.2 - Summary List of Major Railway Rehabilitation and Improvement Projects

No Project Name Start Year End Year Millions Status Remarks US$

1 Special Rehabilitation 1993 1995 approx completed Emergency rehabilitation to Assistance Project, Project 3.75 the track sections in both lines, Implementation in Transport bridges and drainage systems Sector, ADB Loan No 1199- along those lines, repair to CAM wagons and renovation of Phnom Penh railway station

2. Emergency Flood 2001 2003 approx completed Emergency rehabilitation of 35 Rehabilitation Project, ADB 1.80 km of the track sections on the Loan No 1824-CAM(SF) Northern Line, as well as bridges and drainage systems along Southern Line near Sihanoukville.

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3. PRELIMINARY ENGINEERING DESIGN

3.1 TECHNICAL SURVEY OF INFRASTRUCTURES - TRACK

The following surveys are carried out as the technical survey of infrastructures for track structure;

• Aerial photo survey • Track Condition Survey • Sleeper Condition Survey • Quarry Site Survey

3.1.1 Aerial Photo Survey Aerial photo survey was adopted for the areas where detailed map is not available or the area where ground survey cannot be executed because of the existence of UXO and land mines. The whole section of the Missing Link was surveyed by the aerial photo to identify and trace the old alignment. According to the results, the old alignment was clearly traced from Sisophon to Poipet, except the last 4 km because encroachment of squatters.

A sample photo is shown below.

Figure 3.1.1 – Aerial Photo Sample Sisophon - Poipet

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3.1.2 Track Condition Survey

Since Northern Line has total length of 338 km and Southern Line has total length of 264 km, inspections of the existing track condition were carried out by using motor cars. The schedules of the inspection by motor car were as follows;

Feb. 2, 2006: Northern Line (Phnom Penh – Porsat) Feb. 3, 2006: Northern Line (Pursat – Battambang) Feb. 4, 2006: Northern Line (Battambang – Sisophone) Feb. 6, 2006: Southern Line (Phnom Penh – Kampot) Feb. 7, 2006: Southern Line (Kampot – Sihanoukville) Feb. 24, 2006: Southern Line (Phnom Penh – Sihanoukville) Apr. 1, 2006: Northern Line (Phnom Penh – Battambang) Apr. 2, 2006: Northern Line (Battambang – Sisophon) During the survey by motor cars, whole section of the railway track was recorded by video camera for further reference purpose. Result of the inspection was summarized in Appendix 4.

3.1.3 Sleeper Condition Survey

(1) General The existing Southern Line from Phnom Penh to Sihanoukville was constructed from 1960 to 1969, using 43 kg rail on wooden sleepers. These wooden sleepers are generally in poor condition. Because of rot and weathering of wood material, rail spikes are floating or missing in high percentage. Approximately 8% of those wooden sleepers had been replaced with steel sleepers for track maintenance purpose. The sleeper condition survey was carried out to identify the number of re-usable sleepers on Southern Line from KP 9+400 (branching point) to KP 263+000 (Sihanoukville station). (2) Survey Procedure The whole section of Southern Line was divided into 15 sections and 15 working teams were allocated for the survey of each section. The average length of a section is 15km. During the survey work, all the sleepers were carefully checked and classified as re-usable sleepers and unusable sleepers. Those sleepers judged as re-usable are clearly marked by paint for easy identification in future. The number of all sleepers, re-usable and unusable were counted and recorded in the Inventory Sheet for tally up the results. (3) Sleepers Condition During the survey, wooden sleepers were carefully checked whether it is re-usable or unusable. The judgment is based on the degree of weathering, rot, crack, and dog spike holding power. Those judged as re-usable sleepers were marked with white paint on the surface. All the sleepers, re-usable and unusable are recorded in the inventory sheets. Steel sleepers were also checked in the same manner as wooden sleepers. During site survey, some teams have made judgment as unusable because of missing bolts and nuts. Those sleepers shall be counted as re-usable.

(4) Conclusion The result of the survey is summarized in Table 3.1.1.

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Table 3.1.1 – Summary of Sleeper Condition Survey

Wooden Sleepers Steel Sleepers No. location Tootal Re-usable Unusable Re-usable Unusable 1 PK 9-400 - 25+000 609 18,780 4,879 100 24,368 2 PK 25+000 - 40+000 532 21,714 1,257 161 23,664 3 PK 40+000 - 56+000 3,199 19,990 1,252 743 25,184 4 PK 56+000 - 72+000 2,012 21,294 1,259 619 25,184 5 PK 72+000 - 89+000 5,035 20,111 1,246 168 26,560 6 PK 89+000 - 107+000 1,368 22,103 1,681 1,216 26,368 7 PK 107+000 - 125+000 6,917 18,489 1,255 87 26,748 8 PK 125+000 - 144+000 6,146 17,696 729 555 25,126 9 PK 144+000 - 162+000 5,440 16,337 2,228 391 24,396 10 PK 162+000 - 181+000 2,856 24,803 1,465 540 29,664 11 PK 181+000 - 198+000 1,059 25,828 1,684 5 28,576 12 PK 198+000 - 215+000 179 23,905 2,506 37 26,627 13 PK 215+000 - 232+000 1,238 25,190 1,538 7 27,973 14 PK 232+000 - 249+000 588 24,232 1,235 323 26,378 15 PK 249+000 - 263+000 3,282 13,585 2,297 65 19,229 at Sihanoukville Stn 1,075 2,414 11 0 3,500 Total 41,535 316,471 26,522 5,017 389,545 Percentage to Total 10.66% 81.24% 6.81% 1.29% 100.00%

All the inspection records are bound in Appendix 6, Sleeper Condition Survey Report.

3.1.4 Quarry Site Survey

Ballast supply is one of the key issues of the project. Total quantity required is 650,000 m3 in total for the construction of Northern Line, Southern Line and Missing Link. According to the Implementation Schedule, ballast material shall be supplied to sites 1,300 m3 in total every day. According to the information from quarry sites, daily production of ballast will be 300 to 400 m3 per crushing plant. Hence, the following items shall be carefully investigated and planned by contractors who are intending to bid;

• Supplying capacity of quarry site • Location of quarry site • Transportation to construction site • Quality of ballast Having inspected 5 potential quarry sites, quality of ballast materials were ranging from excellent to poor. Four quarry sites among five were acceptable level. One quarry site was not acceptable level because the rock is strongly weathered. Two of them is located in close vicinity of the railway track. One is far from railway track.

As detailed in Section 3.4, good quarry site was not found between Phnom Penh and Pursat along the railway track. Because this section is away from national Road No. 5, it will be required to find quarry sites along the railway for efficient construction.

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3.2 TECHNICAL SURVEY OF INFRASTRUCTURES – BRIDGES AND CULVERTS

3.2.1 Outline of Railway Bridges and Culverts

The railway network of Royal Railways of Cambodia (RCC) consists of two main lines with a meter gauge. The Northern Line or the Old Line extends northwest direction from Phnom Penh to Poipet, the border with Thailand, and the Southern Line links Phnom Penh with the country’s deep water port at Sihanoukville.

3.2.1.1 Northern Line

The Northern, or “Old Line” has a total length of 338 km from Phnom Penh to Sisophon. The 48 km section from Sisophon to Poipet on the border with Thailand is called “Missing Link”, the tracks of which were removed during the Civil War in the 1970s. At present train operation in this section is closed.

The construction of the Northern line was started in 1929 and completed in 1942. The construction history of the Northern Line is shown in Table 3.2.1.

Table 3.2.1 – Construction History of the Northern Line Years Section Length (km) 1929-1931 Phnom Penh –Pursat 165.5 1931-1932 Pursat – Battambang 107.6 1932-1933 Battambang – Mongkol Borey 57.1 1933-1942 Mongkol Borey – Poipet 55.8 Source: RRC

This line was built with 30 kg/m rails on steel sleepers using rigid clip bolts. It was designed to accommodate a maximum axle load of 15 tons. The minimum curvature is 300 m and the maximum gradient is 6.5 %o. The maximum length of the passing loops on the Northern Line is not exceeding 250m.

During the Civil War in the country, the tracks, bridges and culverts of the Northern Line were seriously damaged by land mines and explosives. In addition, it should be noted that up to date, this line has never been renewed, with only minor maintenance and repair works carried out, as a result of which the track is in very poor condition. Although the line was originally designed for the maximum speed of 70 km/h, the present speed of the train is restricted to 25 - 30 km/h due to the track conditions and at most of the bridges train speed is limited to 3 – 10 km/h.

3.2.1.2 Southern Line

The construction of the Southern Line, or “New Line” was started in the beginning of 1960s and it opened for operation in 1969 just before the start of Civil war. This line links Phnom Penh with the country international deep water port at Sihanoukville and has a total length of 264 km. Table 3.2.2 shows the construction history of the Southern Line.

Table 3.2.2 – Construction History of the Southern Line Years Section Length (km) 1960-1966 Phnom Penh –Takeo 74.5 1966-1967 Takeo – Kampot 91.5 1967-1969 Kampot – Sihanoukville 98.0 Source: RRC

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The Southern line was designed for 20 tonnes axle load and it was built with Chinese 43 kg/m rail on wooden sleepers using screw spike. The maximum horizontal radius of the curve is 300m and the ruling gradient is at maximum of 7.0 %o .

Although the condition for the Southern Line is slightly better than the Northern Line, in general the track is also in a very poor condition because of damages by Civil War and a lack of regular maintenance since the line was opened. In many sections, the embankment is either eroded or settled.

The original design speed for this line was 90 km/h. However, presently the maximum speed is limited to only at 25 – 30 km/h in many sections and at 3 – 10 km/h at most of bridges.

3.2. 1.3 Civil Structures

(1) Stations

Totally there are 49 railway stations on the Northern Line between Phnom Penh and Poipet and 27 railway stations on the Southern Line between Bifurcation and Sihanoukville. According to RRC, the stations are classified into two main categories. Firstly, Gare or Main stations are mainly equipped with passing loops for the crossing of trains, with sidings and other facilities for goods. Secondly, Halts are normally used for passengers and luggage only. At present most of the stations are badly damaged and abandoned because of the Civil War and some of them have almost disappear without trace.

(2) Bridges and Culverts

Based on the information gathered and field inspections on the both railway lines, the completed inventory of the bridges and culverts including pipe culverts and box culverts for the entire railway lines have been drawn up. (Please refer to Appendix 5 Structure Condition Survey Report)

On the Northern Line, there are 175 bridges with the total length of 3,794m. The steel bridges account for 64% of the total bridge length. In addition, there are totally 276 either box or pipe culverts exist along the Northern Line.

On the Southern Line, totally there are 97 bridges and 488 culverts. The entire length of the whole bridges on this line is 3,371m. Most of the bridges on the Southern Line are of concrete structure and it accounts for 75% of the total bridge length.

The existing box and pipe culverts along the railway lines mostly have a double function. They act as the drainage system for discharging water to prevent water from flooding the railway embankment and as well as irrigation system for the farmers to irrigate the rice fields. The summary of types and quantities of civil structures is shown in Table 3.2.3.

Table 3.2.3 – Types and Numbers of Structures by Railway Line Northern Line Southern Line Phnom Penh – Poipet Phnom Penh – Sihanoukville Type of Structure 384.3km 262.6km Number Total Length (m) Number Total Length (m) Steel Bridge 93 2,410 7 819 Concrete Bridge 82 1,384 90 2,552 Total 175 3,794 97 3,371 Box or Pipe Culvert 276 - 488 -

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3.2.2 Present Conditions of Bridges and Culverts

3.2.2.1 General

There are a large number and a variety of bridges and drainage structures on the Northern and Southern Lines. In general the majority are in poor condition. On the Northern Line, most of the bridges were damaged by explosives during the various periods of war or insurgency. On the Southern Line, in addition to the damages caused by explosives, many of them are harmed by flood water and are corroded by the sea water. Moreover, the deterioration is accelerating due to a lack of regular maintenance.

3.2.2.2 Previous Rehabilitation Projects to the Railway Bridges and Culverts

There are only two major rehabilitation projects using the funding resources from Asian Development Bank, which were carried out in the past 13 years.

The first one is the Special Rehabilitation Assistance Project. This project was funded for the emergency rehabilitation to the road systems, railway and ports. As part of this project, the rehabilitation of track sections on the Southern and Northern lines along with the reconstruction and rehabilitation of bridges and culverts on both lines, repair to the railway wagons and renovation of Phnom Penh terminal station were implemented in the years 1994-95.

The other rehabilitation works were carried out under the auspices of the Emergency Flood Rehabilitation Project (EFRP) that was launched for the emergency repair of the transport infrastructure including the road network and railway damaged causing by flood. The works comprised of reconstruction of sections of the track on the Northern Line, rehabilitation of three bridges and drainage system on the Southern Line. The works were carried out in between the years of 2001 and 2003.

Totally, there are 4 bridges on the Southern Line and 13 on the Northern Line had been repaired in the previous ADB projects. Moreover, only 7 culverts on the Southern Line were rehabilitated.

Table 3.2.4 – Summary List of Major Railway Rehabilitation and Improvement Projects

No Project Name Start Year End Year Remarks

1 Special Rehabilitation 1993 1995 Emergency rehabilitation to the track Assistance Project, sections in both lines, bridges and Project Implementation in drainage systems along those lines, Transport Sector, ADB repair to wagons and renovation of Loan No 1199-CAM Phnom Penh rail terminal station

2. Emergency Flood 2001 2003 Emergency rehabilitation of the 35 Rehabilitation Project, km of the track sections on the ADB Loan No 1824- Northern Line, bridges and drainage CAM(SF) systems along Southern Line near Sihanoukville.

(1) Special Rehabilitation Assistance Project, Project Implementation in Transport Sector, ADB Loan No 1199-CAM

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The bridges and culverts were rehabilitated under the Special Rehabilitation Projects during the years of 1993 – 95, which are shown in Tables 3.2.5 and 3.2.6 below for the Southern and for the Northern Lines respectively:

Table 3.2.5 – Summary List of rehabilitated bridges and culverts on the Southern Line

No Location Type of Structure Remarks 1 25.249 Culvert 2 25.404 Culvert 3 25.529 Culvert 4 25.601 Culvert 5 23.643 Bridge 6 111.900 Culvert 7 119.600 Culvert 8 185.575 Bridge 9 190.900 Bridge 10 205.087 Bridge 11 208.917 Bridge 12 223.396 Bridge 13 224.038 Bridge 14 224.440 Bridge 15 225.030 Bridge 16 255.104 Bridge 17 56.300 Box culvert

Table 3.2.6 – Reconstruction of bridges on the Northern Line

No Location Type of Works Remarks 1 163.989 Repaired concrete abutment and damaged steel 2 198.200 65.4m long steel bridge at Svay Don Keo 3 200.204 15m long steel bridge at Svay Don Keo Partly done 4 261.483 50m long steel bridge south of Battambang Partly done

(2) Emergency Flood Rehabilitation Project (EFRP), ADB Loan No 1824-CAM(SF)

Table 3.2.7 shows the rehabilitation of damaged railway bridges that were implemented during the years of 2001 – 2003 under the Emergency Rehabilitation Project.

Table 3.2.7 – Summary of bridges repaired under the EFRP

No Location Type of Structures Remarks 1 25.300 Bridge Southern Line 2 162.029 Bridge Southern Line 3 168.519 Bridge Southern Line

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3.2.2.3 Classification of Structural Condition

The inventory data incorporates all bridges, box culverts and pipe culverts and it has been compiled with the data collected from field inspections based on the existing information from RRC’s inventory list. The detailed inventory of the existing structures along both railway lines is included in Appendix 5 Structure Condition Survey Report of this Report.

The structural condition survey was carried out on both Southern and Northern Lines for the purpose of identifying the existing structures including bridges and culverts at the whole sites. Field surveys were conducted on both railway lines from February to April 2006.

Although major of bridges and culverts were carefully inspected, the inspection of the Missing Link between Sisophon and Poipet was very limited because of the current danger from unexploded ordnance (UXO). Therefore, the majority of data relating to bridges and culverts in the Missing Link is historical data originating from RCC and has not been updated.

In the field survey, it is envisaged that there would be unexploded ordnance including Anti-Personnel or Anti-Vehicle minefields within the vicinity of the railway routes especially in the heavy fighting areas during the three decades of Civil War in Cambodia. Furthermore, the mines are still believed to be positioned in strategic locations, like bridges, box culverts, particularly below the bridge structure and its surrounding area. This potential danger shall be cleared before any reconstruction works can be carried out.

During the inspection, condition rating including identifying types of damages and defects to the structures also has been implemented. A full survey has been carried out at each bridge location, in particular, abutments, piers, wing walls, and girders in order to identify and record cracks, defects, or damages to determine the extent of the damage and to plan the most appropriate and cost effective repair and reconstruction method.

Based on the survey results, the information and conditions of each bridge are recorded in the Bridge Data Sheet. And conditions of each culvert are summarized in the culvert list. (Please refer to Appendix 5 Structure Condition Survey Report)

Each bridge data sheet includes the following information;

• Location of bridge (PK: distance from Phnom Penh station) • Bridge type • Span length • Bridge length • Bridge conditions (girder, abutment, pier, wing wall) • Recent photography • Recommendation on the rehabilitation works

The culvert lists give the following information;

• Location of culverts (PK: distance from Phnom Penh station) • Culvert type • Number of openings • Dimension • Recommended rehabilitation works

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Based on an examination of the information obtained from the site inspections and incorporated in the detailed inventory, the conditions of bridges and culverts are categorized as follows:

a) Sound Condition Structures that are currently in a good condition and do not pose any risk to train operation.

b) Complete Reconstruction Structures that their superstructures and sub-structures have either been completely destroyed or in a very critical condition. In addition, those bridges, which have been restored with temporary wooden sleeper support and rail girders to enable train operation, require to be reconstructed. Completely destroyed culvers are also included in this category.

c) Major Repair Structures that the long-term serviceability can be economically achieved by carrying out the major repair instead of reconstruction of the entire structure. That is to say, structures that are not as deteriorated as the ones needing complete reconstruction but still require major repairs.

d) Minor Repair Structures that require small repairs such as repairing of steel bridges and rearing cracks on the superficial area etc.

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Figure 3.2.1 – Sound Condition – PK130+559, Southern Line

Figure 3.2.2 – Complete Reconstruction – PK259+741, Northern Line

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Figure 3.2.3 – Major Repair – PK222+314, Northern Line

Figure 3.2.4 – Minor Repair – PK307+892, Northern Line

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The completed bridge data sheets and inventories of all bridges and culverts including their conditions and engineer’s recommendations are compiled in Appendix 5 Structure Condition Survey Report. Table 3.2.8 summarizes contents of Appendix 5.

Table 3.2.8 – Contents of Appendix 5 Structure Condition Survey Report

Southern Line Number of Structures Number of Pages S Bridge Data Sheets 66 66 SB Summary of Bridge Data 97 5 SC Culvert List 491 13

Northern Line and Sisophon – Poipet

N Bridge Data Sheets 102 102 NB Summary of Bridge Data 175 8 NC Culvert List 277 9

3.2.2.4 Conditions of Existing Structures on the Northern Line

Many of the bridges and culverts on the Northern Line have been destroyed by explosives. They were restored temporarily using rails put together as girders supported by the wooden sleepers. All these structures need to be replaced. The condition is especially grave in the Pursat – Battambang section. Some bridges have been repaired, and others are still in a damaged or neglected condition and a few of these are technically dangerous.

Heaped stones, which are used for reinforcing abutments or supporting temporary rail girders in the river bed, narrow the cross-section of river. In the rainy season water flows passing over tracks often occur in this type of bridges, which washes away a part of embankment. Therefore, all this type of temporary restored bridges shall be replaced with the new one.

As for bridges with a part of their abutments or piers destroyed, only the damaged parts will be repaired in stead of complete reconstruction. The truss bridges (T-Type) and steel beam bridges (J-Type) that are rusted need repainting.

It is alleged that some bridges are still at risk from explosives, which are thought to be buried around the supporting structures. This potential danger will have to be eliminated before any repair works can be started.

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Figure 3.2.5 – Temporary Rail Girders Supported by Wooden Sleepers (Northern Line, PK 200+204)

The following are typical damages of steel bridges excluding completely destroyed ones;

Abutments and piers were damaged by explosives Steel members near bearing were damaged by explosives Many steel bridges are rusted because of total lack of

The following are typical damages of concrete bridges;

Concrete girders were damaged by explosives Abutments and piers were damaged by explosives Structural cracks and superficial damage are found in many concrete bridges

3.2.2.5 Conditions of Existing Structures on the Southern Line

Compared to the Northern Line, structures of the Southern Line are in a relatively good condition. However, many bridges between Kampot and Sihanoukville have weakened foundation piles. These piles are steel pipes filled with reinforced concrete. Due to their proximity to the sea, however, sea salt has corroded the steel pipes and undermined its supporting force. For this reason, reinforcement works are urgently needed.

Many of the steel truss bridges and steel girder bridges are rusted by salt from the sea. Repainting of steel bridge has not been carried out for a fairly long time. In addition to this, corrosions are not observed in the main members of steel bridge, but auxiliary members of steel bridges are corroded in many bridges. These corroded members shall be replaced.

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In some bridges in the Southern Line there is no wing wall. In these bridges there are vertical gaps between wing wall and embankment.

Figure 3.2.6 – Corroded steel pipe piles supported by temporary wooden sleepers (Southern Line, PK 191+844,70)

The following are typical damages of steel bridges;

Steel piles are corroded by sea water Many steel bridges are rusted because of total lack of repainting

The following is typical damages of concrete bridges;

Structural cracks and superficial damage are found in many concrete bridges

3.2.2.6 The Missing Link from Sisophon to Poipet

It is impossible to inspect bridges and culverts in this section since danger of landmine still exists. However, the observation on particular locations indicated that the existing structures are in fair condition and can be used after carrying minor repair.

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3.2.2.7 Quantities of Rehabilitation Works in the Southern Line

Table 3.2.9 summarizes bridge condition in the Southern Line. There is no complete reconstruction of bridges in this line. The major repair works of bridges are to reinforce corroded steel piles at four bridges.

Table 3.2.9 – Bridge Condition on the Southern Line Condition Steel Bridge Concrete Bridge Number Length (m) Number Length (m) Sound 3 198 72 1,866 Complete Reconstruction 0 0 0 0 Major Repair 2 432 2 104 Minor Repair 2 189 16 583 Total 7 819 90 2,553

3.2.2.8 Quantities of Rehabilitation Works in the Northern Line

Table 3.2.10 summarizes bridge condition on the Northern Line. There are 18 steel bridges and 14 concrete bridges to be completely reconstructed, the total length of which is 593m. Most of them are damaged by explosives and are restored temporarily by using rail girders supported by wooden sleepers. In addition to bridges for complete reconstruction, major rehabilitation works are required.

Table 3.2.10 – Bridge Condition in the Northern Line Condition Steel Bridge Concrete Bridge Number Length (m) Number Length (m) Phnom Penh – Sisophon Sound 30 642 48 772 Complete Reconstruction 18 382 14 211 Major Repair 11 296 1 21 Minor Repair 2 1,026 13 240 Missing Link 2 78 6 123 Total 93 2,424 82 1,367

3.2.3 Present Condition of Culverts

Box culverts and pipe culverts are found on the Northern Line and the Southern Line. Many culverts had been blasted by explosives, especially on the Northern Line, and destroyed by floods. The sites of these culverts have been reclaimed with stones and temporary rail girders have been installed to continue train operation. In these sections, the speed and maximum axle load of trains are restricted due to the lesser strength of the structures. Furthermore, these sections cause the water level of the upper stream to rise, resulting in damage to the embankment. Therefore, this type of culverts shall be constructed anew or be repaired.

The below pictures show the damages and conditions of the culverts. Figure 3.2.7 and Figure 3.2.8 show damaged pipe culverts and a blocked box culvert respectively. In addition to these damages, many culverts have been destroyed.

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Figure 3.2.7 – Damaged pipe culvert

Figure 3.2.8 – Blocked box culvert

A field survey of the culverts on the Northern Line and the Southern Line was conducted. The conditions of the culverts were different from those of the bridges. The culverts were either destroyed completely or required only slight repairs. For this reason, the culverts conditions have been classified into three categories: the ones requiring complete reconstruction, the ones requiring minor repairs, and the ones in sound condition.

a) Complete Reconstruction

The culverts are either destroyed or are in an extremely deteriorated state. These culvert sections have been restored with temporary support and girders to enable train operation. Such culverts require complete reconstruction.

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b) Repair

Some culverts require only small repairs.

c) Sound Condition

Culverts, in their current state, do not pose any risk to the train operation.

Table 3.2.11 and Table 3.2.12 show lists of culverts for complete reconstruction and repair on the Southern Line and on the Northern Line.

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Table 3.2.11 – List of Rehabilitation of Culverts on the Southern Line

Type of Culvert Observation Dimension No of Rows No of Culverts Remarks

Pipe Culvert Complete Reconstruction D = 0.8 1 3 20 30

D = 1.00 1 10 25 30 41

D = 1.50 1 7 23 32

D = 2.00 1 1 20 30

Repair D = 0.80 1 3 20 30

D = 1.00 1 2 22 30

D = 1.50 1 0 20 31

Total PC 40

Box Culverts Complete Reconstruction D = 1.50 1 1 20 30

D = 2.00 1 1 20 31

D = 4.00 1 2 20 30

Repair D = 1.50 1 1 20 30

D = 4.00 1 3 20 30

Total BC 9

Total : 49

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Table 3.2.12 – List of Rehabilitation Culverts on the Northern Line

Type of Culvert Observation Dimension No of Rows No of Culverts Remarks

Pipe Culvert Complete Reconstruction D = 0.5 1 0 21 30

D = 0.8 1 8 21 30 Blank 1

D = 1.00 1 24 24 31

D = 1.30 1 13 24 30

D = 1.50 1 0 20 30

D = 1.80 1 0 20 30

D = 2.00 1 0 20 30

D = Blank Blank 6

Repair D = 1.00 1 0 21 30

D = 1.30 1 1 21 30 Total PC 66

Box Culverts Complete Reconstruction D = 1.30 1 1 20 30

D = 1.50 1 0 23 30

D = 2.00 1 2 24 30

D = Blank 4

Repair 0

Total BC 14

Total : 80

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As previously mentioned, the existing culverts along the railway lines mostly have a double function. They act as the drainage system for discharging water to prevent water from flooding the railway embankment and as well as irrigation system for the farmers to irrigate the rice fields.

In the section between Pursat and Battambang on the Northern Line runs parallel to the National Road No 5 (NR5), which was rehabilitated using ADB loan in the year of 2004 and the formation level of which was raised. Therefore, hydrological analysis was carried out whether additional culverts are necessary. In the result a present number of culverts including completely damaged one are sufficient to avoid flooding the railway embankment if all the rehabilitation works of culverts are carried out.

Table 3.2.13 summarizes the conditions of culverts. 77 culverts on the Northern Line and 37 on the Southern Line have been destroyed and need complete reconstruction.

Table 3.2.13 – Conditions of Culverts Condition Southern Line Northern Line

Complete Reconstruction 37 77

Repair 12 3

Total 49 80

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3.3 HYDROLOGICAL CONDITIONS

3.3.1 Climate

The alternating monsoon system controls the climate in Cambodia. The wet season, the southwest monsoon, is from May to November when about 90% of the rainfall occurs. The remaining months, the northeast monsoon, are hot, dry and less humid with particularly high potential transpiration demands in March and April. The chain the Elephant and the Cardamom mountain ranges to the west and southwest of the country modify the rainfall observed in the lowland area to the east that lies in their rain shadow.

The delta and coastal region and south western slopes of the Cardamom Mountains receives at least 3,000 mm/year, and possibly well over 4,000 mm/year in some area, but the carry over of wet conditions to the northeast facing slopes is completely unknown and an amount of 1,300 mm to 1,000 mm is more typical of the low land to the east.

The strong influence of the Cardamom and other mountain areas exert are factors in the much lower 900 to 1,800 mm of rain over most of the low land areas during normal years. This is because of the rain shadow effect. Several areas around the Great Lake suffer from persistent rain-shadow effects, which reduce the rainfall over the same area to the range: 800 to 1,500mm in dry year. During these dry years, the area suffering from rain-shadow effects broadens from small areas either side of the Great Lake, to extend over the whole lake and peripheral low land areas. The maximum 24 hour rainfall is about 200 mm throughout the region. This is mostly convective rainfall. Occasionally a typhoon from the South China Sea or Gulf of Thailand might cross over land and affect the country. When this happens these storms bring strong wind and torrential rain.

In the North West of Cambodia and around the Great Lake, on average the rainfall pattern month on month has two peaks periods. The first peak occurs at the beginning of the wet season between May and June as the monsoon rains move north. There is then a period of lower rainfall between June and August whilst the monsoon returns south during August through October and it is at this time that rainfall is usually most heavy and when widespread flooding occurs.

Within this bimodal pattern, substantial rainfall variability often results in serious difficulties for rice farmers during the first few months of the wet season, when rainfall is most erratic, and early season droughts are common. In addition to the main dry season of January to March or April, and prior to the wettest period of end –August to end November , there is a small dry season (July and/or early August), when dry spells or only light showers occur. Short droughts typically last for about 15 days, but occasionally last up to 60 days after the first monsoon rains. The cessation of heavy rain at the end of the wet season can also be very abrupt and somewhat unpredictable. The Table 1 provides daily rainfall availability at selected stations along both railway lines. The rainfall at Battambang , Sisophon were not retained for rainfall intensity computation due to numerous gaps in the time series. Daily temperature varies between maximum of 36o C, during the hottest months of April and May, to 27oC in January the coldest month. Daily minimum temperature varies between 8oC to 11oC below the daily maximum.

Table 3.3.1 - Selected rainfall station for drainage capacity computation

Station N Station name Latitude Longitude Altitude (m) Years of Observation Remarks code Gaps in 1987, 88, 1987 – 1996 1 130202 Sisophon 13:36:52N 102:58:13E 16.00 90, 91, 94, 95, 2000 - 2002 2000 1981 – 1995 Gaps in 1992, 2 130305 Battambang 13:06:00N 103:12:00E 18.00 2000 - 2002 2000 3 120302 Pursat 12 33'N 103 54' E 18m 1981 - 2003 Gaps in 1986, 87, 4 120401 Kompong Chhnang 12:14:28N 104:40:00E 6.00 1982 - 2002 89, 92, 93 , 94 ,

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Station N Station name Latitude Longitude Altitude (m) Years of Observation Remarks code 95 Gaps in 2005 5 110425 Pochentong 11:33:00N 104:55:00E 10.00 1981 - 2005 (last 3 months) 1982 – 1994 Gaps in 1982, 6 110404 Kampong Speu 11 20’ 38N 104 03’ 20E 34 m 1996 - 2005 2005 Gaps in 1982, 83, 7 100408 Takeo 10:59:00N 104:48:00E 6.00 1982 - 2000 Doubt in 1984, 86, 87, 88, 90 ?? 1982 – 1994 8 100401 Kampot 10:37:00N 104:13:00E 1.00 Gaps in 1982, 87 2001 -2004 9 100303 Sihanouk Ville 10:38:00N 103:29:00E 13.00 1991 -2003

3.3.2 Hydrology

The area crossing by the northern railway line is dominated by the regime of the Great Lake, its major tributaries and the Mekong River systems. Exceptional floods in the Mekong back up flood water deep inland though major tributaries and inundated flood plain of the Great Lake and its periphery. Report of flood water overtopping the railway embankments coincides with extreme flood conditions in the Mekong and in the Great Lake e.g. 1978, 1996 and 2000, the Appendix 3.3.2 provides indicatives on flood magnitude and extent in the Tonle Sap Great Lake.

Heavy rainfall in the Great Lake sub-catchments occurs normally in September when the Lake water reaches its maximum level and tributaries flushing capacities are reducing.

Flows in most of the Great Lake tributaries are characterized by a few peaks of extreme flow per year, and last only a few days, a flash flood types, then afterward reducing rapidly to a few cubic meters per second in the dry season see hydrographs in Appendix 3.2 (Figure 6 to Figure 9); the Stung Sangker, Pursat and Mongkol Borey flood are typical in this flat region recent record (Pursat in2000 and 2003, Sangker in 1997, 2000, 2005, Mongkol Borey in 1997. Before connecting with the Great Lake all tributaries flow across their own flood plains; a relatively flat area prone to annual floods. In that areas river over bank flow and local sheet flow accumulate in high along roads and railway embankment concentrating at point where main drains such as culverts and bridges are located. Te drainage area serving by each structure in this region is not well defined.

Whereas the areas crossing by the southern lines the Prek Thnot has often caused heavy damages to infrastructures in the past, as an effect of isolated heavy rainfall such as in 1991, 1995 and 2000. Exceptional floods have been observed during the dry season in March 1922. Further to the south after Takeo, the rail approaches the coastal areas with increasing rainfall from annual amount of just above 1,200 mm per annum to above 1,800 mm at Kampot and above 3,000 mm per annum at Kamong Som. The Kampot town has experienced severe flood in 2000. Along the coast line, numerous small streams drain a rather well define catchments, with rather steep slope in the upper part and in the lower part flow is affected by tides.

The Appendix 3.4 provides field survey reports of bridges on the Northern and Southern lines with summary description of existing hydraulic conditions at each structure.

3.3.3 MPWT Design Standard

Hydrology when use to design bridges, culverts and highway drainage is concerned with the estimation of maximum and peak flows. It is a sub-subject often referred to as Flood Hydrology concerned exclusively with the runoff generated by large or intense rainfall.

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The Ministry of Public Works and transport (MPWT) have a design Standard for Drainage produced in 1999 with the assistance of AUSAID. However, this Standard is of relevance only for part of the water crossing structure only namely the part where stream catchments are well defined namely the areas between:

- Oudong and Pursat for the northern line - Some small streams between Touk Meas and Kampot, between Kampot and a place near to Veal Rinh and between Veal Rinh and Kampong Som for the southern line. The part where the line runs across the flood plains where catchments are not well defined, this method could not be used. Furthermore the Standard design states that little rainfall data exists, giving some guidance based on limited data from the centre of the country. This was not the case for this project for which could be based on newly collected data and some of the studies previously made in the country namely: the Flood Emergency Rehabilitation Project, National Road Components, the design report, August 2002 and the Design Procedures Structures and Drainage, NRDP, Version 1 July 2004.

3.3.4 Alternative to MPWT Design Standard

The foregoing discussion explains why alternative methods to the MPWT Standards were necessary.

The following methods were given for consideration:

1. Frequency analysis of continuous rainfall records from within the project area to derive rainfall- intensity-duration curves for different return periods. 2. Rainfall-Ratio method to derive from 24-hour rainfall records from within the project area rainfall intensity-duration curves for different return period. 3. Correlation with gauging sites with continuous rainfall record analysed by 1 above to calibrate rainfall-intensity-duration curves derived by method 2 for different return periods for sites with only 24 hours records. 4. For small catchments drainage to normal culverts the Rational Method (i.e. the MPWT method) to estimate discharge using the rainfall relationships from 1,2 or 3 above. 5. For larger catchments, and those drainage to bridges or large culverts the United States Soil Conservation Service Curve Number Method. 6. For large catchments and that drainage to bridges or large culverts a Generalized Tropical Model (GTFM) derived from the ORSTOM and TRRL methods. 7. For rivers where flow records are available, extreme value frequency analysis of peak annual discharge. 8. For rivers where no flow records are available, extreme value analysis of peak annual discharge for other rivers with records and similar hydrological characteristics to develop regional equations, which can be applied to the project rivers by flood transposition. 9. For rivers, Regime Theory to estimate order of magnitude of channel forming discharge.

The method to be considered are 1,2,3,4, and 6, the method 8 could use the Stung Sen river at Kampong Thom and Kampong Putrea which have long and most recent records (1982 to date).

The Pochentong autographic rain gauge data from 1980 to 1996 provide continuous rainfall records for method 1 and 3 and also to derive the indices appropriate to Cambodia from method 2.

The Rational Method (4) was originally developed for urban areas catchments drained by sewages system for which the basic assumptions of the method hold. The method can be applied to small catchments if they do not exceed o.4 km2, or 0.8km2 at the most. The consequences of applying the Rational Method to larger catchments, is to produce an overestimate of discharge and a conservative design. The method is nevertheless frequently used in standard or modified form for much larger

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highway catchments. This is because of it’s relatively simplicity, and that designer choose to ignore, or are ignorant to its limitations. For the case of the railway existing structures should be assessed and undue conservatism is not appropriate if it results in recommendations to unnecessarily upgrade a large number of culverts and bridges. However, the flat or much suppressed relief along the embankment means that most catchments are too large to apply this method (4) with confidence. It has nevertheless been used for those small discrete catchments that can be identified and for national catchments.

The limitation of the Rational Method requires a different approach for larger catchments, and those draining to bridge of major culverts. The best method is based on extreme value frequency analysis for flow data (7) but this requires a minimum of 25 years continuous records, only the Stung Sen, one of the Great Lake catchments has some 18 years of records or at most 22 years records. The alternative is to apply suitable Rainfall-Runoff type models. The Curve Number Methods (4) has been commonly used in part of Africa, Asia and elsewhere for this purpose. This is however considered an expedient rather than an ideal solution. The reason for that statement is that the method was developed for intermediate size North American agricultural catchments. To be reliable it requires careful selection of catchments characteristics, soil conditions, and land use and rainfall profiles. It is demanding to apply correctly and is not intended for application to large river catchments where the land use and soil characteristics will vary widely and cannot be accurately defined. The Generalised Flood Models (6) in contrast is relatively simple to apply. It is derived from the ORSTOM Method and TRRL Method. It has been developed and validated for Africa, especially in East Africa, but including regions with hydrological characteristics similar to Cambodia.

There method 7 has been used in Cambodia based on data from Thailand, though existing data are still limited, the method (8) still could be used by applying available data in the country. Recent studies of the Mekong River Commission applied simulation models to simulate flow for water balance studies of the Tonle sap Great Lake.

Regime Theory (9) is based upon the premise that the channel form is dictated by average flood discharge and therefore the channel form is indicative of discharge. It can be use as an additional means of calibrating and validating discharge estimates by checking whether the theoretical channel size matches the existing.

3.3.5 Rainfall Analysis

3.3.5.1 Frequency analysis

There are 17 years of autographic rain gauge data for Pochentong. The availability of 24-hour rainfall data for locations in the project area is relatively good with stations well distributed all along the railway line namely: Battambang, Pursat, Kampong Chhnang, Kampong Speu, Takeo, Kampot and Kampong Som and Sisophon. Continuous records lies between 15 to 20 years.

These set of data provide annual time series of recorded duration and fixed 24-hours duration suitable for extreme value frequency analysis (EVA). The conventional Gumbel Distribution will be used. It will not be necessary to apply the adjustments for short records proposed by Chow. In common with other extreme value distributions the Gumbel method employs a reduced variate to eliminate the skew and linearise the distribution so that standard linear regression techniques can be used to find the line of best fit of the relationship between storm rainfall and recurrence interval. The straight-line relationship can then with caution be extrapolated to predict the magnitude of longer recurrence interval events. The reduced variate is expressed:

loge {TI(T-1)} (1) YT = XT = -loge

Where: YT: is storm rainfall with a T years recurrence interval XT: is the reduced variate

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Once the relationship has been established it is possible to estimate rainfall for any recurrence interval by entering the approximate value XT.

The wet season in Cambodia extends from April to November peaking any time between August and September.

At Pochentong the now defunct autographic rain gauge was located adjacent to the 24-hour gauge and therefore was recording the same rainfall. The 24-hour autographic data was one of the durations analysed from the data set but was effectively repeated for the 24-hour gauge data set. However there is a difference in the results because the autographic record is for 17 years and the daily record for 21 years. This difference is expected and does not give rise to question the data.

The Kampot and Kampongsom data dedicated the highest rainfall totals and intensities. This is as expected for the coastal location and the end of the Elephant Range of mountains and it is well known that rainfall is higher in this part of Cambodia.

The Takeo data indicated the lowest totals and intensities. The data was poorer quality than the other three stations analysed but on scrutiny it was judged that the results were probably valid and that rainfall is indeed less at this location.

The differences between Kampot, Takeo and Phnom Penh, and other stations are sufficient to justify adopting several rainfall-intensity-duration curves for design.

3.3.5.2 Intensity duration equation

The relationship between rainfall intensity and duration is commonly expressed in the form:

I = a/(b+T)n (2)

Where I : Rainfall intensity (mm/hr) T: Duration (hr) a, b and n are constants

The first stage in developing this equation for a particular area involves fitting the data to the equation. This will be done by estimating rainfall intensities using extreme values analysis as described above. With data of Pochentong autographic records the Gumbel equation can be used and the rainfall intensity equation can be rewritten to plot the straight line:

Loge I = loge a –nloge (b+T) (3)

The optimum values of constants a, b and n can be found by entering values of Loge I and loge(b+T) into a linear regression equation that gives the closest fit to a straight line. The result was adopted from previous studies11 based on the Pochentong autographic data for return periods of 2.33, 10 and 50 years and the constants determined and shown in Table 2 below.

1 Flood Emergency Rehabilitation Project, National Road Component IDA Credit No. 3472 KH, Volume 3

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Table3.3.2 – Derived constants for Intensity Duration Equation

Return Period Regression Equation a b n 2.33 years 48 0.18 0.80 10 years 79 0.23 0.86 50 years 108 0.25 0.85

3.3.5.3 Time distribution of annual maximum 24-hours rainfall

The Rainfall Ratio Method allows rainfall, and therefore rainfall intensities of durations required for drainage design, to be estimated from 24-hour rainfall of a known frequency (return period) by applying the relationship

n n RRt = t/24 {b+24} /(b+t) } (4)

Where RRt: Rainfall ration Rt:R24 Rt: Rainfall in a given duration ‘t’ in hours R24: Rainfall in 24 hours n: constant b: constant t: time in hours

The constants are the same as the intensity duration equation. The rainfall Ratio Method compares rainfall depth which eliminates the ‘a’ constant which is the most difficult to predict. The dominant factor in the Rainfall Ratio equation is ‘n’; ‘b’ has a lesser effect particularly with regards to longer durations.

The Appendix 3.1 provides daily rainfall for all rainfall stations along both railway lines, the appendix 3.3.3 provides graphs of frequencies distribution of short duration rainfall for Pochentong station and 24 hours maximum distribution for selected stations.

3.3.5.4 Design rainfall-intensity-duration

The design rainfall-intensity-duration relationships are obtained directly from the time distribution of rainfall, simply by converting the rainfall during a given duration to rainfall intensity in millimeters per hour.

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Table 3.3.3 – Rainfall depth-intensity-duration relationship

Depth-Duration-Frequency and Intensity-Duration-Frequency at selected stations Pochentong Depth (mm) Intensity (mm/hr) D/TRRt2.3351025501002.335102550100 5min 0.18 15.453 18.72 21.42 24.84 27.36 29.88 185.44 224.64 257.04 298.08 328.32 358.56 10 min 0.24 20.604 24.96 28.56 33.12 36.48 39.84 123.62 149.76 171.36 198.72 218.88 239.04 15 min 0.3 25.755 31.2 35.7 41.4 45.6 49.8 103.02 124.8 142.8 165.6 182.4 199.2 30 min 0.42 36.057 43.68 49.98 57.96 63.84 69.72 72.114 87.36 99.96 115.92 127.68 139.44 1 h 0.54 46.359 56.16 64.26 74.52 82.08 89.64 46.359 56.16 64.26 74.52 82.08 89.64 2 h 0.65 55.803 67.6 77.35 89.7 98.8 107.9 27.901 33.8 38.675 44.85 49.4 53.95 4 h 0.75 64.388 78 89.25 103.5 114 124.5 16.097 19.5 22.313 25.875 28.5 31.125 8 h 0.84 72.114 87.36 99.96 115.92 127.68 139.44 9.0143 10.92 12.495 14.49 15.96 17.43 12 h 0.9 77.265 93.6 107.1 124.2 136.8 149.4 6.4388 7.8 8.925 10.35 11.4 12.45 18 h 0.96 82.416 99.84 114.24 132.48 145.92 159.36 4.5787 5.55 6.35 7.36 8.11 8.85 24 h 1 85.85 104 119 138 152 166 3.5771 4.33 4.96 5.75 6.33 6.92

Pursat Depth(mm) Intensity (mm/hr) D/TRRt2.3351025501002.335102550100 5min 0.18 16.488 20.88 24.48 28.98 32.04 35.64 197.86 250.56 293.76 347.76 384.48 427.68 10 min 0.24 21.984 27.84 32.64 38.64 42.72 47.52 131.9 167.04 195.84 231.84 256.32 285.12 15 min 0.3 27.48 34.8 40.8 48.3 53.4 59.4 109.92 139.2 163.2 193.2 213.6 237.6 30 min 0.42 38.472 48.72 57.12 67.62 74.76 83.16 76.944 97.44 114.24 135.24 149.52 166.32 1 h 0.54 49.464 62.64 73.44 86.94 96.12 106.92 49.464 62.64 73.44 86.94 96.12 106.92 2 h 0.65 59.54 75.4 88.4 104.65 115.7 128.7 29.77 37.7 44.2 52.325 57.85 64.35 4 h 0.75 68.7 87 102 120.75 133.5 148.5 17.175 21.75 25.5 30.188 33.375 37.125 8 h 0.84 76.944 97.44 114.24 135.24 149.52 166.32 9.618 12.18 14.28 16.905 18.69 20.79 12 h 0.9 82.44 104.4 122.4 144.9 160.2 178.2 6.412 8.12 9.52 11.27 12.46 13.86 18 h 0.96 87.936 111.36 130.56 154.56 170.88 190.08 4.89 6.19 7.25 8.59 9.49 10.56 24 h 1 91.6 116 136 161 178 198 3.82 4.83 5.67 6.71 7.42 8.25

Kampot Depth (mm) Intensity (mm/hr) D/TRRt2.3351025501002.335102550100 5min 0.18 18.0 22.0 25.2 29.3 32.3 35.3 216.54 263.93 302.53 351.30 387.50 423.40 10 min 0.24 24.1 29.3 33.6 39.0 43.1 47.0 144.36 175.95 201.69 234.20 258.34 282.27 15 min 0.3 30.1 36.7 42.0 48.8 53.8 58.8 120.30 146.63 168.07 195.17 215.28 235.22 30 min 0.42 42.1 51.3 58.8 68.3 75.3 82.3 84.21 102.64 117.65 136.62 150.70 164.66 1 h 0.54 54.1 66.0 75.6 87.8 96.9 105.9 54.14 65.98 75.63 87.83 96.88 105.85 2 h 0.65 65.2 79.4 91.0 105.7 116.6 127.4 32.58 39.71 45.52 52.86 58.31 63.71 4 h 0.75 75.2 91.6 105.0 122.0 134.6 147.0 18.80 22.91 26.26 30.50 33.64 36.75 8 h 0.84 84.2 102.6 117.7 136.6 150.7 164.7 10.53 12.83 14.71 17.08 18.84 20.58 12 h 0.9 90.2 110.0 126.1 146.4 161.5 176.4 7.02 8.55 9.80 11.38 12.56 13.72 18 h 0.96 96.2 117.3 134.5 156.1 172.2 188.2 5.35 6.52 7.47 8.67 9.57 10.45 24 h 1 100.3 122.2 140.1 162.6 179.4 196.0 4.18 5.09 5.84 6.78 7.48 8.17

Kampong Som Depth (mm) Intensity (mm/hr) D RRt 2.3351025501002.335102550100 5min 0.18 28.78 35.66 41.26 48.34 53.59 58.08 345.4 427.9 495.1 580.0 643.1 696.9 10 min 0.24 38.38 47.54 55.01 64.45 71.45 77.44 230.3 285.3 330.1 386.7 428.7 464.6 15 min 0.3 47.97 59.43 68.77 80.56 89.31 96.80 191.9 237.7 275.1 322.2 357.3 387.2 30 min 0.42 67.16 83.20 96.27 112.79 125.04 135.52 134.3 166.4 192.5 225.6 250.1 271.0 1 h 0.54 86.35 106.97 123.78 145.01 160.76 174.24 86.3 107.0 123.8 145.0 160.8 174.2 2 h 0.65 103.94 128.77 148.99 174.55 193.51 209.73 52.0 64.4 74.5 87.3 96.8 104.9 4 h 0.75 119.93 148.58 171.92 201.41 223.28 242.00 30.0 37.1 43.0 50.4 55.8 60.5 8 h 0.84 134.32 166.40 192.54 225.57 250.08 271.03 16.8 20.8 24.1 28.2 31.3 33.9 12 h 0.9 143.91 178.29 206.30 241.69 267.94 290.39 11.2 13.9 16.0 18.8 20.8 22.6 18 h 0.96 153.50 190.18 220.05 257.80 285.80 309.75 8.5 10.6 12.2 14.3 15.9 17.2 24 h 1 159.90 198.10 229.22 268.54 297.71 326.66 6.7 8.3 9.6 11.2 12.4 13.6

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Kampong Chhnang Depth (mm) Intensity (mm/hr) D RRt 2.33 5 10 25 50 100 2.33 5 10 25 50 100 5min 0.18 18.49 23.83 28.18 33.68 37.76 41.81 221.9 286.0 338.2 404.2 453.1 501.7 10 min 0.24 24.66 31.78 37.58 44.91 50.35 55.75 147.9 190.7 225.5 269.5 302.1 334.5 15 min 0.3 30.82 39.72 46.97 56.14 62.94 69.68 123.3 158.9 187.9 224.6 251.7 278.7 30 min 0.42 43.15 55.61 65.76 78.59 88.11 97.56 86.3 86.3 86.3 86.3 86.3 86.3 1 h 0.54 55.47 71.50 84.55 101.05 113.29 125.43 55.47 71.50 84.55 101.05 113.29 125.43 2 h 0.65 66.77 86.07 101.78 121.63 136.36 150.98 33.4 43.0 50.9 60.8 68.2 75.5 4 h 0.75 77.05 99.31 117.44 140.35 157.34 174.21 19.3 24.8 29.4 35.1 39.3 43.6 8 h 0.84 86.29 111.22 131.53 157.19 176.22 195.12 10.8 13.9 16.4 19.6 22.0 24.4 12 h 0.9 92.46 119.17 140.92 168.42 188.81 209.05 7.2 9.3 11.0 13.1 14.7 16.3 18 h 0.96 98.62 127.11 150.32 179.64 201.40 222.99 5.5 7.1 8.4 10.0 11.2 12.4 24 h 1 102.73 132.41 156.58 187.13 209.79 232.28 4.3 5.5 6.5 7.8 8.7 9.7

Kampong Speu Depth (mm) Intensity (mm/hr) D RRt 2.33 5 10 25 50 100 2.33 5 10 25 50 100 5min 0.18 13.93 16.33 18.28 20.74 22.56 24.38 167.2 195.9 219.3 248.9 270.8 292.6 10 min 0.24 18.58 21.77 24.37 27.65 30.09 32.51 111.5 130.6 146.2 165.9 180.5 195.0 15 min 0.3 23.22 27.21 30.46 34.56 37.61 40.63 92.9 108.8 121.8 138.3 150.4 162.5 30 min 0.42 32.51 38.09 42.64 48.39 52.65 56.88 65.0 76.2 85.3 96.8 105.3 113.8 1 h 0.54 41.80 48.98 54.83 62.21 67.69 73.14 41.8 49.0 54.8 62.2 67.7 73.1 2 h 0.65 50.31 58.96 65.99 74.89 81.48 88.04 25.2 29.5 33.0 37.4 40.7 44.0 4 h 0.75 58.05 68.03 76.15 86.41 94.02 101.58 14.5 17.0 19.0 21.6 23.5 25.4 8 h 0.84 65.02 76.19 85.29 96.78 105.30 113.77 8.1 9.5 10.7 12.1 13.2 14.2 12 h 0.9 69.66 81.63 91.38 103.69 112.82 121.90 5.4 6.3 7.1 8.1 8.8 9.5 18 h 0.96 74.30 87.07 97.47 110.60 120.35 130.02 4.1 4.8 5.4 6.1 6.7 7.2 24 h 1 77.40 90.70 101.53 115.21 125.36 135.44 3.2 3.8 4.2 4.8 5.2 5.6

Takeo Depth (mm) Intensity (mm/hr) D RRt 2.33 5 10 25 50 100 2.33 5 10 25 50 100 5min 0.18 13.99 16.88 19.24 22.21 24.42 26.61 167.92 202.59 230.84 266.52 293.00 319.27 10 min 0.24 18.66 22.51 25.65 29.61 32.56 35.47 111.95 135.06 153.89 177.68 195.34 212.85 15 min 0.3 23.32 28.14 32.06 37.02 40.70 44.34 93.29 112.55 128.24 148.07 162.78 177.37 30 min 0.42 32.65 39.39 44.89 51.82 56.97 62.08 65.30 78.78 89.77 103.65 113.95 124.16 1 h 0.54 41.98 50.65 57.71 66.63 73.25 79.82 41.98 50.65 57.71 66.63 73.25 79.82 2 h 0.65 50.53 60.96 69.47 80.20 88.17 96.08 25.27 30.48 34.73 40.10 44.09 48.04 4 h 0.75 58.31 70.34 80.15 92.54 101.74 110.86 14.58 17.59 20.04 23.14 25.43 27.71 8 h 0.84 65.30 78.78 89.77 103.65 113.95 124.16 8.16 9.85 11.22 12.96 14.24 15.52 12 h 0.9 69.97 84.41 96.18 111.05 122.09 133.03 5.44 6.57 7.48 8.64 9.50 10.35 18 h 0.96 74.63 90.04 102.60 118.45 130.22 141.90 4.15 5.00 5.70 6.58 7.23 7.88 24 h 1 77.74 93.79 106.87 123.39 135.65 147.81 3.24 3.91 4.45 5.14 5.65 6.16

3.3.6 The Rational Method

The rational method estimates peak discharge. It is based on the simplistic assumption that peak discharge occurs when the rainfall duration equals the time of concentration of the catchments, as expressed algebraically by the formula:

Qp = 0.277 x C x I x A x ARF (5)

3 Where Qp: is peak discharge in m /s 0.277: is a conversion constant to express discharge in the required units C: is the runoff coefficient I: is the rainfall intensity in mm/h during the time of concentration (Tc) A: is the catchments area in km2 ARF: is the areal reduction factor

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3.2.6.1 Time of Concentration (Tc)

Time of concentration has been determined from the Kirpich Formula

Tc = 0.0195 K0.77 (6)

Where K = L/(s)0.5 and s = H/L Tc: is time of concentration in minutes L: is maximum length of travel in m H: is difference between most remote point and outlet in m

3.3.6.1 Intensity of rainfall ‘I’

Intensity of rainfall ‘I’ in mm/h corresponding to the design return period and duration equal to ‘ Tc’ is read from the rainfall intensity -duration –frequency curves or established Table 3.3.3 above.

3.3.6.2 Runoff coefficient ‘C’

The run-off coefficient ‘C’ is selected by reference to values given in a form of table. The table could be found in the Cambodian Standard Road Design Part 3 – Drainage. A modified version to adapt to the Cambodian conditions could be found in Table 3.3.2.

The selection of the correct value of ‘C’ for application of the Rational Method always presents some difficulty. It is somewhat a ‘black box’ representing a whole range of land use, which can influence run-off, including: soil type, antecedent soil conditions, land use, vegetation and seasonal growth. Therefore, the value of ‘C’ can vary from one moment to another according to change, especially moisture conditions. Published value ‘C’ which are the base of the table 2 have been determined from experimental plot. In addition they assume the soil is saturated at the time the rainfall starts. This introduces an unknown factor of safety due to the fact that the soil is not always saturated when the rainfall commences. In humid region like Cambodia this is not usually significant.

3.3.6.3 Catchments Area ‘A’

The part where the rail crosses a suppressed relief and flat terrain presents a challenge for the determination of the catchments areas.

It is a special characteristic of the Cambodian lowland that during times of flood a road or railway embankments form a barrier to overland flow. Commonly the culvert and bridge opening are too small to pass all the flow and this causes head of water to build on the upstream side of the embankment and water to spread overland. Adjacent culverts and/or bridges then work together to pass water until the flood recede. Under these conditions it is not the catchments or topography that defines the hydraulic requirement for an individual cross drainage structure but the head water. Nevertheless some apportionment of catchments area must be made to individual structures in order to assign flows.

The best approach is to make a first estimate of the catchments area as described below, use this to estimate flow, and then consider whether the condition of the cross drainage structure is consistent with that flow, that is:

i). Does the structure have the appearance that it flows or flooded regularly, or is it blocked or overgrown? ii) Is there evidence of high flow volume or velocity, for example scour damage?

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iii) If there is scour damage is this because the flow at the structure is greater than estimated or is it because the structure is too small for the predicted flow so that exit velocity would cause scour in any case?

Table 3.3.4 – Watershed Characteristics

A B C D Relief Soil infiltration Vegetation cover Surface Storage 0.40 0.20 0.20 0.20 Steep rugged terrain No effective soil cover: No effective plant Negligible: surface with slope greater than either rock or thin Cover: bare or very depression. Drainage 30% mantle. Negligible sparse soil cover paths with steep banks infiltration capacity and small storage capacity. No ponds or marshes 0.30 0.15 0.15 0.15 Hilly with average slope Slow: to take up water, Poor to fair: clean Low: well defined of 10% to 30% or other soil of low cultivated crops or poor system of small drainage infiltration capacity, natural cover, less than paths, no ponds or flooded paddy field 10% of area under good marshes systems cover, flooded paddy file systems. 0.20 0.10 0.10 0.10 Rolling with average Normal: deep loam Fair to good: about 50% Normal: Considerable slopes of 6% to 10% cover in good grassland, surface depression. woodland or equivalent Storage typical of prairie cover. lands. Lakes ponds and marshes less than 20% of area. 0.01 To 0.10 0.05 0.05 0.05 Relatively flat land High: deep sand or other Good to excellent: about High: surface depression average sloes 0% to 5% soil that takes up water 50% of area in good storage capacity high. Slope 5% use 0.10 readily and rapidly grassland, woodland or Drainage system not Slope 4% use 0.08 equivalent cover. sharply defined, large Slope 3% use 0.04 flood plain storage, Slope 2% use 0.020 large number of ponds Slope 1% use 0.02 and marshes, therefore Slope 0.5% use 0.01 including paddy field systems.

If any of these tests indicated that the flow estimates was wrong the catchments area was reassessed and the process repeated.

3.3.7 Hydraulic Capacity

3.3.7.1 Design standards

The minimum design standards adopted for drainage design are set out in table below

Table 3.3.5 – Maximum design standard for bridge and culverts

Drainage Structure Type Design Storm/Flood Frequency Bridges > 6.0 m total span 1 in 50 years Bridges < 6.0 m total span and large culverts 1 in 25 years Small culverts (i.e. all other) 1 in 10 years Embankments 1 in 10 years Ditches and Road Surface 1 in 2 years

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These criteria are appropriate for new construction. However consideration should be carefully made for areas where problems have been reported for higher standard design. For rehabilitation it could be reasonable to consider to accept lower standards if cost is prohibitive. However in the flood plain since the line runs across agricultural land it should take crop damage also into consideration. In this case flood in the upstream as resulted from water level increase due to embankment should not last more than the critical duration of crop damage e.g. for rice, three days. It is advisable to adopt more cross drainage of smaller size so that it will also be beneficial to fish migration as well.

3.3.7.2 Culvert Hydraulic Capacity

Culvert hydraulics is a complex subject because flow is controlled by upstream and downstream water levels as well as the physical arrangement of the culvert.

For flat terrain there are two critical flow conditions under which culverts may operate as follows:

a) At the onset of a flood when the road embankment causes water to build on the upstream side of the culvert although the land downstream is not yet flooded but the depth of water downstream is such that it limits the flow rate so that the culvert operates under ‘outlet control’ , sometimes classified as ‘ Type F’ culvert flow. Hydraulically the following applies: • Culvert flows full; • Culvert slope does not determine discharge; • Flow control is wall friction and critical depth at outlet; • Culvert is hydraulically ‘ Long’ • Culvert inlet is submerged >1.5 times height of culvert; and • Culvert outlet is not submerged, downstream water depth

b) When water levels upstream and downstream are equalizing, or during subsequent rainfall during an ongoing flood the depth of water is such that is water ponding or backing-up from downstream submerging the culvert outlet, sometimes classified as ‘ Type E’ culvert flow. Hydraulically the following applies: • Culvert flows full; • Culvert slope does not determine discharge; • Flow control is wall friction and backwater from downstream; • Culverts are hydraulically ‘ Long’ • Culvert inlet is submerged; and • Culvert outlet is submerged. The flow capacity is about 20% greater under Type F flow than Type E flow. Other flow types could occur but only those critical for design must be considered.

It is necessary to decide which flow case to use for design. It is recommended that the Type F is appropriate because:

• It is the condition most likely to apply at the onset of a flood when flow capacity is most critical.

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• It is the most damaging flow case with potential for scour because flow at the outlet is super- critical.

3.3.7.3 The discharge equation

0.5 2g(d1+ Z − kd3) Q = A o{ } (7) (ko + kf +1

Where Q: discharge in m3/s A: culvert cross-section area in m2 g: acceleration due to gravity – 9.81 m2/s d1: depth upstream of culvert of culvert in m d3: depth downstream of culvert in m Z: Difference in inlet and outlet invert level, can be assumed = 0 for the assessment. K: A factor determined from model tests to be 0.75 for circular culverts and 0.65 for box culverts. K0: entry loss coefficient: • 0.5 for pipe culvert in vertical headwall without entrance routing • 0.30 for box culvert with vertical head wall and 30o to 60o wing walls

1 . 96 n 2 L

Kf= R 4 / 3 (8)

Where n: Manning’s ‘n’ L: culvert length in m R: Hydraulic radius

To permit calculation of Type F flow a general assumption has been made that at design flow the upstream water depth d1 is 1.5 x the diameter of pipe culverts and 0.5m the height of box culverts, this typically being the minimum design height of railway embankment.

The discharge equation use for ‘Type E’ outlet control is similar but Z and k are eliminated:

0.5 2 g ( d 1 − d 3 ) Q = Ao { ( ko + k 1 + 1 ) } (9)

To permit calculation of Type E flow a general assumption has to be made that the design flow head loss trough the culvert, d1-d3 is 100 mm.

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3.3.7.4 Bridge Hydraulic Capacity

Bridges are man made intrusion into a natural river system. Often the bridge disturbs the natural equilibrium of the river system and the river will react by attacking the bridge. In the more extreme cases the river will cause the bridge to fail and even wash it completely away. It is a sobering statistic that 60% to 70% of bridge failures are caused by rivers.

The key to safe, sustainable and environmentally sound bridge construction is for the design engineer to understand and provide for all the international processes at work within a river system including:

• Character, size, frequency and magnitude of river flood flows; • The process of sediment transport, evolution of channel cross-section, scour and soil deposition • How to make hydraulic calculations; • Differences between bridge types and location-whether the bridge has piers, crosses and an incised channel or flood plain, and whether there is flood plain flow, and • When and how to take measures to mitigate the effects of bridge on the river and protect the bridge and road from damage- river training works and scours protection.

All bridges along the railways seem suffers no damage from design inadequacy especially for large to medium rivers. Practically at all depression crossing, a water crossing structure was constructed, keeping well the natural flow almost unchanged.

The slope area method is the simplest way to determine capacity but is not very accurate for new bridge design a more detail hydraulic assessment is recommended. The flow volume through the bridge may be calculated from Manning‘s formula: 2/3 A A Q = n ()P s1/2 (10)

Where Q: Flow volume (m3/s) A: cross-section area of flow (m2) P: length of wetted perimeter (m) S: gradient of water surface or bed slope n: Manning’s ‘n’ representing the channel roughness

If the cross section is complex it can be divided into slices ant the total flow obtained by adding the flow calculated for each slice. This allows different values of roughness to be used, for example gabions for the banks, sand for the bed. However for the purposes of the project the cross section of all bridges has to be reduced to an equivalent rectangular section to simplify the embedded formula.

The most difficult parameter to determine is the gradient but this can be taken as the ground slope for this approximate. Doubling the gradient would increase calculated flow by a bout one third having the gradient reduce the flow by about one third.

3.3.7.5 Velocity

If velocity and depth of flow through a bridge are known it is a simple step to calculate the discharge by multiplying the cross-esctional area of flow by the velocity. Standard hydraulic text books always describe velocity measurements as key observation but in practice it is seldom possible to measure velocity at the peak of a flood, especially at small bridges in isolate region. It can however be useful for estimating gradient, which otherwise is the most difficult parameter to determine for calculation of velocity using Manning’s formula. Measurement of velocity during smaller floods will allow back computation of water surface gradient and this will not differ significantly from that at the height of the flood.

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Estimation by calculation-Manning’s formula.

The alternative to direct measurement is to estimate velocity using Manning’s formula 2/3 1 A V = n ()P s1/2 (10)

Where V: Velocity (m/s) A: cross-section area of flow (m2) P: length of wetted perimeter (m) S: gradient of water surface or bed slope n: Manning’s ‘n’ representing the channel roughness according to the table below

Table 3.3.6 – Values of Manning’s ‘n’

Surface Minimum Normal Maximum

Natural stream on plain 1. Clean, straight, full stage, no rift or deep 0.025 0.030 0.033 Pools 2. Same as 1, but more stones and weeds. 0.030 0.035 0.040 3. Clean, winding, some pools and shoals. 0.033 0.040 0.045 4. Same as 3, but some pools and stones. 0.035 0.045 0.050 5. Same as 3, lower stages, more ineffective 0.040 0.048 0.055 slopes and sections. 6. Same as 4, but more stone. 0.045 0.050 0.060 7. Sluggish reaches, weedy, deep pools. 0.050 0.070 0.080 8. Very weedy reaches, deep pools or floodways 0.075 0.100 0.150 with woodland and undergrowth.

Mountain streams, no vegetation in channel, banks usually steep, trees and brush along banks submerged at high stages. 1. Bottom: gravels, cobbles, and few boulders. 0.030 0.040 0.050 2. Bottom: cobbles, with large boulders. 0.040 0.040 0.070

Flood plains Grass land, few bushes 1. Short grass. 0.025 0.030 0.035 2. Tall grass. 0.030 0.035 0.030

Cultivated area 1. No crops 0.020 0.030 0.040 2. Mature row crops 0.035 0.035 0.045 3. Mature field crops 0.030 0.040 0.050

Scrub, bush, fallow land. 1. Scattered bushes, heavy weeds 0.035 0.050 0.070 2. Light bushes and trees in dry season 0.035 0.050 0.060 3. Light bushes and trees in wet season 0.040 0.060 0.080 4. Medium to dense bush, in dry season 0.045 0.070 0.110 5. Medium to dense bush, in wet season 0.070 0.10 0.160

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Table 3.3.6 – Values of Manning’s ‘n’ (Cont.)

Surface Minimum Normal Maximum

Trees 1. Dense trees 0.110 0.150 0.200 2. Cleared land with tree stumps, not sprouting. 0.030 0.040 0.050 3. Same as 2 but, heavy growth of sprouts. 0.050 0.060 0.080 4. Heavy stand of timber, little undergrowth, 0.080 0.100 0.120 flood level below branches. 5. Same as 4, but with flood water reaching 0.100 0.120 0.160 branches. 6. Large rivers (>30m wide). The n value is less than that for natural streams of similar description because the banks offers proportionally less resistance to flow. 1. Regular section with no boulders or brush 0.025 …… 0.060 2. Irregular and rough section. 0.035 …… 0.100 Excavated or dredged channels Earth, straight and uniform. 1. Clean, recently completed. 0.016 0.018 0.020 2. Clean after weathering. 0.018 0.022 0.025 3. Gravel, uniform section, clean 0.022 0.025 0.030 4. With short grass, few weeds. 0.022 0.027 0.033 Earth, winding and sluggish. 1. No vegetation. 0.023 0.025 0.030 2. Grass, some weeds. 0.025 0.030 0.035 3. Dense weeds or aquatic plants in 0.030 0.035 0.040 deep channels. 4. Earth bottom with rubble sides. 0.028 0.030 0.035 5. Stony bottom and weedy banks. 0.025 0.035 0.040 6. Cobble bottom and clean sides. 0.030 0.040 0.050 Dragline-excavated or dredged. 1. No vegetation. 0.025 0.028 0.033 2. Light brush on banks. 0.035 0.050 0.060 Rock cuts 1. Smooth and uniform. 0.025 0.035 0.040 2. Jagged and irregular. 0.035 0.040 0.050 Channels not maintained, weeds and brush Uncut 1. Dense weeds, high as flow depth. 0.050 0.080 0.120 2. Clean bottom, bushes on sides. 0.040 0.050 0.080 3. Same as 2, highest stage of flow. 0.045 0.070 0.110 4. Dense bushes, high stage. 0.080 0.100 0.140

Deciding the hydraulic gradient

Often the most difficult parameter to determine is the gradient, Effective gradients of the order of 0.0002 to 0.001 (0.02% to 0.1%) are appropriate as initial estimate for flood plain in Cambodia. The sensitivity to hydraulic gradient can be significant, for example doubling a gradient of 0.001 gradient would increase calculated flow by about one third, having the gradient reduces the flow by one third.

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3.3.7.6 Drainage Requirement

The design process has required detailed assessment of the condition and requirements for every cross structure of the railway embankment. Detail calculation should be tabulated.

Drainage inventory and bridges required more detailed inspection than culverts. Each individual bridge should be viewed in the light to their contribution to the overall hydraulic regime and whether deficiencies were a contributory to flood damage. The inspection has to focus on hydraulic aspect including the visual structural assessment because the aspects could not be separated from the decision making process. The inspection record sheet should be established.

3.3.7.7 Differential flood levels across road and railway embankment

Generally the railway embankment and roads run across flood plain or very gentle slope or flat land. During heavy rainfall or during floods water flow is not confined to watercourses and canals but spread over the land flowing towards the Great Lake direction for the northern line and partly towards the Bassac and the Golf of Thailand for the southern line. The railway and the road embankment obstruct this flow, which is then concentrated at a limited number of bridges and culverts. Commonly the bridges and particularly the culverts can not pass all the flow that arrive at the inlet and this cause water to pond (go into storage) on the upstream side of the embankment whilst water levels downstream remain low. The situation is the same as a dam and reservoir with the bridge and culverts acting as flow regulators.

Eventually water levels upstream and downstream will equalize, as the force of the flood recedes and the cumulated volume passed by the bridges and culverts reduces the volume stored upstream. Nevertheless, depending on the size of the bridges and culverts, the differential head condition may persist for several days and recur repeatedly during the heaviest months of the wet season.

In extreme case the water level can rise until it overtops and ultimately breaches the embankment under which conditions bridges and culverts may also fail. These were the conditions that occurred in the Mekong floodplain during the 2000 Flood and again to a lesser extent during 2001 Flood especially for road embankments

There are two significant points to be considered:

a) Although a bridge or culvert may be too small to pass the design flow (say 1 in 50, 25 or 10 years recurrence interval) the consequence might only be more prolonged and extensive flooding upstream. If this acceptable and the bridge or culvert is otherwise satisfactory, then there is no need to upgrade the structures. b) There is an environmental impact in as much as flooding upstream lasts longer and is greater of depth and extent than would occur if there was no road or railway embankment. The impact will be negative if it floods dwelling but is more likely to positive if it helps irrigated fields

3.3.7.8 Scour

Scour is the erosion of soil by high velocity and high-energy flow. It is the cause of most bridge and culverts failures. An international survey in the 1980’s found that 70% to 80% of bridge failures were due to scour, and the survey included bridge not over water.

Scour occurs when water accelerates to enter a bridge or culvert and where the high velocity flow exits on the downstream side. Scour damage and failures are common throughout Cambodia because of the extreme flood conditions that occur. There are several modes of scour failure but the most common on the roads and railway embankment is scour at culvert and bridges outlets. At culverts there are numerous examples of failed outlet headwalls and dislocated pipe barrels.

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Scour generally occurs when water levels upstream of the embankment are higher than that downstream. A high exit velocity of water exits the bridge or culvert and forms scour hole to dissipate the excess energy. The project soil will be eroded at flow velocities above 1.5 m/s but under design conditions flow velocity at most structures are at least 3 m/s.

3.3.7.9 Condition of Pipe Culverts

Many of the pipe culvert barrels are heavily worn with significant loss of fines. This the symptom of high velocities probably compounded by low quality pipes.

Piping failure

When pipe joints are poor, or have opened up because of dislocation due to scour or settlement, water flowing through a culvert will suck away backfill leading to settlement or piping failure. The case is very common in the southern line.

3.3.7.10 Canals and structures built during the DK Period

During the DK (Democratic Kampuchea) Period (1975 to 1979) many irrigation canals were dug and regulating structures built. The canal systems were fed from rivers, diversion structures or existing irrigation systems. Canals were generally laid out on an approximation north-south and west-east grid with tertiary canals at one- kilometre intervals

The canals cross the project roads at bridges and culverts although there are instances where they are not aligned. It appears that existing bridges and culverts were used wherever possible and these were sometimes modified. In other instances purpose built structure exist. It is clear that little consideration was given to require capacity, and particularly in relation to flow diversion and catchments transfer under flood conditions. The consequences are evident from some of the flood damage.

3.3.8 Hydrology and Hydraulic Computation

3.3.8.1 Hydrological data

3.3.8.1.1 The Mekong and the Great Lake

The Mekong flow contributes to the Great Lake annual fluctuation in volume and flooded areas. The Stung Treng Hydrological station has the longest period of records (1910-2005). The table 7 provides time series of annual maximum flood peaks with respective annual runoff. The figure 1 below shows the frequency distribution of the peak discharge flow at Stung Treng in comparison with the average, the 2005 flood and other characteristic years namely the 2000, 2001, 1939). The peak discharge of the 2005 at stung Treng is just above the limit of 75% non exceeding value and could be considered as the upper limit of the mean year. The 2000 flood has the biggest flood volume recorded during the 96 years of observation.

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Flood Peaks and Flow Characteristics of the Mekong at Stung Treng (1910-2005)

6E+11 2000 2001 1939 5E+11

2003 2005

4E+11 Average

1988 3E+11 1998

Annual runoff in m3Annual runoff 52782 54615 59355 53686 64465 44467 40485 46572 58591 67687 56259 43805 53233 74327 64367 56074 2E+11 59833 55149 52252 65441 58973 47681 50928 62513 57554 48634 57554 69347 56352 77159 69835 58877 61553 59451 53868 56907 57277 52693 63976 53505 61075 61553 57741 54049 55519 34948 51193 48022

1E+11 62513 44467 56814 62610 52961 54140 57929 37871 58495 45295 58022 45047 49781 42894 51105 43557 57835 51370 46146 47340 66222 53051 50222 54049 51546 40010 58973 43391 42729 49340 31287 38584 50046 63293 41040 38980 55611 55426 69249 65734 32507 52429 62319 67101 62805 50487 50664 55519

0 0 10000 20000 30000 40000 50000 60000 70000 80000 90000 Annual peak discharge (m3/s) Figure 3.3.1 – Annual Flood volume and peak discharge of the Mekong at Stung Treng

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Table 3.3. 7 – Annual Flood peak discharge and runoff on the Mekong at Stung Treng

THE MEKONG AT STUNG TRENG FLOOD PEAK DISCHARGE & ANNUAL RUNOFF Qmax. Runoff Qmax. Runoff Year Year m3/s x109 m3 m3/s x109 m3 1910 52782 403.863 1958 62513 375.400 1911 54615 417.748 1959 44467 338.201 1912 59355 368.486 1960 56814 401.773 1913 53686 402.905 1961 62610 520.775 1914 64465 422.175 1962 52961 432.386 1915 44467 380.616 1963 54140 410.590 1916 40485 370.314 1964 57929 410.960 1917 46572 412.067 1965 37871 381.085 1918 58591 497.611 1966 58495 452.555 1919 67687 425.022 1967 45295 367.357 1920 56259 411.232 1968 58022 340.052 1921 43805 407.420 1969 45047 393.712 1922 53233 425.398 1970 49781 438.047 1923 74327 528.111 1971 42894 424.194 1924 64367 480.895 1972 51105 409.579 1925 56074 416.663 1973 43557 372.949 1926 59833 424.755 1974 57835 396.183 1927 55149 465.932 1975 51370 457.388 1928 52252 439.824 1976 46146 385.961 1929 65441 509.036 1977 47340 308.386 1930 58973 457.829 1978 66222 535.313 1931 47681 351.580 1979 53051 405.295 1932 50928 386.248 1980 50222 405.537 1933 62513 372.317 1981 54049 484.390 1934 57554 448.086 1982 51546 384.387 1935 48634 430.793 1983 40010 340.424 1936 57554 394.652 1984 58973 442.056 1937 69347 520.450 1985 43391 416.205 1938 56352 502.046 1986 42729 386.600 1939 77159 517.452 1987 49340 318.956 1940 69835 470.135 1988 31287 286.126 1941 58877 463.831 1989 38584 357.229 1942 61553 481.740 1990 50046 474.492 1943 59451 485.602 1991 63293 441.381 1944 53868 422.964 1992 41040 324.700 1945 56907 457.652 1993 38980 341.313 1946 57277 485.127 1994 55611 471.294 1947 52693 496.448 1995 55426 416.232 1948 63976 495.594 1996 69249 480.004 1949 53505 453.001 1997 65734 444.178 1950 61075 494.756 1998 32507 276.160 1951 61553 468.706 1999 52429 448.381 1952 57741 504.974 2000 62319 570.839 1953 54049 400.414 2001 67101 542.240 1954 55519 324.390 2002 62805 534.740 1955 34948 344.815 2003 50487 364.482 1956 51193 428.188 2004 50664 410.450 1957 48022 368.007 2005 55519 460.446

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Figure 3.3.2 – Hydrographs of the Tonle Sap Great Lake at Kampong Luong (Zero elevation at 0.64m AMSL).

The 2000 flood was the most severe flood with respect to flood volume transited through Stung Treng to Cambodia, the highest during the 96 years of observed period (1910-2005) with a volume of 570,8 billion m3. The Great Lake water level in 2000 reached also the highest elevation of 10.36m AMSL and a volume of 75.15 billion m3 with maximum flooded area of 14,000 km2. Ring roads around the lake, namely the road RN5 and RN6 have an elevation of about 11.0 m AMSL. Flooded areas caused by the Great Lake for each sub-catchments are shown on maps in Appendix 3.3 (Figure 3.3.1 to Figure 3.3.4). The 1998 was the driest years, see Figure 3.3.2 above, the maximum water level reached only 6.86m AMSL

The Mekong-Tonle Sap Great Lake system, is one of the most productive ecosystem in the world, annual capture fisheries could reach a maximum up 400, 000 metric tons per year and play an important role for the national economy and food security especially for the poor. The ecosystem of the Great Lake is very complex and extremely vulnerable to environmental change locally and the development in the upper part of the catchments such as cascade hydropower development and large scale irrigation schemes. At local level flooded forest encroachment for agricultural expansion and weak resource management are major causes of decline in fish capture during the past decade. It is widely accepted that building infrastructure across the flood plains and its river network could disturb natural fish migration and fish habit to a certain extent.

The railway embankment and its related drainage design seem to adopt conservative measure avoiding major disruption to natural drainage system. Bridges or culverts were constructed across most of depression, natural wet land creeks and canals instead of landfill options. It is generally conceived that rather a greater number of small drainage structures than less but more important one.

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As mentioned above, most part of the region crossed by the railway embankment especially the NL is rather dry, with total annual rainfall of only between 900 and 1,500 mm per year.

Table 3.3.8 – The Tonle Sap Great Lake – annual maximum water level, volume and flooded area

TLS Great Lake Max. V. in Max.area 9 3 3 2 Year WL(max.) x 10 m x10 km 1980 9.38 62.2515 12.6365 1981 9.19 59.82425 12.41726 1982 9.29 61.10175 12.53266 1983 9.2 59.952 12.4288 1984 9.66 65.8285 12.95964 1985 9.29 61.10175 12.53266 1986 9.2 59.952 12.4288 1987 8.43 50.80381 11.47809 1988 8.97 57.04999 12.16011 1989 8.75 54.50525 11.88225 1990 9.25 60.59075 12.4865 1991 9.84 68.128 13.16736 1992 8.57 52.42319 11.65491 1993 8.72 54.15824 11.84436 1994 9.93 69.27775 13.27122 1995 9.77 67.23375 13.08658 1996 9.81 67.74475 13.13274 1997 9.17 59.56875 12.39418 1998 6.86 33.97244 9.52592 1999 8.97 57.04999 12.16011 2000 10.36 75.15476 14.03276 2001 9.89 68.76675 13.22506 2002 10.1 71.5561 13.5411 2003 8.26 48.83742 11.26338 2004 9.2 59.952 12.4288 2005 9.29 61.10175 12.53266

The Tonle Sap Great Lake: Maximum annual volume and flooded area (1980-200)

80 Volume in km3 70 Flooded area in km2

10 Volume in km3 and Flooded area in km2 in area and Flooded km3 in Volume 0

3 0 1980 1981 1982 198 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 200 2001 2002 2003 2004 2005 Year

Figure 3.3.3 – Maximum annual storage volume and flooded area of the Great Lake for the period (1980-2005)

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In addition to flood, Cambodia was hit by severe droughts in 1995, 1998, 2001, 2002, and 2004, provinces of Battambang, Pursat, Prey Veng, Kampong Speu, Kampong Cham and Svay Rieng were hit by droughts, causing widespread food shortage. During dry years competition for water is increasingly significant among water user sectors. There should be a balance between the risk of compromising the safety of built infrastructures from flood damage and the conservation for droughts management. The country is facing shortage of water conservation infrastructure. For small catchments drainage improvement add risk to bush fire and water shortage.

3.3.8.1.2 Tributaries of the Great Lake

The major tributaries crosses by the railway NL are namely the Stung Boribor, Stung Pursat, Stung Svay Daun Keo, Stung Daun Tri, Stung Maung Russey, Stung Sangker, Stung Sisiphon and Stung Mongkol Borey. Recent water level and discharge measurements are available only for Stung Boribor, Stung Pursat, Stung Sangker, Stung Mongkol Borey and Stung Sisophon. Recent discharge measurements started in 1997. :

Table 3.3.9 – Peak discharge on major Great Lake tributaries,

The Stung Sangker(Maximum discharge) 1963 1964 1965 1966 1967 1978 1969 1970 1971 1975 Station\year Treng 580 972 750 660 1730 1070 1330 1200 1080 636 Battambang 1997 1998 1999 2000 2001 2002 2003 1134 - 1071 1141 - - - The Battambang city was reported flooded in 2005

The Stung Pursat at Bak Trakoun Station\year 1995 1996 2001 2002 Bac Trakoun 957 1277 548 372 The most recent severe flood was in 1996 and 2000 where railway embankment was reported flooded.

The Stung Mongkol Borey at Mongkol Borey Station\year 1997 1998 1999 2000 2001 1002 Mongkol Borey 87.1 40.7 82.2 77.7 68.6 61.0

The Stung Sisophon at Sisophon Staion\year 1997 1998 1999 2000 2001 2002 Sisophon 300 39.9 205 184 146 25.0

The Stung Prek Thnot at – Peam Kley Station\Year 1996 1997 1998 1999 2000 2001 2002 Peam Kley 798 824 - 795 1280 864.6 125.6

The Stung Sen at Kampong Thom

The Stung Sen on the northeastern side of the lake has the longest discharge time series records (1981- 200), the frequency distribution of the maximum discharge at this station is shown in the Figure 3.3.10 of Appendix 3.3.

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Year 1962 1963 1964 1965 1966 1967 1968 1969 Max. Q(m3/s) 865 793 557 744 1060 837 759 931 Year 1981 1982 1983 1884 1985 1986 1987 1988 Max. Q(m3/s) 712 864 882 736 736 861 906 753 Year 1989 1990 1991 1992 1993 1994 1995 1996 Max. Q(m3/s) 803 856 828 851 749 843 846 849 Year 1997 1998 1999 2000 2001 2002 Max. Q(m3/s) 892 775 637 936 868 907

All tributaries has a flash flood types which could not last for more than two to three days

3.3.9 Preliminary Assessment of Existing Drainage Capacity

3.3.9.1 The Northern Line

The region crossed by the northern railway line is the most critical since it runs across the low lying areas where drainage of flood water is inefficient due to the flatness of the landscape. In addition the section between Pursat and Battambang was the hardest hit by act of sabotage during the war. Almost all water crossing structures were blasted by land mine, some of them several times. Implemented repair works has a temporary characters and unconventional material were used.

The region is drained at a regional scale into the Great Lake by:

- Stung Boribor and its sub-catchments drain a total sub-area of some 7,153.78 km2. Within this sub-catchments all rivers are well divided at the point where the railway cross the streams, see Figure 1 to Figure 4 of Appendix 3.2.; - The Stung Pursat drains sub-catchments of 5,965 km2, and enters into its flood plain some 40 km from the RN5, see appendix 3.3.2, from that point flood water expands between a flood plain varying between 35 to 40 km wide. Over-bank flow is distributed between numerous old river branches and canals (irrigation and drainage canal). The drainage area served by each existing water-crossing structure is not well defined. During flood water head is rising at the upstream side of the railway embankment and the road. As water level keep increasing, lower sheet flow obstruction such as rice field bundles will first be flooded followed by rural roads which resist to flooding until the higher flood stage. They play mostly as water divider and direct flood water towards numbers of bridges and culverts. At the stretches between Pursat and Battambang, reports of embankments flooding are presumably caused by suppression of many of existing culverts and bridges or part of their spans. Preliminary assessments of drainage capacity are shown in Table 3.3.4. - The Stung Dauntri drains a sub-catchments of 3,695.97 km2 is a rather flat sub-catchments with only a small part located in the upper catchments. The Stung Maung Russey and Stung Dauntri drain large part of the flood plain of some 60 km wide; - The Stung Sangker drains a sub-catchments of 6,052.79 km2, similar to the Stung Pursat sub- catchments, the Stung Saker after its upper catchments, drains a large flood plain of around 50 km wide, before entering into the Great Lake; - The Stung Sisophon and Stung Mongkol Borey drain a total sub-catchments of 10, 857.98 km2. Most part of the sub-catchments is extremely flat with elevation below 20-30 m only. Major flood events floods large areas as shown in maps, up to the limit of the RN 5 and the railway embankment.

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Maps in Appendix 3.2 show areas of major flood extend as caused by the Great Lake. Major flood from the Great Lakes backs up water of the lake deep into the tributaries and reduces the drainage capacity of major tributaries and drainage of the water crossing structure may put flow regime into the downstream submerged conditions.

The northern line runs through higher ground than the national road RN5 between Phnom Penh and pretty close to the RN5 it runs almost parallel with the RN5 but always on the upstream side until Maung Russey. Then the rail follows higher ground again until Battambang. The railway embankment was higher than the RN5 before the road rehabilitation. According to report during site visits, the embankment was seldom flooded, flood reports indicated only on section where it crosses major rivers such as Stung Pursat and Stung Sangker. (Pursat flood of 1978, 1996 and 2000). Otherwise flooded reports along the stretch between Pursat and Maung Russey and Maung Russey and Battambang was due to reduction of drainage capacity due to temporary repair works about 38% of existing capacity), a number of culverts and small bridges have been completely eliminated by landfill or some bridges spans have been completely eliminated of severely reduced. During critical flood flow concentration could be observed by severe erosion left at the downstream side of the embankment. Reduced drainage capacity was the cause of flood overtops the embankment.

The rehabilitation of the RN5 was fully rehabilitated in 2003. The water crossing structures were located at almost the same interval as bridges of culverts on the railway embankment with minor shift where there are physical obstacles such as villages or rural roads etc.

The capacity of existing drainage is checked on the assumption that the maximum flow velocity is 2 m/s during high flood. And the amount of water to be drained is subdivided into compartments of the flood plain as described above and shown in Table 3.3.3.The required total discharge of each sub-area are presented .

3.3.9.1.1 Characteristics of stream channel at water crossing sites along the northern line

Between the bridges at Tbeng Kpos Station (PK137+131) to Totung Thngai station (PK148+116), the railway embankment crosses the foot of the Cardamom mountain ranges, sometimes in a plateau between the foot of the cardamom and the hill towards the lake direction. Since the area is affected by the shadows of the cardamom mountain, rainfall is erratic, and is much lower than any other parts of the country. Heavy rainfall occurs mainly in August when the monsoon start moving north and in September affected by typhoon from the South China Sea. Only a few streams have permanent water in the river bed during dry season. Small stream in a higher ground rarely experience strong surface flow in the past. But with current rapid change in land cover, flow regime might change. The existing drainage seems adequate but need full rehabilitation to assure flow free passage as the original design, mostly only channel clearance is required. The depth of the drainage should be reconsidered to achieve the balance between drainage requirement and water conservation to maintain local vegetation and risk of bush fire reduction.

In the flood plain, drainage points could be deepened further than 1.5 m , but a balance should be further considered between water conservation for surrounding rice fields and risk reduction of embankment being overtopped.

3.3.9.1.2 Critical region between Pursat and Maung Russey

Between PK 198+ 200 (Svay Daun Keo and PK 270+291, the initial total drainage capacity has been reduced by 38% for bridges.

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3.3.9. 1.3 Estimation of drainage requirement

The estimation is focusing only on the stretch of the railway between Pursat and Battambang where according to reports flood water had overtopped the embankment in recent years at some locations.

The 1/50,000 map was used to define sub-areas for flow distribution. The following features delimit surface water distribution in the region: the railway embankment with its drainage infrastructures, the loose rural road along the Stung Pursat River banks, the diversion canal from the left bank of the Stung Pursat following the district border between Bakan and Phnom Kravanh. The canal runs almost parallel to the railway embankment until the Stung Maung at Prek Chik. The diversion canal serves some twelve canals running perpendicular direction to the railway embankment.

The sub-area 1 is drained by 7 major bridges with total drainage capacity of some 750 m3/s of peak discharge, whereas as overland peak flow confined by the sub-areas 1 is only78 m3/s. The Stung Pursat at Bac Trakoun , a hydrological station some 40 km upstream of the Pursat provincial town at the entrance of the Pursat river to the flood plain has recorded highest peak discharge of 1277 m3/s in 1996 (when the Pursat town was also reported flooded). In the Stung Pursat flood plain, during flood, the higher stage of flood water spread within a flood plain of approximately 5 kilometer wide. The maximum drainage capacity of the railway bridge across the Stung Pursat is estimated at 1089 m3/s. The remaining of the maximum flood water of 188 m3/s could be accommodated by crossing drainage in the flood plain. This could be concluded that during critical conditions the drainage capacity in the Stung Pursat catchments is adequate.

The sub area 2 is confined between the culvert no. C122 (169+672.59) to culvert no C137, the estimated drainage requirement is: 146.8 m3/s, where as the maximum capacity of the existing drainage facility in this sub-area is 135.3 m3/s, over 92 % of the required capacity. With allowance for a short period of over capacity, the existing drainage infrastructure is adequate. It should be also noted that the rational method tend to over estimate flow as well.

The sub-area 3, has the drainage requirement of 202.0 m3/s with existing capacity of 296 m3/s is adequate.

The sub-area 4 has maximum existing draining capacity of 303.5 m3/s as compared to the maximum requirement of 166.3 m3/s.

The sub-area 5 is serving by three bridges with a total maximum capacity of 466.4 m3/s and, the required maximum capacity is 430.4 m3/ s, (92%).

The sub-are 6, has maximum capacity of 333 m3/s as compared to the requirement of 639.19m3/s, about 50% lower than required, this result should be carefully checked with more detail investigation.

The sub-area 7, has existing maximum drainage capacity of 7.6 m3/2 serving by 4 culverts seems not adequate as compared to maximum requirement of 83.2 m3 /s

The sub area 8, the maximum existing drainage capacity was 157.7 m3/s where as the requirement is 176.92 m3/s, slightly 90% of the requirement seems adequate for this section.

The sub-area 9

The Stung Battambang, has a maximum record of 1730 m3/s in 1967 at Treng hydrological station upstream of Battambang (10 years records), the capacity of the railway bridge at Battambang is about 1300 m3/s, the estimates rational method maximum required discharge is 2503m3/s, seems much higher than was observed. The overbank flow of 1200 m3/s could be subdivided in two parts of approximately 600 m3/s to be drained at both side assuming surface flow is evenly distributed. For the

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right hand side, the existing capacity is estimated at 497 m3/s, about 82 % of the maximum capacity. It is to noted also that the rational method applied here tend to over estimate the maximum discharge. During the field visit it was also observed that there was no indication of strong overland flow in the neighborhood of the Stung Sangker, especially O Dambang and O Char. It should be noted also that the rainfall intensity of 50 years return period was used, for small bridges and culvert.

3.3.9.2 The Southern Line

The southern line crosses only one major flood prone tributary of the Bassac River, the Prek Thnot. All infrastructures damaged by the 1991, 1994, flood were rehabilitated. Rough estimated capacity of existing drainage capacity is about 3900 m3/s, close to the 100 year flood of the Prek Thnot 4,000 m3/s.

The southern line has received less destructive effect from the war than that of the northern line. The preliminary assessment of the hydraulic conditions are presented in Appendix 3.3 , there are minor some siltation and scouring to be deal with during the rehabilitation altogether with other repair and improvement works such as abutment wall, channel clearance etc. During the site visit there was no report on serious flood occurrence along this southern line.

3.3.9.3 Side Drainage

As reported in the field survey reports, there are a number of locations where the rail runs across terrain cuts, site drainage was inadequate due to lack of maintenance, during the rehabilitation side drainage should be fully reconstructed, the site should be revisited and proper survey be conducted. Dimension of the site drain should be based on short duration provided in table 3 using the nearest reference rainfall station. The rainfall intensity for 5 years return period will be sufficient; the size of the areas are normally small, the Rational Method is the most suitable.

3.3.10 Recommendations

Since major rehabilitation works have been already carried out at both lines around major tributaries such as Prek Thnot and Stung Pursat, the remaining drainage improvement works should focus on the most severely damage section between Pursat and Battambang. More detail field survey should be carried out to understand flood flow distribution in the region which appears to have significant changes from the time the structures were built.

The rehabilitation of damaged structures should be fully implemented instead of small or temporary repair.

Channel clearance are required as part of routine system maintenance in many of the existing culverts and bridges as necessary but should keep the balance between structure safety and environment protection, fish migration route etc..

There should be a closer cooperation between water use planning and management sectors including land use planning to assure good coordination and prevent conflicts.

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3.3.11 References

i) Design Procedures Structure and Drainage, Northwester Rural Development Project (NRDP), ADB Loan No. 1862-CAM(SF), July 2004. ii) Flood Emergency Rehabilitation Project, National Road Component, IDA Credit No. 3472 KH, Design Report, Volume 3, August 2002. iii) Project Preparation Technical Assistance for Primary roads restoration Project, Cambodia: T.A. No. 2722- CAM, Final Report, Detailed Engineering-Bridges, June 1999. iv) Report on the rehabilitation of the Kampong Tuol road dike, MRCS, Part A: Floods estimates for the Prek Thnot River, part B: Technical report, February 1993. v) Master Plan Study on the Integrated Agricultural and Rural Development Project in the suburb of Phnom Penh, JICA, February 1995. vi) Road Design Standard, Part 3. Drainage CAM PW.03.103.99, MPWT, 2003 vii) Bridge Design Standard CAM PW.04.102.99, MPWT, 2003

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3.4 GEOTECHNICAL CONDITIONS

3.4.1 General Description of Geotechnical Condition in the Project Area

As shown in Figure 3.4.1, geological condition of the Project area is roughly divided into i) recent alluvial area which is pediment area formed in the Quaternary which spread along Tonle Sap lake, Tonle Sap river and Mekong river, ii) old alluvial area located on “between Phnom Penh and Pursat”, “between Sisophon and Poipet”, and “close to Takeo and Kampot”, and iii) sandstone area located between Kampot and Sihanoukville, and near Pursat, slightly.

Figure 3.4.1 – Geological Map of Cambodia2

2 Source: Department of Geology and Mines, Ministry of Industry, Mines and Energy

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3.4.2 Depth of Bearing Layer for Substructure of Bridges in the Project Area

The main objective of the geotechnical condition study is to obtain geotechnical data along the railway corridors to design the pile lengths of substructures which shall be reconstructed or rehabilitated. In order to achieve the objective, geotechnical data, such as borehole logs and laboratory test data from other projects, mainly highway/road projects, adjacent to the railway corridors were collected and analyzed. The railway corridors and location of boreholes are shown on the Fig.3.4.2.

Roads and highways running along Northern Line and Southern Line, together with available geotechnical data are summarized in the Table 3.4.1. Among the soil data, SPT (Standard Penetration Test) results are important to estimate the pile lengths.

Table 3.4.1 – Geological Map of Cambodia Railway Section Road Recent Project Data Status Line along the for the Road General SPT Railway Data Result Section Northern Phnom Penh – NR. 5 - Primary Road Restoration Available Available Line Sisophon Project (ADB, 2000-2004) - Emergency Flood None None Rehabilitation Project (ADB, 2001-2004) Sisophon – NR. 5 - GMS Cambodia Road Available Available Poipet Improvement (NR.5, 6 Siem Reap – Sisophon – Poipet) Southern Phnom Penh – NR. 2, & - Rehabilitation of Bridges Available Available Line Takeo NH. 3 along Main Trunk Roads Takeo – Kampot NR. 31 & - Flood Emergency Available None NH. 33 Rehabilitation Project (ADB, 2002-2004) Kampot – NR. 3 - NR.3 Kampot – Trapang Available Available Trapang Ropaou Ropaou Road Rehabilitation (Korea, 2004-2007) Trapang Ropaou NR. 3 - Road Rehabilitation Project Available None – Veal Ring (IBRD, 2002) Veal Ring – NR. 4 - NR.4 Construction Project None None Sihanoukville (USAID, 1996)

Based on the available SPT data, depth of bearing strata and pile lengths are estimated. For the estimate, the following criteria was adopted. - In case of clay layer: N-value is more than 30, continuous 5 m min. - In case of sand layer: N-value is more than 50, continuous 5 m min. The results of the estimate are summarized and shown on the Figure 3.3.2. According to our estimate, the deepest bearing strata of 25m range are found at Kampot area. In the other areas, the bearing strata of between 10 to 15m in depth are dominant.

The data shown in this section is reference only, and the contractor awarded for the rehabilitation work shall carry out detailed soil investigations at each bridge site to decide the pile lengths.

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Figure 3.4.2 – Map of Available Existing Borehole Data and Depth of Bearing Layer

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3.4.3 Ballast Quarry Site in the Project Area

During the implementation period, stable ballast supply will become one of important issues, because huge volume of ballast is required in a short period. Ballast should have high strength and durability. On the other hand, there are not so much quarry sites which can supply such a quality along the railway lines because railway lines basically run on alluvial plain or sandstone area.

In this study, quarry site survey and existing material report study were conducted to find some available quarry sites. The result is shown in the figure below.

Phnum Chunh Choang Quarry Site

Phnum Thom Quarry Site

Kampong Chhnang Quarry Site

< Legend > : Confirmed by the Engineer’s Quarry Site Survey : Based on Material Report by MPWT, 2002. (Quality confirmation to be required.)

Kampong Trach Quarry Site

Figure 3.4.3 – Map of Available Quarry Sites for Ballast

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The details of the Quarry Site Survey are shown as below.

(1) Kampong Trach Quarry Site (along Southern Line)

The quarry site supplies ballast to RRC at present and has a branch line linking with Southern Line. According to the owner, the current conditions of the quarry are as follows.

- Ballast Production Capacity of Existing Crusher: 400m3/day (in case of 24hrs operation, 800m3/day).

- Unit Cost: 7 USD/m3 (Price at the site, as of June 2006)

The current condition is shown in the following photographs.

(a) Kampong Trach Quarry Mountain

(b) Existing Crushing Plant and Railway Branch Line

Figure 3.4.4 – Pictures of Kampong Trach Quarry Site

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(2) Kampong Chhnang Quarry Site (along Northern Line)

The quarry is located near Kampong Chhnang airport along the National Road No.5. The quarry site is located 25 km from Kraing Skear station and 34 km from Romeas station. Access road to Romeas station is in fair condition; however that to Kraing Skea station is very poor. According to a staff of the quarry, the current conditions of the quarry are as follows.

- Ballast Production Capacity of Existing Crusher: 100m3/day.

- Unit Cost: 7 USD/m3 (Price at the site, as of June 2006)

- Experience of Ballast Selling to RRC: None.

The current condition is shown in the following figures.

(a) Kampong Chhnang Quarry Mountain

(b) Aggregate from the Quarry

Figure 3.4.5 – Pictures of Kampong Chhnang Quarry Site

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(3) Phnum Thom Quarry Site (along Northern Line)

The quarry is located close to Phnom Touch station, PK315+771. The quarry site is a relatively large- scale and modernized. According to the owner of the quarry, the current conditions of the quarry are as follows.

- Ballast Production Capacity of Existing Crusher: 100m3/day.

- Unit Cost: 6.5 USD/m3 (Price at the site, as of June 2006)

- Experience of Ballast Selling to RRC: Experienced

The current condition is shown in the following photographs.

(a) Phnum Thom Quarry Mountain

(b) Existing Crushing Plant and Aggregate from the Quarry

Figure 3.4.6 – Pictures of Phnum Thom Quarry Site

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(4) Phnum Chunh Choang Quarry Site (along Northern Line)

The quarry site is located close to Sisophon town and approximately 3km away from National Road No.5. The quarry is operated by Thailand’s company systematically and efficiently. According to the manager of the quarry, the current conditions of the quarry are as follows.

- Ballast Production Capacity of Existing Crusher: 400m3/day.

- Unit Cost: Same level to the other quarries

The current condition is shown in the following photographs.

(a) Phnum Chunh Choang Quarry Mountain

(b) Crushing Plant

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Figure 3.4.7 – Pictures of Phnum Chunh Choang Quarry Site

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3.5 PRELIMINARY ENGINEERING DESIGN OF TRACK STRUCTURE

3.5.1 General The following design features of track structure are confirmed through the various study meetings among MPWT, RRC, ADB and consultants; (1) Axle Load The existing track and bridge structures of Northern Line were designed for the maximum axle load of 15 tons. Since the existing track materials and structures are utilized after the rehabilitation work, the same axle load will be applied for the rehabilitation work, except those structures reconstructed. Axle load of 20 tons are applied for the design of re-constructing structures in the Northern Line. The track and bridge structures of Southern Line were designed for the maximum axle load of 20 tons. Therefore, same standard are applied for the design of re-constructing and rehabilitating structures in the Southern Line. (2) Design Speed The mainline design speed of 50km/h was understood as the average speed of the rehabilitated track. 3.5.2 Southern Line Track structure of the Southern Line was constructed between 1960 and 1969, using 43 kg rail on wooden sleepers. Those wooden sleepers are generally in poor condition. Because of rotting and weathering of wood material, rail spikes are floating or missing in high percentage. According to the Sleeper Condition Survey, which was carried out in May 2006, 10.66% of the total sleepers are re- usable wooden sleepers and 6.81% of the same is re-usable steel sleepers. Those re-usable sleepers are sleepers which had been replaced in recent years. The sleepers originally placed are 100% non-reusable at this moment. The result of the survey is summarized in Table 3.5.1 as follows; Table 3.5.1 Summary of Sleeper Condition Survey Wooden Sleepers Steel Sleepers Tootal Re-usable Unusable Re-usable Unusable Number od Sleepers 41,535 316,471 26,522 5,017 389,545 Percentage to Total 10.66% 81.24% 6.81% 1.29% 100.00% Track Length (km) 28.06 17.92 Note: Track length is calculated based on 1480 sleepers/km. In order to save the construction cost, those re-usable wooden sleepers are planned to utilize in some sections of the main line. However, those re-usable steel sleepers are planned to utilize in the other part, considering future introduction of signalling system which may require insulation of the rail. Rail welding was recommended in the Inception Report at the section between Kampot and Sihanoukville to strengthen the track structure and reduce maintenance work. However, due to the budgetary limitation, rail welding is removed from the scope of work and recommended as a future improvement work. Track rehabilitation work shall proceed in the following way; i) Remove the existing track panel. (Select re-usable wooden and steel sleepers and store them in a certain place.) ii) Prepare track bed. iii) Spread new ballast on the track bed. iv) Place new track panel using PC sleepers or salvaged wooden sleepers. (PC and wooden sleepers shall not be used in mixed condition.)

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v) Spread upper ballast and tamping to adjust the alignment.

The above processes are shown on the Figure 3.5.1 below.

Sleeper (1) Existing Condition Rail

Soil and Ballast Mixt ure (2) Removal of Track and Subgrade Preparation Subgrade

(3) Ballast Spreading and Track Installation New Concret e New Ballast Sleeper

(South Line)

Figure 3.5.1 – Track Rehabilitation Procedure

PC and wooden sleepers cannot be used in mixed up condition considering future usage of MTT (Multiple Tie Tamper) for the track maintenance because of the difference of the dimension and spacing of sleepers. Spacing of sleepers are designed as 67.57 cm (1,480 sleepers/km) based on the scheduled train running speed and estimated annual passing tonnage of the line. The Table 3.5.2 indicates the design standard for the track structure decided by the maximum design speed and assumed Annual Passing Tonnage.

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Table 3.5.2 – Minimum Requirements of Track Structure designated by Japan Railway (JR) by Max. Speed and Estimated Annual Passing Tonnage

Max. Design Speed Annual Passing Tonnage (T: x 1,000 ton/yaer) Track Material (V: km/h) 20,000

Note: Spacing of Sleeper Number of sleepers/km 39 pcs/25 m : 64.1 cm = 1,560 pcs/km 37 pcs/25 m : 67.6 cm = 1,480 pcs/km 34 pcs/25 m : 73.5 cm = 1,360 pcs/km In case of spacing 60cm = 1,667 pcs/km

3.5.3 Northern Line and Spur Line to Phnom Penh Port Facilities The condition of track structure of the Northern Line is generally poor, in the term of the irregularity of the line, alignment defects and lateral distortion. More than 70 years old 30 kg rail is severely worn, especially at rail joints. Bolt holes at rail ends are corroded and weakened the rail strength. When wear of rail ends and the corrosion of bolt holes are severe, the weakened part shall be removed by cut and make new bolt holes. Missing bolts in fishplates and rail fasteners are found in many locations. Due to insufficient maintenance work, ballast is contaminated with soil and cemented hard. The steel sleepers are relatively in good condition compare to the rail. It can be used another 10 to 15 years if properly maintained. The rehabilitation of track shall be carried out based on the existing condition classified as follows; (1) Fair to Good Condition Section i) Remove the existing track panel. ii) Add ballast to form 20cm thick ballast under the sleeper. iii) Place re-assembled track panel having square joints. iv) Spread upper ballast and tamping to adjust the alignment. (2) Poor Condition Section i) Remove the existing track panel. ii) Prepare the track bed. iii) Spread new ballast on the track bed. iv) Place re-assembled track panel having square joints. v) Spread upper ballast and tamping to adjust the alignment.

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It is anticipated that two new crossing loops to be considered on the Northern Line. Assuming train operation in the future (after 2030), 10 trains are operating in one hour (both direction). In order to accommodate those trains, stations approximately every 50 km distance should have crossing loops. Based on this assumption, crossing loops shall be equipped at the following stations; Meanork (PK55+665) Bamnak (PK124+399) Pursat (PK165+467) Maung Russei (PK223+104) Battambang (PK 273+052) Sisophon (PK 337+310) According to the field survey, all the stations have crossing loops at present. Therefore, no new crossing loops will be required.

3.5.4 Missing Link Since the detection and disposal of UXO have not been started, the aerial photo survey was carried out to identify the missing centerline. According to the photos, the old alignment can be traced up to PK380+200 without difficulty. The remaining section up to PK385+000 (Border Bridge) is unclear. However the old alignment was detected by connecting the remaining structures, such as bridge and station building. The construction is in the same manner as new construction as follows; i) Prepare subgrade by filling, grading and compacting borrow material. ii) Spreading lower ballast layer in 20 cm thick. iii) Placing PC sleepers on the ballast and assemble track panel using rail material donated from Malaysia. iv) Spread upper ballast and tamping to adjust the alignment. Rail welding is recommendable in this section in order to strengthen the track structure and to reduce maintenance cost. However, due to budgetary limitation, rail welding is removed from the scope and recommended as a future improvement work. Main part of the track structure from PK 384+600 (Rotary near casino hotels) to the border bridge (PK385+000) shall be constructed in the middle of the National Road No. 5 as shown on the Figure 3.5.2. When required, custom office can be constructed within the rotary, covering the track structure under the building. Width of the narrowest section is 22.50m between piers of pedestrian deck which connects two casino hotels. As shown on Figure 3.5.3, even giving 4.30m for railway track structure at the median of the road, 4 lanes for road vehicles (3.50m x 4), shoulders (0.5m x 2) and walkways (1.50m x 2) can be accommodated.

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Casino Hotel Immigration Office

55m

Cust om Office

Immigration Office Casino Hotel 38m

Thai- Cambodia Border Legend: Track with Fence Note: Cross border facilities at Thai side will not be changed. Road cum Track

Safet y Barrier

Figure 3.5.2 – Track Alignment between PK 384+600 and 385+000

22.50

Structural Profile Pier of Pier of Pedestrian pedest rian Deck at 3.50 Deck at Casino Loading Profile Casino 4.20 3.98 Hot el 2.92 Hot el

1.60 3.50 3.50 4.00 3.50 3.50 1.60

0.50 4.30 0.50

Note: Struct ural Profile and Loading Profile in General for Single Track (SRT St andard 1966- 29) The structural and loading profiles are simplified in this sketch.

Figure 3.5.3 – Track Structure at the Median of NR-5

At the abovementioned section, road cum track structure shall be constructed as shown on Figure 3.5.4.

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(1) Road and Track separated by Fence

4.30 St eel Post Ballast for Fence 4.00

2.00

Asphalt Pavement

Granular Mat erial

(2) Road and Track at same level (Flexible Structure)

Concrete Plate CL Ballast

Asphalt Pavement

(3) Road and Track at same level (Rigid Structure)

Concrete Plate Concrete Slab

Asphalt Pavement

Granular Material

Figure 3.5.4 – Road cum Track Structures

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3.5.5 Cross Border Station When cross border train operation between Cambodia and Thailand is resumed, there shall be a cross border station either Cambodia or Thai side. The border between Thai and Malaysia, there is a cross border station at Padang Besar in Malaysia and no station at Thai side. A building on the main platform has a cross border offices and accommodates for passengers from both country to immigrate and emigrate in the same building. A schematic drawing of cross border facilities at Poipet station is shown on Figure 3.5.5.

Train from Thailand Train to Thailand

Main Platform Ent r ance Exit Cambodia Thailand Immigration Cambodia Immigrat ion and Immigrat ion Office Thailand Office Immigration and Exit Ent rance Main Platform

Bus Terminal Poipet Station Main Building (Train Control, Ticketing and other Services)

Nat ional Road No. 5

Figure 3.5.5 – Cross Border Facilities at Poipet Station

Passengers from Thai shall enter the building on the main platform and passing Thai Immigration office first, then, go through Cambodian Immigration and Custom offices. Passengers to Thai shall enter the building from the other side. They shall pass the Cambodian Immigration office first, then, go through Thai Immigration and Custom offices. Passenger flow of both directions will be separated completely. The outline of the main station building is as shown on Figure 3.5.6.

Ent rance Exit St at ion St at ion and Train Kiosk Rest Maintenance Control Center Rest Room Sect ion Room

Concourse Waiting Room St at ion Stat ion Mast er Administration Ticketting Room Office Information Office Kiosk Ent rance/ Exit

Figure 3.5.6 – Outline of New Poipet Station

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3.5.6 Sihanoukville Port Rail Access (1) Rail Access to Container Port Direct railway access to the container port in Sihanoukville is a major objective of the project. Because of the on-going Sihanoukville Port Urgent Rehabilitation project, space available for railway access is very limited. Through the discussions with PAS (Port Autonomous de Sihanoukville) officers, it was agreed to restore the old tracks to provide access to the container stacking yard as shown on Figure 3.5.7. (2) Double-stack Container Transportation It was suggested to study the possibility of double-stack container train operation on Southern Line. Because the maximum gross weight of 40 feet container is 30.48 ton, double-stack container weight will be 60.96 ton. If tare weight of container wagon is less than 19 ton, the axle load will be less than 20 ton. Therefore, if the design load of the structures is 20 ton, double-stack train can theoretically be operated on the line. Cambodian railway is not electrified and there is no road bridge crossing over the railway, except small abandoned bridge near Sihanoukeville station. This small bridge can be removed easily. Therefore, structurally there is no obstacle for double-stack train operation. However, there is no case of double-stack container train operation in the world railways where using a meter or 1.067mm gauges. The double-stack container train will have a gravity center at high position, and thus, the train will be unstable at the curve section having big cant. Double-stack container trains are now operated in USA, Canada, Mexico, Australia, and India. These countries are using standard or broad gauges. Therefore, if the operator of Railway in Cambodia wants to procure double-stack container wagon, it will be costly because there is no standard model of wagons. Considering above, double-stack container train operation in railway in Cambodia will not be recommendable.

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Figure 3.5.7 – Sihanoukville Port Rail Access

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3.6 PRELIMINARY ENGINEERING DESIGN OF BRIDGES AND CULVERTS

3.6.1 Types of Existing Railway Bridges

As previously mentioned in this report, the existing bridges constructed along the railway lines are those of steel and concrete construction.

3.6.1.1 Steel Bridges

The steel bridges of the Northern and Southern Lines are classified into four types.

(1) J-Type (Figure 3.6.1)

J-Type is a built-up girder, or trough girder type bridge with the standard span length of 8.35m (J1) and 11.55m (J2).

Schematic Layout of Desk

Figure 3.6.1 – J1-Type Steel Bridge

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(2) T-type (Figure 3.6.2)

For the longer span of bridge, pony truss type bridges are used. The standard lengths of this truss girder are 17.6m (T1) and 35.2m (T2).

Figure 3.6.2 – T1-Type Steel Bridge

(3) DT-Type (Deck Truss Type) (Figure 3.6.6)

For the longer bridges crossing rivers with a large width in the Southern Line, this type of truss bridge was constructed. Figure 3.6 shows DT–Type steel bridge at PK 23+643 in the Southern Line.

There is no drawing of this type bridge, because bridge documents were burned or thrown away during the Civil War.

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(4) PM Type (Pont Metalique, Through Truss Type) , (Figure 3.6.3)

Between Kampot and Sihanoukville in the Southern Line this type of bridges were constructed to cross the wide river. This type of bridge is located at PK 168+519 near Kampot station and at PK 211+568 near Veal Rinh station.

Figure 3.6.3 – PM-Type Steel Bridge

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Figure 3.6.3 - J – Type (PK 97 + 676, Northern Line)

Figure 3.6.5 - T – Type (PK 313 + 247, Northern Line)

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Figure 3.6.6 - DT – Type (PK 23 + 643, Southern Line)

Figure 3.6.7 - PM – Type (PK 211 + 568, Southern Line)

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3.6.1.2 Concrete Bridges

The concrete bridges of the Northern and Southern Lines are classified into three types.

(1) A-Type (Figure 3.6.8)

A-Type is classified into two types, A1, which is single span concrete bridge, and A2, which is multiple simple span concrete bridges.

Figure 3.6.8 – A1-Type Concrete Bridge

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(2) B-Type (Figure 3.6.9)

B-Type is 3-span monolithic concrete bridge, or rigid-frame type concrete bridge. B-Type is also classified into two types, B1, pier height of which is less than 3.25m, and B2, whose pier height is greater than 3.25m.

Figure 3.6.9 – B1-Type Concrete Bridge

(3) BA-Type (Beton Armé), (Figures 3.6.12 and 3.6.13)

Most of the BA-Type concrete bridges are located in the Southern Line. The length of each span is 8 meters. Some of this type bridge use steel pipe piles filled with reinforced concrete. Due to their proximity to the sea, steel pipes are corroded and its supporting force is weakened. Reinforcement works of these piles are urgently needed.

There is no drawing of this type bridge, because bridge documents were burned or thrown away during the Civil War.

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Figure 3.6.10 - A – Type (PK 222 + 917, Northern Line)

Figure 3.6.11 - B – Type (PK 331 + 910, Northern Line)

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Figure 3.6.12 - BA – Type (PK 134 + 575, Southern Line)

Figure 3.6.13 - BA – Type (PK 180 + 786, Southern Line)

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3.6.2 Design Issues

3.6.2.1 Design Criteria

The main features of design characteristics of the Northern Line and the Southern Line are very similar. The major differences between the two lines are axle load, maximum gradient and length of crossing loops at stations.

The existing track and bridge structures of the Northern Line were designed for a maximum axle load of 15 tons, while the track and bridge structures of the Southern Line were designed for a maximum axle load of 20 tons. However, presently the actual bearing capacity is much less than that due to damage to bridges, culverts, missing rail fasteners, rotten sleepers, etc.

The maximum gradient on the Northern Line is at maximum of 6.5 %o and the length of crossing loop is 350 – 450 m compared with the maximum gradient of 7 %o and 450 – 600m long crossing loop on the Southern Line.

Railway infrastructure including bridges and culverts shall be designed based on these standards. Table 3.6.1 and Table 3.6.2 show design characteristics of the Northern Line and the Southern Line respectively.

It should be noted that in the case of complete reconstruction of bridges and culverts in the Northern Line an axle load of 20 tons shall be applied for the future improvement.

Table 3.6.1 – Design Characteristics of the Northern Line 1. Track gauge 1,000 mm 2. Minimum radius Main track 300 m (mostly 500 m) Side track 150 m 3. Maximum gradient 6.5 %o 4. Cant Cmax = 100 mm General cant = 6V2 / R ( h = ( S * V2 ) / ( g * R )) C : mm, V: km/h, R: m 5. Length of transition curve L > 0.6C L > 0.008CV 6. Gauge widening s = 20 mm R < 200 m s = 15 mm 200 m < R < 250 m s = 10 mm 250 m < R < 300 m s = 5 mm 300 m < R < 500 m 7. Crossing loop length of 350 – 450 m station 8. Distance between track Main track 5.0 m centers Side track 4.2 m 9. Axle load 15 tons 10. Width of roadbed formation L = 5.0 m Source: RRC

Table 3.6.2 – Design Characteristics of the Southern Line 1. Track gauge 1,000 mm 2. Minimum radius Main track 300 m (mostly 500 m) Side track 150 m 3. Maximum gradient 7.0 %o

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4. Cant Cmax = 100 mm General cant = 6V2 / R ( h = ( S * V2 ) / ( g * R )) C : mm, V : km/h, R : m 5. Length of transitional curve L > 0.6C L > 0.008CV 6. Gauge widening s = 20 mm R < 200 m s = 15 mm 200 m < R < 250 m s = 10 mm 250 m < R < 300 m s = 5 mm 300 m < R < 500 m 7. Crossing loop length of station 450 - 600 m 8. Distance between track centers Main track: 5.0 m Side track: 4.2 m 9. Axle load 20 tons 10. Width of roadbed formation L = 5.0 m Source: RRC

3.6.2.2 Construction gauge and rolling stock gauge

The railway structure shall not be build within the construction gauge. Figure 5.1 shows the construction gauge and rolling stock gauge of RRC.

Especially during rehabilitation works of bridges and culverts, special attention should be paid to the construction gauge.

Figure 3.6.14 – Construction gauge and rolling stock gauge. Source: RRC

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3.6.2.3 Design loading diagram

(1) Axle load

The design axle load is 15 tones in the Northern Line and 20 tones in the Southern Line respectively. The present railway infrastructures were designed for these axle loads. However, in the rehabilitation of railway bridges and culverts in the Northern Line an axle load of 20 tones will be applied for the preparation of the future improvement.

(2) Axle load diagram

Figure 3.6.15 shows the axle load diagram for the design of railway infrastructures of RRC. The bridges and culverts, which are to be completely reconstructed, shall be designed to carry the loads shown in Figure 3.6.15. The original designed axle load for the Northern Line is 15 tons, but when bridges will be completely reconstructed, an axle load of 20 tons will be applied in consideration of a future improvement plan.

Figure 3.6.15 – Axle Load (Loading Diagram) (Unit: ton) Source: RRC

3.6.2.4 Bridge Design Standard

The Cambodia Bridge Design Standard (CAM PW.04.102.99) shall be used for the design of all railway bridges in the Kingdom of Cambodia. The Cambodian Bridge Design Standard consists of the following complementary documents.

- CAM PW 04-101-99 Australian Bridge Design Code 1996 (the Base Document) and associated Commentary; - CAM PW 04-102-99 this document (the Amendments) which contains amendments and additions to the Base document; and - The Commentary on the Cambodian Bridge Design Standard which contains amendments and additions to the Commentary on the Base Document.

These documents shall be considered together. In the case of a conflict between the provisions of the Base Document and the provisions of the Amendments, the Amendments shall override the Base Document.

From time to time the Base Document may be changed by the Australian Authorities. Any such change shall be automatically incorporated into the Cambodian Bridge Design Standard unless it conflicts with a provision of the Amendments.

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For the purpose of regulating and interpreting the provisions of this Standard, the AUTHORITY shall be the Cambodian Ministry of Public Works and Transport.

3.6.3 Rehabilitation of Bridges of Culverts

3.6.3.1 General

A field surveys was conducted to find out the condition of damages to the bridges and culverts and then draw up a rehabilitation plan based on the extent of damages. Although there are a few trains running on the Northern Line and the Southern Line, because the rehabilitation works will be carried out during train operations, construction methods to minimize disruption to train operations have to be adopted.

(1) Steel Bridge

Steel bridges in the Northern Line damaged by explosives have generally suffered damage to the abutments, piers, and steel members near the bearings.

Whether the steel girders or steel members can be reused or not can be determined by observing at their external damages. Where the original superstructure is still in use but in a damaged condition, it can generally be repaired by welding on strengthening plates or replacing damaged members.

In some cases, all the structures were destroyed or the superstructure has effectively been destroyed. For the temporary restoration of these bridges, rail clusters supported by wooden sleepers are used. Complete reconstruction of these bridges and full replacement of superstructures are more straightforward, but will require planning and preparations to ensure success. (Please refer to 3.6.3.3)

Compared with the Northern Line, steel bridges in the Southern Line are in a relatively good condition. Major rehabilitation works for steel bridges include reinforcement of corroded steel piles and repainting of rusty steel members. In the case that steel piles are not heavily corroded, the old piles will be wrapped by haft-cut steel pipe and injecting concrete. If steel corrosion is severe, new piers will be constructed around the existing piers. (Please refer to 3.6.3.3)

(2) Concrete Bridge

Repairs to concrete bridges are likely to be more difficult due to the nature of damage suffered by these structures. In some cases, the concrete has been shattered and is badly fractured and the reinforcement has been ruptured and twisted by the force of explosion. In severe cases, such as Bridge No. N137 (B2 type) at PK 287.793, complete reconstruction into a three-cell box culvert might be the only solution.

Steel pipe piles of concrete bridges in the Southern Line are corroded and need to be reinforced, as above-mentioned.

Because the RC girders in the Northern Line have either suffered damages from explosion or been exposed to the force of explosion, the degree of damages must be checked thoroughly if these girders were to be reused. To this end, a nondestructive test shall be conducted as well as tests to verify whether the area around the bearings can bear the load.

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(3) Abutment and Pier

Repairs to abutments and piers will depend on the extent to which they are damaged. It will generally involve breaking back to sound concrete, cleaning and straightening reinforcement, splicing in new reinforcement as necessary and then casting concrete to restore the structure to its original shape.

In locations where abutment and pier damage has taken place, the superstructure is generally already supported on timber cribbing, and this can be left in place until the repair work has been completed, after which the superstructure can be transferred back onto its permanent supports again.

(4) Girder Types of Bridges

Efforts will be made to utilize as much as possible girders that can be repaired. If replacement is needed, similar types of girders will be assembled, in general, alongside the railway line and then moved laterally for installation.

When the abutment or piers are reusable and the superstructure needs to be replaced, the superstructures shall be designed in such a way as to be supported by the existing substructures. In particular, if the existing steel girders are to be replaced with concrete girders, the superstructure will become heavier, making it necessary to confirm the durability of abutments and piers when they are designed.

(5) Reconstruction during Train Operations

Because both the Northern Line and the Southern Line are in operation, the bridges and culverts have to be reconstructed and repaired without disrupting train services. Table 3.6.3 shows numbers of trains operated by RRC in recent years. In 2005 the Northern Line has a maximum of three trains per day servicing Phnom Penh and Sisophon while the Southern Line also has a maximum of one train per day servicing Phnom Penh and Sihanoukville.

Table 3.6.3 – Number of Trains Operated by RRC (Unit: numbers/year) Year 2000 2001 2002 2003 2004 2005 Northern Line Freight 306 567 1,202 216 294 654 Passenger 474 344 242 345 356 244 Sub-total 780 911 1,444 561 650 898 Southern Line Freight 485 482 504 919 779 351 Passenger 294 301 299 255 0 0 Sub-total 779 783 803 1,174 779 351 Total 1,559 1,694 2,247 1,735 1,429 1,249 Source: RRC

Given the limited number of trains in service per day, it is not necessary to relocate or realign the railway line. The reconstruction and repair works can be carried out at the current location of the structures between train services.

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If the replacement of girders is to be carried out during train operation, steel girders will be better than concrete girders because they are lighter. When determining which type of girders to use, it is necessary to take this into consideration.

In the case of large-scale reconstruction works, it is possible to stop train operation for a few days. However, disruption to the train operation timetable should be kept to the minimum.

3.6.3.2 Bridge Girder Replacement

Since the bridges will be reconstructed during train operating hours, it is important to employ a construction method that can minimize disruption to train services. It is feasible to use cranes and other heavy equipment when replacing the bridge girders, however, a lateral transfer method is preferred. By assembling girders alongside the railway line and transporting them laterally for installation, no heavy equipment is required. This method is ideal for bridges that need to be reconstructed completely because many of these sites lack access roads.

Complete bridge reconstruction and girder replacement will be carried out only on the Northern Line. As the maximum spans of steel bridges on the Northern Line measure only 11.55 m for the J Type and 35.2 m for the T Type, the lateral transfer method will suffice. This method is also applicable to concrete girders because their maximum span is 8 m.

Figure-3.6.16 below shows how to replace an old girder with a new one in order to minimize disruption to train operation.

(1) Before girder replacement, abutments and piers will be reconstructed in case full reconstruction of the bridge is needed. For the reconstruction of abutments and piers, the temporary- construction-girder method will be adopted. Please refer to Section 3.6.4, which describes the reconstruction method of culvers during train operation.

(2) Alongside the bridge where the girder will be replaced, a temporary supporting structure made of wooden sleepers will be built. The supporting structure will be of the same height as the abutment on which the girder is placed. The new girder will be assembled on the supporting structure.

(3) Similarly, a supporting structure made of wooden sleepers will be built on the opposite side of the bridge for the existing girder.

(4) A transfer beam with rollers will be installed on the abutments and the temporary supporting structure of wooden sleepers.

(5) First, the existing girder will be lifted to remove its shoe. Then, the existing girder will be lowered onto a transfer beam with rollers, which will be pulled by a steel wire rope.

(6) Second, the same procedure is repeated to transport the new girder to the track location. After putting the shoe on abutment, the new girder is jacked down. Replacement of the girder is complete.

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Ex isting Girder

Tra nsfer Beam with Roller

①

Rail Center

②

New Gir der

Plan

Ra il Level

Abutment Temporary Support (Sleeper)

Elevation (showing cross-section of abutment (left) and temporary support (right))

Figure 3.6.16 – Bridge Girder Replacement Method

Depending on the capability of the workers, it is possible to use this lateral transfer method to replace a girder in three hours: one hour for removing the existing beam, one hour for the shoe job, and one hour for installing the new girder. Even including preparation and clean-up, this girder replacement method requires only five to six hours, thus minimizing track occupancy.

3.6.3.3 Southern Line Corroded Steel Piles

Almost all steel pipe piles used as pier foundations of bridges between Kampot and Sihanoukville in the Southern Line are corroded due to the salty water from the sea and their supporting force is weakened. These piles shall be repaired and reinforced as soon as possible to ensure the safety of train operation.

The pier is a solid concrete structure with eight inclined piles. Each pile is filled with reinforced concrete and has an external diameter of 400 mm.

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(1) Rehabilitation Type A

In the case where the steel piles are not severely corroded, the old piles will be wrapped with half-cut steel pipes and the gap between the old and half-cut pipes will be filled with structural concrete. When filling in the concrete, it is necessary to affix the steel pipe to the existing pier to prevent the concrete from flowing out. Figure 3.6.17 shows this rehabilitation method of corroded steel piles.

Figure 3.6.17 – Southern Line Corroded Steel Piles - Rehabilitation Type A

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(2) Rehabilitation Type B

In the case that steel corrosion is severe, new piers will be constructed around the existing piers. Figure 3.6.18 shows this rehabilitation method. The steel pipe piles of Kampot Bridge (PK 168+519.50) were repaired with ADB loan in 2001 using this type of reconstruction method.

Figure 3.6.18 – Southern Line Corroded Steel Piles - Rehabilitation Type B

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3.6.4 Reconstruction Method of Culverts

The complete reconstruction of the culverts will also need to be carried out during train operation. Under such circumstances, the simplest and easiest way is to use temporary I-beam girder in the reconstruction.

Figure 3.6.19 shows the reconstruction method of box culverts and pipe culverts. The construction procedures are as follows:

(1) Set concrete supports for temporary girder. (2) Drive the piles into the ground to retain soil. Assemble and install a temporary I-beam girder for reconstruction work. (3) Excavate the ground under the railway where the culverts are to be constructed and lay the base concrete. (4) Construct the new culverts. Wrap any pipe culvert with protection concrete. (5) Backfill the reconstruction site and make roadbed by compaction. (6) Install track panel and spread the ballast.

Rail Level

Temporary I-Beam Girder (Cross Section) Pipe Culvert Box Culvert

Figure 3.6.19 – Reconstruction Method of Box and Pipe Culverts

This method can also minimize impact on the train operation. However, during the reconstruction period, the speed of trains will be limited to around 10 km/h at reconstruction sites. Because the concrete needs time for curing, the construction period for each site will require about two months. For utmost efficiency, the reconstruction works shall be carried out during the dry season when the water is at a low level.

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3.7 COST ESTIMATE

3.7.1 Basis Conditions of Cost Estimate

The Project cost is estimated based on the following basic conditions. 1) The unit prices of the various work items were decided based on a construction cost guide issued by MPWT on November 2005, various engineering estimates, and actual bidding prices of the on-going and previous railway and road projects in Cambodia. 2) Each cost was calculated by the US Dollars, breaking down into foreign portion and local portion. 3) Price level in this Report is as of June 2006. 4) The currency exchange rates applied are as followings: 1 THB=0.0263 USD 1 Euro=1.2826 USD

3.7.2 Composition of the Project Cost

The composition of the project cost is shown in Figure 3.7.1. The project cost consists of construction cost, engineering services cost, administrative cost, physical contingencies, land acquisition and compensation costs, and price escalation as shown below:

1. Construction Cost Foreign Portion Material cost (inc. Equipment) 2. E/S Cost [1.*6%]

3. Administrative Cost Labour cost [(1.+2.)*0.5%] Project Cost 4. Physical Contingencies [(1.+2.)*1.5%] Local Portion Material cost 5. Land Acquisition & (inc. Equipment) Compensation

6. Price Escalation [F.P.:(1.+2.+3.+4.+5.)*2%, Labour cost L.P.:(1.+2.+3.+4.+5.)*5%]

(Note: E/S: Engineering Services, F.P.: Foreign Portion, L.P.: Local Portion)

Figure 3.7.1 – Composition of the Project Cost

(1) Construction Cost

The construction cost is divided into foreign portion (F.P.) and local portion (L.P.). Furthermore, the each portion is divided into “material cost (including equipment cost)” and “labour cost”. Proportion of F.P. and L.P. of each item was decided in the same manner as those of the other projects in Cambodia.

(2) Engineering Services

Engineering service cost is assumed as 6% of the construction cost

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(3) Administrative Cost

Administrative cost is assumed as 0.5% of the total of construction and engineering costs. The cost is allocated as local portion.

(4) Land Acquisition and Compensation Cost

Land acquisition and compensation costs are calculated based on the land area to be acquired and unit price of compensation applied to the other projects. These costs are allocated as local portion.

(5) Physical Contingencies

Physical contingencies are assumed as 1.5% of the construction cost and the engineering services. The proportion of foreign and local portion in the cost is fixed as 60% and 40%.

(6) Price Escalation

Price escalation rate is assumed to be 2% per annum for foreign portion and 5% per annum for local portion. The price escalation is considered to the construction cost, the engineering services, the administrative cost, the land acquisition and compensation costs, and contingencies.

3.7.3 Project Cost Estimate

The summary of the estimated project cost of the main lines is shown in Table 3.7.1.

Table 3.7.1 – Summary of Estimated Project Cost (Unit: Million US Dollar) Southern Line Northern Line Missing Link All

1. Construction Cost 29.44 12.44 8.33 50.21

2. Engineering Service Cost 1.77 0.75 0.50 3.01

3. Administrative Cost 0.16 0.07 0.04 0.27

4. Contingencies 0.47 0.20 0.13 0.80

Sub-total (1.+2.+3.+4.) 31.83 13.45 9.01 54.29 5. Land Acquisition & Compensation Cost 0.33 1.26 2.15 3.74

Sub-total (1.+2.+3.+4.+5.) 32.16 14.71 11.16 58.03

6. Price Escalation 2.85 1.78 1.06 5.68

Total 35.01 16.49 12.21 63.71

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3.8 PROJECT IMPLEMENTATION SCHEDULE

Project Implementation Schedule is shown on Fig. 3.8. This schedule is prepared based on the assumption that funds from ADB, OPEC and other donor will be available from the second quarter of 2007, and the construction of Southern Line, Northern Line and the Missing Link can be commenced at the same timing.

Prior to the procurement of construction contracts, consultants shall be selected to assist the activities of PIT (Project Implementation Team).

Construction contracts are assumed to be commenced from July 2007. Construction period of the Missing Link is estimated as 2 years, and that of Southern Line and Northern Line are 2 and half years respectively.

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2006 2007 2008 2009 2010 123456789101112123456789101112123456789101112123456789101112123456789101112 ADB TA GMS Rehabilitation of the Railway in Cambodia Draft IEE (Initial Environmental Examination) Resettlement Plan, Poverty and Social Impact Assessment Report Preliminary Engineering Design Tender Documents Preparation Studies for Additional Scope of Work Final Report preparation

Procedure for ADB Loan Fact Finding Mission ADB Appraisal Mission Loan Approval Selection of Consultants From PQ to Contract Award Consulting Services

Selection of Contractor From PQ to Contract Award Procedure for Loan from other Donors Financial Arrangement for Loan Loan Request Appraisal & Pledge of Loan Exchange of Notes (E/N) Loan Agreement Assistance for Tendering From PQ to Contract Award

Land Acquisition & Resettlement Construction Clearing, De-mining and UXO Disposal at Missing Link Section (by force account) Missing Link Construction Trackwork Bridge and Structure Station Building Rehabilitation of Northern Line Trackwork Bridge and Structure Rehabilitation of Southern Line Trackwork Bridge and Structure

Implementation Schdule for Rehabilitation of the Railway in Cambodia

Figure.3.8 – Implementation Schedule

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4. ENVIRONMENTAL ASSESSMENT AND ENVIRONMENTAL MANAGEMENT PLAN

4.1 APPROACH

The following procedure has been adopted to examine the detailed baseline environment and assess the possible environmental impact on the physical, biological and socioeconomic resources that could result due to the implementation of the Project: (a) Field visits to all the Project-influenced sites by environmental specialists (b) Review and analysis of literature and field data collected from the various agencies (c) Discussion with local community and provincial authorities (d) Assessment of the present environmental scenario and identification of the impacts of the proposed project (e) Addressing of critical problems, considering technical, financial and institutional factors; and (f) Preparation of an environmental monitoring and management plan and mitigation measures.

4.2 INITIAL ENVIRONMENTAL EXAMINATION

The initial environmental examination has identified the important issues of the environment at the project influence areas that may be affected by the proposed development during design, construction and operation. The significance of residual impacts is assessed taking into account the degree to which mitigation measures can reduce potential impacts to internationally acceptable levels. In order to examine the baseline environment in more detail, including response of natural systems (air quality and noise, water quality, etc.), the Consultant has collected actual environmental conditions in the project areas using the survey form given in the Inception Report.

A draft IEE report has been prepared for the project (in Appendix 1) recommending environmental mitigation measures and an environmental management plan. The IEE defines the most effective mitigation measures and prepares an Environmental Management Plan (EMP) for the design, construction, and operation of the railway for inclusion in the general conditions of contract. The IEE also includes cost estimates for the EMP as required by ADB guidelines. In addition, the IEE has analysed the capacity of the MPWT with respect to environmental management of the subprojects. Recommendations have been made on institutional capacity building of the MPWT and other agencies.

4.3 ENVIRONMENTAL MITIGATION

Environmental mitigation, in principle, can avoid, reduce, remedy or compensate for an adverse effect of a project or provide environmental benefits. The most effective form of mitigation is to design the project effectively, thus avoiding environmental damage. Reduction involves the lessening of the severity of an impact that cannot be entirely avoided. When an impact has been reduced as far as (technically or financially) possible but still remains, re-modification of the damage is possible through some sort of repair mechanism. If this cannot be done, then mitigation can take the form of compensation.

Three broad types of mitigation measures are considered in the environmental study: (g) Measures that can be incorporated into the design of the project (h) Standard good working practices that might be expected from the contractors during construction (i) Specific mitigation measures identified by the environmental assessment report

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4.4 ENVIRONMENTAL MANAGEMENT PLAN

The Environmental Management Plan (EMP) has been prepared based on ADB Guidelines: (j) To define the environmental management principles and guidelines for the design, construction and operational phases of the project; (k) To describe practical mitigation measures that must be implemented at all project sites to prevent or mitigate negative environmental impacts; and (l) To establish the roles and responsibilities of all parties involved in the implementation of environmental controls. The EMP has clearly set out environmental goals and management measures, and is to be used by the Ministry of Public Works and Transport (MPWT), the ADB, the Supervising Consultant and the Contractors.

4.5 PUBLIC CONSULTATION AND INFORMATION DISCLOSURE

The IEE process has included public participation and consultation to help MPWT achieve public acceptance of the project. The ADB’s revised OM20-Environmental Considerations require one public consultation for category ‘B’ projects during project preparation stages. Public consultations have been undertaken in the provinces/districts and in national capital for the projects. It involved a wide range of participants representing provincial governments, community leaders, affected people, development partners, and NGOs. The main objective of the consultations in the environmental assessment was meant to achieve the following: (a) To make the public aware of the project (b) To ensure that the public is provided with opportunities to participate in the decision-making process and to influence decisions that will affect them (c) To identify the widest range of potential issues about the project as early as possible and, in some cases, to get them resolved (d) To ensure that government agencies and ministries are notified and consulted early in the process (e) To ensure that a broad range of perspectives is considered in any decision The consultation process has been documented considering the requirements of both the ADB and the Government of Cambodia and presented in the IEE. The following format was observed in the public consultation: (a) Introduction of the project and the most critical environmental issues involved (b) Identification of the basic developmental issues or problems being addressed by the proposed activities (c) Summary of the mitigation measures suggested by the IEE report to reduce / nullify the impacts of various environmental issues / problems, with the emphasis on sustainability. After study completion, the IEE report documenting the mitigation measures and consultation process will be submitted to PIU and ADB and will be available for public review. The affected people and the local communities expressed support for the project during the consultations as they clearly saw the benefit to the community as well as the region. Consultations and disclosures have been done during project implementation through: (a) The preparation and dissemination of a brochure in Khmer, explaining the affected peoples’ entitlements and the procedures for obtaining compensation for resettlements, temporary disturbances, trees, crops, and land for construction sites and recording grievances; and (b) Setting up a formal grievance redress committee with a representation from the affected people. CSC in association with the Contractor will be responsible for managing the effective grievance redress program.

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5. RESETTLEMENT PLAN AND SOCIO-ECONOMIC SURVEY

The Resettlement Plan (RP) was prepared as a detailed plan to mitigate the land acquisition impacts of the project. The specific objective of the RP is to ensure that the social and economic well-being of affected persons is improved or at least restored to the pre-project situation.

The Socio-Economic Survey was conducted along with the census of affected households and establishment owners and the inventory of their assets within the defined corridor of impact (COI) for the rail way. The census, inventory, and socio-economic survey operations were conducted in May to June 2006, to identify potential AP’s from the 4 sections of the rehabilitation project namely, the Missing Link/Poi Pet area, Northern Line from Sisophon and Phnom Penh, Phnom Penh proper, and the Southern Line from Phnom Penh to Sihanoukville.

5.1 RESETTLEMENT PLAN

The Resettlement Plan (RP) was drawn up to determine the extent of impact of the planned rail way rehabilitation on the people living close to the rail way tracks. In the case of the Missing Link area from the Cambodian-Thai border in Poi Pet to Sisophon, people who have settled on the old alignment need to move out to give way to the rail way infrastructure that will be re-built according to the project plan and design.

The inventory of land and property conducted in Poi Pet that determined the AP’s was based on a defined 7.5 m of corridor of impact (COI) by the PPTA technical team from the railway center line, giving the COI a width of 15 m. However, realizing the magnitude of social impact, the determination of resettlement and replacement costs assumed a COI of 3.5 m from the rail way center line (giving a total width of 7 m) drawing from the advice of the engineering team to lessen as much as possible the number of AP’s.

As the rail way approaches urban communities of the Northern and Southern Lines, built up areas dot the adjacent lands. To minimize as much as possible the impact on the people living on the side of the tracks, the engineering team is studying a possible 3.5 m COI from the track center line with a total COI width of 7 m to accommodate the railway infrastructure as well as clearance to the passing trains. The same COI was used by the census, inventory, and socio-economic survey teams to identify affected persons (AP’s) in the populated areas traversed by the rail way beyond Poi Pet.

From the detailed census of possible AP’s and inventory of assets in the entire rail way network, 1,145 owners of housing structures, establishments/shops, and minor structures will be affected. Of the said total figure, 410 will experience minor adverse effects while 735 will be affected and stand to be physically displaced.

Prior to the census, inventory, and socio-economic survey, a rapid assessment done for Poipet in April 2006 to assist the Royal Government of Cambodia (RCG) on which option to choose in re-constructing the rail way from Kilometer 0 of the Poi Pet border to Kilometer 2.89. There were 3 options presented by the engineering team: Option 1 is to restore the missing tracks on the old alignment from Kilometer 0 to Kilometer 2.89. Option 2 plans to construct the rail way on the north side of the old alignment on the existing National Road (NR) 5 taking about 2 kms of the median of the major highway running through the Poipet commune and then assuming the old alignment beyond the 3 kms from the Thai border. Option 3 is re-aligning the rail way at the southern side of the old alignment where RCG will have to purchase private land on which to build the rail way within the first 3 kms (or

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so) from the border and then assuming the old alignment beyond Kilometer 3 up to Kilometer 48 in Sisophon.

After the ADB Fact Finding Mission visit in May 29 to June 9, 2006, RCG decided to re-construct the railway via Option 1 with an on-site resettlement for the AP’s and then to proceed with the rest of the rehabilitation works needed for the rest of the Northern Line, work on the rail ways including the branch line within Phnom Penh, and down to the Southern Line until Sihanoukville.

Results of the community consultations done alongside the census, inventory, and socio-economic surveys in the project area reveal that the AP’s are open to be relocated off-site for an opportunity to occupy a land of their own and at the same time in consideration of a government project – the rail way rehabilitation/reconstruction – that they perceive to provide more income opportunities in the future. Also, characteristics of the AP’s are too varied that no single resettlement approach is enough to address/mitigate the impacts of the rehabilitation project. On-site resettlement is offered to AP’s from the Missing Link/Poi Pet while combination of off-site and on-site resettlement for the AP’s from the Northern Line is possible. Because of small number of AP’s needing relocation from Phnom Penh and Southern Line (14 households total), they may be offered cash compensation for alternative home plots. RCG however strongly considers to explore a possibility of off-site resettlement for AP’s from the Missing Link/Poi Pet to address the expressed need of many AP’s for security of land tenure and improved housing conditions. AP’s are willing to pay for the land albeit through long and affordable amortizations.

Entitlements to different compensation forms were defined with reference to the particular condition of the affected persons. Replacement land, compensation of loss of land use, dwelling units and shops and allowances and income restoration programs are among the major means of alleviating the conditions of the potential AP’s.

The Ministry of Public Works and Transportation (MPWT) be in-charge of the overall supervision of the implementation of the resettlement component. The Royal Railways of Cambodia (RRC), primarily the government agency to benefit from the railway rehabilitation, is expected to work closely with the MPWT in all aspects of the rehabilitation work including resettlement of affected families.

Serious consideration should be done however to further strengthen the roles of Provincial, District/City, and Commune Resettlement Committees not only during resettlement preparatory and data gathering work but to increasing their participation in the planning, actual resettlement, and post resettlement activities.

Projects rates used for the costing of resettlement and compensation were based on a rapid Replacement Cost Study conducted in third week of June 2006 as well as from a similar study in the Approved Resettlement Plan of the GMS Cambodia Road Improvement Project conducted in 2005. Information on land prices were obtained by consultants for the railway rehabilitation PPTA through interviews and actual site visits as well as through studies done by the census and inventory teams. The estimated cost for resettlement and compensation of AP’s is US$ 3,748,419.97.

This RP spells out the framework with which the resettlement work for the GMS Rehabilitation of the Railway in Cambodia project under ADB TA 6251-REG will be undertaken. However, adjustments to this plan, particularly the list of AP’s and resettlement and compensation costs depend on the conduct of a Detailed Measurement Survey (DMS) and a census for the final identification of AP’s upon the completion of detailed design of the rehabilitation works and after the actual COI is marked on the ground.

5.2 PUBLIC CONSULTATION AND DISCLOSURE PLAN

Community meetings will basically be the methodology for information dissemination. Preparatory activities for the planned railway rehabilitation which concern the affected persons should not proceed

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without proper disclosure. Among the pre-construction activities which needed to be disseminated are:

i. resettlement options, rights, and entitlements ii. marking out of the alignment and other physical aspects of project iii. conduct of identification survey and DMS iv. plans/consultation as to the final widths or alignments to be taken v. possible rights of AP’s of continued occupation and land use in ROW

The initial community meeting/consultation must begin by explaining possible extent of impact, entitlement policy and resettlement options, grievance procedures and lastly requesting for their support and cooperation.

Disclosure and consultations are just 2 of the avenues that facilitate information dissemination as well as participation of the people in resettlement work. It is important that affected persons be involved in:

i. agreement on compensation and any relocation of land and properties ii. selection and development of any replacement land or in receiving compensation (if preferred) iii. restoration of income and livelihoods iv. restoration of community facilities

5.3 SOCIO-ECONOMIC PROFILE OF AFFECTED PEOPLE (AP’S)

Seventy five percent (75%) of the affected households and establishment owners are male-headed while the remaining 25% are female-headed. Almost all or 99% of AP-households surveyed from the entire length of the rail way network are Khmer. This indicates that there is no need to develop an ethnic minority development plan due to the economically and culturally homogenous nature of the potential AP’s. The average monthly household income of the AP-households is US$158. Respondents from the Missing Link/Poi Pet compared to the AP’s from the other project areas, have the highest average household income at US$195 per month. Half or 50% of those surveyed in all areas are hired labourers, business owners and self-employed people, as well as moto-dup drivers.

5.4 RESETTLEMENT WORKSHOPS

Public consultations may be conducted through the workshop approach for a more systematic way of eliciting individual responses are well as responses that have passed through group processes. Group dynamics in workshops allow awareness raising, deeper understanding of issues and ideas, emergence of opinions and perceptions, and possible behaviour modifications. A workshop facilitator may be able to make use of workshop modules geared toward the group of local government representatives and technical staff on one hand, and the community or village leaders and AP’s (community members) such as household heads who may be divided in workshop groups according to socio-economic status, sex, ethnic group (if AP’s are diverse ethnically), and education level.

Workshops make possible the inputs for the planning and implementation coming from the participants themselves. Sessions conducted for local government officials and technical staff will pave the way for valuable information to be documented and enhance the activities related to assistance for resettlement activities. Information and views coming from the AP’s and other stakeholders themselves will help refine the provisions in the resettlement support to suit the needs and practicable expectations of the target beneficiaries.

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6. ECONOMIC AND FINANCIAL ANALYSIS

6.1 INTRODUCTION

This section of the report contains an assessment of the Economic Internal Rates of Return (EIRR) likely to be generated by the rehabilitation of the Cambodian Railway, together with a financial assessment of the future provision of passenger services on the railway. In addition, as required by the TOR, it addresses the sensitivity testing of the economic results, summarizes the financial analysis of the ADTA project, provides a qualitative analysis of project benefit distribution and finally presents recommendations for the monitoring of project economic benefits.

6.2 ASSESSMENT OF PROJECT NET ECONOMIC BENEFITS

6.2.1 Objectives and scope of the economic assessment

As defined in the project TOR, the main objective of the economic assessment is establish the net benefit to Cambodia of rehabilitating the existing railway network and of restoring the railway connection with Thailand. The assessment was based on the demand forecast developed in the associated restructuring ADTA. A subsidiary requirement of the core TOR is to assess the future demand for, and financial impact of, railway passenger services, including the estimation of the probable level of net subsidy needed to maintain these services.

In order to satisfy these objectives, it has been necessary to undertake a number of detailed tasks related to the specification of the analytical framework (including definition of the project base case) and to the measurement of the project’s economic costs and benefits. The latter in particular has included:

• Estimation, and application, of shadow prices for all input and output factors based on border (CIF) prices for all imported items (such as rolling stock and track construction materials and maintenance equipment) and resource costs for non-tradable items, such as labour;

• Conversion of railway traffic demand forecasts into locomotive and rolling stock investment needs;

• Estimation of origin-destination vehicle flows on the national roads (NR’s 3,4 and 5) running parallel to the railway and from which it may be expected that the rehabilitated railway will divert demand;

• Assessment of the level of maintenance cost for the above roads and of the share of this cost which would be borne by vehicles which would be removed from the roads, following rehabilitation of the railway;

• Estimation of road accident and casualty rates for the relevant national roads and attribution of accident costs to the level of traffic likely to be diverted to rail;

• Detailed route costing of road and rail traffic in the relevant transport corridors, as a basis for estimating comparative transport costs;

• Estimation of the comparative fuel consumption rates of road and rail vehicles for individual routes in the relevant transport corridors, as a basis for estimating fuel, CO2 emission, and transport cost savings; and

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• Preparation of railway passenger demand forecasts, based on an analysis of recent road vehicle count and O-D survey data, as well as a limited survey of prevailing public transport fares.

Completion of these tasks has been inordinately time-consuming mainly as a result of data gaps and deficiencies, especially in the area of road traffic analysis and road maintenance costing.

6.2.2 Description of approach used for the economic assessment

(i) Definition of the base case

The base case against which the project benefits (and costs) have been measured has been defined as a “Do Nothing”, or nil investment case, involving the gradual run down of the track infrastructure and the imposition, for safety reasons, of increasingly more severe speed restrictions. It was assumed that this would lead to an accelerated diversion of traffic to other modes (to road transport in particular) and to the eventual inoperability of the railway.

In consultation with the consulting team from the ADTA project, it was estimated that, in the absence of rehabilitation, freight services on the Northern Line would cease by 2015 and on the Southern Line by 2020. The situation of the remaining limited passenger service on the Northern Line reflects a much more rapid pattern of decline, with railway passenger volumes falling at a rate averaging nearly 25 per cent per year since 1998. Accordingly it was assumed that, in the absence of rehabilitation, these services would cease by the end of 2010.

These assumptions were built into the freight traffic demand forecasts produced by the ADTA project team and the passenger demand forecasts prepared by the transport economist from the rehabilitation project team.

The net benefits of the rehabilitation project were measured incrementally against this “Do Nothing” case.

(ii) Definition of the project cases

The overall project has three technical components: the Southern Line, the currently operating Northern Line between Phnom Penh and Sisophon and the “Missing Link” from Sisophon to the Thai border. However, it was considered desirable (for the purpose of evaluation) to group together the Missing Link with the remainder of the Northern Line, because the latter could never be viable in its own right.

6.2.3 Initial traffic demand forecasts

The railway traffic demand forecasts used as the basis for the economic assessment of the mainline rehabilitation project were adapted from initial forecasts prepared in April 2006 by the consultants engaged in the parallel ADTA project. These initial forecasts were documented in the Traffic and Financial Analysis Report1 and consist of projections of freight and passenger transport demand, for each of the two main project components. Each forecast contains three growth scenarios, reflecting respectively an expectation of negative growth in the Base Case, and of low (3.5-5 per cent) and high (5-7 per cent) economic growth in the Rehabilitation cases.

The various forecast cases are denoted as follows:

• BC - “Do nothing” base case, cessation of all services by 2020 • R1 - Rehabilitation case, low growth • R2 - Rehabilitation case, high growth

1 Canarail Consultants for the Asian Development Bank, April 2006.

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With the exception of the Thai container traffic included in both rehabilitation cases, the traffic included in the rehabilitation cases would be diverted from road. It was assumed that the container traffic from Thailand would be diverted from sea transport between Laem Chabang and Sihanoukville, via Singapore, and from road transport between Sihanoukville and Phnom Penh. In the case of the cement traffic expected to be generated by the new cement plants in Kampot province, it was assumed that the alternative would be to transport this traffic by road, so that it was treated as if it were traffic diverting from road.

6.2.4 Revision of initial traffic forecasts

Following the preparation of the initial demand forecast, meetings held with all three companies either now involved or soon to be involved in the construction of new cement plants in Kampot Province yielded additional information which challenged the basis and assumptions of the earlier demand forecast prepared in April/May. This information was used to revise this forecast for cement traffic and cement input traffic on both main-lines, as well as to generate specific forecasts of cement and cement input traffic demand for the two cement branch-lines and for the Phnom Penh Port Access Line (the evaluation of which is detailed in Volume 2).

In addition, the requirement for an incremental assessment of petroleum traffic on the Phnom Penh Port Access Line required that the earlier petroleum traffic forecast also be reviewed and adjusted as necessary.

(i) Cement traffic forecast

Three companies are currently involved either in the advanced planning or construction of cement plants in Kampot Province about 130-150 km southwest of Phnom Penh. They are:

• Kampot Cement, the Cambodian subsidiary of the Siam Cement Company of Thailand, which has a plant with an initial capacity of 3,100 tonnes per day, or 1.1 million tonnes per year, under construction at Touk Meas. This company plans to commence production as early as July 2007 and has identified the potential to move 80 per cent of its production (initially in bagged form) to Phnom Penh by rail. Realization of this potential would require a commitment to accelerated construction of a branchline of approximately 6 km as well as to the accelerated rehabilitation of the main-line section of about 119 km linking the plant site with Phnom Penh.

• Lafarge Cement of France which is in the process of forming a joint venture with the Cambodian company AZ for the purpose of building a new dry process cement factory adjacent to an old disused wet process factory located about 12 km northeast of Kampot City. The company expects to start construction of its new plant soon and to start production by mid-2008, with an initial capacity of about 1.0 million tonnes per year. Lafarge has recently expressed a strong interest in using rail for the transport of both its factory production and its input materials (given as about 250,000 tonnes per year of coal and about 60,000 tonnes per year of gypsum). The rail connection of the Lafarge plant is made easier by the retention of the formation of a branch-line which used to serve the old cement plant.

• Thai Boon Roong which is a diversified Cambodian company with interests in trucking shipping and hotel ownership/operation and is now proceeding with the construction of a cement factory about 13 km northeast of the old cement factory. Discussions with this company concluded with a strong indication that it was most unlikely to be a user of rail, especially given the owner’s trucking interests, scepticism about rail service improvements and recent investment in a large cement road tanker fleet. Planned capacity is understood to be

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400,000 tonnes per year and production is expected to start around the last quarter of 2008. Construction of an extension of the branch-line to the Lafarge plant could be expensive as the line would have to be built on a new formation.

The production plans of these companies were assessed against recent growth trends in the domestic consumption of cement. Between 1998 and 2005 the volume of cement imported into Cambodia grew at more than twice the rate of GDP growth (15.3 per cent vs. 7.7 per cent), as may be seen from Figure 6.2.1.

2000 25000

20000 1500

15000 Cambodian Riel Tonnes x 1000 1000 10000 (Billion) 500 5000

0 0 1998 1999 2000 2001 2002 2003 2004 2005

Total cement import 446.56 562.7 713.11 850.42 966.14 947.12 1051.1 1467 volume GDP 11545 12994 14089 14863 15643 16745 18032 19547

Source: Cambodian Customs Department; National Institute of Statistics

Figure 6.2.1: Cement consumption vs. GDP growth, Cambodia

The initial forecast presented low and high growth scenarios for cement demand at 7 per cent and 10 per cent respectively (corresponding with low and high GDP growth rates of 3.5 and 7 per cent). Discussions with cement producers suggest that the high growth scenario may be unduly conservative and this view is certainly reinforced by the recent trend in domestic cement demand. Early indications from monthly import statistics suggest that cement demand will reach 1.7 million tonnes in 2006, or some 13 per cent above its level in 2005. One cement company is basing its planning on a sustained growth of 12 per cent per year, and in the light of recent trends, the growth range adopted for this forecast revision is 7-12 per cent per year.

Present plans indicate that by 2009 the combined production of the three plants could be as much as 2.7 million tonnes per year, which would compare with a high growth domestic consumption figure of about 2.3 million tonnes per year, suggesting a need to export the surplus. A possible export market for Cambodian cement exists in the Mekong Delta region of Viet Nam which is estimated to have the capacity to produce less than 50 per cent of its local requirement of cement, but Cambodian producers would face stiff competition in this market from the low cost producers of northern Viet Nam. It is likely that most of any volume for export would be transported across the border by road, leaving rail to move domestic tonnage for distribution within Phnom Penh and for transfer by inland water transport to the major provincial centres to the north and northwest of Phnom Penh. It is possible that up to 50 per cent of the Siem Reap market volume could be supplied from domestic production with the balance being supplied from Thailand. One company has estimated that 80 per cent of its production would be available for haulage to Phnom Penh by rail, with 50 per cent for distribution within Phnom Penh and 30 per cent (up to 300,000 tonnes) for distribution to the provinces from Phnom Penh by IWT.

Table 6.2.1 shows the revised forecast for cement consumption, production, and distribution by rail for the period 2007-2030. Only the production of the Touk Meas (Kampot Cement Company)

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and Lafarge plants was considered to offer potential for cement haulage by rail – the remaining operator (Thai Boong Roong) was expected to move its inputs and outputs entirely by road.

Table 6.2.1: Forecast of cement consumption, domestic production and rail distribution

Item 2007 2008 2009 2010 2015 2020 2030 Domestic consumption (tonnes x 1000), low 1819 1946 2083 2228 3125 4384 7140 Domestic consumption (tonnes x 1000), high 1904 2132 2346 2627 4630 8160 13291 Domestic production (tonnes x 1000) 456 1732 2700 3200 4400 5600 6800 Potential production for rail transport (t x 1000) 456 1632 2300 2700 3700 4700 5700 Indicated production for dom. Market (t x 1000) 456 1732 2025 2176 3080 4088 6120 Indicated export volume (tonnes x 1000) 0 0 675 1024 1320 1512 680 Indic.import vol. from Thailand (t x 1000), low 1363 215 58 52 45 296 1020 Indic.import vol. from Thailand (t x 1000), high 1448 401 321 451 1550 4072 7171 Rail share of domestic production (t x 1000) 228 929 1740 2160 2960 3760 4560

Combination of the rail transport share of domestic production with the import volumes expected to be transported by rail from Thailand resulted in the forecast of the cement tonnage and tonne-km task for the Southern and Northern Lines, as shown in Table 6.2.2.

Table 6.2.2: Consolidated cement traffic forecast for Southern and Northern Lines

Item Cement, Tonnes x 1,000 2007 2008 2009 2010 2015 2020 2030 Low Forecast

Southern Line 250 932 1741 2167 2966 3799 4693 Northern Line 225 30 6 17 20 130 449 Both Lines 475 962 1747 2184 2986 3929 5142

High forecast

Southern Line 250 932 1741 2217 3163 4292 5497 Northern Line 225 30 6 149 682 1792 3155 Both Lines 475 962 1747 2366 3845 6084 8653

Cement, Tonne-Km x 1,000,000 Low Forecast

Southern Line 31.36 119.72 237.57 300.90 414.84 538.31 679.19 Northern Line 75.84 9.96 2.14 1.97 2.28 14.82 51.18 Both Lines 107.20 129.68 239.71 302.87 417.12 553.13 730.36

High forecast

Southern Line 31.36 119.72 237.57 313.28 463.16 659.56 876.69 Northern Line 75.84 9.96 2.14 16.97 77.75 204.24 359.72 Both Lines 107.20 129.68 239.71 330.26 540.91 863.80 1236.40

Notes: (1) “Do Nothing” volumes are included before 2010 (2) Southern Line volumes include tonnage moving between Touk Meas and Phnom Penh from 2007, between Lafarge and Phnom Penh from 2008 and between Oknha Mong and Phnom Penh from 2010

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In the low forecast case (which was used as the base case for the main rehabilitation project evaluation), this cement forecast revision would substantially increase the Southern Line and overall tonne-km forecast, as shown in Table 6.2.3.

Table 6.2.3: Comparison of revised with main forecast, cement, low growth scenario

Unit: Million Tonne-Km 2006 2010 2015 2020 2030 Southern Line Main forecast (April 2006) 10.8 90.5 149.7 275.0 332.5 Revision (August 2006) 10.8 300.9 414.8 538.3 679.2

Northern Line Main forecast (April 2006) 88.3 72.9 44.5 57.6 53.5 Revision (August 2006) 88.3 2.0 2.3 14.8 51.2

Both Lines Main forecast (April 2006) 99.1 163.4 194.2 332.6 386.0 Revision (August 2006) 99.1 302.9 417.1 553.1 730.4

(ii) Cement input traffic forecast

The forecast of cement input volumes to be transported by rail was based on the production volume forecast using input/output ratios derived from information supplied by Kampot Cement and Lafarge.

Kampot Cement indicated a requirement to transport to its plant at Touk Meas about 100,000 tonnes per year of coal, 50,000 tonnes per year of gypsum, 20,000 tonnes per year of heavy fuel oil and 300 tonnes per day (109,000 tonnes per year) of biomass. The coal and gypsum requirement was assumed to be shipped through Sihanoukville Port as soon as the Touk Meas branch-line is available for operation in mid-2007. This assumption was based on advice received in early September 2006 that the Sihanoukville Port Long Term Development Plan would at last be able to accommodate handling of bulk commodities at the port. Heavy fuel oil could be rail-hauled from the Stung Hav Terminal once the branch-line to the new plant is available for operation. Biomass volume would be sourced from the Siem Reap area and possibly moved by barge to Phnom Penh for onward movement to the Touk Meas plant by rail, as from the commencement of rail operations on the Phnom Penh Port Access Line during the last quarter of 2008.

Larfage Cement indicated a requirement to transport about 250,000 tonnes per year of coal (mainly for its planned coal-fired power generating plant) and about 60,000 tonnes per year of gypsum. Lafarge has also expressed a preference to import these materials through Sihanoukville, and it was assumed that this would occur once the branch-line to the Lafarge plant is in operation ( expected mid 2008).

The forecast requirement for the rail transport of cement inputs is summarized in Table 6.2.4

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Table 6.2.4: Forecast of cement input transport volume Item Cement input materials, Tonnes x 1,000 2007 2008 2009 2010 2015 2020 2030

Rail to Touk Meas

From Sihanoukville Port Coal 40 100 115 133 177 221 265 Gypsum 20 50 57 66 88 110 133 Sub-total 60 150 172 199 265 231 398

From Stung Hav Port Heavy Fuel Oil 8 20 23 27 35 44 53

From Siem Reap (via Phnom Penh IWT) Biomass 27 126 145 194 242 290

Total 68 197 321 371 494 617 741

Rail to Lafarge Cement

From Sihanoukville Port Coal 125 250 300 425 550 675 Gypsum 30 60 72 102 132 162 Total 155 310 372 527 682 837

Cement input materials, Tonne-Km x 1,000,000 2007 2008 2009 2010 2015 2020 2030 Rail to Touk Meas

From Sihanoukville Port Coal 6.0 15.0 17.2 20.0 26.5 33.1 39.7 Gypsum 3.0 7.5 8.6 9.9 13.2 16.5 19.9 Sub-total 9.0 22.5 25.8 29.9 39.7 49.6 59.6

From Stung Hav Port Heavy Fuel Oil 1.2 2.9 3.4 3.9 5.2 6.5 7.7

From Siem Reap (via Phnom Penh IWT) Biomass 3.5 16.1 18.6 24.8 31.0 37.2

Total 10.2 28.9 45.3 52.4 69.7 87.1 104.5

Rail to Lafarge Cement

From Sihanoukville Port Coal 13.5 27.1 32.5 46.0 59.5 73.0 Gypsum 3.2 6.5 7.8 11.0 14.3 17.5 Total 16.7 33.6 40.3 57.0 73.8 90.5

Note: (1) Cement assumed to be transported to new intermodal terminal near Km 14 on Southern Line and to GTW for transfer to IWT (2) Coal and gypsum assumed to be transported from Sihanoukville Port (3) HFO assumed to be transported from Stung Hav Port (4) Biomass assumed to be transported from Green Trade Warehouse complex (5) Phnom Penh Port Access Line assumed to start operation in last quarter of 2008

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(iii) Petroleum traffic forecast

The initial traffic forecast projected petroleum traffic volumes for both mainlines. The forecast identified an origin for the traffic on the Southern Line (the petroleum distribution terminal at Stung Hav Port near Sihanoukville), but was silent on the destination in Phnom Penh. In fact, almost all of the diesel oil now moved on the Southern Line is delivered to Sokimex at their distribution depot near the Tonle Sap River. This depot is connected to Phnom Penh Railway Station by a spur line off the Port Access Line and Sokimex receives for discharge approximately 13 tanker wagons every three days. Rehabilitation of the Port Access Line up to gate of the Sokimex depot will permit safe rail carriage of a wider range of petroleum products in longer trainloads than is currently possible.

Sokimex is the market leader in the distribution of petroleum within Cambodia, with a market share estimated at 30 per cent (equivalent to a sales volume of about 300,000 tonnes per year). Last year (2005) Sokimex is estimated to have received about 226,000 tonnes of petroleum at its Phnom Penh Depot – 70,000 tonnes of diesel by rail and 156,000 tonnes of a wide range of petroleum products by inland waterway transport. Another 74,000 tonnes is estimated to have been distributed directly to service stations by road. Some of this volume may have the potential to transfer to rail following rehabilitation of the Southern and Port Access lines, but a significant portion is likely to be diverted from IWT.

The current annual throughput capacity of the distribution depot is not known, but based on the capacity of the storage tanks at the site (estimated at about 27,000 tonnes) and an assumed annual stock turn of about 12, it may be estimated that that the facility would have capacity to handle about 325,000 tonnes of refined petroleum product per year. This would be insufficient to handle the volume of petroleum projected in the initial forecast to be delivered to Phnom Penh by rail, even in the low growth scenario. However, Sokimex does appear to have sufficient land area in and around the depot site to expand its storage capacity, possibly by as much as two-fold.

For the revised forecast it was assumed that the Sokimex share of petroleum volume delivered by rail to Phnom Penh would decline from its present level of 100 per cent to 40-50 per cent by 2030, depending on the growth scenario. The resulting volume projection for Sokimex in the low and high growth scenarios is shown in Table 6.2.5.

In addition to Sokimex, the Caltex (now Chevron) company has a rail connected petroleum distribution depot located beside the Tonle Sap River. The company leases the land for its facility from the neighbouring Green Trade Warehousing company. This facility is currently under “care and maintenance”, but in good condition. It last received rail deliveries two years ago, but the company distribution manager expressed interest in reviving the use of rail provided that rail service could in future be provided at a lower cost than that of road transport. Caltex is estimated to have a market share of about 10 per cent, which would give it a current annual distribution volume of about 100,000 tonnes. In 2004, Caltex is estimated to have received about 40 per cent of the total diesel volume transported by rail to Phnom Penh, comprising nearly 50 per cent of its domestic distribution volume. On the assumption that the Port Access Line could be rehabilitated by mid-2008, it is possible that Caltex could again commit about half of its petroleum import volume to rail. The resulting forecast volumes for Caltex under both the high and low growth scenarios are also given in Table 6.2.5.

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Table 6.2.5: Forecast of petroleum traffic on Phnom Penh Port Access Line

Item 2007 2008 2009 2010 2015 2020 2030 Sokimex rail traffic forecast

No rehabilitation forecast, low 76.14 79.19 82.36 77.87 94.74 129.67

Forecast rail volume (Tonnes x 1000),Rehabilitation 87 90 94 167 232 447 544 low Sokimex share of rail volume % 0.9 1.0 1.0 0.8 0.7 0.5 0.5 Sokimex share of rail volume (Tonnes x 1000) , low 76 84 94 134 162 224 272 Rail share of Sokimex total volume % 0.23 0.25 0.27 0.37 0.37 0.41 0.41 Rail distance Stung Hav - Sokimex Phnom Penh (Km) 259 259 259 259 259 259 259 Sokimex rail traffic volume (TKM x 1000), low 19721 21667 24361 34602 42062 57887 70448

Forecast rail volume (Tonnes x 1000), 0 4 12 56 68 94 272 incremental,low*

Forecast rail volume (Tonnes x 1000), Rehabilitation 92 98 105 192 1070 1391 1710 high Sokimex share of rail volume % 0.8 1.0 1.0 0.8 0.4 0.4 0.4 Sokimex share of rail volume (Tonnes x 1000) , high 76 84 105 154 428 556 684 Rail share of Sokimex total volume % 0.22 0.23 0.27 0.37 0.73 0.67 0.65 Rail distance Stung Hav - Phnom Penh (Km) 259 259 259 259 259 259 259

Sokimex rail traffic volume (TKM x 1000), high 19721 21683 27295 39872 110852 144108 177156

Forecast rail volume (Tonnes x 1000), incremental, 0 5 23 76 333 427 684 high*

Caltex rail traffic forecast

Total petroleum consumption, low (Tonnes x 1000) 1125 1170 1217 1480 1801 2191 1125 Caltex market share % 0.10 0.10 0.10 0.10 0.10 0.10 0.10 Caltex volume (Tonnes x 1000), low 112 117 122 148 180 219 112

Estimated Caltex share by rail % 0.50 0.50 0.50 0.55 0.60 0.60 0.50 Estimated Caltex share by rail, low (Tonnes x 1000) 14 58 61 81 108 131 14 Rail distance Stung Hav - Caltex Phnom Penh (Km) 260 260 260 260 260 260 260 Caltex rail traffic volume (TKM x 1000), low 3656 15208 15816 21167 28095 34182 3656

Total petroleum consumption, high (Tonnes x 1000) 1225 1311 1403 1967 2759 3521 1225 Caltex market share % 0.10 0.10 0.10 0.10 0.10 0.10 0.10 Caltex volume (Tonnes x 1000), high 123 131 140 197 276 352 123

Estimated Caltex share by rail % 0.50 0.50 0.50 0.55 0.60 0.60 0.50 Estimated Caltex share by rail, high (Tonnes x 15 66 70 108 166 211 15 1000) Rail distance Stung Hav - Caltex Phnom Penh (Km) 260 260 260 260 260 260 260 Caltex rail traffic volume (TKM x 1000), high 3981 17040 18233 28130 43041 54932 3981

* Incremental forecasts are relevant for Sokimex traffic only. They reflect the difference between the "with” and the "without” rehabilitation forecasts and are used to measure the incremental net benefit of the Sokimex traffic.

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6.2.5 Summary of revised traffic forecasts The revised forecasts for the Low and High Growth cases are summarised respectively in Tables 6.2.6 and 6.2.7. Only the demand projections for Container and Passenger traffic remain unchanged from the initial forecast.

Table 6.2.6 Traffic Forecast, Low Growth Case (Million tonne-km or passenger-km) Cur- Construction Period Benefit Period Railway Line Type of rent and Case Traffic 2006 2007 2008 2009 2010 2015 2020 2030 Cement 10.8 9.2 6.7 4.9 1.5 1.5 0.9 0.0 Southern Line Petroleum 18.5 19.2 20.0 20.8 19.7 23.9 32.7 0.0 without Containers 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Project Total freight 29.3 28.5 26.7 25.7 21.2 25.4 33.6 0.0 Passengers 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Cement 10.8 41.6 165.4 316.4 393.4 541.5 699.1 874.2 Petroleum 18.5 19.2 25.3 39.6 50.4 63.2 98.2 119.5 Southern Line Containers 0.0 0.0 0.0 0.0 52.9 133.2 155.7 244.5 with Project Total freight 29.3 60.8 190.7 355.9 496.7 737.9 953.0 1238.2 Passengers 0.0 0.0 0.0 0.0 6.2 21.3 37.3 97.6 Cement 88.3 83.4 74.4 63.7 51.1 0.0 0.0 0.0 Northern Line Petroleum 2.8 2.9 3.1 3.2 3.3 3.5 0.0 0.0 without Containers 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Project Total freight 91.1 86.4 77.4 66.9 54.4 3.5 0.0 0.0 Passengers 3.5 2.3 1.4 0.8 0.5 0.0 0.0 0.0 Cement 88.3 83.4 74.4 63.7 2.0 2.3 14.8 51.2 Petroleum 2.8 2.9 3.1 3.2 8.4 11.6 15.9 19.4 Northern Line Containers 0.0 0.0 0.0 0.0 72.2 115.5 184.8 301.0 with Project Total freight 91.1 86.3 77.5 66.9 82.6 129.4 215.5 371.6 Passengers 3.5 2.3 1.4 0.8 12.1 55.4 92.2 236.0 a Also includes coal, gypsum and other imported inputs for cement production that are transported by rail

Table 6.2.7 Traffic Forecast, High Growth Case (Million tonne-km or passenger-km) Cur- Construction Period Benefit Period Railway Line Type of rent and Case Traffic 2006 2007 2008 2009 2010 2015 2020 2030 Cement 10.8 9.2 6.7 4.9 1.5 1.5 0.9 0.0 Southern Line Petroleum 18.5 19.2 20.0 20.8 19.7 23.9 32.7 0.0 without Containers 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Project Total freight 29.3 28.5 26.7 25.7 21.2 25.4 33.6 0.0 Passengers 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Cement 10.8 41.6 165.3 316.4 405.7 589.8 820.4 1071.7 Petroleum 18.5 19.2 25.7 44.3 58.1 212.8 274.8 340.4 Southern Line Containers 0.0 0.0 0.0 0.0 72.7 242.4 366.4 615.1 with Project Total freight 29.3 60.8 191.0 360.7 536.5 1045.0 1461.6 2027.2 Passengers 0.0 0.0 0.0 0.0 7.3 29.7 61.55 160.8 Cement 88.3 83.4 74.4 63.7 51.1 0.0 0.0 0.0 Northern Line Petroleum 2.8 2.9 3.1 3.2 3.3 3.5 0.0 0.0 without Containers 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Project Total freight 91.1 86.3 77.5 66.9 54.4 3.5 0.0 0.0 Passengers 3.5 2.3 1.4 0.8 0.5 0.0 0.0 0.0 Cement 88.3 83.4 74.4 63.7 17.0 77.8 204.2 359.7 Petroleum 2.8 2.9 3.1 3.2 9.6 15.5 24.4 31.2 Northern Line Containers 0.0 0.0 0.0 0.0 72.3 115.5 184.8 301.0 with Project Total freight 91.1 86.3 77.5 66.9 98.9 208.8 413.4 691.9 Passengers 3.5 2.3 1.4 0.8 14.3 77.3 151.9 388.7 a Also includes coal, gypsum and other imported inputs for cement production that are transported by rail

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6.2.6 Shadow pricing of inputs and outputs

(i) Project costs

The construction cost estimates prepared by the TA engineering team assume the application of import duties (at a rate of 25% on cement and structural steel, for example) to the unit prices of imported materials and value added tax at the rate of 10% to the unit prices of all purchased materials, whether imported or supplied from domestic sources. The economic analysis required the estimation of border prices for these inputs.

On the basis of the split between materials and labour costs as provided by the engineering team, the weighted shadow pricing factors applicable to the construction costs of the project components were calculated as: Southern Line, 0.77; Northern Line excl. Missing Link, 0.85 and Missing Link, 0.79.

All labour rates were assumed to be market determined and were therefore considered not to require shadow price adjustment. Similarly, the costs of Resettlement and Compensation were assumed to represent “fair market value” and therefore were not shadow price adjusted. The Resettlement cost included in the preliminary economic assessment is based on Option 1b for the alignment through the town of Poipet (i.e. use of the old railway alignment with resettlement within the railway right of way).

The construction cost used for the economic assessment was the estimate of US$ 52.97 million, which appears in the ADB Memorandum of Understanding dated 21 June 2006. For the purposes of the economic evaluation, this figure was shadow price adjusted to US$ 42.02 million, as shown in Table 6.2.7.

Table 6.2.7 Estimates of shadow price adjusted project costs Unit: US$ million Phnom Penh- Sisophon – Item Southern Total Northern Total Project Sisophon Poipet Construction 22.714 10.570 8.741 19.311 42.025 % Distribution 54.0% 25.2% 20.8% 46.0% 100.0% Engineering service cost 0.133 0.056 0.050 0.107 0.240 Environmental Mitigation 0.500 0.300 3.000 3.300 3.800

Resettlement and Compensation 0.257 0.540 0.28 0.15 0.11 Consulting services and Admin. 1.276 2.870 1.59 0.68 0.60 Total 25.225 11.747 12.503 24.250 49.475 Source: ADB, Memorandum of Understanding on the Loan Fact Finding Mission, 21 June 2006.

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(ii) Railway rolling stock

Estimates of the unit prices paid for railway rolling stock were obtained from the ADTA project team. It was assumed that future locomotive needs would be satisfied with the purchase of Chinese locomotives at an estimated unit cost of US$ 1.0 million.2 It was assumed that refurbished bulk cement wagons and air-conditioned passenger coaches would be supplied from refurbished metre-gauge stock of the Indian Railways at unit costs of US$ 40,000 and US$ 350,000 respectively. It was expected that all locomotive and rolling stock purchases would not be subject to the payment of import duties and taxes and that the quoted unit prices would represent border prices (i.e. ex works prices plus transportation costs).

Locomotive and rolling stock equipment maintenance costs were estimated at 2 per cent of the unit acquisition value. The relevant unit economic costs are given in Table 6.2.8 below.

Table 6.2.8: Shadow unit prices and maintenance costs for locomotives and rolling stock

Vehicle Type CIF (Border) Annual Maintenance Cost Price, US$ mill. per unit per year US$

Locomotive 1.0 24,000

Passenger Coach 0.350 7,000

Container Flat Car 0.040 800

Cement Hopper 0.040 800 Petroleum Tank Car 0.060 1,200

Source: ADTA Restructuring project team\ADB.

(iii) Road vehicles

Shadow prices were estimated for all road vehicles of relevance to this assessment. The majority of the information came from a survey of motor vehicle dealers in Phnom Penh, conducted by a member of the JICA consulting team working on the Second Mekong Bridge project. This was supplemented as necessary by information obtained from other sources (including Phnom Penh Port users in the case of truck costs).

Table 6.2.9: Shadow unit prices for road vehicles

Retail Price CIF (Border) Vehicle Type US$ Price , US$

Minibus 34,000 21,075 Large Bus 70,000 43,390 Truck (3 axle) 75,000 46,489 Articulated Truck 90,000 55,787

Source: JICA Second Mekong Bridge in Cambodia consulting team.

2 Although the Chinese locomotives were reported by the ADTA team as being valued at US$ 1.2 million, it is understood that the same type of locomotives are being acquired by the Vietnamese Railways at a delivered price of US$ 800,000. For the purposes of this analysis, a CIF price of US$ 1.0 was assumed.

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(iv) Fuel prices

The shadow price of diesel fuel was established at the level of the price for Brent crude as at 03 May 2006 (US$ 75.68 per barrel, or US$ 566.47 per tonne) with the addition of a refining and transportation premium of US$ 78 per tonne, giving a border price of US$ 644.46 per tonne or US$ 0.542 per litre. Crude oil prices were volatile at the inception of the project but have now stabilized to some extent.

6.2.7 Rolling stock acquisition

It was necessary to generate a locomotive and rolling stock acquisition schedule for all project components and forecast scenarios. This was done by calculating a forecast fleet requirement from forecast tonne-km and passenger-km volumes, based on an assumed annual tkm or pkm capability per unit. This reflected the actual payload and the average cycle times of the relevant equipment. An important assumption in estimating the latter was that improved management practices would allow a significant cycle time improvement in future. In the case of short distance traffic (such as containers between Sihanoukville and Phnom Penh and cement between Kampot and Phnom Penh) wagon cycle times of as low as 1.5 days were assumed, while for longer distance traffic assumed wagon cycle times were of the order of 4 days.

In order to maximize operating efficiency it was also assumed that train tonnages would be scheduled to suit available loco haulage capacity. Since the haulage capacity of one 1200 HP loco was assumed to be 1200 tonnes, petroleum and cement trains were assumed to be limited to 20 wagons (each of 60 tonnes gross), while container trains were assumed to comprise 28 wagons each.

From the gross fleet requirement the number of existing operable units was deducted to arrive at a net requirement in terms of number of units. This method of determining this requirement was discussed and agreed with the ADTA team. The calculations of rolling stock fleet and purchase requirements for the Project Base Case are given in Tables 6.2.5 and 6.2.6.

Locomotive and rolling stock acquisition was assumed to be phased in line with traffic growth, with purchases being scheduled in the year before the units are required and valued at the shadow prices outlined above. For the purposes of depreciation, asset lives were assumed as: locomotives, 25 years; all other rolling stock, 20 years.

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Table 6.2.10: Fleet requirement and purchase schedule for Southern Line Year Locomotives Cement Petroleum wag. Container wag. Passenger car. Purch.val. wagons Req. Purch. Req. Purch. Req. Purch. Req. Purch. Req. Purch. US$ mill 2006 4 0 88 0 0 7.52 2007 4 5 88 91 25 0 8.64 2008 9 0 179 94 32 17 4.78 2009 9 6 273 59 49 14 76 6 14.34 2010 15 0 332 25 63 3 76 22 6 0 2.06 2011 15 5 357 27 66 3 98 23 6 0 7.18 2012 20 0 384 23 69 3 121 23 6 0 2.02 2013 20 0 407 23 72 4 144 23 6 0 2.08 2014 20 2 430 26 76 3 167 23 6 0 4.14 2015 22 0 456 24 79 5 190 6 6 0 1.50 2016 22 0 480 26 84 6 196 6 6 0 1.64 2017 22 0 506 28 90 7 202 7 6 0 1.82 2018 22 1 534 24 97 13 209 6 6 0 2.98 2019 23 0 558 26 110 43 215 6 6 4 5.26 2020 23 2 584 15 122 3 221 13 10 0 3.30 2021 25 0 599 13 125 2 234 13 10 0 1.16 2022 25 0 612 14 127 3 247 12 10 0 1.22 2023 25 0 626 12 130 3 259 13 10 0 1.18 2024 25 1 638 14 133 2 272 12 10 0 2.16 2025 26 0 652 15 135 3 284 13 10 0 1.30 2026 26 0 667 13 138 2 297 13 10 0 1.16 2027 26 0 680 14 140 3 310 12 10 0 1.22 2028 26 0 694 14 143 3 322 13 10 0 1.26 2029 26 4 708 12 146 2 335 12 10 0 19.42 2030 30 0 720 0 148 0 347 0 10 0 2.06 Total 30 720 148 347 10 80.46 Source: Consultant’s estimates. Note: Purchase value includes replacement of life expired units

Table 6.2.11: Fleet requirement and purchase schedule for Northern Line Year Locomotives Cement wag. Petroleum wag. Container wag. Passenger car. Purch.val. Req. Purch. Req. Purch. Req. Purch. Req. Purch. Req. Purch. US$ mill 2009 0 1 0 29 6 3.30 2010 2 0 1 0 6 0 29 4 6 0 0.16 2011 3 0 1 0 6 0 33 4 6 0 0.16 2012 3 0 1 0 7 0 37 3 6 0 0e:12 2013 3 0 1 0 7 0 40 3 6 0 0.12 2014 3 0 1 0 8 0 43 4 6 0 0.16 2015 3 0 1 0 8 1 47 6 6 0 0.30 2016 3 0 1 0 9 0 53 5 6 0 0.20 2017 3 0 1 1 9 1 58 6 6 0 0.34 2018 3 0 2 0 10 0 64 5 6 0 0.20 2019 3 3 2 1 10 9 69 6 6 4 5.22 2020 3 0 3 0 11 0 75 4 10 0 0.16 2021 3 1 3 1 11 0 79 5 10 10 4.74 2022 4 1 4 0 11 1 84 5 20 0 1.26 2023 5 0 4 1 12 0 89 5 20 0 0.24 2024 5 0 5 1 12 0 94 4 20 0 0.20 2025 5 0 6 0 12 0 98 5 20 0 0.20 2026 5 0 6 1 12 0 103 5 20 0 0.24 2027 5 0 7 1 12 1 108 5 20 0 0.30 2028 5 1 8 0 13 0 113 4 20 10 4.66 2029 6 0 8 1 13 0 117 5 30 0 3.54 2030 6 0 9 0 13 0 122 0 30 0 0.16 Total 6 9 13 122 30 25.98 Source: Consultant’s estimates. Notes: (1) Purchase value includes replacement of life expired units (2) Numbers of cement and container wagons represent only Cambodian share of total fleet requirement.

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6.2.8 Railway O&M costs

The railway operating and maintenance (O&M) costs included in the assessment of economic internal rates of return encompass all relevant cost items except locomotive and rolling stock depreciation. The latter were excluded because the economic cost stream already allows for rolling stock investment costs.

The major components of the railway O&M cost are: train crews, fuel consumption, locomotive and rolling stock maintenance, fixed and variable track maintenance, and fixed station staffing.

The fixed cost of track maintenance has been separately identified in the economic cost flows and was estimated from the financial model developed by the consulting team engaged on the ADTA restructuring project.

It comprises two components – a materials cost component which has been shadow price adjusted to reflect border prices of all imported items (such as rails, rail fittings and concrete sleepers) and a labour component which was assumed to be market determined and therefore not requiring shadow price adjustment.

Table 6.2.12 lists the unit O&M costs, other than fixed track maintenance, as used for the purpose of estimating total cost flows from forecast tonne, and passenger, kilometres.

Table 6.2.12: Unit railway O&M costs Units: US$ per tkm or per pkm Railway Operating Costsa 2005 2010-2015 2015-2020 2020-2030 Existing traffic 0.0360 Passengers - PNH-BAT 0.0132 Cement - SPN-PNH 0.0180 Petroleum - SNV-PNH

Future traffic Containers - SNV-PNH 0.0220 0.0220 0.0220 Containers - LCB-PNH 0.0086 0.0086 0.0086 Cement - KPT-PNH 0.0071 0.0071 0.0071 Cement - SBI-BAT 0.0066 0.0066 0.0066 Cement - SPN-PNH 0.0069 0.0069 Petroleum - SNV-PNH 0.0068 0.0068 0.0068 Petroleum - PNH-BAT 0.0072 0.0069 0.0068 Passengers - PNH-PPT 0.0101 0.0101 0.0101 Passengers - PNH-SNV 0.0131 0.0127 0.0127

Railway Maintenance Costsb Existing traffic Passengers - PNH-BAT 0.0108 Cement - SPN-PNH 0.0024 Petroleum - SNV-PNH 0.0044

Future traffic Containers - SNV-PNH 0.0027 0.0023 0.0018 Containers - LCB-PNH 0.0042 0.0013 0.0013 Cement - KPT-PNH 0.0023 0.0023 0.0023

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Railway Maintenance Costsb 2005 2010-2015 2015-2020 2020-2030 Cement - SBI-BAT 0.0012 0.0012 0.0012 Cement - SPN-PNH 0.0035 0.0033 Petroleum – SNV-PNH 0.0039 0.0035 0.0030 Petroleum - PNH-BAT 0.0053 0.0039 0.0036 Passengers - PNH-PPT 0.0020 0.0011 0.0011 Passengers - PNH-SNV 0.0036 0.0012 0.0006 Source: Consultant’s estimates. a. Includes: train crews, fuel consumption, fixed station staffing. b. Includes: Loco and rolling stock maintenance and variable track maintenance.

6.2.9 Economic benefit flows

(i) Estimates of fuel consumption savings

The fuel savings resulting from the diversion of traffic from road to a rehabilitated railway were estimated on the basis of fuel consumption rates assumed to be typical for the types of road vehicles used for the movement of freight commodities and passengers along the relevant road links in Cambodia. Fuel consumption rates for road vehicles were advised by port users at 48 litres per 100 km for a semi-trailer and 36 litres per 100 km for a 3 axle truck. Based on other recent studies, fuel consumption rates for large buses and for diesel-engined minibuses were assumed at the rates of 33 litres 13 litres per 100 km respectively. The fuel consumption for road vehicles will depend critically on the condition of the vehicle in addition to the condition of the road surface, but the quoted rates were considered to be typical for current conditions in Cambodia.

These raw consumption rates were converted in accordance with relevant payloads and trip distances to rates per tonne-km or per passenger-km. The latter were applied to the diverted traffic volumes in order to estimate the physical fuel saving in terms of million litres. This saving was then valued at the shadow fuel price indicated above (US$ 0.542 per litre) in order to estimate its economic value.

A similar approach was used for the estimation of the fuel savings resulting from the diversion of Thai container traffic from sea-cum-road services except that a shadow price of US$ 0.2936 per litre was applied to the bunker fuel saving estimated to result from this diversion.

Savings from this source constitute by far the most substantial savings likely to be generated by the rehabilitation project, representing about 50 per cent of the measured benefits for the Project Base case at some $545 million over the forecast period to 2030.

(ii) Estimates of reduced road transport cost

The reduction in road transport costs (not including fuel consumption) was calculated as the long run marginal costs of transport by road (and by sea where applicable), including the depreciation costs of vehicles and vessels, but excluding the costs of fuel consumption (since the latter were estimated separately as described in the previous section). The calculated unit costs of road and sea transport for various relevant routes are as shown in Table 6.2.13.

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Table 6.2.13 – Long run marginal costs for road and sea used to calculate transport cost savings Costs excluding fuel consumption Traffic Road per tkm or pkm Sea per tonne-km US$ US$

Existing railway traffic Passengers – Phnom Penh to Battambang 0.0147 Cement – Sisophon to Phnom Penh 0.0147 Petroleum – Sihanoukville to Phnom Penh 0.0176

Future diverted traffic from road/sea to rail Containers – Sihanoukville to Phnom Penh 0.0252 Containers – Laem Chabang to Phnom Penh 0.0067 Cement – Kampot to Phnom Penh 0.0201 Cement – Saraburi (Thailand) to Battambang 0.0138 Cement – Sisophon to Phnom Penh 0.0147 Petroleum – Sihanoukville to Phnom Penh 0.0176 Petroleum – Phnom Penh to Battambang 0.0173 Passengers – Phnom Penh to Poipet 0.0104 Source: Consultant’s estimates

With the addition of fuel savings, the saving in road and sea transport cost for the Project Base case was estimated at US$ 1080 million over the forecast period to 2030, or about 90 per cent of the measured total benefit stream.

(iii) Estimates of savings in CO2 emissions

The savings in CO2 emission resulting from the diversion of traffic from road to the rehabilitated railway were estimated from the fuel saving by applying what were considered to be generally accepted emission rates in terms of grams per litre of diesel fuel. Similar estimates of the physical reduction in emissions of particulate and other noxious matter were also made, but could not be valued owing to the lack of information on the likely effects on the recipient population. The reduced CO2 emissions were, however, valued at the prevailing price on world markets of “carbon certificates”, or emission quotas. This was estimated at US$ 5-10 per tonne, resulting in an estimated saving from this source over the forecast period of some $28 million for the Project Base Case.

The emission rates used to determine the physical saving in emissions are given in Table 6.2.14.

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Table 6.2.14 – Emission rates for diesel-fuelled vehicles

Diesel Fueled large trucks 2006-2010a 2010-2020b 2020-2030c Emission Factor Emission Factor Fuel Cons Emission Factor Emission Factor Fuel Cons Emission Factor Emission Factor Fuel Cons Pollutant g/l g/km l/km g/l g/km l/km g/l g/km l/km CO 3.55 1.42 0.4 2.53 0.91 0.36 2.29 0.78 0.34 HC 1.78 0.71 0.4 1.39 0.5 0.36 1.26 0.43 0.34 PM 1.44 0.49 0.34 0.56 0.2 0.36 0.41 0.14 0.34 Nox 49.15 19.66 0.4 26.56 9.56 0.36 19.68 6.69 0.34 SO2 0.08 0.08 0.08 CO2 2,650.00 2,650.00 2,650.00 Source: Handbook for Road Transport, International Transport Denmark, 2001 Notes: a Emission Factors and fuel consumption data are used from Table 8. 24 Tons, 3 axles, 1990 engine models. b Emission Factors and fuel consumption data are used from Table 10. 24 Tons, 3 axles, EURO 2 engine models. c Emission Factors and fuel consumption data are used from Table 10-1. 24 Tons, 3 axles, EURO 3 engine models.

Diesel Fueled Large/mini buses Large Bus Small Bus/Pick up Emission Factor Emission Factor Fuel Cons Emission Factor Emission Factor Fuel Cons Pollutant g/l g/km l/km g/l g/km l/km CO* 26.53 8.8 0.33 67.69 8.8 0.13 HC* 9.04 3 0.33 23.08 3 0.13 PM 6.03 2 0.33 6.92 0.9 0.13 Nox 39.19 13 0.33 92.31 12 0.13 SO2 0.08 0.08 CO2 2,650.00 2,650.00 URBAIR (1997) Urban Air Quality Management Strategy in Asia, The World Bank, Washington, DC * Bosch, J (1991) Air Quality Assessment in Medan, 2nd Medan Urban Development Project, Medan.

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(iv) Estimates of savings in road maintenance costs

The removal of heavy vehicular traffic from the primary road network following rehabilitation of the railway can be expected to have an impact in terms of reduced costs of road maintenance. However, given that the amount expended on the routine and periodic maintenance of primary roads in Cambodia is only about US $2,000 per linear km per year, the potential saving is not great. According to definitions presented in the JICA Study on Road Network Development in the Kingdom of Cambodia3, periodic maintenance includes, inter-alia, “patching and overlaying of defective road surfaces”, including both “medium and large scale” repairs. Since it was considered likely that the Ministry of Public Works and Transport would in future years have to commit to an increased level of maintenance to maintain the higher pavement standards introduced with the rehabilitation of the primary road system, it was decided to use the recommended budget figure of about US$ 4,100 per km to represent the cost of maintaining the primary road system. This cost would allow for heavy overlays of primary roads where indicated by pavement condition and traffic volume.4

Road maintenance costs were allocated to individual vehicle types in proportion both to their representation in the traffic using the relevant roads and their calculated pavement damage factors. The latter were determined in terms of the ESAL (Equivalent Standard Axle Loading) calculated for the vehicle on the basis of its gross weight distribution.

Table 6.2.15 indicates ESAL calculations for the vehicle types of relevance to this assessment. Apart from semi-trailers used in cement traffic, most of the vehicle types likely to be removed from the roads are comparatively lightly loaded and as a result would have comparatively low ESAL values. It is also physically impossible to overload some vehicle types (e.g. petroleum tankers with enclosed cargo carrying space), which is another factor tending to reduce the level of road maintenance cost savings from a diversion of traffic to rail. The savings from this source for the Project Base Case were estimated at about US$ 39 million over the project period to 2030. .

Table 6.2.15 Calculation of ESAL’s for various vehicle types

Commodity/Vehicle Type Loading assumption GVM L1 L2 L3 ESAL

Petroleum/3 axle rigid truck Legal 21 4.6 16.4 2.73 Cement/5 axle semi-trailer Overloaded by 20% 43.65 5.4 19.1 19.1 9.48 Containers/5 axle semi-trailer - South Below legal limit 21.6 2.7 9.5 9.5 0.57 Containers/5 axle semi-trailer - North Below legal limit 26.0 3.2 11.4 11.4 1.19 Large buses Legal 1.00 Minibuses ? 0.1

3 axle Assumed load distribution 5 axle semi rigid

L1 12.30% 21.90% L2 43.85% 78.10% L3 43.85% Source: Consultant’s estimates

3 Interim Report, March 2006. 4 MPWT, Draft Maintenance Budget for National and Provincial Roads, February 2006.

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(v) Estimates of saving in road accident costs

Up until comparatively recently, available information on road accident and casualty rates, as well as accident costs, in Cambodia has been very sparse. However, recent efforts by the NGO, Handicap International, supported by the Ministry of Public Works and Transport, to develop a better Road Safety data base have resulted in the availability of more reliable information. From this source, information on road traffic accident and casualty occurrences on the primary road system was used to derive accident and casualty rates per million vehicle-km on the roads relevant to this assessment, i.e. NR’s 3,4 and 5. These estimates are shown in Table 6.2.16.

Table 6.2.16 - Traffic accident occurrences and frequency rates, NR 3,4,5

Rate NR3 Number per mill.vkm

Accidents 159 0.664

Fatalities 30 0.113

Injuries - serious 147 0.553

Injuries - light 178 0.670 Rate NR4 Number per mill.vkm Accidents 292 1.0990 Fatalities 99 0.3726 Injuries - serious 182 0.6850 Injuries - light 275 1.0350

Rate NR5 Number per mill.vkm Accidents 763 1.0034 Fatalities 180 0.2367 Injuries - serious 637 0.8377 Injuries - light 794 1.0441

Sources: ADB Loan No. 4691-CAM: Transport Infrastructure Development and Maintenance Project, 2006, HANDICAP International 2006; Consultant’s estimates.

A very detailed assessment of the cost of road traffic accidents in Cambodia was recently undertaken by the ADB.5 This study obtained data on the cost of injuries and property damage from a variety of sources, but with a strong emphasis on insurance companies, while it used the Value of Lost Output approach as a means of estimating the cost of fatalities. The cost estimates developed in the study were in 2002 values.

For the present assessment, these estimates were updated to 2006 values, as shown in Table 6.2.17.

5 Asian Development Bank: ADB-ASEAN Regional Road Safety Program: Accident Costing Report: AC2, The Cost of Road Traffic Accidents in Cambodia, ISBN: 971-561-5929. Publication Date: 2005.

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Table 6.2.17 – Estimate of costs per casualty and per accident, US$ (2006 values)

Description Fatal Serious Slight Property injury injury Damage only Per Accident Property damage 1132 2777 545 253 Administrative costs 2172 1629 543 272 Total 3304 4406 1088 525

Per Casualty Lost output 12838 186 24 Medical costs 2445 3003 157 Pain Grief and Suffering 5204 3797 102 Total 20486 6985 283 Source: Asian Development Bank 2005.

It was assumed that the number of accidents and casualties would reduce in direct proportion to the reduction in the number of vehicle-km on the relevant primary roads. The resulting estimates of the avoided accidents and casualties were then valued at the costs given in the above table, to represent the road accident savings resulting from traffic diversion from road to rail.

For the Project Base Case, savings from this source were estimated at about US$ 30 million over the forecast period to 2030.

Railway accident costs would normally be assumed to offset the saving in the cost of road accidents, but in this case railway accident costs are considered to be negligible and were therefore excluded from the analysis.

(vi) Other potential benefits

Travel time savings and inventory cost savings would normally be available from a project of this type. They would normally apply both to existing railway users and to road users diverting to rail. However, in the case of this project, the rehabilitated railway will offer faster speeds only to existing rail users and since the existing traffic volumes are almost negligible, it is not expected that the resulting time savings will be of a sufficient magnitude to warrant detailed measurement. Further, because speeds on the rehabilitated railway will barely match (if at all) those available on the road network, new railway users diverting from road cannot expect to achieve significant time savings either in terms of reduced travel times or reduced inventory holdings. Thus, this benefit was not included among the benefits attributed to this project.

Another type of benefit which was excluded was the benefit of reduced transport costs for road users who would continue to use the road system after rehabilitation of the railway. This benefit would normally arise as a result of reduced traffic and faster travel speeds on the road system after completion of the railway rehabilitation project. For this type of benefit to be realized, there would have to be a substantial reduction in existing road traffic volumes. In this case, the reduction is unlikely to be of a sufficient magnitude as to have a significant impact on road travel speeds and vehicle operating costs (VOC’s).

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6.2.4 Results of the economic analysis

Economic Internal Rate of Return (EIRR) and Economic Net Present Value (ENPV) estimates were made for the total project and for the two project components based on the alternative traffic growth scenarios: the low growth scenario (R1) which . provided a base case for the purpose of sensitivity testing, and the high growth scenario (R2).

These results which are given in Tables 6.2.19 – 6.2.24 show that the total project, as well as its components, is likely to generate an acceptable economic rate of return. Overall, the project might be expected to yield an EIRR of 24.9 per cent, with the Southern Line yielding a larger return of 29.7 per cent, and the Northern Line a smaller return of 15.1 per cent. Both project components would therefore yield a rate of return which is above the ADB’s cut-off rate of 12 per cent.

These results were tested for sensitivity to changes in the input factors and assumptions (see Section 6.4). It has to be noted, however, that they include Passenger Traffic. This was removed and the EIRR’s re-calculated to show the effect of passenger traffic on the overall economic result. When this was done, the following changes to the base estimates occurred.

Table 6.2.18 - EIRR results with and without passenger traffic

Forecast Total Project Southern Line Northern Line EIRR % EIRR % EIRR % R1 Base Case with passengers 24.9 29.7 15.1 R1 Base Case without passengers 25.8 31.1 14.9 EIRR = Economic Internal rate of Return

As may be observed, the overall EIRR results for the “without passengers” case are little changed as compared with the results for the Base Case “with passengers”, the larger EIRR for the “without passenger” case reflecting the higher economic cost of rail passenger services as compared with the road transport alternative.

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Economic evaluation of railway rehabilitation project in Cambodia

Table 6.2.19 – Total Project (Sihanoukville to Poipet), R1 Rehabilitation Low, with passengers

Year Economic Cost Flows Fuel savings Constr. Rolling Railway O&M costs Total Reduced road Reduced Reduced Reduced Total Net (included in Resettle& Stock Fixed TrackOther Operating Costs tpt cost due CO2 emissiRoad Acc. Road Maint Benefits Benefit reduced road Environ. Maint. Maint. traffic diversion cost Cost Cost tpt cost) 2006 7.52 7.52 0.00 -7.52 2007 9.14 8.64 0.26 0.29 0.43 18.76 2.05 0.04 0.08 0.14 2.31 -16.44 1.42 2008 24.31 3.76 0.26 0.80 0.75 29.88 6.77 0.18 0.26 0.40 7.61 -22.27 3.83 2009 15.97 18.72 0.26 1.59 1.28 37.82 13.54 0.34 0.46 0.74 15.09 -22.73 7.67 2010 0.05 3.46 0.63 2.32 3.68 10.14 22.22 0.62 0.73 0.98 24.56 14.42 11.77 2011 7.34 0.63 2.54 4.34 14.85 25.09 0.69 0.79 1.07 27.65 12.80 13.14 2012 2.14 0.63 2.76 5.00 10.53 27.90 0.76 0.89 1.16 30.72 20.19 14.47 2013 2.20 0.96 2.99 5.65 11.80 30.72 0.84 0.95 1.25 33.75 21.95 15.80 2014 4.30 0.96 3.21 6.31 14.78 33.54 0.91 1.02 1.33 36.80 22.02 17.14 2015 1.80 0.96 3.37 6.97 13.09 36.36 0.98 1.08 1.42 39.83 26.74 18.47 2016 1.84 0.96 3.58 7.46 13.84 40.25 1.08 1.18 1.50 44.02 30.19 20.48 2017 2.16 1.27 3.79 7.95 15.18 42.88 1.15 1.25 1.59 46.87 31.70 21.74 2018 3.18 1.27 4.01 8.47 16.93 45.56 1.22 1.35 1.68 49.81 32.88 23.03 2019 10.48 1.27 4.24 9.06 25.06 48.40 1.30 1.41 1.79 52.90 27.84 24.42 2020 3.46 1.27 4.47 9.66 18.86 51.25 1.37 1.51 1.89 56.02 37.16 25.80 2021 5.90 1.27 4.78 10.27 22.22 54.90 1.45 1.57 1.95 59.86 37.64 27.68 2022 2.48 1.27 4.94 10.88 19.57 57.23 1.51 1.65 2.01 62.39 42.82 28.78 2023 1.42 1.27 5.09 11.50 19.29 59.57 1.56 1.69 2.07 64.89 45.60 29.88 2024 2.36 1.27 5.25 12.11 21.00 61.90 1.62 1.77 2.13 67.42 46.42 30.98 2025 1.50 1.27 5.41 12.72 20.91 64.24 1.67 1.83 2.19 69.93 49.02 32.08 2026 1.40 1.27 5.57 13.34 21.58 66.57 1.73 1.90 2.25 72.46 50.88 33.18 2027 1.52 1.27 5.73 13.95 22.47 68.91 1.79 1.96 2.31 74.97 52.49 34.28 2028 5.92 1.27 5.89 14.56 27.65 71.24 1.84 2.03 2.37 77.49 49.84 35.38 2029 24.04 1.27 6.05 15.18 46.54 73.58 1.90 2.11 2.43 80.02 33.48 36.48 2030 -49.47 -63.77 1.27 6.21 15.79 -89.97 75.91 1.96 2.17 2.49 82.53 172.50 37.58 Totals 0.00 63.77 24.35 94.86 207.32 390.29 1080.58 28.51 31.65 39.15 1179.89 789.60 545.48

Project cost residuals Indicators of economic worth 49.47497 63.77 NPV (US$mill) 89.77 EIRR 24.88% 10/28/2006

Table 6.2.20 – Total Project (Sihanoukville to Poipet), R2 Rehabilitation High, with passengers

Year Economic Cost Flows Fuel savings Constr. Rolling Railway O&M costs Total Reduced road Reduced Reduced Reduced Total Net (included in Resettle& Stock Fixed TrackOther Operating Costs tpt cost due CO2 emissiRoad Acc. Road Maint Benefits Benefit reduced road Environ. Maint. Maint. traffic diversion cost Cost Cost tpt cost) 2006 7.52 7.52 0.00 -7.52 2007 9.14 8.64 0.26 0.29 0.43 18.76 2.36 0.05 0.08 0.14 2.63 -16.13 1.90 2008 24.31 3.76 0.26 0.91 0.76 29.99 7.07 0.16 0.22 0.40 7.84 -22.15 4.95 2009 15.97 20.00 0.26 1.71 1.37 39.31 13.24 0.30 0.42 0.76 14.73 -24.59 9.02 2010 0.05 3.76 0.63 2.58 4.42 11.44 24.26 0.63 0.68 1.04 26.61 15.17 12.79 2011 10.32 0.63 2.97 5.87 19.79 29.21 0.72 0.81 1.24 31.98 12.19 14.95 2012 7.12 0.63 3.44 7.66 18.85 33.73 0.83 0.98 1.46 37.01 18.16 17.50 2013 6.12 0.96 3.91 9.45 20.43 38.69 0.94 1.13 1.69 42.45 22.02 20.05 2014 7.28 0.96 4.38 11.23 23.85 43.65 1.05 1.31 1.92 47.93 24.08 22.59 2015 4.84 0.96 4.76 13.01 23.56 48.60 1.15 1.46 2.15 53.36 29.80 25.14 2016 5.06 0.96 5.17 14.39 25.58 54.71 1.30 1.61 2.33 59.94 34.36 28.38 2017 5.00 1.27 5.59 15.77 27.63 59.54 1.40 1.75 2.53 65.22 37.59 30.88 2018 8.02 1.27 6.00 17.15 32.45 64.48 1.50 1.91 2.73 70.62 38.17 33.37 2019 15.04 1.27 6.42 18.53 41.26 69.41 1.61 2.02 2.93 75.98 34.71 35.86 2020 4.30 1.27 6.82 19.91 32.31 74.35 1.71 2.16 3.14 81.35 49.04 38.35 2021 2.20 1.27 7.11 21.20 31.78 77.88 1.80 2.34 3.28 85.30 53.53 39.99 2022 8.76 1.27 7.39 22.48 39.90 81.42 1.86 2.47 3.41 89.16 49.25 41.63 2023 2.20 1.27 7.67 23.76 34.91 84.95 1.93 2.56 3.54 92.97 58.06 43.26 2024 7.76 1.27 7.95 25.05 42.04 88.48 1.99 2.68 3.67 96.82 54.78 44.90 2025 2.28 1.27 8.24 26.33 38.12 92.01 2.06 2.79 3.79 100.66 62.53 46.54 2026 7.20 1.27 8.52 27.61 44.61 95.55 2.12 2.91 3.92 104.51 59.90 48.17 2027 12.86 1.27 8.80 28.90 51.84 99.08 2.19 3.01 4.05 108.33 56.49 49.81 2028 2.20 1.27 9.09 30.18 42.74 102.61 2.25 3.13 4.18 112.17 69.43 51.44 2029 24.18 1.27 9.37 31.46 66.29 106.15 2.32 3.24 4.31 116.01 49.73 53.08 2030 -49.47 -93.21 1.27 9.65 32.75 -99.01 109.68 2.39 3.32 4.43 119.82 218.83 54.72 Totals 0.00 93.21 24.35 138.70 409.68 665.95 1501.11 34.259 44.988 63.044 1643.40 977.45 769.273

Project cost residuals Indicators of economic worth 49.47497 93.21 NPV (US$mill) 111.33 EIRR 26.11% 10/28/2006

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Table 6.2.21 – Southern Line, R1 Rehabilitation Low, with passengers

Year Economic Cost Flows Economic Benefit Flows Fuel savings Constr. Rolling Railway O&M costs Total Reduced road Reduced Reduced Reduced Total Net (included in Resettle& Stock Fixed Track Other Operating Costs tpt cost due CO2 emission Road Acc. Road Maint. Benefits Benefit reduced road Environ. Maint. Maint. traffic diversion cost Cost Cost tpt cost) 2006 7.52 7.52 0.00 -7.52 2007 4.02 8.64 0.26 0.29 0.43 13.63 2.05 0.04 0.08 0.14 2.31 -11.32 1.422 2008 12.54 3.76 0.26 0.80 0.75 18.11 6.77 0.18 0.26 0.40 7.61 -10.50 3.830 2009 8.65 15.42 0.26 1.59 1.28 27.20 13.54 0.34 0.46 0.74 15.09 -12.11 7.672 2010 0.03 3.30 0.26 2.15 2.86 8.59 19.81 0.51 0.64 0.98 21.94 13.34 11.131 2011 7.18 0.26 2.34 3.35 13.13 21.88 0.56 0.68 1.06 24.19 11.06 12.273 2012 2.02 0.26 2.53 3.85 8.65 23.96 0.62 0.75 1.15 26.47 17.82 13.415 2013 2.08 0.39 2.72 4.34 9.52 26.03 0.67 0.80 1.23 28.73 19.21 14.556 2014 4.14 0.39 2.91 4.83 12.27 28.11 0.73 0.87 1.31 31.01 18.74 15.698 2015 1.50 0.39 3.10 5.32 10.31 30.18 0.78 0.92 1.39 33.27 22.96 16.840 2016 1.64 0.39 3.28 5.60 10.90 31.85 0.82 0.98 1.48 35.12 24.22 17.773 2017 1.82 0.52 3.46 5.87 11.67 33.52 0.86 1.02 1.56 36.96 25.29 18.706 2018 2.98 0.52 3.64 6.17 13.31 35.23 0.91 1.09 1.64 38.87 25.56 19.666 2019 5.26 0.52 3.84 6.55 16.17 37.11 0.95 1.14 1.74 40.95 24.78 20.728 2020 3.30 0.52 4.04 6.93 14.79 39.00 1.00 1.21 1.83 43.04 28.26 21.790 2021 1.16 0.52 4.31 7.27 13.26 41.63 1.05 1.25 1.89 45.81 32.56 23.290 2022 1.22 0.52 4.43 7.61 13.78 42.94 1.08 1.29 1.94 47.25 33.47 24.012 2023 1.18 0.52 4.55 7.95 14.20 44.26 1.12 1.32 1.99 48.69 34.48 24.733 2024 2.16 0.52 4.67 8.30 15.65 45.58 1.15 1.36 2.04 50.13 34.48 25.455 2025 1.30 0.52 4.79 8.64 15.25 46.90 1.18 1.40 2.09 51.57 36.32 26.176 2026 1.16 0.52 4.91 8.98 15.57 48.21 1.21 1.44 2.14 53.01 37.44 26.898 2027 1.22 0.52 5.04 9.32 16.09 49.53 1.25 1.48 2.20 54.45 38.35 27.620 2028 1.26 0.52 5.16 9.66 16.60 50.85 1.28 1.52 2.25 55.89 39.29 28.341 2029 20.50 0.52 5.28 10.01 36.30 52.17 1.31 1.56 2.30 57.33 21.03 29.063 2030 -25.22 -50.86 0.52 5.40 10.35 -59.82 53.48 1.34 1.60 2.35 58.77 118.59 29.785 Totals 0.000 50.86 10.33 85.22 146.23 292.63 824.59 20.94 25.10 37.83 908.46 615.83 460.87

Project cost residuals Indicators of economic worth 25.22496 50.86 NPV (US$mill) 82.12 EIRR 29.71% 10/27/2006

Table 6.2.22 – Southern Line, R2 Rehabilitation High, with passengers

Year Cost Flows Economic Benefit Flows Fuel savings Constr. Rolling Railway O&M costs Total Reduced road Reduced Reduced Reduced Total Net (included in Resettle& Stock Fixed Track Other Operating Costs tpt cost due CO2 emission Road Acc. Road Maint. Benefits Benefit reduced road Environ. Maint. Maint. traffic diversion cost Cost Cost tpt cost) 2006 7.52 7.52 0.00 -7.52 2007 4.02 8.64 0.26 0.29 0.43 13.63 2.36 0.05 0.08 0.14 2.63 -11.00 1.90 2008 12.54 3.76 0.26 0.91 0.76 18.22 7.07 0.16 0.22 0.40 7.84 -10.38 4.95 2009 8.65 15.96 0.26 1.71 1.37 27.95 13.24 0.30 0.42 0.76 14.73 -13.22 9.02 2010 0.03 3.40 0.26 2.38 3.47 9.53 21.13 0.51 0.64 1.04 23.33 13.79 11.77 2011 9.86 0.26 2.71 4.64 17.46 24.72 0.58 0.75 1.20 27.25 9.78 13.39 2012 6.70 0.26 3.12 6.13 16.21 28.73 0.67 0.88 1.40 31.68 15.47 15.43 2013 5.70 0.39 3.53 7.63 17.25 32.75 0.75 1.02 1.60 36.12 18.87 17.47 2014 6.82 0.39 3.94 9.12 20.28 36.76 0.84 1.16 1.80 40.57 20.29 19.51 2015 4.10 0.39 4.36 10.61 19.46 40.78 0.93 1.29 2.01 45.00 25.54 21.55 2016 4.28 0.39 4.70 11.54 20.91 43.95 0.99 1.40 2.16 48.50 27.59 23.12 2017 4.22 0.52 5.04 12.48 22.25 47.13 1.06 1.50 2.31 52.00 29.75 24.69 2018 4.18 0.52 5.38 13.41 23.48 50.31 1.13 1.61 2.46 55.50 32.02 26.26 2019 6.46 0.52 5.72 14.34 27.03 53.48 1.19 1.68 2.61 58.96 31.93 27.84 2020 3.80 0.52 6.06 15.27 25.65 56.66 1.26 1.78 2.77 62.47 36.82 29.41 2021 1.68 0.52 6.28 16.11 24.58 58.74 1.32 1.93 2.86 64.85 40.26 30.31 2022 2.72 0.52 6.49 16.95 26.68 60.82 1.35 2.01 2.96 67.14 40.46 31.20 2023 1.72 0.52 6.71 17.78 26.73 62.90 1.39 2.08 3.05 69.42 42.68 32.10 2024 7.22 0.52 6.93 18.62 33.29 64.97 1.42 2.16 3.15 71.70 38.42 33.00 2025 1.76 0.52 7.15 19.46 28.88 67.05 1.46 2.23 3.25 73.99 45.10 33.90 2026 6.72 0.52 7.37 20.30 34.90 69.13 1.50 2.30 3.34 76.27 41.37 34.80 2027 7.82 0.52 7.59 21.13 37.06 71.21 1.53 2.38 3.44 78.56 41.50 35.70 2028 1.72 0.52 7.80 21.97 32.01 73.29 1.57 2.45 3.53 80.84 48.83 36.60 2029 19.60 0.52 8.02 22.81 50.95 75.37 1.60 2.52 3.63 83.13 32.18 37.50 2030 -25.22 -73.18 0.52 8.24 23.64 -66.00 77.45 1.64 2.58 3.73 85.39 151.40 38.39 Totals 0.00 73.18 10.327 122.414 309.98 515.90 1140.00 25.20 37.06 55.60 1257.85 741.95 573.94

Project cost residuals Indicators of economic worth 25.22496 73.18 NPV (US$mill) 96.87 EIRR 30.54% 10/28/2006

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Table 6.2.23 – Northern Line, R1 Rehabilitation Low, with passengers

Year Economic Cost Flows Fuel savings Constr. Rolling Railway O&M costs Total Reduced road Reduced Reduced Reduced Total Net (included in Resettle& Stock Fixed Track Other Operating Costs tpt cost due CO2 emission Road Acc. Road MaintBenefits Benefit reduced road Environ. Maint. Maint. traffic diversion cost Cost Cost tpt cost) 2006 0.00 0.00 0.00 2007 5.13 5.13 0.00 -5.13 2008 11.77 11.77 0.00 -11.77 2009 7.33 3.30 10.63 0.00 -10.63 2010 0.02 0.16 0.38 0.17 0.82 1.54 2.41 0.11 0.09 0.00 2.62 1.07 0.64 2011 0.16 0.38 0.20 0.98 1.72 3.20 0.13 0.11 0.01 3.45 1.73 0.87 2012 0.12 0.38 0.23 1.15 1.88 3.95 0.15 0.14 0.01 4.25 2.37 1.06 2013 0.12 0.57 0.27 1.32 2.27 4.69 0.16 0.15 0.02 5.02 2.75 1.25 2014 0.16 0.57 0.30 1.48 2.51 5.43 0.18 0.16 0.02 5.79 3.28 1.44 2015 0.30 0.57 0.27 1.65 2.78 6.18 0.20 0.17 0.02 6.56 3.78 1.63 2016 0.20 0.57 0.30 1.86 2.93 8.41 0.26 0.21 0.03 8.90 5.97 2.71 2017 0.34 0.76 0.33 2.08 3.51 9.37 0.29 0.22 0.03 9.91 6.40 3.03 2018 0.20 0.76 0.37 2.30 3.62 10.33 0.32 0.25 0.04 10.94 7.32 3.36 2019 5.22 0.76 0.40 2.51 8.89 11.29 0.34 0.27 0.05 11.95 3.06 3.69 2020 0.16 0.76 0.43 2.73 4.07 12.25 0.37 0.30 0.06 12.98 8.90 4.01 2021 4.74 0.76 0.47 3.00 8.96 13.27 0.40 0.32 0.06 14.05 5.08 4.39 2022 1.26 0.76 0.51 3.27 5.79 14.29 0.42 0.36 0.07 15.13 9.34 4.77 2023 0.24 0.76 0.54 3.54 5.08 15.30 0.45 0.37 0.08 16.20 11.12 5.15 2024 0.20 0.76 0.58 3.81 5.35 16.32 0.47 0.41 0.09 17.29 11.94 5.53 2025 0.20 0.76 0.62 4.08 5.66 17.34 0.49 0.43 0.10 18.36 12.70 5.90 2026 0.24 0.76 0.66 4.36 6.01 18.36 0.52 0.47 0.11 19.45 13.44 6.28 2027 0.30 0.76 0.69 4.63 6.38 19.38 0.54 0.48 0.12 20.52 14.14 6.66 2028 4.66 0.76 0.73 4.90 11.05 20.39 0.57 0.51 0.13 21.60 10.55 7.04 2029 3.54 0.76 0.77 5.17 10.24 21.41 0.59 0.55 0.14 22.69 12.45 7.41 2030 -24.25 -12.91 0.76 0.81 5.44 -30.15 22.43 0.62 0.57 0.14 23.76 53.91 7.79 Totals 0.00 12.91 14.02 9.64 61.09 97.66 255.99 7.57 6.55 1.32 271.43 173.77 84.61

Project cost residuals Indicators of economic worth 24.25001 12.91 NPV (US$mill) 7.65 EIRR 15.12% 10/28/2006

Table 6.2.24 – Northern Line, R2 Rehabilitation High, with passengers

Year Cost Flows Fuel savings Constr. Rolling Railway O&M costs Total Reduced Reduced Reduced Reduced Total Net (included in Resettle& Stock Fixed Track Other Operating Costs Tpt cost (excl. CO2 emission Road Acc. Road Main Benefits Benefit reduced road Environ. Maint. Maint. fuel) from tfc.divcost Cost Cost tpt cost) 2006 0.00 2007 5.13 5.13 -5.13 2008 11.77 11.77 -11.77 2009 7.33 4.04 11.37 -11.37 2010 0.02 0.36 0.38 0.20 0.95 1.90 3.12 0.12 0.04 0.00 3.28 1.38 1.02 2011 0.46 0.38 0.26 1.24 2.33 4.49 0.14 0.06 0.04 4.74 2.41 1.57 2012 0.42 0.38 0.31 1.53 2.64 5.00 0.16 0.10 0.07 5.33 2.69 2.07 2013 0.42 0.57 0.37 1.82 3.18 5.94 0.19 0.11 0.09 6.33 3.15 2.58 2014 0.46 0.57 0.43 2.11 3.57 6.89 0.21 0.15 0.12 7.36 3.79 3.08 2015 0.74 0.57 0.40 2.39 4.11 7.83 0.23 0.17 0.14 8.36 4.26 3.59 2016 0.78 0.57 0.48 2.84 4.67 10.75 0.30 0.21 0.17 11.44 6.77 5.26 2017 0.78 0.76 0.55 3.29 5.38 12.41 0.34 0.25 0.22 13.22 7.84 6.18 2018 3.84 0.76 0.62 3.74 8.96 14.17 0.38 0.30 0.27 15.12 6.15 7.10 2019 8.58 0.76 0.70 4.19 14.23 15.93 0.41 0.35 0.32 17.01 2.78 8.03 2020 0.50 0.76 0.76 4.64 6.66 17.69 0.45 0.37 0.37 18.89 12.22 8.95 2021 0.52 0.76 0.83 5.09 7.19 19.15 0.48 0.41 0.42 20.46 13.26 9.69 2022 6.04 0.76 0.89 5.53 13.22 20.60 0.51 0.46 0.45 22.02 8.80 10.42 2023 0.48 0.76 0.96 5.98 8.18 22.05 0.54 0.48 0.48 23.55 15.38 11.16 2024 0.54 0.76 1.02 6.43 8.75 23.51 0.57 0.52 0.52 25.12 16.37 11.90 2025 0.52 0.76 1.09 6.87 9.24 24.96 0.60 0.56 0.55 26.67 17.43 12.63 2026 0.48 0.76 1.15 7.32 9.71 26.42 0.63 0.61 0.58 28.23 18.52 13.37 2027 5.04 0.76 1.22 7.77 14.78 27.87 0.66 0.63 0.61 29.77 14.99 14.11 2028 0.48 0.76 1.28 8.21 10.73 29.32 0.69 0.67 0.64 31.33 20.60 14.85 2029 4.58 0.76 1.35 8.66 15.34 30.78 0.72 0.72 0.68 32.89 17.55 15.58 2030 -24.25 -20.03 0.76 1.41 9.10 -33.01 32.23 0.75 0.74 0.71 34.42 67.43 16.32 Totals 0.00 20.03 14.02 16.29 99.70 150.05 361.11 9.06 7.93 7.45 385.55 235.50 179.46

Project cost residuals Indicators of economic worth 24.25001 20.03 NPV (US$mill) 14.45 EIRR 17.18% 10/28/2006

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6.3 ASSESSMENT OF FUTURE PASSENGER SERVICES

The purpose of this assessment is to provide guidance to the Royal Government of Cambodia in identifying the level of financial support which will be required for the future provision of railway passenger services in Cambodia.

The basis for this assessment is a forecast of passenger traffic on the core network comprising the Southern and Northern Lines (the latter including the existing line connecting Phnom Penh with Sisophon and the reconstructed “Missing Link” between Sisophon and Poipet). These forecasts were prepared by the Transport Economist engaged for the rehabilitation project and address the Terms of Reference.

6.3.1 Passenger traffic forecasts

(i) Recent rail passenger traffic trends

These forecasts were prepared against the background of an accelerated decline in the service standards and patronage of rail passenger services over the past decade. The trends in passenger trips and passenger-km for the best part of this decade are shown in Figures 6.3.1 and 6.3.2.

500000 400000 No. 300000 Passengers 200000 100000

0 1998 1999 2000 2001 2002 2003 2004 2005

Northern Line 320038 302040 253226 182892 110999 81909 78567 47768 Southern Line 117563 127171 82919 41023 22061 11825 3286 11 Both Lines 437601 429211 336145 223915 133060 93734 81853 47779

Source: Royal Railways of Cambodia, 2006

Figure 6.3.1 – Recent trend in rail passenger trips

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60.00

40.00 Pax-km (million)

20.00

0.00 1998 1999 2000 2001 2002 2003 2004 2005

33.21 38.22 37.32 29.08 17.58 12.34 10.10 5.17 Northern Line Southern Line 10.64 11.99 8.10 3.91 2.08 1.11 0.27 0.00 Both Lines 43.86 50.21 45.42 32.99 19.67 13.45 10.38 5.17

Source: Royal Railways of Cambodia

Figure 6.3.2 – Recent trend in rail passenger-km

Between 1998 and 2005, the number of passengers carried by rail declined at a rate of about 27 per cent per year. The decline was more pronounced on the Southern Line than on the Northern Line, although the number of passengers travelling on the latter still fell rapidly (declining over the same period by about 23 per cent per year).

The near disappearance of passengers from the Southern Line led to the termination of rail passenger services between Phnom Penh and Sihanoukville as from late 2003.

On the Northern Line, the frequency of passenger services was reduced from one train daily to one train per week (running from Phnom Penh to Battambang on Saturdays, returning to Phnom Penh next day).6 The rapidly deteriorating condition of the track has led to a reduction in average train speed to only 17 km per hour, with the result that the trip duration from Phnom Penh to Battambang (273 km) is now about 16 hours. By 2005, the number of passengers carried on the remaining service had declined to only 48,000. The bulk of the remaining passenger trips is now concentrated in the section between Phnom Penh and Pursat where the railway serves small communities which are remote from the primary road system.

The average rail passenger journey is now only 108 km, having reduced from about 150 km in 2000. While it might be argued that the railway continues to provide vital transport services to communities which have limited alternatives available to them, it is highly likely that the secondary road system has absorbed the passengers who recently ceased to use rail. In addition, it may be noted that the declining patronage of railway passenger services has continued unabated despite rail fares being considerably cheaper than the competing minibus services, suggesting that frequency of service and shorter travel times may be more important than price in influencing passenger modal choice.

6 Passenger trains now run as mixed freight and passenger formations, with 3-4 freight wagons added to the three passenger carriages deployed on the services.

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(ii) Development of the road network

The national road system provides an alternative to rail via three national roads which run parallel to the railway alignment. These are: NR 3, from an intersection with NR 4 near Sihanoukville to Phnom Penh, via Kampot; NR 4, from Sihanoukville to Phnom Penh and NR 5 from Phnom Penh to the border with Thailand at Poipet. In addition, NR 2 provides an important means of transport for passengers to and from Takeo, which is also located on the railway.

Much of this parallel road network, with the main exception of NR 3, has been improved over the past decade and further improvements are on-going. NR 4 now provides a high standard asphalt cement (AC) surface for its entire length and future improvement work will involve the widening of some sections (from 2 to 4 lanes) under BOT contracts. Within the past two years major rehabilitation, involving the laying of DBST (Double Bituminous Surface Treatment) pavement has been completed along the entire length of NR 5, except for the final section of 47 km from Sisophon to Poipet, which is currently in progress. Longer term plans (for the period 2011-2020) specify the conversion of NR 5 to AC pavement. On NR 3, limited improvement (including surface improvements and the widening of road shoulders) has been carried out under the maintenance program.

A travel speed survey undertaken in conjunction with road vehicle counts in April and May 2005 indicated that average speeds in excess of 60 km per hour are now being achieved on all parallel roads except for NR 3 (where the poorer road surface limits average speeds to 50-55 km per hour).7 Since road surface condition is the dominant factor governing travel speed outside of urban areas, it is clear that road users are now benefiting from the progressive improvement of the primary road system.

(iii) Availability of passenger transport alternatives

Coinciding with the improvement of the road network has been the rapid development of frequent, reliable and increasingly comfortable public transport services along the roads running parallel to the railway line. Some 7-8 major operators now provide frequent air-conditioned bus services along NR’s 4 and 5, serving all major provincial destinations from Phnom Penh, as well as inter-provincial origins and destinations.

Minibus services operate flexibly around the clock with 12-15 seat vans and pick-ups, very often departing as soon as they have a full passenger load. While these services are frequently overloaded (carrying as many as 30 passengers in vehicles designed for half that number), they provide a fast and frequent means of transport at fares which the rural poor can afford.

(iv) Fare competition

A small survey of the fares offered by road transport operators was undertaken in order to determine a fare at which passengers would be indifferent between road and rail transport, and which could provide a basis for establishing a “competitive” rail fare. While passenger demand forecasts should normally be based on cross-elasticities of demand, whether in respect of fares or other important determinants of modal choice, such as service frequency, reliability, standards of comfort, etc, such data are not readily available for Cambodia and must be determined by means of specialized surveys. Given the time constraints, the conduct of such surveys was beyond the scope of this study.

The fares of both the major bus operators and the small independent minibus operators obtained by direct enquiry were compared with the current railway passenger fare structure, as shown in Figures 6.3.3 and 6.3.4.

7 Nippon Koei Co., Ltd and Katahira & Engineers for the Ministry of Public Works and Transport, Kingdom of Cambodia, Study on the Road Network Development in the Kingdom of Cambodia, Interim Report, March 2006, Page A-6-20.

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While the bus transport data were more widely dispersed than that of the minibus operators, they were sufficient to indicate a pattern for the determination of a competitive fare for the attraction of “premium” passengers from road to rail. In general, the analysis showed that passengers on the air- conditioned bus services on average pay fares which are some 50 per cent higher than those paid by minibus passengers.

The existing railway fare structure is unusual in that the unit fare increases as distance increases, which defies economic logic. This results in a situation where the railway fare encourages shorter trips – of 230 km or less.

CR p er pax-km 90 80 y = 303.37x-0.3272 70 2 R = 0.5949 Bus unit fare 60 M inibus/Pickup unit fare 50 Rail passenger unit fare Power (Bus unit fare) 40 2 R = 0.899 Power (M inibus/Pickup unit fare) 30 Power (Rail passenger unit fare) -0.4109 20 y = 316.4x R2 = 0.7768 10 0 0 100 200 300 400 500 Distance from Phnom Penh (Km)

Sources: Royal Railways of Cambodia and public transport operators

Figure 6.3.3 – Passenger fare analysis, Northern transport corridor

CR per pax-km 100 90 y = 371.12x-0.3182 80 Bus unit fare R2 = 0.6843 70 Minibus/Pickup unit fare 60 Rail passenger unit fare y = 251.33x-0.3044 50 2 Pow er (Bus unit fare) R = 0.784 40 Pow er (Minibus/Pickup unit f are) 30 y = 17.721x0.122 Pow er (Rail passenger unit fare) 20 R2 = 0.9996 10 0 0 50 100 150 200 250 300

Distance from Phnom Penh (in Km)

Sources: Royal Railways of Cambodia and public transport operators

Figure 6.3.4 – Passenger fare analysis, Southern transport corridor

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The data for the Southern corridor indicate a similar relationship between bus and minibus fares as in the case of the Northern corridor. However, road fare levels for the Southern corridor are some 30-40 per cent higher than corresponding fares in the Northern corridor.8

The level of competitive fares was needed both as the basis for forecasting passenger demand and for establishing the likely level of the future subsidy requirement for railway passenger services. Unfortunately, the lack of adequate information on demand elasticities both for road and rail passengers prevented the assessment of modal shifts based on assumed variations in fare levels. At best, it could be estimated that the fare elasticity for rail transport is about 0.75 – that is, for a 20 per cent variation in rail fares, rail passenger demand would vary in the opposite direction by 15 per cent. This estimate was based on the observation that a 51.9 per cent increase in average rail passenger fares in 2005 resulted in a 39.2 per cent fall in passenger trips. While the frequency of the passenger service on the Northern Line was also reduced in the latter part of 2005, it is likely that this factor had relatively little effect on the overall passenger volume in that year.

If rail fares were adjusted to the competitive fare level, the following changes could be expected in the fare structure:

Origin/Destination Distance from Phnom New rail fare – CR Existing rail fare – % change Penh (Km) per pax-km CR per pax-km Phnom Penh-Romeas 76 53.25 30 78% Phnom Penh-Pursat 165 38.78 33 18% Phnom Penh-Battambang 273 31.56 35 -10% Phnom Penh - Sisophon 337 28.94 35 -17% Phnom Penh - Poipet 384 27.43 35 -22%

(v) Other assumptions underlying the passenger forecasts

Origin/destination matrices were estimated both for road and rail, the former based on the 2005 road counts and the latter based on observation of boardings and alightings at various stations between Phnom Penh and Pursat. These matrices were used as a measure of base passenger demand and were escalated at alternative economic rates of growth of 3.5-5 per cent, representing a low growth scenario and of 5-7 per cent representing a high economic growth scenario. These underlying growth assumptions, which are set out in detail in Table 6.3.1, accord with those adopted for the freight traffic forecasts.

Based on the derivation of origin/destination matrices, the current level of total passenger demand was estimated at 7.6 million passenger journeys per year in the Northern Corridor and at 13.1 million passenger journeys per year in the Southern corridor. It has to be noted, however, that a majority of the total journeys in both corridors may be classified as short commuter trips and do not represent potential traffic for rail.

Forecasts of rail passenger demand were prepared on the basis of what were considered to be the likely rates of rail penetration of the passenger market for each major origin-destination pair in both corridors, given: (a) the frequency of road passenger services; (b) average trip lengths; and (c) average trip duration. Given the generally shorter trips and higher road passenger service frequencies in the Southern transport corridor, the maximum achievable rail share of the passenger volume between relevant O/D pairs in that corridor was assumed to be 5 per cent. In the Northern transport corridor, it was assumed that the maximum rail share of the total passenger volume between the relevant O/D pairs would be 10 per cent.

8 For example, for a 200 km trip, bus passengers pay only CR 53 per Km in the Northern corridor but CR 69 in the Southern corridor, while minibus passengers pay only CR 35 in the Northern corridor, but CR 50 per Km in the Southern corridor.

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Analysis of the origin/destination survey results from the 2005 Vehicle Count showed that passenger traffic in both corridors was distributed between buses and minibuses in the ratio of 0.3:0.7. This ratio was used as the basis of the likely split of rail traffic between air conditioned and non-air conditioned services.

(v) Passenger forecast results

The results of the passenger demand forecast are given in Tables 6.3.2 – 6.3.3 .The baseline forecast reflects the passenger and passenger-km volumes which might be expected to switch to rail at fare levels which would be competitive with those of the road transport alternatives. Based on the assumption of a fare elasticity of 0.75, the application of an upward and downward fare variation of 20 per cent on this baseline forecast is likely to result in rail passenger volumes which are respectively 15 per cent below and 15 per cent above the baseline level.

The forecasts envisage that average trip lengths will increase over the forecast period from 131 km when passenger services commence in 2010 to 192 km and 218 km in the case of the Southern and Northern lines respectively by 2030. This increase will be the result of application of a competitive fare structure which will provide an incentive for longer distance travel.

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Table 6.3.1 – Factors and assumptions underlying the passenger demand forecast

Do Nothing Scenario Rehabilitation Scenario-low Rehabilitation Scenario-high General Characteristics No investment in rehabilitation and lack of Full rehabilitation of infrastructure and restructuring of Full rehabilitation of infrastructure and restructuring of railway maintenance leads to accelerated deterioration of rail railway operation by year 2010; provision of dedicated operation by year 2010 provision of dedicated railway passenger infrastructure and cessation of all passenger services by railway passenger services on both lines; conservative services on both lines; High economic growth resulting from oil as early as 2010; economy growing slowly growth scenario with limited economic development refinery and mining projects projects Macroeconomic situation Slow economic growth (garment industry); low FDI Garment industry recovers and tourism remains strong; no High economic growth; political and macroeconomic stability; because of political and economic uncertainties; low major industrial diversification; uncertainties bring limited oil and gas and mining activities leading growth besides positive government revenues, high public debt and continuing economic growth; prospects for garment and tourism industries; trade balance deficit; GDP growth Low Reform scenario suggests: Medium scenario suggests: Full Reform scenario suggests: 2005 – 2010: 3.5% 2005 – 2010: 3.5% 2005 – 2010: 7% 2010 – 2015: 3,5% 2010 – 2015: 3.5% 2010 – 2015: 7% 2015 – 2020: 3.5% 2015 – 2020: 3.5% 2015 – 2020: 7% 2020 – 2030: 5% 2020 – 2030: 5% 2020 – 2030: 5% Economic Development No major new economic developments; garment No major new economic developments; garment industry World market conditions have led to a situation where a local oil industry after some decline is now stabilized; average after some decline is now stabilized; average growth in and gas refinery is profitable; a new iron ore mine has justified growth in tourism industry; new cement factory in tourism industry; new cement factory in operation by 2010 the construction of a separate private railway and private port operation by 2010 Railway Infrastructure No improvements and missing link remains; lack of Missing link completed by 2009 with rehab of NL and SL Missing link completed by 2009 with rehab of NL and SL maintenance implies that by 2015 the North Line is completed by 2010; New public entity owns the completed by 2010; New public entity owns the infrastructure, unsafe to operate and by 2025 the Southern Line infrastructure, renting it to a private concessionaire for a fee; renting to a private concessionaire for a fee; cannot continue to operate; risk that catastrophic situation , like bridge collapse may force an earlier closure; Poor financial situation may also cause an earlier closure; Railway Operations No changes in operation management; no addition to Efficient and profitable operations under private Efficient and profitable operations under private concessionaire; passenger rolling stock; average speed likely to drop to concessionaire; limited frequency passenger services limited frequency passenger services provided on both lines 10 km/h, leading to cessation of passenger service by provided on both lines under PSO contract (neutral financial under PSO contract (neutral financial impact on concession); as early as 2010; operating deficit growing. impact on concession); average speed of passenger services average speed of passenger services will be 50 km/hour; split of will be 50 km/hour; split of road passengers between a/c road passengers between a/c buses and non a/c minibuses (30% buses and non a/c minibuses (30% buses; 70% minibuses) buses;70% minibuses) suggests need to provide limited number suggests need to provide limited number of a/c rail coaches. of a/c rail coaches. Road Sector Road 5 Sisaphon – Poipet completed in 2008; Road Sisaphon – Poipet road completed in 2008; Sisaphon – Poipet road completed in 2008; Road 2 and 3 completed by 2008; Road 2 and 3 completed by 2008; Road 2 and 3 completed by 2008; Road 1 with bridge completed by 2012; Road 1 with bridge completed by 2012. Road 1 with bridge completed by 2012; Road average speeds unlikely to increase from present level Road average speeds unlikely to increase from present level (60 (60 km per hour). km per hour).

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Do Nothing Scenario Rehabilitation Scenario-low Rehabilitation Scenario-high Road/Rail Competition Passenger numbers and frequencies of bus and minibus Passenger numbers and frequencies of bus and minibus Passenger numbers and frequencies of bus and minibus services services on Roads 2,3.4 and 5 grow in line with services on Roads 2,3.4 and 5 grow at slightly lower rates on Roads 2,3.4 and 5 grow at slightly lower rates than GDP GDP. than GDP (due to rail competition); railway passenger fares (due to rail competition); railway passenger fares restructured in restructured in line with bus and minibus fares, encouraging line with bus and minibus fares, encouraging longer distance longer distance travel and increasing railway share of longer travel and increasing railway share of longer distance OD flows; distance OD flows; rail share of passengers in Southern rail share of passengers in Southern corridor (as compared with corridor (as compared with Northern corridor) limited by Northern corridor) limited by greater road service frequency, greater road service frequency, especially on short routes especially on short routes (e.g. PNH to Takeo). (e.g. PNH to Takeo).

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Table 6.3.2 – Rail passenger demand forecast – Northern and Southern Lines

Northern 2005e. 2010 2015 2020 2030 Av. Annual Rate of growth Northern Line - Low (passengers) Competitive fare 48000 92275 296478 456483 1080824 13.3% Competitive fare less 20% 48000 106208 341245 525410 1244024 13.9% Competitive fare plus 20% 48000 78342 251711 387556 917623 12.5%

Northern Line - Low (mill.pax-km) Competitive fare 5.65 12.12 55.41 92.22 236.02 16.1% Competitive fare less 20% 5.65 13.95 63.78 106.15 271.66 16.8% Competitive fare plus 20% 5.65 10.29 47.04 78.30 200.38 15.3%

Northern Line - High (passengers) Competitive fare 48000 108969 413453 751754 1779944 15.5% Competitive fare less 20% 48000 125423 475883 865266 2048708 16.2% Competitive fare plus 20% 48000 92515 351023 638242 1511179 14.8%

Northern Line - High (mill.pax-km) Competitive fare 5.65 14.31 77.27 151.87 388.69 18.4% Competitive fare less 20% 5.65 16.48 88.94 174.81 447.38 19.1% Competitive fare plus 20% 5.65 12.15 65.60 128.94 330.00 17.7% Southern 2005e. 2010 2015 2020 2030 Av. Annual Rate of growth Southern Line - Low (passengers) Competitive fare 0 47234 119830 204610 507315 12.6% Competitive fare less 20% 0 54366 137924 235506 583918 12.6% Competitive fare plus 20% 0 40102 101736 173715 430712 12.6% Southern Line - Low (mill.pax-km) Competitive fare 0.00 6.17 21.33 37.32 97.63 14.8% Competitive fare less 20% 0.00 7.10 24.55 42.95 112.38 14.8% Competitive fare plus 20% 0.00 5.24 18.11 31.68 82.89 14.8% Southern Line - High (passengers) Competitive fare 0 55779 167110 336961 835467 14.5% Competitive fare less 20% 0 64202 192342 387840 961619 14.5% Competitive fare plus 20% 0 47357 141877 286081 709314 14.5% Southern Line - High (mill.pax-km) Competitive fare 0.00 7.28 29.74 61.45 160.79 16.7% Competitive fare less 20% 0.00 8.38 34.23 70.73 185.07 16.7% Competitive fare plus 20% 0.00 6.18 25.25 52.18 136.51 16.7%

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Table 6.3.3 – Rail passenger demand forecast – Northern and Southern Lines

Both Lines 2005e. 2010 2015 2020 2030 Av. Annual Rate of growth Both Lines - Low (passengers) Competitive fare 48000 139509 416308 661093 1588139 12.9% Competitive fare less 20% 48000 160575 479169 760916 1827941 12.9% Competitive fare plus 20% 48000 118444 353447 561271 1348336 12.9%

Both Lines - Low (mill.pax-km) Competitive fare 5.65 18.29 76.74 129.54 333.66 15.6% Competitive fare less 20% 5.65 21.05 88.32 149.10 384.04 15.6% Competitive fare plus 20% 5.65 15.53 65.15 109.98 283.28 15.6%

Both Lines - High (passengers) Competitive fare 48000 164748 580563 1088715 2615410 14.8% Competitive fare less 20% 48000 189625 668225 1253107 3010327 14.8% Competitive fare plus 20% 48000 139872 492900 924323 2220493 14.8%

Both Lines - High (mill.pax-km) Competitive fare 5.65 21.60 107.01 213.33 549.48 17.6% Competitive fare less 20% 5.65 24.86 123.17 245.54 632.45 17.6% Competitive fare plus 20% 5.65 18.34 90.85 181.12 466.51 17.6%

6.3.2 Financial analysis of future rail passenger traffic

The low growth forecast of passenger demand was used as the basis of a financial analysis of future passenger traffic. The purpose of this analysis is to provide an indication to the Royal Government of Cambodia of the likely level of financial support required to maintain passenger services on the rehabilitated railway.

The key assumptions of this analysis are that:

• Future passenger services will be based on a service plan which initially provides for a minimum frequency of one train per day in each direction on both lines;

• Future passenger trains will be locomotive hauled and will comprise air conditioned and non- air conditioned rolling stock in the ratio of 0.3:0.7.

• The absence of serviceable passenger rolling stock on the existing railway will require investments in new rolling stock, to be based on the service plan and scheduled in accordance with traffic growth; and

• A common railway fare (with separate rates for passengers traveling in air conditioned and non air conditioned carriages) will be applied to both lines at a level which is competitive with road transport fares and which will provide incentives for longer distance travel.

The starting point for the financial analysis is the outline service plan, details of which are given below.

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(i) Outline passenger service plan

As shown in Tables 6.3.4 and 6.3.5, the baseline passenger trip forecast indicates the volume of passengers expected to be carried per direction per day. From these numbers it was estimated that initially one train per day would be operated in each direction on the Southern Line, between Phnom Penh and Sihanoukville and on the Northern Line between Phnom Penh and Poipet. The number of carriages per train was adjusted to the level of demand on each line. As traffic grows, so the carriage composition will be increased up to a maximum of 10 cars per train.

Since it will be possible on the rehabilitated railway for a passenger train to complete a journey between Phnom Penh and Sihanoukville in a little over 5 hours (assuming an average speed, including allowance for station stops, of 50 km per hour) it has been assumed that a single set will complete one return trip per day. However, as the travel time on the Northern Line between Phnom Penh and Poipet will be about 9½ hours it is likely that two sets would be needed to provide a daily service in each direction.

Table 6.3.4 – Northern Line - train service plan and rolling stock requirement

Year Forecast Daily No. cars per No. trains per No. trainsets Estimated value of passenger passenger train day per required rolling stock in number number per direction service (US$ direction million) 2010 92300 126 3 1 2 3.68 2015 296500 406 10 1 2 7.60 2020 456500 625 10 1 2 7.60 2030 1080800 1481 10 3 6 21.80 Notes: (1) Each car carries 60 passengers (2) Purchase price of locomotives: US$ 1.0 million; purchase price of air conditioned cars: US$ 0.35 million; purchase price of non air conditioned cars: US$ 0.25 million.

Table 6.3.5 – Southern Line - train service plan and rolling stock requirement

Year Forecast Daily No. cars per No. trains per No. trainsets Estimated value of passenger passenger train day per required rolling stock in number number per direction service (US$ direction million) 2010 47200 65 3 1 1 1.84 2015 119800 164 3 1 1 1.84 2020 204600 280 6 1 1 2.68 2030 507300 695 10 2 2 7.60 Notes: (1) Each car carries 60 passengers (2) Purchase price of locomotives: US$ 1.0 million; purchase price of air conditioned cars: US$ 0.35 million; purchase price of non air conditioned cars: US$ 0.25 million.

The locomotives for the passenger service were assumed to be purchased new from China for a price delivered Phnom Penh of US$ 1.0 million each, while refurbished air conditioned and non air conditioned carriages were assumed to be purchased from the retired metre gauge stock of the Indian Railways for delivered prices per unit of US$ 350,000 and US$ 250,000 respectively.

(ii) Passenger revenue forecast

The forecast passenger revenue steam is based on an assumption that competitive fares will be applied, with unit fares falling as average trip distances increase. The method of revenue estimation is as shown in Tables 6.3.6 and 6.3.7.

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Table 6.3.6 – Northern Line – passenger revenue estimation

Year Forecast Average trip Applicable air- Applicable non Estimated fare passenger distance con fare per air-con fare per revenue (US$ mill.) kilometers (Km) passenger-km passenger-km (Million) (US$) (US$) 2010 12.12 131 0.0146 0.0102 0.14 2015 55.41 187 0.0130 0.0088 0.56 2020 92.22 202 0.0127 0.0085 0.90 2030 236.02 218 0.0124 0.0082 2.24 Notes: (1) Air con fare calculated in Cambodian rial from the formula: 303.37x-0.3272, where x = distance (2) Non air-con fare calculated in Cambodian rial from the formula: 316.4x-0.4109, where x = distance

Table 6.3.7 – Southern Line – passenger revenue estimation

Year Forecast Average trip Applicable air- Applicable non Estimated fare passenger distance con fare per air-con fare per revenue (US$ kilometers (Km) passenger-km passenger-km mill.) (Million) (US$) (US$) 2010 6.17 131 0.0147 0.0102 0.07 2015 21.33 178 0.0133 0.0090 0.22 2020 37.32 182 0.0132 0.0089 0.38 2030 97.63 192 0.0129 0.0087 0.97 Notes: (1) Air con fare calculated in Cambodian rial from the formula: 303.37x-0.3272, where x = distance (2) Non air-con fare calculated in Cambodian rial from the formula: 316.4x-0.4109, where x = distance

(iii) Passenger related operating expenditures

The expenditures which would be associated with the future provision of passenger services were estimated on the basis of the train service plan. Many items of expenditure, such as fuel consumption expenditures, may be calculated directly from the passenger-km task, while others such as the wages of a portion of the station staff may be related only indirectly to the passenger task, while others such as expenditures on locomotive and rolling stock maintenance are related more to the quantity and type of equipment employed. To the maximum extent possible, unit costs were obtained from the Financial model developed by the consulting team engaged on the Railway Restructuring project. These were applied to the relevant traffic and operating parameters to allow estimation of the overall expenditures attributable to passenger traffic.

The components of the expenditure estimates are identified in Tables 6.3.8 to 6.3.10, which also show the forecasted shortfall of revenue from operating expenditures, or the “revenue gap”. By far the most significant item of operating expenditure is fuel which is estimated to account for nearly two-thirds of all passenger-related expenditure (not including locomotive and carriage depreciation). The unit cost of diesel fuel assumed for these estimates is the current retail price in Cambodia, CR 3150, or US$ 0.75 per litre. Estimates of all costs with a labour component assume an average annual wage of US$ 1029 (as obtained from the Financial Model of the Restructuring team). Station staffing costs were based on the consultant’s estimate of overall staffing of stations, assuming that one third of all station staff might have duties dedicated to passenger traffic.

All expenditures (in common with the revenue stream) are expressed in constant 2006 values.

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(iv) Estimates of the passenger revenue gap

Estimates of the passenger revenue gap in Tables 6.3.8 to 6.3.10 provide an indication of the level of net subsidy likely to be required from the Royal Government of Cambodia to support a passenger service on the rehabilitated railway. Overall, the revenue available from passenger fares is likely to be sufficient to cover only 50 per cent of the operating expenditures (including locomotive and rolling stock depreciation) attributable to future passenger traffic, resulting in a revenue shortfall increasing from US$ 0.61 million in the first year of operation to US$ 3.10 million by 2030. Comparable estimates for the Northern Line show a revenue shortfall increasing in real terms from US$ 0.39 million in 2010 to US$ 2.30 million in 2030. The Northern line may be expected to account for some 75 per cent of the overall financial deficit on passenger services, partly as a result of the proportionately greater rolling stock investment which would be required on this line.

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Table 6.3.8 – Calculation of the passenger services “revenue gap”

1. Total network Units: US$ million Year Pax Trips Pax-Km Operating Operating Expenses, excluding Depreciation Sub-total Admin. Total Rollingstock Passenger "Revenue (Number (Mill.) Revenue Train crew Stn staffing Fuel Var.track Rolling stock overhead Depreciation Total Gap" maint. maint. Expend. 2006 2007 2008 2009 2010 139509 18.29 0.21 0.05 0.13 0.18 0.01 0.12 0.49 0.05 0.54 0.28 0.82 -0.61 2011 194869 29.98 0.32 0.05 0.13 0.29 0.02 0.17 0.65 0.07 0.72 0.36 1.08 -0.75 2012 250229 41.67 0.44 0.05 0.13 0.40 0.02 0.17 0.77 0.08 0.85 0.36 1.21 -0.77 2013 305589 53.36 0.55 0.05 0.13 0.51 0.03 0.17 0.89 0.09 0.98 0.36 1.34 -0.79 2014 360948 65.05 0.66 0.05 0.13 0.63 0.04 0.17 1.01 0.10 1.11 0.36 1.47 -0.81 2015 416308 76.74 0.78 0.05 0.13 0.74 0.05 0.22 1.19 0.12 1.31 0.47 1.78 -1.00 2016 465265 87.30 0.88 0.05 0.13 0.84 0.05 0.24 1.32 0.13 1.45 0.51 1.96 -1.09 2017 514222 97.86 0.98 0.05 0.13 0.94 0.06 0.24 1.42 0.14 1.57 0.51 2.08 -1.10 2018 563179 108.42 1.08 0.05 0.13 1.05 0.06 0.24 1.53 0.15 1.69 0.51 2.20 -1.12 2019 612136 118.98 1.18 0.05 0.13 1.15 0.07 0.24 1.64 0.16 1.80 0.51 2.32 -1.14 2020 661093 129.54 1.28 0.05 0.13 1.25 0.08 0.24 1.75 0.17 1.92 0.51 2.44 -1.16 2021 753798 149.95 1.47 0.05 0.13 1.45 0.09 0.24 1.96 0.20 2.15 0.51 2.67 -1.19 2022 846502 170.36 1.67 0.05 0.13 1.64 0.10 0.27 2.19 0.22 2.41 0.67 3.08 -1.42 2023 939207 190.77 1.86 0.09 0.13 1.84 0.11 0.45 2.62 0.26 2.88 0.95 3.83 -1.97 2024 1031911 211.18 2.05 0.09 0.13 2.04 0.13 0.45 2.83 0.28 3.11 0.95 4.06 -2.01

2025 1124616 231.60 2.25 0.09 0.13 2.23 0.14 0.45 3.04 0.30 3.34 0.95 4.29 -2.04

2026 1217320 252.01 2.44 0.09 0.13 2.43 0.15 0.45 3.24 0.32 3.57 0.95 4.52 -2.08 2027 1310025 272.42 2.63 0.10 0.13 2.63 0.16 0.54 3.56 0.36 3.92 1.14 5.06 -2.43 2028 1402730 292.83 2.82 0.10 0.13 2.82 0.17 0.54 3.77 0.38 4.15 1.24 5.39 -2.56 2029 1495434 313.24 3.02 0.14 0.13 3.02 0.19 0.72 4.19 0.42 4.61 1.52 6.13 -3.12 2030 1588139 333.66 3.21 0.14 0.13 3.22 0.20 0.72 4.40 0.44 4.84 1.47 6.31 -3.10

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Table 6.3.9 – Calculation of the passenger services “revenue gap”

2. Northern Line Units: US$ million

Year Pax Trips Pax-Km Operating Operating Expenses, excluding Depreciation Sub-total Admin. Total Rollingstock Passenger "Revenue

(Number) (Mill.) Revenue Train crew Stn staffing Fuel Var.track Rolling stock overhead Depreciation Total Gap" maint. maint. Expend.

2006

2007

2008

2009

2010 92275 12.12 0.14 0.03 0.08 0.12 0.01 0.08 0.32 0.03 0.35 0.18 0.53 -0.39 2011 133116 20.78 0.22 0.03 0.08 0.20 0.01 0.12 0.45 0.04 0.49 0.27 0.76 -0.54 2012 173956 29.44 0.31 0.03 0.08 0.28 0.02 0.12 0.54 0.05 0.59 0.27 0.86 -0.55 2013 214797 38.09 0.39 0.03 0.08 0.37 0.02 0.12 0.63 0.06 0.69 0.27 0.96 -0.56 2014 255637 46.75 0.47 0.03 0.08 0.45 0.03 0.12 0.71 0.07 0.79 0.27 1.05 -0.58 2015 296478 55.41 0.56 0.03 0.08 0.53 0.03 0.18 0.86 0.09 0.94 0.38 1.32 -0.77 2016 328479 62.77 0.63 0.03 0.08 0.61 0.04 0.18 0.93 0.09 1.03 0.38 1.41 -0.78 2017 360480 70.13 0.69 0.03 0.08 0.68 0.04 0.18 1.01 0.10 1.11 0.38 1.49 -0.79 2018 392481 77.50 0.76 0.03 0.08 0.75 0.05 0.18 1.08 0.11 1.19 0.38 1.57 -0.81 2019 424482 84.86 0.83 0.03 0.08 0.82 0.05 0.18 1.16 0.12 1.28 0.38 1.66 -0.82 2020 456483 92.22 0.90 0.03 0.08 0.89 0.05 0.18 1.24 0.12 1.36 0.38 1.74 -0.84 2021 518917 106.60 1.03 0.03 0.08 1.03 0.06 0.18 1.38 0.14 1.52 0.38 1.90 -0.87 2022 581351 120.98 1.17 0.03 0.08 1.17 0.07 0.18 1.53 0.15 1.68 0.48 2.16 -0.99 2023 643785 135.36 1.30 0.07 0.08 1.30 0.08 0.36 1.89 0.19 2.08 0.76 2.84 -1.54 2024 706219 149.74 1.44 0.07 0.08 1.44 0.09 0.36 2.04 0.20 2.24 0.76 3.00 -1.57 2025 768653 164.12 1.57 0.07 0.08 1.58 0.10 0.36 2.19 0.22 2.40 0.76 3.16 -1.59 2026 831087 178.50 1.70 0.07 0.08 1.72 0.11 0.36 2.33 0.23 2.57 0.76 3.33 -1.62 2027 893521 192.88 1.84 0.07 0.08 1.86 0.11 0.36 2.48 0.25 2.73 0.76 3.49 -1.65 2028 955956 207.26 1.97 0.07 0.08 2.00 0.12 0.36 2.63 0.26 2.89 0.86 3.75 -1.78 2029 1018390 221.64 2.11 0.10 0.08 2.14 0.13 0.54 2.99 0.30 3.29 1.14 4.43 -2.32 2030 1080824 236.02 2.24 0.10 0.08 2.27 0.14 0.54 3.14 0.31 3.45 1.09 4.54 -2.30

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Table 6.3.10 – Calculation of the passenger services “revenue gap”

3. Southern Line Units: US$ million Year Pax Trips Pax-Km Operating Operating Expenses, excluding Depreciation Sub-total Admin. Total Rollingstock Passenger "Revenue (Number) (Mill.) Revenue Train crew Stn staffing Fuel Var.track Rolling stock overhead Depreciation Total Gap" maint. maint. Expend. 2006 2007 2008 2009 2010 47234 6.17 0.07 0.02 0.05 0.06 0.00 0.04 0.17 0.02 0.19 0.09 0.28 -0.21 2011 61754 9.20 0.10 0.02 0.05 0.09 0.01 0.04 0.20 0.02 0.23 0.09 0.32 -0.22 2012 76273 12.23 0.13 0.02 0.05 0.12 0.01 0.04 0.24 0.02 0.26 0.09 0.35 -0.22 2013 90792 15.26 0.16 0.02 0.05 0.15 0.01 0.04 0.27 0.03 0.29 0.09 0.39 -0.23 2014 105311 18.29 0.19 0.02 0.05 0.18 0.01 0.04 0.30 0.03 0.33 0.09 0.42 -0.23 2015 119830 21.33 0.22 0.02 0.05 0.21 0.01 0.04 0.33 0.03 0.36 0.09 0.45 -0.24 2016 136786 24.52 0.25 0.02 0.05 0.24 0.01 0.06 0.38 0.04 0.42 0.13 0.55 -0.30 2017 153742 27.72 0.28 0.02 0.05 0.27 0.02 0.06 0.42 0.04 0.46 0.13 0.59 -0.31 2018 170698 30.92 0.31 0.02 0.05 0.30 0.02 0.06 0.45 0.04 0.49 0.13 0.63 -0.31 2019 187654 34.12 0.35 0.02 0.05 0.33 0.02 0.06 0.48 0.05 0.53 0.13 0.66 -0.32 2020 204610 37.32 0.38 0.02 0.05 0.36 0.02 0.06 0.51 0.05 0.56 0.13 0.70 -0.32 2021 234881 43.35 0.44 0.02 0.05 0.42 0.03 0.06 0.58 0.06 0.63 0.13 0.77 -0.33 2022 265151 49.38 0.50 0.02 0.05 0.48 0.03 0.09 0.66 0.07 0.73 0.19 0.92 -0.42 2023 295422 55.41 0.56 0.02 0.05 0.53 0.03 0.09 0.73 0.07 0.80 0.19 0.99 -0.43 2024 325692 61.44 0.62 0.02 0.05 0.59 0.04 0.09 0.79 0.08 0.87 0.19 1.06 -0.44 2025 355963 67.48 0.68 0.02 0.05 0.65 0.04 0.09 0.85 0.09 0.94 0.19 1.13 -0.45 2026 386233 73.51 0.73 0.02 0.05 0.71 0.04 0.09 0.91 0.09 1.00 0.19 1.19 -0.46 2027 416504 79.54 0.79 0.03 0.05 0.77 0.05 0.18 1.08 0.11 1.19 0.38 1.57 -0.78 2028 446774 85.57 0.85 0.03 0.05 0.82 0.05 0.18 1.14 0.11 1.26 0.38 1.64 -0.78 2029 477044 91.60 0.91 0.03 0.05 0.88 0.05 0.18 1.20 0.12 1.32 0.38 1.70 -0.79 2030 507315 97.63 0.97 0.03 0.05 0.94 0.06 0.18 1.27 0.13 1.39 0.38 1.77 -0.80

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6.4 SENSITIVITY TESTING OF PROJECT EVALUATION RESULTS

As required by the terms of reference, sensitivity testing of variables influencing the level of costs and benefits was carried out in order to determine the sensitivity of the EIRR and ENPV results to changes in these variables. Sensitivity indicators were computed to reflect the degree of sensitivity of the indicators of economic worth to changes in the variables, while Switching Values were computed to measure the extent to which these variables would have to change in order for the EIRR to fall to the cut-off level of 12 per cent and for the ENPV to fall to zero.

The results of these tests are given in Table 6.4.1. Tests were carried out for those elements expected to have a significant impact on the project’s generation of net benefits. Necessarily, these elements included the change in oil prices, since as noted earlier fuel savings were estimated to account for half of the project’s total estimated benefits. Changes in the construction cost of the project are also likely to have a significant impact on the project’s economic viability, given the concentration of these costs early in the life of the project when they will carry more weight in the discounting process.

The effect on project returns of a possible reduction in the level of the Brent Crude price from its May 2006 level of $75 per barrel to $ 50 per barrel was assessed. There appear to be two different prevailing views on the level of world oil prices. One view ( that expressed by the oil companies such as BP and Shell) is that gradually oil prices will return to their pre-existing level as there will be a supply increase coinciding with the development of additional refining capacity. Another view is that the increase in fossil fuel consumption will continue unabated (with little movement to the use of substitutes), outstripping the capacity of the petroleum companies to keep up with pace of consumption and driving world prices to new highs. The tests indicate, as might be expected, that both the EIRR and the ENPV are sensitive to the movement of oil prices.

The economic results were found to be less sensitive to a 50 per cent increase in railway operating costs, but highly sensitive to a 15 per cent reduction in the overall transport benefits of the project. The project returns would also be highly sensitive to the re-establishment of railway operations across the Thai border.

The EIRR was also found to be quite sensitive to changes in the level of project construction costs, but the ENPV to a lesser extent. Only a 20 per cent increase in project cost was considered here. However, the effect of other changes in construction costs might also be assessed, including: the possibility that costs could be reduced through domestic sourcing of concrete sleepers (formed from locally manufactured cement) and the possibility that construction costs might move in the other direction as a result of higher construction standards being necessary to reduce the future cost of maintenance. Application of these higher standards could involve: (a) purchase of a Multiple Tie Tamper and inclusion of this cost as a component of the overall construction cost; (b) an increase in ballast depth from 20-25 cm; (c) welding of rail on the Southern Line and on the Missing link; (d) 100 per cent usage of concrete sleepers on the Southern Line; and (e) increased earthworks on embankments.

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Table 6.4.1 – Project sensitivity analysis

Item Base factor New Factor Change (%) NPVmEIRR (US$ (%) Sensitivity Indicator Switching Value (%) Remarks NPV EIRR NPV EIRR

Base case 89.77 24.88%

Investment

Project cost increased 20% 49.47 59.37 20% 83.40 22.98% 0.35 0.74 282%Overall project 135% cost Project completion delayed 1 year 71.10 24.59% Project completion delayed 2 years 61.72 24.51%

Railway Operating Costs

Operating cost increased by 50% 207.32 310.98 50%22.49% 70.94 0.42 0.37 238% 269% Brent crude prices reduced to US$50 per barrel 0.542 0.380 -30% 63.33 21.25% 0.99 0.94 101% 106%Difference in econ.price/litre Operations with Thailand not re-established 789.60 621.29 -21% 63.01 21.88% 1.40 1.09Reduction 72% 92%in net project benefits

Benefits

Transport benefits reduced by 15% 1179.89 1002.91-15% 55.77 20.28% 2.52 2.38 40% 42%Reduction in total project benefits

Cut-off EIRR 12.00%

Source: Consultant’s estimates

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6.5 SUMMARY OF ADTA FINANCIAL ANALYSIS

This section contains a summary of the financial analysis of the railway restructuring project as developed in the associated Advisory TA 4645-CAM: Restructuring the Railway in Cambodia9. It must be emphasized that this analysis is focused on the expected financial results of a restructuring of the railway organization rather than of the rehabilitation of the railway infrastructure.

In essence, the proposal assessed involves an undertaking by the Royal Government of Cambodia to fund through concessionary loans and donor assistance the rehabilitation of the railway and to lease out the operation of the rehabilitated railway to a private operator who would in addition be responsible for maintenance of the infrastructure.

6.5.1 Form of proposed restructuring

The restructuring is based on the concept of a vertical separation of ownership from operation. Under the new structure, the Royal Railways of Cambodia (RRC) will retain ownership of the infrastructure and of the administrative and engineering personnel necessary to carry out the duties of a “landlord”. The Railway Operating Company (ROC) will then be responsible for the marketing and operation of the railway service, for permanent way and rolling stock provision and maintenance, and for administration.

A Joint Property Development entity will be formed by the RRC and ROC to receive parcels of land (and buildings) that can be rented or developed and are not part of the existing rental inventory of the RRC.

6.5.2 Financial obligations of the RRC and ROC

As the owner of the infrastructure, the RRC will make the basic investment in rehabilitating the railway to a good operating condition and will make modest expenditures for track maintenance during the construction period up until the handover of the railway to the private sector Railway Operating Company (ROC). The ROC will initially lease and (as necessary) repair locomotives and rolling stock to be provided by the RRC. Subsequently, with the build-up of traffic, the ROC will undertake investments in its own equipment and will secure equipment for an inter-modal yard in the Phnom Penh area.

For the use of tracks, the ROC will pay a track lease fee equal to the amount required to service the repayment of the debt (interest and principal) associated with rehabilitation loan. It will also pay a nominal equipment lease for existing RRC equipment used in its operations.

Proceeds from the property development and rental activity of the Joint Property entity will first be applied to reduce the amount of the outstanding rehabilitation debt, next to reduce the interest expense on the debt, and lastly divided between the RRC and ROC.

6.5.3 Key assumptions of the analysis for the RRC

(i) Diversion of traffic from road to rail

A Low Traffic Case in which some of the heaviest truck traffic (such as cement) will divert to rail gradually and will grow in line with the economy was used for the Base Case analysis of the RRC.

(ii) Rehabilitation Loans

9 CANARAIL, Restructuring of the Railway in Cambodia – Traffic Forecast and Financial Analysis Report, April 2006.

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Based on early construction cost estimates, the investment amount initially assumed for the analysis was US$ 59 million. This was subsequently increased (in the ADB Memorandum of Understanding issued on 21 June 2006) to US$ 67.6 million. However the amount initially assumed was varied by -10 and +10% respectively as a basis for sensitivity analysis. Bilateral concessionary debt will be used to fund the rehabilitation of track and bridges. Funding was assumed to be obtained at a weighted average interest cost of 2.5%, with a suitable moratorium on principal payments to allow for completing reconstruction and a term of approximately 30 years.

(iii) Annual Subvention of RRC

A subsidy was assumed to cover the shortfall, if any, between the RRC income from renting its tracks and equipment to the ROC plus income from other sources, and the debt service on the loans to rehabilitate the infrastructure. In this case, “other income” was assumed to include waived road maintenance tax, as well as the saved road maintenance costs resulting from the diversion of traffic from road to rail.

6.5.4 Key assumptions of the analysis for the ROC

(i) Traffic growth

The Low Growth Scenario was used for the Base Case. This projects traffic growth at 8-9 per cent from 2010. A High Growth Scenario which projects traffic growth at 10-18 per cent from 2010 was used for sensitivity testing.

(ii) Operating and Maintenance Costs

The largest item of expense is materials for the “normalized” maintenance of tracks and equipment. The second largest is fuel, which in the Base Case was assumed to be subject to fuel tax (although waiver of this tax was assumed for the purposes of sensitivity testing).

It was assumed that passenger operations would continue, but on the basis that they would be rendered revenue and expense neutral by the provision of government financial support to cover any shortfall of fare-box revenue from expenses plus a reasonable return on capital employed.

ROC is expected to provide additional equipment to carry expanding traffic. This will become a significant financial burden, particularly after the Siam Cement plant at Kampot comes on stream when there will be a need for a substantial fleet of covered hopper wagons to support shuttle train operations from the new plant.

6.5.5 Key analytical assumptions for the Joint Property Development agency

The main objective of the JPD is to maximize the realization of value from the parcels of urban land with which it is entrusted. This land will not be core to railway operations. It was envisaged that the JPD would be a joint venture operation with a small administrative overhead expense but no significant operating expenses. In the longer term it was expected that the JPD would generate a substantial stream of annual rents and development proceeds, but for the Base Case this stream was set to zero.

6.5.6 Base Case results for the RRC

Since the ROC will not be paying for track lease during the construction period, it was assumed that it would be necessary during this period to cover the shortfall between the RRC’s existing rent revenue and its debt service commitments with a subsidy.

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Owing to donor assistance and concessionary borrowing terms, RRC’s unadjusted cost of capital was computed at 3.5 per cent. In the Base Case with a low traffic projection and an assumed re- pricing of services, the Financial Internal Rate of Return for the RRC was computed at 3.96 per cent, or just equal to the Bank’s 4 per cent cut-off for this type of investment. The sensitivity cases indicated that the RRC financial outcomes are highly sensitive to investment levels. For a 10 per cent increase in the level of investment, the FIRR fell to 3.78 per cent (below the cut-off range), but for a 10 per cent decrease, rose to 4.2 per cent.

6.5.7 Results for the ROC

The assessed Base Case for the ROC was the Low Traffic Scenario with a minimum tariff increase in 2010 of 20 per cent. Although the operator would not have to pay track lease charges during the construction period, it would nevertheless have to shoulder the burden of operations, equipment maintenance, and new equipment acquisitions which would be more than its initial cash flow could support. It was therefore assumed that modest investment support (to the extent of about US$ 500,000) would be required from the entrepreneur.

The Base Case result indicated a positive FNPV and an IRR of 66 per cent, which was well within the range of commercial expectations, but the viability of the project is made more risky by the fact that positive cash flows occur later in the cash flow stream following two or three years of losses.

The sensitivity of financial results was tested for four cases in addition to the Base Case: fuel tax exemption; a high traffic scenario with no tariff increase; the Base Case with an investment increase of 10 per cent; and the Base Case with an investment decrease of 10 per cent. All sensitivity cases produced positive FNPV’s, and all, with the exception of the High Traffic Zero Re-price Scenario, produced FIRR’s in excess of 64 per cent. The latter case which indicated an FIRR of 32.7 per cent demonstrated that acceptable financial results can be achieved on a high traffic base without increased tariffs, even if the rehabilitation investment is as high US$ 59 million. Significantly, the financial results were highly sensitive to a 6 per cent increase in the net operating result, arising from the fuel tax exemption. This latter case produced the best result, with an FNPV of US$ 11.15 million and an FIRR of 74.9 per cent.

6.5.8 Recommendations

Several recommendations followed from the financial analysis (six each in relation to the RRC and the ROC).

(i) Recommendations related to the RRC

• Meet the objective to have a rehabilitated railway in place by late 2009; • Investment plans should be further vetted in order to find the least cost means of delivering commercial operations of the type needed; • RRC should have the ability to monitor the maintenance of its assets; • RRC cannot support loss-making public services – these must be subsidized by the RGC or closed down; • RRC should join with ROC to create a Joint Property Development partnership to maximize near and long term realization of its real property value; • For the purposes of funding debt service on rehabilitation loans, fuel taxes remitted by ROC to the Ministry of Economy and Finance and hard dollar road maintenance savings may be considered available to RRC for this purpose, as a subsidy, if required.

(ii) Recommendations related to the RRC

The RGC should consider strategies for the ROC, including:

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• Grant ROC tariff/rate-making freedom to raise tariffs in the absence of monopoly abuse; • Consider exempting ROC from fuel taxes directed to highway maintenance; • PSO remuneration for passenger losses and/or authority to cease passenger operations; • Agreement to defer ROC payments for the use of RRC infrastructure until it is constructed and can be made available fully for revenue service; • Enhance both ROC and RRC returns by allowing short and long term value realization of the RRC’s large property holdings; • Transfer Chinese locomotives for use by RRC and lease to ROC without making them responsible for repaying financing.

6.6 LIKELY DISTRIBUTION OF PROJECT BENEFITS

The overall worth of this project to the national economy, as is the case with all similar transport development projects will to a major extent be measured in terms of the benefits it brings to poor people and the extent to which it contributes, either directly or indirectly, to poverty reduction. For a country like Cambodia with an estimated one third of its population below the poverty line, poverty reduction is the foremost priority for all major development projects implemented by the government. Further, since 90 per cent of the poor in Cambodia live in rural areas,10 the focus of these development projects should be on the poorest areas outside of the capital.

The flow of benefits to the poor from this project may be expected to include:

• Direct benefits in the form of reduced personal transport costs and new employment opportunities in transport related activities, which will be generated by increased railway traffic; and

• Indirect benefits in the form of lower prices paid for staple commodities and of induced economic activity which will in turn create additional income generation and employment opportunities

6.6.1 Direct benefits

Since the major goal of the railway rehabilitation project is the future operation of efficient and cost effective freight transport services, under a restructured management regime, it might be expected that the project will not have a significant impact in terms of a reduction in the personal transport costs of the poor. While it has been estimated that significant economic benefits will flow from the provision passenger services on the rehabilitated railway, it is unlikely that these benefits can be realized without a substantial level of financial support from the government (estimated in the region of US$ 0.6 million in the first year of operation, rising to US$ 3 million per year by 2030). The decision whether or not to operate these services now rests with the government. However, if it is decided to operate these services, they might be expected to provide poor communities, especially those located along the Northern line, with low cost transport services and greater convenience for carrying merchandise to and from markets than is provided by existing road transport.

Rehabilitation of the railway infrastructure will allow the railway to penetrate new freight markets, such as shipping containers, and to extend its activities in existing freight markets, such as cement and petroleum. Such developments will lead to the establishment of new transport service industries and facilities, such as rail container handling facilities in Sihanoukville, an Inland Container Depot and consolidated cement distribution facilities in Phnom Penh, and very likely warehousing and other entrepot facilities near the border with Thailand. Experience elsewhere in the region has shown that this is a likely possibility and that the establishment of such facilities will create new employment and livelihood opportunities for poor people in the provinces.

10 Royal Government of Cambodia, National Strategic Development Plan, 2006-2010, Draft 08 November, 2005

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6.6.2 Indirect benefits

The rehabilitated and restructured railway may be expected to make a substantial contribution to a reduction in the costs of transporting staple commodities and thus to reducing the prices paid by poor people for these commodities. Cement is one example of a staple commodity for which there is likely to be a significant cost reduction. Cambodian transport costs are estimated to represent as much as 11-13 per cent of the retail price of cement in Phnom Penh (of about US$ 75-80 per tonne), and this is also likely to be the case with towns along the Northern Line, which would receive their cement from Thailand. Based on an analysis of future rail costs, it is very likely that the rail charge from Sihanoukville (currently US$ 8.30 per tonne) could reduce by as much as half following rehabilitation of the railway. Thus, there is strong potential, following the rehabilitation of the railway, to pass on significant reductions in transport cost in the form of reduced prices for cement consumers, not only in Phnom Penh but also in the poorer rural communities. With the construction of new rail served cement plants in Kampot Province and the introduction of locally manufactured cement to the market, there will be potential for even larger cement price reductions, of which the main beneficiaries will be poor people.

The improved transport linkage with Thailand provided by the restored 48 km “missing link” will facilitate increased trade, thereby contributing to the greater integration of the Cambodian economy within the region, as well as to a faster rate of economic growth. In this case, the benefits will be received by the wider community, but it has to be acknowledged that, overall economic growth provides a strong catalyst for poverty reduction, provided its benefits can be distributed to the communities in greatest need. There is some evidence of poverty reduction coinciding with sustained high rates of economic growth in Cambodia over the past decade.11 Thus it is possible that the railway rehabilitation project will also contribute to poverty reduction through its economic multiplier impacts, by encouraging the creation or expansion of economic activity in the poorer communities located along the railway alignment.

6.7 BENEFIT MONITORING SYSTEM

If well designed and implemented, a Benefit Monitoring System can make an important contribution to ensuring that the project generates its anticipated benefits.

As important as the design of the system itself, is the commitment of senior officials of the Ministry of Public Works and Transport to make it work, and to contribute the necessary level of resources to make it effective.

It is desirable for the same organizational unit having the responsibility for executing the rehabilitation project to also be responsible for monitoring the realization of its benefits. Since this responsibility resides in the Project Implementation Team (PIT) recently established within the Ministry of Public Works and Transport, it would be desirable that the PIT also have a responsibility for benefit monitoring. This implies that the PIT should also have access to staff with sufficient skills to be able to discharge this function satisfactorily, which may require recruitment and training of qualified staff.

Since about half the benefits identified for the Rehabilitation project will be in the form of fuel savings from a diversion of road traffic to rail, it is clearly important that priority be given to monitoring the trend in fuel prices. Increases in fuel prices can be both a benefit and a disbenefit for the project in the sense that they while they will increase the fuel savings attributable to the project, they will also increase railway operating costs.

Other factors which will require monitoring are:

• Actual post-project traffic growth against forecasted traffic growth;

11 See, for example, ANNEX III Progress in Poverty Reduction and NSDP Challenges in the National Strategic Development Plan 2006-2010, Draft, 08 November 2005.

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• Border prices of railway rolling stock; • Border prices of motor vehicles; • Changes in the fuel efficiency of railway traction and rolling stock equipment; • Changes in the fuel efficiency of motor vehicles; • Changes in rail operating efficiency and rolling stock utilization; • Changes in wage rates and other railway unit costs as compared with those of road transport; • Improvement of the primary road system and of vehicle average speeds in the relevant transport corridors; • Changes in the level of road maintenance costs for relevant roads; and • Development of an improved data base on road accident occurrence and cost.

It is envisaged that the PIT would be provided with the suite of Excel files used to measure the project economic returns, including rail and road operating costs models, and should use these to periodically re-calculate EIRR’s on the basis of revised parameters and inputs.

To assist this process, the PIT should continually update the baseline input data, as listed in Table 6.7.1 below:

Table 6.7.1: Baseline data for economic benefit monitoring

Factor Baseline value Economic prices

Diesel Oil, US$ per litre 0.542 Average Railway wage, US$ per year 1,029

Railway rolling stock (US$) Locomotives 1,000,000 Cement wagons 40,000 Petroleum wagons 60,000 Container wagons 40,000 Passenger carriages 350,000

Motor vehicles (US$) Articulated trucks 55,800 3 axle trucks 46,500 Large buses 43,400 Minibuses 21,100

Railway operations

Average speeds (km per hour) Freight trains 35 Passenger trains 50

Wagon cycle times (days) Cement, Southern Line 1.5 Cement, Northern Line 4 Petroleum, Southern Line 2.5 Petroleum, Northern Line 4 Containers, Southern Line 2.5 Containers, Northern Line 4

Railway O&M costs

Fixed track maintenance cost (start of operations), US$ per year 630,000

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7. PROCUREMENT AND DOCUMENTATION

7.1 GENERAL

7.1.1 Procurement Documentation

The following Procurement Documents have been produced by the TA Consultant:

Bidding Document for Design and Construction of Railway Rehabilitation comprising:

Volume 1 Instructions to Bidders, Bid Data Sheet, Evaluation and Qualification Criteria, Bidding Forms, Eligible Countries, General Conditions of Contract, Particular Conditions of Contract, Contract Forms. Volume 2 Employer’s Requirements, Design Criteria, Specifications, Bank Guarantee and Certificate, and Change Order. Volume 3 Employer’s Requirements, Supplementary Information (Bridge & Culvert Data) Volume 4.1 Drawings RRL 1 – Southern Line Volume 4.2 Drawings RRL 2 – Northern Line: Section 1 – Phnom Penh to Sisophon Volume 4.3 Drawings RRL 2 – Northern Line: Section 2 – Sisophon to Poipet

7.1.2 ADB Guidelines and Standard Bidding Documents

The documents produced have been prepared in accordance with the following ADB Guidelines, Standard Bidding Documents and Standard Procurement Documents:

Guidelines Apr 2006 ADB Procurement Guidelines

Works Apr 2006 Standard Bidding Document Procurement of Plant Design, Supply and Install Single-Stage Bidding Procedure

7.1.3 Project Title

The Project Title used in the Procurement Documents is ‘GMS Rehabilitation of the Railway in Cambodia’. This can be changed if required following Loan negotiations.

7.1.4 Contract Packaging and Identification of Project Components

The following codes have been given to the various project components to facilitate reference and identification by all parties during the procurement, construction and monitoring process.

Contract B Design and Construction of Railway Rehabilitation comprising: RRL 1 Southern Line: Phnom Penh – Sihanoukville RRL 2 Northern Line: Phnom Penh – Poipet

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7.1.5 ADB Railway Restructuring Project

The Bidding Document (all the Volumes listed in 7.1.1) can be used to convey accurately, to potential bidders for the railway operation concession, the scope and duration of the Rehabilitation Project and its impact on railway operations during the implementation period.

Bidders for the Rehabilitation works are being informed, in the Bidding Document of the restructuring of the Royal Cambodian Railways (RCR). To ensure that the implementation period is as short as possible, a minimum track possession time of eight hours has been imposed on RCR or the railway operating company which replaces it. This very important factor must be agreed by all affected parties and communicated to potential concessionaires.

During the bidding process potential bidders will be encouraged to make contact with RCR and potential concessionaires in order that all parties become aware of possible mutual benefits, constraints and areas of co-operation. To ensure timely implementation of the Project, this preliminary contact must be continued and maintained during the contract execution phase.

7.2 PREQUALIFICATION

The Consultant proposed to adopt the Standard Two-Stage Two Envelopes procedure with Prequalification procurement procedure. At that time, the Bidding and Prequalification Documents was prepared to suit the above said procurement method.

However, at the beginning of October 2006, for the purpose of speeding up the procurement process, the Ministry of Public Works and Transport with the approval from the Asian Development Bank finally decided to adopt the Standard Single Stage Two Envelops Procedure for the tender for the railway rehabilitation. Following the decision, the Bidding Documents are modified accordingly.

The main concepts in the previous draft Prequalification Document submitted during the Draft Final Report were emphasized the following.

The ADB’s Standard Prequalification Document – Prequalification of Bidders has been used to prepare the Prequalification Document for Contract B –Design and Construction of Railway Rehabilitation.

The Prequalification Document, which contains the following principal information, has been prepared in such a manner as to permit the Employer to prequalify only those applicants who have recent, relevant, railway rehabilitation experience while excluding other applicants who might have very good general experience.

Qualification Criteria Scope of Works and major project components Estimated quantities of major components Construction methods required Contract implementation period

7.3 DESIGN-BUILD CONTRACT

7.3.1 Procurement Procedure and Conditions of Contract

As stated earlier, although the Standard Two-Stage Two Envelopes procedure with Prequalification was suggested by the Consultant based on the reasons of efficiency and economy, the Ministry of Public Works and Transport preferred to adopt is the standard Single-Stage Two Envelopes procedure for the purpose of speeding the Works.

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The General Conditions of Contract (GCC) are the:

Multilateral Development Banks (MDB) General Conditions of Contract based on the Model Form for Process Plant Construction published by the Engineering Advancement Association of Japan (ENAA). The GCC are incorporated in the “Standard Bidding Document, Procurement of Plant Design, Supply and Install Single-Stage Bidding Procedure” published in April 2006 by the Asian Development Bank.

7.3.2 Unexploded Ordnance (UXO)

The clearance of Unexploded Ordnance (UXO) will be carried out in two phases

A. Clearance by Government

The areas to be handed over to the Contractor which have been cleared of Unexploded Ordnance (UXO) in the Right-of-Way (ROW) from Sisophon to Poipet will be clear by the Government.

B. Clearance by Contractor

All additional areas which the Contractor may require for access, working areas adjacent to track or structures, temporary storage, temporary offices or temporary accommodation shall be agreed with the Engineer and cleared of UXO by the Contractor. The clearance work shall be carried out in accordance with Employer’s Requirements and all related costs shall be included in the Contractor’s general obligations. The procedures for UXO clearance are detailed in Section 8 – Unexploded Ordnance of the Cambodia Construction Specification to which the Employer’s Requirements make reference.

The first major deadline to be met by the Government is the UXO clearance from Sisophon to Poipet in Lot 2 area. This area, which is currently inaccessible because of UXO risks, has not been physically inspected by the TA Consultant. The 48km long area will have to be cleared of UXO by the Government in time to permit potential bidders to inspect the site to enable them to prepare their bids.

The outline programme for this priority UXO clearance by the Government is given in Section 3.8 – Project Implementation Schedule.

7.3.3 Domestic Preference and Local Participation

The standard ADB domestic preference criteria have been included in the evaluation of bids. To qualify for domestic preference a local firm or local partner in a joint venture must meet specified qualification requirements.

There is the possibility that local concrete manufacturers will be able to participate in the manufacture of concrete sleepers. The choice as to whether the sleepers will be imported or manufactured locally will be made by the Contractor. The scope of the sleeper supply (more than 400,000 units) indicates that the Contractor will probably manufacture locally.

7.3.4 Sections for Completion

The Contractor’s detailed programme submitted as part of the Contractor’s Documents in the Employer’s Requirements will incorporate the Employer’s Requirements for completion of the

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specified sections and confirm the direction and sequence of the works. The Contractor may propose an equivalent alternative rehabilitation sequence for approval by the Engineer, which approval will not be unreasonably withheld.

The time for completion, from the Commencement Date defined in the Contract, will be 130 weeks including mobilization and design.

7.3.5 Provisional Sums

In a contract of this nature provisional sums are normally included for physical contingencies, dayworks and price adjustments. In order to reduce the project estimates to an acceptable level the contingency sums have been reduced to an absolute minimum or, in the case of dayworks, deleted altogether.

The Bid Prices will include, as a provisional sum, an allowance of one percent (1%) of the Subtotal of Schedules for physical contingencies.

The Bid Prices will include, as a provisional sum, an allowance of seven percent (7%) of the Subtotal of Schedules for cost adjustment in accordance with the Adjustment Formula given in the Particular Conditions of Contract. The formula, which will be applied to all payments except the advance made to the Contractor, includes indices and weightings for the following categories of work.

• Local Labour • Local Fuel • Local Cement • Structural Steel • International Transport • Construction Machinery • Specialist Personnel The formula and the weightings of the indices have been fixed by the TA Consultant but bidders may submit alternative formula for consideration.

7.3.6 Currencies and Payment Schedules

Bids will be submitted in US Dollars and payments will be made to the Contractor in the currency of the bid in accordance with the Payment Schedules which allow the release of specified percentages of the Bid Price on completion of the specified stages of the works.

No payments to the Contractor will be made in local currency.

Release of ADB Loan Funds for payments to the Contractor will be by direct disbursement from the ADB to the Contractor’s bank account following receipt by the Bank of appropriate authority from the Borrower.

7.3.7 Design Criteria

The outline design criteria in the Employer’s Requirements are based on Cambodian and international standards. These can be replaced by equivalent or superior standards submitted by the successful bidder for the Engineer’s approval, which shall not be unreasonably withheld. This submission, which forms part of the Contractor’s Documents referred to in the Employer’s Requirements, is made after award of the Contract.

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The general 20t axle load is applicable to all new construction works including the ballast bed. Existing bridges on the Northern Line to Poipet have been designed for a 15t axle load and these bridges will not be upgraded to the 20t standard.

The design criteria for rail fastenings to be supplied with new concrete sleepers in Lot 1 and Lot 2 are detailed in Specification S11 – Rail Fastening System for PC Sleepers.

7.3.8 Outline Construction Specifications

The outline construction specifications are based on Cambodian and international standards. These can be replaced by equivalent or superior specifications and standards submitted by the successful bidder for the Engineer’s approval which shall not be unreasonably withheld. This submission, which forms part of the Contractor’s Documents referred to in the Employer’s Requirements, is made after award of the Contract.

Owing to budget constraints, rail welding and the provision of a single-sleeper tamping machine were deleted from the project. The draft specifications for these two sections of work had already been prepared when the deletion was made. The two specifications are contained in the Draft Bidding Document dated May 2006 which was tabled during the Bank’s mission to Cambodia in June 2006.

During the preparation of the Outline Construction Specifications, the Ministry of Public Works and Transport (MPWT) requested that the specifications be prepared in a format similar to the Cambodia Construction Specification (2003) for possible future issue as a Cambodia Railway Specification. While accepting that this would have been a useful exercise it was not pursued because the work had already been substantially completed and because other, perhaps superior, specifications may be used in the works following submissions from the Contractor.

7.3.9 Training

There is no training component envisaged in the design-build contract for the rehabilitation of the railway. In the deleted specifications for rail welding and tamping machine, training had been included. Rail welding is now not included in the project and tamping will be carried out by the Contractor with his own equipment which may be hired or owned.

If and when the Railway Operating Company (ROC) acquires a tamping machine or welding equipment, training of ROC staff will be part of those supply contracts.

7.4 CONSTRUCTION SUPERVISION

7.4.1 General

TOR for consultancy services was not prepared in this TA, hence, TOR should be prepared by any other consultant(s).

7.4.2 Counterpart Staff

The staff of the Employer’s Project management Unit (PMU) will be used to the fullest extent to assist the supervision consultant.

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7.4.3 Required Expertise

The consultant’s team will have the following expertise to ensure the timely completion of the works and the supervision, as the Engineer under the Contract, of the design-build contract.

• Railway rehabilitation experience • Railway track design expertise • Railway structures design expertise (drainage, culverts, bridges) • Experience in the administration, as the Engineer, of design-build contracts • Familiarity with procedures in the in the administration of Bank-funded projects

7.4.4 Training and Institutional Strengthening

No formal training is envisaged for counterpart staff. All transfer of expertise will be by on-the-job training.

Training and institutional strengthening in railway maintenance and operations will be carried out by the ROC.

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8. CONCLUSIONS AND RECOMMENDATIONS

8.1 CONCLUSION

The feasibility study proved that the rehabilitation of both Southern Line and Northern Line are technically, economically and environmentally viable with adequate economic internal rate of return. Therefore, it is recommended to implement the projects as scheduled.

8.2 RECOMMENDATIONS

The planned rehabilitation works are limited to those basic items, such as, ballast, sleepers, rail joints, improvement of track irregularities, and rehabilitation/reconstruction of bridge and culverts, due to the financial circumstances.

There are many items which are recommended to be done in near future in order to reduce the railway maintenance and operation costs, and to improve the operational efficiency. The followings are the specific items recommended for early implementation;

(1) Improvement of Fork Station At present, a simple turnout is installed at the branching point of Southern line and Northern line near Fork station. There is neither passing track nor refuge track existing at Fork station. In near future, track capacity of Fork station shall be increased by providing crossing loops with signalling system in order to accommodate the increased number of trains. This will be studied in the Supplementary Report to be issued at the end of August 2006. If the improvement of Fork station is required at early stage, the improvement work (excluding signalling work) shall be added in the scope of the Rehabilitation of Northern Line. (2) Rail Welding at Southern Line Welding of rails has many advantages as follows; • To increase the life of rails due to decrease in wear at ends. • To decrease in maintenance cost to the extent of 25% approx. by affording more lateral, longitudinal and vertical stability to the track. • To give riding comfort to passengers. • To reduce creep (longitudinal movement of rails) considerably. At some sections of Southern Line, rails have been welded. The condition of the track using welded rails is better than the sections where rails are not welded. In order to reduce the maintenance cost and to extend the life of rails, rail welding is strongly recommended at whole section of Southern Line. Rail welding at Northern Line is not recommended because the wear of existing 30 kg rail is very much. In case of welding, rail ends shall be cut off about 25 cm to remove cracked or deformed parts. (3) Replacement of Rail and Sleepers at Northern Line Rails and sleepers used in Northern Line are 65 to 77 years old. Rail ends have been deformed or cracked due to the corrosion of bolt holes. It is actually overage structure to serve as the main line track. It is strongly recommended to replace with similar track structure as Southern Line using heavier rails with PC sleepers.

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(4) Signalling and Telecommunication System The existing train operation speed on both Northern and Southern Lines are less than 30 km/h, and the number of trains is very limited. When the track rehabilitation project is completed, and number of trains and their running speeds are increased, the possibility of accidents at level crossings will also be increased. In order to secure the safety at road crossings, at least warning device and barrier shall be equipped at major crossings, such as National Roads and major local roads where traffic volume is large. Due to the daily operation of trains on Northern and Southern Lines are very few at present, RRC is able to operate those trains without signalling system. They are operating trains only by radio transmitter equipped at major stations. Once the number of trains and their operating speeds are increased by the rehabilitation project, some basic signalling and telecommunication systems shall be equipped in order to secure the safety train operation. This will be described in the Supplementary Report to be issued at the end of August 2006. (5) Realignment at Thai-Cambodian Border If railway alignment at Thai side is required to re-align due to environmental and/or social issues, railway alignment at Cambodian side shall also be modified accordingly. Possible realignment between Aranyaprathet (Thailand) and Poipet will be studied based on a satellite photo in the Supplementary Report. (6) Construction of Cargo Handling Facilities near Fork Station Upon the completion of railway rehabilitation work, it is expected that the quantity of freight trains will be increased by shifting from road to trains. In addition to these fright trains from new cement factories are also expected. In order to handle those increased number of freight trains, some storage tracks and cargo handling facilities both for container and bulk, may be required around Fork station where Northern Line and Southern Line branching. (7) Precautions to Inhabitants along the Railway Track

At present, inhabitants along the railway track are not familiar with high speed train operation more than 50 km/h. It is anticipated that many accidents with vehicle, human and animals may happen after the completion of the project. In order to minimize those accidents, it is recommended to give precautions to the inhabitants along the railway track against the higher speed train operation during the construction.

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