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Investigation Report Cambodia: Forest Concession Management And Report No. 35556 Investigation Report Cambodia: Forest Concession Management and Control Pilot Project (Credit No. 3365-KH and Trust Fund. 26419- JPN) March 30, 2006 About The Panel The Inspection Panel was created in September 1993 by the Board of Executive Directors of the World Bank to serve as an independent mechanism to ensure accountability in Bank operations with respect to its policies and procedures. The Inspection Panel is an instrument for groups of two or more private citizens who believe that they or their interests have been or could be harmed by Bank-financed activities to present their concerns through a Request for Inspection. In short, the Panel provides a link between the Bank and the people who are likely to be affected by the projects it finances. Members of the Panel are selected “on the basis of their ability to deal thoroughly and fairly with the request brought to them, their integrity and their independence from the Bank’s Management, and their exposure to developmental issues and to living conditions in developing countries.”1 The three-member Panel is empowered, subject to Board approval, to investigate problems that are alleged to have arisen as a result of the Bank having ignored its own operating policies and procedures. Processing Requests After the Panel receives a Request for Inspection it is processed as follows: · The Panel decides whether the Request is prima facie not barred from Panel consideration. · The Panel registers the Request—a purely administrative procedure. · The Panel sends the Request to Bank Management, which has 21 working days to respond to the allegations of the Requesters. · The Panel then conducts a short 21 working-day assessment to determine the eligibility of the Requesters and the Request. · If the Panel does not recommend an investigation, and the Board of Executive Directors accepts that recommendation, the case is considered closed. The Board, however, may approve an investigation against the Panel’s recommendation if warranted. · Three days after the Board decides on whether or not an investigation should be carried out, the Panel’s Report (including the Request for Inspection and Management’s Response) is publicly available through the Panel’s website and Secretariat, the Bank’s Info Shop and the respective Bank Country Office. 1 IBRD Resolution No. 93-10; IDA Resolution No. 93-6. ii · If the Panel recommends an investigation, and the Board approves it, the Panel undertakes a full investigation, which is not time-bound. · When the Panel completes an investigation, it sends its findings and conclusions on the matters alleged in the Request for Inspection to the Board as well as to Bank Management. · The Bank Management then has six weeks to submit its recommendations to the Board on what actions the Bank would take in response to the Panel’s findings and conclusions. · The Board then takes the final decision on what should be done based on the Panel's findings and the Bank Management's recommendations. · Three days after the Board’s decision, the Panel’s Report and Management’s Recommendation are publicly available through the Panel’s website and Secretariat, the Bank’s Project website, the Bank’s Info Shop and the respective Bank Country Office. iii Table of Contents ABOUT THE PANEL ..................................................................................................................................................ii TABLE OF CONTENTS ............................................................................................................................................ iv FIGURES, TABLES, AND PICTURES ................................................................................................................. vi ACKNOWLEDGEMENTS ......................................................................................................................................vii ABBREVIATIONS AND ACRONYMS ..............................................................................................................viii EXECUTIVE SUMMARY ........................................................................................................................................ix CHAPTER 1 INTRODUCTION ...............................................................................................................................1 A. EVENTS LEADING TO THE INVESTIGATION......................................................................................................... 1 1. The Request........................................................................................................................................................1 2. Management Response....................................................................................................................................3 3. Eligibility of the Request.................................................................................................................................5 4. The Investigation...............................................................................................................................................5 5. Bank Operational Policies and Procedures Applicable to the Project...................................................6 B. THE PROJECT ........................................................................................................................................................... 7 CHAPTER 2 PROJECT CONCEPT AND DESIGN ..........................................................................................9 A. FORESTS AND SOCIETY IN CAMBODIA................................................................................................................ 9 1. Forestry in the Social, Economic and Political Context............................................................................9 2. Economics of Industrial Forestry and Concessions.................................................................................11 3. History of Concession Management............................................................................................................15 4. Evolution of Forest Policy in Cambodia....................................................................................................17 5. Ethnographic Context of Indigenous Peoples and Ethnicity in Cambodia..........................................23 6. Civil Society in a Post-Conflict Situation...................................................................................................26 B. PROJECT IDENTIFICATION AND LINKS WITH OTHER WORLD BANK PROJECTS.......................................... 27 C. PROJECT FOCUS ON CONCESSION SYSTEM....................................................................................................... 30 1. The Bank Forestry Agenda in Cambodia...................................................................................................33 2. Guidelines and Procedures for Concession Areas...................................................................................38 D. CHOICE OF THE LEARNING AND INNOVATION LOAN AS FINANCING INSTRUMENT ................................... 41 CHAPTER 3 ENVIRONMENTAL COMPLIANCE........................................................................................44 A. BASIS FOR BANK INVOLVEMENT IN THE PROJECT .......................................................................................... 44 B. IDENTIFICATION AND PROTECTION OF FORESTS OF HIGH ECOLOGICAL VALUE........................................ 48 C. IDENTIFICATION AND PROTECTION OF NATURAL HABITATS........................................................................ 51 D. NEED FOR AN ENVIRONMENTAL ASSESSMENT................................................................................................ 53 E. ENVIRONMENTAL CATEGORIZATION OF THE PROJECT ................................................................................... 56 CHAPTER 4 SOCIAL COMPLIANCE ...............................................................................................................58 A. NEED FOR A SOCIAL ASSESSMENT .................................................................................................................... 58 1. Identification of Affected Population and Project Area...........................................................................59 2. Impacts on Local People of Illegal Logging of Resin Trees ...................................................................60 3. Assessment of the Impacts of Concession Operations on the Affected Population.............................65 B. CONSULTATION WITH AFFECTED PEOPLE DURING PROJECT PREPARATION................................................ 71 C. INDIGENOUS PEOPLES DEVELOPMENT PLAN ................................................................................................... 75 D. CULTURAL PROPERTY: SPIRIT FORESTS AND ARCHEOLOGICAL SITES........................................................ 77 CHAPTER 5 PROJECT IMPLEMENTATION AND SUP ERVISION ......................................................82 A. PROJECT ORGANIZATIONAL FRAMEWORK....................................................................................................... 83 B. HISTORY OF PROJECT IMPLEMENTATION: A BRIEF OVERVIEW.................................................................... 84 C. ISSUES RELATED TO IMPLEMENTATION AND SUPERVISION........................................................................... 88 iv 1. Provision of Technical Assistance...............................................................................................................88
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