Project Administration Memorandum

Project Number: 37287 Loan Number: 2376 Grant Number: 0092 January 2009

Kingdom of Cambodia: Tonle Sap Lowlands Rural Development Project

The project administration memorandum is an active document, progressively updated and revised as necessary, particularly following any changes in project or program costs, scope, or implementation arrangements. This document, however, may not reflect the latest project or program changes.

ASIAN DEVELOPMENT BANK

LOAN NO. 2376 & GRANT NO. 0092

TONLE SAP LOWLANDS RURAL DEVELOPMENT PROJECT

PROJECT ADMINISTRATION MEMORANDUM

JANUARY 2009

CURRENCY EQUIVALENTS (as of 29 October 2007) Currency Unit – riel/s (KR) KR1.00 = $0.000245 $1.00 = KR4,074

ABBREVIATIONS

ADB – Asian Development Bank ADF – Asian Development Fund CDF – Commune Development Fund CLAC – commune land acquisition committee EA – executing agency EIRR – economic internal rate of return ENPV – economic net present value FAO – Food and Agricultural Organization FWUC – farmer water user committee FWUG – farmer water user group GAP – gender action plan GDP – gross domestic product HDI – Human Development Index IA – implementing agency ICS – independent consultant selection IEE – initial environmental examination IFAD – International Fund for Agricultural Development IRC – inter-ministry resettlement committee LARP – land acquisition and resettlement plan MAFF – Ministry of Agriculture, Forestry and Fisheries MEF – Ministry of Economy and Finance MFI – microfinance institution MOI – Ministry of Interior MOWRAM – Ministry of Water Resources and Meteorology MRD – Ministry of Rural Development NCB – national competitive bidding NGO – nongovernment organization NSDP – National Strategic Development Plan O&M – operation and maintenance PDA – Provincial Department of Agriculture PDRD – Provincial Department of Rural Development PDWRAM – Provincial Department of Water Resources and Meteorology PLAU – Provincial Local Administration Unit PMO – project management office PPMS – project performance management system PPTA – project preparatory technical assistance PRS – provincial resettlement subcommittee PSC – project steering committee QCBS – quality and cost-based selection SDR – special drawing rights TA – technical assistance TSI – Tonle Sap Initiative

GLOSSARY

Buffer Zone. A zone that usually surrounds or adjoins core areas, and is used for cooperative activities compatible with sound ecological practices, including environmental education, recreation, ecotourism, and research. In Tonle Sap Biosphere Reserve, a buffer zone of about 5,400 square kilometers (km2) surrounds the core areas up to the outer limit of the flooded forest.

Commune. The lowest level of administrative unit in Cambodia, consisting of several villages.

Commune Council. An elected body that governs commune administration in Cambodia. In addition to fulfilling its administrative tasks, commune councils participate in informal dispute resolution, plan and implement development projects, perform some agency functions for the central and provincial governments, and conduct advocacy. Development activities consist mainly of small-scale infrastructure and public goods projects.

Core Areas. Securely protected sites for conserving biodiversity, monitoring minimally disturbed ecosystems, and undertaking research and other low-impact uses such as education. In Tonle Sap Biosphere Reserve, core areas are in Prek Toal (213 km2), Battambang; Boeng Tonle Chhmar (Moat Kla) (145.6 km2), Kampong Thom; and Stung Sen (63.5 km2), Kampong Thom.

Flooded Forest. A descriptive term for the particular natural vegetation that originally covered most of the Tonle Sap’s floodplains. It is now characterized by low forest and shrubs that still account for the productivity of Tonle Sap.

Human Development Index. The Human Development Report ranks countries according to a score between 0 and 1 on the Human Development Index (HDI). A country’s HDI score depends on life expectancy at birth; adult literacy; combined gross primary, secondary, and tertiary school enrollment; and real per capita income in purchasing power parity dollars. (United Nations. 1999. Human Development Report 1999. Available: http://www.undp.org/hdro/pp.htm).

Livelihood. The capabilities, assets, and activities required for a means of living. A livelihood is sustainable when it can cope with stresses and shocks, and maintain or enhance itself in the present and future without undermining the natural resource base.

Lowlands. The land area that is presently under predominantly agricultural (cropping and grazing) use on the flat-lying colluvial-alluvial plain around Tonle Sap Lake (also known as the Great Lake or Tonle Sap). The lower or innermost limit is determined by the boundary of the buffer zone.

Provincial Support Team. Provincial support teams will comprise the following: (i) community- driven development specialist, (ii) rural infrastructure/road engineer, (iii) rural infrastructure/irrigation engineer, (iv) procurement specialist, (v) quality assurance engineer, and (vi) an accountant. The team members will work in line department offices, coordinated by the community-driven development specialist in each province.

Seila Program. An aid mobilization and coordination framework providing support to Cambodia's decentralization and deconcentration reforms. Under the Government’s overall reform program, a three-tiered system of planning and budgeting is emerging—focused on commune, province, and national levels. The Seila program ended in December 2006. The activities carried out by Seila are now under the mandate of the National Committee for Management of the Decentralization and Deconcentration Reform and within the Ministry of the Interior.

Transition Zone. An area in which stakeholders work together in a variety of economic and other activities to manage and develop a biosphere reserve’s natural resources in a sustainable manner. In Tonle Sap Biosphere Reserve, a transition area of about 9,000 km2 lies between the outer boundary of the buffer zone and highways no. 5 and 6.

NOTES

(i) The fiscal year (FY) of the Government of Cambodia and its agencies ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2007 ends on 31 December 2007.

(ii) In this report, “$” refers to US dollars.

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CONTENTS

Page

LOAN AND PROCESSING HISTORY iii PROJECT FRAMEWORK iv MAP vii I. PROJECT DESCRIPTION

A. Introduction 1 B. Project Area and Location 1 C. Impact and Outcomes 1 D. Outputs 2 E. Special Features 4

II. COST ESTIMATES AND FINANCING PLAN

A. Cost Estimates 6 B. Financing Plan 6 C. Allocation of Loan and Grant Proceeds 7

III. IMPLEMENTATION ARRANGEMENTS

A. Executing and Implementing Agencies 10 B. Project Management Organization 11

IV. IMPLEMENTATION SCHEDULE 14

V. CONSULTANT RECRUITMENT

A. Recruitment of Consulting Firms using QCBS Method 15 B. Recruitment of Individual Consultants 22

VI. PROCUREMENT 24

VII. DISBURSEMENT PROCEDURES

A. Direct Payment Procedure 28 B. Reimbursement Procedure 29 C. Commitment Procedure 30 D. Imprest Fund Procedure 30 E. Statement of Expenditures Procedure 33

VIII. PROJECT MONITORING AND EVALUATION 34

IX. REPORTING REQUIREMENTS 35

X. AUDITING REQUIREMENTS 35

XI. MAJOR LOAN COVENANTS 35

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XII. ANTICORRUPTION 36

XIII. OTHERS 37

XIV. KEY PERSONS INVOLVED IN THE PROJECT 38

Appendices (located after each corresponding Section) After Section

1. Commune and Subproject Selection Criteria I 2. Province and commune development and investment planning cycle I 3. Selection criteria and terms of reference for commune council supporters I 4. Detailed cost estimates II 5. Indicative staffing schedule; terms of reference of consultants; flowchart of consultant recruitment for qcbs and individual consultants; and templates to be used for adb submission V 6. Disbursement forms VII 7. Key performance monitoring indicators VIII 8. Pro forma of the executing agency’s progress report IX 9. Audit letter X 10. Major loan covenants XI 11. Gender action plan XIV 12. Good governance framework 13. Summary environmental assessment; XIV environmental assessment and review framework 14. Summary resettlement framework; XIV resettlement framework; resettlement entitlement matrix

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LOAN AND PROCESSING HISTORY

a. PPTA Approval - 21 December 2005 b. Feasibility Study - June 2006-March 2007 c. Fact-Finding - 15 to 29 March 2007 d. Management Review Meeting (MRM) - 30 August 2007 e. Appraisal Mission - 10-20 September 2007 f. Staff Review Committee (SRC) Meeting - 5 October 2007 g. Loan Negotiations - 25 to 26 October 2007 h. Board Circulation - 14 November 2007 i. Board Consideration and Approval - 5 December 2007 j. Loan Agreement Signing - 18 February 2008 k. Loan Effectiveness - 5 November 2008

Conditions of Loan Effectiveness

The following are specified as additional conditions to the effectiveness of the Loan:

(i) The Project Steering Committee shall have been established; and (ii) The Project Management Office shall have been established and the Project Director shall have been appointed.

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DESIGN AND MONITORING FRAMEWORK

Design Performance Data Sources/Reporting Assumptions Summary Targets/Indicators Mechanisms and Risks Impact Assumption Improved livelihoods in 5 years after project MAFF records on • No major selected communes completion: production political, increase economic economic, or activity and household Agricultural production Provincial statistical natural resource incomes and economic activity in records shocks impact communes increased the lowland by 15% Visual observation of areas communes Number of households classified poor reduced Commune council by 30% assessment

Outcome At project completion: Assumption Rural populations use Annual cropping MAFF and FWUG records • Agro- improved infrastructure intensity increased by of crop production and meteorological and services in 25% intensity conditions are selected communes to not extreme in increase economic Travel time from village Interview with commune 12 months activity and household to commune market councils and beneficiaries following income reduced by 10% intervention

Women participate in FWUG records Risk FWUG and other • Microfinance production groups institutions representing about 30% continue to be of members risk-adverse and do not increase A minimum of 30% of FWUC minutes of loan portfolio in committee members meetings line with are female requirements for Commune council records livelihood Small business and/or investment specialized livelihoods in rural areas increased with 450 new enterprises operating in project communes Outputs Assumptions 1. Rural infrastructure is • Decentralization improved and deconcentration policy continues 1.1. Rural access roads 230 km of rural access PPMS reports and to be improved roads are rehabilitated Progress reports implemented • MOWRAM 20 associations for road ADB Review Mission completes O&M are formed reports improvement/ upgrade of main canal infrastructure

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Design Performance Data Sources/Reporting Assumptions Summary Targets/Indicators Mechanisms and Risks that will supply secondary 1.2. Irrigation canals 100 km of secondary PRDC monitoring reports systems to be established and 140 km tertiary upgraded irrigation canals are through the rehabilitated, supplying Project irrigation services to • MRD completes 9,600 ha upgrading of feeder roads FWUGs are managing National and provincial line connecting to O&M for rehabilitated agency records project improved systems with a roads minimum of 30% • Financial female representation services are on decision-making available in rural committees areas through existing 1.3. Access to rural Viable rural markets are commercial markets is established in banks and MFIs enhanced 10 selected communes • Public Financial Management TA Market O&M improves organizations are fiduciary functioning practices in MOWRAM, 2. Rural livelihood MAFF, and MRD options increased

2.1. Access to technical 30% of vocational Risk services is improved training course • O&M budgets participants utilize allocated to microfinance services provincial and provided through commune level commercial banks and are insufficient to licensed MFIs for maintain development of small infrastructure in enterprises operational condition 50% of households Vocational training records send representatives and project quarterly (with a minimum progress reports aggregate/overall participation of 30% female participation) to on-farm and/or off-farm training ( such as technology and postharvest management and processing, vocational training)

3. Project Project team at national implementation level, 3 provinces, and

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Design Performance Data Sources/Reporting Assumptions Summary Targets/Indicators Mechanisms and Risks effectively managed 40 communes are selected and trained

Quarterly and annual progress reports prepared on time

Project completed on PPMS and project time quarterly progress reports

Activities with Milestones Inputs 1. Improve rural infrastructure • ADB loan: 1.1. Facilitate commune participatory development planning (ongoing) $10.1 million 1.2. Coordinate work plan with relevant infrastructure institutions (ongoing – • ADB grant: annual cycle) $9.1 million 1.3. Develop detailed feasibility study for rural roads (for related communes) • Government: 1.4. Develop detailed feasibility study for irrigation systems (for related $2.90 million communes) • Beneficiaries: 1.5. Develop detailed feasibility study for rural markets (for related communes) $1.10 million 1.6. Implement construction of civil works (annual work plan) (in kind) 1.7. Monitor physical and financial progress of the construction/rehabilitation of relevant rural infrastructure (during construction) International 1.8. Establish institutions for O&M of selected infrastructure (ongoing) consulting services: 1.9. Implement O&M transfer strategy for the selected infrastructure subprojects 55 person-months (during construction phase) National consulting 2. Develop rural livelihood options services: 2.1. Access to technical services for income-generating activities 434 person-months 2.1.1. Train community level facilitator to form income-generating activity groups, and facilitate group and individual access to technical and Civil works: financial services (within 6 months) $14.69 million 2.1.2. Identify and provide training in on-farm activities (such as improved Training and aquaculture, crops, livestock techniques); and/or off-farm opportunities capacity building:= (such as technologies and postharvest processing, vocational training) to $0.28 million group members representing their households (annual work plan) Agricultural 2.1.3. Assist line agencies to provide training, technology demonstrations, site extension supplies: visits, and other mechanisms for improving on-farm and off-farm $1.88 million activities (annual work plan) Off-farm enterprises: 3. Ensure that project implementation is effective $0.86 million 3.1. Develop detailed work plan and implementation guidelines for the Project Equipment: (inception phase) $1.50 million 3.2. Recruit and/or train appropriate staff and/or institutions working at national, Incremental O&M 3 provinces, and 40 communes (within 6 months) costs: $1.57 million 3.3. Monitor physical and financial progress in according to the set time table Consulting services: (ongoing) $2.21 million 3.4. Prepare financial and physical progress reports on the Project (quarterly)

ADB = Asian Development Bank; FWUC = farmer water user committee; FWUG = farmer water user group; MAFF = Ministry of Agriculture, Forestry and Fisheries; MFI = microfinance institution; MOWRAM = Ministry of Water Resources and Meteorology; MRD = Ministry of Rural Development; O&M = operation and maintenance; PPMS = project performance management system; PRDC = provincial rural development committee; TA = technical assistance.

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National Capital Anlong Vil Rumlech Khnar Provincial Capital Totueng Kbal Trach City/Town Pursat Chong Doung Tnaot Chum Commune Center Kompong Tonle Sap Biosphere Reserve - Core Areas Preah Koki Khon Rang Boeng Selected Communes of TSLSP Melum National Road Dar Prek Kak Samraong Saen Other Road Sralau River Kompong Chhnang Transition Zone PURSAT Buffer Zone TSLSP Area Saeb Provincial Boundary o KOMPONG CHAM o 12 00'N International Boundary 12 00'N KOMPONG Kompong Cham Phuni Boundaries are not necessarily authoritative. CHHNANG N Ampil Tuek Tonle Bet Ampil Tuek

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PROJECT DESCRIPTION

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A. Introduction

1. This Project Administration Memorandum (PAM) was prepared by the Asian Development Bank (ADB) to assist the Government in the implementation of the Tonle Sap Lowlands Rural Development Project (the Project), for which ADB’s Board of Directors approved a Loan and Grant of SDR6.466 million and $9.90 million, respectively. This PAM is based on:

i. The loan agreement signed by the Government and ADB on 18 February 2008.

ii. The Report and Recommendation of the President to the Board of Directors on a proposed loan and grant to Cambodia for the Tonle Sap Lowlands Rural Development Project dated 14 November 2007.

iii. Relevant ADB guidelines

iv. Government of Cambodia Standard Operating Procedures and Manuals.

2. In case the provisions in this PAM differ from those of the above-mentioned documents, the provision in the Loan Agreement, relevant guidelines and the Report and Recommendation of the President will prevail over the PAM in their respective order.

B. Project Area and Location

3. The Project is designed to support 40 communes in the development and upgrading of rural infrastructure through a combination of community led and executed activities; and government agency implemented infrastructure development in the provinces of Kampong Chhang, Kampong Thom, and Pursat in the Tonle Sap basin (Component 1). It is intended to assist in the creation of new and improved livelihood opportunities in these communes (Component 2); and will strengthen the institutional capacity of commune, provincial, and national organizations (Component 3).

4. The Project will benefit people in the communes on the lowlands that lie outside the buffer zone surrounding the Tonle Sap Lake. Poverty rates in these communes average 38%, which is slightly higher than the national average of 36%. About 50% of villages in the selected communes have 40–60% of households living below the national poverty line, with peak levels about 80% of households in Kampong Chhnang.

C. Impact and Outcomes

5. The Project will improve livelihoods in three provinces in the Tonle Sap basin, as summarized in the project design and monitoring framework. Rural communities will use the improved coverage and quality of rural infrastructure (irrigation, roads, village level post-harvest facilities, and markets) and new opportunities resulting from the application of new skills in the pursuit of on-farm and off-farm enterprises to improve their livelihoods.

6. The Project will provide assistance to accelerate development in 40 selected communes in the Tonle Sap lowlands, which lie outside the buffer zone of the Tonle Sap biosphere reserve, to provide a stable base for improving rural incomes. This will reduce the need for people to migrate into the buffer zone during the dry season. Commune and subproject selection criteria and processes are in Appendix 1.

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D. Outputs

7. The Project components are as follows:

1. Improvement of Rural Infrastructure

a. Improvement and Development of Social Infrastructure Implementing Agency (IA): Commune Councils supported by Provincial Local Administration Units (PLAUs)

8. The Project will provide block grants in the form of the Commune Development Fund (CDF) to be used for the development, rehabilitation, or upgrading of small-scale infrastructure. Social infrastructure needs at commune and village level will be identified and prioritized through the decentralized planning process used to prepare commune investment plans (CIP), summarized in Appendix 2, and included in the Project’s annual work plan and budget.

9. Categories to be funded include civil works for: (i) village markets and other commercial support infrastructure; (ii) communal grain dryers; (iii) rural roads, including drainage, bridges, and culverts—linking villages within the commune or linking inter-commune roads;1 (iv) irrigation water conveyance and distribution facilities;2 (v) commune council buildings;3 (vi) village water supply and sanitation schemes;4 and (vii) classrooms at existing schools.5

Infrastructure developed under the CDF must be pro-poor and using technology that can be operated and maintained by the community with minimal external resource requirements. Beneficiaries of communal grain dryers and irrigation systems will contribute in cash or in kind to share a portion of the construction costs. The maximum cost of an individual activity funded through the CDF will be $20,000 with an average allocation of about $75,000 per commune, including the salary and overheads of commune council supporters, over the life of the Project.

1 Road sections that extend into the buffer zone of Tonle Sap within 1,000 meters will not be eligible for rehabilitation. 2 The Project will assist FWUGs in the design and layout of field channel reticulation but earthworks will be performed by volunteer labor. This will not require involuntary resettlement in principle. Land required for channels may be through voluntary donation, if necessary. All farmers giving up land for the channel must confirm the donation before construction/rehabilitation of the channel will commence. The Project will support construction of regulation and crossing structures identified in the CIP and funded through the CDF for improvement and development of social infrastructure. 3 Commune council buildings will be excluded where these are provided through the Commune Council Development Project (footnote 14). 4 Village water supply and sanitation schemes will only be accepted in communes not covered by the Tonle Sap Rural Water Supply and Sanitation Project. (footnote 16) 5 Proposals for school classrooms will only be accepted in communes not covered by the Education Sector Development Programs. ADB 2004 Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the Kingdom of Cambodia for the Second Education Sector Program. Manila. (Loan 2122 for $25 million approved on 9 December 2004).

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b. Improvement of Agricultural Water Management Infrastructure IA: Ministry of Water Resources and Meteorology (MOWRAM)

10. The Project will support: (i) rehabilitation of small water management subprojects (typically less than 200 ha)6 covering a total of about 9,600 ha, with fully developed water reticulation below main canals to the field level; and (ii) formation, strengthening, and capacity building of FWUGs and FWUCs for sustainable O&M.

11. Beneficiary farmers will participate in the design of irrigation improvement schemes identified in the commune investment plan; and will contribute7 to scheme development, mainly through voluntary labor for the earthworks for excavation of structure foundations, canals, and on-farm channels. The maximum cost of an individual water management scheme will be $100,000 at an estimated cost not to exceed $550/ha for secondary and tertiary canal infrastructure, including costs of surveys, design, resettlement, civil works, and mitigation of environmental impacts.

c. Improvement of Rural Roads IA: Ministry of Rural Development (MRD)

12. The Project will support subprojects to improve the connection of villages to commune centers and main highways. The Project will support: (i) rehabilitation of about 230 km of rural roads, according to Ministry of Rural Development (MRD) rural road standards including (a) rehabilitation, periodic routine maintenance and spot repairs; (b) provision of individual bridges and ford crossings; and (ii) organization and training of rural road maintenance committees, including provision of basic road maintenance tools.8

The maximum cost of an individual road subproject will be $100,000. Local communities will contribute labor for construction and maintenance.

2. Rural Livelihoods Improvement and Employment Options Enhancement IA: Ministry of Agriculture, Forestry and Fisheries (MAFF) and/or Ministry of Rural Development (MRD)

13. The Project will support development of new livelihood options for rural communities in project communes aimed at expanding on-farm and off-farm agricultural and nonagricultural income-generating activities. It will support:

(i) intensification of rain-fed and irrigated agriculture through (a) organization of farmer groups (for technology dissemination, mutual learning and support, and access to financial services); (b) development and implementation of technology

6 Larger schemes may be considered on a case-by-case basis. 7 Voluntary contribution of labor will be equivalent to one person day per beneficiary household; or a maximum of the equivalent of 15% of the scheme cost. Additional labor will be paid at the unskilled labor rate, agreed by the Provincial administration. 8 Road maintenance committees may be established in communes where the road is not subject to through traffic and the commune accepts responsibility for maintenance of the upgraded roads.

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improvement packages, establishment of demonstration farms,9 and training of farmers; and (c) facilitating farmer group access to existing rural financial institutions for farm credit; and (ii) development of off-farm livelihoods through (a) organization of solidarity groups for development of small-scale business enterprises, (b) identification of market opportunities and viable business activities, (c) training for development of technical skills and business management and record keeping, and (d) assistance in development of business plans and facilitating access to existing financial services.

14. The Project will use the agro-ecosystem analysis and associated technical implementation procedures approach of the national agricultural extension guidelines to identify, with the communes, the most applicable agricultural technology packages as the basis for agricultural investments. Village level technical services will be made available by implementation of programs targeted at increasing people’s income from on-farm and off-farm enterprises.

15. The Project will provide funds to strengthen technical and vocational training capacity at provincial and commune level, and increase accessibility to vocational training for employment and self-employment for socially disadvantaged groups. It will build on the existing framework and institutional capacity for provision of vocational training. It will support technical and vocational training provided at the provincial level through government departments such as the tsRural Economic Development Office, nongovernment organizations (NGOs), and private sector programs.

3. Project Management

16. The Project will support coordination and day-to-day management of the Project through (i) capacity strengthening at the executing agency (EA), implementing agency (IA), and commune council level with provision for a limited number of incremental technical staff at selected offices; (ii) consulting services (national and international); (iii) provision of office equipment and facilities; and (iv) provision of supervision vehicles (four-wheel drive vehicles, motorbikes, and bicycles).

The Project will support the recruitment and remuneration of two commune council supporters (Appendix 3), one female and one male, to be appointed by each commune council for a period of 48 months, a total of 3,840 person-months of support in the 40 selected communes. The remuneration for these service providers is provided through the block grants for the Commune Development Fund.

E. Special Features

17. An important feature of the Project will be alignment with the Strategic Framework for Decentralization and Deconcentration Reforms, which promotes major reforms of the current subnational governance system. The framework is a 5-year national program to establish institutional capacity at provincial level, establishing provincial/municipal and district councils, and channeling development spending and capacity building to all levels of the subnational

9 It is expected that the majority of Technology Improvement Package will be related to field and garden crops. However, support to aquaculture improvements may be provided if requested by the community groups.

5 governance system and phasing out of project implementation units.10 In line with the objectives of harmonization and the Government’s wish to empower communes to plan and implement subprojects in collaboration with provincial technical departments, the implementation structure of the Project will be fully consistent with the framework. Consulting services inputs will mainly be deployed in the selected provinces, and will work in line departments to support and develop existing offices. A minimum of incremental staff will be seconded to these departments during the project period to assist with the additional works involved.

18. The Project is consistent with the Government’s intention that a substantial amount of domestic resources and external aid be channeled directly to support newly empowered sub- national units of planning and budgeting. The CDF, managed by the commune councils, will finance component elements of the 5-year commune development plans (Appendix 2) that are prioritized in the commune investment plan annual planning cycle. The Project will also finance upgrading of irrigation (designed and implemented by MOWRAM/Provincial Department of Water Resources and Meteorology [PDWRAM]) and road infrastructure (designed and implemented by MRD/Provincial Department of Rural Development [PDRD]), identified in the annual district integration workshops and provincial investment plan.

19. The Project will support provincial implementation through provision of consulting services in each participating province to assist line agency staff to develop the capacity to implement new standard operating procedures as modified in agreement with ADB.11 The provincial support team will provide training and backstopping to the commune council supporters appointed by the commune councils in project communes, and assist the provincial local administration units to monitor and report the activities undertaken by the commune councils.

20. Access to rural financial services is necessary to enable adoption of new technologies and to establish small-scale rural enterprises. These services are potentially available through existing commercial banking and licensed MFIs in all project communes. The Project will support consulting services to: (i) strengthen the identification of new business opportunities; (ii) coordinate training, capacity development, and pilot demonstration activities; and (iii) facilitate access to financial services in the participating communes, provided by existing financial institutions. It will facilitate individuals and groups to access financial services at commune level by helping identify viable business opportunities, providing training, developing business plans, and making links between financial service providers and interested participants. The use of existing commercial and licensed service providers will provide an innovative solution to ensuring sustainable access to financial services in rural areas beyond the duration of the Project. The Project will assist financial service providers in providing basic financial management skills training as part of the Project’s capacity development program. To ensure the Project does not distort the credit market at commune level, financial service providers will make all loan decisions based on the providers’ assessment of the credit- worthiness of the applicant and the proposed investment.

10 Many project implementation units are of a semi-parallel nature, not fully integrated into government structures. For example, most report to the Government in some way, with some degree of government staff involvement in aspects of project implementation. 11 Ministry of Economy and Finance. 2005a. Financial Management Manual for Externally financed project/programs in Cambodia. Phnom Penh, September 2005. ——— 2005b. Procurement Manual for Externally financed project/programs in Cambodia (in two volumes), Phnom Penh September 2005. ——— 2005c. Standard Operating Procedures for Externally financed project/programs in Cambodia, Phnom Penh, August 2005.

Appendix 1 Page 1

COMMUNE AND SUBPROJECT SELECTION CRITERIA

A. Criteria for Selection of Communes

1. The Commune selection was done by sequential elimination of communes from the Province long list of communes using selection criteria summarized below. The traditional ranking approach was not adopted because a number of the criteria are not easily quantifiable (e.g. “critical mass”, – “village use of natural resources”). An initial list of 31 communes in six provinces was made during Project Preparation and revised to include 40 communes in the selected provinces (Kampong Chhnang, Kampong Thom, and Pursat) during Apprasial (Table A-1).

(a) The starting point for selection was the “long list” of 81 communes developed by the participants in a workshop with provincial administrations. The workshop participants proposed communes based on their knowledge plus information provided by the TA consultants from field inspections and analysis of available information on the Project area, including technical and economic considerations.

(b) Further selection criterion included – poverty index. In general, a poverty index >40% was required for selection of a commune, with higher values making a commune increasingly likely to be selected.

(c) Presence of ethnic minorities. A decision was taken that about 5-10% of selected communes might/should have a significant presence of ethnic minorities (Cham people, in practice). Hence, as poverty index was examined for each commune on the “long list”, information was provided by the ethnic minorities' specialist on this criterion. Significant presence of an ethnic minority would increase the likelihood of selection.

(d) In several cases, a choice had to be made from several communes that appeared to be equal in terms of other criteria. Here, the percentage of female- headed households was used, with communes having notably higher FHH% being selected. At the same time, the presence of complementary project interventions – was used, and could be used to give extra “weight” to a particular commune.

(e) At the end of the “first cut” for each province, districts in which only a single commune had been selected were re-examined, on the principle that having only a single commune in a district would introduce significant inefficiencies in project implementation. Alternatives were sought to such single communes, or a second commune in the same district was sought, using steps (3) to (5) above.

B. Subproject Selection Criteria

1. Component 1A - Social Infrastructure Subproject Selection Criteria

2. Village Markets. Are eligible for inclusion in project work plan provided (i) the markets are conveniently located on public lands, (ii) will not require any involuntary resettlement, and (iii) rents for the use of market space are sufficient to meet all O&M costs and a portion of the investment costs and such income is then used for future expansion and rehabilitation works.

Appendix 1 Page 2

3. Communal Grain Dryers. Are eligible for inclusion in project work plan provided (i) farmers have formed village-based groups to own and operate the dryers, (ii) the groups has a minimum of 15 households, and (iii) the group will contribute not less than 10% of the construction costs in cash and/or in-kind, excluding the cost of land which will be voluntarily provided by the Participating Commune.

4. Rural roads. Are eligible for inclusion in project work plan provided (i) the rehabilitation and improvement does not require any significant changes in road alignment, land acquisition or resettlement, (ii) local capacity within the Participating Commune is adequate to prepare the scheme and supervise the Works without substantive technical guidance and support from PDRD, (iii) the Participating Commune agrees to undertake routine maintenance of the road after its rehabilitation and improvement, and (iv) the road does not extend within 1,000 meters of the buffer zone of the Tonle Sap Biosphere Reserve. .

5. Commune Council Buildings. Are eligible for inclusion in project work plan provided the Participating Commune has not been the recipient of similar facilities under the ADB- assisted Community Council Development Program (CCDP) and CCDP 2. The Participating Commune must have unoccupied public land available for the building and must follow the standard design developed under CCDP.

6. Irrigation Infrastructure. Are eligible for inclusion in project work plan provided (i) each scheme will benefit a minimum of ten (10) households, with at least one-third of those households living below the poverty threshold, (ii) the benefiting households form an FWUG in order to qualify for participation in subproject planning, design, implementation and O&M, (iii) the benefiting households will contribute 15% of the construction cost in cash and/or in-kind; (iv) the rehabilitation will not require complex design or heavy construction equipment, (v) the Participating Communes, with technical support from PDWRAM, are able to design and supervise the Works, and (vi) qualified local contractors/community organizations are available to undertake the Works.

7. School Class Rooms. Are eligible for inclusion in project work plan provided (i) teachers are available for the additional classrooms, (ii) the Participating Commune has not received similar support during the previous five (5) years, and (iii) the classrooms will be built on public land that is not the subject of dispute.

8. Village Water Supply and Sanitation. The Subproject may support (a) the development and/or rehabilitation of dugwells, hand pumps, ponds, rainwater harvesting facilities for water supply, and (b) sanitation facilities such as rehabilitation or construction of individual household latrines, and construction of public latrines in schools and other public areas.

9. Other subprojects not identified above may be proposed under Component 1A and may be approved by ADB on a case-by-case basis.

2. Component 1B - Agricultural Water Management Subproject Selection Criteria

10. The total cost of an individual Subproject under Component 1B shall not exceed the equivalent of $100,000.

Appendix 1 Page 3

11. The Subproject may support: (a) rehabilitation of small water management subprojects, generally less than 200 hectares but with larger coverage on a case-by case basis with a total coverage of approximately 9,600 hectares, with fully developed channels to on-farm level, and (b) formation, strengthening and capacity building of FWUG and FWUC for participatory planning, design and implementation, and sustainable O&M, provided the proposed Subproject (i) has assured water availability for four out of five years for the dry season crop, (ii) must have medium potential soils acceptable to the Beneficiary’s soil series standards, (iii) the area can be certified cleared of unexploded ordnance clearance; (iv) has a unit development cost that does not exceed the equivalent of $550 per hectare; and (v) the benefiting households will contribute 15% of the construction cost in cash and/or in-kind.

3. Component 1C - Rural Roads Subproject Selection Criteria

12. The total cost of an individual Subproject under Component 1C shall not exceed the equivalent of $100,000.

13. The Subproject may support: (a) rehabilitation of approximately 230 kilometers of rural roads, according to MRD standards for rural roads; (b) provision of individual bridges and ford crossings; and (c) organization and training of the Participating Commune’s Road Maintenance Committee, provided the proposed road section Subproject (i) connects villages to commune centers and to main highways, (ii) there is an adequate right of way to conform with Type B road specifications, and (iii) the road does not extend within 1,000 meters of the buffer zone of the Tonle Sap Biosphere Reserve. The shortlist of communes selected during project preparation is presented in Table A.2. However the communes selected may be changed during project implementation to avoid unnecessary overlap with other development initiatives12 or if no suitable subproject can be identified with the community.

14. Eligible subprojects will be funded only if included in the Project Annual Work Plan and Budget (PAWPB) approved by the Project Steering Committee and with ADB concurrence on a no-objection basis within 30 days of the PAWPB being submitted to ADB.

12 Tonle Sap Sustainable Livelihoods Project is changing its procedures for management of the Commune Livelihood Fund which may result in overlap of operational areas with the TSLRDP. If this occurs then TSLRDP will drop the selected commune and seek a replacement in consultation with the Provincial authorities

Appendix 1 Page 4

Table A.1: Summary of Commune and Subproject Selection Criteria

Item Criteria Description

a) Poverty index Poverty index >40% was the primary criterion used; communes with <40% poverty could be selected on the basis of other criteria. b) Distance from Tonle Sap and effect of In general, communes were required to have significant use of village use on natural resources natural resources, i.e. as a screening criterion. c) Local Administration Recommendations from the workshop task forces were used to recommendations refine selections for harmonization with Provincial planning. d) Female-headed households Percentage of FHH was used to select between communes that otherwise were closely ranked on other criteria. e) Presence of indigenous peoples Additional weight given to commune with indigenous communities present f) "Critical Mass" - >2 communes/district This criterion was used to screen out communes that would have been the only one in a given district. j) Synergy with other projects Communes have been excluded where they overlap with Tonle Sap Sustainable Livelihoods Project communes – due to similarity of some interventions.

Appendix 1 Page 5

Table A.2: Selected Communes Poverty Rate Core Revised District Commune >40% sample Short List PURSAT PROVINCE

Bakan Boeng Khnar 47% X Khnar Totueng 41% X Rumlech 60% X X Svay Doun Kaev 53% X Ta Lou 59% X Trapeang Chong 36% X Krakor Boeng Kantuot 25% X Chheu Tom 61% X Tnaot Chum 33% X Kandieng Anlong Vil 50% X Kandieng 41% X Svay Luong 55% X Sya 37% X Total 13 KAMPONG THOM PROVINCE

Baray Boeng 51% X Chong Doung 50% X Pongro 54% X Sralau 51% X Kampong Svay Chey 65% X Damrei Slab 94% X Kampong Kou 71% X San Kor 76% X X Tbaeng 63% X Trapeang Ruessei 62% X Stoung Pralay 65% X X Rung Roeang 64% X Samprouch 80% X Total 13

Appendix 1 Page 6

Poverty Rate Core Revised District Commune >40% sample Short List KAMPONG CHHNANG PROVINCE

Baribour Anhchanh Rung 41% X Khon Rang 41% X Kampong Preah Kokir 81% X Melum 47% X Kampong Leang Dar 68% X Kampong hau 59% X Pou 43% X Samraong Saen 68% X Trangel 59% X Kampong Tralach Ampil Tuek 69% X X Chhuk Sa 63% X Kampong Tralach 38% X Peani 43% X Thma Edth 69% X Total 14

Notes: Sample subproject Srae Dok in Pursat Province has been dropped due to overlap with revised implementation plan of Tonle Sap Sustainable Livelihoods Project.

Appendix 2 Page 1

PROVINCE AND COMMUNE DEVELOPMENT AND INVESTMENT PLANNING CYCLES

1. The Commune Development Plan is a five year plan, developed in five steps (Figure B1), which is co-terminus with the term of office of the Commune Council. The Tonle Sap Lowlands Rural Development Project will assist in the development and updating of the Commune Development Plan in participating communes through the services of Commune Council Assistants.

Figure B-1 Planning Cycle and monitoring cycle – 5 year Commune Development Plan.

Step 1: Output: Priority Drafting Commune list of activities Development Plan

Step 2: Commune Council Step 5: consults with village Commune Council communities based on monitor implementation of priority list from Step 1 5 year CDP.

Step 4: Step 3: Commune Council and Planning and Budget Output: Agreed Governor review and committee draft Commune Activity priority list ultimately approve CDP Development Plan (CDP)

Output: Output: Approved CDP Draft CDP

Appendix 2 Page 2

2. The Commune Investment Plan is developed through 5 steps (Figure B-2) and translates the fiver year Commune Development Plan into an annual work plan and budget using the resources from the Commune/Sangkat funds and other externally funded sources, managed by the Commune Councils; and additional resources managed by national and provincial line departments, NGOs and private sector investors.

Figure B-2 Annual Planning Cycle – Commune Investment Plan.

Step 1: Output: Needs, Drafting Commune Issues and Issues and Resources summary Requirements by commune Council and Village Leaders

Step 2: Step 5: Commune Priority list with Commune Council outline costing – monitor implementation of Community Priority Annual Work Plan Activities (CPA)

Step 3: District Integration Output: Commune Workshop – Step 4: Priority Activities Commune selects Commune projects to be funded Development from C/S fund Committee drafts Line departments commit Commune Investment to confirmed funded Plan (CIP) projects for inclusion in Provincial Investment Plan (PIP)

Output: Commune Investment Plan Input: Line Departments report investment Output: plans Signed Temporary Input: Agreement on PIP work NGOs and plan Private sector report investment plans

Appendix 2 Page 3

3. Tonle Sap Lowlands Rural Development Project will support the development and implementation of Commune Investment Plans (CIP) in participating communes by: (i) supporting the services of Commune Council Assistants (CCAs) to facilitate identification of the communities priority activities; (ii) assisting the commune council to develop project proposals and estimated project costs for submission to the District Integration Workshops; and (iii) assisting the Commune Development Committee draft the Commune Investment Plan. The CCAs will act as bridges between the commune planning and development activities and the support available through the project for social infrastructure; and also through line department activities financed by the project. These various activities enter into the Provincial Investment Plan (Figure B-3) through the annual District Integration Workshop (step 3 in Figure B-2).

4. The Annual Planning and Implementation cycle is summarized in Table B-1.

Stage Activity Approximate Responsible Agencies Timing 1 Prepare and Approve Provincial Development Plan Jan-Aug PDoP, PRDC (PDP) and Provincial Development and Investment Plan (PDIP) 2 Provincial Allocation of Provincial Investment Fund Sept EXcom, LD 3 District Integration Workshop Oct EXCom, LD, NGO, CC 4 Finalizing and Approval of PDP and PDIP Oct PRDC, EXcom, PDoP, NCDD, MoP 5 Preparation of Provincial Annual Work plan and Nov EXcom Budget (PAWPB) 6 Preparation and approval of PRDC-NCDD contract Dec EXcom/CAU, NCDD 7 Preparation and approval of PRDC-LD contracts Jan EXcom/CAU, LDs 8 Contract implementation Jan-Dec LD 9 M&E of contract implementation Jan-Dec LD, EXcom 10 Mid-term and Completion reports and contract As completed LD, MEU evaluation 11 End of contract report Within 2 months LDs, EXcom, NCDD of completion of works 12 PRDC annual report Jan-Feb Excom, NCDD Notes: EXcom = Executive Committee of Provincial Rural Development Committee, CAU – Contract Administration Unit; LD = line departments, NCDD = national Committee for Decentralization and Deconcentration; MEU – Monitoring and Evaluation Unit, PDoP = Provincial Department of Planning; MoP = Ministry of Planning; NGO = Non Governmental Organizations

Appendix 2 Page 4

Figure B-3 Annual Planning Cycle – Province Investment Plan

NCDD

Provincial Investment Fund PRDC/EXcom allocation from National Treasury

Governor informs line Output: departments of PIF District Priority Action allocation Matrix (DPAM)

Department of Planning Departments integrate $resources from PIF, Line department resources and other funds to develop work plan

Output: Input: Commune Signed Temporary Priority Activities from Agreement on PIP Step 2 of CIP work plan development

Input: Line Departments report investment Step 3 (CIP) District Commune Council plans Integration Workshop – Commune selects projects to be funded from C/S fund Input: Line departments commit NGOs and to confirmed funded Private sector projects for inclusion in report investment Provincial Investment plans Plan (PIP)

Appendix 3 Page 1

SELECTION CRITERIA AND TERMS OF REFERENCE FOR COMMUNE COUNCIL SUPPORTERS

Commune Council Assistants (80 CCA recruited by commune council, 3,168 person-months in total)

Commune Council Assistants will live and work close by to the communities they assist. It is likely they will have educational backgrounds ranging from elementary school up to high school with very few possessing any form of tertiary or specialized training. Familiarity with the particular circumstances of the Tonle Sap and willingness to travel by motorcycle and work at the village level are the major requirements. Tonle Sap Lowland Rural Development Project will provide training and guidance to newly appointed Assistants to provide them appropriate skills.

Background, experience and characteristics of candidates for Commune Council Assistant:

• Should be relatively young and enthusiastic – usually 25 to 35 years; • Candidates must be accepted by the commune council before they will be appointed. • Residing close enough to the commune council to provide regular presence and assistants – residence in the commune preferred; • Men and women bring different abilities and skills, thus Commune Facilitator numbers will be equally divided between males and females; • Must be functionally literate, able to write a short report, take notes and summarize meetings, and will be able to practice arithmetical skills appropriate to basic bookkeeping and accounts management. • Will be acceptable within the commune, and without police record or history of open conflict with commune members; • Open to learning new methods from training programs, lessons from their experience as a Commune Facilitator, and from members of the community engaged in village organizations. • Open to working with people from all backgrounds (different ethnic groups, genders, and the disabled etc); • Willing and able to encourage community dialogue to analyze situations and resolve conflicts; • Desire to develop communities and support development initiatives that are widely beneficial; • Will not be a government worker, or professional member of a political party.

Commune Council Assistants will perform the following tasks:

• Provide facilitation support to the commune councils and Commune Planning and Budgeting Committees in community driven decentralized, planning, implementation procedures, and monitoring and evaluation of commune development activities. • Assist commune council accountants in record keeping and procedural requirements for administration of decentralized financial management. • Provide assistance to commune councils on integrating gender, natural resource and environment management procedures into commune development plans and assist in monitoring implementation. • Help commune councils link to line agencies, national and international programs, local associations, NGOs, and the private sector.

Appendix 3 Page 2

• Assist the commune councils in gaining procedural transparency and disseminating information to citizens. • Provide participatory planning assistance to village committees and community groups to identify and prepare activities suitable for funding under the Project funds for submission to the Planning and Budgeting Committee. • Assist community groups and the commune councils in contracting for technical, training, design, construction and other services from NGOs, government agencies, or private operators. • Report monthly to Project on progress and issues requiring resolution.

Training: Appointees will receive training in:

• Skills and awareness for supporting community driven development • Participatory analysis of livelihood needs; • Community mobilization techniques; • Project management and implementation; • Accounts, budgeting and reporting; • Performance evaluation.

COST ESTIMATES AND FINANCING PLAN

6

A. Cost Estimates

21. The total project cost is estimated at $24.00 million, including taxes and duties of $1.2 million. About $13.54 million is allocated to rural infrastructure, $2.40 million to rural livelihood development, and $4.91 million to project management. Project costs are summarized in Table 1. More detailed costs are shown in Appendix 4

Table 1: Summary of Project Investment Plan ($ million)

Item Amounta A. Base Costb 1. Development of Rural Infrastructure 13.54 2. Developing Options for Rural Livelihoods 2.40 3. Project Implementation and Incremental Operation Costs 4.91 Subtotal (A) 20.85 B. Contingenciesc 1. Physical 0.63 2. Price 2.15 Subtotal (A + B) 23.63 C. Financial Charges During Implementationd 0.37 Total (A + B + C) 24.00 a Including taxes and duties of $1.28 million. b In mid-2007 prices. c Physical contingencies are computed at 10% for civil works, equipment, vehicles, and training; 6% for other expenditure. Price contingencies are computed as 3.8% in 2009, 4.2% in 2009, and 5% thereafter on local costs and 0.8% on foreign costs. d Includes interest during implementation at 1% per annum. Source: Asian Development Bank estimates.

B. Financing Plan

22. ADB will provide a loan of $10.1 million equivalent in SDR from its Special Funds resources. The loan will have a term of 32 years, including a grace period of 8 years, with an interest charge of 1% per year during the grace period and 1.5% per year during the remaining term.

23. ADB will provide $9.9 million in grant funds from the ADF to finance (i) social infrastructure, (ii) development of new options for rural livelihoods, (iii) implementation consultants, (iv) the project management office (PMO), and (v) incremental operational costs for the project IAs’ provincial level organizations.

24. The balance of the project cost ($3.0 million equivalent or 12.5% of total project cost) will be funded by the Government’s incremental staff salaries, taxes and duties from their own budgets, and the project beneficiaries will contribute about 1.0 million (4.5% of project cost) in the form of in-kind labor and local materials. The financing plan is in Table 2.

7

Table 2: Financing Plan ($ million) Source Total % Asian Development Bank Loan 10.10 42.0 Asian Development Bank Grant 9.90 41.0 Government 3.00 12.5 Beneficiaries 1.00 4.5 Total 24.00 100.0 Source: Asian Development Bank estimates.

C. Allocation of Loan and Grant Proceeds

25. Table 3 and 4 sets forth the categories of goods, works, services and other items to be financed out of the proceeds of the loan/grant and the allocation of amounts of the loan/grant to each such category. Except as ADB may otherwise agree, the items of the Categories listed in the tables shall be financed out of the proceeds of the loan and grant on the basis of the percentages set forth in the table.

26. Reallocation. Notwithstanding the allocation of loan/grant proceeds and the withdrawal percentages set forth in the table,

(a) if the amount of the loan/grant allocated to any category appears to be insufficient to finance all agreed expenditures in that category, ADB may, by notice to the beneficiary, (i) reallocate to such category, to the extent required to meet the estimated shortfall, amounts of the loan/grant which have been allocated to another category but, in the opinion of ADB, are not needed to meet other expenditures, and (ii) if such reallocation cannot fully meet the estimated shortfall, reduce the withdrawal percentage applicable to such expenditures in order that further withdrawals under such category may continue until all expenditures thereunder shall have been made; and

(b) if the amount of the loan/grant then allocated to any category appears to exceed all agreed expenditures in that category, ADB may, by notice to the beneficiary, reallocate such excess amount to any other category.

Table 3: Allocation and Withdrawal of Loan Proceeds Category ADB Financing Amount Allocated Percentage and Basis for SDR Withdrawal from the Loan Number Item Category Account

1 Civil Works 5,762,000 90 percent of total expenditure

2 Interest During Implementation 237,000 100 percent of amounts due

3 Unallocated 467,000

Total 6,466,000

8

Table 4: Allocation and Withdrawal of Grant Proceeds Category ADB Financing Percentage and Basis for Withdrawal from the Number Item Category Subcategory Grant Account 97 percent of total 1 Commune Development Fund – Block Grants 2,600,000 expenditure

2 Vehicles and Equipment 535,000 100 percent of total 2A Vehicles and Equipment - Imported 320,000 expenditure * 90 percent of total 2B Vehicles and Equipment - local 215,000 expenditure 90 percent of total 3 Agricultural Extension and Development Support 1,616,000 expenditure 90 percent of total 4 Off-Farm Enterprise Support 925,000 expenditure 90 percent of total 5 Training 225,000 expenditure 100 percent of total 6 Consulting Services 2,016,000 expenditure * 90 percent of total 7 External Audits, Baseline and Impact Studies 593,000 expenditure 90 percent of total 8 Incremental Administrative Costs 819,000 expenditure

9 Unallocated 571,000

Total 9,900,000 * Exclusive of taxes and duties imposed within the territory of the Beneficiary.

27. Condition of Withdrawals from Loan Account. Notwithstanding any other provision of this Financing Agreement, the Beneficiary shall ensure that no disbursement of Loan proceeds if made:

(i) to a participating province if a misprocurement has occurred or other procurement action by the specified participating province has been identified as irregular until such misprocurement or other irregularity has been corrected by the concerned participating province to the satisfaction of the beneficiary and ADB; or

(ii) to an IA if a misprocurement has occurred or other procurement action in the specified IA has been identified as irregular until such misprocurement or other irregularity has been corrected by the concerned IA to the satisfaction of the beneficiary and ADB.

28. Condition of Withdrawals from Grant Account. Subsequent to the initial release by MOWRAM of $1,000 to a CDF account for the CCS salary and other overhead costs, and notwithstanding any other provision of the Financing Agreement, the Beneficiary shall ensure that no disbursement of Grant proceeds is made:

(i) to a participating commune until a CDF-funded subproject has been included in the PAWPB, and the actions described in paras. 9 and 10 of Schedule 5 of the Financing Agreement have been completed; or

9

(ii) to a participating commune if a misprocurement has occurred or other procurement action in the specified participating commune has been identified as irregular until such misprocurement or other irregularity has been corrected by the concerned participating commune to the satisfaction of the beneficiary and ADB; or

(iii) to a participating province if a misprocurement has occurred or other procurement action by the specified participating province has been identified as irregular until such misprocurement or other irregularity has been corrected by the concerned participating province to the satisfaction of the beneficiary and ADB; or

(iv) to an IA if a misprocurement has occurred or other procurement action in the specified IA has been identified as irregular until such misprocurement or other irregularity has been corrected by the concerned IA to the satisfaction of the beneficiary and ADB.

SUMMARY COST ESTIMATES Expenditure Accounts Project Cost Summary Tonle Sap Lowlands Rural Revelopment Project %% Total Expenditure Accounts Project Cost Summary Riel Million $ '000 Foreign Base Local Foreign Total Local Foreign Total Exchange Costs A. Investment Costs 1. Civil Works a. Social Infrasturture Small-scale Rural Infrastructure 8,400.0 2,800.0 11,200.0 2,100.0 700.0 2,800.0 25 13 Commune Council Assistant Support 800.0 - 800.0 200.0 - 200.0 - 1 Subtotal (A1a) 9,200.0 2,800.0 12,000.0 2,300.0 700.0 3,000.0 23 14 b. Agriculture Water Management Infrastructure 15,724.8 5,241.6 20,966.4 3,931.2 1,310.4 5,241.6 25 25 c. Rural Roads 13,398.0 4,466.0 17,864.0 3,349.5 1,116.5 4,466.0 25 21 d. Land Acquisition and Ressettlement 400.0 - 400.0 100.0 - 100.0 -- Subtotal (A1) 38,722.8 12,507.6 51,230.4 9,680.7 3,126.9 12,807.6 24 61 2. Vehicles and Equipment a. Vehicles 144.0 1,296.0 1,440.0 36.0 324.0 360.0 90 2 b. Equipment 93.8 843.8 937.6 23.4 211.0 234.4 90 1 Subtotal (A2) 237.8 2,139.8 2,377.6 59.4 535.0 594.4 90 3 3. Agricultural Extension and Development Support 6,627.2 - 6,627.2 1,656.8 - 1,656.8 - 8 4. Off-farm Enterprise Support 2,976.0 - 2,976.0 744.0 - 744.0 - 4 5. Training a. For Infrastructure Management 600.0 - 600.0 150.0 - 150.0 - 1 b. For Project Management 400.0 - 400.0 100.0 - 100.0 -- Subtotal (A5) 1,000.0 - 1,000.0 250.0 - 250.0 - 1 6. Consulting Services a. International Consultants - 4,400.0 4,400.0 - 1,100.0 1,100.0 100 5 b. National Consultants 3,654.0 - 3,654.0 913.5 - 913.5 - 4 Subtotal (A6) 3,654.0 4,400.0 8,054.0 913.5 1,100.0 2,013.5 55 10 7. External Audit, Baseline and Impact Studies 1,318.0 1,318.0 2,636.0 329.5 329.5 659.0 50 3 8. Recurrent Costs a. Operation and Maintenance Operation and Maintenance of infrastructure 2,320.6 - 2,320.6 580.2 - 580.2 - 3 Office Operating Costs for Project Implementation 2,340.0 780.0 3,120.0 585.0 195.0 780.0 25 4 Subtotal (A8a) 4,660.6 780.0 5,440.6 1,165.2 195.0 1,360.2 14 7 b. Incremental Staff Remuneration 3,058.6 - 3,058.6 764.6 - 764.6 - 4 Subtotal (A8) 7,719.2 780.0 8,499.2 1,929.8 195.0 2,124.8 9 10 Total Baseline Costs 62,254.9 21,145.4 83,400.4 15,563.7 5,286.4 20,850.1 25 100 Physical Contingencies 1,826.9 682.2 2,509.2 456.7 170.6 627.3 27 3 Price Contingencies 8,138.9 450.4 8,589.3 2,034.7 112.6 2,147.3 5 10 Total Project Costs 72,220.8 22,278.1 94,498.9 18,055.2 5,569.5 23,624.7 24 113

Interest During Implementation - 1,469.6 1,469.6 - 367.4 367.4 100 2 Appendix 4 Total Costs to be Financed 72,220.8 23,747.7 95,968.5 18,055.2 5,936.9 23,992.1 25 115 Pa

Source: ADB estimates g e 1

Expenditure Accounts by Financiers ($'000) Expenditure Accounts by Financiers Asian Development Asian Development Commune Local ($ '000) The Government Bank - Loan Bank - Grant Beneficaries Total Foreign (Excl. Duties and Amount % Amount % Amount % Amount % Amount % Exchange. Taxes) Taxes A. Investment Costs 1. Civil Works a. Social Infrasturture Small-Scale Rural Infrastructure 319.8 10.0 - - 2,726.5 85.3 151.5 4.7 3,197.8 13.3 741.0 2,137.0 319.8 Commune Council Assistant Support -- - - 210.6 100.0 - - 210.6 0.9 - 210.6 - Subtotal (A1a) 319.8 9.4 - - 2,937.2 86.2 151.5 4.4 3,408.4 14.2 741.0 2,347.6 319.8 b. Agriculture Water Management Infrastructure 596.6 10.0 5,071.0 85.0 - - 298.3 5.0 5,965.9 24.9 1,386.0 3,983.3 596.6 c. Rural Roads 511.0 10.0 4,599.0 90.0 -- - - 5,110.0 21.3 1,182.3 3,416.7 511.0 d. Land Acquisition and Ressettlement 115.0 100.0 ------115.0 0.5 - 103.5 11.5 Subtotal (A1) 1,542.4 10.6 9,670.0 66.2 2,937.2 20.1 449.8 3.1 14,599.3 60.9 3,309.3 9,851.2 1,438.9 2. Vehicles and Equipment a. Vehicles 37.4 10.0 - - 336.2 90.0 - - 373.5 1.6 336.2 - 37.4 b. Equipment 24.3 10.0 - - 218.9 90.0 - - 243.2 1.0 218.9 - 24.3 Subtotal (A2) 61.7 10.0 - - 555.1 90.0 - - 616.8 2.6 555.1 - 61.7 3. Agricultural Extension and Development Support 186.9 10.0 - - 1,682.3 90.0 - - 1,869.2 7.8 - 1,682.3 186.9 4. Off-farm Enterprise Support 85.5 10.0 - - 769.4 90.0 - - 854.8 3.6 - 769.4 85.5 5. Training a. For Infrastructure Management 17.2 10.0 - - 154.8 90.0 - - 172.0 0.7 - 154.8 17.2 b. For Project Management 11.2 10.0 - - 100.9 90.0 - - 112.1 0.5 - 100.9 11.2 Subtotal (A5) 28.4 10.0 - - 255.6 90.0 - - 284.0 1.2 - 255.6 28.4 6. Consulting Services a. International Consultants -- - - 1,153.8 100.0 - - 1,153.8 4.8 1,153.8 - - b. National Consultants -- - - 1,049.4 100.0 - - 1,049.4 4.4 - 1,049.4 - Subtotal (A6) -- - - 2,203.2 100.0 - - 2,203.2 9.2 1,153.8 1,049.4 - 7. External Audit, Baseline and Impact Studies 75.2 10.0 - - 677.0 90.0 - - 752.2 3.1 351.6 325.4 75.2 8. Recurrent Costs a. Operation and Maintenance Operation and Maintenance of infrastructure 71.0 10.0 -- - - 638.6 90.0 709.6 3.0 - 638.6 71.0 Office Operating Costs for Project Implementation 86.4 10.0 - - 777.6 90.0 - - 864.0 3.6 199.7 577.8 86.4 Subtotal (A8a) 157.4 10.0 - - 777.6 49.4 638.6 40.6 1,573.6 6.6 199.7 1,216.5 157.4 b. Incremental Staff Remuneration 871.5 100.0 ------871.5 3.6 - 784.3 87.1 Subtotal (A8) 1,028.8 42.1 - - 777.6 31.8 638.6 26.1 2,445.1 10.2 199.7 2,000.8 244.5 Total Project Costs 3,008.9 12.7 9,670.0 40.9 9,857.4 41.7 1,088.4 4.6 23,624.7 98.5 5,569.5 15,934.1 2,121.1 Interest During Implementation - - 367.4 100.0 - - - - 367.4 1.5 - - - Total Disbursement 3,008.9 12.5 10,037.4 41.8 9,857.4 41.1 1,088.4 4.5 23,992.1 100.0 5,569.5 15,934.1 2,121.1

Source: ADB estimates

Appendix 4

Pa

g e 2

Table 1: Component Costs by Financiers (US$ '000)

Tonle Sap Lowlands Rural Revelopment Project Components by Financiers Asian Development Asian Development Commune Local (US$ '000) The Government Bank - Loan Bank - Grant Beneficaries Total (Excl. Duties & Amount % Amount % Amount % Amount % Amount % For. Exch. Taxes) Taxes 1. Development of Rural Infrastructure 1,631.1 10.5 9,673.8 62.5 3,084.7 19.9 1,097.0 7.1 15,486.6 64.5 3,310.6 10,648.5 1,527.6 2. Developing Options for Rural Livelihoods 272.5 10.0 - - 2,452.6 90.0 - - 2,725.1 11.4 - 2,452.6 272.5 3. Project Implementation Support 1,106.0 20.4 - - 4,315.1 79.6 - - 5,421.1 22.6 2,261.0 2,838.4 321.7 Total PROJECT COSTS 3,009.7 12.7 9,673.8 40.9 9,852.4 41.7 1,097.0 4.6 23,632.9 98.5 5,571.6 15,939.5 2,121.8 Interest During Implementation - - 367.5 100.0 -- - - 367.5 1.5 - - - Total Disbursement 3,009.7 12.5 10,041.3 41.8 9,852.4 41.1 1,097.0 4.6 24,000.5 100.0 5,571.6 15,939.5 2,121.8

Table 2: Financing of Investment/Recurrent Costs and Financial Charges by Year (US$ '000)

(US$ '000) Financing 2008 2009 2010 2011 2012 2013 2014 Total I. Investment Costs The Government 319.1 598.1 600.3 617.6 599.4 230.2 44.9 3,009.7 Asian Development Bank - Loan 194.8 2,242.2 2,284.9 2,370.7 2,460.4 120.8 - 9,673.8 Asian Development Bank - Grant 2,029.4 2,317.4 1,838.2 1,700.8 1,226.3 430.8 309.6 9,852.4 Commune Beneficaries 15.3 139.1 174.6 213.5 255.9 145.8 152.8 1,097.0 Total Investment Costs 2,558.6 5,296.8 4,898.0 4,902.6 4,541.9 927.7 507.3 23,632.9 II. Recurrent Costs III. Financial Charges Asian Development Bank - Loan 0.5 7.6 30.2 53.6 78.2 97.8 99.7 367.5 Total Financial Charges 0.5 7.6 30.2 53.6 78.2 97.8 99.7 367.5 Total Financing of Costs 2,559.1 5,304.4 4,928.2 4,956.3 4,620.1 1,025.5 606.9 24,000.5

Appendix 4 Pa g e 3

Table 3: Project Components by Year -- Totals Including Contingencies (US$'000)

(US$ '000) Totals Including Contingencies 2008 2009 2010 2011 2012 2013 2014 Total py pp 1. Development of Rural Infrastructure 465.2 3,437.9 3,553.4 3,723.6 3,840.5 296.3 169.8 15,486.6 2. Developing Options for Rural Livelihoods 605.4 741.0 575.6 491.8 115.0 110.7 85.6 2,725.1 3. Project Implementation Support 1,488.0 1,117.9 769.0 687.3 586.5 520.7 251.9 5,421.1 Total PROJECT COSTS 2,558.6 5,296.8 4,898.0 4,902.6 4,541.9 927.7 507.3 23,632.9

pp

Table 4: Components Project Cost Summary (US$ '000)

Tonle Sap Lowlands Rural Revelopment Project %% Total Components Project Cost Summary (Riel Million) (US$ '000) Foreign Base Local Foreign Total Local Foreign Total Exchange Costs 1. Development of Rural Infrastructure 41,643.4 12,507.6 54,151.0 10,410.9 3,126.9 13,537.8 23 65 2. Developing Options for Rural Livelihoods 9,603.2 - 9,603.2 2,400.8 - 2,400.8 - 12 3. Project Implementation Support 11,008.3 8,637.8 19,646.2 2,752.1 2,159.5 4,911.5 44 24 Total BASELINE COSTS 62,254.9 21,145.4 83,400.4 15,563.7 5,286.4 20,850.1 25 100 Physical Contingencies 1,848.8 690.4 2,539.2 462.2 172.6 634.8 27 3 Price Contingencies 8,141.5 450.6 8,592.1 2,035.4 112.7 2,148.0 5 10 Total PROJECT COSTS 72,245.2 22,286.4 94,531.7 18,061.3 5,571.6 23,632.9 24 113 Interest During Implementation - 1,470.1 1,470.1 - 367.5 367.5 100 2 Total Costs to be Financed 72,245.2 23,756.6 96,001.8 18,061.3 5,939.1 24,000.5 25 115 Appendix 4 Pa g e4

Table 5: Expenditure Accounts Project Cost Summary (US$ '000)

Tonle Sap Lowlands Rural Revelopment Project %% Total Expenditure Accounts Project Cost Summary (Riel Million) (US$ '000) Foreign Base Local Foreign Total Local Foreign Total Exchange Costs I. Investment Costs A. Civil Works 1. Social Infrasturture Small-scale Rural Infrastructure 8,400.0 2,800.0 11,200.0 2,100.0 700.0 2,800.0 25 13 Commune Council Assistant Support 800.0 - 800.0 200.0 - 200.0 - 1 Subtotal Social Infrasturture 9,200.0 2,800.0 12,000.0 2,300.0 700.0 3,000.0 23 14 2. Agriculture Water Management Infrastructure 15,724.8 5,241.6 20,966.4 3,931.2 1,310.4 5,241.6 25 25 3. Rural Roads 13,398.0 4,466.0 17,864.0 3,349.5 1,116.5 4,466.0 25 21 4. Land Acquisition and Ressettlement 400.0 - 400.0 100.0 - 100.0 -- Subtotal Civil Works 38,722.8 12,507.6 51,230.4 9,680.7 3,126.9 12,807.6 24 61 B. Vehicles and Equipment Vehicles 200.0 1,800.0 2,000.0 50.0 450.0 500.0 90 2 Equipment 37.8 339.8 377.6 9.4 85.0 94.4 90 - Subtotal Vehicles and Equipment 237.8 2,139.8 2,377.6 59.4 535.0 594.4 90 3 C. Agricultural Extension and Development Support 6,627.2 - 6,627.2 1,656.8 - 1,656.8 - 8 D. Off-farm Enterprise Support 2,976.0 - 2,976.0 744.0 - 744.0 - 4 E. Training For Infrastructure Management 600.0 - 600.0 150.0 - 150.0 - 1 For Project Management 400.0 - 400.0 100.0 - 100.0 -- Subtotal Training 1,000.0 - 1,000.0 250.0 - 250.0 - 1 F. Consulting Services International Consultants - 4,400.0 4,400.0 - 1,100.0 1,100.0 100 5 Domestic Consultants 3,654.0 - 3,654.0 913.5 - 913.5 - 4 Subtotal Consulting Services 3,654.0 4,400.0 8,054.0 913.5 1,100.0 2,013.5 55 10 G. External Audit, Baseline and Impact Studies 1,318.0 1,318.0 2,636.0 329.5 329.5 659.0 50 3 H. Recurrent Costs 1. Operation and Maintenance (O&M) O&M of Infrastructure 2,320.6 - 2,320.6 580.2 - 580.2 - 3 Office Operating Costs for Project Implementation 2,340.0 780.0 3,120.0 585.0 195.0 780.0 25 4 Subtotal Operation and Maintenance (O&M) 4,660.6 780.0 5,440.6 1,165.2 195.0 1,360.2 14 7 2. Incremental Staff Remuneration 3,058.6 - 3,058.6 764.6 - 764.6 - 4 Subtotal Recurrent Costs 7,719.2 780.0 8,499.2 1,929.8 195.0 2,124.8 9 10 Total BASELINE COSTS 62,254.9 21,145.4 83,400.4 15,563.7 5,286.4 20,850.1 25 100 Physical Contingencies 1,848.8 690.4 2,539.2 462.2 172.6 634.8 27 3 Price Contingencies 8,141.5 450.6 8,592.1 2,035.4 112.7 2,148.0 5 10 Total PROJECT COSTS 72,245.2 22,286.4 94,531.7 18,061.3 5,571.6 23,632.9 24 113

Interest During Implementation - 1,470.1 1,470.1 - 367.5 367.5 100 2 Appendix 4 Total Costs to be Financed 72,245.2 23,756.6 96,001.8 18,061.3 5,939.1 24,000.5 25 115 Pa g e5

Table 6: Expenditure Accounts by Financiers (US$ '000)

Expenditure Accounts by Financiers Asian Development Asian Development Commune Local (US$ '000) The Government Bank - Loan Bank - Grant Beneficaries Total (Excl. Duties & Amount % Amount % Amount % Amount % Amount % For. Exch. Taxes) Taxes I. Investment Costs A. Civil Works 1. Social Infrasturture Small-scale Rural Infrastructure 319.9 10.0 - - 2,719.2 85.0 160.0 5.0 3,199.0 13.3 741.3 2,137.8 319.9 Commune Council Assistant Support -- - - 210.7 100.0 - - 210.7 0.9 - 210.7 - Subtotal Social Infrasturture 319.9 9.4 - - 2,929.9 85.9 160.0 4.7 3,409.7 14.2 741.3 2,348.6 319.9 2. Agriculture Water Management Infrastructure 596.8 10.0 5,073.0 85.0 - - 298.4 5.0 5,968.2 24.9 1,386.5 3,984.9 596.8 3. Rural Roads 511.2 10.0 4,600.8 90.0 -- - - 5,112.0 21.3 1,182.8 3,418.0 511.2 4. Land Acquisition and Ressettlement 115.0 100.0 ------115.0 0.5 - 103.5 11.5 Subtotal Civil Works 1,543.0 10.6 9,673.8 66.2 2,929.9 20.1 458.4 3.1 14,605.0 60.9 3,310.6 9,855.0 1,439.4 B. Vehicles and Equipment Vehicles 51.9 10.0 - - 467.1 90.0 - - 519.0 2.2 467.1 - 51.9 Equipment 9.8 10.0 - - 88.2 90.0 - - 98.0 0.4 88.2 - 9.8 Subtotal Vehicles and Equipment 61.7 10.0 - - 555.3 90.0 - - 617.0 2.6 555.3 - 61.7 C. Agricultural Extension and Development Support 187.0 10.0 - - 1,683.0 90.0 - - 1,870.0 7.8 - 1,683.0 187.0 D. Off-farm Enterprise Support 85.5 10.0 - - 769.7 90.0 - - 855.2 3.6 - 769.7 85.5 E. Training For Infrastructure Management 17.2 10.0 - - 154.8 90.0 - - 172.0 0.7 - 154.8 17.2 For Project Management 11.2 10.0 - - 100.9 90.0 - - 112.1 0.5 - 100.9 11.2 Subtotal Training 28.4 10.0 - - 255.7 90.0 - - 284.2 1.2 - 255.7 28.4 F. Consulting Services International Consultants -- - - 1,154.2 100.0 - - 1,154.2 4.8 1,154.2 - - Domestic Consultants -- - - 1,049.8 100.0 - - 1,049.8 4.4 - 1,049.8 - Subtotal Consulting Services -- - - 2,204.1 100.0 - - 2,204.1 9.2 1,154.2 1,049.8 - G. External Audit, Baseline and Impact Studies 75.3 10.0 - - 677.3 90.0 - - 752.5 3.1 351.7 325.5 75.3 H. Recurrent Costs 1. Operation and Maintenance (O&M) O&M of Infrastructure 71.0 10.0 -- - - 638.6 90.0 709.6 3.0 - 638.6 71.0 Office Operating Costs for Project Implementation 86.4 10.0 - - 777.6 90.0 - - 864.0 3.6 199.7 577.8 86.4 Subtotal Operation and Maintenance (O&M) 157.4 10.0 - - 777.6 49.4 638.6 40.6 1,573.6 6.6 199.7 1,216.5 157.4 2. Incremental Staff Remuneration 871.5 100.0 ------871.5 3.6 - 784.3 87.1 Subtotal Recurrent Costs 1,028.8 42.1 - - 777.6 31.8 638.6 26.1 2,445.1 10.2 199.7 2,000.8 244.5 Total PROJECT COSTS 3,009.7 12.7 9,673.8 40.9 9,852.4 41.7 1,097.0 4.6 23,632.9 98.5 5,571.6 15,939.5 2,121.8 Interest During Implementation - - 367.5 100.0 -- - - 367.5 1.5 - - - Total Disbursement 3,009.7 12.5 10,041.3 41.8 9,852.4 41.1 1,097.0 4.6 24,000.5 100.0 5,571.6 15,939.5 2,121.8

Appendix 4 Pa g e6

Table 7: Expenditure Accounts by Years -- Totals (US$ '000)

Base Cost Foreign Exchange 2008 2009 2010 2011 2012 2013 2014 Total % Amount Civil Works 460.9 3,346.2 3,423.8 3,552.6 3,687.2 134.3 - 14,605.0 24.4 3,126.9 Vehicles and Equipment 594.4 ------594.4 90.0 535.0 Agricultural Extension and Development Support 508.4 406.0 339.2 253.8 55.4 48.0 46.0 1,656.8 - - Off-farm Enterprise Support 66.3 270.3 163.5 156.0 36.0 36.0 16.0 744.0 - - Training and Capacity Development 40.0 70.0 65.0 65.0 5.0 5.0 - 250.0 - - Consulting Services 494.5 681.3 335.3 237.5 140.8 73.6 50.5 2,013.5 54.6 1,100.0 Recurrent Costs 261.6 292.3 322.7 353.1 383.4 384.5 127.1 2,124.8 9.2 195.0 Total Base Costs 2,453.6 4,902.2 4,372.3 4,211.9 3,767.2 744.4 398.6 20,850.1 25.4 5,286.4 Physical Contingencies 74.3 156.3 137.3 130.8 114.7 12.2 9.2 634.8 27.2 172.6 Price Contingencies 30.7 238.4 388.4 559.9 660.0 171.1 99.5 2,148.0 5.2 112.7 Total Project Costs 2,558.6 5,296.8 4,898.0 4,902.6 4,541.9 927.7 507.3 23,632.9 23.6 5,571.6 Appendix 4 Pa g e7

Table 8: Expenditure Accounts by Components - Totals Including Contingencies (US$ '000) Tonle Sap Lowlands Rural Revelopment Project Developing Expenditure Accounts by Components - Base Costs Development of Options for Project Physical (US$ '000) Rural Rural Implementation Contingencies Infrastructure Livelihoods Support Total % Amount I. Investment Costs A. Civil Works 1. Social Infrasturture Small-scale Rural Infrastructure 2,800.0 - - 2,800.0 3.4 94.9 Commune Council Assistant Support 200.0 - - 200.0 3.4 6.8 Subtotal Social Infrasturture 3,000.0 - - 3,000.0 3.4 101.7 2. Agriculture Water Management Infrastructure 5,241.6 - - 5,241.6 3.4 177.7 3. Rural Roads 4,466.0 - - 4,466.0 3.4 151.4 4. Land Acquisition and Ressettlement 100.0 - - 100.0 3.4 3.4 Subtotal Civil Works 12,807.6 - - 12,807.6 3.4 434.2 B. Vehicles and Equipment Vehicles - - 500.0 500.0 3.4 17.0 Equipment - - 94.4 94.4 3.4 3.2 Subtotal Vehicles and Equipment - - 594.4 594.4 3.4 20.2 C. Agricultural Extension and Development Support - 1,656.8 - 1,656.8 3.4 56.2 D. Off-farm Enterprise Support - 744.0 - 744.0 3.4 25.2 E. Training For Infrastructure Management 150.0 - - 150.0 3.4 5.1 For Project Management - - 100.0 100.0 3.4 3.4 Subtotal Training 150.0 - 100.0 250.0 3.4 8.5 F. Consulting Services International Consultants - - 1,100.0 1,100.0 3.4 37.3 Domestic Consultants - - 913.5 913.5 3.4 31.0 Subtotal Consulting Services - - 2,013.5 2,013.5 3.4 68.3 G. External Audit, Baseline and Impact Studies - - 659.0 659.0 3.4 22.3 H. Recurrent Costs 1. Operation and Maintenance (O&M) O&M of Infrastructure 580.2 - - 580.2 - - Office Operating Costs for Project Implementation - - 780.0 780.0 - - Subtotal Operation and Maintenance (O&M) 580.2 - 780.0 1,360.2 - - 2. Incremental Staff Remuneration - - 764.6 764.6 - - Subtotal Recurrent Costs 580.2 - 1,544.6 2,124.8 - - Total BASELINE COSTS 13,537.8 2,400.8 4,911.5 20,850.1 3.0 634.8 Physical Contingencies 439.3 81.4 114.1 634.8 - - Price Contingencies 1,509.6 243.0 395.5 2,148.0 2.8 59.9 Appendix 4 Total PROJECT COSTS 15,486.6 2,725.1 5,421.1 23,632.9 2.9 694.7

Pa Taxes 1,527.6 272.5 321.7 2,121.8 2.9 61.6 g Foreign Exchange 3,310.6 - 2,261.0 5,571.6 3.2 176.1 e8

Table 9: Disbursements by Semesters and Government Cash Flow (US$ '000)

Disburseme Asian Asian Financial Charges (US$ '000) Development Development Commune Interest The Government Bank - Loan Bank - Grant Beneficaries Project During Commitment Front-end Cumulative Amount Amount Amount Total Costs Implementation Charges fees Total Cash Flow Cash Flow 1 97.4 1,014.7 7.6 1,119.7 1,279.3 - - - 1,279.3 -159.6 -159.6 2 97.9 1,014.7 7.6 1,120.2 1,279.3 0.5 - - 1,279.8 -159.6 -319.1 3 1,122.1 1,158.7 69.6 2,350.4 2,648.4 1.0 - - 2,649.4 -299.0 -618.2 4 1,127.7 1,158.7 69.6 2,356.0 2,648.4 6.6 - - 2,655.0 -299.0 -917.2 5 1,154.7 919.1 87.3 2,161.1 2,449.0 12.2 - - 2,461.2 -300.2 -1,217.4 6 1,160.4 919.1 87.3 2,166.8 2,449.0 18.0 - - 2,467.0 -300.2 -1,517.5 7 1,209.1 850.4 106.8 2,166.3 2,451.3 23.8 - - 2,475.1 -308.8 -1,826.3 8 1,215.2 850.4 106.8 2,172.4 2,451.3 29.8 - - 2,481.2 -308.8 -2,135.1 9 1,266.1 613.1 127.9 2,007.2 2,271.0 35.9 - - 2,306.9 -299.7 -2,434.8 10 1,272.4 613.1 127.9 2,013.5 2,271.0 42.3 - - 2,313.2 -299.7 -2,734.5 11 109.0 215.4 72.9 397.3 463.8 48.6 - - 512.5 -115.1 -2,849.6 12 109.6 215.4 72.9 397.9 463.8 49.2 - - 513.0 -115.1 -2,964.8 13 49.7 154.8 76.4 280.9 253.6 49.7 - - 303.3 -22.5 -2,987.2 14 50.0 154.8 76.4 281.1 253.6 50.0 - - 303.6 -22.5 -3,009.7 Total 10,041.3 9,852.4 1,097.0 20,990.8 23,632.9 367.5 - - 24,000.5 -3,009.7 -3,009.7 Appendix 4 Pa g e9

Table 10: Foreign/ Local/Taxes by Financiers (US$ '000)

Local/Foreign/Taxes by Financiers Asian Development Asian Development Commune (US$ '000) The Government Bank - Loan Bank - Grant Beneficaries Total Amount % Amount % Amount % Amount % Amount % I. Foreign 0.0 - 2,492.3 44.7 2,961.1 53.1 118.2 2.1 5,571.6 23.2 II. Local (Excl. Taxes) 887.9 5.6 7,181.5 45.1 6,891.3 43.2 978.8 6.1 15,939.5 66.4 III. Taxes 2,121.8 100.0 ------2,121.8 8.8 Total Project 3,009.7 12.7 9,673.8 40.9 9,852.4 41.7 1,097.0 4.6 23,632.9 98.5 Interest During Implementation - - 367.5 100.0 - - - - 367.5 1.5 Total Disbursement 3,009.7 12.5 10,041.3 41.8 9,852.4 41.1 1,097.0 4.6 24,000.5 100.0

Appendix 4 Pa g e10

IMPLEMENTATION ARRANGEMENTS

10

A. Executing and Implementing Agencies

29. MOWRAM will be the EA responsible for overall management of the Project. The Project IAs are: PLAUs, MOWRAM, MRD, and MAFF. The Project arrangement is shown below.

Asian Development Bank

MEF Project Steering Committee

MOWRAM MOI Project MRD MAFF Management Office

Provincial Project Coordination Committee PLAU PDWRAM PDRD PDA

40 Commune Councils

Key

Project Reporting Line PDRD Implementing Agency Normal Supervision Line MEF Key Supporting Agency MOWRAM Executing Agency

MAFF = Ministry of Agriculture Forestry and Fisheries, MEF = Ministry of Economy and Finance, MOI = Ministry of Interior, MOWRAM = Ministry of Water Resources and Meteorology, MRD = Ministry of Rural Development, PDA = Provincial Department of Agriculture, PDRD = provincial department of rural development, PDWRAM = provincial department of water resources and meteorology, PLAU = provincial local administration unit. Source: Asian Development Bank.

11

30. The Government will establish a project steering committee (PSC) to oversee and coordinate project implementation. The PSC will be chaired by a minister of MOWRAM or his delegate, with membership at an appropriate level from the • Ministry of Economy and Finance (MEF), • MAFF, • Ministry of Environment, • Ministry of Interior (MOI), • Ministry of Women’s Affairs, and • MRD. The PSC will meet on a quarterly basis for the first 12 months after loan and grant effectiveness and at least every 6 months thereafter, or more frequently as needed. Within 2 weeks after each meeting, the PSC will submit a copy of the meeting’s minutes to ADB. A provincial coordination committee, to be chaired by the governor or his delegate with membership of the directors of PDWRAM, Provincial Department of Agriculture (PDA), PDRD, Provincial Department of Environment, and chief of the PLAU will be responsible for successful coordination of the Project at provincial level.

31. PLAUs and PDWRAM, PDRD, and PDA will assist in project implementation at the provincial level. Each department head will designate department staff to assist in day-to-day project implementation. Subprojects meeting project requirements (Appendix 1) will be identified and selected through the decentralized planning process currently used to prepare 5-year commune development plans, annual commune investment plans, and annual provincial investment plans. The relevant provincial departments will assist the commune councils to carry out the pre-investment studies needed to (i) assess the feasibility of the proposed infrastructure investment; (ii) prepare the design and cost estimates; (iii) assess the likelihood of damage to the environment; (iv) assess the resettlement impact, if any; and (v) prepare an O&M plan. Selected social infrastructure subprojects (under Component 1a, funded by the CDF) will be implemented by commune councils with the technical support of appropriate provincial departments. Subprojects under Components 1b, 1c, and 2 will be implemented by the appropriate provincial departments with guidance from the line ministries concerned.

32. The Project will provide for strengthening the capacity of participating provincial departments and commune councils in subproject design and implementation, and financial management through incremental staff support and staff training. A team of international and national consultants will assist the provincial departments and commune councils in the overall planning, design, and implementation; and in addressing specific institutional and technical issues.

B. Project Management Organization

33. MOWRAM will establish a PMO at the national level, headed by a project director. The PMO will have four deputy directors, designated as Project Managers (one each from MOWRAM, MRD, MOI, and MAFF) who will be responsible for management and supervision of the activities of their respective IAs. The PMO will include technical and accounting staff who have had experience with ADB procedures, rules, and guidelines; and who will be responsible for consultant recruitment, procurement, funds withdrawal, disbursement, and reimbursement. The detailed implementation arrangements for each IA in the national and provincial level are in Diagrams 2 and 3.

12 NATIONAL LEVEL

Minister MOWRAM

Project Steering Committee MANAGEMENT TEAM H.E. Veng Sakhon, Secretary of State, MOWRAM (Proj. Dir.) tel. no: 012263999/ 023725327 email: [email protected]

MAFF MOWRAM MRD MOI So Khanrithykhun Choun Bithol Ngoun Dara Yin Malyna tel. no.: 12833777 tel. no.: 012923222 tel. no.:012903848/ 011903848 Tel. No. 011682222/ 023215094 email: [email protected] email: [email protected] email: darang [email protected] email: [email protected]

Klok Sam Ang Administrator Procurement Administrator Administrator Tel. no.: 012998951/ 011955669 email: [email protected]

Choun Bithol Technical Engineering Technical Technical Professional tel. no.: 012923222 Professional Professional email: [email protected]

Chhea Chhunheat Administration tel. no.: Email:

Tocha Ang CPMU Resettlement tel. no.: Email:

???? WUA tel. no.: Email:

Heng Souheang Yin Sophy Accountant Consultant Accountant tel. no.: tel. no.: 023219086 email: email: [email protected] 13

PROVINCIAL LEVEL

Provincial Governor

PDA PDWRAM PDRD PLAU Name: Name: Name: Name: tel. no: tel. no: tel. no: tel. no: email: email: email: email:

PDA TEAM PDWRAM TEAM PDRD TEAM PLAU TEAM

.

IMPLEMENTATION SCHEDULE

14

34. The Project will be implemented over 6 years from 2009 to mid-2015 after initial preparations during 2008. Since the subproject investments will be relatively small in size, and many interventions identified during project design are already identified in the commune investment plan, preparation work in most commune level subprojects is expected to begin within the first year.

INDICATIVE SCHEDULE OF ACTIVITIES

2008 2009 2010 2011 2012 2013 2014 2015 Activities Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Establish PMO at MOWRAM Identify project focal points in Provincial Line departments Procurement of Consultants - Advance Action Establish Project Steering Committee Steering Committee Meetings X X X X X X X X X X X X X X X A. Rural infrastructure is improved 1. Facilitate commune participatory development planning 2. Coordinate work plan with relevant infrastructure institutions XXXx XX 3. Develop detailed feasibility study for rural roads 4. Develop detailed feasibility study for irrigation systems 5. Develop detailed feasibility study for rural markets etc. 6. Monitor physical and financial progress of the construction/rehabilitation 7. Establish institutions for operation and maintenance of infrastructure 8. Implement O&M transfer strategy at each subproject B. Rural livelihood options developed 1. Access to technical services for income generating activities (IGA) 2. Train CCS to faciltate access to technical and financial services 3.. Implement training in on-farm and/or off-farm opportunities 4. Establish training, demonstration plots, site visits, and other mechanisms on-farm and off-farm activities C. Project implementation is effective 1. Develop work plan and implementation guidelines for the project 2. Recruit and train staff at national, 3 provinces and 40 communes 3. Develop detailed guidelines for project implementation 4. Monitor physical and financial progress against time table 5. Prepare financial and physical progress reports on the project CCS = Commune Council Supporter, IGA = income generating activities, O&M = operations and maintenance, MOWRAM = Ministry of Water Resources and Meteorology, PMO = project management office. Source: Asian Development Bank.

CONSULTANT RECRUITMENT 15

35. The Project will require a total of 489 person-months of consulting services (55 person- months of international specialists and 434 person-months of national specialists). An indicative staffing schedule and outline terms of reference are in Appendix 5, pages 1-9.

36. All consultants except the postharvest management specialists and the TSI coordinator will be selected and engaged as a firm in accordance with ADB’s Guidelines on the Use of Consultants (2007, as amended from time to time). In selecting the firm, the quality and cost- based selection method (80:20) will be used and the short-listed firms will be required to submit full technical proposals. To calculate the firms’ total scores, the technical proposals will be given a weight of 80% and the financial proposals a weight of 20%. The flowchart for the QCBS method of recruitment is in Appendix 5, page 10.

37. Provision has been made for postharvest management specialists (international and national) with expertise in postharvest technology to be selected as individual consultants. The Government has agreed to recruit the individual consultants in accordance with ADB’s procedure for recruiting individual consultants. The flowchart for recruitment of individual consultants is in Appendix 5, page 11.

38. The TSI coordinator will be recruited by ADB to support and coordinate project implementation under the TSI, and improve communication between the EAs of TSI projects and ADB.

A. Recruitment of a Consulting Firm using the QCBS Method

1. Advertising the consulting assignment

• ADB posts a notice describing each consulting assignment in the Business Opportunities section of ADB’s website before short-listing. The minimum posting time for each assignment is 30 days. The website includes a link to a standard expression of interest (EOI) form for loans that firms can download, fill out, and send directly to the Executing Agency (EA).

• The EA may, in addition, advertise in local newspapers and international trade publications - a standard template on consultant recruitment notice is provided by ADB. This template contains an address (preferably including an email address) at the EA to which interested firms can write to obtain a standard EOI form.

2. Consultants Expressing Interest

• To ensure that all data required to assess firms for the short list are obtained at the required level of detail, the EA is required to request EOIs in standard EOI form. A sample standard EOI form is available on ADB’s website1. The standard EOI form may be submitted in hard or soft (electronic) copy. Thus all firms will be assessed for short-listing on the basis of uniform documents containing the same type of information.

• The EA may receive EOIs from individual consulting firms and from groups of firms. Consulting firms may associate with each other to complement their respective areas of expertise, or for other reasons. The “association” may take the form of joint venture or of a

1 http://www.adb.org/Consulting/toolkit-template.asp 16

subconsultancy. Under a joint venture, all members are jointly and severally liable for any possible contract entered into with the EA. Under a subconsultancy, firms have a non-legally binding association and only one firm in the group contracts directly with the EA. Under both types of association, firms express interest together and have their qualifications and experience considered jointly. When expressing interest, an association (whether joint venture or subconsultancy) must nominate one firm as the lead firm and this firm interacts directly with the EA as the sole formal representative of the association. The qualifications of all firms participating in a joint venture or a subconsultancy are assessed during short-listing, although the qualifications of the lead firm will be given a greater weight than its associates in the case of a subconsultancy. When expressing interest in an assignment, a lead firm, either international or national, cannot be a member of another subconsultancy or joint venture. Once short-listed, a joint venture or subconsultancy may take on additional partners to broaden its range of expertise and experience.

• To determine the nationality of a joint venture or association for the purpose of short-listing, the EA should use the nationality of the lead firm of the joint venture or association.

• Since international firms may be short-listed only once for any one TA, an international firm may participate in a joint venture or an association only if it has not submitted a separate individual EOI and is not included in the EOI for another joint venture or association. National firms may be included in more than one EOI and more than one proposal.

• Once short-listed, a joint venture or association may take on additional partners to broaden its range of expertise and experience.

3. Preparing the Short List and the Request for Proposals (RFP)

• The EA first reviews the scope of the assignment, the detailed TOR, and EOIs received for the assignment and then prepares a long list. This normally includes 15–20 technically qualified consulting firms with experience in similar projects. The EA normally includes all the qualified consultants that expressed interest. The EA may also ask ADB for a list of qualified consultants. The EA decides whether to include any of these consultants on the long list and may also add other experienced consultants to the list.

• The EA then prepares a short list of six consultants. This may be done through a consultant selection committee (CSC) set up by the Government and including staff of the EA, or by a CSC set up within the EA itself, depending on the normal procedure in the country concerned.

• To ensure a wide geographic spread for projects requiring international consulting input, the short list should contain firms from a broad range of ADB member countries. When possible, short lists should include one firm from any one country, but no more than two firms are allowed for any one country. In addition, there should be at least one firm from a developing member country (DMC), unless no qualified DMC firm has expressed interest or one cannot be identified from ADB’s database of qualified consultants.

• The EA next prepares the RFP documents in ADB’s format (templates for this are available on ADB’s website, http://www.adb.org/Consulting/documents.asp). The information in the RFP includes the

17

9 submission of technical and financial proposals at the same time in separate sealed envelopes; 9 names of the short-listed consultants; 9 selection method the EA will use, which is QCBS; 9 detailed TOR; 9 estimates of the total international and national person-months and the costs; and the required expertise, data, facilities, services, and reports; 9 type of technical proposal requested and instructions on how to prepare that type of proposal (full technical proposals will be required); 9 evaluation criteria for the technical proposals; 9 EA’s budget for the assignment, including any provisional sums or contingencies; 9 deadline for the EA to receive the proposals; and 9 addresses of the EA and ADB to which the consultants must send copies of the proposals.

• The RFP also explains the following:

9 The successful consultant must disqualify itself, its affiliates, and its associates from participating in the project in any other capacity. For example, firms of independent consulting engineers are limited to the role of consulting engineers and must not also act as contractors or manufacturers.

9 The EA may exclude a consultant if it is found to have a conflict of interest (Guidelines paragraphs 1.10-1.11) or if the EA determines that a consultant engaged in corrupt, fraudulent, collusive, or coercive practices (Guidelines paragraph 1.23).

9 Firms that have expressed interest as a part of a joint venture or association will be short-listed as such, and all firms that indicated their participation are expected to be represented in the proposal. Additional firms may be included in the joint venture or association when the proposal is submitted.

9 The EA will select a firm based first on the firm’s qualifications to perform the work, and second on the cost of the firm’s services.

9 The EA will accept only one candidate expert for each position. If more than one curriculum vitae is provided for any one position, no score will be given for that position.

9 The EA will accept only one proposal per firm except for national firms associated with and providing national consultants for international firms.

9 The EA will publicly open the financial proposals received from the technically qualified firms and will return unopened the financial proposals received from the firms that do not qualify after completion of contract negotiations.

• The RFP also includes instructions on submitting financial proposals and other procedures that are specific to the selection method the EA will use. They include a data sheet, which, among other information, states the EA’s budget for the assignment. This is either in maximum budget or an estimated budget. A maximum budget is shown when costs are certain and it is unlikely that financial proposals will exceed this budget. An estimated 18

budget is shown when cost estimates are not certain and it is possible that financial proposals may exceed it. When preparing the RFP, the EA should ascertain that all costs that may be included in the consultants’ contract are included in the estimated contract budget published in the data sheet. These should include (besides consulting fees) per diems, travel costs, the costs of any vehicles or equipment specifically associated with the consultancy, and any special items (for example the cost of recruiting nongovernment organizations or providing training). Any fixed costs such as provisional sums or contingencies should be clearly identified.

• For QCBS in which the data sheet indicates a maximum budget, the RFP will clearly state that financial proposal must be within this budget; otherwise the financial proposal will be considered nonresponsive and will not be awarded any points during the financial evaluation. For QCBS in which the data sheet indicates an estimated budget, firms will not be penalized if the financial proposal exceeds the budget.

4. Reviewing the EA’s Short-listing Documents and Request for Proposals

• The EA submits its documents in ADB’s standard format (QCBS Submission 1 which can be downloaded from ADB’s website, http://www.adb.org/Consulting/documents.asp [also in Appendix 5]).

• ADB reviews and informs the EA of any deficiencies, shortcomings, or gaps in the documents and requests them to be revised accordingly. Once the documents are in order, ADB informs the EA of its approval and provides clearance for the EA to proceed with the issuance of the RFP.

5. Requesting Proposals

• The EA then sends RFPs to the consultants on the short list. The consultants acknowledge receiving the RFPs and any notices from the EA of extensions to the deadline for receiving proposals. The consultants also advise whether they intend to submit proposals. If there are any queries from the consultants, the EA must provide all the short-listed consultants with the same information without disclosing the source of the query.

6. Evaluating the Technical Proposals

• After receiving the consultants’ proposals, the EA first securely stores the unopened financial proposals. The EA rejects any it receives after the stated deadline.

• The EA then establishes a CSC, which evaluates the technical proposals using the evaluation criteria approved by ADB. The CSC prepares minutes of its evaluation meeting and a report on its evaluation, describing the strengths and weaknesses of each proposal (see sample in Appendix 5, page 15-16).

• The minimum technical score is 750 points out of 1,000.

7. Reviewing the EA’s Technical Evaluation Documents

• The EA submit its technical evaluation documents to ADB for approval, the EA submits its documents in ADB’s standard format (QCBS Submission 2 which can be downloaded from 19

ADB’s website, http://www.adb.org/Consulting/documents.asp [also in Appendix 5, page 14]). The documents include

9 a summary evaluation sheet highlighting any proposal that scored less than 750 points out of 1,000 (form to be used is in the RFP), 9 a personnel evaluation sheet for each proposal (form to be use, 9 comments on the strengths and weaknesses of each proposal, and 9 minutes of the evaluation meeting(s).

• ADB’s reviews the documents and informs the EA of any deficiencies, shortcomings, or gaps in the documents and requests them to be revised accordingly. Once the documents are in order, ADB informs the EA of its approval.

• After receipt of ADB’s approval, the EA advises any consultants whose technical proposals score less than 750 points that they were unsuccessful and that the EA will return their financial proposals unopened at the end of the selection process.

8. Public Opening of Financial Proposals

• The EA shall then inform the firms whose technical proposals scored 750 points or more of the time and place where the EA will publicly open their financial proposals. The name of the firms, the technical quality scores, and the proposed prices shall be announced, and recorded when the financial proposals are opened.

• At the opening, the EA 9 has the people attending sign an attendance sheet, 9 reads aloud the technical scores of the qualified firms, 9 opens the financial proposals and reads aloud the total prices, and records it and 9 indicates the likely schedule for contract negotiations and commencement of the assignment.

• The EA keeps all the other information in the financial proposals confidential.

• After the opening, the EA sends a letter advising the qualified firms, whether or not they attended, of the technical scores and total prices for each qualified firm.

9. Evaluating the Financial Proposal

• The EA next evaluates the financial proposals and records the results on standard forms to be provided to the EA by ADB.

• The EA verifies the price of each proposal using the procedure specified in the RFP. In doing so, it 9 checks that the commercial terms in the proposal comply with the requirements in the RFP; 9 corrects any mathematical errors and makes sure that the proposal includes the cost of all the services that the firm described in its technical proposal and for which the cost can be fairly estimated; 20

9 makes sure that the provisional sums and the contingency amount are clearly and separately identified in the proposal in the same amounts as indicated in the data sheet; 9 makes sure that the proposal excludes any separately identified local income tax on the international consultants, and converts any prices in other currencies to United States dollars using the source for the exchange rates that was identified in the RFP; and 9 checks that the gross evaluated financial proposal (GEFP) (the proposal corrected for errors but including provisional sums and contingency) is within the assigned budget. If the GEFP exceeds the contract budget as shown in the data sheet, the financial proposal will be considered financially nonresponsive and will be allocated a score of zero.

• The EA then calculates the financial score for each financial proposal. Calculations are done only on the basis of variable cost items such as remuneration and out-of-pocket expenditures. Fixed-cost items such as provisional sums and contingencies are not included in the calculations. They are subtracted from the GEFP resulting in a net evaluated financial proposal (NEFP). The EA then gives the lowest NEFP a financial score of 1,000. To calculate the financial scores of the other proposals, the EA divides the lowest NEFP by the NEFP being considered and multiplies the result by 1,000.

• Evaluations of financial proposals are confidential, and the EA discloses the details only to the ADB or EA staff directly involved in the evaluations. Any attempt to influence an evaluation will be dealt with according to ADB’s anticorruption policy.

10. Completing the Evaluations

• The EA calculates the final score for each consultant by adding the agreed upon weighting of the technical score to the agreed upon weighting of the financial score. The EA ranks the consultants based on their final scores and prepares an evaluation report.

11. Reviewing the EA’s Financial Evaluation and Overall Ranking Documents

• The EA submit its financial evaluation and final ranking documents to ADB for approval, the EA submits its documents in ADB’s standard format (QCBS Submission 3 which can be downloaded from ADB’s website, http://www.adb.org/Consulting/documents.asp [also in Appendix 5, page 17-23]). The documents include the minutes of the public opening, the financial evaluation report, the ranking, and the minutes of the financial evaluation meeting(s).

• ADB reviews the documents, and prior to approval, the EA is informed of any deficiencies, shortcomings, or gaps in the documents and is requested to revise them accordingly. ADB advises the EA of its decision. ADB’s approval is final, and it does not consider any revised rankings submitted later.

12. Negotiating the Contract

• The EA then writes to the first-ranked consultant and advises that it wishes to negotiate a contract. The EA normally conducts the negotiations face-to-face. The consultant must pay all its representative’s costs to attend the negotiations. The letter 21

9 invites the consultant to send a representative to the EA’s offices, who will be prepared to discuss the consultant’s proposal and has the authority to finalize and sign a contract; 9 proposes a schedule and agenda; 9 asks the consultant to confirm the availability of all the team members nominated in its technical proposal; and 9 summarizes any issues identified during the evaluation that require clarification, any deficiencies to be corrected, any team members to be replaced, or any other corrective action to be taken. 9 If there is likely to be a delay in negotiations, the letter may also request the consultant to extend the validity of its bid for a reasonable time until negotiations can be held.

• The negotiations cover the TOR, the consultant’s methodology and work plan, the team members and personnel schedule, the counterpart facilities the EA will provide, the financial terms, and the other terms and conditions in the contract.

• During the contract negotiations, the EA may make only minor changes in the TOR, the consultant’s inputs, and the quantities of expenses. The EA normally cannot change the consultant’s proposed rates for remuneration and expenses.

• After completing the negotiations, the EA returns the unopened financial proposals of the consultants whose technical proposals scored less than 750 points.

• If the EA and the consultant cannot reach agreement, the EA may ask ADB’s agreement to terminate the negotiations and start negotiations with the next-ranked consultant, in turn, until it reaches an agreement.

13. Reviewing the EA’s Draft Contract

• The EA submit its draft negotiated contract and the minutes of the contract negotiations to ADB for approval, the EA submits them in ADB’s standard format (QCBS Submission 4 which can be downloaded from ADB’s website, http://www.adb.org/Consulting/documents.asp [also in Appendix 5, page 24-28]).

• ADB reviews and advises the EA of approval.

14. Finalizing the Contract

• After receiving ADB’s approval, the EA signs the contract, obtains the consultant’s signature, and submits a copy to ADB for its records (QCBS Submission 5 which can be downloaded from ADB’s website, http://www.adb.org/Consulting/documents.asp [also in Appendix 5, page 29]). The EA also submits some information for ADB to publish on its website. This consists of 9 names of the short-listed consultants who submitted proposals; 9 scores of their technical proposals; 9 prices in their financial proposals; 9 overall ranking; 9 name of the consultant selected; and 9 cost, duration, and summary scope of the contract. 22

• After completing the selection, it is the EA’s responsibility to brief the short-listed consultants on the reasons for their ranking, when asked.

B. Recruitment of Individual Consultants

1. The EA may engage individual consultants directly or through an organization such as a consulting firm, an academic institution, a government agency, or an international agency.

2. ADB categorizes individual consulting assignments as 9 international if they require international experience, and consultants from all ADB member countries may apply and be considered; or 9 national if they require expertise available only in the borrowing country, and only nationals of the borrowing country may apply and be considered.

3. Nationals of the country concerned who have extensive international experience may be considered as international consultants for assignments that require an international level of expertise. (Extensive international experience is generally defined as having been recruited for three or more contracts at an international level, but also includes individuals of internationally acknowledged expertise in their professional fields.)

1. Selecting and Approving the Short List

• Several weeks before an individual consulting assignment is scheduled to start, the EA prepares a short list of at least three qualified candidates. The EA normally includes no more than one candidate from any ADB member country. At the EA’s request, ADB will provide the names and qualifications of suitable candidates from ADB’s database of qualified consultants. The EA may also advertise for suitable candidates.

• The EA ranks the candidates, and then normally submits their names and qualifications and the draft contract it will use for the engagement to ADB for approval (Submission 1 which can be downloaded from ADB’s website, http://www.adb.org/Consulting/documents.asp [also in Appendix 5, page 30-31]).

• ADB reviews the documents and informs the EA of any deficiencies, shortcomings, or gaps in the documents and requests them to be revised accordingly. Once the documents are in order, ADB informs the EA of its approval.

2. Negotiating and Approving the Contract

• After ADB approves the ranked short list and draft contract, the EA negotiates with the first- ranked candidate. If the negotiations fail, the EA obtains ADB’s approval to negotiate in turn with the next-ranked candidate until agreement is reached. The EA then normally sends a copy of the draft negotiated contract to ADB for approval.

3. Finalizing the Contract

• After ADB approves the draft negotiated contract, the EA concludes the negotiations, signs the contract, and submits a copy to ADB for its records (Submission 2 which can be 23 downloaded from ADB’s website, http://www.adb.org/Consulting/documents.asp [also in Appendix 5, page 32]).

Appendix 5 Page 1

INDICATIVE STAFFING SCHEDULE (FOR CONSULTANTS)

CONSULTING SERVICES – TERMS OF REFERENCE

1. The Project is expected to commence in March 2009 and to be completed by June 2014 and will require a total of 444 person months of consulting services – 37 person months of international specialists and 407 person months of national specialists – to assist the national, provincial and commune government agencies, community groups including water user groups and other income generating associations to (i) improve community consultation and participatory planning and assist the implementation of community mobilization activities, (ii) strengthen institutional management capacity and technical knowledge of relevant local government agencies and community groups, (iii) ensure selection and design of the most suitable and affordable infrastructure upgrading and development for each subproject, (iv) improve land use and agricultural productivity, and (v) facilitate individuals and community groups to develop new off-farm employment opportunities . The consultants’ inputs will be provided intermittently from June 2008 through June 2014. Consultants will be selected and engaged, in accordance with the ADB’s: Guidelines on the Use of Consultants (2007, as amended from time to time), through an international firm in association with national firms, and short-listed firms will submit full technical proposals.

2. The consultants will assist with overall coordination of the project through participating agencies at national, provincial, district, commune and village level. The tasks covered in the terms of reference (TOR) require integrated management through the deployment of a team of specialists covering a wide range of disciplines, as summarized in table below.

Summary of Consulting Services Person Months Expertise International National Rural development Specialist/Team Leader 16 - Community Driven Development specialist/ (National specialist to 4 be designated as DTLs) 3 by 27 = 81 Irrigation engineer - 3 by 15 = 45 Environment specialist 2 11 Rural Business Development specialist 3 8 Capacity Building and Training specialist 3 - Rural infrastructure specialist/Road engineer - 3 by 11 = 33 Social and Safeguards Specialist 3 16 GIS specialist - 19 MIS specialist - 20 Procurement Specialists 3 3 by 6 = 18 Quality Assurance Specialists 3 3 by 20 = 60 Accountants - 3 by 32 = 96 Total 37 407 Source: Asian Development Bank staff estimates.

A. International Consultants

1. Rural development Specialist/Team Leader (international, 16 person-months)

The Team Leader will take overall responsibility for the activities of all consultants and ensure the timely completion and quality of activities and reports to Government and ADB. As rural development specialist the consultant will work closely with Ministry of Water Resources and Appendix 5 Page 2

Meteorology (MOWRAM, the Executing Agency), its Central Project Management Office (CPMO) in Phnom Penh; and implementing agencies (IAs) (Ministry of Rural Development (MRD); Ministry of Agriculture Fisheries and Forestry (MAFF) and their provincial units (PDWRAM, PRD, PDA, and the Provincial Department of Local Administration (PLA) and the Provincial Rural Development Committees (PRDC) to develop and implement the Project's strategy for supporting livelihood improvements at village and commune level in the project area. The assignment requires graduate level qualifications in a relevant subject and a minimum of 20 years of professional experience. The expert will have advanced leadership, managerial, diplomatic, and negotiating skills and a history of managing for results, in adherence to the working regulations of employers. Substantial experience in participatory rural development and livelihood improvement is necessary. He/she will be expected to demonstrate initiative, productivity, and ability to adapt knowledge and experience to the assigned task. The quality of work completed will be expected to be high. Country experience would be beneficial. Familiarity with ADB processes and procedures would be an advantage. Experience of more than one ADB project implementation is desirable.

2. Environment Specialist (international, 2 person-months)

Together with national environmentalist, the Environmental Specialist will train selected staff of implementing agencies in undertaking initial environmental examinations (IEEs) at subproject sites and preparing reports; and develop, together with IA staff and the Team Leader, a work program to conduct IEEs of the subproject sites. The assignment requires a minimum of 15 years experience of environment impact assessment. The specialist will have advanced education (minimum of Masters Degree) in environmental sciences and experience in the conduct of environmental impact assessment in rural development projects. Experience in the application of the ADB Environment Policy; and ADB Environment Assessment Guidelines is desirable.

3. Rural Business Development specialist (international, 3 person-months)

Together with the national Rural Business Development Specialists the specialist will: (i) identify viable business opportunities in each participating province, including markets and specific quality and quantity requirements; (ii) prepare sample business plans for typical enterprises and establish outline financing requirements with commercial financial services agencies; (iii) prepare training and capacity building requirements and outline training courses, including identification of providers of required training for potential entrepreneurs; and (iv) prepare training material for CCAs to guide them in identifying candidates for development of new enterprises at commune level. The assignment requires a minimum of 15 years of experience with a degree level formal business qualification being an advantage. The expert will have advanced skills in small business, development of business plan, and financial management. Experience in identifying viable business opportunities for rural community is required, and the country or regional experience would be beneficial as well.

4. Community Driven Development specialist (international, 4 person-months)

The Community Development Specialist (CDD), in collaboration with the national CDD specialists, will: (i) develop a community participation development plan, and review the gender plan, the Guidelines for Ethnic Minorities Participation Framework, and the Resettlement Framework with reference to (a) likely small scale infrastructure to be developed through the Commune Development Fund, and (b) the development of on-farm and off-farm employment Appendix 5 Page 3 opportunities; (ii) develop detailed information and training on Project procedures for relevant line departments and commune councils; (iii) in accordance with the community participation development plan, disseminate the project concept and activities among target communities, and facilitate the selection of CCAs; (iv) review existing training materials aimed at water user group (FWUG) establishment and community preparation and make recommendations for improvements as appropriate; (v) facilitate the selection and delivery of community mobilization and extension activities together with CCAs; (vi) facilitate the initial social assessment of project communities with CCAs to determine ability and willingness to participate in subproject, including an assessment of absorptive capacity. The assignment requires a degree level education in social sciences and a minimum of 15 years of experience. The expert will have experience in facilitating rural communities to develop and strengthen rural institutions for management of natural resources and small scale infrastructure; including responsibility for financial management of resources.

5. Capacity Building and Training specialist (international, 3 person-months)

The specialist will assist the EA and IA to: (i) conduct training needs assessments in line agency departments to develop appropriate training programs for project implement and strengthening the capacity of line agency provincial departments; (ii) develop capacity development program for provincial line department staff; (iii) supervise development of training program for CCAs and Commune Council members; and (iv) identify appropriate training and capacity development providers. The assignment requires a degree level qualification and a minimum of 10 years of relevant experience. The expert will have considerable work experience in conduct of training and should have experience in identification of training needs assessments and planning and program development.

6. Social and Safeguards Specialist (international 3 person-months)

Together with the national social and safeguards specialist the Specialist will assist the EA to: (i) prepare guidelines to assist EA and IAs to ensure that regulations and procedures in the Project resettlement framework (RF) are strictly adhered to during resettlement preparation, implementation, monitoring and evaluation, including, where required, assisting EA, IA and Communes, under the guidance from Provincial Resettlement Sub-committee to prepare subproject resettlement plans; (ii) prepare guidelines to assist EA and IAs to ensure the agreed gender action plan is implemented fully; and (iii) prepare guidelines to assist EA and IAs to ensure indigenous peoples development plans are prepared for all subprojects where indigenous peoples are affected by the project. The assignment requires a minimum of 15 years of experience. The expert will have a degree level qualification in social sciences and advanced skills in aspects of regulation and procedure enforcement. The specialist should have experience in preparation of development plans for indigenous people and ADB resettlement procedures. Country or regional experience would be beneficial.

7. Procurement Specialist (international 3 months)

Together with the national procurement specialists and the rural infrastructure engineers (Irrigation and Roads), the specialist will: (i) assist the EA and IAs to prepare standard bidding documents, call for proposals, conduct evaluation of bids, and contract negotiations following the agreed procurement manuals and the Project Administration Manual; (ii) prepare training needs assessment of participating line agencies; and (iii) organize training sessions on Standard operating Procedures and Procurement Manuals as required. The assignment requires a minimum of 10 years of experience in procurement work. The specialist should have experience Appendix 5 Page 4 in bidding and conduct of training on Standards Operating Procedures and Procurement Manuals. Understanding of ADB's Guidelines on the Procurement would be beneficial.

8. Quality Assurance Specialist (international 3 months)

Together with the national Quality Assurance Specialists and the rural infrastructure engineers (Irrigation and Roads), the specialist will: (i) assist the EA and IAs to undertake construction supervision, final inspection and certification of works implemented under components 1a, 1b, and 1c; (ii) prepare training needs assessment of participating line agencies; and (iii) organize training sessions on appropriate quality assurance and inspection procedures; including participatory monitoring of works by communities and beneficiaries. The assignment requires a professional qualification in engineering and a minimum of 10 years experience in Quality Control (QC). The expert should have experience in evaluation of quality of rural roads and small-scale irrigations and infrastructures in the rural communities. Experience in conduct of training and assessment of training needs are also required.

B. National Consultants

1. Community Driven Development Specialists/ Deputy Team Leader (national, 3 positions 27 months, total 81 person months)

The national Community Development Specialists will be designated at deputy team leaders and leaders of the Provincial Support Team2 in each province. The Community Development Specialist will have graduate qualification in social science and will have previous experience particularly in the field of community driven development (CDD) and gender in development. Excellent computer skills and fluency in written and spoken English are required. As CDD specialists the specialist will: (i) assist the International CDD Specialist to conduct training needs assessments for all levels of project staff, implementation consultants, contractors, commune facilitators, commune councilors and other stakeholders in participatory and demand driven infrastructure planning, community organization strategies, gender skills/awareness and other skills/techniques; (ii) contribute to the development of participatory process guidelines and manuals for each sub-component; (iii) provide training to identified staff and provide direct guidance to Community Facilitators staff to ensure sure their activities are implemented in line with guidelines and manuals to deliver project outputs; and (iv) assist in the development of monitoring and evaluation indicators suitable for participatory monitoring by communities. The assignment requires a minimum of 15 years of experience. The Community Driven Development Specialist should have degree level qualification in social science and have experience in community driven development (CDD), facilitating rural communities, and strengthening rural institutions for management of natural resources and small scale infrastructure.

2 A Provincial Support Team will comprise national specialists, namely: (i) community driven development specialists (CDD); (ii) rural infrastructure/road engineer; (iii) rural infrastructure/irrigation engineer; (iv) procurement specialist; (v) quality assurance engineer; and (vi) an accountant. The PST will be based in the Provincial capital with members of the team assigned to the relevant line departments. International consultants will provide additional support as required. Appendix 5 Page 5

2. Rural Infrastructure Specialist/Irrigation engineer (national, 3 positions @ 15 months 45 person-months)

The Irrigation Engineer will ensure the timely completion and quality of activities. Specifically, the Team Leader will assist the PDWRAM to: (i) consult with commune councils to identify priority irrigation infrastructure for upgrading or rehabilitation; (ii) prepare feasibility studies, including safeguard policy requirements on resettlement, environment; (iii) prepare detailed designs and cost estimates; (iv) prepare bidding documents and contractor selection in collaboration with Procurement Specialists; (v) supervise of construction and final inspection, in collaboration with commune councils and Quality Assurance Specialists; (vi) provide management assistance to government agencies at the national, provincial and district levels for social and technical aspects of subproject identification, planning, survey, design, implementation, and operation and maintenance (O&M), and assist with technology transfer, particularly at provincial and district levels; and (vii) assist the development of systems and procedures for sustainable management and O&M of the completed irrigation systems. The assignment requires a civil engineering degree and a minimum of 10 years of experience. The expert will have advanced skills in multiple aspects of rural engineering. Practical experience should cover planning and feasibility design of a broad range of rural development projects, including rural watering systems, small-scale to medium-scale irrigation and drainage schemes, and wastewater disposal facilities. Country or regional experience would be beneficial.

3. Environment specialist (national, 11 person-months)

The Environmental Specialist will: (i) train selected staff of implementing agencies in undertaking initial environmental examinations (IEEs) at subproject sites and preparing reports; (ii) develop, together with IA staff and the Team Leader, a work program to conduct IEEs of the subproject sites; and (iii) provide assistance to IAs to implement the environmental management plan. The assignment requires a minimum of 10 years experience in conduct of environment impact assessment in rural development projects. The specialist should have advanced education in environmental sciences and experience in the preparation of Initial Environment Examinations (IEE). Experience in the application of the ADB Environment Policy; and ADB Environment Assessment Guidelines is desirable.

4. Rural Business Development specialist (national, 8 person-months)

With the guidance of the International specialist the specialist will: (i) continue to identify viable business opportunities in each participating province, including markets and specific quality and quantity requirements; (ii) assist potential entrepreneurs prepare business plans for selected typical enterprises and establish outline financing requirements with commercial financial services agencies; (iii) prepare training and capacity building requirements and outline training courses, including identification of providers of required training for potential entrepreneurs; and (iv) prepare training material for CCAs to guide them in identifying candidates for development of new enterprises at commune level. The assignment requires a minimum of 10 years of experience. The expert will have advanced skills in small business, development of business plan, and financial management. Experience in identifying viable business opportunities for rural community is required, and the country or regional experience would be beneficial as well.

Appendix 5 Page 6

5. Rural infrastructure specialist/Road engineer (national, 3 by 11 person months = 33 person-months)

The Engineer will assist the PRD to: (i) consult with commune councils to identify priority road sections for upgrading or rehabilitation; (ii) prepare feasibility studies, including safeguard policy requirements on resettlement, environment; (iii) prepare detailed designs and cost estimates; (iv) prepare bidding documents and contractor selection in collaboration with Procurement Specialists; (v) supervise of construction and final inspection, in collaboration with commune councils and Quality Assurance Specialists; (vi) provide management assistance to government agencies at the national, provincial and district levels for social and technical aspects of subproject identification, planning, survey, design, implementation, and operation and maintenance (O&M), and assist with technology transfer, particularly at provincial and district levels; and (vii) assist the development of systems and procedures for sustainable O&M of the rehabilitated road sections. The assignment requires a civil engineering degree and a minimum of 10 years of experience. The expert will have advanced skills in multiple aspects of rural engineering. Practical experience should cover planning and feasibility design of a broad range of rural development projects, including market facilities, agro-processing sites, rural roads, village drinking water schemes, small-scale to medium-scale irrigation and drainage schemes, primary schools, health posts, and wastewater disposal facilities. , 6. Social Safeguards Specialist (national 16 person-months))

The Specialist will assist the EA to ensure that regulations and procedures in the Project resettlement framework (RF) are strictly adhered to during resettlement preparation, implementation, monitoring and evaluation, including, where required, assisting EA, IA and Communes, under the guidance from Provincial Resettlement Sub-committee to prepare subproject resettlement plans including (a) undertaking a census of all APs; (b) conducting a detailed measurement survey (DMS); and (c) undertaking a socioeconomic survey of at least 10% of all Affected Persons (APs), 20% of severely affected APs. The Specialist will assist in (i) contracting a replacement cost survey; (ii) screening of subproject impact; and (iii) disclosing subproject land acquisition and resettlement plan to affected people. The Specialist will ensure that appropriate training programs to Project staff are provided by providing guidelines and training at the inception stage of Project. S(he) will coordinate closely with Inter-Ministerial Resettlement Committee (including Provincial Subcommittee) and ADB so civil works contractors will not be issued a notice of possession of the site until a) compensation and relocation of APs have been satisfactorily completed; b) agreed rehabilitation assistance is in place; and, c) the site is free of all encumbrances. The specialist will also assist the EA to oversee the implementation of the Project Gender Action Plan (GAP) by effectively integrating gender into project implementation as appropriate. The Specialist will develop and implement training and awareness programme on for Project Staff and participating government agencies to ensure gender awareness is mainstreamed in Project activities. The specialist will be involved in the design of monitoring and evaluation systems so as to be able to sex disaggregated information in progress reports and evaluation reports. The Specialist will also provide training for agency staff to ensure that indigenous peoples' development plans are prepared for all subprojects where indigenous peoples are affected by the project. The assignment requires a minimum of 10 years of experience following a degree level education in social sciences. The expert will have advanced skills in aspects of regulations, procedures, and law enforcement and of gender development. The specialist should have experience in preparation of development plans for indigenous people. Country or regional experience would be beneficial.

Appendix 5 Page 7

7. GIS specialist (national, 19 person-months)

The GIS specialist will assist the EA and IA establish geographic information systems showing information for all project communes to enable effective planning and monitoring a project activities. The specialist will establish collaborations with the Tonle Sap Clearing House Mechanism and other GIS users in Cambodia. The Specialist will assist EA, IA and consultants to establish effective reporting of geographic distribution of project activities and impacts. In collaboration with the GIS specialist capacity building of line agency staff to utilize GIS and MIS technology will be a core responsibility. The assignment requires a minimum of 10 years of experience in geo-information management. The expert will have advanced skills in database management, mapping, and general computer programming. Clearly understanding of geography of the provinces surrounding Tonle Sap Great Lake would be beneficial.

8. MIS specialist (national, 20 person-months)

The GIS specialist will assist the EA and IA to establish data management systems as the core of the Project Performance Management System (PPMS) to enable effective monitoring and evaluation of project activities and impacts. The specialist will assist the EA and IA to strengthen the capacity for data management and M&E building on any existing information systems currently in use. The Specialist will assist Ea, IA and consultants to establish effective reporting of project activities and impacts, including establishing and supervising maintenance of the project web site. In collaboration with the GIS specialist capacity building of line agency staff to utilize GIS and MIS technology will be a core responsibility. The assignment requires a minimum of 10 years of experience. The specialist will have extensive experience in designing data management systems which are the core of the Project Performance Management System (PPMS) and in making reports. Highly computer literacy will be required.

9. Procurement Specialist (3 positions, 6 months for a total of 18 person months)

Together with the International procurement specialist and the rural infrastructure engineers (Irrigation and Roads), the specialist will: (i) assist the EA and IAs to prepare standard bidding documents, call for proposals, conduct evaluation of bids, and contract negotiations following the agreed procurement manuals and the Project Administration Manual; (ii) prepare training needs assessment of participating line agencies; and (iii) organize training sessions on Standard operating Procedures and Procurement Manuals as required. The assignment requires a minimum of 10 years of experience in procurement work. The specialist should have experience in bidding and conduct of training on Standards Operating Procedures and Procurement Manuals. Understanding of ADB's Guidelines on the Procurement would be beneficial.

10. Quality Assurance Specialist (3 positions, 20 months for a total of 60 person months)

Together with the International Quality Assurance Specialist and the rural infrastructure engineers (Irrigation and Roads), the specialist will: (i) assist the EA and IAs to undertake construction supervision, final inspection and certification of works implemented under components 1a, 1b, and 1c.; (ii) prepare training needs assessment of participating line agencies; (iii) organize training sessions on appropriate quality assurance and inspection procedures; including participatory monitoring of works by communities and beneficiaries; and (iv) conduct supervision inspections during construction and final inspections of works with IA staff, contractors and beneficiaries to confirm quality standards have been achieved. The assignment requires a professional qualification in an engineering discipline and a minimum of 10 Appendix 5 Page 8 years experience in Quality Control (QC). The expert should have experience in evaluation of quality of rural roads and small-scale irrigations and infrastructures in the rural communities. Experience in conduct of training and assessment of training needs are also required.

11. Accountant (3 positions, 32 months for a total of 96 person months)

The accountant will assist the Provincial Department of Local Administration consolidate the Commune Council financial records for use of the Community Development Fund. In addition the accountant will assist line department staff in reconciliation of second generation imprest accounts and preparation of replenishment requests/withdrawal applications as required by ADB. The assignment requires a minimum of 5 years experience in accounting. The expert should have a recognized qualification in accounting and should be computer literate.

C. Outputs and Deliverables:

(i) The Consultants will submit an Inception Report (in 30 copies) to the Ea, IA and ADB within 6 weeks of mobilizing in Phnom Penh. The report will outline: (i) initial finding and issues, including proposed format of Commune Development reports; (ii) a detailed work program for all tasks assigned; (iii) assignment schedules for consulting team; and (iv) proposed agenda for Inception Workshop and mission.

(ii) The consultants will provide quarterly progress reports (in 20 copies) to the EA, IAs and ADB providing summaries the major problems and issues affecting or likely to affect implementation progress, compliance with covenants, and achievement of immediate development objectives. Recommend actions to overcome these problems and issues (e.g., changes in scope, changes in implementation arrangements, and reallocation of loan proceeds).

(iii) Annual reports (in 30 copies in English) to the EA, IAs and ADB will summarize the major achievements during the reporting period and the detailed work program for the following year. The Annual report will be translated into Khmer language and made available in 30 copies once the Annual Work plan and Budget is approved.

(iv) A mid term review report will be submitted in (30 copies) at the end of month 30 after commencement of services. This report is required for the ADB’s Mid-term evaluation and will summarize achievements, unresolved issues, compliance with loan covenants and, where necessary, propose revisions to the work program till project completion, and fund reallocations. The mid term review report will be translated into Khmer language and made available in 30 copies.

(v) A Completion Report will be submitted (30 copies) about 3 months prior to project closure. The Completion Report will provide a comprehensive assessment of achievement of project objectives, post-review of the approach and design, physical progress and an assessment of problems and issues, possible solutions, lessons to be drawn form the project implementation to guide future investments in rural development, and an updated economic and financial assessment of the investment project.

(vi) The Consultants will coordinate with the EA and IAs to produce Commune Development reports, for each participating community, summarizing the socio-economic conditions in the commune and identifying the activities to be supported by the project. Initial draft Appendix 5 Page 9

reports will be prepared within 6 months of commencing consulting services and updated annually during preparation of the annual work plan and budget for AD concurrence. The commune development reports will be translated into Khmer language and five copies of the communes own report made available to each participating commune.

(vii) Other technical notes, working papers and briefing notes as required for information, discussion and effective implementation of the project.

(viii) The consultants will assist the EA and IA to establish and maintain a project web-site providing up to date information on project progress.

D. Facilities and Counterpart staff

Consultants will be provided office accommodation within the office complexes of EA, IAs and participating provincial departments of the EA and IAs. The Consultants should satisfy themselves with the proposed arrangements during preparation of the technical proposals.

Counterpart staff will be provided by the EA and IA – the consultants should discuss the required expertise with the EA and IA during the pre-proposal conference. Appendix 5 Page 10

RECRUITING CONSULTING FIRMS FOR LOANS (QCBS, QBS, FBS and LCS) EXECUTING AGENCY AD B

Fact-finding mission assesses EA procurement capacity and Prepares a procurement plan hels prepare a procument plan

Advertises project in newspapers, etc. User division lists project in ADBBO

Discusses TORTOR developed Appraisal mission discusses TOR with the EA

Receives EOIs and prepares long list of consultants User division provides list of firms from DACON

Conducts CSC; submits documents (signed CSC meeting User division reviews EA submission; prepares checklist; minutes; long list; short-listing criteria; narrative evaluation SUBMISSION 1 submits its evaluation to COSO; and requests for an informal criteria; short-list; draft RFP with TOR, Data Sheet, meeting Summary and Personnel Evaluation sheets and draft contract; and draft CRAM sheet) t

COSO checks user division's submission for completeness and schedules the informal meeting

COSO and user division officers meet and jointly complete the checklist and then sign it

COSO Director approves completed checklist, and sends a copy to user division

Issues RFP to short-listed firms User division informs EA of ADB approval.

Informs user division of RFP issuance User division informs COSO to post short-list on ADB website.

Evaluates technical proposals; submits technical evaluation SUBMISSION 2 User division reviews EA submission, prepares checklist, report (minutes of EV meeting[s], summary & personnel submits to COSO, and requests for an informal meeting evaluation sheets) to user division COSO checks user division's submission for completeness and schedules the informal meeting

COSO and user division officers meet and jointly complete the checklist and then sign it

COSO Director approves completed checklist, and sends a copy to user division

If QCBS, evaluates financial proposal of technically qualified firms; if FBS, evaluates financial proposal of firm with highest technical score and bid within maximum budget; if LCS, User division informs EA of ADB approval. evaluates financial proposal of technically qualified firm with lowest f

For QCBS, FBS and LCS: Submits financial evaluation SUBMISSION 3 User division reviews documents and submits to COSO report (minutes of CSC meeting[s], and overall ranking) to user division For QBS: go to next step User division reviews EA submission, prepares checklist, submits to COSO, and requests for an informal meeting

COSO checks user division's submission for completeness and schedules the informal meeting

COSO and user division officers meet and jointly complete the checklist and then sign it

COSO Director approves completed checklist, and sends a copy to user division Invites first-ranked firm and ADB observer, if required, to contract negotiations User division informs EA of ADB approval

Negotiates contract

Forwards draft negotiated contract and minutes to user SUBMISSION 4 User division approves draft negotiated contract and informs division for approval EA of ADB approval

Finalizes and signs contract with the winning firm

User division retains copy of contract and informs COSO to Provides information for posting on ADB website and sends post contract information on ADB website copies of signed contract to user division and the winning firm

Sends notice to proceed to winning firm

Advises unsuccessful firms

Appendix 5 Page 11

RECRUITING INDIVIDUAL CONSULTANTS FOR LOAN/GRANT PROJECT ASSIGNMENTS

CONSULTANT EXECUTING AGENCY ADB

Fact-finding mission assesses Prepares a procurement plan EA and helps prepare a procurment plan

User division lists project in Advertises project in newspapers, etc. ADBBO

User division provides list of Receives EOIs; if desired, asks ADB list of qualified Submits EOI qualified candidates from DICON, candidates from DICON if requested

Prepares short lilst (at least 3) and ranks candidtates on the list

Checks availability of first-ranked candidate on a Confirms availability noncommittal inquiry

If stated in procurement plan, submits candidates' names, User division approves EA's qualifications, and draft contract to ADB documents

User division checks to ensure Negotiates and signs Negotiates with first-ranked candidate, finalizes, and signs that candidate is not sanctioned contract contract by ADB

User division retains copy of Sends copy of signed contract to ADB contract

Sends copy of signed contract and notice to proceed to Starts work consultant

Appendix 5 Page 12

SUBMISSION 1 REPORT ON SHORTLISTING OF CONSULTING FIRMS (QCBS Method)

Loan Number/Country/Project Title :

Consulting Package Number ::

Name of Executing Agency ::

Report Submitted by ::

Name : :

Signature : :

Position : :

Date :

1. The CSC Members [List names of members according to ministry/department/agency and designation in a table format]

2. Type of Proposal: FTP/STP/BTP [Select type of proposal used]

3. Budget for Consulting Services Contract: US$ ______

4 Comments on draft RFP including Data Sheet, TOR, and draft Contract: [Prepare TOR and complete Data Sheet (Form 8.1). EAs are advised to avoid making modifications to the standard documentation unless absolutely necessary due to government policy, e.g. applicable law or arbitral procedure. Any proposed deviations from, and changes to, the standard ADB documents are highlighted in this section and a detailed justification must be provided for each such change.]

5. Criteria for Evaluating Technical Proposals [Prepare appropriate summary evaluation sheets3 (Forms: EV 1.1/EV 1.2/EV 1.3), personnel evaluation sheets4 (Form EV 3.1) and the narrative evaluation criteria. Provide weights for each criterion in the summary evaluation sheet and detailed information on how to apply these weights and, if necessary, to distribute them to sub-criteria in narrative evaluation criteria.]

6. Shortlisting Criteria [Apply the following criteria for the shortlisting of the consulting firms for the loan project: (i) Experience of the firm with projects of similar nature: (Insert further appropriate details) (ii) Experience of the firm in the project country or in the region: (Insert further appropriate details) (iii) Others: (Include other shortlisting criteria and provide appropriate details)]

3 Appropriate templates for the 3 types of proposals are: (i) FTP–Form EV 1.1, (ii) STP–Form EV 1.2, and (iii) BTP–Form EV 1.3. 4 The Form EV 3.1 is the same for all types of QCBS proposals. Appendix 5 Page 13

7. Proposed Shortlist of Consultants [List names of Consulting Firms, and their country of incorporation]

8. Comments on Shortlisted Firms [Reasons for including more than one firm per country, if it is the case]

9. Proposed Schedule of Recruitment Activities5 Date (i) CSC shortlisting meeting (ii) SUBMISSION 1 submitted to ADB (iii) Receipt of ADB’s approval of SUBMISSION 1 (iv) Issuance of RFP (v) Deadline for receipt of Proposals (vi) CSC technical proposal evaluation (vii) SUBMISSION 2 submitted to ADB (viii) Receipt of ADB’s approval of SUBMISSION 2 (ix) Public opening of financial proposals (x) CSC financial evaluation and ranking of Proposals (xi) SUBMISSION 3 submitted to ADB (xii) Receipt of ADB’s approval of SUBMISSION 3 (xiii) Commencement of contract negotiations (xiv) SUBMISSION 4 submitted to ADB (xv) Receipt of ADB’s approval of SUBMISSION 4 (xvi) Signing of Contract (xvii) SUBMISSION 5 submitted to ADB (xviii) Notice to proceed and mobilization (xix) Commencement of services (xx) Completion of services

10. Consultant Recruitment Activity Monitoring (CRAM) [Update and confirm schedule in CRAM]

We request ADB’s approval of our shortlist of consulting firms, the criteria for evaluation of technical proposals, the draft RFP, and the draft contract.

Attachments:

Attachment 1 Minutes of CSC meeting Attachment 2 Budget for consulting services including details of provisional sum and contingency Attachment 3 Draft RFP with TOR, Data Sheet (Form EV 8.1), Summary Evaluation Sheet6 (Forms: EV 2.1/EV 2.2/EV 2.3), Personnel Evaluation Sheets (Form EV 3.2), and Draft Contract Attachment 4 Narrative Technical Evaluation Criteria Attachment 5 Updated CRAM

5 Lead time for each activity could be based on the CRAM. 6 Appropriate templates for the 3 types of proposals are: (i) FTP – Form EV 1.1, (ii) STP – Form EV 1.2, and (iii) BTP – Form EV 1.3. Appendix 5 Page 14

SUBMISSION 2 REPORT ON EVALUATION OF TECHNICAL PROPOSALS (QCBS Method)

Loan Number/Country/Project Title :

Consulting Package Number ::

Name of Executing Agency ::

Report Submitted by ::

Name : :

Signature : :

Position : :

Date :

1. The CSC Members [List names of members according to ministry/department/agency and designation in a table format]

2. Result of CSC Evaluation of Technical Proposals [List name of consultant, country, and score in a table format]

3. Narrative Comments on the Technical Proposals: - SAMPLE, NEXT PAGE [CSC’s comment on the strengths and weaknesses of each technical proposal including comments on personnel evaluated as “below average.”]

4 Proposed Date of Public Opening of Financial Proposals: [Indicate the location and date of public opening.]

5. Consultant Recruitment Activity Monitoring (CRAM) [Update CRAM. Indicate reasons for any delay and remedial actions taken.]

We request ADB’s approval of our evaluation of the technical proposals. We will then publicly open the financial proposals of the technically qualified consultants for financial evaluation and ranking.

Attachments: Attachment 1 Summary of Evaluation Sheet7 (Forms EV1.1/ EV1.2/ EV 1.3) [Provide the appropriate evaluation sheet for the type of proposal selected] Attachment 2 Personnel Evaluation Sheets8 (Form EV 3.1) Attachment 5 Updated CRAM

7 The appropriate templates for the 3 types of proposals are: (i) FTP–Form EV 1.1, (ii) STP–Form EV 1.2, and (iii) BTP–Form EV 1.3. 8 The Form EV 3.1 is the same for all types of QCBS proposals. Appendix 5 Page 15

SAMPLE OF NARRATIVE COMMENTS ON THE TECHNICAL PROPOSALS

FIRM NAME: COMPANY ABC

Experiences in Similar Projects completed in the last 10 years (50 points)

The Consultant has more than 5 projects at cost of.at least US$ 1.5 mil each completed in construction supervision, and more than 5 projects at cost of at least US$ 0.5 mil each completed in detail designs resulting in an overall rating of 100 percent, and a score of 50 points.

Experiences in Similar Geographical Area completed in the last 10 years (50 points)

The Consultant has 2 projects completed in Cambodia, more than 4 projects completed in ASEAN, and more than 4 projects completed in Oceana and Asian Region with the same geographical latitude, resulting in an overall rating of 90 percent, and a score of 46 points.

Understanding of Objectives (50 points)

For general understanding the Consultant has demonstrated they have understood the scope and requirements of the project and was assessed a rating of 40 percent with a score of 20 points.

For coverage of the contents the Consultant demonstrates excellent technical descriptions of each area required in the ToR in their Proposal and it carries out the appraisal of current highway feasibility studies, RDMS survey and investigation on conditions of the existing roads to be maintained, and proposes very good engineering design concepts of road and cross border facilities, very good construction supervision methodologies as the Engineers Representative, social and environmental assessment etc, the Consultant expressed an excellent level of understanding in each project area resulting in a rating of 40 percent and a score of 20 points.

Information regarding the site visit: the Consultant demonstrates its critical understanding the site including site. visit and condition survey including quarry information resulting in a rating of 20 percent and a score of 10 points.

For Understanding of Objectives overall the consultant was ranked excellent at 100 percent scoring 50 points.

Quality of Methodology (65 points)

The Consultant clearly presents the approach and methodology in sufficient details for identification of the score, highway feasibility studies, investigation and detailed engineering design, bidding document, as well as resettlement and environment and construction supervision. The analysis and proposal made by the Consultant showed that for this factor the Consultant obtained a very good rating. As a result the Consultant was assessed a rating of 90% and a score of 59 points. .

The Relationship between the work program and the approach and methodology showed by the Consultant was considered very good.

Appendix 5 Page 16

Innovativeness and Comments on TOR (50 points)

The Consultant had comments on the project sensitive areas and risks that the project should take into consideration to avoid the possible project implementation.delay.and offer good suggestions, and was assessed a good rating of 90% with a score of 45 points.

Work Program (60 points)

The Consultant's work program showed logical sequences with many good points, especially, in break up of social project benefit and monitoring assignment and was assessed excellent resulting in a rating of 100% and a score of 60 points.

Person-month Requirement (45 points)

The personnel schedule proposed by the Consultant was assessed in relation to the work program and. estimates resulted in excellent rating of 100 percent and a score of 45 points.

Counterpart Personnel and Facilities (15 points)

The Consultant expressed the reasonableness and completeness of the requirement as well as very good understanding of the local factor and was given a very good rating of 90% and a score of 14 points.

Proposal Presentation (15 points)

The Consultant expressed the clarity and completeness of information in the proposal as requested in the Letter of Invitation and Request for Proposal and was. assessed at excellent rating of 100% and a. score of 15 points.

Company ABC Personnel (600 points)

The Consultant proposed the full number of personnel for the positions request in TOR.

Generally the CVs of personnel for the positions provided the full information as requested in RFP.

The quality of personnel for the. positions in general obtained an above average to very good ratings.

Total score for Company ABC Consultant's personnel is 467 points. (Refer to the Personnel Evaluation Sheet For Full Technical Proposals).

The total overall score for the Technical Proposal of Company ABC Consulting firm is 911 points. (Refer to the Summary. Evaluation Sheet For Full Technical Proposals).

Appendix 5 Page 17

SUBMISSION 3 REPORT ON FINANCIAL EVALUATION AND RANKING OF PROPOSALS (QCBS Method)

Loan Number/Country/Project Title :

Consulting Package Number ::

Name of Executing Agency ::

Report Submitted by ::

Name : :

Signature : :

Position : :

Date :

1. The CSC Members [List names of members according to ministry/department/agency and designation in a table format]

2. Evaluation [The calculation sheets9 used for the evaluation of financial proposals will have to be submitted to ADB upon request; list name of consultant, country, score and rank on a table format; provide narrative comments on adjustments/corrections made to the financial proposals of the firms.]

3. Consultant Recruitment Activity Monitoring (CRAM) [Update CRAM. Indicate reasons for any delay and remedial actions taken.]

We request ADB’s approval to have contract negotiations with [insert name of first- ranked firm], the first-ranked evaluated firm, commencing on [insert date] at [insert location].

Attachments: Attachment 1 Minutes of CSC meeting on evaluation Attachment 2 Record of attendance at public opening (Form EV 4.1) Attachment 3 Record of proposal total prices (Form EV 4.2) Attachment 4 Completed Summary Evaluation Sheet of financial proposals of individual firms (Form EV 5) Attachment 5 Completed Summary Evaluation Sheet for financial proposals for all firms (Forms EV 6 and EV 6.1) Attachment 6 Completed Summary of Ranking Sheet (Form EV 7) Attachment 7 Updated CRAM

9 ADB will provide templates of calculation sheets upon request. Appendix 5 Page 18

FORM EV 4.1 ASIAN DEVELOPMENT BANK RECORD OF ATTENDANCE AT OPENING OF FINANCIAL PROPOSALS (QCBS)

[Loan No.-Country: Title] CONSULTING FIRM

Name of Firm Nationality Representative’s Name Designation Signature

GOVERNMENT STAFF

Name of Staff Ministry/Department Designation Signature

Venue: Date: Time:

Form EV - 4.1 (Jan 2006) Appendix 5 Page 19

FORM EV 4.2 ASIAN DEVELOPMENT BANK RECORD OF TECHNICAL SCORE AND PROPOSAL PRICES AT OPENING OF FINANCIAL PROPOSALS

[Loan No.-Country: Title]

Signature of Technical Remarks Name of Firm Nationality Currency Total Price Consultant’s Score Representative

Firm A Australia 880 A$ 1,213.00

Firm B USA 870 US$ 920.00

Firm C UKG 800 UK₤ 508.00

Venue: Date: Time:

Prepared by: Position: Signature:

Form EV 4.2 (Jan 2006)

Appendix 5 Page 20

FORM EV 5

ASIAN DEVELOPMENT BANK SUMMARY EVALUATION SHEET OF INDIVIDUAL FIRM’S FINANCIAL PROPOSAL (IN US$)

[Loan No.-Country: Title] [Name of Firm]

Competitive Components10

Remuneration 600,000 Out-of-Pocket Expenses 170,000 Discount (%) Applied to Rem and OPE ______0 Sub-Total (Evaluated Total Price) 770,000

Non-Competitive Components11

Provisional Sum 120,000 Contingencies _80,000 Sub-Total 200,000

Adjusted Total Price 970,000

Prepared by:

10 After adjustments of errors, omissions and discounts. 11 As per requirements of the RFP. Appendix 5 Page 21

FORM EV 6 ASIAN DEVELOPMENT BANK SUMMARY EVALUATION SHEET OF FINANCIAL PROPOSALS

[Loan No.-Country: Title] Adjusted Price at Opening of Financial Proposals (US$) 12 Provisional Evaluated Adjustments total 13 Name of Firm Sum and Total 15 Exchange US$ (US$) Price 14 Currency Amount 16 Contingencies Price Rate Equivalent (US$)

1 3 3 4 = 2X3 5 6 = 4+5 7 8=6-7

Firm A A$ 1,231,000 0.75 910,000 +60,000 970,000 (200,000) 770,000

Firm B US$ 920,000 - 920,000 - 920,000 (200,000) 720,000

Firm C UK₤ 508,000 1.83 950,000 (200,000) 750,000

Prepared by: Position

Signature: Date:

12 Adjustment – includes corrections for the mathematical errors, adjustments for omissions and discounts. See details in Form EV 6.1. 13 As for RFP requirement. 14 Evaluated Totral Price – adjusted total price less provisional sum and contingency. 15 Currency – currency of submission. 16 Exchange Rate – the rate from the source indicated in the Data Sheet of the RFP. Appendix 5 Page 22

FORM EV 6.1 ASIAN DEVELOPMENT BANK FINANCIAL PROPOSAL PRICE ADJUSTMENTS

[Loan No.-Country: Title]

Firm A US$ US$ Bidder’s financial proposal price 910,000 Adjustments: (1) Increase in provisional sum as per 50,000 RFP requirement (2) Increase in contingency as per RFP 10,000 _60,000 requirement

Adjusted Total Price 970,000

Firm B

No adjustment

US$ US$ Firm C

Bidder’s financial proposal price 930,000 Adjustments: (1) Increase in international consultancy 20,000 inputs for expertise A by 1 person month _20,000 at 20,000 person-month as per technical proposal 950,000

Note: Provide details of adjustment made on each of the financial proposal prices as per above format.

Appendix 5 Page 23

FORM EV 7 ASIAN DEVELOPMENT BANK SUMMARY PROPOSAL RANKING SHEET

[Loan No.-Country: Title] TECHNICAL EVALUATION FINANCIAL EVALUATION COMBINED Firm FIRM NAME Technical Technical Financial Price Total RANKING Technical Proposed Evaluated Price Score Wt. Score Wt. Evaluation Points Price Total Price Points Points Factor Points Factor Points (US$)

1 2 3=1x2 4 5 6 7 8=6x7 9=3+8

Firm A 880 0.8 704.00 910,000.00 $770,000.00 935 0.2 187.00 891.00 2

Firm B 870 0.8 696.00 920,000.00 $720,000.00 1000 0.2 200.00 896.00 1

Firm C 800 0.8 640.00 930,000.00 $750,000.00 960 0.2 192.00 832.00 3

Prepared by: Position:

Signature: Date:

Appendix 5 Page 24

SUBMISSION 4 DRAFT NEGOTIATED CONTRACT (QCBS Method)

Loan Number/Country/Project Title :

Consulting Package Number ::

Name of Executing Agency ::

Report Submitted by ::

Name : :

Signature : :

Position : :

Date :

1. Comments on Contract Negotiations [Any changes to ADB’s standard contract should be highlighted and explained with adequate justification. In case of unsuccessful negotiations, ADB is to be informed in detail on the reasons for the failure of negotiations. ADB approval must be requested before the next-ranked firm can be invited for contract negotiations.]

2. Consultant Recruitment Activity Monitoring (CRAM) [Update CRAM. Indicate reasons for any delay and remedial actions taken.]

We request ADB’s approval of the negotiated contract with the successful consulting firm [name of firm].

Attachments: Attachment 1 Minutes of Contract Negotiations (sample on next page) Attachment 2 Draft negotiated contract with appendixes A, B, C and D Attachment 3 Updated CRAM

Appendix 5 SM Page 25

FORM CN-MIN (QCBS)

[INSERT NAME OF EXECUTING AGENCY IN CHARGE OF NEGOTIATIONS]

MINUTES OF CONTRACT NEGOTIATIONS WITH E. (CONSULTING FIRM)

in association with (Associate Firm) (Date) Quality- and Cost-Based Selection (QCBS)

SUBJECT : Loan No.-Country and Title Irrigation Management Transfer Project

PRESENT : For the [Name of Executing Agency]

[Names and Designations of Government Representatives]

For the Consultant

[Name and Designations of Consultant’s Representatives]

Observers (if any)

[Name and Designation of Observers]

1. Opening remarks

On behalf of [name of Executing Agency (EA)], [Name of Chief Negotiator] welcomed the Consultants and the Government’s representatives to the contract negotiations. He/She then proposed an agenda, which was accepted.

2. Submission of written authorization

On behalf of the Consultant, [name of representative] expressed (his/her) thanks for being invited to contract negotiations. The Representative submitted an authorization letter to negotiate and sign a contract with [name of EA] on behalf of [name of consulting firm].

3. Scope of work and terms of reference

The terms of reference (TOR) were reviewed and agreed with the following clarifications: Appendix 5 Page 26

(i) (ii) (iii)

4. Work program and personnel schedule

The work program and personnel schedule were reviewed and agreed with the following minor adjustments:

(i) (ii) (iii)

It was agreed that the consultant services will start on [commencement date] and the assignment will be completed upon submission of the final report, on [completion date].

The complete reporting schedule was agreed as follows:

(i) Inception Report [date] (ii) Mid-Term Report [date] (iii) Draft Final Report [date] (iv) Final Report [date]

5. Personnel

The Consultant confirmed the availability of all experts in the team for their respective assignments in accordance with the staffing schedule.

6. Counterpart support

[EA] confirmed to provide the following on a no-cost basis to the consultant’s team:

[Insert here all items agreed upon to be provided by the EA to the Consultant] (i) (ii) (iii)

All the counterpart support, facilities and information shown above would be provided by the Government in kind and would be free of charge to the Consultant.

7. Equipment

The following equipment will be purchased by the Consultant using the budget specified in the contract:

[Insert here all equipment agreed upon to be procured by the Consultant for the project] (i) (ii) (iii)

Appendix 5 Page 27

All the equipment shall be used by the Consultant for the entire duration of the assignment and would be handed over to the EA upon completion of the assignment.

8. Financial terms

The EA and the Consultant reviewed the Consultant’s financial proposal, including the adjustments made by the EA for computation and miscellaneous errors, for currency conversions and to ensure consistency with the Consultant’s technical proposal. Some minor adjustments were agreed during the negotiations. Details of financial terms appear in Appendix C of the contract.

In accordance with Section 7.02 of the General Conditions of the Contract, the Consultant will permit the duly authorized representatives of the EA and if so required, ADB, including auditors selected by the EA and ADB, to audit the Consultant’s accounts and records relating to the payments made under this Contract. Where an audit identifies that the Consultant, during negotiations or implementation of the project, has misled the EA and/or ADB or contravened the principles stated in ADB’s Guidelines on the Use of Consultants (Guidelines), the EA and/or ADB may sanction the Consultant from participating in any future consulting services assignments financed by ADB.

9. Anti-corruption

In accordance with the prevailing Government regulations and the established policy in ADB’s Anticorruption Policy and ADB’s Guidelines, the Government, the Consultant and ADB must observe the highest standards of ethics during the execution of this project. No fees, gratuities, rebates, gifts, commissions or payments other than those shown in the contract are to be given or received in connection with the contract execution.

10. Consultant's contract

The draft contract prepared by the [EA] was reviewed and agreed upon. A signed copy of the contract is attached to these minutes. The EA and the Consultant will execute the contract upon receiving approval by Government authorities concerned by ADB.

[11. The Observer

The Observer, (if any) is signing these minutes in his or her capacity as observer to the negotiations only, and is not a party to the contract.]

12. Performance evaluation

The method that the [EA] would use for evaluating the performance of the Consultant was explained and the Consultant agreed to undergo this evaluation.

13. Contract administration

Detailed procedures for processing payments and contract administration are specified in the contract.

Appendix 5 Page 28

Signed this ______day of (month) 200_

FOR THE FOR THE CONSULTANT [EXECUTING AGENCY]

Consultant’s Representative Chief Negotiator

THE OBSERVER [if any]

[Name of Observer]

Appendix 5 Page 29

SUBMISSION 5 SIGNED CONTRACT (QCBS Method)

Loan Number/Country/Project Title :

Consulting Package Number ::

Name of Executing Agency ::

Report Submitted by ::

Name : :

Signature : :

Position : :

Date :

Consultant Recruitment Activity Monitoring (CRAM) [Update CRAM. Indicate reasons for any delay and remedial actions taken.]

We are submitting a copy of the signed contract with the consulting firm for ADB’s record [name of firm, country].

Attachments: Attachment 1 Signed contract with appendixes A, B, C, and D Attachment 2 Updated CRAM

Appendix 5 Page 30

SUBMISSION 1 PROPOSAL FOR ENGAGEMENT OF CONSULTANT (Individual Consultant)

Loan Number/Country/Project Title :

Consulting Package Number ::

Name of Executing Agency ::

Report Submitted by ::

Name : :

Signature : :

Position : :

Date :

1. Position [Indicate expertise required]

2. Budget for Consulting Services Contract: US$ ______

3. Dates: [Indicate the commencement and completion date.]

4. Inputs: [Indicate calendar days or person month.]

5. Type of Assignment:

[Indicate whether continuous or intermittent]

6. Proposed Short List (for competitive selection) / Name of Consultant (for direct selection): [List name of consultants (by country) for international consultants]

7. Evaluation: [List evaluation criteria and complete FORM 9.1]

We request ADB’s approval to engage the above individual consultant.

Attachments: Attachment 1 Curriculum Vitae (CV) of candidate Attachment 2 TOR Attachment 3 Details of budget Attachment 4 Individual consultant’s evaluation sheet Attachment 5 Report on non-committal inquiry Attachment 6 Draft Contract

Additional Attachment (if applicable) Attachment 7 Minutes of CSC Meeting Attachment 8 Approval for direct selection Appendix 5 Page 31

INDIVIDUAL CONSULTANTS EVALUATION SHEET

Project Title: ______

Expertise required: ______Date: ______

GENERAL QUALIFICATION (A) Project Related Experience (B) Regional Experience & Others C Overall NAME OF 20% 70% 10% Rating NATIONALITY Ranking (1) (2) (3) CONSULTANT Rating Rating Rating (1) + (2) + (3) A x Rating B x Rating C x Rating

Name and signature of Rater: Date:

TECHNICAL ASSESSMENT:

1. GENERAL QUALIFICATIONS (20%) 3. REGIONAL EXPERIENCE AND OTHERS (10%)

This includes academic attainment, professional attainment, publications, etc. In This section covers the experts experience in the project country/region or similar cultural normal cases, the attainment of a Bachelor’s Degree should be sufficient qualification and climatic environment or any other criterion decided prior to the evaluation as well as for the award of maximum points. Only in rare special case should higher proficiency in written and oral English (and the language of the project country if relevant). attainments (M.Sc., Ph.D.) be required to gain maximum points. (Ensure that the M.Sc. and Ph.D. are actually in the area of expertise being sought.) RATING: 2. PROJECT RELATED EXPERIENCE (70%) Excellent = 90 - 100% This should be measured by the relevance of project related experience and not the Good = 80 - 89% quality of projects undertaken in the past ten years. The expert with the greatest Average = 70 - 79% number of projects should not automatically receive a maximum points. It should be Below Average = 0 - 69% decided prior to the evaluation, exactly how many relevant projects for which the expert provided same input as required for the present services (or preferably what length of time), would provide necessary depth of experience required,e.g.1 project, 3 projects, 2 years, 5 years, etc.

ADB Form No. 237/01 Revised October 2002

Appendix 5 Page 32

SUBMISSION 2 SIGNED CONTRACT (Individual Consultant)

Loan Number/Country/Project Title :

Consulting Package Number ::

Name of Executing Agency ::

Report Submitted by ::

Name : :

Signature : :

Position : :

Date :

We are submitting a copy of the signed contract with the individual consultant [name].

Attachment: Attachment 1 Signed Contract

PROCUREMENT 24

39. Goods and works financed partly or wholly by ADB will be procured in accordance with ADB’s Procurement Guidelines (2007, as amended from time to time). The methods of procurement are subject to, among other things, the detailed arrangements and threshold values set forth in the Procurement Plan. The methods of procurement or threshold values may only be modified with the prior agreement of ADB, and modifications must be set out in updates to the Procurement Plan. All contracts procured under the national competitive bidding (NCB) procedures will be subject to prior review by ADB unless otherwise agreed between the Government and ADB and set forth in the Procurement Plan.

40. Equipment to be procured under the Project will consist primarily of office and training equipment, bicycles, motorbikes, utility vehicles, and minor construction equipment and tools. No contract package is expected to exceed $500,000 and international competitive bidding is not envisaged under the Project. All procurement contracts for office equipment over $5,000 and vehicles will be processed and awarded by the PMO.

41. No works contract packages are expected to exceed $100,000. Works contracts under Component 1b, 1c, and 2 will be awarded by IAs on the basis of NCB. Works contracts under Components 1b, 1c, and 2 will be processed and awarded by the respective provincial departments.

42. Individual works contracts under Component 1a using the CDF will not exceed $20,000 and may be awarded to contractors selected through shopping or direct contracting. Procurement and contract management procedures developed under Seila will be used.17 Works contracts under the CDF may also be awarded to community groups following procedures for community participation in procurement in accordance with ADB’s Procurement Guidelines. The first civil works contract in each province will be subject to ADB approval. The 18 PLAU will maintain documents for review by ADB. Works contracts under Component 1a will be processed and awarded by respective commune councils. The financial management assessment is in Supplementary Appendix E of the RRP.

43. Civil Works. In each province, the responsible IA will submit the first draft English language version of the procurement documents for the first works contract to ADB for review and approval regardless of the estimated contract amount. For subsequent contracts, ADB will review the documents after the award. ADB-approved procurement documents will be used as a model for all succeeding NCB contracts financed by ADB for the Project. For all contracts, ADB will review the bid evaluation report and proposal for award of contract on a prior review basis.

44. Community Participation in Procurement. The Government may use community participation in procurement for Works contracts for Component 1a, 1b and 1c, up to a maximum of $20,000 per subproject and a maximum of $75,000 per participating commune over the life of the Project, in accordance with the agreed procedures set out in the Procurement Plan and in para. 9, Schedule 5 of the Financing Agreement.

45. The procedures to be followed for NCB, for goods and works, will be those set forth for the NCB method in the Government's Subdecree No. 14 of 26 February 2007 (Subdecree on

17National Committee for Support to Communes/Sangkats. 2005. Commune/Sangkat Fund Project Implementation Manual. 18 These include the commune development plan, bid invitation letters, bid opening statements, bid evaluation reports or approval documents, and signed contracts between the commune council and contractors, where applicable. 25

Promulgating Standard Operating Procedures) [refer to the Government's Standard Operating Procedures, Procurement Manual Volumes I and II] with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the ADB Procurement Guidelines.

(i) Application. Contract packages subject to NCB procedures will be those identified as such in the project procurement plan. Any changes to the mode of procurement from those provided in the procurement plan shall be made through updating of the procurement plan, and only with prior approval of ADB. (ii) Eligibility. Bidders shall not be declared ineligible or prohibited from bidding on the basis of barring procedures or sanction lists, except individuals and firms sanctioned by ADB, without prior approval of ADB. (iii) Anticorruption. Definition of the terms “corrupt practice”, “fraudulent practice”, “collusive practice”, and “coercive practice shall reflect the harmonized definitions given in the ADB’s Anticorruption Policy (1998, as amended to date). (iv) Rejection of all Bids and Rebidding. Bids shall not be rejected and new bids solicited without ADB’s prior concurrence. (v) Bidding Documents. The bidding documents provided in the Beneficiary’s Procurement Manual shall be used to the extent possible. The first draft English language version of the procurement documents shall be submitted for ADB review and approval, regardless of the estimated contract amount, in accordance with agreed review procedures (post and prior review). The ADB-approved procurement documents will then be used as a model for all procurement finaced by ADB for the project, and need not be subjected to further review unless specified in the procurement plan. (vi.) Member Country Restrictions. Bidders must be nationals of member countries of ADB, and offered goods and works must be produced in and supplied from member countries of ADB.

46. Project Website. The EA is to ensure that all procurement for the project are disclosed in the project website, once the website is available. The following details should be indicated in the website

• List of participating bidders; • Name of winning bidder; • Basic details on bidding procedures adopted; • Amount of contract awarded; • List of goods and/or services purchased; • Intended and actual utilization of Loan and Grant proceeds under each contract

26

PROCUREMENT PLAN

Project Information Country Cambodia Name of Borrower Kingdom of Cambodia Project Name Tonle Sap Lowlands Rural Development Project Loan or TA Reference 2376 Date of Effectiveness 5 November 2008 Amount ($ total from all financiers): $20,000,000 Of which Committed ($) Tbd Executing Agency Ministry of Water Resources and Meteorology Approval Date of Original Procurement Plan 25 October 2007 Approval of Most Recent Procurement Plan 25 October 2007 Publication for Local Advertisementa Cambodia Daily, Rasmei Kampuchea Period Covered by this Plan 18 months TA = technical assistance, tbd = to be determined. a General procurement notice, invitations to pre-qualify and to bid, calls for expressions of interest.

Procurement Thresholds, Goods & Related Services, Works and Supply & Install Procurement Methods To be used above/below ($) NCB works Less than $300,000 NCB goods Less than $100,000 Shopping works Less than $40,000 Shopping goods Less than $20,000 Community participation Up to $20,000 NCB = national competitive bidding.

Procurement Thresholds, Consultants Services Procurement Methods To be used above/below ($) Quality and cost-based selection At least $200,000 Independent consultant selection Less than $200,000

List of Contract Packages in Excess of $100,000, Goods, Works and Consulting Services Ref Contract Estimated Procurement Expected Date of Prior Comments Description Cost Method Advertisement Review ($’000) Y/N 1 Vehicles 535 NCB Q2 2008 Y Financed by ADB 2 Consulting 2,016 QCBS Q4 2007 Y Financed by ADB Services QCBS (80:20) 3 Consulting 280 ICS Q1 2008 Y Financed by ADB services ADB = Asian Development Bank, ICS = independent consultant selection, NCB = national competitive bidding, Q = quarter, QCBS = quality and cost-based selection.

27

Proposed Detailed Contract Packages (greater than $100,000)a

Number Cost Estimate per Aggregated Total Cost Mode of Responsible Description of Contracts Contract ($'000) Estimate ($'000) Procurement Agency

A. Goods and Services, Equipment 1. Vehicles 4 270 535 NCB PMO, MOWRAM

B. Consulting Services 1. Implementation Consultants 1 2,300 2,016 QCBS PMO, MOWRAM

2. Tonle Sap Initiative Coordinator 1 180 180 ICS ADB (to be recruited by ADB)

3. Postharvest management 1 100 100 ICS PMO, MOWRAM specialists a Subproject selection criteria eliminate projects over $100,000. A total of $9.9 million in multiple contract packages will be supported by the Project over 5 years. ADB = Asian Development Bank, ICS = independent consultant selection, MOWRAM = Ministry of Water Resources and Meteorology, NCB = national competitive bidding, PMO = project management office, QCBS = quality and cost-based selection. Source: Asian Development Bank estimates – updated January 2009

DISBURSEMENT PROCEDURES 28

Read this Section in conjunction with Section II. Cost Estimates and Financing Plan of this PAM and the Governments Standard Operating Procedures (Financial Management Manual)

47. The Government, through MEF, will open a US dollar denominated account at the National Bank of Cambodia with separate accounts for the project loan and grants proceeds immediately after loan and grant effectiveness. MOWRAM will open US dollar denominated imprest accounts in a commercial bank acceptable to ADB immediately after loan and grant effectiveness.

48. The accounts will be established, managed, replenished, and liquidated according to ADB’s Loan Disbursement Handbook (2007, as amended from time to time). Project advances will be deposited into the imprest accounts on the basis of the estimated next 6 months of project expenditures or a maximum of 10% of the loan/grant amount, whichever is lower.

49. MOWRAM will transfer part of the imprest account funds to second generation imprest accounts held by PDWRAM, PDRD, PDA, and PLAU, with a commercial bank, in each participating province. MOWRAM will also transfer part of the imprest account fund to the CDF accounts held by participating commune councils with a commercial bank to finance activities under Component 1a. A flowchart on fund flow is in Appendix 6.

50. MOWRAM will disburse $1,000 to each commune CDF to enable recruitment of commune council supporters to assist the councils in preparing projects for approval after the commune council assistants have been identified and recruited following mobilization of the implementation consultants

51. The imprest accounts will be replenished and liquidated on a monthly basis or when the accounts are drawn down by 20% of the initial deposits.

52. The statement of expenditures procedure will be used to liquidate and replenish the imprest accounts for eligible expenditures. Any individual payment to be reimbursed or liquidated under this procedure shall not exceed the equivalent of $50,000. Statement of expenditures documentation will be retained at the PMO and participating provincial departments. Imprest account and statement of expenditures records will be audited during the annual audit process.

53. Procedures for withdrawal of loan/grant proceeds are standardized to facilitate disbursements under loans/grants. Disbursement procedures consist of four major types: (i) direct payment procedure, (ii) commitment procedure, (iii) reimbursement procedure, and (iv) imprest fund procedure. Forms to be used can be downloaded from ADB's website http://www.adb.org/documents/handbooks/loan_disbursement/default.asp (also in Appendix 6).

54. The Government shall ensure that all advances of operating expenses paid to EA or IA staff are reconciled within 1 week of the end of each month. No further advances shall be paid until previous advances have been reconciled and cleared against documentary evidence (Financing Agreement, Schedule 5, paragraph 42).

A. Direct Payment Procedure

The direct payment procedure is one whereby ADB, at the borrower’s/EA’s request, pays a designated beneficiary directly 29

Basic Requirements: • A signed withdrawal application (form ADB-DRP/RMP) must be submitted to ADB together with a summary sheet (form ADB-DRP-SS) and the required supporting documents. • A separate withdrawal application is required for each different currency.

Supporting Documents: The following documents must be submitted to ADB together with the withdrawal application.

• A contract or confirmed purchase order (PO), if not submitted earlier to ADB, indicating the amount and due date;

• In addition, 9 Payment of goods requires the supplier’s invoice, bill of lading , or other similar documents. 9 Payment of services requires the consultant’s claim or invoice, and 9 Payment of civil works requires the claim or invoice from the contractor and a summary of work progress certified by the project engineer and approved by the borrower’s/EA’s authorized representative.

Responsible Person/Unit Activity Borrower/EA • Completes the withdrawal application using form ADB-DRP/RMP for each payment in different currency; • Completes the corresponding summary sheet using form ADB- DRP/RMP/IFP-SS using a separate form for each category or subcategory; • Attaches the contract or confirmed purchase order (PO) indicating the amount and due date; and • Attaches the supporting documents to each withdrawal application. ADB • Receives the accomplished ADB-DRP/RMP, ADB-DRP-SS, and related supporting documents

B. Reimbursement Procedure

The reimbursement procedure is one whereby ADB pays from the loan account to the borrower’s/EA’s account or, in some cases, to the project account for eligible expenditures which have been incurred and paid for by borrower/EA out of its budget allocation or its own resources. Under this procedure, ADB’s payments are made only to the borrower/EA and not to a third party. This procedure normally requires submission of full supporting documentation.

Basic Requirements: • A signed withdrawal application (form ADB-DRP/RMP) must be submitted to ADB together with a summary sheet (form ADB-DRP-SS) and the required supporting documents. • A separate withdrawal application must be submitted for each currency. A separate summary sheet must also be submitted for each loan category or subcategory grouping items claimed by contract number. 30

• The expenditures should have been incurred and paid for by the borrower/EA out of its own fund sources.

Supporting Documents: The following documents must be submitted to ADB together with the withdrawal application.

• A contract or confirmed purchase order (PO), if not yet submitted to ADB; • A copy of the invoice/bill/claim and delivery receipt; and • The evidence or receipt of payment showing the amount paid, the date of receipt and the payee

Simplified Documentation: • ADB may accept simplified documentation under the statement of expenditures procedure.

Responsible Person/Unit Activity Borrower/EA For All Reimbursement Procedures • Completes the withdrawal application on form ADB-DRP/RMP

For Reimbursement with Documentation • Completes the corresponding summary sheet using form ADB-RMP-SS; • Attaches the contract or confirmed purchase order indicating the amount and due date, if not yet submitted to ADB; • Attaches a copy of invoice, bill, or claim and delivery receipt; and • Attaches a copy of the receipt or evidence of payment.

For Statement of Expenditure (SOE) • Completes and signs the appropriate SOE form. The four forms are: • SOE form, mostly related to civil works for contracts of $100,000 and below; • SOE form for contracts over $100,000; • SOE form for noncontracts items, mostly related to operating and overhead expenses • SOE form for items not provided in the other SOE forms. ADB For All Reimbursement Procedures • Receives the completed forms and related documentation

C. Commitment Procedure

Under the commitment procedure, ADB, at the borrower’s/EA’s request, irrevocably agrees to reimburse a commercial bank for payments made or to be made to a supplier against an LC.

D. Imprest Fund Procedure

The imprest fund procedure is one where ADB makes an advance disbursement from the loan account for deposit to an imprest account (the Account) to be used exclusively for ADB’s share of eligible expenditures.

31

Basic Requirements: • A signed withdrawal application for imprest account must be submitted to ADB together with a statement of the estimated ADB share of project expenditures on form ADB-IFP- EES.

Using the Account: • The borrower/EA uses the Account to pay contractors, suppliers, and others for ADB’s share of eligible project expenditures incurred in local and foreign currency. Imprest fund advances are strictly for purposes of paying eligible project expenditures for the forthcoming 6 months. EA and ADB (Sector division/RM and CTLA) shall maintain close monitoring of its operation and turnover ratio. For slow-moving imprest account and/or advanced amount not being utilized within reasonable time, the imprest fund ceiling shall be reduced to the appropriate level in line with project activities and surplus fund shall be returned to ADB immediately. Any use of the imprest funds for activities other than the eligible project activities will invoke corrective action deemed appropriate by ADB.

Ceiling of Advances: • The EA must obtain prior ADB approval for any upward changes in the approved ceiling. Requests for changes are sent to ADB for approval by the Assistant Controller, CLA and the sector division director concerned.

Initial Advance: • The EA may request an initial advance from ADB based on approved contracts and planned expenditures for the first 6 months of the project, which are to be paid through the imprest account. The initial advance, in any event, is not to exceed the approved ceiling.

• All advances are deposited in the imprest account.

Liquidation/Replenishment: • As eligible expenditures are incurred and paid from the Account, the borrower/EA requests liquidation/replenishment of the account by submitting a withdrawal application and the applicable summary sheet. The corresponding bank statement and reconciliation statement should also be submitted with the application. Withdrawal application must be prepared in the currency of the Account.

Recovery of Advances or Final Liquidation of the Account: • Advances are to be gradually reduced within 1 year before the loan closing date or when the undisbursed balance of the loan, excluding outstanding commitments, is equal to twice the amount of advance, whichever comes first.

• This is to ensure that sufficient time is provided for the borrower/EA to obtain supporting documentation for clearing the outstanding advances before the loan account is closed.

• The borrower/EA must promptly refund to ADB, in the currency of the Account, any balance of the advance not liquidated at the time of loan closing.

32

Second-Generation Imprest Account (SGIA): • An SGIA receives funds from the first generation imprest account, to meet project expenditures incurred by the Implementing Agency. The SGIA shall be a separate bank account opened for the exclusive use of the project.

• The borrower/EA should ensure that every liquidation and replenishment of each SGIA should be supported with (i) the statement of account (bank statement) prepared by the bank where the SGIA is maintained, and (ii) a SGIA reconciliation statement reconciling the above mentioned bank statement against SGIA’s records. These supporting documents should be retained by PMU and be made available to ADB upon request.

Review by ADB Staff: • ADB reserves the right to conduct spot or random checks of expenditures covered by the imprest fund through special disbursement missions or review missions, or upon ADB’s request for submission of supporting documents on sampling basis.

Suspending Replenishment: • ADB may suspend replenishment of the Account if 9 The loan is declared suspended by ADB, partially (suspension is applicable only to affected EA or component) or fully. 9 Audit reports or ADB missions indicate significant irregularities in the operation of the imprest account; or 9 The Account has been inactive for more than 6 months and no application for replenishment has been submitted.

• During the suspension, no additional fund will be advanced to the Account. However, available funds in the Account can be used to meet eligible expenditures. Withdrawal applications submitted for these expenditures will be applied to liquidate the balance of advances.

Responsible Person/Unit Activity A. ADB’s Initial Advance to the Imprest Account Borrower/EA • Completes the withdrawal application for imprest fund and an estimate of expenditure sheet using form ADB-IFP-EES.

ADB • Receives the completed forms and disburse the initial 6-month advance for deposit to the Borrower’s/EA’s imprest account.

B. Liquidation or Replenishment of the Imprest Account Borrower/EA • Completes the withdrawal application for imprest fund and the applicable summary sheet using form ADB-IFP-SS or SOE to replenish the account as frequently as possible provided the amount of the application reaches the minimum ceiling of $100,000; and • Prepares the necessary imprest account reconciliation statement and attaches the bank statement(s).

ADB • Receives the completed forms and disburses the value of eligible expenditures for replenishment of the account balance; and • Disallows any unjustified or ineligible payment

Borrower/EA • Refunds the disallowed amount to the imprest account

C. Final Liquidation or Recovery of Advances 33

Borrower/EA • Completes the liquidation of advance form and the applicable summary sheet or SOE; • Prepares the imprest account reconciliation statements and attaches the bank statement(s).

ADB • Receives the completed forms and deducts the amount of expenditures incurred from the outstanding balances of advances until the imprest account reaches a zero balance; and • Requests the Borrower/EA to refund the unliquidated balance if the account still has unliquidated advance after the loan closing date.

Borrower/EA • Refunds promptly to the loan account any amount that remains outstanding in the imprest account after the loan closing date, as specified in the Loan Agreement.

E. Statement of Expenditures (SOE) Procedure

• SOE procedure is a simplified procedure requiring no submission of supporting documentation. The procedure derives its name from the SOE form which is submitted with the withdrawal application. The SOE replaces the usual supporting documents and the summary sheet. The SOE form provides data on contracts and disbursements up to the authorized ceiling amount.

• In the SOE form borrower certifies that 9 Expenditures have been incurred and paid for under the terms and conditions of the loan agreement; 9 Records are maintained and are available for examination by ADB disbursement/review missions and independent auditors; and 9 Payments have not been split just to enable it to pass through the threshold prescribed under the SOE.

• The SOE forms available are: 9 SOE form for contracts of $100,000 and below; 9 SOE form for contracts over $100,000; 9 SOE form for noncontract items, mostly related to operating and overhead expenses; and 9 SOE form for items not provided in the other SOE forms

• SOE procedure may also be used when liquidating or replenishing the imprest account, if allowed by ADB.

• Where ADB subsequently finds any payment made under SOE procedure to be insufficiently supported or ineligible for ADB financing, ADB may offset the amount of the unjustified or ineligible payment against subsequent withdrawals for reimbursement or request the borrower/EA to refund the same amount to the loan account.

• SOE records must be audited regularly by independent and qualified auditors acceptable to ADB. The audit is carried out as a part of the regular annual audit of the EA’s accounts. A separate audit opinion is included in the annual audit report.

34

• ADB reserves the right to conduct spot or random checks of expenditures covered by SOE through disbursement missions or review missions. Documents are to be kept in the EA’s office and must be made readily available for checking by ADB’s disbursement and review missions or upon ADB’s request for submission of supporting documents on sampling basis.

Appendix 6 Page 1

ACCOUNTS AND FUND FLOW

Asian Development Bank

National Bank of Cambodia Direct payment for services

MOWRAM MOWRAM First generation First generation imprest account for imprest account for grant proceeds loan proceeds held held in commercial in commercial bank bank

Commune CommuneCouncil 40Council No.Account Commune held in CouncilAccountCommercial held in bank accountsCommercial held inbank commercial bank 3 No. PDWRAM 3 No. PDWRAM Second generation Second generation imprest account for imprest account for 3 No. PLAU grant proceeds in loan proceeds in Second generation commercial bank commercial bank imprest account for grant proceeds in commercial bank

3 No. PDRD 3 No. PDA 3 No. PDRD Second generation Second generation Second generation imprest account for imprest account for imprest account for loan proceeds in grant proceeds in grant proceeds in commercial bank commercial bank commercial bank

MOWRAM = Ministry of Water Resources and Meteorology, PDA = provincial department of agriculture, PDRD = provincial department of rural development, PDWRAM = provincial department of water resources and meteorology, PLAU = provincial local administration unit. Source: Asian Development Bank.

Appendix 6 Page 2

Commune Development Fund

ADB

National Bank of Once MOWRAM Cambodia transfers funds to CDF, MOWRAM can record it as expense and include it in its replenishment request to ADB

FGIA

MOWRAM transfers funds

Commune Development Fund

CCs should ensure that supporting documents for payment to CCAs are kept for audit purposes

Payments to suppliers/ Payment to Commune contractors Council Assistants

Appendix 6 Page 3

Replenishment of SGIA

First Generation Imprest Account (FGIA)

PIU prepares SOE sheets and submits to MOWRAM together with MOWRAM transfers original supporting documents. funds Photocopy of documents is kept in PIU and summary of SOE submitted to parent Ministry Project Manager.

Second Generation Imprest Account PIU disburses against expenses (SGIA) and contracts then compiles supporting documents of expenses incurred, and records of expenses

Payment to Supplier Incremental Training Expenses or Contractor Administrative Expenses

Appendix 6 Page 4

WITHDRAWAL APPLICATION FOR DIRECT PAYMENT AND REIMBURSEMENT ADB Loan No. ------Date: Application No. To: Asian Development Bank Type of Disbursement 6 ADB Avenue, Mandaluyong City Direct Payment 1550 Metro Manila, Philippines Reimbursement Attention: Loan Administration Division, Controller's Department (CTLA)

Sir/Madam:

1. In connection with the Loan Agreement dated ______between the Asian Development Bank and the (Borrower) , please pay from the Loan Account:

Currency Amount in Figure Amount in Words

The said amount is required for payment or reimbursement of eligible expenditures in the said currency as described in the attached Summary Sheet(s).

2. The undersigned certifies and agrees as follows: a. these expenditures were/are/will be made for the purposes specified in the Loan Agreement and the undersigned has not previously withdrawn from the Loan Account or obtained or will obtain any other loan, credit, or grant for the purpose of fully or partially meeting these expenditures. b. the goods or services have been procured in accordance with the Loan Agreement and the cost and terms of the purchase thereof are reasonable and in accordance with the relevant contract(s). c. the goods or services were or will be produced in and supplied by a member country of ADB as specified in the attached Summary Sheets(s). d. for expenditures claimed on the basis of a Statement of Expenditures (SOE), all authenticating documents have been retained in the location shown on the individual SOE Summary Sheets and will be made available for review by auditors and ADB representatives upon request. e. as of the date of this application, there is no existing default under the Loan Agreement, the Project Agreement or the Guarantee Agreement, if any. f. if any funds withdrawn pursuant to this application are returned, the current value of such funds will be applied as credit to the Loan Account or, if the amount is small, applied to the next loan service payment due.

3. Payment Instructions: A. Payee's Name and Address Payee's Name Payee's Address B. Name and Address of Payee's Bank and Account No. Bank Name Bank Address Payee's Account No. SWIFT Code C. Correspondent Bank (If Payee’s Bank is not located in the Country whose currency is claimed, enter the name and address of their bank’s correspondent in the country whose currency is to be paid.) Bank Name Bank Address Account No. of Payee's Bank SWIFT Code D. Special Payment Instructions and Other References

4. This application consists of ______pages including ____ pages of Summary Sheets.

From: Name of Borrower

Signature of Authorized Representative(s)

Printed Name/Position/Title of Authorized Representative(s)

Appendix 6 Page 5

Instructions in preparing the Withdrawal Application Form for Direct Payment and Reimbursement (ADB Form ADB-DRP/RMP)

General Instructions

1. Submit original Withdrawal Application (WA) to the Asian Development Bank (ADB) (or to its Resident/Regional Mission, if instructed).

2. Prepare separate WA for each currency of payment and for each payee.

3. Number WAs consecutively, not exceeding five digits/characters.

4. Consolidate claims until the amount being withdrawn is at least US$100,000 equivalent or an amount advised by ADB.

5. When completed, verify the application for completeness of supporting documentation and accuracy of details before passing to the Authorized Representative(s) for signature. Mistakes and omissions result in delayed payment.

Withdrawal References

1. Date: Enter the date the WA is signed by Authorized Representative(s), not the date it was prepared.

2. Loan Number: Show ADB loan number clearly.

3. Application Number: Number WAs consecutively. If the project has more than one executing agency (EA) or implementing agency, the project coordinator should assign an alpha identification for each EA. For example : A0001 to A9999 for EA no. 1 and B0001 to B9999 for EA no. 2.

4. Type of Disbursement: Indicate in the appropriate box the type of WA claim, whether for Direct Payment or Reimbursement Procedure.

Payment Instructions

1. Payee Name and Address: Indicate full name and address of Payee for identification of payment.

2. Name and Address of Payee’s Bank and Account No. : Indicate full name and address of the Payee’s bank, which may include a banker/branch designation. Account number is important. Give SWIFT code if Payee’s bank is a member of SWIFT.

3. Correspondent Bank: Where payment is to be made to a bank not located in the country of the currency to be paid, indicate its full name and address. Provide SWIFT code if the bank is a member of SWIFT.

4. Special Payment Instructions: Indicate any particulars, special instructions or references to facilitate payment or identification of payment.

5. Name of Borrower: Fill in name as it appears in the Loan Agreement.

6. Authorized Representative(s): Pass this application only to Authorized Representative(s) for signature. Verify if the list of Authorized Representative(s) has been changed.

Appendix 6 Page 6

WITHDRAWAL APPLICATION FORM FOR IMPREST FUND

ADB Loan No. Date ------Application No. To: Asian Development Bank Type of Disbursement 6 ADB Avenue, Mandaluyong City Initial Advance 1550 Metro Manila, Philippines Increase in Ceiling Attention: Loan Administration Division, Controller's Department (CTLA) Replenishment

Sir/Madam: 1. In connection with the Loan Agreement dated ______between the Asian Development Bank and the (Borrower) , please pay from the Loan Account for the purpose of establishing/replenishing the Imprest Fund.

Currency Amount to be Paid (in figures) Amount to be paid (in words)

2. The Borrower certifies and agrees as follows: a. the said amount is required for payment of eligible expenditures as described in the attached Estimate of Expenditures Sheet(s) from ______(date/month/year) to ______(date/month/year). b. any advances by the Asian Development Bank (ADB) to the Imprest Fund may be limited to a sum smaller than the amount requested for advances or replenishment, allowing the Fund to be gradually reduced and fully documented prior to loan closing date. c. the undersigned has not previously withdrawn or applied for withdrawal of any amounts from said Loan Account nor obtained or will obtain any loan, credit, or grant for the purpose of fully or partially meeting the expenditures described in the Estimate of Expenditures Sheet(s) or Summary Sheet(s); d. the expenditures described in the attached Estimate of Expenditures Sheet(s) / Summary Sheet(s) are to be made for the purposes specified in the Loan Agreement and in accordance with its terms and conditions; and e. promptly within 6 months after the payment(s), the undersigned will furnish proof satisfactory to ADB to liquidate and document the advance. f. for expenditures to be liquidated on the basis of a Statement of Expenditures (SOE), all authenticating documents will be retained in the location shown on the individual SOE Summary Sheet(s) and will be made available for review by auditors and ADB representatives upon request. g. as of the date of this application, there is no existing default under the Loan Agreement, the Project Agreement or the Guarantee Agreement, if any. h. if any funds withdrawn pursuant to this application are returned, the current value of such funds will be applied as credit to the Loan Account or, if the amount is small, applied to the next loan service payment due.

3. Payment Instructions: A. Payee's Name and Address Payee's Name Payee's Address B. Name and Address of Payee's Bank and Account No. Bank Name Bank Address Payee's Account No. SWIFT Code C. Correspondent Bank (If Payee’s Bank is not located in the Country whose currency is claimed, enter the name and address of their bank’s correspondent in the country whose currency is to be paid.) Bank Name Bank Address Account No. of Payee's Bank SWIFT Code D. Special Payment Instructions and Other References

4. This application consists of ____ pages including ____ pages of Summary Sheets. From: Name of Borrower

Signature of Authorized Representative(s)

Printed Name/Position/Title of Authorized Representative(s)

Appendix 6 Page 7

Instructions for preparing the Withdrawal Application Form for Imprest Fund (ADB Form No. ADB-IFP)

General Instructions

1. Submit original Withdrawal Application Form (WA) to the Asian Development Bank (ADB) (or to its Resident/Regional Mission, if instructed). 2. Number WAs consecutively, not exceeding 5 digits or characters. 3. For replenishment of advances, consolidate claims until the amount being withdrawn is at least US$100,000 equivalent or an amount advised by ADB. 4. When the application is completed, verify completeness of supporting documentation and accuracy of details before passing to the Authorized Representative(s) for signature. Mistakes and omissions result in delayed payment.

Withdrawal References

1. Date: Enter the date WA is signed by Authorized Representative(s), not the date it was prepared. 2. Loan Number: Show ADB loan number clearly. 3. Application Number: Number WAs consecutively. If the project has more than one executing agency (EA) or implementing agency, the project coordinator should assign an alpha identification for each EA. For example: A0001 to A9999 for EA no. 1 and B0001 to B9999 for EA no. 2. 4. Type of Disbursement: Indicate in the appropriate box the type of WA claim, whether for Initial Advance/Increase in Ceiling, or Replenishment.

Estimate of Expenditures Sheet (ADB Form No. ADB-IFP-EES)

For Initial Advance:

1. Provide all details as required in form ADB-IFP-EES. Estimated expenditures should normally be based on the amount of contracts awarded and to be awarded . Estimated expenditures should not exceed the contract amounts. 2. For expenditures related to operational costs, the amount should be linked to the Project’s annual budget provision. 3. No supporting documents are required.

For Replenishment:

1. In addition to 1 and 2 above, before submitting the WA, submit contracts and procurement documents to ADB's Project Division concerned (contracts exceeding US$100,000). 2. Where the Statement of Expenditures (SOE) is not allowed, submit all evidences of payment, invoices, bills of lading, or work certificates. The requirements are the same for reimbursement procedure. 3. In all cases, attach bank statement from the bank maintaining the imprest fund and the bank reconciliation of the imprest fund account.

Payment Instructions

1. Payee’s Name and Address: Indicate full name and address of Payee for identification of payment. 2. Name and Address of Payee’s Bank and Account No.: Indicate full name and address of the Payee’s bank, which may include a banker/branch designation. Account number is important. Give SWIFT code if Payee’s bank is a member of SWIFT. 3. Correspondent Bank: Where payment is to be made to a bank not located in the country of the currency to be paid, indicate its full name and address. Provide SWIFT code if the bank is a member of SWIFT. 4. Special Payment Instructions: Indicate any particulars, special instructions or references to facilitate payment or identification of payment. 5. Name of Borrower: Fill in the name as it appears in the Loan Agreement. 6. Authorized Representative(s): Pass this application only to Authorized Representative(s) for signature. Verify if the list of Authorized representative(s) has been changed.

Appendix 6 Page 8

SUMMARY SHEET FOR DIRECT PAYMENT/REIMBURSEMENT/REPLENISHMENT/LIQUIDATION

Mark appropriate Direct Payment (ADB-DRP-SS) Reimbursement (ADB-RMP-SS) Replenishment/Liquidation (ADB-IFP-SS) box: (ADB-Direct Payment Procedure-Summary Sheet) (ADB-Reimbursement Procedure-Summary Sheet) (ADB-Imprest Fund Procedure-Summary Sheet)

Summary Sheet No.: Date: ADB Loan No.: Supporting Documents Attached (please mark with an X) No. & Title of Category/Sub-category: Application No.:

Item No. & Date of PCSS Description of Goods Name and Date of Amount Paid/ Nature of Contract/ Invoice/ Receipt Bill of a b c No. Contract/PO No. and Services Address of Supplier Payment (Due) Payable Payment Made PO Claim Lading Certificate

Total Amount Paid/Payable % of ADB Financing Amount Requested for Withdrawal d

Notes: a Indicate against each item, whether the payment is a down payment, or an installment payment (if so, the number of installment). b In case this was sent earlier, indicate the reference of the earlier letter in the footnote using (*). c In case of civil works contract, a duly signed progress or interim certificate should be submitted. d Ensure that amount agrees with the sum indicated in the application.

Borrower: By: (Authorized Representative's Signature, Name and Position) ADB Form No. ADB-DRP/RMP/IFP-SS Revised January 2007 Appendix 6 Page 9

STATEMENT OF EXPENDITURES (SOE) FOR CONTRACTS OVER US$100,000 For the Period ______to ______

SOE for: Replenishment of Imprest Advance Reimbursement Liquidation

SOE Sheet No.: ADB Loan No.: Category/subcategory: a Application No. Date: Contract/PO Amount Currency & Item Description of Goods & Services No. for EA's PCSS Name & Address Amount % of ADB Requested for Nature of Payment/ Amount Charged Exchange US Dollar Remarks b c d d d No. Record No. of Supplier Paid/Payable Financing Withdrawal Payment Check No. to Imprest Acct. Rate Equivalent

* EA = Executing Agency, PCSS = Procurement Contract Summary Sheet, PO = Purchase Order TOTALS

CERTIFICATION It is hereby certified that the above amounts have been paid for proper execution of project activities within the terms and conditions of the Loan Agreement. All documentation authenticating these expenditures has been retained in (insert location) and will be made available upon request of review missions. It is further certified that payments have not been split to enable them to pass through the threshold prescribed under the SOE.

Borrower: By: (Authorized Representative Signature, Name and Position)

Notes: a Use separate Summary Sheet for each category and for each country of procurement. b Ensure that the total amount or the aggregate of all summary sheets agrees with the sum indicated in the applic ation, which should be equivalent to US$100,000 or above. c Indicate against each item, whether the payment is a down payment, or an installment payment (if so, the number of installments). d Applicable for liquidation/replenishment. Bank and reconciliation statements should be attached. Entries indicated in these columns should be the amounts shown in the bank statement.

Appendix 6 Page 10

STATEMENT OF EXPENDITURES (SOE) FOR CONTRACTS OF US$100,000 AND BELOW For the Period ______to ______

SOE for: Replenishment of Imprest Advance Reimbursement Liquidation

SOE Sheet No.: ADB Loan No. Category/subcategory: Application No.: Date:

P R O C U R E M E N T D I S B U R S E M E N T C o n t r a c t P a r t i c u l a r s of P a y m e n t ADB F i n a n c i n g Item Description of Contract Name and Address of PCSS* Amount Retention Amount Paid Cost of ADB Exchange US$ Equiv.Charged Paid by Date Bill No. Date Taxes Remarks No. Supplier/Contractor Number of Bill Money Financing at___ % Rate Imprest Account Check No.

* PCSS - Procurement Contract Summary Sheet. TOTALS

CERTIFICATION

It is hereby certified that the above amounts have been paid for proper execution of project activities within the terms and conditions of the Loan Agreement. All documentation authenticating these expenditures has been retained in (insert location) and will be made available upon request of review missions. It is further certified that payments have not been split to enable them to pass through the threshold prescribed under the SOE.

Borrower: By: (Authorized Representative Signature, Name and Position)

Appendix 6 Page 11

STATEMENT OF EXPENDITURES (SOE) FOR OPERATING COSTS For the Period ______to ______

SOE for: Replenishment of Imprest Advance Reimbursement Liquidation

SOE Sheet No.: ADB Loan No./Cofinancing Loan No.: Category/subcategory: Application No.: Date: Budget for Cumulative Expenditures Expenditures Exchange Item Type of Work/ Project (Year) Up to the End of Last Period During this Period % of ADB Amount Charged to Rate US Dollar Payment/ No. Items of Expenditures a Component (Currency) (Currency) (Currency) Financing Imprest Account (I/A) b Used b Equivalent b Check No. (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

TOTALS A) Total B) Percentage of ADB Financing c (A x B) C) ADB Financing * Column headings and titles may be added/changed as appropriate to suit the circumstances of the project. CERTIFICATION It is hereby certified that the above amounts have been paid for proper execution of project activities within the terms and conditions of the Loan Agreement. All documentation authenticating these expenditures has been retained in (insert location) and will be made available upon requ est of review missions. It is further certified that payments have not been split to enable them to pass through the threshold prescribed under the SOE.

Borrower: By: (Authorized Representative Signature, Name and Position) Notes: a Indicate against each Item of Expenditure , whether the payment is a down payment, or an installment payment (if so, the number of installments). b Applicable for liquidation/replenishment. Bank and reconciliation statements should be attached. Entries in this column should be the amounts shown in the Bank statement. c Ensure that the total amount or the aggregate of all summary sheets agrees with the sum indicated in the application whic h should be equivalent to US$100,000 or above.

Appendix 6 Page 12

STATEMENT OF EXPENDITURES (SOE) FREE FORMATa For the Period ______to ______

Loan No.: Withdrawal Application No.: Date:

Summary Sheet No.: Liquidation/Replenishment of Imprest Advances

Category/subcategory No.: Reimbursement

Item No.

TOTALS A) Total B) Percentage of ADB Financing C) ADB Financingb (A x B)

CERTIFICATION It is hereby certified that the above amounts have been paid for proper execution of project activities within the terms and conditions of the Loan Agreement. All documentation authenticating these expenditures has been retained in (insert location) and will be made available upon request of review missions. It is further certified that payments have not been split to enable them to pass through the threshold prescribed under the SOE.

Borrower: By: (Authorized Representative Signature, Name and Position)

Notes: a This free format is applicable to local expenditures such as recurrent operating cost, fellowship and training, etc., which are not covered by contract awards. For other SOE claims, column headings and titles may be added/changed as appropriate to suit the circumstances of the Project. b Ensure that the total amount or the aggregate of all summary sheets agrees with the sum indicated in the application which should be equivalent to US$100,000 or above.

Appendix 6 Page 13

IMPREST ACCOUNT RECONCILIATION STATEMENT (IARS) LOAN/GRANT/NO.______

Application Number ______With (Bank) ______Account Number ______Bank Address ______

1 PRESENT OUTSTANDING AMOUNT ADVANCED TO THE IMPREST ACCOUNT NOT YET RECOVERED US$ X,XXX,XXX.XX

2 BALANCE of Imprest account as of ______US$ XXX, XXX.XX per bank statement (copy attached)

3 ADD: Amount of eligible expenditures claimed in attached application (WA no.______) US$ XXX, XXX.XX

4 ADD: Amount claimed in previous applications not yet credited at date of bank statement US$ XXX, XXX.XX

Withdrawal Application No. Amount XXXXX US$ XXX, XXX.XX XXXXX US$ XXX, XXX.XX XXXXX US$ XXX, XXX.XX

5 TOTAL expenditures withdrawn from Imprest account but not yet claimed for replenishment

a. Second Generation Imprest Accounts (SGIA) 1

a.1 Total SGIA balance accounted for PIU#1 ______US$ XXX, XXX.XX a.2 Total SGIA balance accounted for PIU#2 ______US$ XXX, XXX.XX a.3 Total SGIA balance accounted for PIU#3 ______US$ XXX, XXX.XX a.4 Total SGIA balance accounted for PIU#4 ______US$ XXX, XXX.XX a.5 Total SGIA balance accounted for PIU#5 ______US$ XXX, XXX.XX

Total SGIA balances accounted for US$ XXX, XXX.XX

b. Transfer in transit US$ XXX, XXX.XX

c. Petty cash balance US$ XXX, XXX.XX

d. Unliquidated expenses (itemize expenses) US$ XXX, XXX.XX

e. Others (Please specify) US$ XXX, XXX.XX

US$ XXX, XXX.XX

6 TOTAL ADVANCE ACCOUNTED FOR US$ X,XXX,XXX.XX

Explanation of any discrepancy between totals appearing in lines 1 and 6 above (e.g., earned interest credited to the account, bank charges, etc.):

Authorized Representative

1 List all existing SGIAs with corresponding amount advanced. Attach latest Second Generation Imprest Account Reconcilation Statements (SGIARS) and bank statements.

Appendix 6 Page 14

LIQUIDATION OF ADVANCE

Date ADB Loan No.

To: Asian Development Bank Application No. 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines

Attention: Loan Administration Division, Controller's Department (CTLA)

Attached are the Summary Sheets and the supporting documents (if any) for expenditures in the sum of:

Currency Amount (in figure) Amount (in words)

incurred under the Loan Agreement of the Asian Development Bank. Please liquidate against previous advance(s).

Description of Goods and Services: Category Description Amount

Total

Note : Separate Summary Sheet should be used for each category.

Name of Borrower Signature of Authorized Representative(s)

Printed Name/Position Title of Authorized Representative(s)

PROJECT MONITORING AND EVALUATION 34

55. Three different kinds of monitoring will be carried out during project implementation: (i) progress monitoring, (ii) safeguard monitoring, and (iii) benefit monitoring and evaluation. The design and monitoring framework will be used by the PMO, assisted by the project consultants, to prepare and implement a project performance management system (PPMS) to (i) examine the Project’s technical performance; (ii) evaluate delivery of project facilities; (iii) assess achievement of the Project’s objectives; and (iv) measure the Project’s social, economic, financial, and institutional impacts. Socioeconomic data shall be disaggregated by income group, gender, and ethnic group where applicable. Gender-disaggregated indicators will be established for the PPMS, and monitoring will be continued to ensure that activities are carried out effectively and targets reached. The EA and IAs will be responsible for carrying out PPMS activities. Baseline data for each commune will be assembled from government sources and through household surveys and participatory monitoring activities. The PMO will establish a baseline data set for each commune within 6 months of loan and grant effectiveness. Detailed analysis of project impacts will be presented in a final monitoring report before project completion. MOWRAM agreed to ensure that a qualified social science or other suitably qualified institution acceptable to ADB will be contracted to conduct independent external monitoring and evaluation of the resettlement process and impacts, with reports provided to ADB and EA every 6 months. Key indicators are identified in Appendix 7.

56. ADB and the Government will undertake semiannual reviews facilitated by the PMO. The reviews will: (i) examine the appropriateness of implementation arrangements and schedules of activities, (ii) assess the procedures for commune development and infrastructure development plans, (iii) review compliance with agreed procurement procedures, (iv) analyze the outcomes of capacity building and training programs, and (v) monitor the effectiveness of safeguard procedures. A comprehensive midterm review will be jointly undertaken by the Government and ADB within 36 months of loan and grant effectiveness to identify any problems and constraints encountered, and assess the need for midcourse modification of the project scope and financing and implementation arrangements. Technical and budgetary changes to the project documents, including reallocation of loan and grant proceeds, will also be considered.

Appendix 7 Page 1

KEY PERFORMANCE MONITORING INDICATORS

The following table summarizes key monitoring parameters to be included in Project Performance Monitoring System (PPMS) established for the Tonle Sap Lowland Rural Development Project. The monitoring and evaluation specialist will ensure that the PPMS is compatible, to the extent possible, with existing or planned Government monitoring and evaluation systems.

Monitoring Issue Monitoring Indicators Mechanism

Impact Agricultural production ƒ Wet and Dry Season Cropped Subproject feasibility studies – Improved livelihoods in area (ha) Initial Social Assessment selected communes increase ƒ Crop Production (t/ha) economic activity and ƒ Wet and Dry Season Irrigated household incomes. Area (ha) Provincial statistical records

Economic activity Visual observation of ƒ Operating SMEs (#) communes ƒ Marketed surplus (% of production) Commune council assessment ƒ Off-farm employment (#)

Poverty Incidence ƒ Head count below national poverty line (#) ƒ Household food sufficiency (months of deficit)

Outcome At project completion: Rural populations use Agricultural production improved infrastructure and ƒ Wet and Dry Season Cropped services in selected area (ha) MAFF and FWUG records of communes to increase ƒ Crop Production (t/ha) crop production and intensity economic activity and ƒ Wet and Dry Season Irrigated household income Area (ha) PMO monitoring Participatory Decision Making ƒ # Membership of Production; ADB review missions Water User and other groups. ƒ Frequency of meetings Group records ƒ Status of accounts and reserves ƒ Membership of women ƒ Gender balance of decision FWUC minutes of meetings making bodies

Road Infrastructure and travel times ƒ # km of improved roadways Project progress reports Appendix 7 Page 2

Monitoring Issue Monitoring Indicators Mechanism

ƒ # travel time to specified locations, compared to Project PPMS baseline condition for same journey at project inception Commune Council records of businesses SME development and performance ƒ # new enterprises established and operating ƒ # jobs created and filled Outputs 1. Rural infrastructure is (schedule of outputs to be improved determined during inception phase)

Road Infrastructure 1.1. rural access roads ƒ # km of improved roadways PPMS reports and Progress improved ƒ Cost per km of upgraded road reports ƒ Maintenance costs ƒ Formation of Road ADB Review Mission reports maintenance groups PRDC monitoring reports Irrigation Upgrading ƒ #km of Secondary canals FWUG/FWUC records and 1.2. Irrigation canals upgraded minutes established ƒ #km of Tertiary canals upgraded National and Provincial Line ƒ # structures constructed or Agency records repaired ƒ #Ha of land in command area ƒ #ha increased irrigation in Wet season ƒ #ha increased irrigation in Dry Season ƒ # FWUG created and registered ƒ # Irrigation Service Fee agreements completed

Access to markets ƒ # market structures constructed or upgraded 1.3. access to rural markets ƒ # Market Association created are enhanced and operations

2. Rural livelihood options # Training courses implemented Appendix 7 Page 3

Monitoring Issue Monitoring Indicators Mechanism increased # Participants receiving training – gender disaggregated records 2.1. Access to technical # agricultural demonstrations Vocational training records and services is improved implemented Project Quarterly Progress # take up of technologies among Reports trainees # take up of technologies by others

Project Management: ƒ # meetings of the national and provincial steering committees 3. Project implementation ƒ # delivery of reports effectively managed ƒ Progress of project Minutes of meetings implementation PPMS and Project Quarterly Progress Reports Activities Indicators to be agreed with EA/IA Rural Infrastructure is and Consultants in finalization of improved PPMS and PAM

Rural livelihood options developed

Project implementation

REPORTING REQUIREMENTS

AUDITING REQUIREMENTS

MAJOR LOAN COVENANTS 35

IX. REPORTING REQUIREMENTS

57. IAs will provide the PMO with quarterly progress reports on their activities, compliance with safeguard requirements, and achievement of outputs within 15 days of the end of each quarter. These will be reflected in a consolidated quarterly progress report.1 Quarterly reports will be submitted to ADB, the PSC, IAs, and MOWRAM’s Gender Mainstreaming Action Group within 30 days of the end of each quarter. A proforma of an EA’s progress report is in Appendix 8.

58. A project completion report will be prepared by the PMO and submitted to ADB within 3 months after completion of the Project.

X. AUDITING REQUIREMENTS

59. The Project will be administered in accord with the Financial Management Manual for Investment Projects (footnote 29), which describes the Government’s financial management policies and procedures for efficient and effective implementation of ADB and World Bank projects, and achievement of the objectives. MOWRAM, MRD, MAFF, PLAU, and participating provincial departments and communes will maintain separate accounts for the loan and grant proceeds for the Project. Operating advances to EA/IA staff will be reconciled within 1 week of the end of each month and before further advances are made. IAs will prepare and submit monthly financial reports to PMO by the 15th day of the following month. The PMO will submit a consolidated quarterly report to ADB, MEF, and the PSC not later than 1 month after the end of the reporting quarter.

60. The project accounts will be audited each year by independent external auditors acceptable to ADB. The audited accounts, together with the auditor’s report, will be submitted to ADB not more than 6 months after each financial year. The imprest accounts and statement of expenditures will be audited as part of the regular audit of project accounts and financial statements, and the audit report will include auditor’s opinions on the imprest account and statement of expenditures. The Audit Letter is in Appendix 9.

XI. MAJOR LOAN COVENANTS

61. A list of major loan covenants agreed for the project by the Government and ADB, which should be complied with, are in Appendix 10. The list of covenants should be included as an attachment to the progress reports reflecting the latest status.

1 Quarterly reports will include: (i) a narrative description of progress made by each project component and the Project as a whole during the reporting period; (ii) modifications to the implementation schedule; (iii) details of land use and resettlement; (iv) implementation of the environment assessment and review framework; (v) major project activities by the PMO, EA, and IAs; (vi) financial and procurement-related information; (vii) problems experienced and remedial actions proposed; and (viii) the work plan for the following period. All data shall be sex-disaggregated where relevant. Progress reports shall include gender-related achievements (e.g. number and level of participation of women in meetings and committee decisions) and constraints. The second and fourth quarter progress reports will also include findings of initial assessments of project impact on the targeted beneficiaries. Appendix 8 Page 1

Pro Forma of the Executing Agency’s Project Progress Report

NOTE: Quarterly reports will include: (i) a narrative description of progress made by each project component and the Project as a whole during the reporting period; (ii) modifications to the implementation schedule; (iii) details of land use and resettlement; (iv) implementation of the environment assessment and review framework; (v) major project activities by the PMO, EA, and IAs; (vi) financial and procurement-related information; (vii) problems experienced and remedial actions proposed; and (viii) the work plan for the following period. All data shall be sex-disaggregated where relevant. Progress reports shall include gender-related achievements (e.g. number and level of participation of women in meetings and committee decisions) and constraints. The second and fourth quarter progress reports will also include findings of initial assessments of project impact on the targeted beneficiaries

A. Introduction and Basic Data

Provide the following:

• ADB loan number, project title, borrower, executing agency(ies), implementing agency(ies); • total estimated project cost and financing plan; • status of project financing including availability of counterpart funds and cofinancing; • dates of approval, signing, and effectiveness of ADB loan; • original and revised (if applicable) ADB loan closing date and elapsed loan period based on original and revised (if applicable) loan closing dates; and • date of last ADB review mission.

B. Utilization of Funds (ADB Loan, Cofinancing, and Counterpart Funds)

Provide the following:

• cumulative contract awards financed by the ADB loan, cofinancing, and counterpart funds (commitment of funds to date), and comparison with time-bound projections (targets); • cumulative disbursements from the ADB loan, cofinancing, and counterpart funds (expenditure to date), and comparison with time-bound projections (targets); and • reestimated costs to completion, need for reallocation within ADB loan categories, and whether an overall project cost overrun is likely.

C. Project Purpose

Provide the following:

• status of project scope/implementation arrangements compared with those in the report and recommendation of the President (RRP), and whether major changes have occurred or will need to be made; • an assessment of the likelihood that the immediate development objectives (project purpose) will be met in part or in full, and whether remedial measures are required based on the current project scope and implementation arrangements; • an assessment of changes to the key assumptions and risks that affect attainment of the development objectives; and • other project developments, including monitoring and reporting on environmental and social requirements that might adversely affect the project's viability or accomplishment of immediate objectives.

Appendix 8 Page 2

D. Implementation Progress

Provide the following:

• assessment of project implementation arrangements such as establishment, staffing, and funding of the PMO or PIU;

• information relating to other aspects of the EA’s internal operations that may impact on the implementation arrangements or project progress;

• progress or achievements in implementation since the last progress report;

• assessment of the progress of each project component, such as, - recruitment of consultants and their performance; - procurement of goods and works (from preparation of detailed designs and bidding documents to contract awards); and - the performance of suppliers, manufacturers, and contractors for goods and works contracts;

• assessment of progress in implementing the overall project to date in comparison with the original implementation schedule—quantifiable and monitorable target, (include simple charts such as bar or milestone to illustrate progress, a chart showing actual versus planned expenditure, S-curve graph showing the relationship between physical and financial performance, and actual progress in comparison with the original schedules and budgets, the reference framework or guidelines in calculating the project progress including examples are shown in Appendix 2); and

• an assessment of the validity of key assumptions and risks in achieving the quantifiable implementation targets.

E. Compliance with Covenants

Provide the following:

• the borrower's compliance with policy loan covenants such as sector reform initiatives and EA reforms, and the reasons for any noncompliance or delay in compliance; • the borrower’s and EA’s compliance with financial loan covenants including the EA’s financial management, and the provision of audited project accounts or audited agency financial statements; and • the borrower’s and EA’s compliance with project-specific loan covenants associated with implementation, environment, and social dimensions.

F. Major Project Issues and Problems

Summarize the major problems and issues affecting or likely to affect implementation progress, compliance with covenants, and achievement of immediate development objectives. Recommend actions to overcome these problems and issues (e.g., changes in scope, changes in implementation arrangements, and reallocation of loan proceeds).

Appendix 8 Page 3

Framework and Guidelines in Calculating Project Progress

A. Introduction

1. To ensure that all implementation activities are reflected in measuring implementation progress against the project implementation schedule, the term "physical completion” in the PPR has been changed to "project progress.”

2. Physical and precommencement activities are considered in calculating project implementation progress. These activities, which may include recruitment of consultants, capacity building, detailed design, preparation of bid and prequalification documents, etc., could constitute a significant proportion of overall implementation and therefore should be counted.

3. Each activity in the implementation schedule will be weighted according to its overall contribution (using time as a reference) to progress of project implementation. These weights will then be used to calculate the percentage of project progress along the entire time span of the project. This is to provide a holistic view of the pace of implementation.

B. Framework for Compiling Activity List and Assigning Weights

4. As implementation activities and their corresponding weights will vary according to the type of project, sector, and country, sector divisions or RMs will be responsible for determining and including them in the project administration memorandum. The actual project implementation progress of these activities should be reported regularly through the EA’s quarterly project progress report. To ensure ADB- wide consistency, the following framework has been established; its application will be monitored through the PPR.

1. Compilation of Activity List

5. Sector divisions or RMs concerned should identify major implementation activities and include them in the implementation schedule, which is attached as an appendix in the report and recommendation of the President (RRP). The implementation schedule should follow the critical path of the project’s major activities in project implementation taking account of various country, sector, and project constraints.

2. Assignment of Weights

6. Corresponding weights for each activity should be assigned to ensure that “project progress" measures the percentage of achievement (nonfinancial except when the project has credit components) for all events during the entire duration of the implementation schedule. To avoid disproportionate assignment of weights, to the extent possible these should be evenly distributed along the implementation schedule. When activities are concurrent, avoid “double counting.”

3. Computation of Project Progress

7. Once all activities are identified and corresponding weights assigned, project progress should be calculated using the following steps:

(i) Determine the actual percentage progress (nonfinancial) of each activity. (ii) Multiply these percentages by the assigned weight of each activity to arrive at the weighted progress. (iii) Add up the resulting weighted progress of all activities to determine the project progress.

Page 3 of this Appendix provides an illustration of this calculation using a generic sample implementation schedule and this Appendix, page 4 a specific example in the education sector.

Appendix 8 Page 4

Implementation Schedule with Activities and Weights

Yr1 Yr2 Yr3 Yr4 Yr5

A

a B

b C d c D ef A C T I V T I E S A

E

1. Sum of all weights should equal 100 percent (a+b+c+d+e+f+g = 100%) 2. When calculating the percentage of “project progress,” all completed activities should be counted as accomplished, regardless of when they were scheduled to be completed. For example, when calculating the percentage of “project progress” after year 3, if activity D is completed in year 3 rather than in year 2, it should still be included in the computation. 3. Total weight of each activity is as follows: Activity A–a; Activity B–b; Activity C–c; Activity D–d; and Activity E–e + f +g 4. Project progress of a project is the summation of the actual percentage of progress for each activity multiplied by the total weight of each activity.

Sample Implementation Schedule

(a) (b) (a) x (b) Activities Year 1 Year 2 Year 3 Year 4 Assigned Actual W eighted Weight Progress Progress Establish PIU 5% 100% 6% Establish Accreditation Board, etc. 5% 0% 0% Appoint Staff and Budget 4% 75% 3%

Adopt Architecture Plans 2% 100% 2%

Shortlist Consulting Firms 6% 100% 6% Prepare Fellowship Program 6% 76% 4% Prepare Civil Works Tendering 30% 0% 0% Civil Works: Classrooms, Dorms, etc. 6% 0% 0% Procurement of Furniture and Equipment 16% 10% 2% Field Work of Consultants 7% 0% 0% Provide Fellowships 6% 0% 0% Conduct Study Tours 6% 0% 0% Provide Curriculum Standards 6% 0% 0% Total W eight 100% Imp. Progress 24%

(a) Assigned weight for each activity (b) Actual progress of each activity (a) x (b) weighted progress for each activity Project progress = sum of all weighted progress for each activity

Appendix 9 Page 1

SAMPLE AUDIT LETTER – TO BE CHANGED WITH SIGNED AUDIT LETTER

ASIAN DEVELOPMENT BANK

Regional Department Sector Division / Regional or Resident Mission

[Date]1 [The Borrower] Dear Sir or Madam:

Subject: [Loan No. and Project Title] FINANCIAL REPORTING AND AUDITING REQUIREMENTS

This letter is to ensure your timely compliance with the loan covenants and the quality of financial information as required by ADB. ADB's Handbook for Borrowers on the Financial Governance and Management of Investment Projects Financed by the ADB (the Booklet) is enclosed to guide you.

ADB, by its Charter, is required to ensure that the proceeds of any loan made, guaranteed, or participated in by ADB are used for the purposes for which the loan was approved. ADB requires accurate and timely financial information from its borrowers to be assured that expenditure was for the purposes stated in the loan agreement.

For this particular loan, the requirements are stipulated in sections _____2 and _____3 of the Loan Agreement of ______between ADB and [the Borrower] and sections ______4 and _____5 of the Project Agreement6 of ______between ADB and [name of the EA].7 Copies of the Loan/Project Agreements are enclosed for onward transmission by your office to your EA and the auditor(s), together with a copy of this letter.

The following are the main requirements:

• ADB requires the EA to maintain separate project accounts and records exclusively for the Project to ensure that the loan funds were used only for the objectives set out in the Loan or Project Agreements. The project accounts comprise the following:8 - - The first set of project accounts to be submitted to ADB covers the fiscal year ending ______. As stipulated in the Loan or Project Agreements, they are to be submitted up to ______months after the end of the fiscal year. For this loan, the deadline is by ______. A sample report format with explanatory notes, is attached as Annex A.

• The accounts and records for the project are to be consistently maintained by using sound accounting principles. Please stipulate that your external auditor is to express an opinion on whether the financial report has been prepared using international or local generally accepted accounting standards and whether they have been applied consistently.

ADB prefers project accounts to use international accounting standards prescribed by the International Accounting Standards Committee. Please advise your external auditor to comment on the impact of any deviations, by [name of the Executing Agency] from international accounting standards.

• Please ensure that your external auditor specifies in the Auditor's Report the appropriate auditing standards they used, and direct them to expand the scope of the paragraph in the Auditor's Report by disclosing the key audit procedures followed. Your external Appendix 9 Page 2

auditor is also to state whether the same audit procedures were followed for all supplementary financial statements submitted.

ADB wishes that auditors conform to the international auditing standards issued by the International Federation of Accountants. In cases where other auditing standards are used, request that your external auditor to indicate in the Auditor's Report the extent of any differences and their impact on the audit.

• The external auditor's opinion is also required on whether

- the proceeds of the ADB's loan have been utilized only for the project as stated in the Loan Agreement; - the financial information contains data specifically agreed upon between [name of the Borrower or EA] and ADB to be included in the financial statements; - the financial information complies with relevant regulations and statutory requirements; and - compliance has been met with all the financial covenants contained in the Loan or Project Agreements.

• The Auditor's Report is to clearly state the reasons for any opinions that are qualified, adverse, or disclaimers.

• Actions on deficiencies disclosed by the external auditor in its report are to be resolved by [name of Borrower or Executing Agency] within a reasonable time. The external auditor is to comment in the subsequent Auditor’s Report on the adequacy of the corrective measures taken by [name of Borrower or EA].

Compliance with these ADB requirements will be monitored by review missions and during normal project supervision, and followed up regularly with all concerned, including the external auditor.

Yours sincerely,

Director / Country Director (Sector Division/ Regional or Resident Mission) cc: (EA) (External auditor of the Borrower or EA)

2 Specify section no. in the loan agreement on maintaining project accounts and records.

3 Specify section no. in the loan agreement on the audit requirements.

4 Specify section no. in the project agreement on maintaining project accounts and records.

5 Specify section no. in the project agreement on the audit requirements.

6 If there is a project agreement.

7 When more than one project agreement, provide similar information.

8 Listed are standard accounts required from nonrevenue-earning entities. Try to identify specific titles of financial statements expected to be submitted by the Borrower and EAs. For revenue-earning entities, the submissions consist of the entities’ audited financial statements. For nonrevenue-earning entities, the submissions consist of audited project accounts.

Appendix 10 Page 1

Major Loan Covenants

Covenant Due Date Remarks Particular Covenants Art. IV, Sect. 4.02 (a). The Beneficiary shall (i) maintain, or cause to be maintained, separate accounts for the During project project, including separate accounts for the loan and grant; implementation (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards During project consistently applied, by independent auditors whose implementation qualifications, experience and terms of reference are acceptable to ADB; (iii) furnish to ADB certified copies of such audited accounts and financial statements and the report of the auditors relating thereto Not later than 6 months (including the auditors’ opinion on the use of the loan proceeds after the end of each and grant proceeds and compliance with the financial covenants related fiscal year of the financing agreement as well as on the use of the procedures for imprest account/statement of expenditures, all in the English language; and (iv) furnish to ADB such other information concerning such accounts and financial statements and the audit thereof as ADB During project shall from time to time reasonably request. implementation

Art. IV, Section 4.02 (b). The Beneficiary shall enable ADB, upon During project ADB’s request, to discuss the Beneficiary’s financial statements implementation for the project and its financial affairs related to the project from time to time with the auditors appointed by the Beneficiary pursuant to Section 4.02(a) of Article IV, and shall authorize and require any representative of such auditors to participate in any such discussions requested by ADB, provided that any such discussion shall be conducted only in the presence of an authorized officer of the Beneficiary unless the Beneficiary shall otherwise agree.

Executing and Implementing Agencies Sched. 5, para. 1. As the Project Executing Agency, MOWRAM During project shall be responsible for implementation of Component 1B of the implementation Project and overall Project Management.

Sched. 5, para. 2. The PLAU in each participating province shall During project be the IA responsible for component 1A of the project. Approved implementation subprojects under component 1A and funded by the CDF shall be implemented by participating communes with technical support by the appropriate IA. MRD shall be the IA responsible for implementation of component 1C of the project.MAFF shall be the IA responsible for implementation of component 2 of the project.

Project Implementation and Coordination National Level Sched. 5, para. 3. The Beneficiary shall establish a Project During project Steering Committee (PSC) to oversee and coordinate Project implementation implementation with membership including' representatives from MOWRAM, MEF, MAFF, MRD, MOI, MOE and MOWA, and chaired by the Minister, MOWRAM or his/her delegate. The PSC shall meet on: quarterly basis for the first twelve (12) After the effective date months; at least every six (6) months thereafter, or more During project frequently as needed. Within two (2) weeks after each meeting, implementation the Beneficiary shall submit a copy of the meeting's Minutes to ADB.

Appendix 10 Page 2

Covenant Due Date Remarks Sched. 5, para. 4. The Beneficiary shall cause MOWRAM to establish a PMO to be responsible for Project management and act as the Secretariat for the PSC. The PMO shall be headed by a Project Director, who shall be a senior level official from MOWRAM; and staff shall include those seconded from the As, supported by appropriately qualified and experienced technical and accounting staff who have had experience with ADB procedures, rules and guidelines and who shall be responsible for consultant recruitment, procurement, funds withdrawal, disbursement and reimbursement. The PMO shall have four Deputy Directors, one each from MOWRAM, MRD, MOI and MAFF, who shall be responsible for management and supervision of the activities of their respective lAs.

Provincial Level Sched. 5, para. 5. The Beneficiary shall have caused a Provincial Within three (3) months Coordination Committee (PCC) to have been established in each of the Effective Date Participating Province, chaired by the provincial governor or his/her delegate, with membership consisting of the provincial directors of PDWRAM, PDA, PDRD, and provincial Department of Environment, and the Chief of the PLAU, and shall be responsible for coordination of the Project at the provincial level.

Sched. 5, para. 6. The Provincial Director of each IA and the Chief of the PLAU shall identify the technical staff within the IA responsible for implementing the Project at the provincial level and appoint those whose qualifications are acceptable to ADB.

Sched. 5, para 7. The Beneficiary shall cause the IAs to prepare a PAWPB for consolidation by the PMO which shall then submit the PAWPB to the PSC for review and approval, with copies of the approved PAWPB furnished to ADB for its concurrence, and to MEF and each IA. The PMO shall conduct an annual midyear review and, if required, adjust the PAWPB as appropriate.

Commune Level Sched. 5, para. 8. The Beneficiary shall cause the EA to release Within two (2) months of the equivalent of $1,000 to each Participating Commune to enable the commencement each Participating Commune to retain two CCSs to assist in date of work by the preparing possible subprojects for inclusion in the Project. In order consultants selected to receive such payment, and future block grants, the Participating pursuant to the Sched. Commune shall establish an account for the Grant proceeds at a 4 of the FA commercial bank acceptable to ADB.

Subproject Selection Process Sched. 5, para. 9. The Beneficiary shall ensure, through the EA and IAs, that subprojects meeting the selection criteria as specified in Schedule 5 of the Financing Agreement (para. 11- 22), (or other proposed subprojects under Component 1A not identified below but approved by ADB on a case-by-case basis), are identified and selected, through the decentralized planning process currently used to prepare five-year commune development plans, annual commune investment plans and annual provincial investment plans, resulting in the inclusion of the Subproject in the PAWPB. The relevant IA shall assist the Participating Communes in carrying out the pre-investment studies needed to (i) assess the feasibility of the proposed infrastructure investment; (ii) prepare the design and cost estimates; (iii) assess environmental impact, if any; (iv) assess resettlement impact, if any; and (v) prepare an Appendix 10 Page 3

Covenant Due Date Remarks O&M plan. A potential subproject shall not be approved for inclusion in the Project if it will cause significant involuntary resettlement or negative environmental impact or is located within or adjacent to environmentally sensitive areas.

Sched. 5, para. 10. The Beneficiary shall ensure that no eligible subproject is included in the Project until the PAWPB has been approved by the PSC and submitted to ADB for concurrence on a no-objection basis, i.e., it shall be deemed approved 30 (thirty) days after submission to ADB unless the PSC is notified otherwise.

Component 1A-Social Infrastructure Subproject Selection Criteria Sched. 5, para. 11. The Beneficiary shall ensure that each Participating Commune may receive a maximum block grant up to $75,000 equivalent deposited in a CDF for Component 1A of the Project, with the equivalent of $20,000 as a maximum for each small scale infrastructure.

Sched. 5, para. 12. Village Markets and other Commercial Support Infrastructure. The Subproject may include site development, construction of covered floors for establishing shops and trading of fresh and dry produce, and provision of water supply and sanitation facilities for those markets, provided (i) the markets are conveniently located on public lands, (ii) will not require any involuntary resettlement, and (iii) rents for the use of market space are sufficient to meet all O&M costs and a portion of the investment costs and such income is then used for future expansion and rehabilitation works.

Sched. 5, para. 13. Communal Grain Dryers. The Subproject may support construction of community managed grain dryers using local technology and materials, provided (i) farmers have formed village-based groups to own and operate the dryers, (ii) the group has a minimum of 15 households, and (iii) the group will contribute not less than 10% of the construction costs in cash and/or in-kind, excluding the cost of land which will be voluntarily provided by the Participating Commune.

Sched. 5, para. 14. Rural Roads., The Subproject may support the rehabilitation and improvement of rural roads, provided (i) the rehabilitation and improvement does not require any significant changes in road alignment, land acquisition or resettlement, (ii) local capacity within the Participating Commune is adequate to prepare the scheme and supervise the Works without substantive technical guidance and support from PDRD, (iii) the Participating Commune agrees to undertake routine maintenance of the road after its rehabilitation and improvement, and (iv) the road does not extend within 1,000 meters of the buffer zone of the Tonle Sap Biosphere Reserve.

Sched. 5, para. 15. Commune Council Buildings. The Subproject may support construction or rehabilitation of commune council buildings and office furniture, provided the Participating Commune has not been the recipient of similar facilities under the ADB assisted Commune Council Development Project (CCDP) or CCDP 2. The Participating Commune must have unoccupied public land available for the building and must follow the standard design developed under CCDP.

Appendix 10 Page 4

Covenant Due Date Remarks Sched. 5, para. 16. Irrigation Infrastructure. The Subproject may support small-scale rehabilitation of irrigation schemes, provided (i) each scheme will benefit a minimum of ten (10) households, with at least one-third of those households living below the poverty threshold, (ii) the benefiting households form an FWUG in order to qualify for participation in subproject planning, design, implementation and O&M, (iii) the benefiting households will contribute 15% of the construction cost in cash and/or in kind; (iv) the rehabilitation will not require complex design or heavy construction equipment, (v) the Participating Communes, with technical support from PDWRAM, are able to design and supervise the Works, and (vi) qualified local contractors/community organizations are available to undertake the Works.

Sched. 5, para. 17. School Class Rooms. The Subproject may select schools for which to build additional classrooms, provided (i) teachers are available for the additional classrooms, (ii) the Participating Commune has not received similar support during the previous five (5) years, (iii) the classrooms will be built on public land that is not the subject of dispute, and (iv) the Participating Commune has not been included in ADB's Education Sector Development Project or ADB's Second Education Sector Development Project.

Sched. 5, para. 18. Village Water Supply and Sanitation. The Subproject may support (a) the development and/or rehabilitation of dug wells, hand pumps, ponds, rainwater harvesting facilities for water supply, and (b) sanitation facilities such as rehabilitation or construction of individual household latrines, and construction of public latrines in schools and other public areas, provided the Participating Commune has not been included in ADB's Tonle Sap Rural Water Supply and Sanitation Sector Project.

Component 1B - Agricultural Water Management Subproject Selection Criteria Sched. 5, para. 19. The total cost of an individual Subproject under Component 1B shall not exceed the equivalent of $100,000.

Sched. 5, para. 20. The Subproject may support (a) rehabilitation of small water management subprojects, generally less than 200 hectares but with larger coverage on a case-by case basis, with a total coverage of approximately 9,600 hectares, with fully developed channels to on-farm level, and (b) formation, strengthening and capacity building of FWUG and FWUC for participatory planning, design and implementation, and sustainable O&M, provided the proposed subproject (i) has assured water availability for four out of five years for the dry season crop, (ii) has medium potential soils acceptable to the Beneficiary's soil series standards, (iii) can be certified clear of unexploded ordinance to Cambodia Mines Authority standards, (iv) has a unit development cost that does not exceed the equivalent of $550 per hectare, including costs of survey, design, resettlement, civil works, and mitigation of environmental impacts, and (v) benefits households which will contribute 15% of the construction cost in cash and/or in-kind.

Component 1C – Rural Roads Subproject Selection Criteria Sched. 5, para. 21. The total cost of an individual Subproject under Component 1C shall not exceed the equivalent of $100,000. Appendix 10 Page 5

Covenant Due Date Remarks

Sched. 5, para. 22. The Subproject may support (a) rehabilitation of approximately 230 kilometers of rural roads to MRD standards for- rural roads, including resurfacing and spot repairs; (b) provision of individual bridges and ford crossings, and (c) organization and training of the Participating Commune's Rural Road Maintenance Committee, including provision of basic road maintenance tools, provided the proposed subproject (i) connects villages to commune centers and to main highways, (ii) there is an adequate right of way to conform with Type B road specifications, and (iii) the road does not extend within 1,000 meters of the buffer zone of the Tonle Sap Biosphere Reserve.

Environmental Management Sched. 5, para. 23. The Beneficiary shall ensure that its laws and regulations governing environmental impact assessments, as well as ADB's Environment Policy (2002), are followed. If there is any discrepancy between the Beneficiary's laws and regulations, and ADB's Environment Policy, then the ADB Policy requirements shall apply.

Sched. 5, para. 24. The Beneficiary shall ensure that each IA in the Participating Provinces carries out environmental screening for all proposed subprojects to determine the environmental categorization and prepare the necessary environmental safeguard documents for inclusion. in the PAWPB. The Beneficiary shall cause MOWRAM to ensure: (a) environmental assessment documents are based on the environmental screening checklists and on the sample IEE. prepared during Project preparation; (b) meet ADB's Environment Policy requirements; (c) IEEs include details of local consultation carried out; and (d) lEEs are submitted to ADB for approval prior to commencing activities under a Works contract for a Subproject if any critical environmental issues have been identified.

Sched. 5, para. 25. The Beneficiary shall cause MOWRAM to ensure that the contract documents for all works under the Project include specific measures in accordance with ADB's Environment Policy to mitigate negative environmental impacts caused by the construction and to give due consideration to prevention of damage to the natural environment in the design, construction, operation and maintenance of Project facilities.

Sched. 5, para. 26. The Beneficiary shall cause MOWRAM to (a) utilize the previously agreed upon Environmental Assessment Review Framework (EARF) to implement the Project, (b) monitor contractors' implementation of civil works, including environmental mitigation measures identified during Subproject preparation, and (c) designate its environmental officers as responsible for EARF implementation.

Land Acquisition and Resettlement Sched. 5, para. 27. The Beneficiary shall ensure that persons affected in their land or business by the Project are compensated for any losses and that all activities are carried out in accordance with the agreed upon RF and any RP prepared in accordance with the Beneficiary's laws, regulations, and procedures, and ADB's requirements as defined in ADB's Involuntary Resettlement Policy (1995). In case of discrepancies between the Beneficiary's laws, regulations, and procedures and ADB's requirements, ADB's requirements shall apply. Short RPs for Subprojects shall be Appendix 10 Page 6

Covenant Due Date Remarks prepared in accordance with, and as required by, the RF and disclosed to affected persons prior to submission to ADB for review and approval. ADB's approval of an RP shall be a precondition to award of works contracts.

Sched. 5, para. 28. The Beneficiary shall ensure that, in the event of a voluntary donation of land for use by a Subproject, then the voluntary nature of the donation is documented by written record and verified by an independent third party.

Sched. 5, para. 29. The Beneficiary shall ensure that an adequate grievance mechanism system is in place for disputes regarding compensation or other matters as a result of land acquisition or resettlement.

Sched. 5, para. 30. The Beneficiary shall ensure that all compensation and resettlement activities are satisfactorily completed and income restoration measures in place, in accordance with the RF, before commencement of any works.

Sched. 5, para. 31. The Beneficiary shall ensure that the relevant IA or line ministry provides MOWRAM and the Interministerial Resettlement Committee (IRC) with monthly reports on any required land acquisition or resettlement. MOWRAM shall provide ADB and IRC with quarterly status reports on any land acquisition and resettlement process as part of the progress reports required by this Financing Agreement and shall provide a report immediately following completion of an RP's implementation.

Independent Monitor Sched. 5, para. 32., The Beneficiary shall cause MOWRAM to Within six (6) months of engage an independent external monitor engaged under a terms the Effective Date of reference as agreed upon by MOWRAM and ADB to undertake regular in-field evaluations of RF and RP implementation with reports provided to the EA and ADB every six (6) months. Gender and Related Risks Sched. 5, para. 33. The Beneficiary shall cause MOWRAM to ensure that the Gender Action Plan prepared for the Project and agreed upon by the Beneficiary and ADB is fully implemented and resources allocated in a timely manner. This includes, but is not limited to, ensuring that (i) one of the two CCSs for each Participating Commune is female; (ii) at least 30% (thirty percent) of the management committee for all groups formed under the Project (including, but not limited to, FWUG, FWUC, rural road maintenance committee, livelihood improvement group, and agricultural improvement group) are female and at least 30% (thirty percent) of all group members are female; (iii) at least 30% (thirty percent) of participants in the Project's aggregated training programs, including training in O&M, and training on matters related to entrepreneurship, are female, with a minimum 15% (fifteen percent) being female in any one training program; and (iv) there are separate meetings for men and women during proposed subproject preparation in order that women may express needs and preferred technical options.

Sched. 5, para. 34. The Beneficiary shall ensure that MOWRAM nominates a member of its Gender Mainstreaming Action Group as responsible for Project monitoring and assisting with implementation of the Gender Action Plan. The Beneficiary shall further ensure that at least one person in each Participating Province is nominated as a gender focal person responsible for Appendix 10 Page 7

Covenant Due Date Remarks provincial level Project monitoring and assisting with implementation of the Gender Action Plan.

Sched. 5, para. 35. The Beneficiary shall ensure that Works contract documents include the following provisions: (i) mandatory provisions on health, sanitation and appropriate working conditions; (ii) requirements that the contractor comply with all applicable labor laws, including elimination of gender differentiated employment conditions, wages or food rations, (iii) that it will not employ child labor in construction activities; and (iv) that a minimum of 35% (thirty-five percent) of paid unskilled laborers are women.

Ethnic Minorities Sched. 5, para. 36. In the event any ethnic minorities are affected by, or are beneficiaries of, any Subproject, the Beneficiary shall ensure that the IA responsible for the Subproject prepares and implements an ethnic minorities specific actions plan for the relevant Subproject.

Governance Sched. 5, para. 37. The Beneficiary shall, in order to ensure within six (6) months of transparency and good governance, cause MOWRAM to have the Effective Date established a Project specific web site and shall publicly disclose on this web site information on how Loan and Grant proceeds are being used, presenting procurement contract awards, including for each such contract (i) the list of participating bidders, (ii) name of the winning bidder, (iii) basic details on bidding procedures adopted, (iv) amount of the contract awarded, (v) list of Goods and/or services purchased, (vi) intended and actual utilization of Loan and Grant proceeds under each contract, and (vii) the report(s) submitted by the independent external monitor. The website shall be updated within four (4) weeks after each award of contract or after submission of the external monitor's report, as applicable. Sched. 5, para. 38. The Beneficiary shall cause MOWRAM to ensure that Project staff are fully knowledgeable of and comply with the Beneficiary's and ADB's procedures, including, but not limited to, procedures for (i) implementation, (ii) procurement, (iii) use of consultants, (iv) disbursement, (v) reporting, (vi) monitoring, and (vii) prevention of fraud and corruption.

Sched. 5, para. 39. The Beneficiary shall cause the establishment at the offices of Participating Communes of a reporting system that discloses Project information, including a public notice board displaying information on (i) the list of participating bidders for a Works contract, (ii) name of the winning bidder, (iii) basic details on bidding procedures adopted, (iv) amount of the contract awarded, and (v) list of Goods and/or services procured.

Sched. 5, para. 40. The Beneficiary shall cause MOWRAM to establish a Complaints and Action Task Force within the PMO to receive and resolve complains or grievances and act upon reports on the misuse of funds or other irregularities. The Beneficiary shall cause MOWRAM to, when publishing bid evaluation results, also specify that any bidder that wishes to ascertain the grounds on which its bid was not selected may request an explanation from MOWRAM or the relevant IA. MOWRAM or the relevant IA shall promptly (within 20 working days) provide an explanation of why such bid was not selected, either in writing and/or in a debriefing meeting, at the option of MOWRAM or the relevant IA. The Appendix 10 Page 8

Covenant Due Date Remarks requesting bidder shall bear all the costs of attending such a debriefing.

Sched. 5, para. 41. The Beneficiary shall cause MOWRAM to widely publicize the existence of the Integrity Division within ADB's Office of the Auditor General as a point of contact for allegations of fraud, corruption and abuse among ADB-financed projects or any EA or IA staff.

Sched. 5, para. 42. The Beneficiary shall ensure that all advances of operating expenses paid to EA or IA staff are reconciled within one (1) week of the end of each month. No further advances shall be paid until previous advances have been reconciled and cleared against documentary evidence.

Sched. 5, para. 43. The Beneficiary shall notify civil society organizations active in the Participating Provinces of selected events and that they are invited to observe those selected events, such as: public bid openings, contract signings, meetings to review Project progress, hand-over ceremonies for Project facilities, and others as identified by MOWRAM. All activities undertaken by the identified civil society organizations with regard to the Project shall be included in the quarterly progress reports described in paragraph 48 of this Schedule.

Sched. 5, para. 44. In addition to remedies available to ADB under its Anticorruption Policy (1998 as amended to date), Loan Regulations and Grant Regulations, the Beneficiary agrees that the following actions may also be applied in the event corrupt activities are have been investigated and confirmed to the satisfaction of ADB: notification to the EA of wrongdoing by any person associated with the Project for further appropriate action by the Beneficiary, requiring the EA or any IA to remove an individual from further involvement in the Project, and declaring a misprocurement has occurred with regard to a Participating Province, EA or IA. Counterpart Contribution and Funds Sched. 5, para. 45. The Beneficiary, shall ensure that all necessary counterpart funds for Project implementation at the national level are provided in a timely manner and, to such end, the Beneficiary shall make timely submissions of annual budgetary appropriation requests and take all other measures necessary or appropriate for prompt disbursement of appropriated funds to the Participating Provinces and Participating Communes during each year of Project implementation.

Sched. 5, para. 46. The Beneficiary shall ensure timely provision of counterpart funds in the form of exemption from taxes and duties. Counterpart funding may also be used, as needed, for clearance of unexploded ordnance (UXO) in the Project area. in the event UXO clearance is needed, the Beneficiary and MOWRAM shall remove, at its own cost, all UXOs suspected to exist on Subproject sites. Further, the Beneficiary and MOWRAM shall engage the services of a reputable and experienced mine clearance organization, acceptable to ADB, to confirm Subproject area clearance. The Beneficiary shall ensure that no activities commence under a Subproject until UXO clearance has been completed and certification to that effect has been obtained.

Reporting Sched. 5, para. 47. The Beneficiary shall ensure that the IAs in each Participating Province and the EA prepare monthly financial Appendix 10 Page 9

Covenant Due Date Remarks reports for submission to the PMO by the 15th day of the following month.

Sched. 5, para. 48. The Beneficiary shall ensure that the !As in each Participating Province and the EA prepare quarterly progress reports for submission to the PMO within fifteen (15) days of the end of each quarter for consolidation and reporting to ADB. The quarterly report shall include: (i) a narrative description of progress made by each Project Component and the Project as a whole during the reporting period; (ii) modifications, if any, to the implementation schedule; (iii) details of land use and resettlement; (iv) implementation of the EARF; (v) major Project activities by PMO, EA and lAs; (vi) financial and procurement-related information; (vii) problems experienced and remedial actions proposed; and (viii) the work to be carried out during the upcoming reporting period. All data shall be sex-disaggregated where relevant. Progress reports shall include gender-related achievements (e.g., number and level of participation of women in meetings and committee decisions) and constraints. Quarterly reports shall be submitted to ADB, PSC, !As and to MOWRAM's Gender Mainstreaming Action Group within thirty (30) days of the end of each quarter.

Project Performance Monitoring Systems (PPMS) Sched. 5, para. 51. The Beneficiary shall ensure that MOWRAM operates a PPMS system throughout Project implementation to: (i) examine the Project's technical performance; (ii) evaluate delivery of Project facilities; (iii) assess achievement of the Project's objectives; and (iv) measure the Project's social, economic, financial, and institutional impacts. Socioeconomic data shall be disaggregated by income group, gender and, where applicable, ethnic group. Sex-disaggregated indicators shall be established for PPMS, and monitoring shall be on-going to ensure activities are effectively carried out and targets reached.

Sched. 5, para. 52. The EA and IAs shall be responsible for Within six (6) months of carrying out PPMS activities. The PMC shall establish baseline the Effective Date or data for each Participating Commune. Baseline data for each within six (6) months of Participating Commune shall be assembled from the Beneficiary's selection of a commune sources, household surveys and participatory monitoring as a Participating activities. Annual PPMS reports shall be prepared by the EA and Commune, whichever is each IA for consolidation by the PMO and submission to ADB earlier within two (2) months of the end of the reporting period.

36

XII. ANTICORRUPTION

62. The Government was advised of ADB’s Anticorruption Policy (1998, as amended to date) and Combating Money Laundering and the Financing of Terrorism Policy (2003). Consistent with its commitment to good governance, accountability and transparency, ADB will require the Government to institute, maintain, and comply with internal procedures and controls following international best practice standards for the purpose of preventing corruption or money laundering activities or the financing of terrorism and covenant with ADB to refrain from engaging in such activities. The investment documentation between ADB and the Government will further allow ADB to investigate any violation or potential violation of these undertakings. In particular, all contracts financed by ADB in connection with the Project shall include provisions specifying the right of ADB to audit and examine the records and accounts of the EA and all contractors, suppliers, consultants, and other service providers as they relate to the Project. To encourage greater stakeholder participation and vigilance and to ensure greater transparency and accountability the Project will do the following:

(i) Build capacity within the EA to understand and comply with ADB and government procedures as outlined in the project administration manual. (ii) Widely publicize the existence of the integrity division within ADB’s Office of the Auditor General as the initial point of contact for allegations of fraud, corruption, and abuse among ADB-financed projects or its staff. (iii) Establish a project website to disclose information about various project-related issues, including procurement. The website will include information on, among others, the list of participating bidders, name of the winning bidder, basic details on bidding procedures adopted, amount of contract awarded, and the list of goods/services procured. Any bidder may request an explanation from the EA/IA as to why a bid was unsuccessful. The EA/IA will respond within 20 working days. (iv) Establish a reporting system at commune council offices to disclose information about various project-related issues, including procurement. A public notice board will display information on, among others, the list of participating bidders, name of the winning bidder, basic details on bidding procedures adopted, amount of contract awarded, and the list of goods/services procured. (v) Notify civil society organizations of the date and location of selected events in the procurement process, including public bid openings, contract signings, progress reviews, and handover ceremonies. (vi) Set up a complaints and action task force at the PMO to receive and resolve complaints/grievances or act on reports from stakeholders on misuse of funds and other irregularities.

63. Disbursement to individual communes, provinces, or IAs will be suspended if misprocurement or other irregular procurement action occurs and is not resolved to the satisfaction of ADB. Individual staff of the EA/IAs will be removed from the Project in the event of their confirmed participation in cases of corrupt practices. ADB is processing a TA on Public Financial Management to assist MAFF, MOWRAM, and MRD to strengthen internal audit procedures and ensure improved financial management and transparency in operations. The TA is expected to be implemented in 2008, coinciding with implementation of the Project, and it is anticipated that relevant findings of the TA will be incorporated in the Project.

37

XIII. OTHERS

64. The following framework, matrix and action plan has been added to this PAM for guidance and can be found starting from Appendix 9.

• Gender Action Plan • Good Governance Framework • Summary Environmental Assessment • Environmental Assessment and Review Framework • Summary Resettlement Framework • Resettlement Framework • Resettlement Entitlement Matrix

38

XIV. KEY CONTACT PERSONS/ORGANIZATIONS

I. Asian Development Bank (ADB) The ADB’s Agriculture, Environment and Natural Resources Division (SEAE) of the Southeast Asia Department (SERD) is responsible for the implementation of the Tonle Sap Lowlands Rural Development Project in ADB. The ADB Cambodia Resident Mission (CARM) will support SEAE in coordinating implementation activities.

A. ADB Headquarters Director, SEAE : Urooj Malik

Project Economist/Project Officer : Ian Makin Tel. No. (632) 632-6973; 632-5803 Email: [email protected]

Financial Control Specialist : Oliver Domagas Tel No. (632) 632-4545 Email: [email protected]

Associate Project Analyst : Cynthia Razon Tel. No. (632) 632-4622 Email: [email protected]

Address : Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines or P.O. Box 789, 0980 Manila, Philippines

Facsimile : (632) 636-2444 (ADB’s main fax) (632) 636-2231 (SEAE)

Telephone : (632) 632-4444

ADB’s website : http://www.adb.org

B. ADB Cambodia Resident Mission Project Contactr : Alain Goffeau

Address : 29, Suramarit Street (268/19) Sangkat Chaktomuk, Khan Daun Penh Phnom Penh, Cambodia

Facsimile : +855 23 215807

Telephone : +855 23 215805, 215806, 216417

39

II. Executing Agency The Executing Agency of the Project is the Ministry of Water Resources and Meteorology (MOWRAM).

Project Director : H.E. Veng Sakhon, Secretary of State, MOWRAM

Address : #47 Norodom Blvd, Phnom Penh Cambodia

Facsimile :

Telephone : +855- 12263999/ 23725327

III. Exchange of Communication All official letters/correspondence/fax messages, etc. must be signed by the Project Director, Secretary, MOWRAM and addressed to Director, SEAE.

Appendix 11 Page 1

GENDER ACTION PLAN

1. In Cambodia, women play vital roles in the economic activities of rural households. They contribute significantly to the agricultural labor force, estimated to represent about 74% of male and 77% of female employment, mainly in rice production and fishery. They also engage in a wide range of livelihood activities, typically including collecting firewood for sale, running small businesses, and raising and selling livestock, which contribute to household income. In addition, women are predominately responsible for domestic chores such as cooking, taking care of children, and fetching water and fuel often from great distances.

2. Despite women’s high contribution to household income, there is a continuing gender inequality in their access to paid employment, financial capital, and skills training. Women’s participation in community decision making is also limited as Khmer tradition (Chbap Srey) ascribes a passive role to women. At present, only about 3–5% of members of farmer water user group (FWUG) committees are female. The Ministry of Water Resources and Meteorology (MOWRAM) is attempting to increase women’s participation in decision-making bodies at commune level to about 10% by 2010.

3. Poverty in the project area has strong gender dimensions. In the project target communes, the proportion of female-headed households ranges from 8% to 36% based on data from the 2005 Commune Database. Female-headed households are poorer—they constitute 41% of the poor and 32% of the poorest wealth categories compared with 18% of rich households and 24% of middle wealth households. The Tonle Sap participatory poverty assessment also indicates that they are more vulnerable to external shocks and social stigma because of the lack of male labor in the household.

4. This gender action plan (GAP) has been prepared to ensure gender equality in the distribution of project benefits and to enable active engagement by women in subproject design and implementation. Gender responsive interventions will be selected to respond to the specific needs of women in the project area. The implementation arrangements and estimated costs of the GAP have been incorporated in the overall project design and costing. The implementation schedule of the GAP will be in line with the overall implementation of the Project. The key principles underlining the GAP are as follows.

(i) Subproject preparation. The Project will engage both female and male commune facilitators to the extent possible. Separate meetings for men and women will be held during subproject preparation so that women will be fully informed about the Project and can express their needs and preferred technical options. Women will be consulted before deciding on infrastructure locations and design. The Project will recruit an international community development specialist (6 person-months, intermittent) with gender background and expertise to ensure that this GAP will be appropriately implemented by commune facilitators. (ii) Subproject implementation. The Project will engage female trainers to the extent possible. During subproject construction, the Project will also hire women, particularly female-headed households and poor women (at least 35% of unskilled laborers on project investments are expected to be women because men migrate to work outside the communes), and ensure equal pay for men and women for work of equal value. The Project will work to increase the participation of women in commune decision making: a minimum of 30% female representation in all commune committees and groups will be targeted in project communes. Appendix 11 Page 2

(iii) Training. The Project will recruit a national gender specialist (12 months, intermittent) so that gender sensitization and training in gender-sensitive design will be provided during project orientation in the inception phase for all levels of project staff, implementation consultants, contractors, commune facilitators, commune councilors, and other stakeholders in order to emphasize the link between the GAP and project performance. The sessions on gender analysis and gender-sensitive monitoring indicators will be included in project management training for project staff and commune councilors to promote gender-responsive subproject preparation, implementation, monitoring, and reporting. (iv) Monitoring and Evaluation. Gender-disaggregated data will be collected during subproject preparatory surveys (e.g., baseline survey and household surveys). Subproject feasibility studies will include gender-disaggregated and/or gender-specific targets and indicators, and those indicators will be monitored and reported in project quarterly progress monitoring reports. MOWRAM’s Gender Unit will be involved during project review missions. A senior representative of the Ministry of Women’s Affairs will participate in the project steering committee to ensure that the executing and implementing agencies are aware of national gender action plans and commitments. (v) Resettlement. At all stages involving involuntary resettlement, resettlement identification, planning and management, the Project will ensure that gender concerns are incorporated—including gender-specific consultation and information disclosure. This includes special attention to guarantee women’s assets, property, and land-use rights; and to ensure the restoration of their income and living standards. Resettlement planning and monitoring documents will include gender-disaggregated data.

Table A13: Gender Action Plan

Component Actions Proposed Output 1: Rural • Female commune facilitators (1 female and 1 male commune facilitator per Infrastructure commune) will be hired to enable women’s participation during subproject • Improvement and preparation so that the commune investment plan can reflect women’s preferences. Development of Gender-sensitization training will be part of project orientation training for project Community-Driven staff, contractors, consultants, male and female commune facilitators, commune Social Infrastructure councilors, and other stakeholders involved in subproject preparation. (e.g., village • Separate meetings for women and men related to subproject preparation will be markets, village held. Women will be fully informed about the Project, including their expected roads, and contributions. They will be consulted on the location and design of facilities. drainage) • Female commune assistants will help women in each village to select their female

representatives; these representatives will participate in the consolidation of the • Improvement of commune investment plan to ensure that women’s interests are included; then, they Agricultural Water will brief their constituents on the ongoing and planned activities. Management • At least 30% of training participants related to operation and maintenance (O&M) of Infrastructure selected infrastructure, including the O&M transfer strategy, will be women.

• Gender-sensitive training material in local languages, predominantly Khmer, will be • Improvement of prepared in close consultation with beneficiaries, particularly women. Rural Roads and Communication • The extent of women’s participation will be monitored and incorporated in the Infrastructure project progress reports by the provincial gender focal points and project management office (PMO) member responsible for gender. • At least one committee member will be female and all groups (e.g., farmer water user group, rural road maintenance committee) will have a minimum of 30% female members. • Affected women will be fully informed about the Project, its expected impact, and their entitlements during implementation of the resettlement plan. Special attention will be given to women in severely affected households and female-headed households. Appendix 11 Page 3

Component Actions Proposed • The Project will ensure that contractors’ agreements contain (i) compulsory gender sensitization training for both male and female construction workers, and (ii) an appropriate clause promoting the hiring of women (35% of the unskilled laborers will be women) and equal pay for men and women for work of equal value. Output 2: Rural • Nongovernment organizations and microfinance institutions with a good gender and Livelihood Options development record will be encouraged to provide financial and/or technical Increased services in project areas. • Technical Services • Gender-sensitive training material in local languages will be prepared in close consultation with beneficiaries, particularly women. • Provision of services to women will be encouraged so that at least 30% of project beneficiaries will be women. The extent of women’s participation will be monitored and incorporated in the project progress reports. • At least 30% of the female beneficiaries will be included as participants of training on matters related to MFIs (i.e., how to develop a business plan, MFI requirements), conducted by an experienced and gender-sensitive consultant or NGO. • Separate meetings will be organized for women and men to get their views on categories of on-farm training needs (i.e., kinds of crops, livestock techniques). On- farm training activities, to the extent feasible, will be held in the village or commune and at times convenient to women to enable at least 30% female participation. • A consultant will be hired to conduct an assessment of the local market needs. This will help in designing off-farm training for male and female beneficiaries, and in getting at least 30% female trainees. Output 3: Program • The PMO and project director will be responsible for overseeing the implementation Management of the gender action plan (GAP) and reporting on gender-related achievements in quarterly progress reports to the Asian Development Bank (ADB). • The terms of reference of the implementation consultants’ team leader will include responsibility for ensuring smooth implementation of the GAP and gender- responsive quarterly progress reports to ADB • A representative of the Ministry of Water Resources and Meteorology (MOWRAM) Gender Unit will be appointed a member of the PMO, with responsibility for screening subprojects from a gender-responsiveness perspective, monitoring implementation of the GAP, and quarterly gender-disaggregated reporting. • If the project hires two commune facilitators per commune, one facilitator will be female. • Each implementing agency at the provincial level should appoint a project staff member to be the gender focal point, with responsibility for monitoring implementation of the GAP and for reporting gender-related achievements and constraints to the PMO. • The terms of reference of all consultants will include responsibilities to ensure implementation of the GAP related to their work. • Gender-sensitization training will be carried out as part of the project orientation for all levels of staff, consultants, contractors, commune facilitators, and commune councilors to make them aware of the GAP and receive their participation in developing its implementation plan (i.e., who is responsible for which activity at each level, and the time frame for each activity). • Both female and male staff will be given equal opportunity to participate in non- gender related training and capacity development programs. • An international community development specialist with a gender background and a national gender consultant will be recruited to (i) build the capacity of PMO, project staff, and commune facilitators in gender-responsive design and analysis; (ii) preparation of gender-sensitive indicators; and (iii) preparation of checklists for evaluation of the gender responsiveness of proposed subprojects. • Gender-disaggregated indicators will be established for the project performance monitoring and evaluation system. Monitoring will be ongoing to ensure that activities are carried out effectively and targets reached. Progress reports will include gender-related achievements (e.g., level of participation of women in Appendix 11 Page 4

Component Actions Proposed meetings and committee decisions) and constraints. • The Midterm Review Mission will assess gender-related achievements and constraints to GAP implementation, and propose adjustments for better project performance. Source: Asian Development Bank. Appendix 12 Page 1

Good Governance Framework

In all instances, the Financing Agreement will be the overriding legal document. ADB’s Procurement Guidelines, 2007, as amended from time to time (“Procurement Guidelines”), and ADB’s Guidelines on the Use of Consultants by Asian Development Bank and its Borrowers, 2007, as amended from time to time (“Consulting Guidelines”), will be applied pursuant to the Financing Agreement as they may be modified by that Financing Agreement. The Government’s policies and procedures will be applicable to the extent there is no discrepancy with the Financing Agreement or ADB’s Procurement Guidelines and Consulting Guidelines. In the event there is a discrepancy, then the Financing Agreement, the Procurement Guidelines and the Consulting Guidelines will apply.

No. Issue Action to Mitigate Risk Responsibility Target/Frequency Element 1: Procurement 1.a Risks of The executing agency (EA) EA: Ministry of Water At effectiveness corruption and and implementing agencies Resources and fraud (IAs) to establish national- Meteorology (MOWRAM). and provincial-level IAs: Ministry of Agriculture, procurement committees Forestry and Fisheries under the Project, in (MAFF); Ministry of Rural accordance with the Development (MRD), and Government’s Standard the Provincial Local Operating Procedure and Administration Unit (PLAU) Procurement Manual (SOP/PM), mandated on Ministry of Economy and Throughout Project February 26, 2007. Finance (MEF) to monitor duration. for compliance with the For Project-wide Financing Agreement, procurement, the evaluation ADB’s Procurement committee shall consist of Guidelines and the representatives from all Procurement Manual. relevant line ministries.

1.b Insufficient The EA and IAs are to adhere EA and IAs. Throughout Project procedures strictly to the procedures and MEF to monitor for duration. guidelines set forth in the compliance with the Financing Agreement, ADB’s Financing Agreement, Procurement Guidelines and ADB’s Procurement SOP/PM that also cover Guidelines and the international competitive SOP/PM. bidding, national competitive bidding and shopping. EA/MEF/ADB.

1.c Weak The EA/IAs and commune EA and IAs. Throughout Project procurement councils will receive hands-on duration. capacity training and technical assistance from consultants recruited under the Project. The Government SOP/PM will be used under the EA/MEF/ADB. Throughout Project Project. duration.

Appendix 12 Page 2

No. Issue Action to Mitigate Risk Responsibility Target/Frequency Project to closely monitor and review procurement conduct, and where necessary, take measures to improve ADB to initiate TA 3rd QTR 2007. procurement procedures processing. based on lessons learnt from each successive procurement activity.

Government to receive technical assistance to improve the public financial management for rural development to improve the procurement capacity of the EA and three IAs. 1.d Procurement Preparation of realistic annual EA/IAs, MEF. First year Plan Plans Procurement Plan as guided complete by by the Procurement appraisal and Guidelines, tied to annual attached to Minutes work plan and budget. of Financing Agreement negotiations. Annually thereafter in July. 1.e Informal All contractors, suppliers and EA/IAs and MEF. Throughout Project payments by consultants – firms or duration. contractors, individuals, national and suppliers and international – bidding for consultants contracts under the Project shall sign the Declaration on Ethical Conduct and Fraud and Corruption in the SOP/PM. The Project will include the Declaration in all bidding documents, request for proposals, and contracts. Element 2: Financial Management (FM) 2.a Weak internal Strengthen internal controls EA and IAs. Continue throughout controls by ensuring that the Project Project duration. uses SOP including MEF to monitor for procedures in the Financial compliance with SOP/FMM, Management Manual (FMM), as well as Financing which cover: Agreement and ADB’s • financial policies and Anticorruption Policy. standards; • elements of internal control; • financial accounting system, ledgers, journals; • bank accounts and credit/grant withdrawals; • Project expenditure, payroll, petty cash, advances; and FM reports, audit, counterpart Appendix 12 Page 3

No. Issue Action to Mitigate Risk Responsibility Target/Frequency funds withdrawals. 2.b Weak financial The EA/IAs and commune Throughout Project management councils to receive hands-on EA and IAs. duration. capacity training and technical assistance from consultants recruited under the Project. The Government FMM and SOP will be used under the Throughout Project Project as well as relevant duration. provisions of the Financing EA/MEF/ADB Agreement and ADB’s Procurement Guidelines and 3rd QTR 2007. Consulting Guidelines. ADB to initiate TA Project to closely monitor and processing. review financial management conduct and make necessary improvements as required.

The Government to receive technical assistance to improve the public financial management and capacity for rural development of the EA and three IAs under this Project. 2.c Minimize cash Project to make all progress EA/IAs, commune councils. Throughout Project transactions payments to contractors, duration. suppliers and consultants – firms, individuals, national and international – by check or transfer to bank accounts, and retain evidence for audit and donor supervision missions. 2.d Inconsistency in Project to follow MEF’s EA and IAs to incorporate Throughout Project allowances paid Instruction Letter No. 2000 into Annual Training and duration. to Government dated April 23, 2007 on Workshop Plan. staff attending standard daily subsistence training, allowances. Approved by Project workshops and Director with ADB no 4th QTR annually. study tours Project to establish Annual objection. Training and Workshop Plan Throughout Project with estimated budget. EA/IAs duration.

Each training or workshop to have a detailed budget and expenses approved by the EA and IAs in consultation Project Director. with ADB.

Project to set eligibility rules At time of annual for attending training, work plan workshops and study tours. preparation, and Attendees must: again before each Appendix 12 Page 4

No. Issue Action to Mitigate Risk Responsibility Target/Frequency • be engaged in work training, workshop or relevant to the training, and study tour. • be competent in the language used.

Project to ensure that training, workshops, study tours and other similar activities: Before first training, • are in line with Project aims workshop or study tour. and objectives

• meet identified needs within the subproject plans, and • have budget in line with planned expenditure approved by the EA. Project to seek EA prior approval Each occasion. for any significant plan changes or departures.

Project to set cost guidelines for selected training/workshop activities, including: • venue rental with refreshments/meals • sound and projection equipment hire • stationery/hand-outs • Project-specific training and workshop materials

• simultaneous translators,

and Each occasion. • photocopying, reproduction, translation. Each occasion. Project to define evidence to be submitted by attendees for reimbursement of expenses which may include: • proof of attendance for period claimed with signed statement by the workshop, training or study tour organizer or host • proof of travel by air – ticket stubs, travel agent’s receipt, airline boarding passes • receipted hotel bills (for proof of stay) • receipts for incidental traveling expenses • receipted invoices for venue Appendix 12 Page 5

No. Issue Action to Mitigate Risk Responsibility Target/Frequency rental, food and beverage, sound/projection equipment, hire of simultaneous translator, stationery and handouts, use of photocopying facilities.

Project to reimburse against receipts except where covered by fixed allowances in MEF’s Letter No. 2000.

Project to retain evidence of attendance and payment of attendees’ per diem and allowances. 2.e Delayed or non- Project to reconcile operating EA/IAs directors. Each month. existent expenses to staff or field reconciliation of offices within one week of the advances for end of each month. operating costs EA/IAs directors. Throughout Project and expenses No further advances to be duration. paid until previous advance reconciled and cleared against documentary evidence. Element 3: Disclosure 3.a Conflict of Project staff to disclose Project Director to ensure Throughout Project interest among private and public affiliations all Project staff sign the duration. Project staff or personal interest before disclosures. becoming involved in any Project-related transaction, such as contract award. EA to prepare a declaration statement for staff’s signature. 3.b Inadequate Project to agree information EA and ADB to agree final Agree by transparency and to be disclosed on list. effectiveness. disclosure MOWRAM, MRD, MOI and MAFF websites biannually, Biannually. with hard copies available for Project Director to arrange public inspection on request. disclosure. At a minimum, the Project will disclose the information required by the Financing Agreement. Element 4: Complaints and Remedies Mechanism 4.a Inadequate Project to build well-defined EA in consultation with Effectiveness complaints and mechanism into Project ADB. remedies documents, including sub- Appendix 12 Page 6

No. Issue Action to Mitigate Risk Responsibility Target/Frequency mechanisms procedures specific to particular subproject, if necessary. Throughout Project EA/MEF duration Complaints procedures regarding procurement to follow process set out in Financing Agreement and SOP/PM. Element 6: Code of Ethical Conduct 5.a No overall Code Project to design ethical EA Effectiveness of Conduct for code, acceptable to ADB, for civil servants all Project staff, including contracted staff, to sign individually. Element 7: Sanctions 6.a Inadequate The Project to identify and EA Effectiveness sanctions for apply sanctions available fraudulent and under current law and corrupt activity by regulations of Cambodia, Project staff, ADB’s Loan and Grant contractors, Regulations the Financing suppliers and Agreement, and ADB’s consultants Procurement Guidelines and Consulting Guidelines. Sanctions for individuals may include transfer of duties, retraining, suspension, dismissal, re-grading, and prosecution under Cambodian Law. Sanctions for firms may include: termination of contract, debarment or blacklisting under ADB’s Procurement Guidelines and Consulting Guidelines or prosecution under Cambodian Law. Element 8: Project Specific Elements 7.a Poor EA/IAs ensure that contract EA and IAs. Throughout Project enforcement of terms are strictly enforced MEF to monitor. duration. contract terms and the loan/grant consultant and needing to will be a party to ensuring conduct quality control of contract contractors outputs, include acceptance performance of completion of works and evaluation services. The EA/IAs to conduct performance evaluation of all contractors providing all types of services under the Project (also see 7c). Appendix 12 Page 7

No. Issue Action to Mitigate Risk Responsibility Target/Frequency 7.b Poor quality of EA and IAs ensure that EA and IAs. Throughout Project design and works approved infrastructure’s duration. construction design standards and specification developed by the respective agencies are utilized for the design of EA/IAs, with ADB no Contract signed structures under the Project. objection. immediately after effectiveness. Project to recruit experienced design consultant on a timely basis to assist the Project.

7.c Risk of low Project to recruit experienced EA/IAs with ADB no Prior to award of first quality site supervision consultants objection. works contract. construction and to assist EA/IAs. supervision Regularly throughout Regular technical audit is to EA/IAs. Project duration. be undertaken with any adverse findings to be acted Annually in July. upon immediately. EA/IAs with ADB concurrence. Project to evaluate contractors’ performance with poor performing contractors declared ineligible to bid for at least one year.

Appendix 13 Page 1

SUMMARY ENVIRONMENTAL ASSESSMENT

A. Introduction

1. The proposed Tonle Sap Lowland Rural Development Project aims to improve livelihoods of people in the lowlands through improved coverage and quality of rural infrastructure and new opportunities and skills in pursuit of on-farm and off-farm enterprises. It will adopt a sector modality to identify and implement subprojects in three provinces sounding the Tonle Sap Lake: Kampong Chhnang; Kampong Thom; and Pursat.

2. The Project consists of three components including: (i) Improving Rural Infrastructure, further sub-divided into: (a) Improvement and Development of social infrastructure, (b) Improvement of agricultural water management infrastructure, and (c) Improvement of rural roads and communication infrastructure; (ii) Increasing Livelihood Options for Rural Communities through provision of Technical Services; and (iii) Project Management. An estimated cost of less than $100,000 per subproject will be allocated for rehabilitation of secondary canal and inter-and within commune road and bridges. A block grant will be allocated for each commune for rehabilitation and/or construction of small scale infrastructure 1 . Environmental assessment was carried out for the first component while environmental consideration was taken into consideration in the second component.

B. Description of the Environment

3. The climate is dominated by the tropical wet and dry monsoons. Average annual rainfall is between 1,300 and 1,900 millimeters with a maximum rainfall in September. Eleven sub- basins within the Tonle Sap Basin overlap with and influence the project area. Flows reduce to zero in the dry season in small rivers. Overall rivers can maintain a base flow of around 30 (m3/s) in the pre-and post-monsoon seasons, sufficient to support the migration of fish in April and November. Usable groundwater aquifers are often found at deeper depths, with shallower aquifers perched and discontinuous. Groundwater contains manganese and iron affecting taste and iron is often associated with arsenic, though not commonly present in Northwest Cambodia.

4. The project target communes are in lowland rainfed rice land and exhibits a variety of vegetation types, land uses and human adaptations to the environment. The provinces of Kampong Thom and Pursat border on the Tonle Sap Lake and encompass extensive flooded forests generally recognized as a composition of several distinctive vegetation types and floristic zones, including short trees and scrub, tall dense gallery forests and herbaceous, floating or emergent aquatic vegetation. Subprojects under the proposed Project will be, however, within

1 Each project commune is expected to receive block grants totaling about $70,000 in tranches not exceeding $20,000. Categories of civil works to be funded include: (i) village market and other commercial support infrastructure; (ii) communal grain dryers; (iii) village roads, including drainage, bridges and culverts; and (iv) communal village meeting halls. Appendix 13 Page 2 the established village areas and ecological and archaeological resources are likely to be outside the village areas.

5. Over 70% of the households are engaged in farming while 6% for fishing. People living near the national roads mainly rely on rice cultivation for their livelihood. About 70% of the households own land landless families with no source of income migrate onto the Lake to take up subsistence lifestyle fishing. Off-farm agricultural work such as small businesses and remittances from overseas workers make up other sources of income in typical households. C. Potential Impacts and Environmental Management Plan

6. Due to small scale of interventions, potential negative impacts associated with the design, construction and operation of the proposed subproject activities will be temporary, minor, and localized in extent and can be mitigated to acceptable levels. A generic environmental management plan (EMP) was developed and will be updated based on detail design.

7. UXO and protected areas. There are several national parks and protected areas in the project provinces. The environmental screening criteria will exclude any subprojects that are located within or adjacent to designated protected or conservation areas and their buffer zones. UXO screening and removal will eliminate any risks of accidents. Rehabilitation of secondary canal and road is within the existing Right of Way (ROW). Very minor land acquisition might be acquired and land acquisition and resettlement plan will be prepared to address any compensation.

8. Availability of water and water pollution. Increased irrigation could cause a decrease in the available water for downstream farmers. Water balance and modeling will be conducted as part of the detail design to calculate minimum river flow during a dry season and assess appropriateness of water allocation within the context of water allocation planning by the MOWRAM. A change in the cropping pattern will be adopted in case of extreme low rainfall in a dry season. To minimize increased water pollution due to increased use of agrochemicals, the technical services under the component 2 will provide (i) support for post-harvest management and processing to reduce loss of yields and improve productivity; and (ii) extension training to farmers to promote Integrated Pest Management together with crop breeding and biological controls. A close coordination with MAFF will be sought to support its inspection system.2

2 Based on the sub-decree No. 69 and its guidelines (Circular No. 345), MAFF is strengthening the inspection system. The proposed project will carry out chemical use training to farmers and will report to MAFF’s Bureau of Agricultural Materials any retailers violating the required administrative procedures. Appendix 13 Page 3

9. Water quality testing will be required at the time of well development, or upon installation of recognition boreholes to ensure that the groundwater will meet the drinking water quality standards set by the Ministry of Industry, Mines and Energy.3

10. Construction impacts. Negative environmental impacts include increased dust, noise, traffic, wastes and soil erosion. Construction specifications will require contractors to follow the environmental management plan that specifies their obligation to (i) limit the generation of dust by watering exposed earth surfaces; (ii) provide covers on spoil heaps to prevent wind-blown soil loss; (iii) reinstate vegetative cover on all bare surfaces upon completion of the works, (iv) obtain permits for construction materials and appropriately dispose excavated spoil and other materials (vi) limit working hours in populated areas, and (vii) enforce the use of ear protection and dust filtering masks for workers.

11. Induced impacts. Improved availability of irrigation water may cause land grabbing. Land ownership and titling surveys will be conducted during the detail design to ensure the ownership rights for small farmers. To minimize increased wastes and wastewater from renovated or new markets, a provision of waste bins, filter drainage system and composting facilities will be included in the overall design to minimize wastes and maintain hygiene standards. The Project will assist commune councils to establish Road Maintenance Committee to ensure routine and periodic maintenance with mechanisms to raise funds.

D. Public Consultation

12. A series of public consultation was conducted at the national, provincial, commune and village levels during project design. Overall, the consulted villagers supported the proposed Project and provided variable inputs to the location and design of interventions. Main concerns raised include resettlement impacts, risks of increased water pollution and wastes due to increased use of chemicals and construction of new markets. Such concerns were integrated in the design of mitigation measures and monitoring programs. Public consultation is an on-going and integral process of the project implementation. Continuous dialogue with the project affected and/or beneficiary communities as well as relevant government agencies will be carried out during the detailed design and implementation.

E. Environmental Assessment Framework

13. An environmental assessment and review framework (EARF) has been prepared to guide the screening of subprojects (Supplementary Appendix J), set out institutional arrangements in relation to environmental management and monitoring, and define

3 The Drinking Water Quality Standards, Ministry of Industry Mines and Energy, January 2004, specifies the drinking water standards as follows: pH 6.5 - 8.5; turbidity 5 NTU; Arsenic 0.05 mg/l; Iron 0.3 mg/l; Total Dissolved Solids (TDS) 800 mg/l; E. Coli 0 per 100 ml. Appendix 13 Page 4 environmental assessment requirements complying with the applicable laws and regulations of the Government and with ADB’s environment policy and Environmental Assessment Guidelines.

14. Main environmental assessment responsibilities reside in Commune Councils (CC), Provincial Department of Water Resources and Meteorology (PDWRAM), Provincial Department of Rural Development (PDRD), Provincial Department of Agriculture (PDA), and Ministry of Water Resources and Meteorology (MOWRAM). The CC as a subproject owner is responsible for environmental screening and monitoring of overall implementation of subprojects within its administrative boundary while PDWRAM, PDRD and PDA are responsible for conducting IEEs. MOWRAM as an EA is responsible for overall supervision, coordination and reporting of the project progress.

15. An estimated cost of $5,000 is allocated for the surface water quality monitoring during the project period. Environmental awareness and training are include as part of the overall safeguard training. A cost of recruiting an international consultant (4 pm) and a domestic consultant (12 pm) is included in the project cost to assist CC, PDWRAM, PDA and PDRD in environmental assessment related work.

F. Conclusion

16. The Project is classified overall as environmental category B. The IEE found that there will be no significant adverse environmental impacts associated the proposed works since individual subprojects will be small in scale and subprojects located in environmentally sensitive areas will be excluded. Individual subprojects will be assessed at detailed design stage to determine specific environmental categories. The generic mitigation measures described in the IEE will be reinforced by detailed mitigation measures formulated during implementation to minimize site-specific negative environmental impacts. The EARF will provide adequate guidance for IAs to screen subprojects, determine the appropriate mitigation measures for any identified negative impacts, and implement environmental management and monitoring during project implementation and beyond. Therefore, there is no need to carry out a full scale EIA.

Environment Assessment and Review Framework

EARF Framework Document Stage: Draft for Approval October 2007

Cambodia: Tonle Sap Lowland Rural Development Project

The Environment Assessment and Review Framework is a document of the borrower. The views expressed herein do not necessarily represent those of the ADB Board of Directors, Management, or staff, and may be preliminary in nature.

Appendix 13 Page 2

ENVIRONMENTAL ASSESSMENT AND REVIEW FRAMEWORK

I. INTRODUCTION

1. The proposed Tonle Sap Lowland Rural Development Project aims to improve livelihoods of people located through improved coverage and quality of rural infrastructure and new opportunities and skills in pursuit of on-farm and off-farm enterprises. It will adopt a sector modality to identify and implement subprojects in three provinces sounding the Tonle Sap Lake: Kampong Chhnang; Kampong Thom; and Pursat. The Project benefits 40 communes that are located on the lowlands, which lie outside the buffer zone of the Tonle Sap Biosphere Reserve, generally close to the national road-ways, and higher tableland of the Tonle Sap Basin (TSB).

2. The Project was classified as category B4. The IEE was prepared in accordance with ADB's Environmental Assessment Guidelines (2003), and conforms with environmental assessment requirements defined in Cambodia's Sub-Decree No. 72.ANRK.BK of August 1999. This report is prepared based on environmental surveys, available data, and feedback received during consultations with officials from key government agencies, affected people and interested groups, and other stakeholders.

II. OVERVIEW OF TYPES OF SUBPROJECTS TO BE ASSESSED

3. The Project consists of three components including: (i) improvement of rural Infrastructure, further sub-divided into: (a) improvement and development of social infrastructure, (b) improvement of agricultural water management infrastructure, and (c) improvement of rural roads; (ii) rural livelihood improvement and employment options enhancement; and (iii) project management. Environmental assessment was carried out for the first component while environmental consideration was taken into consideration in the second component. Table 1 summarizes the overall project components.

Table 1: Summary Scope of Work

Components Types of activities Improvement of Social Infrastructure block grant of total $75,000 per commune for (a) village market and Rural other commercial support infrastructure; (b) communal grain dryers; (c) Infrastructure village roads, including drainage, bridges and culverts; and (d) communal village meeting halls Implemented through Commune Development Fund; A subproject cost less than $20,000 Agriculture water Rehabilitation of secondary and tertiary canals and related facilities (less

4 The project was originally environmental category “A” and downgraded to category “B” during the PPTA stage since the project area is outside the buffer zone and potential small scale project interventions are not likely to cause significant adverse environmental impacts. The revised environmental categorization was endorsed by the Chief Compliance Officer on 15 November 2006. Appendix 13 Page 3

management 200ha ); A subproject cost less than $100,000 (less than $550/ha) infrastructure Rural access and Rehabilitation of inter or intra commune road and bridges (a total of communications 280km, 3.5m side laterite surface, 200 vehicle per day); A subproject cost less than $100,000 Rural Livelihoods Improvement and (i) Intensification of rain fed and irrigated agriculture through (a) Employment Options Enhancement organization of farmers group; (b) development and implementation of appropriate technology improvement packages, establishment of demonstration farms and training; (c) facilitating farmer group access to existing rural financial institutions for farm credit; (ii) development of off-farm livelihoods through (a) organization of groups for small-scale business development; (b) identification of market opportunities and viable business activities; (c) technical training; (d) support for business development plan and financial access facilitation. Project management Overall support for project implementation including training, provision of operation costs, vehicles and equipment

III. NATIONAL ENVIRONMENTAL ASSESSMENT AND REVIEW PROCEDURES

4. Sub-Decree No 72.ANRK.BK of 11 August 1999 on Environmental Impact Assessment Process defines the Cambodian national requirements for environmental impact assessment and specifies relevant procedures. The identification of projects that require an Environmental Impact Assessment is made using a combination of activity types and threshold criteria. The Annex to Sub-Decree No 72.ANRK.BK provides a list of types and activities of projects that will require Initial Environmental Impact Assessment (IEIA, equivalent to IEE) or EIA. Most of the proposed project interventions are unlikely to exceed the criteria requiring an IEE. However, to ensure appropriate environmental assessment for each subproject, a preliminary environmental screening will be conducted for each subproject to determine the need for IEE.

5. Departments of Environment (DOE) are established in each province and provincial DOE is responsible for implementing environmental protection law in the province, including monitoring, enforcement and review/approval of IEEs for smaller scale projects.

IV. SPECIFIC PROCEDURES TO BE USED FOR SUBPROJECTS

1. Institutional Responsibilities

6. The executing agency (EA) is the Ministry of Water Resources and Meteorology (MOWRAM). MOWRAM will establish a Project Management Office (PMO) to be responsible for project implementation at the national level. The PMO will be headed by a Project Director and composed of three Deputy Directors, one each from MOWRAM, MRD and MAFF. At the provincial level, the Provincial Local Administration Unit (PLAUs) will coordinate with Provincial Departments of Water Resources and Meteorology (PDWRAM), Rural Development (PDRD) and Agriculture (PDA) to facilitate development of commune investment plans, obtain Governors’ endorsement and implement subprojects. International and national environmental consultants will assist EA and IAs to ensure environmental safeguards in the planning and implementation of Commune Investment Plans (CIPs).

Table 6: Environmental Responsibilities

Institution Responsibilities MOWRAM (EA) PMO consists of Project Director (MOWRAM) and Deputy Directors (MOWRAM, MRD, MAFF); responsible for overall supervision, monitoring and reporting to ADB on the environmental aspects Appendix 13 Page 4

PDWRAM (IA) Responsible for (i) conducting and preparing environmental assessment for agricultural water management infrastructure; (ii) obtaining approval by the DOEs if necessary; and (iii) monitoring and reporting to EA the implementation of the mitigation measures and monitoring; PDRD (IA) Responsible for (i) conducting and preparing environmental assessment for road; (ii) obtaining approval by the DOEs if necessary; and (iii) monitoring and reporting to EA the implementation of the mitigation measures and monitoring; PDA (IA) Responsible for ensuring environmental aspects in the choice of technology, training and improved agricultural practices Commune Responsible for ensuring that all identified subprojects will go through environmental screening criteria; conducting visual inspection for completed subprojects

2. Environmental Criteria for Selection of Project Activities

7. The environmental screening criteria for subproject selection are documented below. All subprojects must:

(i) Avoid direct, or indirect significant, negative impacts on areas declared by laws or appropriate authorities as national parks, watershed reserves, wildlife preserves, sanctuaries or protected areas and their buffer zone; (ii) Avoid permanent negative impacts on a known rare or endangered flora or fauna species; and (iii) Avoid direct, or indirect significant, negative impacts on important items of cultural heritage.

3. Procedures for Environmental Assessment of Subprojects a. Subproject Identification and Preparation

8. Rural infrastructure needs at commune and village levels will be identified and prioritized through the local planning process currently used to prepare CIP. This is a participatory process which involves communities in identifying their needs, and provides for their direct involvement in resource allocation, decision making, implementation and monitoring at the local level. With the exception of inter-commune roads, the communities will also have ownership of completed works, and responsibility for their subsequent operation and maintenance.

9. Environmental assessment will be conducted for all subprojects. The procedures for environmental assessment of subprojects must be in line with the requirements of the national and local governments, as well as ADB’s Environment Policy (2002), Environmental Assessment Guidelines (2003). b. Environmental Assessment Procedures for Rural Infrastructure

10. Environmental Classification. When subprojects are identified through the participatory commune planning process, environmental screening will be conducted by the commune councils, assisted by the environmental consultants and district staff from the department of environment, to screen and classify the environmental category and identify necessary mitigation measures using the appropriate preliminary environmental screening check list (attachment 1). Subprojects that fall into environment category A will be excluded.

11. Preparation of IEEs. For those subprojects that are categorized as environmental category B, relevant IA will prepare IEEs based on the sample IEE prepared during Project preparation. Public consultation will be carried out to record communities’ concerns and consider such concerns in the design, specific mitigation measures and monitoring. Specific Appendix 13 Page 5 mitigation measures and monitoring plans with budget requirements and institutional responsibilities will be described in the IEEs.

12. Review of IEEs. IEEs prepared by responsible IAs will be submitted to DOE if necessary prior to the governors’ approval. If there are any critical environmental issues identified, IEEs will be submitted to ADB for its review and approval prior to commencing activities under a Works contract for a Subproject.

13. Environmental Monitoring. IAs are responsible for supervising contractors’ performance and compliance with the environmental provisions. Communes will also conduct visual completion check to report any unintended environmental impacts.

14. Environmental Reporting. IAs are responsible for monitoring and reporting the environmental compliance in monthly and quarterly reports that will be submitted to EA for its review and the EA will send it to ADB for review.

V. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE

15. Public participation is an integral part of the subproject preparation and implementation. During the CIP planning process, any concerns raised by the subproject communities will be documented as part of the preliminary environmental screening process and be taken into consideration during the subproject identification and design of mitigation measures, and monitoring plans. During implementation, local facilitators will facilitate consultation process. All documents on environmental issues including IEEs and progress reports will be properly kept as part of the project documentation and made available to the public in Khmer language.

VI. STAFFING REQUIREMENTS AND BUDGET

16. Overall mitigation measures are included in the project costs. Water quality testing will be included as part of the feasibility study to ensure drinking water quality of the sources. A water quality sampling at selected sites will also carried out to check the water quality and to ensure compliance with the relevant regulations regarding agricultural chemicals. An international (2 person months) and domestic (11 person months) environmental consultants will be recruited to assist the commune councils, EAs and EA in conducting environmental assessment and incorporating necessary mitigation measures. The terms of references are provided in the attachment 4.

Attachment 1 Appendix 13 Page 6

[draft] Agriculture Water Management Subproject

GENERAL INFORMATION SUBPROJECT DATA Subproject name (location) Subproject type (new construction or rehabilitation) Name of the commune chief Name of Environment Officer of DOE SUBPROJECT DESCRIPTION Area of subproject (ha) Brief description of main works to be carried out Identification of water source Is rehabilitation of reservoir required? if so, please describe the scope of civil work Length of upgraded secondary canals Numbers of culverts Flow control structure CONSTRUCTION ACTIVITIES Construction commencement date (month/year) Construction completion date (month/year) Date of the UXO clearance obtained (date) Approximate construction period Number of construction workers Sources of construction materials Approximate types and quantities of raw construction materials • Stone (m3) • Concrete (m3) • others List of construction equipments and vehicles OPERATION ACTIVITIES Capacity of subproject (m3 of water) Capacity of subproject (ha) Frequency of canal clearing Who is responsible for clearing? O&M budget support available? SUBPROJECT COST

ENVIRONMENTAL SCREENING Yes No Mitigation Measures Project siting: Is the subproject area adjacent to or within any of the following environmentally sensitive areas? If so, please provide the name of the designated areas, their ecological value and the distance from the subproject site. • Protected Area • Wildlife breeding or nesting sites • Buffer zone of protected area • Special area for protecting biodiversity • Historical or archeological areas Potential Environmental Impacts A. Water Availability and Conflicts Conflicts in water supply rights and related social conflicts? • Is the source river also used for water supply ? • What are the flow rate and water table of the Appendix 13 Page 7

water source river during dry season ? • Potential reduction of water supply during dry season? • Are the land use rights defined? • Potential social conflicts arising from land tenure and land use? • Land use inventory needed? B. Salinization Water logging and salinization due to inadequate drainage and farm management • Is there any build-up of saline or alkaline in the surface soil layers any part of the command area? • Is there adequate drainage system? • Groundwater is used for irrigation purpose? C. water quality water quality problems downstream due to increased chemicals use and reduced return flow • Extensive use of pesticides observed? • Extensive use of fertilizer observed? • Availability of alternative control methods (has communities received extension services)? • Increased incidence of waterborn or water related diseases prevalent? D. Sedimentation Soil erosion (furrow, surface) prevalent? Who is responsible for weeding and clearing? How often the maintenance takes place? water management structure operating properly? E. Others Any additional anticipated impacts and needed measures other than those listed in the environmental clause? COMMUNITY CONCERNS Yes No Specific Concerns When and how consultation was conducted (date, location, format)? What are the main concerns? ENVIRONMENTAL CATEOGORIZATION B C Note (if category B, please specify responsible institutions to prepare for IEE) What is the environmental categorization?

Prepared by: Commune Chief (name) Date Assisted by Date

Endorsed by: Staff of IA (name) Date Staff of DOE (name) Date

Appendix 13 Page 8

[draft] Market

GENERAL INFORMATION SUBPROJECT DATA Subproject name (location)

Subproject type (new construction or rehabilitation) Name of the commune chief Name of Environment Officer of DOE SUBPROJECT DESCRIPTION New or Rehabilitation Project Address of market Cleared area (m2) Description of structure – dimensions and materials Open or closed market structure Description of clean water supply facilities including any treatment system Description of drainage systems for stormwater and wastewater Description of sanitation facilities including any treatment system Description of compost facilities Description of other ancillary facilities such as access roads, fencing, etc. CONSTRUCTION ACTIVITIES Construction commencement date (month/year) Construction completion date (month/year) Number of construction workers Construction camps required (Yes/No) List of construction equipments and vehicles Description of drainage system for wastewater collection Description of wastes and disposal methods OPERATION ACTIVITIES Expected number of market workers Expected range of products to be sold Description of regular maintenance activities (cleaning, repairs, etc) and their frequency Description of liquid waste types, volumes and disposal methods Description of solid wastes types, approximate quantities and disposal methods Description of emergency response plan (for fire, flooding, etc.) SUBPROJECT COST

ENVIRONMENTAL SCREENING Yes No Mitigation Measures Project siting: Is the subproject area adjacent to or within any of the following environmentally sensitive areas? If so, please provide the name of the designated areas, their ecological value and the distance from the subproject site. • Protected Area • Wildlife breeding or nesting sites • Buffer zone of protected area Appendix 13 Page 9

• Special area for protecting biodiversity • Historical or archeological areas Potential Environmental Impacts Is there any flooding in the area? How often? Is there evidence that soils are fine or easily erodible? Are there acid sulphate soils, saline or other contaminated soils in the area? Does the subproject affect any electricity lines, roads, water supply pipelines, and other public infrastructure? Is there any waterbody near the subproject area? If so, is the waterbody used as a for drinking water source? Creation of stagnant water near resulting in increased disease transmission Soil erosion/silt runoff from construction operations? Dislocation or involuntary resettlement of people? Are there established procedures for the market operation to manage garbage and wastewater, and meet hygiene standards ? Continued soil erosion/silt runoff from non- resurfaced exposed areas? Employment opportunities for local people in construction or rehabilitation activities? Is the market located or going to locate near the residential areas? Any risks of noise and odor transferring adjacent communities? Adequate facilities for loading and unloading of goods and parking? Any additional anticipated impacts and needed measures other than those listed in the environmental clause? COMMUNITY CONCENRS Yes No Specific Concerns When was the consultation conducted (date, location, format)? What are the main concerns? ENVIRONMENTAL CATEOGORIZATION B C Note (if category B, please specify responsible institutions to prepare for IEE) What is the environmental categorization?

Prepared by: Commune Chief (name) Date Assisted by Date

Endorsed by: Staff of IA (name) Date Staff of DOE (name) Date

Appendix 13 Page 10

[draft] Rural Road

GENERAL INFORMATION SUBPROJECT DATA Subproject name

Subproject type (new construction or rehabilitation) Name of the commune chief Name of Environment Officer of DOE SUBPROJECT DESCRIPTION Road class (technical standard) Design speed (km/h) Length and with of the roads (Km) Main route - length - width Sub-route - length - width Road surface (laterite) Number and length of bridges and culverts Length of stormwater drainage works Width of clearance - main routes clearance - sub-routes clearance Number of roads crossing Numbers of major water body crossing Number of hills and mountains crossing CONSTRUCTION ACTIVITIES Construction commencement date (month/year) Construction completion date (month/year) Date of UXO clearance obtained Approximate construction period Number of construction workers Sources of construction materials - location and size of borrow areas - description of sources of materials Construction camps required (Yes/No) Cut/fill balance and disposal measures for excess spoil List of construction equipments and vehicles OPERATION ACTIVITIES Length of subproject (Km) Frequency of drainage clearing Who is responsible for clearing? O&M budget support available? SUBPROJECT COST

ENVIRONMENTAL SCREENING Yes No Measures Project siting: Is the subproject area adjacent to or within any of the following environmentally sensitive areas? If so, please provide the name of the designated areas, their ecological value and the distance from the subproject site. • Protected Area • Wildlife breeding or nesting sites • Buffer zone of protected area • Special area for protecting biodiversity Appendix 13 Page 11

• Historical or archeological areas Potential Environmental Impacts Alteration of surface water hydrology of waterways crossed by roads, resulting in increased sediment in streams affected by increased soil erosion at construction site? Deterioration of surface water quality due to silt runoff and sanitary wastes from worker-based camps and chemicals used in construction? Increased risk of water pollution from oil, grease and fuel spills and other materials from vehicles using the road? Increased local air pollution due to rock crushing, cutting and filling works? Noise and vibration due to civil works? Increased noise and air pollution resulting from increased traffic volume Poor sanitation and solid waste disposal in construction camps and work sites? Clearing or resource extraction from areas of sensitive Generation of excess spoil? Inconveniences in living conditions in the project areas during rehabilitation? Accident risks associated with increased vehicle traffic or Causes disruption to local communities? Creation of temporary breeding habitats for mosquito vectors of disease? Employment or livelihood benefits from employment of local people/ Dislocation or involuntary resettlement of people living in right-of-way? Any additional anticipated impacts and needed measures other than those listed in the environmental clause? COMMUNITY CONCERNS Yes No Specific Concerns When was the consultation conducted (date, location, format)? What are the main concerns? ENVIRONMENTAL CATEOGORIZATION B C Note (if category B, please specify responsible institutions to prepare for IEE) What is the environmental categorization?

Prepared by: Commune Chief (name) Date Assisted by Date

Endorsed by: Staff of IA (name) Date Staff of DOE (name) Date

Appendix 13 Page 12

[draft] Water Supply

GENERAL INFORMATION SUBPROJECT DATA Subproject name (location)

Subproject type (new construction or rehabilitation) Name of the commune chief Name of Environment Officer of DOE SUBPROJECT DESCRIPTION New or Rehabilitation Project Identification of water source Identification of catchment area Reservoir/dam depth Reservoir /dam inundation area and surface area Number of water intakes and offtakes Length of primary pipeline Number of secondary pipelines Numbers of tertiary pipelines Description of associated drainage or sanitation works Number and types (communal or individual) of wells Depth groundwater Distance to the sanitation facilities CONSTRUCTION ACTIVITIES Construction commencement date (month/year) Construction completion date (month/year) UXO clearance obtained? If so, when? Number of construction workers Construction camps required (Yes/No) List of construction equipments and vehicles Cut/fill balance and disposal measures for excess spoil Types of construction wastes and volumes and disposal method OPERATION ACTIVITIES Capacity of water supply (m3/day) Targeted households Water treatment process Frequency of maintenance dredging/pipeline cleaning Frequency of water quality monitoring SUBPROJECT COST

ENVIRONMENTAL SCREENING Yes No Measures Project siting: Is the subproject area adjacent to or within any of the following environmentally sensitive areas? If so, please provide the name of the designated areas, their ecological value and the distance from the subproject site. • Protected Area • Wildlife breading or nesting sites • Buffer zone of protected area • Special area for protecting biodiversity • Historical or archeological areas Potential Environmental Impacts Pollution of raw water supply from upstream wastewater discharge from communities, industries, agriculture and soil erosion runoff Appendix 13 Page 13

Deterioration of surface water quality due to silt runoff and sanitary wastes from worker-based camps and chemicals used in construction? Inadequate protection of intake works (or well) causes pollution? Lowering or drying up of the groundwater table? Nearby agricultural lands using pesticides and fertilizers? Herds grazing close to the well or river that may jeopardize the water quality (fecal coliform, turbidity); will there be separate areas where livestock can drink? Nearby cleaning activities (bathing and washing) that can contaminate well water (with soaps and suspended matter)? Creation of stagnant water near resulting in increased disease transmission Conflicts in abstraction of raw water for water supply with other beneficial water uses for surface of groundwaters? Dislocation or involuntary resettlement of people? Excessive algae growth in storage? Increase in sewage beyond the capacity of communities treatment facilities ? Difficult water quality/treatment problems? Soil erosion/silt runoff from construction operations? Inadequate buffer zones? Need for a management plan for chlorine use for disinfection? Continued soil erosion/silt runoff from non- resurfaced exposed areas? Any additional anticipated impacts and needed measures other than those listed in the environmental clause? COMMUNITY CONCERNS Yes No Specific Concerns When was the consultation conducted (date, location, format)? What are the main concerns? ENVIRONMENTAL CATEOGORIZATION B C Note (if category B, please specify responsible institutions to prepare for IEE) What is the environmental categorization?

Prepared by: Commune Chief (name) Date Assisted by Date

Endorsed by: Staff of IA (name) Date Staff of DOE (name) Date

Appendix 13 Attachment 2 Page 14

ENVIRONMENTAL CLAUSES FOR INCLUSION IN CONSTRUCTION CONTRACT TENDER DOCUMENTS

Hiring Hiring of project-affected persons, residents of project-affected administrative units, disadvantaged groups such as minorities or women, and other local inhabitants, is preferred. All labor laws and regulations of the government of Cambodia are adhered to by all subproject contractors.

Contractor is forbidden to engage in rumor, political intervention, or extortion by middle men and gate keepers to affect a lowering of wage rates or benefits during hiring.

Use of Land for Construction Purposes The contractor will obtain prior approval from landowners for temporary use of land for labor camp and construction yard, and before occupation agree on price, intended use and duration, amount of clearing and excavation, and final waste disposal and reclamation.

The contractor will not encroach upon or damage forests, wildlife or fisheries in the project area, and will provide a plan for preventing fires and possession of instruments or poisonous substances for killing or capturing fish or wildlife.

Temporary use of land will be promptly restored or improved in its pre-project conditions at no cost to the affected peoples. For the contractor working space, to the extent possible, only unused land will be used to avoid disruption to households and business establishments. Use of residential land will not involve any impacts on houses and structures and will not disrupt access to households.

Machinery, equipment, structures, contaminated earth and waste or unused materials shall be removed and disposed of properly. Fuel, oil, or parts cleaning fluids shall be spilled, wasted or disposed of at the appropriate site in accordance with the local environmental regulations.

Site Conditions, Quarries and Haul Routes The contractor will provide a plan for development of haul roads that minimize interference with ongoing activity in the area. Haul routes shall be approved by the Local Administration Unit (LAU). Haul roads for unclassified fill in the project area shall be kept as close as possible to areas to be excavated.

The contractor will prepare and include in the bidding documents relevant management plans including a safety plan for accident prevention and response, environmental management at work camps, and overall waste management. Specific quantities of facilities such as drinking water supplies, toilet facilities, waste disposal bins, etc. should be estimated as much as possible.

Selection of quarry sites and haul routes shall minimize noise and air pollution in the quarry vicinity; visual impacts in inhabited areas; impacts on land use, air, soil erosion and noise emissions along haul routes; and congestion in populated areas. Quarry locations and haul routes will be approved in advance by the Site Engineer and LAUs.

Dust, noise and odors produced from nearby construction will be suppressed with various measures including watering haul roads regularly and operation of vehicles during restricted hours in village limits and other congested, or residential, areas. Appendix 13 Page 15

The Contractor is required to post flagmen at intersections of transit paths for construction vehicles and local traffic.

Forms of interference that would disadvantage women and children in daily activity need to be avoided and specific safeguards put into place.

Archeological and Cultural Relics The Contractor must halt construction upon discovery of foreign objects of non-recent origin on the ground or below grade. Contractor must notify the Site Engineer and LAUs, who will contact the Provincial Department of Culture and Fine Arts to investigate and undertake recovery. Work must remain halted at the specific location until recovery is complete.

De-watering and Disposal Areas excavated for fill may need to be de-watered. The contractor is responsible for arriving at a plan to reduce sediment load in local drainage courses due to the discharge of water from excavations. The Site Engineer must approve the plan prior to start of excavation. Final discharges to local streams should contain TSS no greater than 300 mg/L.

Mines and UXO The Contractor shall work closely with the LAU and local authorities and de-mining agencies to identify areas potentially contaminated with mines and UXO in and around the project. Areas within the active zone of construction shall be cleared of mines prior to start of work. The contractor shall educate workers on the hazards of mines and UXO, and post clear warnings at the boundaries of fields or forests in the vicinity of the project that are potentially contaminated with mines or UXO.

Appendix 13 Attachment 3 Page 16

Attachment: Environmental Management Plan

Project Potential Impacts Proposed Mitigation Measure Responsible Entity Monitorable Output Funding Source component Location and Design All UXO • Conduct UXO survey to assure Relevant IAs Local government Counterpart areas are clear of mine hazards subcompone mines and UXOs contamination clearance/EA funds nts especially outlying areas around villages Resettlement Resettlement • As a general rule, no land • At the detailed design stage, a PRDRAM/PDRD/ Resettlement Plans Project costs or acquisition or relocation of resettlement plan will be prepared design consultants provincial houses will be involved since counterpart funds assessments to determine the need rehabilitation is within the ROW. for temporary or permanent

• Temporary loss of access to or acquisition of land or non-land use of small areas of land assets and will specify mitigation adjacent to the works, minor measures and compensation. Short damage to agricultural land or resettlement plans will be prepared other assets caused by if necessary. construction works and the movement of construction plant and materials to and from work sites, and permanent occupancy of some areas of land in isolated cases. Protected areas Protected areas Approved list of subprojects • No subprojects are located • Environmental screening criteria CC, IAs and national within or adjacent to the included in the EARF will eliminate consultants designated protected areas, subprojects located in Approved contract conservation areas or buffer environmentally sensitive areas. specifications and zone. • Environmental specialists to be EMP recruited under the project will assist Certificate of PPMUs to assess subprojects. satisfactory Contractor completion Agriculture Downstream Impact Downstream Impact MOWRAM/PDRAMs Feasibility study Project costs Water Reduced base flows in the river Water balance assessment will be reports Management and resulting potential conflicts in conducted as part of a detail design Infrastructure water supply rights (rehabilitation Appendix 13 Page 17

Project Potential Impacts Proposed Mitigation Measure Responsible Entity Monitorable Output Funding Source component of secondary Water Pollution Water Pollution PDA/PDWRAM irrigation canals, Water quality degradation due to Promotion of the IPM and training for sluice, etc) increased use of chemicals for farmers on timely and appropriate irrigation application of agrochemicals for irrigation Rural Road Soil Erosion Soil erosion and Bridges • Some road subprojects pass • During the detailed design phase, IAs/ national design Approved design of Measures will be (Rehabilitation through areas that are prone to analyses will be made of the consultants/ DoT road works in included as of inter and/or land slides and erosion potential for land slides and erosion, vulnerable areas project-financed within and suitable mitigation measures civil works • Some sections of roads have commune will be included in the designs to been rendered vulnerable to road and counter such eventualities. Technical review bridges) land slides because of nearby consultants Detailed construction river bank collapse and erosion. • All road cuttings and embankment management plan to fills will incorporate soil and slope avoid risk of land stabilization measures as well as slides and soil adequate drainage provisions. erosion during • Implementation plans will avoid implementation construction and major earthworks during the rainy season. Borrow pits and quarries Borrow pits and quarries • Cause erosion and siltation in • Identify the environmentally sound streams mined for gravel; source of materials and obtain damage aquatic ecosystems approval by the local authority on the quarry, borrow pit and stream management plans that specify sites, quantity, haul routes, and reclamation. Social Water quality Water quality Infrastructure • Some community and • During the detailed design phase, PDRD/national Approved designs of Detail design rehabilitation household wells are analyses will be made of water design consultants wells, water supplies, costs or contaminated and people suffer quality in the wells and drinking and water treatment construction of from water related health water supplies to be rehabilitated or water supply, problems such as skin and eye constructed, and suitable water deep wells, irritations, diarrhea, etc. treatment or alternative sources DOH (e.g., deeper aquifers) will be developed if necessary. • Keep appropriate distance from Appendix 13 Page 18

Project Potential Impacts Proposed Mitigation Measure Responsible Entity Monitorable Output Funding Source component latrine (e.g., relevant national regulations or 30m specified in the WHO’s drinking water guidelines) • Environmental and sanitation awareness training Rehabilitation Waste Waste PDRD Approved sign of or market works Improved or new market facilities • Waste bins, filter drain and compost construction of could generate increased number facilities will be included in the market of organic and non-organic wastes design. facilities • Compost facilities will be designed to prevent inundation of the facility or avoid overflow of wastes that may contaminate water bodies with surface runoff. • Environmental and sanitation awareness training will Renovation or Construction/demolition waste Construction/demolition waste PDRD Contract provision Project costs construction of Old pipe containing lead could Provision of appropriate waste new school contaminate soil and water bodies management plan will be included in facilities contracts During Construction All Dust and noise Dust and noise Project costs subcompone • Temporary dust and noise • Construction specifications will Contractors, IAs, Approved contract nts hazards may be created by rock require contractors to (i) water National supervision specifications and and aggregate crushers or other exposed earth surfaces to limit the consultants EMP heavy machinery and generation of dust, (ii) provide covers

construction plant moving in and on loose materials when being Reports of /PPMU on around construction sites. hauled close to settlements and on environmental spoil heaps to prevent wind-blown • On large subprojects generation management and soil loss, (iii) reinstate vegetative of dust and noise could create a Contractors monitoring hazard or nuisance for local cover on all bare surfaces upon

communities. completion of the works, (iv) locate any potentially hazardous machinery Reports of review or chemicals at sites remote from missions habitation, (v) maintain construction plant in good condition, (vi) limit working hours in populated areas, Reports of Appendix 13 Page 19

Project Potential Impacts Proposed Mitigation Measure Responsible Entity Monitorable Output Funding Source component and (vii) enforce the use of ear independent protection and dust filtering masks monitoring for workers. consultants • Contractors will avoid routing construction plant through populated areas, and will manage construction traffic with signals, flagmen, and appropriate signs. Soil and Land Soil and Land • Damage to agricultural land, • Construction specifications will IAs Approved contract Project costs river banks, public spaces, and require contractors to (i) use public specifications and roads for accessing work sites in EMP other nearby areas by (i) National supervision agreement with local authorities, passage of construction plant; consultants work within the right-of-way of the (ii) temporary storage of Reports on original structure or the boundaries of construction materials; (iii) environmental leased land; (ii) store construction disposal of excavated spoil; (iv) management and materials in designated areas for establishment of the contractor’s monitoring camp and working areas for which prior agreements have been assembly of structural elements negotiated; (iii) dispose of excess (e.g., pre-cast concrete earthfill material in designated areas, Reports of review components), aggregate reshape any such disposed material Contractors missions crushing, or servicing of in such a way as to avoid machinery; (v) disposal of liquid subsequent erosion or collapse, and and solid wastes; and (vi) replace topsoil and vegetation on all Reports of creation of borrow areas. exposed surfaces; (iv) establish independent working areas in designated sites monitoring Excavation can render sites • remote from population clusters; (v) consultants susceptible to landslides and establish and maintain in good collapse working order proper means of collecting and disposing of solid and liquid wastes; and (vi) extract all earthfill materials from licensed borrow areas or other environmentally non-sensitive areas, and reshape borrow areas to avoid subsequent erosion or collapse on completion, revegetating exposed surfaces. • Contractors will stabilize any exposed slopes that would be Appendix 13 Page 20

Project Potential Impacts Proposed Mitigation Measure Responsible Entity Monitorable Output Funding Source component susceptible to collapse and will provide appropriate drainage. Surface and groundwater Surface and groundwater • Short-term impacts on water • Construction specifications will IAs Approved contract Project costs quality from (i) extraction of require contractors to (i) develop specifications and construction materials from river detailed construction plans setting EMP National supervision beds and banks; (ii) increased out procedures to minimize such consultants Approval for works to soil erosion leading to impacts; (ii) obtain approval from commence deposition of sediment in rivers; responsible authority for removal of Reports of PRDC on (iii) inappropriate disposal of any sand, gravel, and rock materials environmental spoil, excavated materials, fuel, from river beds, and reinstate borrow management and oil, grease; and (iv) sewage areas to prevent erosion or collapse; monitoring effluents from work camp. (iii) establish and maintain in good Reports of review working order proper means of missions collecting and disposing of solid and Contractors liquid wastes; and (iv) provide proper sanitation in work camps, ensuring that no untreated effluents reach surface or groundwater. Health and safety Health and safety • Injury to workers and local • Construction specifications will IAs Approved contract Provincial residents due to unsafe work require contractors to (i) develop specifications and counterpart funds practices (e.g., reckless vehicle detailed work procedures to ensure EMP National supervision and plant operation, the safety of workers and others at consultants Approval for works to Loan-financing unprotected handling of all times; (ii) store fuel, oil, other commence for national and dangerous products, poor flammable materials and all Reports of PPMU on technical review ventilation in work places dangerous products securely under environmental consultants allowing toxic fumes to lock and key; (iii) develop a traffic management and accumulate, unsafe scaffolding management plan and provide road monitoring or other temporary works, signs, traffic signals, flagmen, and Safety equipment unprotected excavation and safety barriers to control plant Reports of review and training will missions trenches). operation and protect passers-by at Contractors be project- • Safety hazard to locals and dangerous sites; (iv) make available Reports of financed traffic and ensure that workers use correct independent footwear, helmets, and protective monitoring clothing (gloves, face masks, ear consultants protection, goggles, dust filters, etc.); (v) adequately ventilate all areas where toxic products are being handled and used; and (vi) provide Appendix 13 Page 21

Project Potential Impacts Proposed Mitigation Measure Responsible Entity Monitorable Output Funding Source component training and awareness raising for plant operators, drivers, and workers likely to come into contact with toxic or dangerous products. During Operation Agriculture Soil erosion Soil erosion Water • Increased soil erosion in road • Provincial agencies to monitor and PDRWAM Periodic maintenance National and Management cuttings and other excavated correct soil erosion due to or reports of provincial provincial regular Infrastructure sites following rehabilitation of impacting on the structures under departments budget for O&M (rehabilitation damaged infrastructure. their responsibility. of secondary irrigation canals, sluice, etc) Water quality Water quality Project budget • Increased use of agricultural • Water quality testing will be carried DOE Periodic reports of chemicals and consequent out at selected sample sites to ongoing pollution of groundwater and check the water quality and to environmental rivers due to increased intensity ensure compliance with the relevant monitoring programs of irrigation. regulations regarding agricultural chemicals. Rural Road Air quality and noise Air quality and noise and Bridges • Increased dust, emission, and • No specific measures are proposed DOT Periodic maintenance noise due to increased volume because the increase in emission, reports of traffic following improvement dust, and noise is not expected to be of roads. significant.

Social • Improved and increased • Periodic monitoring of on-site Periodic monitoring National and Infrastructure number of markets would result compost management. DOH reports of DOH/DOE provincial regular in increase in solid and liquid budget for O&M wastes.

Appendix 13 Attachment Page4 22

TERMS OF REFERENCE FOR CONSULTANTS

A. Introduction

17. These outline terms of reference for consultants describe the main tasks of the consultants required to assist the Executing Agency (EA), implementing agencies (IAs) and other local government units in preparing for and implementing the environmental assessment processes. The consultants will work closely with the government and other consultants to ensure that environmental requirements will be met during subproject selection, preparation, and implementation as well as recruitment of contractors. Inputs will be intermittent. The specialists will be based in the Project Management Office (PMO) and will be required to report to the consultant team leader.

B. Scope of Services

1. Environment Specialist (international, 2 person months, intermittent)

18. The specialist will have appropriate tertiary qualifications in the areas of environmental management, engineering and/or science and will have more than 10 years experience working in the fields for internationally funded development projects. The sectoral knowledge and experiences will be an advantage to the specialist. Specific tasks include:

(i) Review all project related documents including the Initial Environmental Examination (IEE), Environmental Assessment and Review Framework (EARF), and Draft Final Report;

(ii) Visit selected project communes and discuss with provincial and district department of environment to identify main environmental issues, training needs, and relevant local environmental regulations;

(iii) Discuss with the provincial and district department of environment and update the environmental document formats including the preliminary environmental screening checklists, IEE for a category B subproject, and environmental clauses;

(iv) Discuss with the national, provincial, district governments on the current practices of agricultural chemicals and identify feasible mechanisms to coordinate MAFF’s Buereau of Agricultural Materials and strengthen the inspection system;

(v) Develop standardized environmental management procedures and reporting formats for those subprojects that will be classified as environmental category C and B to ensure that appropriate coverage of environmental requirements will be included in the contracts,

(vi) Develop training materials and conduct environmental safeguard training for the EA, IAs, other relevant local governments and financial institutions;

(vii) Work with other relevant consultants to include environmental and natural resources management aspects in the capacity building and awareness building activities; Appendix 13 Page 23

(viii) Identify environmental monitoring indicators to be included in the overall project monitoring and evaluation.

2. Environment Specialist (local, 11 person months, intermittent)

19. The national specialist will have considerable experiences in environmental engineering, management and science, and will have at least 10 years of experiences in the relevant fields for internationally funded development projects. The specialist will have solid knowledge in the environmental assessment regulations. The specialist will be based in the PMO but substantial time will be spent in project sites. Specific tasks include:

(i) Review all project related documents including the Initial Environmental Examination (IEE), Environmental Assessment and Review Framework (EARF), and Draft Final Report;

(ii) Visit all project communes and identify main environmental issues, training needs, relevant local regulations and other similar projects being implemented by the ADB and other donors;

(iii) Assist the international environmental specialist to update the environmental document formats and develop standardized environmental management procedures and reporting formats for those subprojects that will be classified as environmental category B and C;

(iv) Assist the international environment specialist to develop training materials and conduct environmental safeguard training for the EA, IAs, other relevant local governments and financial institutions;

(v) Work with other relevant consultants to include environmental and natural resources management aspects in the capacity building and awareness building activities

(vi) Work with the district department of environment and assist commune councils to conduct preliminary environmental screening and categorize subprojects;

(vii) Assist IAs to prepare for and conduct environmental assessment for their contracted activities;

(viii) Assist the IAs in consolidating environmental reporting; and

(ix) Conduct training for commune councils to increase their capacity to report any unintended environmental impacts during construction and conduct visual inspection on the completed subprojects.

Appendix 14 Page 1

Resettlement Framework

Resettlement Framework Document Stage: Draft for Consultation September 2007

Cambodia: Tonle Sap Lowlands Rural Development Project

The Resettlement Framework is a document of the borrower. The views expressed herein do not necessarily represent those of the ADB Board of Directors, Management, or staff, and may be preliminary in nature.

Appendix 14 Page 2

ABBREVIATIONS

ADB = Asian Development Bank AP = Affected People CC = Commune Council CLAC = Commune Land Acquisition Committee DMS = Detailed Measurement Survey EA = Executing Agency HH = Household HRLS = Household Resources and Livelihoods Survey IA = Implementing Agency IMO = Independent Monitoring Organization IRC = Inter-Ministerial Resettlement Committee LARF = Land Acquisition and Resettlement Framework LARP = Land Acquisition and Resettlement Plan LMAP = Land Management and Administration Project MEF = Ministry of Economy and Finance NGO = Non-government Organization PRDC = Provincial Development Committee PPTA = Project Preparation Technical Assistance PRS = Provincial Resettlement Subcommittee RCS = Replacement Cost Study RGC = Royal Government of Cambodia RRA = Rapid Rural Appraisal RU = Resettlement Unit SES = Socio-Economic Survey TSLRDP = Tonle Sap Lowlands Rural Development Project VDC = Village Development Committee VLCR = Voluntary Land Contribution Report

Appendix 14 Page 3

GLOSSARY

Land acquisition - means the process whereby a person is compelled to relinquish ownership, possession, control or use of all or part of their land, structures or other assets. This includes land or assets for which the possessor or user enjoys customary or uncontested access but lacks legal title. Resettlement - means all measures taken to mitigate any and all adverse impacts of the Project or any subproject on the property and/or livelihoods of affected people, including compensation, relocation (where relevant), and rehabilitation as needed. Affected people - include people, households, firms, or private institutions who, on (APs) account of changes that result from the Project or any subproject will have their (i) standard of living adversely affected; (ii) right, title, or interest in any house, land (including residential, commercial, agricultural, forest, and/or grazing land), water resources, or any other moveable or fixed assets acquired, possessed, restricted, or otherwise adversely affected, in full or in part, permanently or temporarily; and/or (iii) business, occupation, place of work or residence, or habitat adversely affected, with or without displacement. Unless otherwise specified, the term refers collectively to a household and all its members. Severely means APs who will (i) lose 10% or more of their total productive land affected person - and/or assets; (ii) relocate their main residential and/or commercial structure and/or (iii) lose 10% or more their total income sources due to the Project. Vulnerable - are households that will suffer more, economically and socially, from people relocation and rehabilitation than the general population. These groups include: (i) poor households; (ii) ethnic minority groups; (iii) female- headed households; (iv) landless households; (v) disabled-headed household; and (vi) elderly people without support structures. Significant - occur when 200 or more people experience major resettlement effects, resettlement that is, they are physically displaced and/or lose 10% or more of their effects productive, income-generating assets. Common - mean all resources or assets that are held in communal or village property ownership and include (but are not limited to) graves, burial grounds, resources wells, hand pumps and other affected drinking water sources, specimen trees, pagodas, churches and temples, shrines, religious symbols or sites, village ponds or community fishponds, schools, markets, community forest, community grazing land, irrigation canals and facilities, roads, paths, water supply lines and facilities, electricity lines and poles, and communication lines. Cut-off date - means the date prior to which the occupation or use of the subproject area makes residents/users eligible to be categorized as affected persons. The cut-off date coincides with the date of the census of affected persons within the subproject area boundaries. Persons not covered in the census, because they were not residing, having assets, or deriving an income from the subproject area, are not eligible for compensation and other entitlements. Affected people and local communities will be informed of the cut-off date for the subproject. Voluntary - is the process whereby an individual owner or user agrees to provide contribution land (and attached assets) to the Project for implementation of a sub- project without compensation in cash or in kind. Voluntary contribution is an act of informed consent; voluntary contributions are made with the Appendix 14 Page 4

prior knowledge that other options are available, and are obtained without coercion or duress. Entitlement - means a range of measures comprising compensation, income restoration support, transfer assistance, income substitution, and relocation support which are due to affected people, depending on the nature of their losses, to restore their economic and social base. Compensation - means payment by the Government in cash or in kind to replace losses of land, housing, income, and other assets caused by a project. Replacement - means the method of valuing land, structures and other assets to cost establish compensation rates, as follows: (i) Agricultural land: The replacement cost of agricultural land will be based on a) the pre-project or pre-displacement market value, whichever is higher, of land of equal productive potential or use located in the vicinity of the affected land; plus b) the cost of preparing the land to levels similar to those of the affected land; and, c) the costs of any registration and transfer taxes. (ii) Urban land: The replacement cost equals a) the pre-displacement market prices for land of the same quality of land and use, with similar or improved public infrastructure and services in the vicinity of the affected land; and b) the costs of any registration and transfer taxes. (iii) Houses and other structures: The replacement cost equals a) the current market prices for new building materials to build a replacement structure with an area and quality similar to or better than the affected structure, or to repair a partially affected structure; plus b) the costs of transporting building materials to the construction site; c) the costs of any labour or contractors’ fees; and, d) the costs of any registration and transfer taxes. In determining the replacement cost of structures, no deductions are to be made for a) depreciation of the asset; b) the value of salvage materials; or, c) the value of benefits to be derived from the project. (iv) Annual crops: The replacement cost for annual crops is equivalent to the average production over the last three years multiplied by the current market prices for agricultural products at the time of compensation. (v) Perennial plants and trees: The replacement cost for perennial plants and trees is equivalent to current market prices given the type, age and productive value of the plants and/or trees, including lost future productivity. (vi) Other assets (community, cultural, aesthetic): Compensation will be calculated on the basis of the current market prices at time of compensation for repairing and/or replacing assets; or, the costs of mitigation measures. For example, compensation for the relocation of a gravesite will include all expenditures for excavation and construction of a new grave of similar type; exhumation and transport of remains to new grave; and, other reasonable costs. Rehabilitation - means assistance provided to severely affected or vulnerable APs due to the loss of productive assets, incomes, employment or sources of living, to supplement or in lieu of compensation for acquired assets, in

order to achieve, at a minimum, full restoration of living standards and quality of life. Relocation - means the physical relocation of an AP from her/his pre-project place of residence. Land Acqui- - is a time-bound action plan with budget setting out compensation and Appendix 14 Page 5 sition and resettlement strategies, objectives, entitlement, actions, responsibilities, Resettlement monitoring and evaluation. Plan (LARP)

Appendix 14 Page 6

I. INTRODUCTION

A. Project

1. The Tonle Sap Lowlands Rural Development Project (TSLRDP) will target a total of 12 districts and 30 communes in the six provinces of Banteay Meanchey, Battambang, Pursat, Kampong Chhnang, Kampong Thom and Siem Reap. The expected outcome of the Project will be that rural communities use the improved coverage and quality of rural infrastructure; and new opportunities resulting from the application of new skills in the pursuit of on-farm and off-farm enterprises to improve their livelihoods.

2. TSLRDP components and anticipated land acquisition and resettlement impacts are summarized as follows.

Table 1: Potential for Land Acquisition and Anticipated Resettlement Impacts

Possible Land Acquisition and Resettlement Component Impacts 1. Improving Rural Infrastructure Improvement and Development of Social No involuntary resettlement impacts and/or Infrastructure (less than $20,000 per infrastructure, involuntary resettlement impacts are not $70,000 per Commune over the life of the Project) significant. 31 Commune Livelihoods Funds (CLF) to be used for • Village (≠ Commune) markets (approximately community-driven infrastructure subprojects that 100m²), grain dyers (30m²) and communal village directly benefit communities and involve community meeting halls (40m²) would be constructed in the decision-making and management. public unused land.

• Improvement of village roads would be within the existing ROWs1. • Construction of drainage, bridges and culvert would only cause temporarily land occupation that may cause access disruption during construction. Improvement of agricultural water management No involuntary resettlement impacts and/or infrastructure (less than $100,000) involuntary resettlement impacts are not Rehabilitation of small water management schemes significant. (<200 ha). • Rehabilitation of existing secondary canals would be within existing ROW and not likely to require land acquisition. There may be cases where affected people with title to land have encroached from their legitimate landholding onto land that they do not own. • Minor land acquisition may be necessary with the enlargement of reservoirs. • Trees and crops within existing ROW would require compensation. Loss of income would also require compensation and significant loss of livelihood would require rehabilitation. • Little or no significant impact is expected on any household. If the conditions for voluntary land donation is met (see para. 15), subprojects can be implemented through voluntary donation. Improvement of rural roads and communication No involuntary resettlement impacts and/or infrastructure (less than $100,000) involuntary resettlement impacts are not

1 In most cases they are unoccupied. However there is a possibility that some land owners along side of ROW encroached from their legitimate land holding onto land that they do not own for agricultural purposes. Appendix 14 Page 7

Possible Land Acquisition and Resettlement Component Impacts Rehabilitation of roads; 3.5m wide laterite surface; up significant. to 10km (mostly 5km or less); raising embankments up Rehabilitation of roads, which include (i) laterite to 2m high and provided with culverts in flood zones. • surfacing of existing 3.5 m wide roads; (ii) raising embankments up to 2 m; and (ii) resurfacing and spot repairs, would cause temporary occupation of land during construction. There may be cases where affected people with title to land have encroached from their legitimate landholding onto land that they do not own. • Trees and crops within existing ROW would require compensation. Loss of income would also require compensation and significant loss of livelihood would require rehabilitation. • Little or no significant impact is expected on any household. If the conditions for voluntary land donation is met (see para 15), subprojects can be implemented through voluntary donation. 2. Increasing Rural Livelihood Options Financial Services No involuntary resettlement effects are foreseen. Improving access to credit through group savings and • The Component will not involve construction of loans through Micro Finance Institutions. new physical facilities.

• Beneficiaries will be determined through community decision-making during Project implementation. Affected people under Component 1 may become beneficiaries of this component. Technical Services No involuntary resettlement effects are foreseen. Demand driven technical services provided by government and non-governmental agencies to Various technical training will be implemented mobilize various groups (Livelihood Improvement • using existing facilities. Agricultural extension Groups; Agricultural Improvement Groups; services will be provided on farm. Improvement to Agricultural Support Systems; Support for Irrigated Agriculture; Improving Off-farm Income • Beneficiaries will be determined through Generation Options). community decision-making during Project implementation. The Project (=targeted Commune) will ensure that affected people under Component 1, particularly, vulnerable affected peoples will benefit from this component.

B. LARF Scope, Objectives and Principles

3. This Land Acquisition and Resettlement Framework (LARF) has been prepared to establish the policies and procedures to guide the planning, implementation and monitoring of TSLRDP subprojects that may require the acquisition of land owned, occupied or used by individuals, households or communities; the acquisition of other assets such as structures, crops and trees; and/or that affect the use of or access to communal land and other common property resources. This LARF will apply to permanent or temporary, full or partial acquisition of land and assets.

4. The overall goal of the LARF is to compensate and assist people affected by land acquisition and resettlement to restore their living standards to levels equal to, if not better than, that which they had before the project.. Key principles include2:

2 See also, Section VI, Compensation and Entitlement Policy Appendix 14 Page 8

(i) Acquisition of land and other assets, and displacement of people will be avoided or minimized as much as possible by identifying possible alternative subproject designs and appropriate social, economic, operation and engineering solutions that have the least impact on populations in the subproject area.

(ii) People affected by land acquisition will be facilitated to participate in all aspects of planning, implementation and monitoring of resettlement activities; they will be assured appropriate and timely dissemination and disclosure of information about the LARF and all activities related to land acquisition. There shall be effective mechanisms for hearing and resolving grievances during the preparation, updating and implementation of resettlement plans. The key information in the resettlement plans will be disclosed to people affected in an understandable format such, as the full Resettlement Plan or public information booklets (PIBs) in a local language, and in Commune offices.

(iii) The absence of legal title to land will not prevent affected people from being included in the policies and procedures of the LARF, including appropriate measures to assist them to improve their socio-economic status.

(iv) Particular attention will be paid to the needs of the poorest affected people, and vulnerable groups that may be at high risk of impoverishment. This will include (i) poor households; (ii) ethnic minority groups; (iii) female-headed households; (iv) landless households; (v) disabled-headed household; and (vi) elderly people without support structures. Throughout resettlement planning and implementation, gender consideration will be incorporated. Assistance for vulnerable groups will be provided to help them improve their socioeconomic status and the Project will ensure that affected people, particularly vulnerable affected people, will become beneficiaries of subprojects (both under Component 1 and 2).

(v) All land acquisition and resettlement activities will be based on comprehensive plans that have been prepared with the participation of affected people and, prior to their implementation, approved by the Government and ADB. Appropriate reporting, monitoring and evaluation mechanisms shall be identified and set in place as part of the resettlement management system. Monitoring and evaluation of the land acquisition, resettlement and rehabilitation processes and the final outcomes will be conducted by an independent monitor.

Appendix 14 Page 9

II. LEGAL AND POLICY FRAMEWORK

5. The Land Acquisition and Resettlement Framework (LARF) for the TSLRDP derives from (i) the formal legal framework of the Royal Government of Cambodia (RGC), principally the 1993 Constitution, the 2001 Land Law and related sub-decrees and regulations; and, (ii) the ADB Policy on Involuntary Resettlement and Operations Manual F2 and other relevant ADB policies.

A. Legal and Policy Framework in Cambodia

6. At present, RGC has not adopted a national policy for involuntary resettlement although work is ongoing to draft a sub-decree3. The current legislation governing land acquisition is the Land Law, signed by the King on the 30 August 2001. It is based on the provisions of the 1993 Constitution.

Table 2: Legal and Policy Framework in Cambodia

The 1993 Constitution of Cambodia states that the “right to confiscate properties from any person shall be exercised only in the public interest as provided by law and shall require fair and just compensation in advance” (Article 44). Article 20 stipulates that “nobody shall be forced to transfer his or her ownership, if forcing is not necessary in the public interest and (if) no proper and just indemnity has been paid to the owner”. Articles 73 and 74 of the Constitution stipulate special consideration and support for vulnerable people including mothers and children, the disabled and families of combatants who sacrificed their lives for the nation.

2001 Land Law (NS/RKM/0801/14, 20 July 2001) governs land and property rights in Cambodia.

• Based on the provisions of the 1993 Constitution, it determines the regime of ownership of immovable properties that are defined as including land, trees and immovable structures. The rights and responsibilities of the RGC with respect to eminent domain are specified in the Land Law. The RGC can acquire private land (i) for public purposes under condition of (ii) fair and just compensation, (iii) paid in advance. • The Land Law, Article 5, states: “No person may be deprived of his ownership, unless it is in the public interest. An ownership deprivation shall be carried out in accordance with the forms and procedures provided by law and regulations and after the payment of fair and just compensation in advance. • Other provisions of the Land Law that are relevant to land acquisition, compensation and resettlement in the context of the TSLRDP include:

(i) Legal possession as defined by the Law is the sole basis for ownership, and all transfers or changes of rights of ownership shall be carried out in accordance with the required general rules for sale, succession, exchange and gift or by court decision. (Article 6) (ii) Any regime of ownership of immovable property prior to 1979 shall not be recognized. (Article 7) (iii) Only persons or legal entities of Khmer nationality are entitled to own land in Cambodia; or to buy or sell land. (Articles 8, 66) (iv) State public land includes, among other categories, any property a) that has a natural origin, such as forests, courses and banks of navigable and floatable rivers or natural lakes; b) that is made available for public use such as roads, tracks, oxcart ways, pathways, gardens, public parks and reserved land; or, c) that is allocated to render a public service, such as public schools, public hospitals or administrative buildings. (Article 15) (v) Persons that illegally occupy, possess or claim title to State public land cannot claim any compensation. This includes land established by the RGC as public rights-of-way (ROW) for roads and railways. Moreover, failure to vacate illegally occupied land in a

3 Work is ongoing on the preparation of a sub-decree for involuntary resettlement under the ADB TA 4490. Appendix 14 Page 10

timely manner is subject to fines and/or imprisonment. (Article 19) (vi) Ownership of the lands is granted by the State to indigenous communities4 as collective ownership, including all the rights and protections enjoyed by private owners. The exercise of collective ownership rights are the responsibility of the traditional authorities and decision-making mechanisms of the indigenous community, according to their customs and subject to laws such as the law on environmental protection. (Article 26) (vii) Persons with legally valid possession of land for five years (at the time the law came into effect) are allowed to be registered as the owner of the land (Article 30). Persons who (at the time the law came into effect) held legal possession but had not yet completed the five years were allowed to remain in possession until they were eligible to be registered as the owner. (Article 31) (viii) However, temporary possession claims made by persons after the law comes into effect will not be recognized, rescinding a previous right under the 1992 Land Law for acquiring land by taking possession. (Articles 29, 34) (ix) Landless people may apply for land for residential and subsistence farming purposes at no cost, as part of a social land concessions scheme. The concessionaire may obtain ownership of this land after fulfilling conditions set out in a separate Sub-Decree on Social Land Concessions. (Articles 50, 51) (x) Acquisition of land through gifts is permitted with the following conditions: a) the gift of immovable property is only effective if it is made in writing and registered with the Cadastral Registry Unit; b) once accepted, gifts of immovable property are irrevocable; and, c) the donor may retain the right of usufruct in the property, and the right of use and habitation of an immovable property. (Articles 80-84)

Other Regulations and Guidelines • The Sub-Decree on Social Concessions (No. 19 ANK/BK, 19 March 2003) provides legal basis for allocations of State private land for purposes of the alleviation of landlessness and poverty, including the replacement of land lost in the context of involuntary resettlement. • With reference to road infrastructure, the RGC Prakas No. 6, “Measures to Crack Down on Anarchic Land Grabbing and Encroachment” (No. 06 BRK, 27 September 1999) prohibits private ownership of State lands, including land adjacent to roads and railways. The Prakas establishes rights-of-way (ROW) for commune roads of 15 meters from the centerline, as well as ROW for provincial and national roads. Ministry of Economy and Finance (MEF) Decree No. 961 (2000) declares that, in order to implement Prakas No. 6, the RGC will not pay compensation to people who occupy the ROW, for any structures or assets located on the land.

B. ADB Policies

7. The aim of the ADB Policy on Involuntary Resettlement (ADB, 2006; ADB, 1995) is to avoid or minimize the impacts on people, households, businesses and others affected by the land acquisition required by a project. Where resettlement is not avoidable, the overall goal of the ADB policy is to compensate and assist affected people to restore their living standards to levels equal to, if not better than, that which they had before the project.

The main objectives and principles of the ADB policy on involuntary resettlement are:

(i) Involuntary resettlement should be avoided where feasible. (ii) Where population displacement is unavoidable, it should be minimized by exploring all viable

4 As per Article 23 of the Land Law, ‘An indigenous community is a group of people that resides in Cambodia whose members manifest ethnic, social, cultural and economic unity and who practice a traditional lifestyle, and who cultivate the lands in their possession according to the customary rules of collective use‘. The indigenous peoples are the only ethnic minorities that are officially recognized as such by the RGC. Few ethnic minorities in the Tonle Sap Basin conform to the definition of an indigenous community in Cambodia. For example, even though most of the Vietnamese were born in Cambodia, they are not Khmer and are classified as immigrants. Appendix 14 Page 11

project options. (iii) People unavoidably displaced should be compensated and assisted, so that their economic and social future would be generally as favorable as it would have been in the absence of the Project. (iv) Affected people (APs) should be informed fully and closely consulted in resettlement and compensation options. (v) Existing social and cultural institutions of APs who must relocate should be supported and used to the greatest extent possible, and APs should be integrated economically and socially into host communities. (vi) Lack of legal rights to the assets lost or adversely affected will not prevent APs from entitlement to compensation and rehabilitation measures. Those without legal title to land occupied or used by them (e.g., non-titled APs) will be entitled to various kinds of resettlement assistance to improve their socio-economic status. (vii) Particular attention must be paid to the needs of the poorest APs and other vulnerable groups that may be at high risk of impoverishment. This may include APs without legal title to land or other assets, households headed by females, the elderly or disabled and other vulnerable groups, particularly ethnic minority peoples. Appropriate assistance must be provided to help them improve their socio-economic status. (viii) All stages of resettlement identification, planning, and management will ensure that gender concerns are incorporated, including gender-specific consultation and information disclosure. This includes special attention to guarantee women’s assets, property, and land-use rights; and to ensure the restoration of their income and living standards. (ix) As far as possible, involuntary resettlement should be conceived and executed as part of the project. Involuntary resettlement is to be treated as a development opportunity. (x) The full costs of resettlement and compensation should be included in the presentation of project costs and benefits.

Policy on Gender and Development (ADB, 2006; ADB, 1998) adopts gender mainstreaming as a key strategy for promoting gender equity, and for ensuring that women participate in and that their needs are explicitly addressed in the decision-making process for development activities. For projects that have the potential to have substantial gender impacts, a gender plan is prepared to identify strategies to address gender concerns and the involvement of women in the design, implementation and monitoring of the project. ADB’s OM F2/OP requires that the findings of a gender analysis be included in the RP, and at all stages, resettlement identification, planning, and management will ensure that gender concerns are incorporated, including gender-specific consultation and information disclosure. This includes special attention to guarantee women’s assets, property, and land-use rights; and to ensure the restoration of their income and living standards. Policy on Indigenous Peoples (ADB 1998) defines indigenous or ethnic minority peoples as “those with a social or cultural identity distinct from the dominant or mainstream society, which makes them vulnerable to being disadvantaged in the processes of development.” The Policy recognizes the potential vulnerability of ethnic minorities in the development process; that ethnic minorities must be afforded opportunities to participate in and benefit from development equally with other segments of society; and, have a role and be able to participate in the design of development interventions that affect them. Public Communications Policy (ADB, 2005) seeks to encourage the participation and understanding of people affected by and other stakeholders to ADB-assisted activities. Information on ADB-funded projects should start early in the preparation phase and continue throughout all stages of project development, in order to facilitate dialogue with affected people and other stakeholders. The Executing Agency should, as necessary, develop a project communications plan and designate a focal point to maintain contact with affected people. With respect to land acquisition, compensation and resettlement, information should be distributed to affected peoples (APs) and publicly in the following manner: (i) prior to loan appraisal, the draft Resettlement Plan (RP); (ii) following completion of the final RP, the final RP; and, (iii) following any revisions, the revised RP. This information can be in the form of brochures, leaflets or booklets, in the local language(s) as well as English, the working language of the ADB. When APs include non-literate people, other appropriate methods of communications will be used. Accountability Mechanism (ADB, 2003) serves to enhance the capacity of ADB to respond to, prevent and/or resolve problems associated with the implementation of its policies in ADB-funded project. It consists of two separate but complementary functions: (i) a consultation phase consisting of Appendix 14 Page 12 a special project facilitator (SPF) who will respond to specific problems of locally affected people in ADB-assisted projects through a range of informal and flexible methods; and, (ii) a compliance review phase consisting of a compliance review panel (CRP) to investigate and make recommendations to remediate alleged violations of ADB operational policies and procedures that have resulted or are likely to result in direct, adverse and material harm to project-affected people. The relevant ADB operations department has the initial responsibility to respond to the concerns of affected communities.

C. Resolving Inconsistencies

8. In all instances where TSLRDP subprojects require land acquisition and resettlement, the provisions and principles adopted in the Land Acquisition and Resettlement Framework for the TSLRDP will supersede the provisions of relevant decrees currently in force in Cambodia wherever a gap exists between RGC laws and regulations and the policies of the ADB.

Appendix 14 Page 13

III. LAND ACQUISITION AND RESETTLEMENT PLAN

9. The Development Committees (PRDC) in six participating provinces, in collaboration with PDWRAM, PDRD, Provincial Resettlement Subcommittee (PRS) of the Provincial Department of Economy and Finance and assistance from the Commune Land Acquisition Committee (CLAC) are responsible for the preparation of Provincial Land Acquisition and Resettlement Plan (LARP). This section sets out the scope and procedures for preparation, approval and implementation of the LARP.

A. Subproject Categorization

10. Resettlement planning for subprojects will be part of the individual subproject preparations. The type of resettlement plan and preparation procedure will be defined by the significance of probable involuntary land acquisition and resettlement impacts.

(i) Category A: Significant land acquisition and resettlement occurs when 200 people or more are severely affected by (i) being physically displaced from housing or (ii) losing 10% or more of their productive land or other income-generating assets. Category A subprojects will require a full resettlement plan.

(ii) Category B: Subprojects with involuntary resettlement impacts that are not deemed significant and require a short resettlement plan.

(iii) Category C: Proposed subproject does not involve any land acquisition and no further resettlement-related planning is necessary.

B. Subproject Screening

11. Subproject screening will be undertaken through following steps:

(i) Social Infrastructure (Commune Livelihoods Funds) In the Commune Investment Plans (CIP), Commune Council will confirm, based on the technical option selected, on the preliminary subproject design, and subproject categorization form, the subproject falls under category (C). The resettlement impact categorization form must be attached to the CIP. Commune Council Chief has to certify that new facilities would be constructed on unused public lands. In case that it was decided that the subproject would only require voluntary donation from Commune and/or any individual and not require involuntary resettlement, the Commune Council Chief also has to describe safeguard measures in the CIP. For category (B) subprojects, follow the procedure in para. 16.

(ii) Water Management Infrastructure/ Rural Roads and Communication Infrastructure: Based on the technical option selected and on the preliminary subproject design, the subproject falls under either category; (B) not significant resettlement impact; or (C) no resettlement impact. The provincial level units of MOWRAM and MRD will screen subprojects under this component and ensure that only subprojects whose resettlement impacts remain within the limits of a category B subproject will be financed by the Project.

C. Preparation of Commune LARP

12. Resettlement focal point of each provincial department, assisted by consultants, will prepare a Commune Land Acquisition and Resettlement Plan (Commune LARP) that covers several subprojects in the same commune in the same year. A Commune LARP must indicate resettlement impact of each subproject. In case of voluntary donation from Commune and/or any individual, Voluntary Land Donation Form (See Appendix 1 for a sample form) must be attached to the Commune LARP. If several Commune LARPs are prepared at the same time, they may be Appendix 14 Page 14 consolidated into a Provincial Land Acquisition and Resettlement Plan by the MOWRAM before submission to ADB.

13. Subprojects with No Land Acquisition (Category C): If the proposed subproject does not involve any land acquisition, no further resettlement related planning is necessary. However, subprojects’ information should be included in the Commune LARP.

14. Subprojects with Voluntary Donation (Category B/C): There will be subprojects where (i) 100% of land will be voluntarily donated (Category C); (ii) some land will be donated but it requires involuntary resettlement (Category B).

• Subprojects with 100% voluntary Donation (Category C): If the proposed subproject requires small amounts of land and meets the following conditions, safeguard may be built into the community decision-making process to deal with any losses that arise. No further resettlement related planning is necessary. However, subprojects’ information should be included in the Commune LARP ;

(i) Subproject site is selected in full consultation with landowners and any nontitled affected people; AND

(ii) Voluntary donations do not severely affect the living standards of affected people and the amount of agricultural or other productive land to be acquired from each AP does not exceed 5% of the total productive landholdings of the household; AND

(iii) Land donations are linked directly to benefits for the affected people; AND

(iv) Any voluntary ‘donation’ will be confirmed through written record and verified by an independent third party such as Independent Monitoring Organization; AND

(v) There is an adequate grievance process (as described in para. ); AND

(vi) No AP will be displaced from housing and severely affected; AND

(vii) Vulnerable AP(s) will benefit from the Component 2 of the Project AND

(viii) No voluntary donation will be accepted from vulnerable APs.

• Subprojects with some Voluntary Donation (Category C/B): Voluntary donation is only being permitted when AP meets with the following conditions:

(i) Subproject site is selected in full consultation with AP; AND

(ii) The donation does not exceed 5% of AP’s total land holdings: AND

(iii) AP will be benefited from the infrastructure; AND

(iv) AP is not considered as vulnerable.

15. The Commune Land Acquisition Committee (CLAC) in collaboration with the leadership of affected villages is responsible for preparation of voluntary land donation report (VLDR) through the following activities. All land/asset donated by the community/individual households will be appraised and assessed value will be shown in the attached Appendix (Resettlement Plan) to reflect the cost donated by community/individual. The VLDR will also be an integral part of the Commune LARP that requires land acquisition.

(i) Field measurements to determine the amount of land affected and to confirm that the voluntary land donation meets the above criteria (para. 15). Appendix 14 Page 15

(ii) Public meetings in each affected village to present information about the proposed project and land acquisition and to respond issues and concerns raised by affected people and other stakeholders. The information should include (a) description of the subproject and its benefits; (b) affected people’s rights and options to accept or not voluntary donation; and (c) official lists of affected households indicating the amount of land to be affected.

(iii) Signed Statements of Voluntary Contribution from each individual or household agreeing to voluntarily contribute land (and any attached assets), indicating their informed consent. Any voluntary contribution will be verified by an independent monitor. (See Appendix 1 for a sample form.)

16. Subprojects with Involuntary Resettlement (Category B): For any subproject that will entail land acquisition and resettlement must collect the following information;

(i) the scope and extent of land acquisition, compensation and resettlement, summarizing the results of the census and inventory of APs and their affected assets;

(ii) a socio-economic profile of APs including an analysis of vulnerable APs (women, ethnic minorities, poor households) based on a sample of 100% of severely affected APs and at least 20% of other APs;

(iii) the policy and legal framework, including eligibility criteria and an entitlement matrix;

(iv) community consultation and public disclosure arrangements, and mechanisms for resolution of conflicts and appeals procedures;

(v) roles and responsibilities of the IA, the PRS, the PDWRAM, PDRD, the CLAC and other stakeholders for resettlement planning, implementation and monitoring;

(vi) internal and external monitoring roles, responsibilities and procedures;

(vii) detailed rates and cost estimates for land acquisition, compensation and resettlement, and budget provisions, and relocation and income restoration strategies;

(viii) Implementation schedule showing how compensation and resettlement activities will be scheduled and coordinated with civil works.

17. In each province, the resettlement planning for all subprojects under category B that are prepared at the same time will be consolidated into a single Commune Land Acquisition and Resettlement Plan (Commune LARP) that will be prepared by the PDRAM and PDRD with assistance from the resettlement specialists and CLACs under the guidance of IRC. The procedure for preparation, finalization and approval are as follows.

(i) PRS will recruit a professional appraiser to conduct a replacement cost survey (RCS) in the subproject areas once a year, to determine current market prices for (i) agricultural, residential and commercial land; (ii) different types of structures; and, (iii) crops and trees. Terms of reference for the RCS are included in Appendix 2.

(ii) In line with subproject (under Component 1 and 2) planning, the resettlement focal point from PDWRAM and PDRD with assistance from resettlement specialists (consultants), CLAC and village under the guidance of IRC will (i) undertake a census of all APs; (ii) conduct a detailed measurement survey (DMS) following detailed design of the subproject and demarcation of land Appendix 14 Page 16

acquisition requirements; and (iii) undertake a socioeconomic survey of at least 10% of all APs, 20% of severely affected APs. The DMS will survey 100% of APs and collect data on (i) total landholdings and tenure; (ii) land, structures and other assets entirely or partially affected by land acquisition for the subproject; (iii) income losses and proportion of total productive income lost; (iv) category of APs (e.g. vulnerable); and (v) list of activities proposed under Component 2 that APs will benefit from. Other relevant information will include: (i) technical drawing of structures; (ii) exact measurements of land and other fixed assets; (iii) detailed descriptions and specifications of building materials; and, (iv) photographs of each structure. Signed Statements of Voluntary Contribution from each individual or household will also be collected by CLAC.

(iii) Following the DMS/SES or in conjunction with DMS/SES, the resettlement focal point from PDWRAM and PDRD will prepare a draft Commune LARP, which will clearly set out for each subproject the loss of land and other assets for each AP in accordance with the agreed entitlement matrix5; and, compensation rates and amounts from RCS. The official lists of APs, their losses and compensation and assistance amounts will be appended to the draft Commune LARP. If the subproject will not require involuntary resettlement, voluntary land donation report (VLDR) will be prepared and information will be included in the Commune LARP.

(iv) The draft Commune LARP will be presented to APs by PDRAM and PDRD and other stakeholders in public meetings in villages and communes in the subproject areas. APs will be encouraged to raise issues and make suggestions about land acquisition requirements; compensation rates and amounts; and, other aspects of resettlement activities. Copies of the draft Commune LARP and/or summary brochures will be available during these consultations. The draft Commune LARP will be made available to APs at village and commune offices in target communes.

(v) The PDRAM and PDRD, assisted by resettlement specialists will prepare the final Commune LARP, incorporating the comments from of APs and other documents, and submit it for review and approval to the PRDC and PRS/IRC. At this stage, PDRAM and PDRD, or MOWRAM may consolidate several Commune LARP into one Provincial LARP to facilitate the review..MOWRAM and PRS/IRC will submit the Commune or Provincial LARP to IRC and ADB for review and approval. The Commune or Provincial LARP will be disclosed in accordance with the ADB Public Communications Policy (ADB, 2005) to the affected communities and on the ADB website after it has been approved.

F. Implementation of LARP

18. The procedures for implementation of the provincial and individual LARPs include:

(i) Land acquisition, compensation and relocation of APs cannot commence until the LARP has been reviewed and approved by the IRC and no objection or approval given by ADB.

(ii) All resettlement activities will be coordinated with the civil works schedule. Civil works contractors will not be issued a notice of possession of the site until a) compensation and relocation of APs have been satisfactorily completed; b) agreed rehabilitation assistance is in place; and, c) the site is free of all encumbrances.

5 If there are new categories of APs and/or losses identified during the DMS (other than those described in the entitlement matrix), the entitlements will be derived in accordance with ADB’s policy and handbook. Appendix 14 Page 17

IV. COMPENSATION AND ENTITLEMENT POLICY

19. Objective: The overall objective of the compensation and entitlement policy for the TSLRDP is to ensure that all people affected by the Project are able to maintain and, preferably, improve their pre-project living standards and income-earning capacity through compensation for the loss of physical and non-physical assets and, as required, other assistance and rehabilitation measures. The entitlement matrix may not cover all types of impacts but can be enhanced in the resettlement plans based on the findings of the social assessment and subproject specific impacts. Standards described will not be lowered but can be enhanced in the subproject resettlement plans as required.

20. Principles: The following principles have been adopted for the TSLRDP to guide the compensation and entitlement policy:

(i) Acquisition of land and other assets, and resettlement of people will be avoided or minimized as much as possible by identifying possible alternative project designs. (ii) Lack of legal rights to the assets lost or adversely affected tenure status or citizenship, social or economic status will not bar the AP from entitlements to such compensation and rehabilitation measures or resettlement objectives6. (iii) Compensation at replacement cost will be applied to all losses except illegally occupied land; and all APs, regardless of whether or not they have recognizable rights or claims to land, will be entitled to compensation at full replacement cost based on prevailing market prices for the following affected assets and losses: structures, crops, tree and other physical assets; and businesses, business income and other sources of income. There will be no deductions in compensation payments for land, structures or other affected assets for materials savage value, depreciation, taxes, stamp duties, fees or other payments. APs without recognizable rights or claims to land will be assisted to find alternative sites or income sources, depending on their losses. (iv) APs that lose only part of their physical assets will not be left with a portion that will be inadequate to sustain their current standard of living. The minimum size of a remaining residential plot of land will not be less than 30 m2. (v) Due attention will be given that all the vulnerable and severely APs will become beneficiaries of subprojects or TSLS project interventions. (vi) Temporarily affected land and communal infrastructure will be restored to pre- project conditions. (vii) Vulnerable Group Strategies will be implemented in order to protect socially and economically vulnerable groups at high risk of impoverishment, such as poor households, ethnic minority groups, female-headed households, disabled-headed households, landless households, and elderly people without support structures. Special measures are included in the Entitlement Matrix.

6 People without legal rights are referred to as ‘non-titled’ in the ADB Operations Manual, and include those who have no recognizable rights or claims to the land that they are occupying and/or using. The policy also states that restoration measures must be determined in consultation with affected communities, including those people who might not be formally recognized in national legislation. Those without legal title to land and/or structures occupied or used by them (e.g., squatters) are entitled to various options of resettlement assistance, provided they cultivated/occupied the land before the eligibility cut-off date. Appendix 14 Page 18

Table 3: Vulnerable Group Strategies

(i) Surveys of socio-economic conditions of APs will identify the conditions, needs and preferences of poor households, ethnic minority groups, female-headed households, disabled-headed households, landless households, and elderly people without support structures; monitoring of resettlement activities will assess separately the impacts on vulnerable APs. (ii) Ensure that the process of land acquisition and resettlement does not disadvantage poor households, ethnic minority groups, female-headed households, disabled-headed households, landless households,, and elderly people without support structures. (iii) Separate consultations will be undertaken for different vulnerable AP groups particularly female-headed housholds and ethnic minorities to facilitate and encourage their participation. Preparation of information materials will take into consideration, as relevant, the language and literacy skills of participants, as well as other gender and cultural parameters that would affect their participation. (iv) The Project will give priority to vulnerable APs for employment for construction, operation and maintenance of physical infrastructure or other Project activities. The form of payment will be cash or food-for-work, at levels commensurate with current wage levels in the project area. (v) As per the Labor Code (1997) all employment for the Project will respect Government commitments to gender equity including (i) employment targets for women; (ii) ensuring that no child labor or trafficked labor will be used; (iii) no discrimination against the employment of qualified women; and, (iv) no differential wages paid to men and women for work of equal value. (vi) The TSLRDP Implementing Agencies (IA) will endeavor to designate women and, where relevant, ethnic minorities as members to work with vulnerable APs in all kinds of resettlement activities and rehabilitation programs. (vii) The members of Commune Land Acquisition Committees (CLACs), as well as other local officials involved in planning and implementation of subproject resettlement programs will include female and, as relevant, ethnic minority representatives. This may include, as appropriate: a) female and/or Cham Commune Councilors; b) designated Gender Focal Points (GFP) at the commune and district levels; c) female and Cham members of Village Development Committees (VDC) where appropriate; and, d) representatives of the provincial departments of Women’s Affairs and Rural Development (Ethnic Minority Development Departments). (viii) Vulnerable APs will participate in the planning and implementation of commune development fund. The implementing agencies of Component 2 (Local NGOs and provincial departments) willl target the issues and needs of poor households, ethnic minority groups, female-headed households, disabled-headed households, landless households,, and elderly people without support structures by inviting them to participate at planning stage.

21. Entitlement Matrix: The Entitlement Matrix (Table 4) summarizes for different types of impacts, which APs are eligible and their entitlements for compensation; and, provides guidance on implementation issues. The Entitlement matrix may not cover all types of impacts but can be enhanced in the resettlement plans based on the findings of the social assessment and subproject impacts. Standards described in the Entitlement Matrix will not be lowered but can be enhanced in the subprojects Land Acquisition and Resettlement Plans as required.

(i) Definition of Affected People (AP): As per ADB policy, the term “affected people (APs)” includes any person, household, firm or private institution that on account of changes resulting from land acquisition or other activities of a development will have its:

• standard of living adversely affected;

• right, title or interest in any house, land (including residential, commercial, agricultural, forest, salt mining and/or grazing land), water resources or any other moveable or fixed assets acquired, possessed, restricted or otherwise adversely affected, in full or in part, permanently or temporarily; and/or

• business, occupation, place of work, residence or habitat adversely affected, with or without displacement.

Appendix 14 Page 19

(ii) Category of AP7:

• Legal land users: Owners of private land who have registered title to the land and their status is recognized by the Cadastral Administration Office;

• Legalizable and recognized land users: Legalizable land users are owners of private land who are eligible for or waiting for issuance of registered title and their status is recognized by the Cadastral Administration office. Recognized land users are users/occupants of land that have a) proof of occupation dating prior to 30 July 2001 (the date of coming into force of the Land Law); and b) do not have legal title or proof of occupation prior to 30 July 2001, but recognition of permanence is obtained from local authorities;

• Non-legal land users: Users/occupants of land without legal, possessory or recognized land use rights.

• Owners of houses and other structures whether or not a) there is registered title to the land or b) a permit was issued to construct the structure;

• Owners of businesses whether or not the businesses are registered;

• Lease or permissory users: Users/occupants that lease or have permission to use affected land and/or affected structures (houses, shops, market stalls, etc.) whether or not a) the land and/or structures are owned by private parties or the State or b) the tenancy is based on a formal lease or permission of the owner;

• Agricultural laborers, non-agricultural laborers and employees temporarily or permanently affected by the Project.

(iii) Vulnerable Groups: The LARF recognizes that certain social groups may be less able to restore living conditions, livelihoods and income levels; and, therefore, at greater risk of impoverishment when their land and other assets are affected. Affected people (AP) who belong to vulnerable groups8 are eligible for special assistance to assist them to restore their socio-economic conditions. In the context of TSLRDP, the principal vulnerable groups are:

• Poor households: About 50% of villages have 40–60% of households living below the poverty line in the Tonle Sap region9 according to social assessment undertaken during the project preparatory stage, with a peak of 80% in some rural areas of Siem Reap and Kompong Chhnang provinces;

• Landless: Landless households or those not having enough land to grow sufficient food to meet household consumption needs. In general, they rely on

7 The present legal status of land use in Cambodia can be classified as: (i) Privately owned land with title: The owner has official title to land, and both the owner and the Cadastral Administration Office have a copy of the deed. (ii) Privately owned land without title: The owner has make application for title to land, and is waiting for the issuance of a title deed. The Cadastral Administration Office recognizes the owner. (iii) Land use rights certified by the Government: In this case, a receipt for long-term land use has been issued. This land use right is recognized by the Cadastral Administration Office. (iv) Lease land: The Government or private owners lease the land, usually for a short period. There is provision for the owner to reclaim land if it is needed for development. (v) Non-legal occupation: The user has no land use rights to State land that he occupies or uses. The Cadastral Administration Office does not recognize the use of this land.

8 APs who are severely affected by land acquisition are also eligible for special assistance. 9 The poverty line is the expenditure needed to secure an intake of 2,100 calories per person (equivalent adult) per day, plus basic items like clothing and shelter. Appendix 14 Page 20

wage labor in the region, elsewhere in Cambodia and in Thailand, and are particularly vulnerable to natural, medical and other shocks;

• Female headed households: In the TSLRDP target communes, the proportion of female-headed households ranges from 8% to 36% based on data from the 2005 Commune Data Base. Female-headed households are poorer; they make up 41% of the poor and 32% of the poorest wealth categories compared with 18% and 24% among rich households and middle wealth households respectively;

• Ethnic minority groups10: The Cham is the major group of non-Khmer living in the TSLRDP target districts and communes. Throughout the TSLRDP provinces, Cham live in all-Cham and mixed Cham-Khmer villages. Although the Cham are Muslim and form communities based on religious, social and cultural practices, their livelihoods are similar to the majority Khmer population. In general, they practice wet-rice cultivation, and are also engaged in a diversity of other agricultural (livestock, fishing) and non-agricultural (business, micro- enterprises) activities. In addition, Vietnamese communities and communities of indigenous peoples, in particularly Kuy and Por, have been identified in or adjacent to the outer limits of the TSLRDP project area although no known communities are included in the target TSLRDP communes.

• Others (Disabled-headed households and elderly people): Most of Cambodia experienced more peace and economic growth after 1993 but only since 1998 have areas northwest of the Tonle Sap enjoyed their first real respite from war. The percentage is unclear, however, many repatriated refugees, demobilized solders are considered to fall under the category of disabled-headed households and elderly people.

(iv) Eligibility: All APs residing, working, doing business and cultivating land within the subproject impacted areas as of the cut-off date will be entitled to compensation for their affected assets; and, rehabilitation measures sufficient to assist them to improve or at least maintain their pre-project living standards, income-earning capacity and production levels. The cut-off date will be the final day of the census in each subproject area. Those who encroach into the subproject area after the cut-off date will not be entitled to compensation or rehabilitation.

10 There are no comprehensive data currently available on the ethnicity of people living in Cambodia. The 2006 CBD due to be published in early 2007 will provide a database of the numbers of Khmer and other ethnic groups resident in all communes. The following is based on information provided by key informants and a small survey of non-Khmer communities conducted during the PPTA for the TSLRDP. Appendix 14 Page 21

Table 4: TSLRDP Entitlement Matrix

Type of Level of Entitled Compensation Policy Impact Impact Persons

1. Agricultural land (including fishponds)

Temporarily Loss of use of User with legal ƒ No compensation for land (if returned to original user). affected the land for a or legalizable/ ƒ Assets affected temporality will be restored to pre-project or agricultural period less recognized better condition. land then 1 year right ƒ Cash compensation for loss of standing crops and trees at replacement cost ; AND ƒ Compensation for loss of net income from subsequent crops that cannot be planted.

User with ƒ No compensation for land (if returned to original user). lease or ƒ Assets affected temporality will be restored to pre-project or permissory better condition. right ƒ Cash compensation for loss of standing crops and trees at replacement cost; AND ƒ Compensation for loss of net income from subsequent crops that cannot be planted within the remaining lease/assigned period.

Non-legal user ƒ No compensation for land (if returned to original user). ƒ Assets affected temporality will be restored to pre-project or better condition. ƒ Cash compensation for loss of standing crops and trees at replacement cost.

Permanently Loss is less User with legal ƒ Cash compensation at full replacement cost for affected land. affected than 10% of or legalizable/ ƒ Cash compensation for loss of standing crops and trees at agricultural total productive recognized replacement cost. land assets (e.g., right 10% of total landholdings) User with ƒ Cash compensation for loss of net income for the remaining lease or leased/assigned period. permissory ƒ Cash compensation for loss of standing crops and trees at right replacement cost.

Non-legal user ƒ Cash compensation for loss of standing crops and trees at replacement cost.

Loss is equal User with legal ƒ Replacement land of equal area and productivity at a location to 10% or more or legalizable/ acceptable to APs in the same commune, OR of total recognized ƒ Cash compensation for acquired land at full replacement cost; productive right AND assets (e.g., ƒ Cash compensation for loss of standing crops and trees at 10% of total replacement cost. landholding) User with ƒ Replacement land of equal area and productivity at a location lease or acceptable to APs in the same commune; OR permissory Cash compensation for lost income from the affected land for the right remaining lease/assigned period; AND Cash compensation for loss of standing crops and trees at replacement cost.

Non-legal user Cash compensation for loss of standing crops and trees at replacement cost. If AP has no other productive land, replacement land will be allocated in lieu of compensation for loss of land use, with equal area and productivity at a location acceptable to APs in the same commune.

2. Residential and/or commercial land

Temporarily Any type All users ƒ Land restored to the same, if not better condition as before. affected Appendix 14 Page 22

Type of Level of Entitled Compensation Policy Impact Impact Persons

Permanently With no User with legal ƒ Cash compensation for the affected land at full replacement cost; affected structures or legalizable/ OR recognized ƒ Replacement land of similar size at a location of not further than right 5km from the existing site acceptable to the AP. ƒ Cash compensation for any investment made on the land.

Non-legal user ƒ Cash compensation for loss of land use. ƒ Cash compensation for any investment made on the land.

With structures User with legal ƒ Cash compensation for land lost at full replacement cost; AND built AND or legalizable/ ƒ Cash or assistance for repair to rebuild the structure in case of remaining land recognized partial impact. sufficient to right ƒ Compensation for any investment made on the land. reorganize Non-legal user ƒ Cash compensation for loss of land use. ƒ Compensation for any investment made on the land.

With structures User with ƒ Replacement land of equal size at a location of not further than built AND permanent 5km from the existing site acceptable to APs in the same remaining land right (legal and commune; OR NOT sufficient legalizable ƒ Cash compensation for the lost land at full replacement cost and to reorganize assistance from Commune Land Acquisition Committee to locate possible plots for relocation.

Non-legal user ƒ Cash compensation for loss of land use. ƒ If AP has no other land to rebuild structure, replacement land of 105m2 (7m x 15m) will be allocated in lieu of compensation for loss of land use, at a location of not further than 5km from the existing site acceptable to the AP in the same commune. ƒ Compensation for any investment made on the land.

3. Residential and/or commercial structures

Completely Owner of ƒ Compensation at full replacement cost in cash, materials or both, affected or structure for entire structure. No deduction for depreciation or salvageable partially regardless of materials. affected and land tenure ƒ Assistance from Commune Land Acquisition Committee, for unable to example, material transportation, as required, to rebuild. rebuild on remaining land

Partially Owner of ƒ Compensation at full replacement cost in cash, materials or both, affected and structure for the affected portion. No deduction for depreciation or able to rebuild regardless of salvageable materials. on remaining land tenure ƒ Assistance from Commune Land Acquisition Committee, for land example, material transportation, as required, to rebuild.

4. Other private property

Owner ƒ Cash compensation for affected property at replacement cost with regardless of no deduction for depreciation or salvageable materials, OR land tenure ƒ Compensation to relocate the property, OR Repair of property by contractor to original or better condition.

5. Trees/ standing crops/ fish crops

Owner ƒ Cash compensation for loss of trees and standing crops at regardless of replacement cost; land tenure ƒ Compensation at replacement cost for trees, calculated on the basis of type, age, and productive value of affected trees. Appendix 14 Page 23

Type of Level of Entitled Compensation Policy Impact Impact Persons

Village or ƒ Restoration of affected community buildings and structures at Commune least to their previous conditions; OR ƒ Replacement of affected community buildings and structures, as identified in consultation with communities and relevant authorities.

7. Business and income sources (non-land based assets)

Temporary All APs ƒ Cash compensation for actual net income loss for the duration of loss business/income generation disruption.

Permanent Loss of less All business ƒ Cash compensation for transitional period11 from the disruption loss than 10% of owners period till the new business is operated. business regardless of Income status

Employees or ƒ Cash compensation for lost salary/wages for months they cannot hired laborers work. ƒ If job is permanently lost, transitional period to get employment AND assistance in securing new employment, including relevant skills.

Loss of 10% or All business ƒ Cash compensation for transitional period from the disruption till more of owners the new business is operated, AND business regardless of ƒ Business rehabilitation package (see 8 below) income and/or status relocating business Employees or ƒ Cash compensation for transitional period from the disruption till hired laborers they are employed, OR ƒ Cash compensation for remaining contract period, whichever is higher. ƒ If job is permanently lost, all APs (employees and hired labor) will be assisted to secure new employment particularly those under the component 2.

Economic rehabilitation package: ƒ Transition allowance: Cash equal to 20kg of rice per household APs losing 10% or more of productive land, member per month, for 6 months; AND losing other income generating assets; and ƒ Activities under Component 2, which will be determined by vulnerable APs (poor households, ethnic affected Communes through participatory decision making. minority groups, female-headed households, (i) Livelihood Improvement Groups; or disabled-headed households, landless (ii) Agricultural Improvement Groups; or households, and elderly people without support (iii) Improvement to Agricultural Support Systems; or structures) . (iv) Support for Irrigated Agriculture; (v) Improving Off-farm Income Generation Options.

Transport allowance: ƒ Cash assistance of $10-$20 per market stall; $40 for houses APs that relocate to rebuild their houses. being relocated on same plot; $60 for houses relocated to another plot in same village area; and, $70 for houses relocated elsewhere in the same commune.

Living allowance: ƒ 20kg of rice/month/household member for one month for ƒ APs that rebuild houses/shops on remaining structures made of light materials or wood (Types12 1A to 2D) land. under 5m x 12 m

ƒ 20kg of rice/month/household member for three months for structures made of concrete and brick and for large wood structure (Types 2E to 4B) or larger than 5m x 12m.

11 This will be specified in the RP, the DMS period Appendix 14 Page 24

Type of Level of Entitled Compensation Policy Impact Impact Persons

ƒ 20kg of rice/month/household member for three months for ƒ APs that rebuild houses/shops on other piece structures made of light materials or wood (Types 1A to 2D) under of land in the same commune. 5m x 12 m

ƒ 20kg of rice/month/household member for six months for structures made of concrete and brick and for large wood structure (Types 2E to 4B) or larger than 5m x 12m.

Business rehabilitation package: ƒ Assistance to establish a similar or new business (e.g., access to APs with severely affected businesses (loss of credit, site selection, labor arrangements, and training). or 10% or more of business income and/or APs ƒ Activities under Component 2 (Financial Service) that relocate their businesses. ƒ For severely affected businesses, move to village markets to be constructed under Component 1 where applicable.

Severely affected vulnerable APs: ƒ Additional transition allowance: Cash equal to 20kg of rice per APs that are poor, female-headed households household member per month, for 6 months. or belong to other vulnerable groups.

12 The types of structures will be defined in the Replacement Cost Study report conducted by independent asset appraiser. Appendix 14 Page 25

V. INSTITUTIONAL ARRANGEMENTS

22. Inter-Ministerial Resettlement Committee: The Inter-Ministerial Resettlement Committee (IRC13) was established in 1999 by the Council of Ministers. The IRC will be convened for every project with membership from MEF, the Council of Ministers, the Ministry of Public Works and Transport, the Ministry of Agricultural, Forestry and Fisheries and Governors and Deputy Governors of Project provinces to deal with all resettlement issues arising from all projects requiring land acquisition and resettlement. Members may also include representatives of other relevant ministries and/or provincial departments (e.g., Water Resources and Meteorology, Rural Development, Environment and Land Management).

23. Provincial Resettlement Subcommittee (PRS): A Provincial Resettlement Subcommittee (PRS) chaired by the Governor (or his representative) will be established in each of the 6 provinces. Membership will include Directors of provincial departments involved in the TSLRDP (Provincial Department of Economy and Finance (PDEF), Water Resources and Meteorology, Rural Development, Environment, Land Management, Women’s Affairs, etc.); and, a permanent deputy from target districts (District Governors or Deputy District Governors).

24. The IRC in close coordination with PRS will be responsible for the TSLRDP in each of the project provinces:

(i) Conduct a provincial replacement cost survey (RCS) in the context of the preparation of LARPs for subprojects involving involuntary land acquisition by recruiting a professional appraiser. Prepare a proposal for compensation rates at replacement cost for each Province, update every year, based on current market prices. Approve compensation rates for subprojects involving involuntary land acquisition.

(ii) Review and approve Land Acquisition and Resettlement Plans (LARPs) for subproject involving involuntary land acquisition, and in concert with MOWRAM submit to ADB for approval.

(iii) Disburse funds to Department of Economy and Finance (PDEF) to pay for land acquisition, compensation and deliver all other entitlements to APs, in accordance with the approved LARPs.

(iv) Disburse funds directly to the line agencies and guidance for conducting the DMS, other surveys and fields and all other resettlement activities required to prepare and implement the LARP.

(v) Review and endorse quarterly provincial monitoring reports, and oversee remedial actions as required; and, review and endorse all external monitoring reports prepared by the independent monitoring organization (IMO).

(vi) Manage and disburse funds to PDWRAM and PDRD for conducting the DMS, other surveys and fields and all other resettlement activities required to implement the approved LARP.

(vii) Recruit and contract IMO, review and endorse IMO reports and submit to MOWRAM, and the ADB.

25. Ministry of Water Resources and Meteorology: The Executing Agency (EA) will assure overall coordination, planning, implementation and reporting for the TSLRDP. The EA will

13 The Ministry of Economy and Finance (MEF) is the permanent Chair of the IRC; the secretariat for the IRC is the Resettlement Unit (RU) at MEF. Appendix 14 Page 26 guide, support, endorse and monitor the work of the Provincial Agencies and Provincial Executive Committee (ExCom) in each TSLRDP province for all activities related to planning, implementation and monitoring of land acquisition and resettlement where required, including:

(i) Prepare a Guideline on Resettlement and Land Acquisition, in consultation with PRS, which includes training program for provincial resettlement officers, based on this Framework and submit it for approval of ADB.

(ii) Provide initial training14 to provincial implementing agencies’ resettlement focal points and Commune Land Acquisition Committees (CLACs) related to planning, implementation and monitoring of plans and activities for voluntary and involuntary land acquisition.

(iii) Review and approve Commune Land Acquisition and Resettlement Plans (LARPs) that includes all the subprojects involving involuntary resettlement and submit to IRC and ADB for approval.

(iv) Develop internal monitoring indicators, procedures and reporting requirements for all subprojects that are require involuntary land acquisition. Review and endorse quarterly provincial monitoring reports, particularly it concerns management of budget, other resources and schedules; and, oversee remedial actions as required. Review and endorse all external monitoring reports prepared by the IMO.

(v) Coordinate with the PRS and oversee the payment of compensation and allowances to APs. The funds for payment of compensation and allowances to APs will be disbursed by IRC directly to provincial Department of Economy and Finance (PDEF).

26. Provincial Line Agencies (PLA): In each Province, each IA, PDWRAM and PDRD, will appoint a resettlement focal point with responsibility to coordinate, carry out and monitor land acquisition and resettlement activities as a part of subproject planning (e.g. feasibility study and detailed design). The PRDC and the resettlement focal point will coordinate with the EA, IAs, PRS, and Communes in carrying out the following roles and responsibilities:

(i) Conduct field assessments for initial screening of subprojects to determine land acquisition requirements, and collaborate with provincial resettlement focal point on finalization of subproject proposals.

(ii) Conduct DMS (if necessary by contracting other parties or CLAC).

(iii) For subprojects that involve involuntary resettlement, prepare a Commune Land Acquisition and Resettlement Plan (LARP) that includes all subprojects with minor land acquisition and resettlement impacts. Each resettlement focal point will coordinate closely with CLACs in the preparation. The Commune LARPs will

14 At the inception of the TSLRDP, a capacity building training program focused on how to implement this LARF will be designed by the resettlement specialist (consultant) and implemented for provincial, district, commune and village leaders in the TSLRDP target communes prior to commune subproject planning. The training program will ensure the participation of female leaders and leaders from the Cham and other ethnic minority communities, as well other leaders and representatives of the community organizations. The scope of the training will encompass the policies and procedures set out in the LARF for land acquisition, compensation and resettlement particularly as it relates to the roles and responsibilities of local officials. In addition, the training will be designed to build awareness and leadership skills to address the issues and needs of vulnerable APs. The TSLRDP will also undertake awareness raising and sensitization training regarding vulnerable groups for relevant staff from the EA, the Inter-Ministerial Resettlement Committee (IRC), line agencies at province level, the Commune Land Acquisition Committees (CLACs) and the independent monitoring organization (IMO).

Appendix 14 Page 27

be consolidated into one Provincial LARP if necessary, and submitted to the EA, IRC to be submitted to ADB for review and approval.

(iv) Guide, support and oversee all activities related to public disclosure of information, consultations with APs and other stakeholders and grievance redress for all subprojects with voluntary land contribution or involuntary land acquisition.

(v) As necessary, coordinate, guide and support district and commune authorities, NGOs, community organizations and other stakeholders to address requirements for relocation of APs and/or income restoration strategies.

(vi) Guide, support and oversee that appropriate measures are included as required for subprojects that involve voluntary and involuntary land acquisition, to address the needs and preferences of women and female-headed households, poor households and other vulnerable APs.

(vii) Conduct quarterly monitoring and submit it to PRC.

27. Commune: In each of the 30 target communes included in the TSLRDP, an ad-hoc Commune Land Acquisition Committee will be established, chaired by the Commune Chief (or designated representative). The membership of the CLAC will include district, commune and village representatives; representatives of APs for subprojects; and, a resettlement focal point from each IA. In order to address issues of vulnerable APs adequately, the membership of the CLAC will include female and, as relevant, ethnic minority representatives15.

28. The roles and responsibilities of the CLAC, under guidance of the IRC, include:

(i) For Commune Livelihoods Funds (CLF), conduct field assessments for initial screening of subprojects to confirm that there would not be any involuntary resettlement, and collaborate with provincial resettlement focal point on finalization of CLF subproject proposals.

(ii) Organize all activities for public disclosure of information and consultations with APs associated with the initial subproject screening, voluntary land acquisition and preparation of LARPs for involuntary land acquisition.

(iii) Receive, hear and resolve the complaints and grievances of APs, preferably through a process of conciliation.

(iv) Coordinate with and assist resettlement focal point of each IA to prepare LARPs for subprojects involving involuntary resettlement and Voluntary contribution report.

(v) Coordinate with and assist PRDC to implement LARPs including, among other activities, payment of compensation and other entitlements to APs; as required, identification of replacement land and implementation of income restoration measures; and, clearance of acquired land in coordination with schedules for civil works.

(vi) Cooperate when provincial resettlement focal points and IMO to conduct monitoring and evaluation.

15 For example: (i) female and/or Cham Commune Councilors; (ii) designated Gender Focal Points (GFP) at the commune and district levels; (iii) female and Cham members of Village Development Committees (VDC); and, (iv) AP representatives that are members of poor households, women, including heads and/or members of AP households and, as relevant, representatives from Cham households or other ethnic minority households.

Appendix 14 Page 28

Figure 5: Institutional Arrangement for Commune LARP

(Improvement of agricultural water management infrastructure)

Commune Land Acquisition and Provincial Resettlement Resettlement Plan Subcommittee (PRS) Required recruit professional Line Agencies Resettlement focal point at appraiser for conduct (PDRAM/PDRD) at PDRAM/PDRD contract out preparation replacement cost survey provincial level will of draft Commune LARP including: (i) determine subproject detailed measurement survey; and (ii) categorization using socioeconomic survey. checklist. PRS recruit an independent monitoring organization (IMO) Consultants organizes public No Commune consultation to present the draft and Land Acquisition incorporate concerns Line agency supervises and Resettlement consultants Plan not required Line agency submits final draft Commune LARP to Provincial Resettlement Subcommittee (PRS). Line Community involvement No resettlement plan agency can consolidate a number of processes provide inputs will be prepared. Commune LARPs into a Provincial LARP to draft Commune LARP However, subprojects’ information including land donation will be PRS reviews and approves included in the Commune/Provincial LARP and forward Commune LARP to MOWRAM Communes receive, hear and resolve the complaints and grievances of APs MOWRAM reviews and submit Commune/Provincial LARP to IRC and ADB for approval

Commune/Provincial LARP be ADB uploads Commune/Provincial disclosed in the Commune office. LARP on the website.

PRS (Department of Economy and Line agencies implement Line agency/ IMO oversee Finance) provide payment for land rehabilitation/ business packages the payment of acquisition, compensation and allowances compensation

Line agencies prepare monitoring report IMO carry out monitoring with APs and submit to PRS and MOWRAM for and reports semi-annually to PRS, inclusion in the quarterly progress report MOWRAM, and ADB Community involvement processes provide inputs during the process of monitoring and evaluation

MOWRAM carry out evaluation and IMO carry out evaluation in submit the report to IRC and ADB. consultation with APs and report to MOWRAM, IRC and ADB

Appendix 14 Page 29

VI. CONSULTATION, DISCLOSURE AND GRIEVANCE REDRESS

A. Consultation

29. Throughout the process of preparation and implementation of TSLRDP subprojects that require voluntary or involuntary land acquisition, the PDWRAM, PDRD in collaboration with CLAC and other district, commune and village officials will ensure full disclosure of information to and consultation with APs, and establish procedures for grievance redress.

1. Preparation of Land Acquisition and Resettlement Plans

30. During preparation of the draft LARP for subprojects involving involuntary land acquisition, the PDWRAM, PDRD with assistance from CLACs and other district, commune and village officials will undertake the following activities to disseminate information and consult APs: (i) in the case of subprojects with significant resettlement impacts, organize consultations with severely affected and vulnerable APs; and in the case of all subprojects, (ii) prepare and distribute a public information brochure; and, (iii) organize a public meeting.

a. Public Information Brochure

31. To disseminate information, IRC and the PDWRAM, PDRD in collaboration with CLACs will prepare and distribute a public information brochure (PIB) to all APs. The PIB will summarize the following information contained in the LARP: (i) subproject description, (ii) subproject impacts including land acquisition requirements, (iii) rights and entitlements of APs, (iv) compensation rates and allowances for different types of losses, (v) grievance redress procedures, (vi) organization roles and responsibilities (vii) implementation schedules and (viii) conditions for voluntary land donation. In the case of a Commune LARP where involuntary land acquisition involves significant resettlement impacts, the PIB will also describe the types of relocation and rehabilitation strategies and allowances. The PIB will also clearly indicate where and how APs can obtain additional information.

b. Draft Commune LARP

32. Prior to submitting the draft Commune LARP for approval, the CLACs with assistance from PAU will organize a series of public meetings covering the communes where subprojects are proposed. The meetings will be open to all APs and other stakeholders in the subproject area(s). APs will be notified about the meeting at least two (2) weeks in advance and told that the draft LARP is available for consultation in village and/or commune offices, or other easily accessible location(s).

33. The purpose of the public meeting is to provide information on (i) the objectives and beneficiaries of the proposed subprojects; (ii) the scope and requirements for involuntary land acquisition; (iii) rights and entitlements of APs; (iv) compensation rates and allowances for different types of losses; (v) procedures and schedules for implementation of the LARP; and, (vi) other relevant information about the development and implementation of the subproject. The draft Commune LARP and copies of the PIB will be available at the meeting for consultation. The meeting will provide opportunities and encourage all participants to ask questions, express preferences and concerns and raise other issues. A report of the meeting and the issues raised will be included in the final Commune LARP prepared by the PDWRAM, PDRD.

2. Implementation of Voluntary Contribution and Involuntary Land Acquisition

34. At various points during the subproject implementation, the CLAC will notify APs about different aspects of the land acquisition program. For APs affected by involuntary land acquisition, a letter of notification will be sent to each AP with the time, location and procedures for payment of compensation and allowances. The APs will also be informed in advance about Appendix 14 Page 30 the documents (letter of authority, identity card, etc.) that they will need to bring with them for compensation payment purposes.

35. For all subprojects whether land acquisition is voluntary or involuntary, the CLAC will inform APs about the schedules for clearance from acquired land. The CLAC will also keep the general public as well as APs fully informed about the schedule of civil works. Public announcements will be made during village meetings, on the radio and through other media.

B. Public Disclosure

36. The TSLRDP will ensure the public disclosure of Commune/Provincial LARP, which include such information as measurement of losses, detailed asset valuations, entitlements and special provisions, grievance procedures, timing of payments and displacement schedule. Disclosure will be in the form of the original document or in the form of a resettlement information brochure, a summary plan or a complete plan will be provided to APs in a form and language that they can understand in commune offices in subproject communes and/or in other accessible locations.

37. The provincial LARP and/or any Commune LARP will, once approved, be posted on the ADB resettlement website.

C. Grievance Redress

38. APs are entitled to lodge complaints regarding any aspect of the LARF or procedures for voluntary and involuntary land acquisition, for example: the procedures and results of the DMS; compensation entitlements, rates and payment modalities; or, strategies and procedures for resettlement and rehabilitation assistance programs. A well-defined grievance redress and resolution mechanism will be established to address AP grievances and complaints in a timely and satisfactory manner. The objective is to resolve complaints as quickly as possible and at the local level through a process of conciliation; and, if that is not possible, to provide clear and transparent procedures for appeal. All APs will be made fully aware of their rights, and the detailed grievance redress procedures will be publicized through an effective public information campaign.

39. The grievance redress process includes four stages. There are three stages before complaints may be elevated to a court of law as a last resort.

(i) First stage: APs will present their complaints and grievances verbally or in writing to the CLAC. The CLAC will be obliged to provide immediate written confirmation of receiving the complaint. If after 15 days the aggrieved AP does not hear from the CLAC, or if the AP is not satisfied with the decision taken in the first stage, the complaint may be brought to the District Office. (ii) Second stage: The District Office has 15 days within which to resolve the complaint to the satisfaction of all concerned. If the complaint cannot be solved at this stage, the District Office will bring the case to the Provincial Grievance Redress Committee. (iii) Third stage: The Provincial Grievance Redress Committee meets with the aggrieved party and tries to resolve the situation. The Committee may ask for a review of the DMS by the external monitor (IMO). Within 30 days of the submission of the grievance, the Committee must make a written decision and submit copies to the MOWRAM, PDWRAM, PDRD, IMO, PRS/IRC and the AP. (iv) Final stage: If the aggrieved AP does not hear from the Provincial Grievance Redress Committee or is not satisfied, he/she will bring the case to Provincial Court. This is the final stage for adjudicating complaints. Within 30 days of the submission of the grievance, the Court must make a written decision and submit copies to the MOWRAM, PDWRAM, PDRD, IMO, PRS/IRC and the AP. If any Appendix 14 Page 31

party is still unsatisfied with the Provincial Court judgment, he/she can bring the case to a higher-level court. 40. The Implementing Agency will shoulder all administrative and legal fees that will be incurred in the resolution of grievances and complaints if APs win their case. Other costs incurred by legitimate complaints will also be refunded by the Project if APs win their case.

41. It is recognized that, in many cases, APs do not have the writing skills or being able to express their grievances verbally, however, APs are encouraged to seek assistance from the IMO, the nominated local NGOs or other family members, village heads or community chiefs to have their grievances recorded in writing and to have access to the DMS or other documentation, and to any survey or valuation of assets, to ensure that where disputes do occur all the details have been recorded accurately enabling all parties to be treated fairly.

42. In the case of involuntary land acquisition, if efforts to resolve disputes at the village and Project level remain unresolved or unsatisfactory, APs have the right to directly discuss their concerns or problems with the ADB Operations Department, i.e., Infrastructure Division, Southeast Asia Department or SEID, through the ADB Cambodia Resident Mission in Phnom Penh. If APs are still not satisfied with the responses of SEID, they can directly contact the ADB Office of the Special Project Facilitator (OSPF) as outlined in the attached Information Guide to the Consultation Phase of the ADB Accountability Mechanism (Appendix 3). Appendix 14 Page 32

VI. MONITORING AND EVALUATION

43. The Executing Agency (EA) under the guidance from IRC, in collaboration with PRS, PDWRAM, PDRD and other stakeholders will ensure that procedures and methods are established and carried out to conduct internal and external monitoring of voluntary and involuntary land acquisition and resettlement required for all TSLRDP subprojects.

A. Internal Monitoring

44. The purposes of internal monitoring are to assess (i) compliance with the LARF and agreed policies and procedures for the TSLRDP; (ii) the availability of resources and efficient, effective use of these resources to implement land acquisition and resettlement activities; and, (iii) identification of problems, if any, and remedial actions.

45. The EA will develop internal monitoring indicators, procedures and reporting requirements for all subprojects that are require involuntary land acquisition. Internal monitoring indicators will include: (i) payment of compensation to APs in accordance with the LARF and TSLRDP policies; (ii) coordination and completion of land acquisition, compensation and, as required, resettlement activities and commencement of civil works; (iii) adherence to public information dissemination and consultation procedures, and report on activities; and, (iv) adherence to grievance redress procedures, and report of activities.

46. In each province, the resettlement focal point will prepare quarterly monitoring report. The PDRD will consolidate provincial monthly reports to prepare a TSLRDP quarterly monitoring report to be submitted to the Executing Agency (EA), the IRC and ADB. The EA in collaboration with IRC will take appropriate steps to redress any problems that are identified, and confirm the resolution of issues to the ADB.

B. External Monitoring

47. The IRC will recruit an independent monitoring organization (IMO) to conduct external monitoring and evaluation of voluntary land donation, involuntary land acquisition and resettlement for the TSLRDP, focusing on the social impacts of the Project and whether APs are able to restore, and preferably improve, their pre-project living standards, incomes and productive capacity. The IMO will be a qualified NGO or independent consultant with recognized experience in Cambodia; the terms of reference (TOR) for the IMO and the IMO qualifications must be acceptable to both IRC and the ADB.

48. The IMO will be appointed prior to the beginning of any TSLRDP subprojects that require land acquisition, and will continue until resettlement objectives are met. The IA and PRS will ensure full cooperation of the CLACs and other stakeholders with the IMO. The IMO will participate in and monitor the DMS and other fieldwork, all consultations, payment of compensation and, as required, relocation and income restoration activities. All data collected during DMS and socio-economic surveys will be made available to the IMO, as will all signed voluntary contribution forms; the IMO will also conduct its own periodic surveys. Monitoring reports will be uploaded on ADB’s website.

(i) The key indicators for external monitoring and evaluation include chapters on: a) compliance with TSLRDP policies and procedures; b) the level of satisfaction of APs with implementation of LARPs including compensation and assistance levels and grievance procedures; c) the level of income and livelihood restoration of APs; d) how well the IA, provincial line agencies, CLACs and other stakeholders carry out their responsibilities and respect schedules; e) economic/income rehabilitation strategy (that lists all measures, and assessment of the extent that explanation of the measures to APs and eligibility criteria); and, f) relocation strategy (the options that were given if a household had to relocate). Appendix 14 Page 33

(ii) The IMO will consistently and regularly monitor all activities related to resettlement planning, consultations, payment of compensation and, as required, relocation and income restoration activities for all subprojects involving involuntary land acquisition.

(iii) The IMO will conduct a post-resettlement evaluation twelve (12) months after completion of all land acquisition and, as required, compensation and relocation activities, for all subprojects involving voluntary and involuntary land acquisition. The post-resettlement evaluation will assess the degree to which APs have been successful in restoring, maintaining or improving their living standards, incomes and productive capacity.

49. The IMO will prepare monitoring reports every six (6) months up through the period when APs affected by involuntary land acquisition receive compensation and remove from the acquired land; the IMO reports will include, as required, recommendations for changes and mitigation measures. The IMO will also prepare a post-resettlement evaluation report for APs affected by voluntary and involuntary land acquisition. The IMO will prepare resettlement monitoring reports in consultation with affected persons and the report will be available on ADB as well as Project’s website. Appendix 14 Page 34

VII. RESETTLEMENT COSTS AND BUDGET

50. The costs of involuntary land acquisition for TSLRDP subprojects will be calculated based on (i) the losses inventoried during the detailed measurement survey (DMS); (ii) the entitlements set out in the entitlement matrix of the LARF; and, (iii) the findings of the replacement cost survey to establish current market prices. A contingency factor of 20% will be included in these cost estimates, to be used as required during implementation of the LARP.

51. All costs for subproject resettlement programs under TSSLP including compensation and allowances, operation and administration costs, surveys, monitoring and reporting with exception of land acquisition will be financed from grant funds from ADB. If ADB grant funds are utilized, the RPs will identify key activities for which funds will be used, any disbursal milestones, and auditing requirements that will facilitate appropriate and timely delivery.

52. The Ministry of Economy and Finance (MEF) will provide the budget directly to the IRC and the IRC will disburse the fund to PDEF for payments of land acquisition, compensation and allowances to APs, and contracting the IMO.

53. The PRS in collaboration with the IA will ensure during the preparation of subprojects that all other costs of resettlement except for acquisition of land (staffing, administration costs and, as required, relocation and income restoration costs) are included in the overall cost estimates for the subproject, including appropriate contingencies. Appendix 14 Page 35

APPENDIX 1: VOLUNTARY CONTRIBUTION CONSENT FORM

KINGDOM OF CAMBODIA

[INSERT NAME] Province [INSERT NAME] District [INSERT NAME] Village CERTIFICATE OF LAND TRANSFER

I, [INSERT NAME, AGE, NATIONALITY, OCCUPATION], with residence located in [INSERT NAME] village, [INSERT NAME] district, [INSERT NAME] province,

Certify that I have been previously informed by local authority of my right to entitle compensation for any loss of property (house, land and trees) that might be caused by the construction of water supply system or urban environmental (development) improvements in [INSERT NAME] district ([INSERT NAME]). I confirm that I voluntarily accept the land of [INSERT AMOUNT LOSS] square meters located in [INSERT NAME] village ([INSERT NAME] district) to be provided by the local authority for compensation. I also confirm that I do not request any compensation of loss of [INSERT OTHER LOSSES SUCH AS TREES STRUCTURES] and would request the local authority to consider this as my contribution to the Project.

Type of Loss Number of Area(sqm) Trees Unit Rates Total Comment Land

Total

Therefore, I prepare and sign this certificate for the proof of my decision.

[INSERT NAME] district [INSERT DATE] The owner of the land [INSERT NAME AND SIGN] Witnesses: 1. [INSERT NAME] 2. [INSERT NAME] 3. [INSERT NAME]

Certified by the Chief of the Village [INSERT NAME AND SIGN]

The Chief of [INSERT NAME] district [INSERT NAME AND SIGN] Appendix 14 Page 36

APPENDIX 2: REPLACEMENT COST SURVEY TOR

I. Objectives 1. The team shall verify and establish compensation rates for land, crops, trees, structures, and other non-land based income (e.g. fishponds) to ensure that APs are compensated at replacement cost at current market value at the time of compensation. 2. The team members will be composed of: (i) District Resettlement Committee. (ii) Representative from the Project Office (Resettlement Staff). (iii) Representative from the Project Supervision Consultant (Resettlement (iv) Specialist). (v) Representative from the Affected Persons (APs). (vi) Representative from the affected village (not AP). II. Approach 3. The establishment of replacement costs will be carried out based on information collected from both Desk research and Direct interviews with people in affected area, both those persons who are affected and those not affected. 4. Desk research will focus on relevant publications, materials of Government authorities, both at central and local levels. However, these materials will play the supporting role only. As the work is aimed at obtaining reasonable replacement costs for different types of affected assets, market evidence will be the factor on which to most strongly base the formulation of these costs. Direct interviews with people in the affected area, both those, whose assets are affected by the Project and those, whose assets are not, will produce reliable data for establishment. 5. Methodologies to verify the replacement costs for each type of affected assets are described in the following parts. III. Methodology A. Data Collection 1. Structures 6. The objective of this establishment is to determine whether the provincial prices enable APs to rebuild their affected structures. The establishment of compensation for affected structures is based on the principle of replacement cost. The information to base the establishment will mainly be collected from direct interviews with parties involved, including owners of structures (both those whose structures are affected by the Project and those whose structures are not affected), construction contractors specialized in residential building. 7. The interviews will be conducted based on a pre-developed interview guide, which will cover the following issues: Interviews with owners of structures: − Construction materials: + Main materials they used for their current structures + Type of shops where they bought construction materials + Distance of transport + Origin of the materials (local or overseas) + Costs of various materials − Labor + Who built the structures: Owners themselves or Contractors, if owners built themselves, they use their own labor or hire other people Interviews with construction contractors: − Main materials which are most used by the local people to build their structures − Costs of those main materials Appendix 14 Page 37

− Cost of labor − Average construction cost (cost per sq m floor) for different types of houses according to different categories − Validation of provincial construction prices (cost per sq m floor for each category) The structures will include but not limited to the following: − Houses − Kitchens (in case they are separated from houses) − Toilets, bathrooms (in case they are separated from houses) − Breeding facilities − Wells − Any other structure associated to the house SAMPLE SIZE: − Owners of structures affected by the Project : 5 households − Owners of structures not affected by the Project : 5 households − Construction contractors + State-owned construction companies, (if available) : 2 companies + Private construction companies/groups : 5 companies − Shops retailing construction materials : 5 shop owners B. Land 8. The objective of this establishment is to determine whether the provincial prices are sufficient or not to purchase the same quality and quantity of land. The establishment of compensation for the loss of land is based on its market value. The best way to obtain this market value is to gather data of some sales of land, which have just taken place. However, the transfer of land use right does not always go along with such sales, which makes details of such sales not recorded. The consultant will make their best effort to collect the sales evidence to support the verification of provincial prices. In addition, information to base the establishment will be collected from direct interviews with owners of land in Project affected area, including those, whose land is resumed and those whose land is not. The interviews will cover the following issues: − The recent land use rights transfer in the area − The price, at which owners (affected and not affected persons) are willing to sell their land Price of land will be differentiated based on the use of land, including: − Residential land − Garden land − Agricultural land − Forest land − Land with water surface for fishery cultivation The price of agricultural, forest land, and land with water surface for fishery cultivation will also be differentiated by quality of land and its capacity to produce income for the households. SAMPLE SIZE: − Owners of affected land : 5 households − Owners of not-affected land (adjacent to affected land or within the village) : 5 households C. Crops and Trees 9. The objective of this establishment is to determine whether the provincial prices paid to APs are equivalent, lower or higher than the average market price. The basis of the establishment is to determine the average market price for each type of crops and trees. The information to base the establishment will be collected from: − Secondary sources + Publications of National Statistical Office Appendix 14 Page 38

+ Publications of Price Committee − Primary source: − interviews with people who own the same crops and trees in the locality. The interviews will cover: + Price, at which owners are willing to sell each type of their crops and trees. The prices for perennial trees will be differentiated by the age of the trees. - Market, team will investigate the sales price of outputs of different types of crops and trees in the market. SAMPLE SIZE: − Owners of crops and trees affected by the Project : 5 households − Owners of crops and trees not affected by the Project : 5 households − Seedling suppliers : 5 persons − Market vendors : 5 persons D. Other community-based development projects and other facilities (electric posts, water supply system, water pipes) 10. For those facilities, the establishment will be based on the replacement costs. Similarly in the case of structure, cost to construct those facilities will be determined to see whether the compensation is enough to reconstruct them. Information to base the evaluation will be conducted with officials in charge of constructing such facilities to determine material cost and labor cost.

SAMPLE OUTLINE OF REPORT

I. OVERVIEW OF THE PROJECT

II. METHODOLOGY A. Information collection 1. Study area 2. Sample size and Sample selection 3. Information to be collected B Information processing

III. RESULTS A. Area 1 (Village, District, Province) 1. Replacement costs from various groups 2. Comparison of rates 3. Recommendation B. Area 2 (Village, District, Province) 1. Replacement costs from various groups 2. Comparison of rates 3. Recommendation C. Area 3 (Village, District, Province) 1. Replacement costs from various groups 2. Comparison of rates 3. Recommendation

IV. CONCLUSION

V. ANNEXES A. Completed questionnaires B. Documents gathered from various groups

Appendix 14 Page 39

APPENDIX 3: SAMPLE FORMAT FOR COMMUNE/PROVINCIAL RESETTLEMENT AND LAND ACQUISITION PLAN

CONTENTS I. introduction ...... 40 A. Subproject Description...... 40 B. Land Acquisition and Resettlement Category ...... 40 C. Subproject Resettlement Plan...... 40 II. scope of land acquisition and resettlement ...... 41 A. Measures to Minimize Land Acquisition...... 41 B. Detailed Measurement Survey (DMS) ...... 41 C. Affected Assets and APs ...... 41 III. socio-economic profiles...... 43 A. Socio-Economic Profile of Subproject Area ...... 43 B. Socio-Economic Profile of Affected People (APs)...... 46 IV. Policy Framework and Entitlements...... 48 A. Policy Framework ...... 48 B. Eligibility for Compensation and Other Assistance...... 49 C. Entitlement Matrix ...... 49 V. information disclosure, consultation and grievance redress...... 49 A. Subproject Stakeholders...... 49 B. Information Disclosure and Consultations...... 50 C. Grievance Redress ...... 50 VI. compensation and resettlement strategies...... 51 A. Procedures for Payment of Compensation and Allowances ...... 51 B. Income Restoration Strategies...... 51 C. Relocation Strategies...... 51 D. Vulnerable APs ...... 52 VII. resettlement costs...... 52 A. Source of Resettlement Funds...... 52 B. Compensation and Allowance Rates ...... 52 C. Resettlement Costs...... 52 VIII. institutional arrangements ...... 53 IX. monitoring ...... 54 A. Internal Monitoring for the Subproject ...... 54 B. External Monitoring of APs ...... 54 X. implementation schedule ...... 55 APPENDIX 1: DMS SURVEY FORM...... 56 APPENDIX 2: LIST OF APs AND AFFECTED ASSETS...... 361 Appendix 14 Page 40

I. INTRODUCTION

1. The Tonle Sap Lowlands Rural Development Project (TSLRDP) will target a total of 12 districts and 30 communes in the six provinces of Banteay Meanchey, Battambang, Pursat, Kampong Chhnang, Kampong Thom and Siem Reap. The expected outcome of the Project will be that rural communities use the improved coverage and quality of rural infrastructure; and new opportunities resulting from the application of new skills in the pursuit of on-farm and off-farm enterprises to improve their livelihoods.

A. Subproject Description

2. [short description of subproject]

B. Land Acquisition and Resettlement Category

3. A detailed measurement survey (DMS) was conducted in the subproject area to collect data on the number of affected people (APs) and the types and amounts of land, structures and other assets that are affected by land acquisition. A more detailed presentation of the DMS results is provided in Section II, below. In summary:

(i) The number of APs that will lose small amounts of land, structures and/or crops and trees: [provide data]

(ii) The number of APs that will lose 10% or more of their productive land, income or other productive assets: [provide data]

(iii) The number of APs that will be required to relocate and rebuild houses and/or shops on new land: [provide data]

4. The land acquisition and resettlement impacts of the subproject are [describe: significant or not significant]. Therefore the subproject is classified as Category [describe: A or B] and a [describe: full or short] resettlement plan has been prepared.

C. Subproject Resettlement Plan

5. The resettlement plan (RP) has been prepared in accordance with the ADB and Government of Cambodia policies and procedures. It includes the following sections:

(i) Section II – Scope of Land Acquisition and Resettlement: Summary of DMS findings on the numbers of APs and the type and extent of losses due to land acquisition.

(ii) Section III – Socio-Economic Profiles: Summary of DMS findings on the socio-economic conditions in the subproject area and among APs.

(iii) Section IV – Policy Framework and Entitlement: Presentation of the legal and policy framework for land acquisition and resettlement under the IRDPCP; eligibility of APs for compensation and assistance; and, entitlement matrix for compensation and assistance.

(iv) Section V – Information Disclosure, Consultations and Grievance Redress: Policies, procedures and subproject activities regarding disclosure of information to and consultation with APs, and grievance redress procedures.

(v) Section VI – Compensation and Rehabilitation Strategies: Procedures for payment of compensation and allowances; and [as required], strategies to assist APs to restore living conditions and incomes.

(vi) Section VII – Resettlement Costs: Procedures for financing and disbursement of funds for land acquisition and resettlement; summary of the costs for compensation and allowances, and administration of resettlement program. Appendix 14 Page 41

(vii) Section VIII – Institutional Arrangements: Description of roles and responsibilities of provincial and district authorities for land acquisition and resettlement.

(viii) Section IX – Monitoring: Procedures for internal and external monitoring of resettlement activities.

(ix) Section X – Implementation: Schedules for activities to prepare and implement the RP and conduct external monitoring activities.

II. SCOPE OF LAND ACQUISITION AND RESETTLEMENT

A. Measures to Minimize Land Acquisition

6. The measures taken to minimize land acquisition required for the subproject include [describe]

B. Detailed Measurement Survey (DMS)

7. The detailed measurement survey (DMS) for the subproject was conducted following completion of detailed engineering design and demarcation on the ground of the land to be acquired. The following summarizes the DMS and related procedures:

(i) The dates of the DMS were [describe]

(ii) The notification of affected households about the dates and procedures of the DMS included [describe]

(iii) The DMS team included [describe]

(iv) The number of households surveyed includes [describe]

(v) The official cut-off date for eligibility for compensation and other assistance has been established as the final day of the DMS [provide date]

8. The survey form used for the DMS is included in Appendix 1 of the RP; the list of APs and their affected assets is included in Appendix 2.

C. Affected Assets and APs

1. Land and Structures

9. The following table summarizes the results of the DMS concerning affected land and structures, including assets owned by households and commune assets. In the subproject area:

(i) Important characteristics for land assets [describe]

(ii) Important characteristics for structures [describe]

(iii) Other important characteristics [describe]

Household assets Commune assets Subproject A Subproject B Subproject A Subproject B No Type of assets [name] [name] [name] [name] No. Area No. Area No. Area No. Area APs/HH (m2) APs/HH (m2) APs/HH (m2) APs/HH (m2) Appendix 14 Page 42

Household assets Commune assets Subproject A Subproject B Subproject A Subproject B No Type of assets [name] [name] [name] [name] No. Area No. Area No. Area No. Area APs/HH (m2) APs/HH (m2) APs/HH (m2) APs/HH (m2) I Land 1 Residential land 2 Garden land 3 Agricultural land 4 Aquaculture land 5 Forestry land II Structures 1 Class 1 2 Class 2 3 Class 3 4 Class 4 5 Temporary house Secondary 6 structures

10. The following table summarizes the total land acquisition for the subproject, including permanent land acquisition and land temporarily acquired during civil works.

2 Subproject Land Acquisition Area Acquired (m ) Requirements Permanent Temporary Voluntary Total Residential land Garden land Subproject Agricultural land A Aquaculture land Forestry land Subtotal Residential land Garden land Subproject Agricultural land B Aquaculture land Forestry land Subtotal Total

Appendix 14 Page 43

2. Severely Affected APs

[this section included as required]

11. Severely affected APs are defined as those that (i) lose 10% or more of their productive land, income or other productive assets and/or (ii) must relocate and rebuild their house and/or shop on new land. They are entitled additional assistance to restore incomes and/or relocate.

12. As summarized in the following table, in the subproject area:

(i) APs severely affected by loss of productive assets include [describe]

(ii) APs that must relocate include [describe]

Subproject A SubprojectB OR OR Severely Affected APs Village A Village B [name] [name] No. APs/HH No. APs/HH Loss of productive assets Relocation of house/ shop

3. Crops and Trees

13. APs with affected crops and trees will be compensated at replacement cost if they are unable to harvest prior to removing from affected land. The costs of compensation have been included in the calculation of resettlement costs (Section VII).

III. SOCIO-ECONOMIC PROFILES

14. Socio-economic profiles have been prepared for the subproject area and for affected people (APs), including data on key indicators related to land acquisition and resettlement impacts. The sources of data on subproject conditions are [to be completed]; the socio-economic conditions of APs were surveyed during the detailed measurement survey (DMS) SES has to cover 20% of severely APs and 10% of all APs.

A. Socio-Economic Profile of Subproject Area

1. Land Resources

15. The distribution of the types of land resources is summarized in the following table in the communes and district affected by the subproject. In the subproject area:

(i) The dominant land use is [describe]

(ii) Other important characteristics of local land use are [describe]

Subproject A Subproject B OR OR Commune Village B Village A Land Resources [name] [name] Subproject Area [name] (ha) % % Area (ha) Area (ha) Total Total 1. Agriculture land - Annual crops - Perennial crops & trees Appendix 14 Page 44

Subproject A Subproject B OR OR Commune Village B Village A Land Resources [name] [name] Subproject Area [name] (ha) % % Area (ha) Area (ha) Total Total 2. Aquaculture land 3. Forest land 4. Residential land 5. Special land 6. Vacant land 7. Other Totals

2. Population and Employment

16. The population and employment characteristics in the subproject area are summarized in the following table. In the subproject area:

(i) The distribution and density of local population are [describe]

(ii) Ethnic groups in the subproject area include [describe]

(iii) The work force in the subproject area is employed [describe]

Commune (or Village A) Commune (or Village B) Population and Employment [name] [name] Subproject Area % % Total Total Total Total 1. Population (No. people) - Female - Male - Total 2. Population density (p/km2) 3. Ethnic group (No. people) - Vietnamese - Other - Other 4. Employment (No. people) - Agriculture - Aquaculture - Industries - Trading and services - Others

Appendix 14 Page 45

3. Education Achievement

17. The levels of educational achievement of people living in the subproject area are summarized in the following table. In the subproject area:

(i) The proportion of the population with no education or only some primary education is [describe]

(ii) The education levels achieved by the majority of the population are [describe]

(iii) Compared to men, the level of educational achievement of women is [describe]

(iv) Other important characteristics include [describe]

Commune (or Village A) Commune (or Village B) Educational Achievement, [name] [name] Subproject Area Total Men Women Total Men Women % % % % % % 1. No schooling 2. Primary, not completed 3. Primary, completed 4. Secondary 5. Other

18. The enrolment rates of school-age children living in the subproject area are described in the following table. In the subproject area:

(i) Primary enrolment rates are [describe]

(ii) Secondary and high school enrolment rates are [describe]

(iii) Compared with boys, enrolment rates of girls are [describe]

Enrolment Rates, Commune (or Village A) Commune (or Village B) [name] [name] School-Age Children Subproject Area Total Boys Girls Total Boys Girls % % % % % % 1. Primary 2. Secondary 3. High school

4. Poverty Levels

19. The national poverty line is established by XX for rural and urban areas. In the period 2001-2005, the rural poverty line was Riel YYYYY/person/month; in urban areas, it was Riel ZZZZ/person/month. For the period 2005-2010, the rural poverty line is Riel XXX/person/month; the urban poverty line is Riel YYYY/person/month.

20. The poverty levels in the subproject area in recent years are summarized in the following table. In the subproject area:

(i) In the communes and district, the levels of poverty are [describe]

(ii) Changes in poverty levels in recent years include [describe] Appendix 14 Page 46

Poverty District Commune Village A Levels [name] [name] [name] Subproject % popn. % popn. % popn. Area 2004 2005 2006 2007

B. Socio-Economic Profile of Affected People (APs)

1. AP Household Characteristics

21. The characteristics of households affected by land acquisition are summarized in the following table. In describing APs:

(i) The total number of AP households and people living in AP households is [describe]

(ii) The total number of ethnic minority (non-Kinh) AP households and people living in these households is [describe]

(iii) The proportions of men and women in all AP households and ethnic minority AP households are [describe]

(iv) The average household size and other important characteristics of household size include [describe]

Subproject (or Subproject (or AP Household Total APs Village) A Village B) Characteristics [name] [name] All APs (No. HH) All APs (No. persons) • Female • Male Ethnic minority APs (No. HH) Ethnic minority APs (No. persons) • Female • Male HH size (No. person) • Average size: all APs • Average size: ethnic minority APs • 1-4 persons • 5-8 persons • Over 8 persons

2. Vulnerable APs

[text and table to be adapted to subproject conditions] Appendix 14 Page 47

22. Vulnerable APs are households that may be at greater risk due to the impacts of land acquisition and resettlement; as a consequence, they are entitled to additional assistance to help them to restore living and socio-economic conditions. The following table summarizes the numbers of vulnerable AP households. In the subproject area: (i) poor households; (ii) ethnic minority groups; (iii) female-headed households; (iv) landless households; (v) disabled-headed household; and (vi) elderly people without support structures.

(i) Poor households;

(ii) Ethnic minority households include [describe]

(iii) Female-headed households include [describe]

(iv) Landless households include [describe]

(v) Households headed by disabled persons, elderly people without support include [describe]

Vulnerable APs Commune A Commune B Total APs (No. HH) [name] [name] Ethnic minority Female-headed Poor “Policy” Total

3. Education Levels of AP Household Heads

23. The levels of educational achievement and illiteracy among AP household heads are summarized in the following table. In the subproject area:

(i) The dominant characteristics of educational achievement are [describe]

(ii) The level of illiteracy among AP household heads is [describe]

Education Levels Commune A Commune B Total APs and Illiteracy, [name] [name] (No.) AP Household Heads (No.) (No. 1. Illiterate 2. Primary school 3. Secondary school 4. High school 5. Over high school Total

4. Sources of AP Household Income

24. The principal sources of AP household income are summarized in the following table. In the subproject area:

(i) The primary source of income of most AP households is [describe] Appendix 14 Page 48

(ii) Other important characteristics of household income sources among APs are [describe]

Commune A Commune B Main HH Income [name] [name] Total APs Sources No No. % total % total APs/HH APs/HH 1. Agriculture 2. Aquaculture 3. Business 4. Services 5. Handicraft 6. Wages/salary 7. Hired labour 8. Other Total

IV. POLICY FRAMEWORK AND ENTITLEMENTS

A. Policy Framework

25. The Land Acquisition and Resettlement Framework (LARF) for the TSLRDP derives from (i) the formal legal framework of the Royal Government of Cambodia (RGC), principally the 1993 Constitution, the 2001 Land Law and related sub-decrees and regulations; and, (ii) the ADB Policy on Involuntary Resettlement and Operations Manual F2 and other relevant ADB policies. The overall objective of the policy is to ensure that all people affected by the subproject are able to maintain and, preferably, improve their pre-subproject living standards and income-earning capacity through compensation for the loss of physical and non-physical assets and, as required, other assistance and rehabilitation measures.

26. In all instances where TSLRDP subprojects require land acquisition and resettlement, the provisions and principles adopted in the Land Acquisition and Resettlement Framework for the TSLRDP will supersede the provisions of relevant decrees currently in force in Cambodia wherever a gap exists between RGC laws and regulations and the policies of the ADB.

27. The policy sets out principles for land acquisition, compensation and resettlement16. The key principles include:

28. Land acquisition requirements will be minimized by identifying project designs and appropriate social, economic, operational, and engineering solutions that have the least impact on populations in the subproject area.

29. Preparation and implementation of the resettlement program will be carried out with the full participation of APs, including timely disclosure of information and consultation of APs. Effective mechanisms will be established for hearing and resolving grievances.

30. Compensation for lost land and other assets will be paid at rates equal to full replacement cost based on current market rates. All compensation will be fully paid to APs prior to the beginning of civil works.

31. Financial and other assistance will be provided for severely affected and vulnerable APs to help them to restore socio-economic conditions. Severely affected APs are those that

16 The TSLRDP Resettlement Policy Framework includes a full presentation of these principles. Appendix 14 Page 49

lose 10% or more of productive land, business income or other productive assets; and, those that must relocate to new residential or commercial land. Vulnerable APs include ethnic minorities, households headed by women and poor households.

32. Temporarily affected land and communal infrastructure will be restored to pre-project conditions.

33. The capacity of APs to restore living conditions will be carefully monitored and remedial steps taken as required.

B. Eligibility for Compensation and Other Assistance

34. Project-affected people (APs) are defined as those who, as a consequence of the subproject, stand to lose all or part of their physical and non-physical assets, including homes, homesteads, productive lands, commercial properties, tenancy, income-earning opportunities, social and cultural activities and relationships, and other losses that may be identified during resettlement planning.

35. The cut-off date for eligibility for compensation is the last day of the detailed measurement survey (DMS) for the subproject. Eligible APs are entitled to compensation for their lost assets, incomes, and businesses and, as required, provided with rehabilitation measures sufficient to assist them to improve or at least maintain their pre-project living standards, income earning capacity, and production levels.

36. People who move into the subproject area after the cut-off date are not entitled to compensation or any other form of resettlement assistance. They will be given sufficient advance notice, and requested to vacate premises and dismantle affected structures prior to project implementation. However, their dismantled structures will not be confiscated and they will not have to pay any fine or sanction.

C. Entitlement Matrix

37. The entitlement matrix below summarizes the main types of losses and the corresponding nature and scope of entitlement.

V. INFORMATION DISCLOSURE, CONSULTATION AND GRIEVANCE REDRESS

38. Disclosure of information and consultations occur during preparation and implementation of subprojects to ensure that APs and other stakeholders have timely information about land acquisition, compensation and resettlement, as well as opportunities to participate in and express their preferences and concerns regarding the resettlement program. The district Compensation Assistance and Resettlement Board17 (CARB) with assistance from commune, ward and/or hamlet authorities organizes meetings and consultation, distributes information and takes other steps to keep APs informed.

A. Subproject Stakeholders

39. The subproject APs are people living in the communes of [names of communes].

40. Other stakeholders related to land acquisition and resettlement for the subproject include: [describe]

17 Proposed to be formed under EXCOM at province level to oversee resettlement activities. Appendix 14 Page 50

B. Information Disclosure and Consultations

41. Two public meetings are held as part of the preparation of (i) the Feasibility Study (FS) and (ii) the Resettlement Plan (RP). The purpose of the meetings is to provide information to and consult with APs and other stakeholders:

(i) Feasibility Study: Information regarding the scope and objectives of the subproject based on preliminary design; the policies, principles and procedures for land acquisition, compensation and resettlement; and, preliminary estimates of land acquisition requirements and resettlement impacts.

(ii) Resettlement Plan: Information on the detailed design and land acquisition requirements of the subproject; the results of the DMS; proposed compensation rates and entitlements; and, procedures for compensation payment and implementation of other resettlement activities.

42. The public meetings are held prior to submitting the FS or RP for formal review and approval, to ensure that APs have an opportunity to be fully informed and express their views about the subproject and their needs, preferences and concerns. APs with special needs are consulted during preparation of the RP to determine appropriate rehabilitation measures.

43. In compliance with ADB requirements, the PMU assisted by the CARB publicly disclosures the final RP as approved by PPC, MOWRAM and ADB. The full RP, a summary RP or information booklets are made available in Khmer in a readily accessible location within the subproject area (e.g. Commune Office). The final RP is also disclosed on the ADB website.

44. APs are notified in advance about resettlement activities, including among others: (i) public meetings, (ii) carrying out the DMS, (iii) official lists of eligible APs and their entitlements, (iv) compensation rates and amounts, (v) payment of compensation and other entitlements and (vi) other matters such as the grievance redress mechanism. The form of notification includes, as appropriate, notices posted in commune offices or other easily accessible locations; letters, notices or small brochures delivered individually to APs; and, radio announcements.

C. Grievance Redress

45. The grievance redress mechanism adopted for the subproject is a four-stage process:

(i) Stage 1: Complaints from APs on any aspect of compensation, relocation or unaddressed losses are lodged verbally or in written form with the Commune Land Acquisition and Resettlement Committee. The complaint is discussed in an informal meeting with the AP and the CLAC. It is the responsibility of the CLAC to resolve the issue within 15 days from the date the complaint is received.

(ii) Stage 2: If no understanding or amicable solution can be reached or if no response is received from CLAC within 15 days of registering the complaint, the AP can appeal to the District People’s Committee (DPC) in the presence of the CARB. The AP must lodge the complaint within 30 days of registering the original complaint and must produce documents that support his/her claim. The DPC will provide a decision within 1 month of receiving the appeal.

(iii) Stage 3: If the AP is not satisfied with the decision of the DPC or in the absence of any response, the AP can appeal to the Provincial People’s Committee (PPC). The PPC together with the Provincial Resettlement Committee (PRC) will provide a decision on the appeal within 30 days from the day it is received by the PPC.

(iv) Stage 4: If the AP is still not satisfied with the decision of PPC on appeal, or in the absence of any response within the stipulated time, the AP as a last resort may submit his/her case to the District Court. Appendix 14 Page 51

VI. COMPENSATION AND RESETTLEMENT STRATEGIES

A. Procedures for Payment of Compensation and Allowances

46. The CARB is responsible for payment of compensation and allowances to APs. This will be done with assistance from commune and hamlet authorities. The procedures to be followed include:

(i) Following PPC approval of Compensation Plan, PMU transfers funds to district treasury; the CARB withdraws funds for payment of compensation and allowances.

(ii) The CARB and local authorities notify APs about the date, time and place as well as documentation required, for payment of compensation and allowances; compensation is paid in each commune. At least one week notice is given to APs; notification is made by posting an announcement at commune and hamlet offices

(iii) At the time of payment, the head of AP household signs a compensation document to acknowledge the amount and receipt of payment. Representatives of the PMU, CARB and commune witness the payment.

(iv) When compensation payments are complete, the CARB prepares a report and submits it to the PMU.

B. Income Restoration Strategies

[this section included and/or adapted as relevant]

47. For severely affected APs that lose 10% or more of productive land, income or other productive assets, the following assistance will be provided in addition to compensation for affected assets:

(i) Subsistence allowance: cash equal to 30kg of rice/household member/month for a transition period. For the subproject, the length of the transition period is [describe length of transition period and rationale]

(ii) Technical assistance to restore livelihoods and incomes, as decided in consultation with APs. For the subproject, this includes [describe types of technical assistance and rationale]

48. APs that lose business income during a transition period when their business is disrupted by rebuilding and/or relocation are entitled to cash to cover these losses. This is determined on a case-by-case basis, in consultation with eligible APs and in accordance with the IRDPCP policies. For the subproject, the business losses include [describe type, reason, length of disruption of businesses and number of APs]

49. [Add other relevant information about assistance for income restoration that is provided for the subproject.]

C. Relocation Strategies

[this section included and/or adapted as relevant]

50. Severely affected APs that must relocate and rebuild houses and/or shops on new land will be compensated for affected structures at replacement cost with no deduction for depreciation or the value of salvaged materials. In addition, they are eligible for the following allowances:

(i) Subsistence allowance: cash equal to 30kg of rice/household member/month for a transition period. For the subproject, the length of the transition period is [describe length of transition period and rationale] Appendix 14 Page 52

(ii) Moving allowance of Riel ZZZZ per household.

51. Tenants that relocate are also entitled to a moving allowance of Riel ZZZZ and other assistance as required to find new accommodation.

52. [Add other relevant information about assistance for relocation assistance that is provided for the subproject.]

D. Vulnerable APs

[this section included and/or adapted as relevant]

53. In order to assist them to restore their socio-economic conditions, vulnerable APs are entitled to an allowance equal to 30kg of rice/household member/month for a transition period of three (3) months. This allowance is in addition to any other compensation and allowances to which vulnerable APs are entitled.

54. [Add other relevant information about assistance for vulnerable APs that is provided for the subproject.]

VII. RESETTLEMENT COSTS

A. Source of Resettlement Funds

55. All land acquisition, compensation and resettlement costs for the subproject will be financed using provincial counterpart funds.

B. Compensation and Allowance Rates

56. In conjunction with the DMS, the PMU engaged a qualified valuation consultant to conduct a replacement cost survey (RCS) in the subproject area to establish current market prices for the types of land, structures, crops, trees and other assets that are affected by land acquisition. The results of the RCS have been compared with official PPC prices and, where necessary, the PPC prices have been adjusted so that compensation rates are equal to the replacement cost for affected assets.

57. The proposed compensation and allowance rates for the subproject are indicated as unit costs in the table summarizing resettlement costs (see next section).

C. Resettlement Costs

58. The following table summarizes the subproject resettlement costs including (i) compensation for land acquired permanently or temporarily, (ii) compensation for principal structures, secondary structures, crops and trees; (iii) allowances; and (iv) implementation and contingency costs.

Subproject No Unit Cost Total Cost Quantity Resettlement Costs AP/HHs (Riel) (Riel) I Land acquisition 1 Residential land 2 Garden land 3 Agricultural land 4 Aquaculture land 5 Forestry land 6 Other land 7 Temporary land acquisition Appendix 14 Page 53

Subproject No Unit Cost Total Cost Quantity Resettlement Costs AP/HHs (Riel) (Riel) 8 Voluntary land contribution II Structures 1 Grade 1 2 Grade 2 3 Grade 3 4 Grade 4A 5 Grade 4B 6 Grade 4C 7 Grade 4D 8 Grade 4E 9 Temporary A 10 Temporary B 11 Other Structures III Crops/trees IV Allowances 1 Transport 2 Living 3 Transition 4 Others (specify) V Sub-total (I-IV) VI Implementation cost Administrative costs Monitoring Income Restoration Program VII Contingencies VIII GRAND TOTAL

VIII. INSTITUTIONAL ARRANGEMENTS

59. (SAMPLE ONLY, needs to be specific) The Ministry of Water Resources and Meteorology is the Executing Agency (EA) and will assure overall coordination, planning, implementation and reporting for the TSLRDP. The EA will guide, support, endorse and monitor the work of the Provincial Agencies and Provincial Executive Committee (ExCom) in each TSLRDP province for all activities related to planning, implementation and monitoring of land acquisition and resettlement where required. The EA recruits an NGO or other qualified organization to act as an independent monitoring organization (IMO) for the subproject (see also, Section IX, B).

60. For the subproject, the district-level institutional arrangements include:

(i) Please write specific arrangement for the project in accordance with resettlement framework. Appendix 14 Page 54

IX. MONITORING

A. Internal Monitoring for the Subproject

61. The Executing Agency (EA), under the guidance from IRC, in collaboration with PRS, PDWRAM, PDRD and other stakeholders will ensure that procedures and methods are established and carried out to conduct internal and external monitoring of voluntary and involuntary land acquisition and resettlement required for all TSLRDP subprojects.

62. The EA will develop internal monitoring indicators, procedures and reporting requirements for all subprojects that are require involuntary land acquisition. Internal monitoring indicators will include: (i) payment of compensation to APs in accordance with the LARF and TSLRDP policies; (ii) coordination and completion of land acquisition, compensation and, as required, resettlement activities and commencement of civil works; (iii) adherence to public information dissemination and consultation procedures, and report on activities; and, (iv) adherence to grievance redress procedures, and report of activities.

63. In each province, the resettlement focal point will prepare quarterly monitoring report. The PDRD will consolidate provincial monthly reports to prepare a TSLRDP quarterly monitoring report to be submitted to the Executing Agency (EA), the IRC and ADB. The EA in collaboration with IRC will take appropriate steps to redress any problems that are identified, and confirm the resolution of issues to the ADB. The report includes information on key monitoring indicators, namely:

(i) Affected people and compensation: the number of APs by category of impact; the status of delivery of compensation and subsistence, moving and other allowances.

(ii) Status of rehabilitation and income restoration activities: The number of APs severely affected by a) loss of productive assets and/or b) displacement; the number of vulnerable APs; the status of relocation of displaced APs; the status of technical and other assistance for income restoration.

(iii) Information disclosure and consultation: number and scope of public meetings and/or consultations with APs; status of notifications to APs; summary of AP needs, preference and concerns raised during meetings and consultations.

(iv) Complaints and grievances: summary of types of complaints received; steps taken to resolve them; outcomes; and, any outstanding issues requiring further management by district or provincial authorities or ADB assistance.

(v) Financial management: the amount of funds allocated for compensation, operations and other activities; the amount of funds disbursed for each.

(vi) Resettlement schedule: completed activities as per schedule; delays and deviances, including reasons; revised resettlement schedule.

(vii) Coordination of resettlement activities with award of contract for civil works: status of completion of resettlement activities and projected date for award of civil works contracts.

(viii) Implementation problems: problems that have arisen, reasons and proposed strategies to remedy; outstanding issues.

B. External Monitoring of APs

64. The EA engages an independent monitoring organization (IMO) to conduct external monitoring of APs for the Project. The purpose of external monitoring is to assess whether APs are able to restore their living conditions, livelihoods and incomes to pre-subproject levels and, if not, to recommend remedial actions to assist APs. The IMO conducts socio-economic surveys of APs on a bi-annual basis and one year following completion of compensation payments; and, Appendix 14 Page 55 monitors resettlement activities including, among others, the DMS, payment of compensation and allowances, rehabilitation and income restoration activities, public meetings and consultations, and the grievance redress process.

65. The IA and Commune support the work of the IMO in the following ways:

(i) Collect baseline socio-economic data from APs during the DMS; and, make all DMS data, official AP lists and other relevant data available to the IMO.

(ii) Assist the IMO, as required, during follow-up socio-economic surveys and consultations with APs.

(iii) Accommodate the IMO to participate in, monitor and receive relevant information about resettlement activities.

X. IMPLEMENTATION SCHEDULE

66. The implementation schedule for resettlement activities for the subproject is presented in the following table including (i) activities that have been completed to prepare the RP; (ii) resettlement implementation activities; and, (iii) external monitoring activities.

Implementation Main Resettlement Plan Activities Schedule Prepare Resettlement Plan Detailed engineering and demarcation of land to be acquired Award contract and mobilize independent monitoring organization Conduct DMS and prepare compensation charts Public meeting and consultations with APs on draft RP Finalize updated RP and submit to PMU for review and referral EA approval of RP; ADB no-objection to RP Implement Resettlement Plan Compensation payments Implementation of relocation measures Implement rehabilitation measures Clearance of acquired land Award of civil works contract Post-resettlement evaluation External Monitoring EA awards contracts and mobilizes IMO IMO participates in DMS and establishes AP socio-economic baseline IMO conducts 1st follow-up survey and monitoring report IMO conducts 2nd follow-up survey and monitoring report IMO conducts post-resettlement survey and final monitoring report

Appendix 14 Page 56

APPENDIX 1: DMS SURVEY FORM

Owner (HH head): ______HH code ______Hamlet: ______Commune : ______District: ______Sub-project: ______

Affected assets of HH: Residential land: □ Garden land: □ Agriculture land: □ Aquaculture land: □House : □ Structure: □ Trees: □ Crops: □

Members taking part in the survey consisting of:

1. Mr/Ms: ______Position: ______Repres. of: ______2. Mr/Ms: ______Position: ______Repres. of: ______3. Mr/Ms: ______Position: ______Repres. of: ______4. Mr/Ms: ______Position: ______Repres. of: ______5. Mr/Ms: ______Position: ______Repres. of: ______6. Mr/Ms: ______Position: ______Repres. of: ______

The survey team together with affected household’s head have carried out this survey and agreed all the data and information recorded in this questionnaire. The head of affected household understood clearly that all data and information that recorded in the questionnaire have been fixed and never changed, it will be used for estimation of compensation for land, houses, structures, crops, trees and other assets acquired by the subproject. The socio-economic information of affected household will be used as database for assessment of living standard of affected people after completion of the project.

1. SOCIO-ECONOMIC INFORMATION 1.1 Household’s Information Type of HH: poor HH: □ Policy HH: □ Female-Headed HH : □ Ethnic HH: □ No of HH members: ...... ; of which ...... male, ...... female

Education level of HH head (specify): ...... ; Age of HH head: ......

1. 2. Economic Information of Household

1.2.1 Status of Land Use

Type of land Area of land (m2) 1. Residential land 2 Garden land 3. Agriculture land 4. Aquaculture land 5. Forestry land

Appendix 14 Page 57

1.2.2 Income sources of household

Income source Main source Secondary source 1. Planting 2. Breeding 3. Fishery 4. Business 5. Handicraft 6. Services 7. Salary 8. Hired labor 9. Others (specify)

2 DETAILED MEASUREMENT SURVEY (DMS) 2.1 Land Total area of Legality of Land acquired by the Project Type of land Category land land permanently temporarily of land available (specify) (m2) (m2) (m2) 1 2 3 4 5 6 Notes: 1. Type of land: Residential land (urban, rural), garden land, cultivation land, land for aquaculture, forest land, etc. 2. Category of land: Classify only for agricultural land (category 1 to 6), and land for aquaculture. 3. Legality: Specify clearly the situation of land use of household such as hold / did not held the Land Use Right Certificate, waiting for LURC, land user is eligible under the Land Law, rental land, land allocated temporarily, encroached land, disputed land, etc. 4. Land acquired permanently: Land should be acquired by the project for construction and will be not returned back to the affected people. 5. Land acquired temporarily: Land should be acquired by the project during the construction, using for widening the construction access road for material transportation, material storage, worker’s house, etc and it will be returned back to land owners. 2.2 Principal Structure – House and/or shop Type of Purpose of Total area Area Description house, use (m2) demolished structure (m2)

Additional notes if necessary: ______

Appendix 14 Page 58

2.3 Other structures and assets Type of structure and assets Unit Quantity 1 2 3 4 5 6 7 8 Additional notes if necessary: ______2.4 Trees and crops Kind of trees and crops Unit Description/productivity Note 1 2 3 4 5 6 7 Note: Pls use additional sheets for trees and crops, if necessary.

3. RELOCATION OPTIONS OF AP (for permanent relocating APs only)

● Individual relocate in other place: □

● Willing to relocate in the resettlement site: □

● Do not know where to move: □ Appendix 14 Page 59

Sketch location of house, structures affected by the project To the North Sticked picture of affected house (approx.)

N

Draw

● Boundary of land

● Location of houses, structures on land (note & number)

● Other land plot near affected area. If far, not need to draw;

● Put a measurement of house, structures on

● Put a measurement of affected area

● Mark major benchmarks as road, river, canal names on etc.

● Location of photo taken

Note: ______

Appendix 14 Page 60 This questionnaire has been set up into 6 copies with the same content and should be sent to: PPMU, CARB, Communal Peoples Committees, DMS Team, and Affected Household’s Head. This questionnaire has been also read by all members and agreed to sign for confirmation and consideration as basic data for compensation price estimation, and it will be nothing to complaint after that.

Signature of HH Head Representative of PPMU Representative of CARB

(sign & seal) (sign & seal)

Representative of CPC Signature of Land Manager Representative of DMS Team

(sign & seal)

Appendix 14 Page 61 APPENDIX 2: LIST OF APS AND AFFECTED ASSETS