41392-023: Decentralized Public Service and Financial Management
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Due Diligence Report on Social Safeguard July 2019 CAM: Decentralized Public Service and Financial Management Sector Development Project, Subprogram 2: Sub-National Investment Fund (SNIF) Prepared by SNIF Secretariat for Asian Development Bank (ADB). The Due Diligence Report on Social Safeguard is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status. 1 Contents CURRENCY EQUIVALENTS .......................................................................................................... 3 ABBREVIATIONS ........................................................................................................................... 3 I. BACKGROUND OF PROJECT AND RATIONALE ..................................................................................... 4 II. SUBPROJECT DESCRIPTION AND SCOPE OF WORKS ........................................................................ 5 III. OBJECTIVES OF THE DUE DILIGENCE REPORT ................................................................................. 10 IV. METHODOLOGY ....................................................................................................................................... 10 V. SUBPROJECT CLASSIFICATION AND IMPACT ASSESSMENT ........................................................... 10 5.1. ADB’s classification system .................................................................................................... 10 5.2. Subproject descriptions, location maps, road width and COI ................................................... 11 5.3. Impact Assessment ................................................................................................................ 16 VI. INFORMATION DISCLOSURE AND CONSULTATIONS ......................................................................... 17 VII. GRIEVANCE AND REDRESS MECHANISM ............................................................................................ 22 VIII. MONITORING AND REPORTING ........................................................................................................ 23 IX. CONCLUSIONS AND RECOMMENDATIONS ........................................................................................... 23 Annex-1: Screening checklists completions .................................................................................. 25 Annex-2: Summary of minutes of public meetings: ........................................................................ 53 Summary of Minutes of Public Consultation Meetings- Banan ................................................................... 53 Summary of Minutes of Public Consultation Meetings – Phnum Proek ...................................................... 54 Summary of Minutes of Public Consultation Meetings- Chamkar Leu ........................................................ 56 Summary of Minutes of Public Consultation Meetings- Chueng Prey ........................................................ 58 Summary of Minutes of Public Consultation Meetings- Kampong Siem ..................................................... 59 Summary of Minutes of Public Consultation Meetings- Kaoh Sotin ............................................................ 61 Summary of Minutes of Public Consultation Meetings- Srey Santhor ........................................................ 62 Summary of Minutes of Public Consultation Meetings- Kandal Stueng ...................................................... 64 Summary of Minutes of Public Consultation Meetings- Khsach Kandal ..................................................... 65 Summary of Minutes of Public Consultation Meetings- Kaoh Thom ........................................................... 67 Summary of Minutes of Public Consultation Meetings- Luek Daek ............................................................ 68 Summary of Minutes of Public Consultation Meetings- Lvea Aem ............................................................. 70 Summary of Minutes of Public Consultation Meetings- Mukh Kampul ....................................................... 71 Summary of Minutes of Public Consultation Meetings- Angsnoul .............................................................. 73 Summary of Minutes of Public Consultation Meetings- Ponhea Lueu ........................................................ 75 Summary of Minutes of Public Consultation Meeting- Kiri Sakor ................................................................ 77 Summary of Minutes of Public Consultation Meetings- Thma Bang ........................................................... 78 Summary of Minutes of Public Consultation Meetings- Ba-Phnum ............................................................ 80 Summary of Minutes of Public Consultation Meetings- Kamchhay Mear ................................................... 81 Summary of Minutes of Public Consultation Meetings- Kampong Trabaek ................................................ 83 Summary of Minutes of Public Consultation Meetings- Pea Reang ........................................................... 86 Summary of Minutes of Public Consultation Meetings- Svay Anthor .......................................................... 87 Summary of Minutes of Public Consultation Meetings- Sala Krau .............................................................. 89 Annex-3: Public Information Booklet- PIB ...................................................................................... 90 2 CURRENCY EQUIVALENTS (as of 7th June 2019) Currency unit – Riel (KR) KR1.00 = $0.0002455 $1.00 = KR4,072 ABBREVIATIONS ADB : Asian Development Bank APA : Annual Performance Assessment AEA : Annual Evaluation and Audit AP : Affected Person COI : Corridor of Impact COC : Environmental Code of Conduct CRO : Complaints Receiving Officer DL : Design Level DPSFM : Decentralized Public Service and Financial Management EARF : Environment Assessment and Resettlement Framework EIA : Environmental Impact Assessment EL : Existing Level EMP : Environmental Management Plan FGD : Focus Group Discussions GL : Ground Level GRM : Grievance and Redress Mechanism IEE : Initial Environmental Examination IP3 : 3 Years’ implementation plans MEF : Ministry of Economy and Finance MOE : Ministry of Environment NCDD : National Committee for Sub-National Democratic Development PFM : Public Finance Management PFT : Project Facilitation Team PDEF : Provincial Department of Economy and Finance REA : Rapid Environmental Assessment RGC : Royal Government of Cambodia ROW : Right of Way SPS : Safeguard Policy Statement SNA : Sub-National Administration SNIF : Sub-National Investment Facility 3 I. BACKGROUND OF PROJECT AND RATIONALE 1. The Royal Government of Cambodia’s Framework for decentralization and de- concentration reforms is contained in the National Program for Sub-National Democratic Development (2010–2019), which is implemented through 3-year implementation plans (IP3). Key legal pillars of the reform include the 2008 Organic Law on Capital, Provinces, Municipalities, Districts and Khans, and the 2011 Sub-national Finance Law. The first IP3 2011–2014 already identified the establishment of the Sub-National Investment Fund (SNIF) as a key reform priority and element of the financing system of Sub-National Administrations (SNAs) in Cambodia. Under the DPSFM, subprogram 1, ADB supported the full technical design of the SNIF. The proposed subprogram one aims to assist the SNIF’s full establishment and operations between 2016 and 2019. 2. The Sub-National Investment Fund (SNIF) is a financing instrument, separate but complementary to regular grants for SNAs that aims to achieve two policy objectives: (i) to promote socio-economic development at the subnational level by financing high quality and strategic public investments by subnational administrations; and (ii) to provide subnational administrations (SNAs) with incentives to improve their overall performance and public investment management. To that extent, the SNIF aims to absorb larger, bulkier investment expenditures from SNAs, and thus release the use of regular grants for recurrent expenditure commitments. 3. The SNIF will be governed by a Board Chaired by the Ministry of Economy and Finance. Day to day activities will be led by the SNIF Secretariat, located at the MEF. Through an annual performance assessment, the SNIF will select, among the country’s 159 districts, those eligibilities for funding in a given year. In addition to the target districts, some municipalities may be included on pilot basis at later stage of the Project, which will be fully funded by the Government. Selection will be based on the annual performance assessments (APA) of districts to identify eligible SNAs under the SNIF and so project areas may therefore vary from year to year. The ultimate beneficiaries of the projects funded under the SNIF will be the households and individuals in the selected districts. 4. Sub-National Investment Fund (SNIF) Secretariat has been categorized all proposed subprojects. Review and field visits for subprojects confirm that environmental implications are limited to standard small-scale impacts as the expected project value is up to a maximum of