Safeguard Monitoring Report Semi-Annual Report (July to December 2020) January 2021 Cambodia: Decentralized Public Service and Financial Sector Development Project Subprogram 2 Sub-National Investment Fund (SNIF) Prepared by Project Management Unit of Sub-National Investment Fund Secretariat (SNIF-S) for the Ministry of Economy and Finance and the Asian Development Bank. NOTE (i) In this report, "$" refers to United States dollars. This safeguard monitoring report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Contents I. Executive Summary ......................................................................................................... 1 II. Project Overview, General safeguard matters.................................................................. 2 2.1 Project Overview ......................................................................................................... 2 2.2 Project Progress ......................................................................................................... 6 2.3 Safeguard Plans Implementation Arrangements ....................................................... 10 2.4 Updated ECoC, Incorporation of Safeguards Requirements into Project Contractual Arrangements .................................................................................................................. 13 III. Environmental Performance Monitoring ......................................................................... 13 3.1 Status of ECoC Implementation (Mitigation Measures) ............................................. 13 3.1.1 Detailed design-construction stage: ..................................................................... 13 3.1.2 Construction and operations: ............................................................................... 14 3.1.3 Management of construction sites: ....................................................................... 14 3.1.4 Community and safety ......................................................................................... 15 3.1.5 Ready construction site: ....................................................................................... 15 3.2 Health and Safety ..................................................................................................... 23 3.3 Environment Effect Monitoring .................................................................................. 24 IV. Involuntary Resettlement Performance Monitoring ........................................................ 26 V. Indigenous PeopleS Performance Monitoring ................................................................ 26 VI. Compliance with safeguards related project covenants ................................................. 26 VII. Public consultation, Information Disclosure, Capability Building ..................................... 29 7.1. Meetings and consultations .................................................................................. 29 7.2. On-job training/capacity building to involved officers, workers and site engineers 31 VIII. Grievance Redress Mechanism ................................................................................... 31 IX. Conclusion ..................................................................................................................... 33 X. Attachment-1: Environmental Monitoring checklist completions ..................................... 34 Attachment-2: List of Participants in safeguards orientation ................................................ 67 Attachment-3: The photos of safeguards performance/activities ......................................... 70 I. EXECUTIVE SUMMARY 1. Asian Development Bank (ADB) has provided the loan to the Royal Government of Cambodian through Loan Agreement number 3414-CAM (SF) to implement the Decentralized Public Service and Financial Management Sector Development Project (DPSFM), Subprogram 2. Under the Decentralized Public Service and Financial Management (DPSFM), subprogram 2, ADB supports the full technical design of the Sub-National Investment Fund Secretariat (SNIF- S). As the project loan, the proposed subprogram-1 aims to assist the Subnational Investment Fund (SNIF) full establishment and operations between 2016 and 2021.The project is prioritized to subnational investment project that are eligible through annual performance assessment (APA). Investment Project Proposals (IPP) had been prepared to seek the approval from ADB. 2. There were 32 districts have submitted their investment project proposals (IPP) to SNIFS for reviewing during Q4, 2018, requesting for SNIFs’ fund for their eligibility to implement investment project, which was relatively civil work project, the upgrading road. The SNIFS has reviewed IPPs, conducted fields assessments and decided to drop out ten (10) investment project proposals among 32 district proposals due to non-compliance with safeguard policy statement (in accordance with loan covenant and PAM) as well as SNIF eligibility criteria, such as land acquisition and resettlement, the changes of project locations (road lines), Indigenous peoples (IPs) community/area, and funding availability from other sources (charity). 3. After safeguards clearance, the current SNIF’s sub-projects consisted of 22 subprojects, included 5 lots, each lot is containing two (2) subprojects to seven (7) subprojects, on 11th March 2020, lot-1 and lot-4 were awarded contracts to C.NO Construction and Investment Co., Ltd, while Lot-2, lot-3, and lot-5 were awarded contracts to SEAK CHHEAV LENG Enterprise Co., Ltd. for civil works implementations and the civil works have accomplished 100% as of 23rd December 2020. 4. With regard to environmental safeguards, the awarded contractors have been followed the Environmental Code of Conduct (ECoC) during the project implementation including traffic management plan, dust, noise, vibration, occupational health and safety, and community health and safety, solid and liquid waste management and the COVID-19 managing risk and prevention. The environmental monitoring on construction sites were conducted monthly by using environmental monitoring checklist through contractors, site engineers and environmental consultant. As results, the awarded contractors have been compliance with the requirements provided in the ECoC. 5. The social safeguards were not entailed any resettlement impact either on productive land, residential or commercial lands, commercial trees/crops, and were not disturb any business, incomes, or livelihoods of inhabitants as confirmed by the Social Safeguards Due Diligence Report (DDR) endorsed by CARM safeguards team since July 2019. Therefore, the subprojects were classified as category C for involuntary resettlement (IR) and indigenous peoples (IP) according to ADB’s classification, following the subproject selection criteria specified in the Loan Agreement/covenant and Project Administration Manual (PAM). No subproject in the indigenous peoples’ area was selected with respect to the subproject selection criteria in the Environmental 1 Assessment and Review Framework (EARF), Project Administration Manual (PAM), and Loan Agreement (LA) as well as the selection criteria for Investment Project Proposals of SNIF secretariat. 6. The grievance redress mechanism (GRM) had been established at each participating district offices and/or commune offices for all matters related to any SNIF financed investments (sub- projects). The district project committee including the environmental officers have monitored the implementation of civil works by the awarded contractors. The transparent complaint boxes are placed in the 22 communes and/or district offices to receive anonymity letters from villagers/beneficiaries who are wanting to express their concerns regarding any issues of civil work implementations and safeguards issues. Up to 31 December 2020, there was no impact of safeguards issues, there is no complaint filing at all districts/communes that have implemented the civil works. 7. The SNIF-S involved officers and consultants have conducted spot-checks, mainly on the milestones of civil work accomplishment/completions, for instance, from 1st July to 31st December 2020, SNIF-S conducted spot-checking for civil works remaining of twelve (12) subprojects including Phnum Proek in Battambang province, Chamckar Leu, Kampong Siem, Cheung Prey, Kaoh Sotin Districts in Kampong Cham province, Sala Krau district in Pailin province, Kiri Sakor in Koh Kong province, Lvea Aem, Luek Daek, Kaoh Thum, Angk Snuol and Kandal Stueng districts in Kandal province. COVID-19 managing risk and prevention has been implementing for staff and workers following the COVID-19 guidance set out in the updated Environmental Code of Conduct as well as Ministry of Health’s guidelines and circulation. 8. The next reporting period (January-June 2021) will be dealing with the implementations of safeguards issues for the ten (10) subproject, circle-2-remained nine (9) subproject after screening and endorsing DDR-. During this time, it is in the bidding process and expected to implementing for the period from January to June