Public Disclosure Authorized

FOR OFFICIAL USE ONLY

Report No: PAD3522

INTERNATIONAL DEVELOPMENT ASSOCIATION

Public Disclosure Authorized

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED CREDIT

IN THE AMOUNT OF SDR 73.2 MILLION

(US$100 MILLION EQUIVALENT)

TO
Public Disclosure Authorized

THE KINGDOM OF CAMBODIA

FOR A

CAMBODIA ROAD CONNECTIVITY IMPROVEMENT PROJECT

June 24, 2020

Public Disclosure Authorized

Transport Global Practice

East Asia and Pacific Region

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 CURRENCY EQUIVALENTS
(Exchange Rate Effective April 30, 2020)

Currency Unit = Cambodian Riel (KHR)

KHR 4,077.97 = US$1
US$1 = SDR0.73185

FISCAL YEAR
January 1 – December 31

Regional Vice President: Victoria Kwakwa

Country Director: Mariam J. Sherman
Regional Director: Ranjit J. Lamech
Practice Manager: Almud Weitz
Task Team Leader(s): Sadig Aliyev, Veasna Bun
 ABBREVIATIONS AND ACRONYMS

ADB Asian Development Bank

AFD French Development Agency (Agence Française de Développement)
CBA Cost-Benefit Analysis
CPF Country Partnership Framework
CERC Contingent Emergency Response Component
DA Designated Account
DBST Double Bituminous Surface Treatment
EIRR Economic Internal Rate of Return
ESCP Environmental and Social Commitment Plan
ESF Environmental and Social Framework
ESMF Environmental and Social Management Framework
ESMP Environmental and Social Management Plan
ESO Environmental and Social Office
ESS Environmental and Social Standard
EU European Union
FM Financial Management
FMM Financial Management Manual
GBV Gender-based Violence
GDPW General Department of Public Works (MPWT)
GDRR General Department of Rural Roads (MRD)
DoA Department of Accounting (MPWT)
DFS Department of Finance and Supply (MRD)
GHG Greenhouse Gas
GIS Geographic Information System
GMAP Gender Mainstreaming Action Plan
GMSP Gender Mainstreaming Strategic Plan
GDP Gross Domestic Product
GRM Grievance Redress Mechanism
GRS Grievance Redress Service
HDM-4 Highway Development and Management-4
ICR Implementation Completion and Results Report
IEG Independent Evaluation Group
IFAD International Fund for Agricultural Development
IFPRI International Food Policy Research Institute
IFR Interim Unaudited Financial Report
INDC Intended Nationally Determined Contribution
IRI International Roughness Index
ITMP Intermodal Transport Master Plan
JICA Japan International Cooperation Agency
KfW German Development Bank (Kreditanstalt für Wiederaufbau)
M&E Monitoring and Evaluation
MEF Ministry of Economy and Finance
MPWT Ministry of Public Works and Transport
MRD Ministry of Rural Development
NPV Net Present Value
NR National Road
OPBRC Output- and Performance-based Road Contract
PBC Performance-based Contract
PD Project Director
PDO Project Development Objective
PIT Project Implementation Team
PM Project Manager
POM Project Operations Manual
PPSD Project Procurement Strategy for Development
PR Provincial Road
PSC Project Steering Committee
PSI Project Safety Impact
PU Procurement Unit
RAMP II Road Asset Management Project II
RDCMU Road Data Collection and Management Unit
RGC Royal Government of Cambodia
RPF Resettlement Policy Framework
RS4 Rectangular Strategy IV
RSSAT Road Safety Screening and Appraisal Tool
SEA DRM Southeast Asia Disaster Risk Management
SEP Stakeholder Engagement Plan
SOP Standard Operation Procedures
TA Technical Assistance
VAC Violence against Children
VOC Vehicle Operating Cost
Z
TABLE OF CONTENTS
DATASHEET ........................................................................................................................... 2
I. STRATEGIC CONTEXT ...................................................................................................... 8
A. Country Context................................................................................................................................ 8
B. Sectoral and Institutional Context .................................................................................................. 10
C. Relevance to Higher Level Objectives............................................................................................. 16
II. PROJECT DESCRIPTION.................................................................................................. 17
A. Project Development Objective ..................................................................................................... 17
B. Project Components ....................................................................................................................... 17
C. Project Beneficiaries ....................................................................................................................... 20
D. Results Chain .................................................................................................................................. 20
E. Rationale for the World Bank Involvement and Role of Partners .................................................. 22
F. Lessons Learned and Reflected in the Project Design .................................................................... 24
III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 25
A. Institutional and Implementation Arrangements .......................................................................... 25
B. Results Monitoring and Evaluation Arrangements......................................................................... 26
C. Sustainability................................................................................................................................... 26
IV. PROJECT APPRAISAL SUMMARY ................................................................................... 27
A. Technical ......................................................................................................................................... 27
B. Economic Analysis........................................................................................................................... 31
C. Fiduciary.......................................................................................................................................... 33
D. Legal Operational Policies .............................................................................................................. 34
E. Environmental and Social ............................................................................................................... 35
F. Gender ............................................................................................................................................ 37
V. GRIEVANCE REDRESS SERVICES ..................................................................................... 39
VI. KEY RISKS ..................................................................................................................... 40
VII. RESULTS FRAMEWORK AND MONITORING ................................................................... 42
ANNEX 1: IMPLEMENTATION ARRANGEMENTS AND SUPPORT PLAN ................................... 56
ANNEX 2: DETAILED PROJECT DESCRIPTION ......................................................................... 72
ANNEX 3: ECONOMIC ANALYSIS........................................................................................... 78
ANNEX 4: GEOSPATIAL ANALYSIS FOR RURAL ROADS PRIORITIZATION................................. 81
ANNEX 5: GENDER-BASED VIOLENCE RISK MITIGATION........................................................ 86
ANNEX 6: MAP OF CAMBODIA WITH PROJECT SITE .............................................................. 91

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Cambodia Road Connectivity Improvement (P169930)

DATASHEET

BASIC INFORMATION
BASIC_INFO_TABLE
Country(ies) Project Name

Cambodia Cambodia Road Connectivity Improvement

Project ID Financing Instrument Environmental and Social Risk Classification

Investment Project
P169930 Substantial
Financing

Financing & Implementation Modalities

[ ] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC)
[ ] Series of Projects (SOP) [ ] Fragile State(s)

[ ] Performance-Based Conditions (PBCs) [ ] Small State(s)

[ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country

[ ] Project-Based Guarantee [ ] Conflict

[ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster

[ ] Alternate Procurement Arrangements (APA) [ ] Hands-on Enhanced Implementation Support (HEIS)

Expected Approval Date Expected Closing Date

16-Jul-2020 31-Jul-2027

Bank/IFC Collaboration

No

Proposed Development Objective(s)

The project development objective is to improve climate resilient road access to economic and human development
facilities in targeted provinces.

Components

Component Name Cost (US$, millions)

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Component 1: National and Provincial Roads Improvement 47.00

Component 2: Rural Roads Improvement 47.00

Component 3: Institutional Development and Project Management 6.00

Component 4: Contingent Emergency Response 0.00

Organizations

Borrower: Kingdom of Cambodia

Implementing Agency: Ministry of Public Works and Transport
Ministry of Rural Development

PROJECT FINANCING DATA (US$, Millions)

SUMMARY -NewFin1

Total Project Cost 100.00

Total Financing 100.00

of which IBRD/IDA 100.00

Financing Gap 0.00

DETAILS -NewFinEnh1

World Bank Group Financing

International Development Association (IDA) 100.00

IDA Credit 100.00

IDA Resources (in US$, Millions)

Credit Amount Grant Amount Guarantee Amount Total Amount

Cambodia 100.00 0.00 0.00 100.00

National PBA 100.00 0.00 0.00 100.00

Total 100.00 0.00 0.00 100.00

Expected Disbursements (in US$, Millions)

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WB Fiscal Year 2021 2022 2023 2024 2025 2026 2027 2028

Annual 3.00 15.00 25.00 30.00 9.00 8.00 5.00 5.00

Cumulative 3.00 18.00 43.00 73.00 82.00 90.00 95.00 100.00

INSTITUTIONAL DATA

Practice Area (Lead) Contributing Practice Areas

Transport Agriculture and Food, Urban, Resilience and Land

Climate Change and Disaster Screening

This operation has been screened for short and long-term climate change and disaster risks

SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)

Risk Category Rating

1. Political and Governance ⚫ Substantial

2. Macroeconomic ⚫ Moderate

3. Sector Strategies and Policies ⚫ Moderate

4. Technical Design of Project or Program ⚫ Moderate

5. Institutional Capacity for Implementation and Sustainability ⚫ Substantial

6. Fiduciary ⚫ Substantial

7. Environment and Social ⚫ Substantial

8. Stakeholders ⚫ Moderate

9. Other

10. Overall ⚫ Substantial

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COMPLIANCE

Policy
Does the project depart from the CPF in content or in other significant respects?
[ ] Yes [✓] No

Does the project require any waivers of Bank policies?

[ ] Yes [✓] No

Environmental and Social Standards Relevance Given its Context at the Time of Appraisal

E & S Standards Relevance

Assessment and Management of Environmental and Social Risks and Impacts Relevant

Stakeholder Engagement and Information Disclosure Relevant

Labor and Working Conditions Relevant

Resource Efficiency and Pollution Prevention and Management Relevant

Community Health and Safety Relevant

Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant

Biodiversity Conservation and Sustainable Management of Living Natural Relevant

Resources
Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Relevant
Local Communities
Cultural Heritage Relevant

Financial Intermediaries Not Currently Relevant

NOTE: For further information regarding the World Bank’s due diligence assessment of the Project’s potential
environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review
Summary (ESRS).

Legal Covenants

Sections and Description

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Institutional Arrangement
Section I.A 2 of Schedule 2 to the Financing Agreement

The Recipient shall maintain, a Steering Committee with terms of reference and composition acceptable to the
Association to be responsible, inter alia, for providing overall policy direction, strategic guidance, and general
oversight of the Project.

Sections and Description

Annual Work Plans and Budget
Section I.C 1 of Schedule 2 to the Financing Agreement

The Recipient shall furnish to the Association, after approval by MEF, for review and approval not later than
November 30 of each year during the implementation of the Project (or such later date as the Association may
agree), an annual work plan and budget (“AWPB”) for the Project containing relevant Project activities and
expenditures proposed to be included in the Project in the subsequent year.

Sections and Description

Environmental and Social Standards
Sections I.D.1 and I.D.2 of Schedule 2 to the Financing Agreement

The Recipient shall ensure that the Project is carried out in accordance with the Environmental and Social
Standards, in a manner acceptable to the Association. Without limitation upon paragraph 1 above, the Recipient
shall ensure that the Project is implemented in accordance with the Environmental and Social Commitment Plan,
including Environmental and Social Instruments referred to therein (ESCP), in a manner acceptable to the
Association. To this end, the Recipient shall ensure that: (a) the measures and actions specified in the ESCP are
implemented with due diligence and efficiency, and as further specified in the ESCP and the Safeguards
Instruments; (b) sufficient funds are available to cover the costs of implementing the ESCP; (c) policies, procedures
and qualified staff are maintained to enable it to implement the ESCP, as further specified in the ESCP; and (d) any
of the ESCP, or any provision thereof, is not amended, revised or waived, except as the Association shall otherwise
agree in writing and the Recipient has, thereafter, disclosed the revised ESCP.

Conditions
Type Description
Disbursement No withdrawal shall be made for Emergency Expenditures under Category (3), unless and
until the Association is satisfied that all of the following conditions have been met in respect
of said expenditures: (i) the Recipient has determined that an Eligible Crisis or Emergency has
occurred, has furnished to the Association a request to include said activities in the
Emergency Response Part in order to respond to said crisis or emergency, and the
Association has agreed with such determination, accepted said request and notified the
Recipient thereof; (ii) the Recipient has ensured that all safeguards instruments required for
said activities have been prepared and disclosed, and the Recipient has ensured that any
actions which are required to be taken under said instruments have been implemented, all in

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accordance with the provisions of Sections I.G of this Schedule; (iii) the entities in charge of
coordinating and implementing the Emergency Response Part have adequate staff and
resources, in accordance with the provisions of Section I.G of this Schedule, for the purposes
of said activities; and (iv) the Recipient has adopted the ERM, in form and substance
acceptable to the Association, and the provisions of the ERM remain - or have been updated
in accordance with the provisions of Section I.G of this Schedule 2 so as to be - appropriate
for the inclusion and implementation of the Emergency Response Part. (Section III.B.1(b) of
Schedule 2 to the Financing Agreement)

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I. STRATEGIC CONTEXT

A. Country Context

1. Over the past two decades, Cambodia has undergone significant economic transition, reaching
lower-middle-income status in 2015. The total population in Cambodia is approximately 16.7 million.1
The economy is growing rapidly driven by agriculture, garment exports, tourism, and, more recently,
construction. The annual average growth rate of 7.7 percent over 1998–2018 ranked Cambodia among
the top seven fastest-growing economies in the world. As a result, Cambodia’s per capita gross national
income in current U.S. dollars increased from US$320 in 1997 to US$1,390 in 2018. Cambodia had also
made significant progress in attaining the Millennium Development Goals.

2. Continuous high growth has led to dramatically reduced monetary poverty. Official estimates
show that the percentage of Cambodians living under the national poverty line fell from 47.8 percent in
2007 to 13.5 percent in 2014. Poverty reduction was accompanied by improved human development and
significant increases in living standards. Cambodia’s growth has also stimulated job creation, especially
for youth and women in labor-intensive activities, as part of the expansion of activities across agriculture,
manufacturing, and services. Inequality level is reducing—consumption per capita for the bottom 40
percent grew at an annual average rate of 7.8 percent, compared with that for the top 60 percent at 4.7
percent. Despite this progress, most of the poor have low-paying jobs, signaling that low skills and
productivity continue to be challenges. Moreover, Cambodia’s gains in poverty reduction remain highly
precarious, as most households that escaped poverty did so by only a small margin.

3. With an aspiration to become an upper-middle-income country by 2030, Cambodia needs to

strengthen its growth drivers. Cambodia’s labor-intensive, export-oriented garment industry is facing a
demand shock in 2020 alongside rising wages and greater competition from abroad. Recent partial
suspension of Cambodia’s preferential access to the European Union (EU) market under the everything-
but-arms policy could add to the impact on the country’s exports given its reliance on the EU market. A
sharp slowdown of the Chinese economy could also affect sensibly the foreign direct investment inflows
and tourist arrivals. The real estate market correction following increased credit provided to the
construction and mortgage sectors, which recently rely highly on Chinese investment, and high
outstanding credit, are additional vulnerabilities.

4. The recent COVID-19 global outbreak caused sharp decelerations in most of Cambodia’s main
engines of growth in the first quarter of 2020, including weakened tourism and construction activity.2
Several measures under a newly introduced fiscal stimulus in the 2020 budget have been announced by
the Royal Government of Cambodia (RGC) to mitigate the negative impact. The Ministry of Health has
updated Cambodia’s existing pandemic response strategy3, and an Inter-ministerial Committee for
responding to COVID-19 was established with participation of all ministries and provincial governors.
Efforts to diversify the agriculture sector and rural households’ incomes are expected to help in the
medium term. Given that a large share of the population are living in rural areas, improving road

1 United Nations. 2020. World Population Prospects.

2 World Bank. 2020. World Bank East Asia and Pacific Economic Update, April 2020: East Asia & Pacific in the Time of COVID-19.
3 Kingdom of Cambodia. 2020. National Action Plan: Preparing for and Responding to Novel Coronavirus (COVID-19) in the

Kingdom of Cambodia, February to August 2020.

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connectivity and access to healthcare and emergency services in rural areas remains an important task to
strengthen the preparedness for emergency situations, as well as to improve access to jobs and services
for the rural poor.

5. The infrastructure gap remains serious and greater connectivity is needed. Cambodia ranks
below neighboring countries such as Thailand and Vietnam on the Global Competitiveness Index’s
infrastructure measure. Limited access to year-round all-weather roads and the connectivity gap between
the provincial and rural roads (the so-called ‘missing middle’) negatively affect food value chains and
access to health, education, and other public services, a problem exacerbated by frequent flooding. With
high economic growth rates and potential, it is projected that Cambodian firms will move 4.1 times more
goods in 2030 than in 2016.4 The national transport infrastructure will have to be ready to process this
volume of goods; otherwise, it risks curbing Cambodia’s export potential and constraining job creation.

6. Gender equality has progressed over the past years; nonetheless, increase in efforts is required.
Labor force participation rates are 90 percent for men and 80 percent for women according to official
statistics. Women represented 41 percent of civil servants in 2017, showing a steady increase of
approximately 1 percentage point a year. Growth in employment in the construction sector, however, is
the lowest for women across sectors, including the transport sector. Despite the growth of the wage
employment share of women in the construction industry from 2.1 percent to 5 percent between 2011
and 2016, it is still disproportionally lower than that of men—25 percent of men are working in
construction.5 While there is also a gender gap in earnings across sectors, it is higher in the construction
industry. Transportation and road accessibility challenges are also among the main constraints facing
women in rural areas as about 44 percent of women work in agriculture. While the country-level policy
framework on gender-based violence (GBV) is comprehensive, there is a need to improve the prevention
programs and response services. The third National Action Plan on Violence Against Women is being
finalized by the Government and implemented by an inter-ministerial technical working group with
coordination functions at the national and provincial levels.

7. Cambodia is highly vulnerable to climate change and disaster risks. Around 80 percent of the
country is within the Mekong River and Tonle Sap basins, making it especially vulnerable to floods, storms,
and droughts. The 2020 Climate Risk Index ranks Cambodia as the 12th most disaster-prone country
among 172 countries for 1999–2018.6 Annual economic losses in Cambodia that resulted from natural
disasters were estimated at 0.7 percent of gross domestic product (GDP). The infrastructure sector is
particularly vulnerable to the impacts of disasters. During severe floods in 2014, about 86 percent of the
total damages occurred in the infrastructure sector, mainly to roads and water and irrigation.7 The
disruption of infrastructure connectivity further significantly affected the overall economy due to the loss
of market access of key economic goods such as agriculture products. Climate change projections indicate
increase of temperature by 0.7°C–2.7°C by 2060 and increase of intensity and frequency of extreme
precipitation in the monsoon season and flooding.8

4 World Bank. 2018. Investing in Logistics for Sustainable Economic Growth.

5 World Bank. 2019. Gender Analysis of the Cambodian Labor Market.
6 Germanwatch. 2020. Global Climate Risk Index 2020.
7 Kingdom of Cambodia. 2014. Post-Flood Early Recovery Need Assessment Report.
8 Climate Change Knowledge Portal. 2018. Cambodia Country Profile.

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B. Sectoral and Institutional Context

8. Roads are the main mode of transport in Cambodia. The country has navigable inland waterway
networks (Mekong, Bassac, and Tonle Sap Rivers and tributaries) and two rail links of about 650 km, but
roads are the dominant mode of transport in the country. The total length of the road network is 63,072
km, of which about 75 percent accounts for rural roads (table 1). Motorcycles and two-axle vehicles
account for most of the traffic. The road network was largely destroyed during the long period of unrest
in the 1970s and 1980s. With the advent of peace, Cambodia’s initial focus was on reconstruction of the
primary and secondary road network, followed by critical provincial and rural links to the main road
network.
Table 1. Cambodia Road Network
Road Category Length of Roads (km) Number of Roads Paved (%)
National (1-digit) 2,254 9 100
National (2-digit) 5,007 66 72
Provincial 9,031 528 30
Rural 46,780 16,252 5
Total 63,072 16,855
Source: MPWT and MRD 2019.

9. Road spending has traditionally received significant funding but has been on a decline in recent
years.9 Road spending peaked in 2012, at around 4.3 percent of GDP, following significant scaling-up of
infrastructure investment. Since then, it has been steadily falling, to 2.6 percent in 2016 (figure 1, left
panel). Government spending on roads, as a percentage of the national budget, has remained around 10–
12 percent (figure 1, right panel). In 2016, education overtook roads in terms of public spending, as it was
designated a priority sector.
Figure 1. Public Spending in Road, Education, and Health Sectors

Total Road, Eduction, and Health Sector Government own spending in road, education,
spending, % of GDP and health sector as % of National Budget
5.0 14.0
12.0
4.0
10.0
3.0 8.0
6.0
2.0
4.0
1.0 2.0
- -
2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 2017

Road Sector Education Sector Health Sector Road Budget Education Budget Health Budget

Source: World Bank. 2019. Cambodia Public Expenditure Review.

9 World Bank. 2019. Cambodia Public Expenditure Review.

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10. The legal framework is provided by the Road Law (2014) and Road Traffic Law (2016). The Road
Law focuses on the physical aspects of the network development and maintenance. It designates the road
type and classification and distributes road network management responsibilities among the Ministry of
Public Works and Transport (MPWT), the Ministry of Rural Development (MRD), and local governments.10
The Road Traffic Law structures road use, safety, and signaling. Truck overloading from national and
international freight transportation has been increasing and affecting the rate of deterioration of the
network. The Government has been improving the overloading control measures over the past years by
strengthening the enforcement of regulations and installation of weight stations on critical locations of
the core network.11

11. MPWT manages national and provincial roads and oversees enforcement of transportation
regulations. MPWT manages road construction centrally while using its own provincial departments to
carry out maintenance activities. In terms of transportation services, the Department of Land Transport
at MPWT oversees vehicle registration and licensing.

12. MRD manages rural roads and is responsible for planning, construction, improvement,
rehabilitation, and emergency maintenance of rural roads. Its provincial departments carry out periodic
and routine maintenance. MRD’s mandate includes sustainable and integrated rural development
including rural roads, small-scale irrigation, rural water supply, sanitation and health care, income
generation and employment in rural areas, ethnic minorities development, and community-based rural
development. The rural roads network under MRD includes four types of roads: T1 roads connecting rural
areas with national/provincial roads and provinces, cities, and districts; T2 roads connecting cities or
districts with communes; T3 roads connecting communes with each other; and T4 roads connecting
communes and villages and roads within villages.

13. The Government is developing a new Intermodal Transport Master Plan (ITMP) for 2021–2030.
While there were several efforts in the past to prepare strategic plans for transport subsectors—including
roads, railways, and logistics—they were not enacted. The ITMP will aim to improve Cambodia's internal
and external connectivity; reduce the cost of transportation, speed up its regional and global integration;
and enhance its competitiveness by focusing on intermodal transportation, roads, railways, waterways,
marine and air transportation, and logistics.

14. Over the past 20 years, the World Bank has supported modernization of the transport sector in
Cambodia. Between 1999 and 2014, the World Bank financed three road projects: (a) Road Rehabilitation
Project (1999–2006; P004030), (b) Provincial and Rural Infrastructure Project (2003–2011; P071207), and
(c) Road Asset Management Project (2008–2014; P106603), which have supported improvement and
rehabilitation of critical road infrastructure across the country. More recently, the ongoing Road Asset
Management Project II (RAMP II; P150572) has supported MPWT to introduce a road condition data
collection and asset management system for the core national road (NR) network. The ongoing IDA-

10 The management of special roads is determined case-by-case; for instance, certain rural roads are under the jurisdiction of the
Ministry of Agriculture, Forestry and Fisheries.
11 The ongoing World Bank-financed RAMP II supports MPWT with overloading control measures and installation of weight

stations along the project roads including NR7. In addition, an Asian Development Bank (ADB) project-financed technical
assistance (TA) supports MRD to improve the institutional structure, axle load control specifications, and provision of mobile
weight stations.

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financed projects are supporting improvement of the national12 and rural road13 sections with climate-
resilient measures. The performance-based contracting for road maintenance is being piloted and scaled
up, promoting the private sector participation in road maintenance and optimizing the maintenance
service quality.14

Key Sectoral Challenges

15. Despite the improvements of past years, transportation costs remain high in Cambodia.
Cambodia still lags its peers in road infrastructure quality (figure 2), ranking 107 in the Global
Competitiveness Index. A study that collected data on logistics and transportation costs from
manufacturing, agribusiness, and logistics service providers showed that the share of transport and
logistics costs over sales of companies is higher in Cambodia than in neighboring Thailand and Vietnam
(figure 3). The 2016 World Bank Group Enterprise Survey found that access to transportation is the fifth
most severe obstacle for firms in Cambodia. Improving transport connectivity, both domestically and with
neighboring countries, is therefore one of the main development priorities of the RGC to support
sustained economic growth and become more competitive in regional markets.

Figure 2. Road Infrastructure Quality Country Scores Figure 3. Transport and Logistics Costs as a Share of
Sales of Companies

S in g a p ore 90.9 Philippines

I n d on es ia 52.6 Indonesia

T h a ila n d 56.6 Thailand

V ietn a m 40.1 Vietnam

Lao PDR 44.3 Cambodia

C a m b od ia 42.7
0.0 10.0 20.0 30.0
Total logistics cost, including transport (%)
Transport cost (%)

Source: World Economic Forum. 2019. Global Source: JICA. 2018. A Study on Logistics System
Competitiveness Report. Improvement Master Plan in the Kingdom of Cambodia

16. Transportation in Cambodia takes place predominantly by road, with significant urban-rural
gaps in terms of accessibility. Cambodia’s road network has expanded significantly in recent years, with
total length increasing from 46,245 km in 2013 to 63,072 km in 2019. Nonetheless, about 75 percent of
the network comprises rural roads, of which only 5 percent are paved. With 79 percent of the population
living in rural areas, it will be important to improve rural road accessibility to help ensure inclusive
economic development and address the remaining urban-rural gap in access to services.

12 RAMP II (P150572) and Additional Financing (P165249) support improvement of condition, climate resilience, and safety of
about 424 km sections of NR3, NR4, and NR7.
13 The Southeast Asia Disaster Risk Management Project (P160929) supports improvement of about 257 km of rural roads with

climate resilience measures in six provinces.

14 World Bank. 2019. World Bank Group Country Partnership Framework for Kingdom of Cambodia for FY2019–FY2023.

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17. The financial allocation for road maintenance tends to be insufficient to ensure sustainable road
use. Although maintenance allocations have increased for national and provincial roads over the last
decade, budget allocations for rural roads maintenance have been marginal compared to the needs. This
especially affects the maintenance of lower volume rural roads, which often remain in poor condition,
making it more difficult for the rural population to access economic opportunities. Overall, the annual
funding allocations for rural roads are focused mostly on the improvement of a limited number of rural
roads, with little focus on maintenance.

18. A high motorization rate and gaps in enforcement of road safety regulations are increasing road
safety risks. The number of registered vehicles in Cambodia has been increasing at a double-digit rate
annually and was more than 4 million in 2017; motorcycles account for about 85 percent of all
registrations.15 The estimated rate of road fatalities in Cambodia per 100,000 population has been
increasing over the past decade, reaching 17.8 in 2016,16 which is significantly higher compared to the
international average. A significant number of people who lost their lives in road accidents were riders of
motorized two- and three-wheelers (73 percent) and pedestrians (10 percent). Other statistics indicate
that 80 percent of fatalities were men, indicating men as a high-risk group. About 19 percent of fatalities
were men between the ages of 20 and 24.

19. Cambodia’s road network is highly vulnerable to climatic and natural disaster risks. Cambodia’s
topography and tropical climate make its road network both highly exposed and sensitive to climate-
induced disasters. The southwest monsoon begins in mid-May and lasts through the end of October,
bringing over three-quarters of the country’s annual rainfall. As a result, floods along the Mekong River
and its tributaries and from the Tonle Sap Lake are recurrent and often constitute disasters to the
transport network. The transport infrastructure is usually the hardest hit by disasters, bearing 41 percent
of the overall economic losses in the last three main events in 2009, 2013, and 2014.17 Going forward,
damage to infrastructure is projected to be significant—the investment needs for resilient transport
infrastructure account for over 20 percent of the total climate change-related expenditure.18
Strengthening and adaptation of road assets such as pavements, drainages, bridges, and green and grey
slope protection infrastructure are becoming increasingly important.

Context in Project-Targeted Area

20. The targeted road network under the proposed project provides services to about 2 million
people in Kratie, Kampong Cham, and Tboung Khmum Provinces (about 12 percent of total country
population). More than 80 percent of the population in these three provinces live in rural areas, of which
about 50 percent are women (table 2). Agriculture is the primary economic sector for the three targeted
provinces where farmers cultivate crops for domestic and international markets, including rubber,
cassava, pepper, and corn. These valuable agriculture products rely on local road networks to reach

15 Asian Development Bank. 2019. Cambodia Transport Sector Assessment, Strategy, and Road Map.
16 World Health Organization. 2018. Global Status Report on Road Safety.
17 Climate Change Knowledge Portal. 2019. Cambodia Country Profile.
18 Asian Disaster Preparedness Center and UN Office for Disaster Risk Reduction. 2018. Disaster Risk Reduction in Cambodia:

Status Report 2018.

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markets. In addition, one of the major tourist attractions of Cambodia is located in Kratie Province where
many visitors travel to observe the Mekong River dolphins.
21. Road sections to be financed by the project are selected considering their importance for the
accessibility to economic and human development facilities, rural-urban connectivity and agriculture
logistics in line with the development priorities of the RGC. Among the project roads, a section of the
NR7 located in Kratie Province is part of the main East-West and North-South Corridors that link eastern
Cambodia, including Phnom Penh, with Lao PDR, and Vietnam;19 NR73 is a North-South link toward the
border with Lao PDR and provides shorter connectivity between Kampong Cham (through NR7), Tboung
Khmum, and Kratie Provinces; and PR377 and PR377A connect to NR7 and provide access to rural areas
in Kratie Province as well as to touristic sites along the Mekong River. MRD has further identified priority
local roads network that provide critical road access to economic and human development facilities (such
as markets, schools and hospitals) for rural communities in the project area.
Table 2. Characteristics of the Road Network in the Project Area
Kampong Cham Kratie Tboung Khmum
Total population 895,763 327,825 775,296
Rural population (percentage) 80 82 94
Female population (percentage) 49 50 51
Road crash-related fatalities (2018) 101 147 40
Rural road network (km) 1,767 2,120 2,443
Rural roads exposed to floods (km) 943 311 164
Rural roads unpaved (percentage) 83 99 87
NRs (1-digit, km) 103 198 137
NRs (2-digit, km) 196 155 156
Provincial roads (PRs) (km) 455 322 524
MPWT road sections exposed to floods 1 38 7
(km)
MPWT unpaved roads (percentage) 42 50 30
Main economic activities Agriculture and Agriculture and Agriculture and
manufacturing tourism tourism
Source: MRD, MPWT, and World Bank staff calculations.

22. In the project-targeted area, disrupted market access constrains income growth and agricultural
productivity. The geospatial accessibility and climate resilience analysis of the project area20 indicates that
only about 28 percent of the value of agriculture production can reach the closest market in 60 minutes,
and 22 percent of the value of agriculture production loses access to markets during floods (figures 4 and
5). The disrupted connectivity during flooding greatly threatens the livelihood of rural households in the
project area. In many places, farm-to-market rural roads are in poor condition and are interrupted during
the rainy season, not allowing access to production sites. This makes transport of bulk agricultural
commodities often prohibitively expensive.
23. The rural population are more vulnerable to emergency events such as pandemics and natural
disasters caused by road accessibility constraints, including accessibility disruptions during floods, to

19 Several sections of NR7 (158 km) are being improved under the ongoing IDA-financed RAMP II (P150572).
20 The methodology and findings of the geospatial accessibility and climate resilience analysis of the project area are presented
in annex 4.

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health facilities and emergency services. The accessibility analysis indicates that only 32 percent of the
rural population in project provinces can reach referral hospitals and emergency medical services within
30 minutes. Floods and heavy rains severely disrupt accessibility in the project area with more than 27
percent of the population losing access to referral hospitals (figure 6). Similarly, the analysis indicates that
more than 26 percent of the population lose access to schools during floods (figure 7). School teachers
interviewed during the field visits noted that some students miss up to two months of classes during the
rainy season because of the poor road condition. Therefore, addressing road accessibility constraints in
rural areas is important to strengthen preparedness for emergency events and support human capital
development in rural areas in the medium term.

Figure 1. Travel Time to Markets in the Project Area Figure 2. Flooding Impact on Market Access in the
Project Area

Source: World Bank staff. 2019. Baseline Accessibility Analysis in the Project Area.

Figure 6. Travel Time to Referral Hospitals in the Figure 7. Travel Time to High Schools in the
Project Area Project Area

Source: World Bank staff. 2019. Baseline Accessibility Analysis in the Project Area.

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24. Improved road connectivity and reduced disruptions on road access by heavy rains and floods
have a strong potential to benefit women, in some cases even more than men. Women’s mobility
patterns are different because of their expected role as caregivers and market vendors and their health
care and education needs. Women travel for economic reasons related to their informal, non-farm, and
agricultural employment, traveling to fields to harvest and to markets to sell their crops. During the rainy
season, traveling becomes even more difficult as roads are muddy and slippery, and sometimes access is
impossible due to floods. Poor roads, too few vehicles, and high transportation costs are also major causes
of delay or not being able to access emergency obstetric and postnatal care, resulting in complications for
delivery or delivery at home or on the way to health centers.

C. Relevance to Higher Level Objectives

25. The proposed project is part of the World Bank Group Program described in the Country
Partnership Framework (CPF) for Cambodia 2019–2023.21 The Systematic Country Diagnostic identified
infrastructure gaps as a significant barrier to competitiveness and private sector development.22 The
proposed project will support the CPF objectives: expand and improve sustainable infrastructure services
(CPF Focus Area 1, Objective 3); foster human development (CPF Focus Area 2); and improve agricultural
productivity (CPF Focus Area 3, Objective 8). The proposed project will contribute to achievement of the
World Bank Group’s twin goals—to reduce extreme poverty and promote shared prosperity—by
extending the benefits of climate-resilient road accessibility and lower transportation costs to a broader
segment of the population in rural areas, where most of the poor and near-poor are concentrated.

26. The proposed project is also aligned with the Government’s Rectangular Strategy IV (RS4),
through its emphasis on road connectivity and market access, rural development, strengthening climate
resilience, and supporting human development. The strategic areas of RS4 are human resource
development, economic diversification, promotion of private sector development and employment, and
inclusive and sustainable development. Transport connectivity is relevant to all strategic areas and is
explicitly indicated in the economic diversification agenda of RS4 to accelerate integration; connect the
main economic poles; and develop key economic corridors to be more competitive; and rehabilitate,
build, and develop physical transport infrastructure to respond to the demand for national
development.23

27. The proposed project will contribute to the implementation of Cambodia’s intended nationally
determined contributions (INDCs) to the Paris Agreement, particularly the priority on climate change
adaptation. Cambodia’s INDC highlights the increasing occurrence and severity of floods exacerbated by
climate change and its induced high costs for the maintenance and upgrading of road infrastructure.
Repairing and rehabilitating the existing road assets and ensuring effective maintenance in the context of
increasing climate change risks are of high priority for the country, as stated in the INDC.24 The proposed
project will not only strengthen the physical resilience of road infrastructure in targeted provinces but will

21 World Bank. 2019. Cambodia - Country Partnership Framework for the Period of FY2019–2023. Report Number: 136500.
22 World Bank Group. 2017. Cambodia - Sustaining Strong Growth for the Benefit of All: A Systematic Country Diagnostic. Report
Number: 115189.
23 Royal Government of Cambodia. 2018. Rectangular Strategy Phase IV for Growth, Employment, Equity, and Efficiency: Building

Foundation Towards Realizing the Cambodia Vision 2050.

24 Royal Government of Cambodia. 2015. Cambodia’s Intended Nationally Determined Contribution.

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also support MRD and MPWT to integrate climate and disaster risk considerations into road asset
management in investment planning and road maintenance. Increasing the coverage and climate
resilience of rural infrastructure is also one of the main objectives of Cambodia’s Rural Development
Strategy and Action Plan for 2019–2023.25

II. PROJECT DESCRIPTION

A. Project Development Objective

PDO Statement

28. The Project Development Objective (PDO) is to improve climate resilient road access to economic
and human development facilities in targeted provinces.

PDO-Level Indicators

29. The achievement of PDO is proposed to be measured through the following PDO-level indicators:

(a) Facilities with improved climate resilient road access (number, disaggregated by facility):
(i) Economic facilities: markets (number)
(ii) Human development facilities: schools (number)
(iii) Human development facilities: hospitals (number)
(b) Direct beneficiaries with reduced travel time to reach the closest facilities (number)
(c) Travel time reduction along the project-financed national and provincial roads (percentage)
(d) Project-financed assets (road and bridges) have a sustained resilience with service level
maintained under the OPBRC (percentage)
B. Project Components

30. The proposed project consists of the following components (annex 2 provides a detailed
description of project components).

Component 1: National and Provincial Roads Improvement (estimated cost US$47.0 million equivalent)

31. The component will be implemented by MPWT and includes the following subcomponents:

• Subcomponent 1.1: Improvement and Maintenance of National and Provincial Roads

(estimated cost US$44.0 million equivalent). This subcomponent will finance improvement
and maintenance of the following road sections: NR73, PR 377, PR377A, and NR7 section of
km 300–331.

25 Ministry of Rural Development. 2019. Rural Development Strategy and Action Plan 2019–2023.

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• Subcomponent 1.2: Design and Supervision Services for the National and Provincial Roads
(estimated cost US$3.0 million equivalent). This subcomponent will finance costs of
supervision and design activities of the MPWT project roads.

32. The scope of roadworks includes improving the condition, safety, and climate resilience of
national and provincial roads under the component. The roads will be improved with asphalt concrete
along the existing carriageway through periodic maintenance (NR7, NR73, and PR377A) and rehabilitation
(PR377A) works. Road shoulders will be widened and paved to improve safety for motorbikes. Adaptations
solutions will be used to enhance the climate resilience of the road infrastructure including raising flood-
prone road sections above flood levels, constructing concrete pavement in selected flood vulnerable
locations, strengthening or replacing bridges with the design structure to adapt to the changing hydrology
and flooding risks in the area, improving the capacity of drainage systems, and introducing bioengineering
solutions such as grasses and tree planting to improve road slope protection. Output- and performance-
based road contracts (OPBRCs) will be used for road improvement and maintenance works.26 The OPBRC
approach will help increase the efficiency of public financing with higher value for money through a
transfer of certain performance risks to the private sector. OPBRC will also include installation of weight
stations on project roads to strengthen enforcement of axle-load control measures and define specific
performance requirements for improved preservation of road assets, enhanced resilience to climate
events, and maintaining of road safety for traffic and also service levels during the maintenance phase.

Component 2: Rural Roads Improvement (estimated cost US$47.0 million equivalent)

33. The component will be implemented by MRD and includes the following subcomponents:

• Subcomponent 2.1: Improvement and Maintenance of Rural Roads (estimated cost

US$44.0 million equivalent). This subcomponent will support improvement and
maintenance of prioritized rural roads with climate resilience measures.

• Subcomponent 2.2: Design and Supervision Services for the Rural Roads (estimated cost
US$3.0 million equivalent). This subcomponent will finance costs of supervision and design
activities of the MRD project roads.

34. Rural roads will be upgraded from the existing earth and laterite roads to double bituminous
surface treatment (DBST) standards along the existing alignment. Roads will be upgraded with climate
resilience measures including improving the capacity of drainage systems and adaptation of bridges to
the flooding risks, introducing concrete pavements on flood-prone areas, and other resilience solutions.
Road safety will be improved by widening and sealing shoulders, where land is available, through better
marking and signage, and introducing traffic calming measures at critical locations. Rural road
prioritization for investment will be completed in the first year of project implementation. The rural road
prioritization process will be based on geospatial analysis to assess flood vulnerability of the network and
road accessibility gains and environmental and social screening. It is estimated that the component will
finance 250 km of priority rural roads through OPBRC covering both road improvement and maintenance

26The OPBRC preparation, technical design, and market outreach activities will be informed by a new TA executed by the World
Bank with support of the Public-Private Infrastructure Advisory Facility.

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and including performance requirements for improved preservation of road assets, enhanced resilience
to climate events, and also service levels during the maintenance phase.

Component 3: Institutional Development and Project Management (estimated cost US$6.0 million
equivalent)

35. This component will provide support to MPWT and MRD on institutional development and project
management. It will include the following subcomponents:

• Subcomponent 3.1: Institutional Development and Project Management Support to

MPWT (estimated cost US$3.0 million equivalent). This subcomponent will be managed by
MPWT and will support implementation of the following project activities: (a) upgrade of
the road crash database system; (b) road safety awareness activities and road safety
assessment of MPWT project roads; and (c) providing technical assistance for
implementation of road side preservation activities, updating and implementing MPWT’s
gender mainstreaming action plan, and project management support including
procurement, financial management (FM) and audits, environmental and social oversight,
overloading control, monitoring and evaluation (M&E), training, and incremental operation
costs.

• Subcomponent 3.2: Institutional Development and Project Management Support to MRD

(estimated cost US$3.0 million equivalent). This subcomponent will be managed by MRD
and will support implementation of the following project activities: (a) preparation of the
Rural Roads Accessibility Financing Strategy and support for the operationalization of the
Rural Roads Asset Management System;27 (b) road safety awareness activities and road
safety assessment of MRD project roads; (c) study on transportation services in rural areas;
and (d) providing technical assistance for implementation of road side preservation
activities, implementing the MRD’s gender mainstreaming action plan and project
management support including procurement, FM and audits, environmental and social
oversight, overloading control, M&E, training, and incremental operation costs.

Component 4: Contingent Emergency Response (US$0 million)

36. This zero-dollar component is designed to provide swift response in the event of an eligible crisis
or emergency, by enabling the RGC to request the World Bank to reallocate project funds to support
emergency response and reconstruction. Cambodia’s road infrastructure is susceptible to climate change
impacts. An Emergency Response Manual is annexed to the Project Operations Manual (POM), which
specifies implementation arrangements for the component, including its activation process, roles and
responsibilities of implementing agencies, positive list of activities that may be financed, environmental
and social aspects, and fiduciary arrangements.

27 This activity will be informed by a new TA executed by the World Bank with support of the Global Facility for Disaster Response
and Recovery.

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C. Project Beneficiaries

37. The proposed project is expected to benefit over 2 million people (about 12 percent of total
country population), predominately the rural population, across three provinces using the targeted
road network. About 50 percent of the population in the project area are women. The share of rural
population in Kampong Cham, Kratie, and Tboung Khmum Provinces is 80 percent, 81 percent, and 94
percent, respectively. Communities in the targeted provinces will benefit from improved accessibility to
crucial human development facilities, such as hospitals, emergency medical facilities, and schools,
significantly reducing the risk of connectivity disruption from increasing heavy rainfall and flooding during
the rainy season. In rural areas, the health condition of rural residents along the project roads is also
expected to improve with priority rural roads to be paved, which will reduce dust raised from the passing
traffic, thus providing better air quality for people living along the road. The population across three
provinces will benefit from both physical works that make roads safer to use and road safety awareness
programs. Road investments will be implemented through OPBRC offering long-term employment
opportunities for local communities, including women, during road improvement and maintenance
works. Institutionally, the proposed project will equip MRD and MPWT with tools and capacities to better
fulfill their mandates as road network managers. TA and capacity-building support will help MPWT and
MRD with implementation of their GMAP/GMSP and enable female professionals to be more engaged in
transport sector operations.

38. The proposed project will have a positive impact on agriculture and tourism in the targeted
provinces. Agriculture is the primary economic sector for three targeted provinces where farmers
cultivate crops for domestic and international markets, including rubber, cassava, pepper, and corn. With
a limited number of local markets, ensuring that agricultural products reach these markets is crucial for
the economic development and livelihood of local farmers. By improving road connectivity with climate-
resilient measures, the proposed project is expected to reduce the transportation cost and time and road
disruption risks for agriculture supply chains and logistics. Furthermore, the proposed project will
contribute to the further development of the tourism sector. PR377, which is currently in poor condition
and will be improved under the project, connects to one of the major tourist attractions in the Kratie
Province where many visitors travel to observe river dolphins; improving this road will provide better and
faster access to these sites and thus potentially attract a larger number of visitors.

D. Results Chain
39. Figure 8 illustrates the theory of change with links between the activities financed, outputs, short-
medium term outcomes, and expected long-term impacts.

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Figure 3. Project Results Chain and Theory of Change

Activities Outputs Outcomes Impact Long-term

▪ Design targeted NRs and PRs and
bridges with climate-resilient ▪ Project’s NRs and PRs and bridges
measures improved and rehabilitated with ✓ Critical economic (market)
climate-resilient and road safety and human development Improved transport
▪ Rehabilitate/upgrade targeted NRs
and PRs and bridges to be climate measures (schools and hospitals) connectivity and
resilient ▪ OPBRC applied to project roads facilities in the project reduced disruptions on
▪ Use OPBRC for road improvement (national and provincial) including areas are made accessible road access at the
and maintenance (MPWT roads) maintenance phase for all seasons national, provincial, and
▪ Incentivize more paid job
rural levels
opportunities for women under the
OPBRC (MPWT roads) ▪ Prioritized rural roads and ✓ Travel time reduced along
bridges improved/upgraded with the project-financed
climate-resilient and road safety national and provincial Improved resilience to
▪ Prioritize rural roads based on flood measures roads emergency events with
vulnerability and accessibility gains ▪ OPBRC applied to rural roads improved all-season
▪ Design targeted rural roads and including maintenance phase
bridges with climate-resilient ✓ People from the project access to hospitals and
measures area spend less time to Improved climate- emergency medical
▪ Rehabilitate/upgrade targeted rural ▪ Road safety audits for project reach the closest economic resilient road access to services in project area.
roads and bridges to be climate roads and human development key facilities for
resilient ▪ Road crash database system facilities
economic growth and
▪ Use OPBRC for road improvement upgraded with georeferenced
and maintenance (MRD roads) ✓ Project-financed assets
human capital Improved education
data
▪ Incentivize more paid job ▪ Road safety awareness campaign (roads and bridges) have a development in and health care
opportunities for women under conducted sustained resilience with targeted provinces outcomes in the project
OPBRC (MRD rural roads) service levels maintained area with improved
▪ GSMPs/GMAPs are up to date under the OPBRC road access to schools
▪ OPBRC provision on increasing and hospitals
▪ Prepare a Rural Roads
the share of paid jobs for female
Accessibility and Financing
for road rehabilitation and
Strategy (MRD) ✓ MRD and MPWT equipped
maintenance works Increased agricultural
▪ Provide TA to improve transport with tools to better fulfil
service in rural area (MRD) their mandate as road productivity and
▪ Upgrade road crash database ▪ Rural Roads Accessibility and network managers, tourism growth in the
system (MPWT) Financing Strategy developed including more gender project area with
▪ Conduct road safety audits and balanced reduced transportation
awareness campaigns
▪ Project management based on costs and time
▪ Provide TA to update the GMAPs ✓ People in the project area
▪ Project management support the POM, including the
Emergency Response Manual more aware of road safety
issues and practices
Include CERC under eligible situation

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E. Rationale for the World Bank Involvement and Role of Partners

40. The proposed project will build on the existing strong partnership between the World Bank and
the RGC in the road sector. The current IDA program in the road sector includes RAMP II and additional
financing to RAMP II focusing on priority sections of the core NR network and the Southeast Asia Disaster
Risk Management (SEA DRM) Project focusing on climate-resilient rural road infrastructure. The proposed
project will build on the existing partnership and improve road network connectivity covering critical
national, provincial, and rural roads in targeted provinces to support improving economic and human
development outcomes. This reinforces the World Bank’s support under the current CPF and will
contribute to the RGC’s RS4 in addressing the infrastructure gap and building resilience to support
economic and human development outcomes.

41. Considering the recent COVID-19 global outbreak, the proposed investment is highly relevant.
The rural accessibility analysis carried out by the World Bank team, as part of the project preparation,
indicates that only 32 percent of the rural population in the project area can reach referral hospitals in 30
minutes time, and floods and heavy rains severely disrupt accessibility in the project area with more than
27 percent of population losing access to referral hospitals and emergency medical services. The proposed
project will support communities in the targeted provinces with improved road accessibility to hospitals
and emergency medical services as one of the main focus areas of the project.

42. Public sector financing is the proper vehicle for financing the proposed road improvements.
While the proposed multiyear road construction and maintenance contracts will promote private sector
involvement in road improvement and maintenance through longer-term OPBRC, it is not possible to
recover costs through user charges due to affordability constraints. The project-targeted roads are public
goods with levels of traffic that cannot be used to recover investment and maintenance costs directly
through road-based tariffs.

43. The proposed project strongly supports the World Bank Group’s corporate policy commitments
related to climate change, human development, and gender. The design of the proposed project aims to
enhance climate resilience both for the road infrastructure and for users. All civil works under the project
will be designed with climate-resilient engineering solutions; both male and female users of targeted
roads will become more resilient to climatic shocks with improved access to key socioeconomic services,
such as hospitals, schools, and markets, during flooding seasons. In addition, the project will have a strong
focus on improving road safety to help reduce road crash-related fatalities and disabilities which represent
a severe deterrent to poverty alleviation and human development. On gender, the proposed project will
support women’s participation in the transport sector activities with more paid jobs and by supporting
the implementation of GMSP and GMAP in MRD and MPWT, respectively. The financing strategy for rural
accessibility will integrate climate resilience and gender inclusion among key parameters for rural road
investment prioritization.

44. The proposed project will forge a better enabling environment for private sector participation
in the road sector. Private sector participation in the road sector in Cambodia is mostly limited to road
construction works. Maintenance is primarily carried out based on force account. The proposed project
will enable private sector participation in road maintenance of national, provincial, and rural roads
through OPBRC, which will add value to improving the quality of maintenance works and will enable the
private sector to bring new techniques and approaches to existing maintenance practices. In the medium

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to long term, the project will also contribute to an increase in tax revenues collected from the boosted
agriculture and tourism development by addressing transport connectivity bottlenecks and helping unlock
private investment in these sectors.

45. The proposed project leverages existing relevant efforts from the RGC and other development
partners. The RGC has been working to improve the governance and planning of the road sector as well
as road infrastructure connectivity with support from multiple development partners. The Infrastructure
Sector Coordination Group, the main platform for donor coordination in the transport sector, will be used
for coordination of the project activities with development partners. The following programs are
particularly relevant to the proposed project, given their complementary objectives and areas of focus.28
The proposed project will leverage the existing efforts from these programs and maximize the synergy to
promote climate-resilient road connectivity in Cambodia.

(a) Asian Development Bank. ADB is supporting the RGC to rehabilitate and improve several
national, provincial, and rural roads and improve rural road asset management and
overloading control system. Ongoing projects include the Provincial Roads Improvement
Project and Road Network Improvement Project, with MPWT and the Rural Roads
Improvement Project (RRIP), and RRIP II-III with MRD.

(b) Japan International Cooperation Agency (JICA). JICA’s support to the RGC in the road sector
has been focusing on the improvement of main road corridors for international connectivity
of the country, including NR1, NR5, NR6, and construction of a number of large major
bridges. JICA, in partnership with the International Finance Corporation (IFC), has also
supported the RGC to develop a master plan for the logistics sector.

(c) German Development Bank (Kreditanstalt für Wiederaufbau, KfW). KfW has supported
MRD since 1995 to improve rural roads in 12 provinces with year-round access to social
institutions and markets through its Rural Infrastructure Program. This program measures
the ability of the targeted group to reach health facilities and improve school attendance
rates. The need for sustained maintenance and objective works prioritization is highlighted
as one of the key challenges in the rural roads sector.

(d) French Development Agency (Agence Française de Développement, AFD). AFD has
supported rural development in Cambodia since 1993 mainly through investments in
irrigation and water management with eight projects. AFD is co-financing rural road
infrastructure through partnerships with ADB and KfW.

(e) International Fund for Agricultural Development (IFAD). IFAD’s support to the RGC focuses
on the nexus of agriculture and rural development. Currently, IFAD has four active projects
in Cambodia, one of which is relevant to the proposed project—the Sustainable Assets for

28 As part of the project preparation, the road network in the targeted provinces was reviewed to identify critical national and
provincial road sections as well as a long list of priority rural roads for potential investment. The review also helped exclude from
the project scope the roads which already have confirmed financing by the Government or development partners to ensure there
is no overlap with other projects in the project area.

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Agriculture Markets, Business, and Trade Project—which finances rural roads improvement
to provide access to the agriculture value chain.

F. Lessons Learned and Reflected in the Project Design

46. The proposed project draws upon the experience of recent World Bank-funded infrastructure
projects that focus on climate-resilient connectivity in the region and from the Independent Evaluation
Group (IEG) reports. Lessons specifically applicable to the proposed project include the following:

(a) The methodology used under the proposed project in rural roads prioritization is based on
an innovative geospatial analysis rooted in the World Bank’s 2019 flagship report,
‘Lifelines: The Resilient Infrastructure Opportunity’.29 The Lifeline report recommends
putting users and services at the core of the resilience discussion and investing in resilient
infrastructure that provides reliable services to make users better withstand climate shocks
and other emergency events. The proposed project adopts this concept by prioritizing the
most critical rural roads sections that would enhance the resilience of users and their ability
to maintain the same levels of accessibility to critical facilities (schools, hospitals, and
markets) in the event of flood disruption.

(b) The proposed project balances interventions to build road resilience at both the
construction and downstream stages of the road life cycle, based on the IEG report
‘Adapting to Climate Change: Assessing the World Bank Group Experience’.30 The IEG
report recommends that when designing a project to build climate resilience, the project
team should recognize that it is not cost-effective to try to prevent all road damage through
applying the highest possible engineering standard. In comparison, more effective measures
include using performance-based contracts for long-term road maintenance and support
design and pilot implementation of emergency response systems to undertake rapid
damage repairs after a storm or flood.

(c) Experience from other countries suggests that OPBRCs can be more successful and support
sector transformation when applied with a longer time frame. The proposed project will
use the OPBRC approach to support increasing efficiency of public financing with potentially
higher value for money through a transfer of certain performance risks to the private sector.
Existing literature indicates that outsourced contracts with long durations tend to perform
better and are more likely to experience cost savings, particularly under performance-based
contracts.

(d) Market outreach is important to achieve higher participation in the OPBRC bidding
process. Experience from the Lao NR13 Improvement and Maintenance Project, which also
applies the OPBRC approach, indicates that market outreach activities help achieve high
competition and value for money in the bidding process. The proposed project includes two-

29 World Bank Group. 2019. Lifelines: The Resilient Infrastructure Opportunity.

30 World Bank Group Independent Evaluation Group. 2012. Adapting to Climate Change: Assessing the World Bank Group
Experience, Annex E: Roads.

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phase market outreach activities including one at preparation phase and another before
announcement of the tendering process.

(e) The ongoing RAMP II implemented by MPWT has piloted performance-based contracts
(PBC), which provides several lessons learned. The experience shows that continuous
capacity building on PBC/OPBRC contract management is also important to support the
implementing agencies in effective monitoring of works. Despite similar scope and
complexity of works, performance of contractors can vary and depends on competence of
the contractors’ management team. Although the technical quality of bidding documents
helps procure qualified contractors, there are always residual risks related to contractor’s
performance. To mitigate risks related to contractor’s performance, it is important to ensure
regular field monitoring, and take corrective actions on time.

(f) The midterm review of the SEA DRM Project, which is implemented by MRD, was
conducted in December 2019 and notes several lessons which are relevant to the rural
road component of the proposed project. The review highlighted that proactive oversight
of consultancies can help speed up implementation. Putting in place an effective quality
control system is important to ensure compliance with technical standards and safeguards
policies. The experience also indicates that early mobilization of procurement staff and
consultants can support prompt commencement of all procurement activities.

(g) The project's approach to mitigate GBV/violence against children (VAC) risks is based on
lessons learned from prior projects and international experience. The project will
implement a comprehensive set of activities which are built on the experience of the
ongoing RAMP II and are aligned with the recommendations of the Good Practice Note
‘Recommendations for Addressing Gender-based Violence in Investment Project Financing
involving Major Civil Works’, issued by the World Bank in September 2018.

III. IMPLEMENTATION ARRANGEMENTS

A. Institutional and Implementation Arrangements

47. The implementation arrangements for the project will follow the existing government
structure. The Ministry of Economy and Finance (MEF) is the borrower and the formal point of contact
between the RGC and the World Bank on all financial and legal matters for the credit and represents the
RGC in discussions on these matters. MRD and MPWT are the two project implementing agencies. Annex
1 provides details on the implementation arrangements for the proposed project.

48. A Project Steering Committee (PSC) will be established to provide strategic guidance to the
proposed project. The PSC will include representatives from MEF, MPWT, and MRD and will provide
strategic guidance and facilitate inter-ministerial coordination and policy discussion.

49. MRD and MPWT are responsible for their respective project components and activities,
including technical supervision; execution; and management of civil works, contracting, and direction
of all consultants. MPWT and MRD will establish their project implementation teams (PITs) comprising

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staff assigned from relevant departments and units within their respective ministry. The PITs will, for their
respective components, lead day-to-day project implementation, undertake fiduciary responsibility such
as FM and procurement, monitor project progress and conduct M&E, ensure compliance with project
social and environmental standards, prepare project reports, oversee civil works, and coordinate and
collect inputs from the relevant ministries related to their project components. Provincial departments of
MRD and MPWT will assist in dissemination campaigns, safeguard requirements monitoring, and
construction supervision, as required.

50. Project directors (PDs) at MPWT and MRD will oversee implementation of respective project
components and activities and will be supported by project managers (PMs) for day-to-day
management of activities and monitoring of progress. The PDs will be responsible for (a) overall guidance
and policy advice; (b) internal coordination, discussion, and resolution of project matters with
counterparts in other departments within MPWT and MRD and other government agencies; (c) donor
alignment and harmonization; (d) reporting on project progress to the PSC; and (e) public disclosure and
civil society involvement. The PMs will work on a full-time basis for the project and will support the PDs
in day-to-day management and monitoring of project activities.

51. Project Operations Manual. The project will be implemented following a POM, which contains
detailed information on the project implementation arrangements and processes, including procurement,
FM, disbursements, and safeguards. The POM includes an Emergency Response Manual related to
Component 4.

B. Results Monitoring and Evaluation Arrangements

52. The project M&E will be performed through the existing systems of MPWT and MRD, which will
be further strengthened under the proposed project. The PITs will prepare semiannual project progress
reports. These reports will be submitted to the MRD/MPWT for review and then the consolidated report
will be prepared by MRD/MPWT and transmitted to the World Bank. These reports will track progress in
terms of distribution of inputs, disbursement of funds, and achievement of targeted indicators as outlined
in the Results Framework. The key instrument for evaluating the project will be the indicators identified
in the Results Framework. The progress reports will also include information on compliance with
safeguards, citizen engagement, and grievance redress. Annual independent financial audits will be
carried out. A midterm review of the project will be carried out within 42 months after project
effectiveness to assess the status of project implementation, as measured against the performance
indicators. The Implementation Completion and Results Report (ICR) will be prepared within six months
after the closing date of the project.

C. Sustainability

53. The proposed project has a strong focus on the sustainability of investment and the intended
project impact by improving climate resilience of the project roads and applying the OPBRC scheme.
The project will help integrate climate adaptation measures into the road design to allow sustained road
resilience and mitigate risks of accessibility disruptions during the rainy season. The OPBRC approach will
cover road improvement and maintenance for project-financed assets (roads and bridges) thereby
lowering life cycle asset cost, with increased service quality and sustainability. Linking payments to
completed outputs during construction and performance indicators during maintenance will provide

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incentives for the contractors to better manage the transferred risks and maintain service levels for the
whole length of the contract.

54. At the sectoral level, the proposed project will support MRD to design a financing strategy for
the rural road’s network. The rural roads network is large, covering over 46,780 km, while resources are
scarce. The financing strategy will help inform policy and decision making by (a) setting a vision and targets
for achieving universal rural road accessibility in Cambodia; (b) developing a short-, medium-, and long-
term prioritization model for rural road investment and maintenance based on economic, social, and
climate change impacts; and (c) developing a financing and funding scheme to leverage resources for the
implementation of the strategy. The activity will use data from the rural roads data collection inventory
system, which is currently being implemented with the support of an ADB-financed RRIP II and will build
up on TA provided under the SEA DRM Project. It will also include TA and capacity building to support
MRD in operationalization of the Rural Roads Asset Management System.31

55. The proposed project will leverage application of information and communication technology
tools to benefit from data-driven solutions to enhance project outcomes. The geospatial analysis model
developed for the project applies the geographic information system (GIS) tool to assess and monitor
accessibility improvements under the project. The Road Care mobile application, which was rolled out by
MPWT for the road network across the country, will be used to encourage citizens’ participation in post-
construction road condition monitoring to inform the maintenance work under OPBRC and integrate
beneficiary feedback during the maintenance phase.32 Upgrade of the road accident and crash database,
one of activities under the proposed project, will use modern data application enabling geospatially
recording and analyses of road crashes to support evidence-based road safety analysis and policy making.
Regarding monitoring of road improvement works, supervision consultants will be required to carry out
geotagging of field activities supported by pictures and data points in real/near real time, aggregated
through online management dashboards, which will improve evidence-based monitoring.

IV. PROJECT APPRAISAL SUMMARY

A. Technical

56. The design of the project builds on a network connectivity approach to improve climate-
resilient road accessibility in rural areas, between rural areas and urban centers, and the main corridor
in the targeted provinces. The scope of road improvement works therefore includes two-level
interventions. The first intervention is to improve critical sections of the national and provincial roads
(Component 1) along the identified road network which connect the provincial and rural population to
core road network, urban centers, and main economic centers in the country. These road sections are the
responsibility of MPWT. The second intervention is to improve rural road accessibility in the identified
network (Component 2), which is the responsibility of MRD, by focusing on priority rural roads to
maximize the social and economic benefits and optimally use the limited resources.

31 The Road Asset Management System for the core network managed by MPWT is being upgraded under the ongoing IDA-
financed RAMP II.
32 Road Care Mobile App was launched by MPWT in December 2018 which enables citizens to report road damages or potholes

across the country directly to MPWT using the app.

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57. A robust prioritization methodology was designed, which combines a geospatial analysis with
environmental and social screening for the selection of rural roads for investment. This includes
considering economic and social impacts on the accessibility to markets, schools, and hospitals as well as
the climate change and flood vulnerability of roads. The prioritization process includes the following four
steps and will be completed during the first year of the project with support from the design consultants:

(a) Initial screening. This initial step includes (i) mapping all rural roads in the selected districts
and (ii) grouping roads into three categories—recently improved (last two to three years),
roads which have earmarked financing (to be improved by other investments), and (iii)
remaining network for potential investment consideration.

(b) Geospatial analysis for rural accessibility and resilience assessment. The analysis will help
assess the rural accessibility and climate resilience impact of the proposed investment based
on a geospatial analysis model (annex 4). It has analyzed the initial long list of roads in the
project area. The approach uses an innovative geospatial analysis tool to visualize rural
accessibility and climate resilience gains from the proposed interventions, such as the
improved access to hospitals and emergency medical services, markets, schools, as well as
reduced disruptions caused by floods to inform the evidence-based decision-making process
(figure 9).

(c) Environmental and social screening. This step will further screen the list of identified roads
to ensure that the proposed investment does not cause major negative environmental and
social impacts and maximizes development gains for the beneficiaries.

(d) Priority list for investment. Based on the abovementioned three steps, a final short list of
lifeline roads (250–300 km) will be identified which are eligible for investment, with a
balanced representation of the targeted provinces.

Figure 4. Rural Roads Prioritization Using Rural Accessibility and Resilience Analysis

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58. Overall scope of works. Roadworks will support improving the condition, climate resilience, and
safety of road infrastructure. The project roads will be improved along the existing carriageway with
limited widening of shoulders, where land is available, to improve road safety for motorbikes and reduce
congestion. The prioritized rural roads will be paved with DBST or concrete in the flood-prone areas.
Among the NR and PR sections, NR7 and NR73 improvement works will be mostly periodic maintenance
with replacement of the asphalt concrete overlay, strengthening of pavement on limited number of
damaged locations, strengthening of the existing bridges, and improvement and replacement of drainage
systems. The PR377 and PR377A improvement works will be full rehabilitation considering the extremely
poor condition of the roads.

59. Climate change risks and adaptation. A screening of the proposed project for short- and long-
term climate change and disaster risks was undertaken using the World Bank Climate and Disaster Risk
Screening Tool. The primary climate and disaster risks that the targeted project roads are exposed to are
extreme rainfalls and flooding. Road disruption risks caused by river bank erosion and heat waves are also
identified but are medium. The proposed project is designed with the aim of addressing climate change-
induced risks to targeted roads as a core objective. The engineering design of the roadworks will be based
on the risk screening, along with more a detailed hydrology and vulnerability assessment to be conducted
during the design phase.

60. Under the project, resilience measures to be introduced that target the primary climate risk—
flooding—may include (a) raising road embankment in flood vulnerable locations; (b) improving bridges
and other road structures to adapt to the changing hydrology and projected flooding intensity in the area;
(c) overlaying vulnerable road sections with resilient pavement materials (for example, cement concrete
and lime stabilization) to withstand heavy rains and heat waves; (d) improving the drainage system with
additional larger culverts, appropriate inlet-outlet of culverts, and side ditches; and (e) introducing
bioengineering solutions as much as possible for slope protection. The technical design will ensure that
the identified measures reduce transportation costs and flooding risks and achieve the target of creating
durable access to the main road network, markets, and services for the rural population.

61. Importantly, the resilience measures introduced by the project will be sustained through
maintenance under OPBRC, which will include a set of key performance indicators that specifically
measure maintenance requirements related to climate and disaster resilience.

62. Road safety. The Road Safety Screening and Appraisal Tool (RSSAT) was applied to assess the road
safety impact of the proposed project. The project safety impact (PSI) score33 for the national and
provincial roads indicates positive road safety impact of the project. Thus, while the project will improve
driving conditions and reduce travel time, it will not materially contribute to worsening the road safety
situation considering the safety measures and improvements included under the project. Rural roads
under the project will be also assessed using RSSAT once their selection is completed.

63. The proposed project uses a comprehensive approach to road safety. Experience from other
projects indicates that road safety measures are more effective when they cover both physical and social

33PSI is one of the outcome metrics calculated by the RSSAT software representing the ratio of expected crash fatalities with
project design over current fatalities on the road segment. For instance, a PSI score of 0.8 indicates that project design will have
an expected 20 percent decrease in fatalities compared to current situation.

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evidence-based measures. Physical features include enhanced measures to safeguard pedestrians’ safety,
including for women and children from local communities who use roads to travel to and from schools,
markets, and hospitals. In addition, the project will support safety measures to improve and pave road
shoulders for motorcycles, which account for 75 percent of road fatalities in Cambodia. The technical
design will incorporate recommendations of the road safety audit and public feedback provided by
residents during consultations. To ensure sustainability, traffic safety aspects will be embedded in the
performance criteria and service levels under OPBRC. To complement the physical measures, the project
will also support implementation of social measures focusing on communication and awareness raising
on road safety. Institutionally, the project will support the upgrade of a road crash database to enable
data collection, verification, and analysis for evidence-informed decision making.

64. Output- and performance-based road contracts. The proposed project is expected to
demonstrate ways to improve efficiency in road investment and maintenance in which part of the road
design, improvement, and maintenance risks is transferred to contractors under OPBRC. Payments based
on outputs and performance indicators will incentivize contractors for long-term engagement beyond
road improvement, at their own risk, during the maintenance period, and will thereby help reduce the
risk of poor construction as well as ineffective maintenance. Therefore, the sector will benefit in the long
term from lower life cycle cost and improved quality and sustainability of the investment. The main
features of the OPBRC structure in the project are summarized as follows:

(a) To mitigate risks related to performance of the contractor, the bidding documents and
contract will specify a financing structure in which a share of construction cost will be
financed by the contractor. This deferred payment34 will be refunded to the contractor
during the post-construction maintenance phase subject to compliance with set minimum
performance requirements. Such a contract structure will strengthen the incentive for better
performance throughout the OPBRC cycle.

(b) Bidders will be assessed on their technical and financial proposals. For the MPWT
component, the bidding documents will include a conceptual design for road improvement
works and the contractor will be required to prepare the detailed design after contract
award. For the MRD component, bidding documents will include detailed design. The project
will support installation of weight stations at critical locations of the targeted road network
to strengthen axle-load control and reduce risks related to truck overloading during the
maintenance period. The proposed OPBRC model covers the design, build, maintenance, and
transfer of roads by enabling greater participation of the private sector and efficient
allocation of risks for higher quality services.

(c) The payments to the contractors for road improvement works will be based on completion
of milestones according to defined performance criteria. During the maintenance phase, the
contractors will receive quarterly payments, including deferred amount of road
improvement works based on achievement of service-level performance requirements. The

34The share of a deferred payment will vary between 10 percent and 20 percent based on technical complexity of bidding
packages with higher share for more complex packages.

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performance milestones for road construction and service-level requirements for the
maintenance will be specified in the bidding documents.

(d) The project will finance road improvement and maintenance costs which are incurred during
the project implementation period. The OPBRC period will be aligned with the project
implementation period to mitigate potential uncertainties associated with the payment
obligations to contractors over the contract period.

65. The OPBRC packaging will consider several factors to ensure higher competition in the bidding
process, attract qualified international and local bidders, and enhance participation of the local
construction industry. For the MPWT roads, it is expected that each bidding package will include one of
three project roads (NR7, NR73, and PR377-377A) under Component 1. For the MRD roads, each bidding
package will cover one of three project provinces and each package will include multiple lots. The number
of lots on each rural road package will be decided after the selection of rural roads based on technical and
efficiency considerations. This approach will make the bidding packages attractive to qualified
international and local contractors and achieve higher value for money from the tendering process. It will
also support greater engagement of the local industry, particularly on rural roads works as their scope and
technical requirements are not complex compared to national and provincial roads.

B. Economic Analysis

66. The economic analysis was conducted based on a standard methodology applied for appraisal
of roadworks, which demonstrates the overall economic internal rate of return (EIRR) of 34.8 percent
and net present value (NPV) of US$130.8 million. The economic evaluation focuses on the two major
components: (a) national and provincial roads improvement (with asphalt concrete) and (b) rural roads
improvement (with DBST). The annual estimated maintenance cost was included in the assessment. A
cost-benefit analysis (CBA) was conducted to calculate EIRR and NPV of the project covering a period of
20 years (2020–2040). The discount rate is assumed at 10 percent. The major economic benefits of the
project arise from (a) reduced vehicle operating costs (VOCs), (b) travel time savings, and (c) avoided
emergency maintenance costs in the without-project scenario. The project cost which would occur under
OPBRC without additional concessional financing is assumed with the standard conversion factor of 0.90.

67. For national and provincial roads, the analysis uses a Highway Development and Management-4
(HDM-4) model (based on latest data from MPWT) to calculate the VOCs under different levels of road
condition to determine VOC savings. The time savings are calculated from improving average speed. For
rural roads, it is assumed that the DBST treatment will improve vehicle operations and save VOC by
US$0.023 per vehicle-km on average. The time savings for rural roads are calculated based on the
geospatial analysis, which estimated numbers of people with improved access (in terms of travel time
saved and reduced accessibility disruption) to schools, hospitals, and markets. The emergency
maintenance cost savings for all roads are calculated based on the actual costs associated with each type
of road and a probabilistic average of severe floods occurring once every three years and that about 30
percent of the emergency maintenance could be avoided because of the project. A sensitivity analysis was
also performed to assess the rebatement of economic benefits in different cost increase and traffic
variation scenarios (table 3).

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Table 3. CBA Results and Sensitivity Analysis

Component 1 Component 2 Total
Scenarios EIRR NPV (US$, EIRR NPV (US$, EIRR NPV (US$,
(%) millions) (%) millions) (%) millions)
Base case 44.9 108.00 24.1 22.80 34.8 130.80
Maintenance cost increases by 20% 44.2 104.51 24.0 22.34 34.4 126.85
Construction cost increases by 20% 38.9 103.20 18.8 16.21 29.6 119.41
Both construction and maintenance 38.3 99.70 18.7 15.75 29.2 115.46
costs increase by 20%
Traffic is 20% lower than expected 37.1 78.84 23.8 22.25 30.7 101.08
Both construction and maintenance 31.4 70.54 18.4 15.20 25.4 85.74
costs increase by 20% and traffic is 20%
lower than expected

68. A separate road safety impact appraisal was conducted using the World Bank’s Road Safety
Screening and Appraisal Tool (RSSAT). The project is expected to help prevent approximately 6 fatalities
and 60 serious injuries per year through road infrastructure enhancements under Component 1.35 The
overall road safety benefits are estimated to be over US$30 million during the roads life cycle of 20 years.

69. A Value-for-Money assessment was also conducted to compare between the project’s OPBRC
approach and the traditional input-based road improvement approach. OPBRC ensures a longer life cycle
of investment and lower emergency maintenance costs, resulting in higher economic return for the
investment. Table 4 compares EIRR of the two approaches.

Table 4. Value-for-Money Comparison between OPBRC and Traditional Input-Based Road Contracts (%)

Road Section NR7 NR73 PR377 PR377A

EIRR
OPBRC 43.8 38.8 50.9 33.2
Traditional input-based contract 37.3 30.7 47.6 23.1

70. Greenhouse gas (GHG) emissions. An analysis of GHG emissions was undertaken based on fuel
consumption rates at different speeds under with-project and without-project scenarios. Without the
project, the deteriorated condition of the roads limits vehicle speed and leads to higher fuel consumption
per vehicle-km compared to the with-project scenario. With the project, improved road condition leads
to improved speed and hence lower fuel consumption. Gross GHG emission in the with-project scenario
is 2,736,454 tCO2e. Total net GHG emission is estimated to be −54,513 tCO2e—a net reduction over the
evaluation period (20 years). The annual average net GHG emission is −2,733 tCO2e per year. The social
benefit from GHG reduction is estimated to be US$3.17 million, based on social cost of emission reduction
from the World Bank’s Guidance Note on Shadow Price of Carbon in Economic Analysis (2017).

35 The RSSAT tool will be used for Component 2 also once selection of rural roads for investment is completed.

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C. Fiduciary

Financial Management

71. The FM assessment of the proposed project was carried out according to the World Bank Policy
and World Bank Directive: Investment Project Financing dated October 1, 2018. The overall FM
arrangements are considered adequate and meet the World Bank’s minimum FM requirements under the
above referred policy and directive. The project will be implemented by MPWT and MRD and the project
FM arrangements will be embedded into the existing structures of the two ministries. The Department of
Finance in MPWT and Department of Finance and Supply in MRD will have overall responsibility for the
project FM and disbursements for the respective MPWT and MRD project activities. MPWT and MRD have
considerable experience in managing donor-funded projects. Currently, both ministries are managing
World Bank-funded projects. The FM risk is rated Substantial and agreed mitigating measures include FM
training and capacity building for the respective staff and units of MPWT and MRD, hiring financial
management consultants, compliance with the detailed FM requirements and procedures determined in
the POM and involving internal audit of implementing agencies and external audit for the project to
ensure that the project internal control systems are operating satisfactorily.

72. The annual work plan and budget will be prepared according to the Standard Operation
Procedures (SOP) and submitted to the MEF and World Bank for review and approval. The Designated
Accounts (DAs) will be opened at the National Bank of Cambodia by MPWT and MRD. Each project
implementing agency is required to maintain adequate FM systems that are acceptable to the World Bank,
which will enable generation of the required periodic financial statements. A six-month interim unaudited
financial report (IFR) will be furnished to the World Bank by each implementing agency no later than 45
days after the end of each calendar semester. The project will use the electronic delivery of withdrawal
of funds from the World Bank along with the supporting documents (that is, statement of expenditure)
and will follow the disbursement methods outlined in the additional instructions of the Disbursement and
Financial Information Letter.

73. The project’s financial statements will be audited annually by an external audit company
acceptable to the World Bank. Each audit will cover one calendar year and the audit report for each year
shall be submitted to the World Bank not later than six months after the end of each calendar year. The
audited financial statements ‘Consolidated Financial Statements’ will be subject to public disclosure in
accordance with the World Bank’s Policy on Access to Information. FM support will be provided to the
project in the form of implementation support missions (twice per year) to review the adequacy of the
FM arrangements, FM performance and capacity-building strengthening, budgeting, IFR submission, and
implementation of auditor’s recommendations.

Procurement

74. Procurement under the project will be carried out in accordance with World Bank Procurement
Regulations for IPF Borrowers dated July 1, 2016, revised November 2017 and August 2018, and provisions
stipulated in the Financing Agreement. The approaches to national markets (National Procurement and
Request for Quotations) will be carried out in accordance with the Kingdom of Cambodia’s Updated
Standard Operating Procedures and Procurement Manual for All Externally Financed Projects/Programs
(‘Procurement Manual’), promulgated through the Sub-Decree No. 181 ANK. BK, dated December 2, 2019,

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subject to the additional provisions included in the Procurement Plan. The World Bank planning and
tracking system, Systematic Tracking of Exchanges in Procurement (STEP), will be used to prepare, clear,
and update Procurement Plans and conduct all procurement transactions for the project.

75. MPWT and MRD will be the implementing agencies for the project. The procurement activities
will be undertaken by the Procurement Units (PUs) of MPWT and MRD. The World Bank has carried out
capacity assessment and procurement risk assessment of the implementing agencies. Based on the
assessment, the overall procurement risk assessment is rated Substantial. Details of identified key risks
and corresponding mitigation measures are presented in annex 1.

76. The Borrower, with the support of the World Bank’s task team, has prepared a Project
Procurement Strategy for Development (PPSD) to inform fit-for-purpose procurement arrangements in
the Procurement Plan. The PPSD has been reviewed by the World Bank and finalized. International
competitive market approach will be used for major procurements and selection of consultants involving
international competition will be carried out in accordance with Procurement Regulations for IPF
Borrowers. National market approaches will be carried out in accordance with the national regulations of
the Kingdom of Cambodia’s Updated Standard Operating Procedures and Procurement Manual for All
Externally Financed Projects/Programs (‘Procurement Manual’), promulgated through the Sub-Decree 74
dated May 22, 2012, which was issued pursuant to Article 3 of the Kingdom of Cambodia’s Law on Public
Procurement dated January 14, 2012, subject to the additional provisions included in the Procurement
Plan.

77. Based on the findings and recommendations of the PPSD, the initial 18-month Procurement Plan
has been prepared. The Procurement Plan will be entered in STEP and updated annually (or as needed)
by MEF, MPWT, and MRD to (a) reflect project implementation, (b) accommodate changes that should be
made, and (c) add new packages as needed for the project. The Procurement Plan and any updates or
modifications shall be subject to World Bank’s prior review and no objection. The World Bank will carry
out procurement post reviews on an annual basis with an initial sampling rate of 20 percent, which will
be adjusted periodically during project implementation based on the performance of the project. The
detailed Procurement Plan is available in a separate project document.

. D. Legal Operational Policies

.
Triggered?
Projects on International Waterways OP 7.50 No
Projects in Disputed Areas OP 7.60 No
.

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E. Environmental and Social

78. The proposed project is subject to the World Bank’s Environmental and Social Framework (ESF).
Nine Environmental and Social Standards (ESSs), including ESSs 1–8 and ESS 1036, are relevant to the
proposed project. The requirements of these ESSs are addressed through the ESF instruments, as
described in the following paragraphs.

79. The project’s overall environmental risk is rated Substantial. The project will support
improvement and maintenance of selected roads in the provinces of Kampong Cham, Kratie, and Tboung
Khmum. The road improvement works will involve periodic maintenance and rehabilitation along the
existing carriageway; limited widening of shoulders, where land is available, to improve road safety for
motorbikes; paving of priority rural roads to improve all-season road access; and improvement of the
roads structure to climate-resilient standards (raising flood-prone sections and reconstruction of bridges
and culverts, for example). The anticipated adverse environmental and social impacts of the project
activities, which are expected to occur in the context of overall complexity and diversity of locations,
include those associated primarily with labor influx; dust; noise; vehicle emissions; disturbance to daily
business activities; generation of construction wastes; and other forms of pollution from construction,
drainage blockage/flooding, occupational health and safety, use of materials and resources, traffic
interruption, removal of vegetation, and increased traffic flow and speed during operations. However, all
these are temporary, localized, and reversible.

80. Under Component 1, the proposed NR and PR sections are not cutting through or located within
natural and/or critical natural habitats. In the province of Kratie, a segment of PR377 runs parallel to the
Mekong River dolphin observation site. The environmental and social due diligence carried out by MPWT
concluded that no adverse impacts are anticipated with respect to the dolphin site because there will be
no widening along the riverbank. All works will be within the established carriageway, and the detailed
technical design will duly incorporate findings and specific mitigation measures determined under the
respective Environmental and Social Management Plan (ESMP) for PR377 and PR377A. The impacts on
the other sections (NR73 and NR7) are also those related to the construction activities (generation of
construction wastes, noise, dust, temporary disturbance to neighbor communities) and are considered by
site-specific ESMPs accordingly.

81. For Component 2, the selection of rural roads will be completed during project implementation.
The prioritization process will ensure that roads which provide access to protected areas, may cause
deforestation, and may require significant resettlement are excluded. The Environmental and Social
Management Framework (ESMF) establishes mechanisms for environmental and social screening and
preparation of the ESMPs for each rural road identified throughout project implementation. The ESMF
incorporates an Environmental and Social Code of Practice, which sets out standardized, detailed, and
technically feasible measures to address potential adverse effects of lower-risk activities.

36ESS1: Assessment and Management of Environmental and Social Risks and Impacts; ESS2: Labor and Working Conditions; ESS3:
Resource Efficiency and Pollution Prevention and Management; ESS4: Community Health and Safety; ESS5: Land Acquisition,
Restrictions on Land Use and Involuntary Resettlement; ESS6: Biodiversity Conservation and Sustainable Management of Living
Natural Resources; ESS7: Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Local Communities; ESS8:
Cultural Heritage; and ESS10: Stakeholder Engagement and Information Disclosure

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82. The proposed project is anticipated to bring significant social benefits to the communities,
including reducing the travel time to reach schools and health and other public service centers, expanding
access to markets and work opportunities, enhancing connectivity during the rainy season, improving road
safety, and improving air quality with paved roads which will reduce dust dispersion from unpaved road
surfaces. While social risks and impacts are expected to be substantial related to roadworks, direct and
indirect social risks associated with rehabilitation and improvement of the existing national, provincial,
and rural roads are expected to be mostly temporary, predictable, and avoidable. Although no physical
displacement will be required, the potential social risks and impacts are likely to result from a small
number of roadside vendors and fences of houses/farms encroaching the right of way, which will have to
be partially economically displaced; temporary labor influx of workers in low-density areas; and risk of
child labor. In some project locations, there is the likely presence of ethnic minorities (indigenous
peoples). Based on the social risks and impacts screened during project preparation, the implementing
agencies have prepared a Stakeholder Engagement Plan (SEP) and a Grievance Redress Mechanism
(GRM). For Component 1 (MPWT), because the project road sections are known, a Resettlement Plan (RP)
has been prepared. A significant part of resettlement impacts is avoided or minimized through the road
technical design. No indigenous peoples are present in the project areas of Component 1 (MPWT roads).
For Component 2 (MRD roads), because the selection of rural roads will be completed during the first year
of project implementation, an Indigenous Peoples Policy Framework (IPPF) and a Resettlement Policy
Framework (RPF) have been prepared. The anticipated social impacts will also be addressed in an
integrated way under the section-specific ESMPs for Component 1 activities and under the ESMF for
Component 2 activities.

83. The Environmental and Social Commitment Plan (ESCP) summarizes specific actions that the
borrower will take in the course of project implementation and within a determined time frame to address
the environmental and social risks of the project in accordance with the requirements of all relevant ESSs.
The public consultation process on the ESF instruments was carried out from December 2019 through
early April 2020. All ESF instruments, together with the ESCP and SEP (including GRM) were disclosed on
the World Bank external website – the ESMF, IPPF, RPF and RP on March 21, 2020; the ESCP on March
23, 2020; and the ESMPs and SEP on April 6, 2020
(http://documents.worldbank.org/curated/en/docsearch/projects/P169930). Prior to their disclosures on
the World Bank’s website, the ESF instruments were disclosed on the website of MRD on March 12, 2020
and on the website of MPWT on March 16 and April 6, 2020 (MRD: https://www.mrd.gov.kh/crcip; and
MPWT: http://rcip.mpwt.gov.kh/safeguards).

84. Implementing agencies have significant experience with the implementation of the World Bank’s
safeguards policies through a number of projects implemented during the last years and currently, with
an improving track record on safeguards compliance and in-house expertise of Environmental and Social
Offices (ESOs) in both ministries. However, the designated environmental and social safeguard officers of
both ministries are based in the capital city, with no staff assigned at the provincial or district levels. For
the project and to build internal capacity, MPWT and MRD will assign additional environmental and
social/gender staff to their ESOs. Specific institutional capacity strengthening needs and measures have
been identified, specified in the ESCP, and supported under the project.

85. Citizen engagement. The SEP aims to ensure that project communities, as well as other project
stakeholders, are informed and involved in all the stages of project preparation and implementation. The
project will support the beneficiaries’ participation and feedback throughout implementation. The Road

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Care mobile application, which was rolled out by MPWT for the road network across the country, will be
used to encourage citizens’ participation in post-construction road condition monitoring to inform the
maintenance work under OPBRC and integrate beneficiary feedback during road maintenance. The
integration of sustainable citizen engagement processes will include communication and outreach,
participatory planning, community monitoring, and consultations with direct beneficiaries. The outreach
and consultations will provide space to explain to communities the project activities, related risks such as
GBV, and the GRM. The project will actively seek for feedback from the direct beneficiaries on improved
road condition and access to key facilities using a beneficiary satisfaction survey as part of the Results
Framework. The project will also track grievances and provide to the World Bank a quarterly report on
project grievances received with gender-disaggregated data and information on how grievances were
addressed. Consultations with local communities and stakeholders will continue throughout the
implementation of the project to ensure communities are adequately informed and their needs, including
women and youth, are addressed.

F. Gender

86. A gender analysis for the proposed project was carried out to inform the project design. The
analysis was based on field data collection and community consultations carried out in May 2019, followed
by collection of secondary data and discussions with the implementing agencies and stakeholders in July–
December 2019. The review benefited from a set of guiding principles, including alignment to the
government policy and priorities and the World Bank Guidance Note on Mainstreaming Gender in Road
Transport,37 and building on experience of ongoing projects financed by the World Bank and other
development partners in the transport sector. The main findings of the gender gap analysis and proposed
gender actions are summarized in the following paragraphs.

87. Assessment of downstream impact of climate-resilient road improvements on women’s

mobility in rural areas. Community consultations have indicated strong support on road improvement as
impacts are expected to be significant for rural women. A summary of field interviews is provided in box
1. The review indicates high potential impact of improved rural roads to economic and social well-being
of women in the project area. The project will support implementation of gender and social impact
analysis as part of the consultancy services for the design of rural roads to develop survey instruments
and collect gender-disaggregated data related to improved accessibility and livelihood opportunities
derived from the project. The survey will be repeated at project completion to assess the impact of the
project on the rural population in the project area, including women and female-headed households.

Box 1. Summary of Field Interviews as Part of the Gender Gap Analysis

As part of the gender gap analysis, field interviews were conducted in May 2019 with 135 respondents from six
communes in three project provinces. Discussions focused on a wide range of issues affecting women, related to
roads and transportation including access to education, health care and markets, employment and income
generation opportunities, road safety, and risks related to GBV.
The findings indicate that rural women heavily depend on road transport in the project area. During the rainy
season, traveling becomes more difficult as roads are muddy and slippery and sometimes access is impossible

37 World Bank. 2010. Mainstreaming Gender in Road Transport: Operational Guidance for World Bank Staff. Transport Paper
Series, TP-28.

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due to floods. During the dry season, the roads are also difficult to navigate due to potholes and excessive dust
from earth roads affects health of women and men in communities.
Some women reported that with road improvement they could travel to health centers for regular antenatal and
health check-ups. Examples were given of pregnant women who could not reach the health center on time to
deliver their babies. Some transportation owners hesitate to provide transport to pregnant women due to the
risks related to difficult road condition. A community at Srak commune in Kampong Cham Province reported that
in late 2018 and early 2019, three pregnant women gave birth on the way to health center. Some other women
and their families decided to go to private health facilities in their localities despite the much higher cost.
Difficult roads cause late arrival at school, absenteeism, and dropouts. Women and men in the community as well
as high school teachers and students reported that some high school students drop out of school (more girls than
boys) because of the difficult road conditions, distance, safety, and security on the road. In Lapeak village in
Kampong Cham Province, due to bad road condition and distance to travel to school every day, some students
rent a house close to their school, increasing their family’s financial burden. Parents are also concerned about
their daughters’ security and safety when they live away from home. The community gender consultations also
revealed that there are concerns about the GBV risks for female students traveling to school along the road,
suggesting a need for increased GBV awareness and prevention in the communities.
Women are increasingly involved in commercially oriented agricultural production particularly in horticulture
value chains, in both wholesale and retail marketing. They are involved as collectors and/or traders and are the
principal retail sellers, working in markets. Thus, women need to travel to the fields to harvest crops and to
markets for purchasing inputs and selling their produce. Many women explained that prices of their crops at
farmgate are much lower than markets, sometimes up to 50 percent due to high transportation costs.
Transportation is particularly hard during the rainy season, when women report having to depend on male drivers
for transportation as the roads are too difficult to navigate alone. Women, particularly from poor families,
indicated interest in paid roadworks to generate income.

88. Support to gender-responsive strategies and institutional capacity. MRD has an updated GMSP
covering 2019–2023. MPWT is updating its GMAP. These documents provide the framework for the two
ministries and overall road sector in implementing gender-responsive policies and actions, including
increasing employment opportunities for women in the medium- and high-skilled jobs sector. While MRD
and MPWT have adopted good practices to mainstream gender actions to their sectoral mandates, the
implementation remains challenging due to limited capacity and resources. Thus, it is important that
MPWT and MRD continue progressing on implementation of GMAP/GMSP and their Gender
Mainstreaming Action Groups strengthen the implementation and monitoring capacity. The proposed
project will include budget to support MPWT and MRD to enhance their capacity and provide demand-
driven support, including consultancy services and training, for the update, implementation, and
monitoring of GMAP/GMSP adopted by MPWT and MRD.

89. Employment opportunities for women in OPBRC jobs. Growth in employment in the construction
sector, as noted earlier, has been the lowest for women across sectors, and women are underrepresented
in the road industry works. Despite the growth of the wage employment share of women in the
construction industry from 2.1 percent to 5 percent between 2011 and 2016, it is still disproportionally
lower than that of men—25 percent of men are working in construction.38 The ongoing projects financed
by the World Bank39 and ADB40 set targets for employment of women in roadworks to encourage

38 World Bank. 2019. Gender Analysis of the Cambodian Labor Market.

39 World Bank. Road Asset Management Project II.
40 ADB. Provincial Road Improvement Project.

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contractors to employ and train women, which provides job opportunities for women from local
communities, particularly the poor. This will be continued under the proposed project. The road
improvement works through OPBRC create long-term paid job opportunities and additional incentives for
local women in the project area. The OPBRC bidding documents will explicitly request nondiscrimination
in the recruitment of qualified applicants, equal pay for equal work at all levels for men and women, and
measures on protection from GBV and harassment in the workplace. The Results Framework sets a
minimum target on share of employment of women in OPBRC based on the experience from ongoing
projects.

90. Road safety awareness activities to target men as high-risk group. Data on road crashes show
that men are disproportionately involved in road accidents resulting in death (80 percent) or serious
injuries. The project will include a budget for road safety awareness measures and campaigns in the
project area. Road safety awareness-raising activities will be differentiated by age group and gender with
increased attention on participation of men as the high-risk group. Engagement of local civil society
organizations in road safety awareness measures and campaigns will be considered to support broader
community-based engagement for sustainability of the activities. The project will also finance
implementation of a study on safe transportation options in rural areas focusing on transportation
services to schools and markets, which are critical for women and girls particularly from the safety
perspective, by exploring community-based arrangements and public-private partnership schemes.

91. GBV risks mitigation. The project was screened for the project-induced GBV impacts using the
World Bank’s ‘GBV Risk Assessment Tool’ and was classified within the ‘Moderate Risk’ category. Project
activities are likely to cause labor influx, both foreign and national, and introduce or increase salaried
labor. This has the potential to shift community power dynamics, increasing risks of GBV and VAC in local
communities requiring effective mitigation measures. The potential for workplace sexual harassment can
also be a deterrent to women seeking employment in roadworks. To address project-induced GBV risks,
the project will implement GBV/VAC actions as detailed in annex 5. The actions will build on the
experience under the ongoing RAMP II and will align with the recommendations of the World Bank’s Good
Practice Note ‘Recommendations for Addressing Gender-based Violence in Investment Project Financing
Involving Major Civil Works’. Principles and guidelines for contractor codes of conduct and management
of worker health and safety will be incorporated in the bidding documents and will be monitored by the
supervision consultant during the execution of works.

V. GRIEVANCE REDRESS SERVICES

92. Communities and individuals who believe that they are adversely affected by a World Bank
supported project may submit complaints to existing project-level grievance redress mechanisms or the
World Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly
reviewed in order to address project-related concerns. Project affected communities and individuals may
submit their complaint to the World Bank’s independent Inspection Panel which determines whether
harm occurred, or could occur, as a result of World Bank non-compliance with its policies and procedures.
Complaints may be submitted at any time after concerns have been brought directly to the World Bank's
attention, and World Bank Management has been given an opportunity to respond. For information on
how to submit complaints to the World Bank’s corporate Grievance Redress Service (GRS), please visit
http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service.

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For information on how to submit complaints to the World Bank Inspection Panel, please visit
www.inspectionpanel.org.

VI. KEY RISKS

93. The overall project risk is rated Substantial, as summarized in the following paragraphs.

94. Political and governance. Political and governance risk is considered Substantial. Development
of the transport infrastructure is one of the strategic priorities of the RGC and it has strong political
support. While the political situation does not have a direct impact on the project, there are risks related
to governance and accountability. Despite evolving favorable policy and a regulatory framework,
infrastructure investments are prone to the risks of corruption. The proposed project will fully comply
with the fiduciary policies and guidelines of the World Bank. Implementation support will support
monitoring of compliance with the World Bank’s requirements and provide capacity building and trainings
to the implementing agencies. Additionally, the component on project management will support capacity
building and enable fielding international and local consultants based on demand.

95. Institutional capacity for implementation and sustainability. Institutional capacity and
sustainability risks are Substantial. Implementation of the project by two ministries adds on risks requiring
close coordination between MPWT and MRD. This will be mitigated by the establishment of a Project
Steering Committee (PSC) comprising MEF, MPWT, and MRD representatives to provide strategic
guidance and facilitate inter-ministerial coordination on project implementation issues. The proposed
project will use the existing government structure which will deploy staff of related departments of the
two ministries to cover all project aspects, including engineering, procurement, and contract
management; FM; environment; social and gender; road safety; and M&E. The use of the government
structure will also support sustainability of the project outcomes by integrating the project
implementation to the existing institutional setup of MPWT and MRD from the outset of the project. The
OPBRC approach covering both to be used for road improvement and maintenance will also enhance
project sustainability. However, there are risks related to the capacity to manage OPBRC. This risk will be
addressed in the short term through the support of the supervision consultant and over the medium to
longer term through the capacity development of MPWT and MRD.

96. Fiduciary. Integrated fiduciary risk is rated Substantial due to the inherent risks embeded to the
institutional and internal control environment. There are weaknesses in the control environment,
including implementing capacities and perceived governance risks on fiduciary responsibilities. MPWT and
MRD—two implementing agencies—have experience in managing the World Bank-financed projects
through the project implementation units which rely on assistance of local fiduciary consultants. Fiduciary
capacity and compliance with the World Bank’s FM and procurement requirements needs to be
strengthened as delays were observed in procurement, payments to contractors, and disbursements
under the ongoing projects managed by both ministries. The OPBRC terms may also result in delays if the
accountants are not familarized with this type of contract. The mitigating measures include capacity
building on FM and procurement and contract management by the World Bank team to the PITs; support
by consultants to be contracted by MPWT and MRD, detailed guidance on procurement and FM in the
POM; and an external audit recruited by MEF with extended scope to provide assurance on the project
financial statements, compliance, and performance. With the recent global outbreak of COVID-19, the risk

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of delays in procurement is increasingly high given the COVID-19’s impact to the global supply chain and
the subsequent constraints to the movement of goods, services, and workforces.

97. Environment. The overall environmental risks and impacts are assessed as Substantial which take
into account ESO staff availability and high staff turnover rate. Potential negative environmental impacts
from roadworks include (a) possible erosion and run off to water bodies during earthworks; (b)
occupational and community health and safety including temporary traffic blockages and traffic safety;
(c) the possibility of cutting trees/branches; (d) pollution from construction (dust, noise and vibration,
wastewater, solid wastes, and used oil); (e) use of construction materials such as soil and gravel and use
of water for construction; and (f) the possibility of irrigation or drainage channel blockages. These impacts
are likely to be temporary and reversible and could be managed by applying good construction practices
and respective mitigation measures. Climate change and disaster risk screening has identified extreme
precipitation and flooding as major risks related to climate change which will be mitigated by ensuring
adequate adaptation and flood resilience measures in design of road investments. Both MPWT and MRD
have significant experience in implementing World Bank-financed projects with improving track records
on safeguards compliance. However, the ESOs’ availability may be limited because of the existing heavy
workloads. The ESF instruments including the ESMP considering risks and impacts of the reconstruction
of NRs/PRs under Component 1, the ESMF establishing procedures and responsibilities for addressing
specific environmental and social risks and impacts of the rehabilitation of rural roads under Component
2, the RPF, and the SEP are under preparation and will be used by the implementing agencies to identify
specific risks and implement appropriate mitigation measures to avoid or manage the impacts. The ESCP
will summarize specific actions to be implemented by MPWT and MRD within a certain time frame to
meet the requirements of the ESSs found relevant for the project.

98. Social. Overall social risks and impacts are expected to be Substantial. Direct and indirect social
risks associated with rehabilitation and improvement of existing national, provincial, and rural roads are
expected to be mostly temporary, predictable, and avoidable. While no physical displacement is expected,
the potential social risks and impacts are likely to result from a small number of roadside vendors and
fences of houses/farms encroaching the right of way, which will have to be partially economically
displaced; temporary labor influx of workers in low-density areas; and risk of GBV, VAC, and child labor.
In some project locations there is the likely presence of ethnic minorities (indigenous peoples). Special
attention will need to be paid during project implementation to monitor and enforce compliance in the
application of ESS2 (Labor and Working Conditions), particularly to child labor; ESS4 (Community Health
and Safety), because temporary labor influx of workers is expected; and ESS5 (Land Acquisition,
Restrictions on Land Use, and Involuntary Resettlement) because of the potential negative impacts on
vendors operating close to the improved roads.

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VII. RESULTS FRAMEWORK AND MONITORING

Results Framework
COUNTRY: Cambodia
Cambodia Road Connectivity Improvement

Project Development Objectives(s)

The project development objective is to improve climate resilient road access to economic and human development facilities in targeted provinces.

Project Development Objective Indicators

RESULT_FRAME_TBL_ PD O

Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6 7
Economic and human development facilities in the project area are made accessible for all seasons

Facilities with
improved climate
0.00 0.00 0.00 0.00 30.00 50.00 75.00 75.00 75.00
resilient road access
(Number)

Market (Number) 0.00 0.00 0.00 0.00 5.00 10.00 15.00 15.00 15.00

Hospitals (Number) 0.00 0.00 0.00 0.00 2.00 6.00 10.00 10.00 10.00

Schools (Number) 0.00 0.00 0.00 0.00 10.00 30.00 50.00 50.00 50.00

Travel time reduction along project-financed national and provincial roads

Travel time reduction

along project-financed
0.00 0.00 0.00 0.00 10.00 15.00 20.00 20.00 20.00
national and provincial
roads (Percentage)

People from the project area spend less time to reach the economic and human development facilities

Direct beneficiaries 0.00 0.00 0.00 0.00 200,000.00 400,000.00 600,000.00 600,000.00 600,000.00

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RESULT_FRAME_TBL_ PD O

Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6 7
with reduced travel
time to reach the
closet facilities
(Number)

Project-financed assets have a sustained resilience with service levels maintained under OPBRC

Project-financed assets
(road and bridges)
have a sustained
resilience with service 0.00 0.00 0.00 0.00 25.00 60.00 100.00 100.00 100.00
level maintained under
the OPBRC
(Percentage)

PDO Table SPACE

Intermediate Results Indicators by Components

RESULT_FRAME_TBL_ IO

Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6 7
Component 1: National and Provincial Roads Improvement
National and provincial
roads improved with
climate resilience 0.00 0.00 0.00 0.00 80.00 130.00 130.00 130.00 130.00
measures (Kilometers)
Bridges
repaired/upgraded
0.00 0.00 0.00 0.00 5.00 13.00 13.00 13.00 13.00
with climate resilient
measures (Number)
Female employees with
paid jobs under OPBRC 0.00 0.00 0.00 0.00 5.00 15.00 15.00 15.00 15.00

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RESULT_FRAME_TBL_ IO

Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6 7
for national and
provincial roads
(Percentage)
Number of people with
enhanced access to
0.00 0.00 0.00 0.00 100.00 150.00 190.00 190.00 190.00
transportation services
(Number (Thousand))
Road safety
assessment of the
0.00 0.00 0.00 1.00 1.00 1.00 2.00 2.00 2.00
national and provincial
roads (Number)
Component 2: Rural Roads Improvement
Rural roads upgraded
with climate resilience 0.00 0.00 0.00 0.00 50.00 100.00 250.00 250.00 250.00
measures (Kilometers)
Road safety
assessment of the rural 0.00 0.00 0.00 1.00 1.00 1.00 2.00 2.00 2.00
roads (Number)
Female employees with
paid jobs under OPBRC
0.00 0.00 0.00 0.00 10.00 15.00 15.00 15.00 15.00
for rural roads
(Percentage)
Component 3: Institutional Development and Project Management
Rural Roads
Accessibility and
No No No No Yes Yes Yes Yes Yes
Financing Strategy
developed (Yes/No)
Georeferenced data
registered in the
upgraded road crash No No No No Yes Yes Yes Yes Yes
database (Yes/No)

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RESULT_FRAME_TBL_ IO

Indicator Name PBC Baseline Intermediate Targets End Target

1 2 3 4 5 6 7
Community members
trained through road
0.00 0.00 100.00 200.00 500.00 500.00 500.00 500.00 500.00
safety awareness
campaigns (Number)
Share of men out of
total community
members trained 0.00 0.00 70.00 70.00 70.00 70.00 70.00 70.00 70.00
(Percentage)
MRD and MPWT staff
trained on OPBRC,
0.00 0.00 10.00 30.00 30.00 30.00 30.00 30.00 30.00
disagrgregated by
gender (Number)
Contractors' work force
trained on ESHS, OHS
0.00 0.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
and GBV/VAC Code of
Conduct (Percentage)
Citizen engagement
Grievances registered
and addressed in a
timely manner 0.00 0.00 0.00 0.00 80.00 80.00 80.00 80.00 80.00
(Percentage)
Beneficiaries
expressing satisfaction
with improved road
0.00 0.00 0.00 0.00 0.00 70.00 70.00 70.00 70.00
condition and
accessibility to facilities
(Percentage)
IO Table SPACE

UL Table SPACE

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Monitoring & Evaluation Plan: PDO Indicators

Methodology for Data Responsibility for Data
Indicator Name Definition/Description Frequency Datasource
Collection Collection
Measures cumulative
number of critical economic
and human development
facilities that have become
accessible all year round as
a result of the project.
Economic facilities include At completion of each
local markets; human Project section of road works,
development facilities progress the supervision
include schools and health reports consultant counts all
MRD and MPWT
facilities. These facilities prepared by facilities along roads
Facilities with improved climate resilient Annual Project team and GIS
existed before the project supervision and records the
road access specialists
and are located along the consultants number of markets,
project roads but were not of MRD and schools and hospitals in
accessible all year round MPWT. the road completion
due to poor condition of the report.
roads during heavy rains
and floods, hence the
baseline’s value of zero. Any
new facilities built after the
project appraisal will not be
counted for accessibility
gains under this indicator.
Market
Hospitals
Schools

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On annual basis the

supervision consultant
drives along project-
financed national and
provincial road sections
upon completion and
Project records the travel time
Measures average travel
progress in the project progress
time saving after
report report. The travel time
improvement of roads
Travel time reduction along project- Annual prepared by recorded is then used MPWT
compared with baseline
financed national and provincial roads supervision for calculating
travel time along each
consultants percentage of travel
project-financed national
of MPWT time savings compared
and provincial roads.
with the baseline
specified in each sub-
indicator. Each driving
is undertaken in a
working day during
normal traffic hours.

Measures cumulative GIS

number of people with geospatial Use GIS tools based on
reduced travel time modal the methodology for
MRD and MPWT
compared with before developed the geo-spatial based
Direct beneficiaries with reduced travel Annual project team GIS
project condition by at least for the rural accessibility
time to reach the closet facilities specialists.
10 minutes to reach the project analysis modal to
closest economic and during monitor the progress.
human development preparation.
facilities.
Project-financed assets (road and bridges) Measures the share of Project Upon completion of
Continuous MRD, MPWT
have a sustained resilience with service project financed assets progress each road work, the
level maintained under the OPBRC (NRs, PRs, rural roads, and report supervision consultant

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bridges) transferred to prepared by records in the project

maintenance phase under supervision progress report the
OPBRC after completion of consultants share of completed
road construction. The of MRD and assets (road and
OPBRC has specific MPWT. bridges) that are
performance requirements transferred to
and indicators for resilience. performance-based
O&M under OPBRC,
along with the actual
works completed
(kilometers of roads,
number of bridges).

ME PDO Table SPACE

Monitoring & Evaluation Plan: Intermediate Results Indicators

Methodology for Data Responsibility for Data
Indicator Name Definition/Description Frequency Datasource
Collection Collection
At completion of each
section of road works,
the supervision
Project
Measures cumulative consultant measures
progress
kilometers of NRs and PRs the length of road
report
upgraded with climate improved and cross-
National and provincial roads improved Continuous prepared by MPWT
resilience measures. check with the detailed
with climate resilience measures supervision
Disaggregated data at both design to count only
consultants
levels would be gathered, the sections where all
of MPWT.
entered and monitored. designed climate
resilient measures are
fully implemented.
Accumulating this

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number with previously

qualified length of
roads improved, the
supervision consultant
records the number in
the road completion
report.

At completion of each
bridge works, the
supervision consultant
cross-check with the
Project detailed design of the
progress bridge and only count it
report when all designed
Measures cumulative
prepared by climate resilient
numbers of bridges along
Bridges repaired/upgraded with climate Continuous supervision measures are fully MPWT
NRs and PRs upgraded with
resilient measures consultants implemented.
more climate resilient
under the Accumulating this
measures.
control of number with previously
MPWT. qualified bridges, the
supervision consultant
records the number in
the road completion
report.

Project On continuous basis,

Measures share of female progress the supervision
Female employees with paid jobs under employees with paid jobs in Continuous report consultant records the MPWT
OPBRC for national and provincial roads implementing OPBRC for prepared of number of females
NRs and PRs. MPWT. employed with paid
jobs over total

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employees mobilized
for OPBRC
implementation to
calculate the
percentage and record
in project progress
report.

The number of people

with enhanced access
Project
to transportation
progress
This is a new IDA19 core services is measured by
Number of people with enhanced access Annual report MPWT
indicator for the Transport multiplying the total
to transportation services prepared of
Global Practice. number of beneficiaries
MPWT.
by the proportion of
the road upgraded.

MPWT manages
consultant to conduct
two road safety
assessments
respectively upon the
Measures the occurrence of completion of the
Road safety
road safety assessment at design and the
Road safety assessment of the national Twice assessment MPWT
design stage and at completion of actual
and provincial roads reports.
completion of works for NRs works. The road safety
and PRs. assessment report at
the design stage is used
by the design
consultant for design
improvement. Report
at completion stage

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evaluates the
realization of safety
measures in actual
works.

At completion of each
section of road works,
the supervision
consultant measures
the length of road
improved and cross-
check with the detailed
Project
design to count only
progress
the sections where all
Measures cumulative report
designed climate
Rural roads upgraded with climate kilometers of rural roads Continuous prepared by MRD
resilient measures are
resilience measures upgraded with climate supervision
fully implemented.
resilience measures. consultants
Accumulating this
of MRD.
number with previously
qualified length of
roads improved, the
supervision consultant
records the number in
the road completion
report.

MRD manages
Measures the occurrence of
Road safety consultant to conduct
road safety assessment at
Twice assessment two road safety MRD
Road safety assessment of the rural roads design stage and at
reports. assessments
construction completion
respectively upon the
stage for rural roads.
completion of the

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design and the

completion of actual
works. The road safety
assessment report at
the design stage is used
by the design
consultant for design
improvement. Report
at completion stage
evaluates the
realization of safety
measures in actual
works.

On continuous basis,
the supervision
consultant records the
Project number of females
progress employed with paid
Measures share of female report jobs over total
Female employees with paid jobs under employees with paid jobs in Continuous prepared by employees mobilized MRD
OPBRC for rural roads implementing OPBRC for supervision for OPBRC
rural roads. consultants implementation to
of MRD. calculate the
percentage and record
in project progress
report.

Measures the completion of Completed Upon the completion of

Rural Roads Accessibility and Financing the development of Rural Once Rural Roads Rural Roads Financing MRD
Strategy developed Roads Financing Strategy Financing Strategy and
and stakeholder Strategy. stakeholder

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consultations. consultation, MRD

updates this result
indicator.

Project Upon the completion of

progress the upgrade of road
Measures the completion of
report crash database and the
georeferenced data
prepared by registration of the
Georeferenced data registered in the registration in the upgraded Annual MPWT
consultants georeferenced data
upgraded road crash database road crash database at
under the into the system,
MPWT funded by the
control of MPWT updates the
project.
MPWT. result indicator.

On continuous basis,
the supervision
Project consultant records in
Measures cumulative progress the project progress
number of community report report the number of
Community members trained through members trained through Continuous prepared by community members MRD
road safety awareness campaigns road safety awareness supervision trained through road
campaigns provided by the consultants safety awareness
project. of MRD. campaigns, and number
of men trained among
the total participants.

Share of men out of total community

members trained
Measures the aggregated Project On continuous basis,
number of MRD and MPWT progress the supervision
MRD and MPWT staff trained on OPBRC, Continuous MPWT and MRD
staff trained to manage report consultant records in
disagrgregated by gender
OPBRC for road construction prepared by the project progress
and maintenance. supervision report the number of

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consultants MRD and MPWT staff

of MPWT and trained on OPBRC,
MRD. disaggregated by
gender.

Project On continuous basis,

progress the supervision
report consultant records in
prepared by the project progress
Measures the share of
supervision report the number of
Contractors' work force trained on ESHS, Contractor work force Continuous MPWT and MRD
consultants contractor’s work force
OHS and GBV/VAC Code of Conduct trained on ESHS, OHS and
under the trained on ESHS, OHS
GBV/VAC Code of Conduct.
control of and GBV/VAC code of
MPWT and conduct over total
MRD. number of work force.

On continuous basis,
the supervision
Project
consultant records in
progress
Measures grievances the project progress
report
registered raising from report the number of
Continuous prepared by
Grievances registered and addressed in a project activities and registration and MPWT and MRD
supervision
timely manner resolved within three resolution of grievances
consultants
months time, with gender received arising from
of MPWT and
disaggregated data. project activities, with
MRD.
gender disaggregated
data.

Measures the share of Consultation Upon the completion of

Beneficiaries expressing satisfaction with
surveyed beneficiaries who Once minutes, road construction and MPWT and MRD
improved road condition and accessibility
expressed satisfaction with reports rehabilitation, MPWT
to facilities
improved road condition and MRD conduct

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and accessibility to facilities. survey to seek for

beneficiary's feedback
on the level of
satisfaction of
improved road
conditions and
accessibility to
facilities.

ME IO Table SPACE

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ANNEX 1: IMPLEMENTATION ARRANGEMENTS AND SUPPORT PLAN

COUNTRY: Cambodia
Cambodia Road Connectivity Improvement

1. The implementation arrangements for the project will follow the existing government
structure. MEF is the borrower and the formal point of contact between the RGC and the World Bank on
all financial and legal matters for the credit for the proposed project and represents the RGC in discussions
on these matters. MRD and MPWT are the two project implementing agencies. This annex provides details
on the implementation arrangements for the proposed project.

2. A Project Steering Committee (PSC) will be established to provide strategic guidance to the
proposed project. The PSC will include representatives from MEF, MRD, and MPWT, providing strategic
guidance and facilitating inter-ministerial coordination and policy discussion.

Figure 1.1. Proposed Project Institutional and Implementation Arrangement

PSC
Members: MEF, MRD, and MPWT

MPWT Project Implementation Team MRD Project Implementation Team

Consists of Staff assigned from the MPWT Departments Consists of Staff Assigned from MRD Departments and
and Units Units
(detailed in Table 1.1) (detailed in Table 1.2)

Design and Design and

Consultancy, Consultancy,
Supervision Supervision
Goods contracts Goods contracts
Consultants Consultants

Works Contractors Works Contractors

3. MRD and MPWT are responsible for their respective project components and activities
including technical supervision; execution; and management, including contracting and direction of all
consultants, and will be the employer for all civil works contracts. MPWT and MRD will establish their
PITs, comprising staff assigned from relevant departments and units within their respective ministry. The
General Department of Public Works (GDPW) will be the lead department at MPWT, and the General
Department of Rural Roads (GDRR) will be the lead department at MRD. The PITs will, for their respective
components, lead day-to-day project implementation, undertake fiduciary responsibility such as FM and
procurement, monitor project progress and conduct M&E, ensure compliance to project social and
environmental standards, prepare project reports, oversee civil works, and coordinate and collect inputs
from relevant ministries related to their project components. Provincial departments of MRD and MPWT
will assist in dissemination campaigns, safeguard requirements monitoring, and construction supervision,
as required.

4. Project Directors (PDs) at MPWT and MRD will oversee implementation of respective project
components and activities and will be supported by Project Managers (PMs) for day-to-day
management of activities and monitoring of progress. The PDs will be responsible for (a) overall guidance

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and policy advice; (b) internal coordination, discussion, and resolution of project matters with
counterparts in other departments within MPWT and MRD and other government agencies; (c) donor
alignment and harmonization; (d) reporting on project progress to the PSC; and (e) public disclosure and
civil society involvement. The PMs will work on a full-time basis for the project and will support the PDs
in day-to-day management and monitoring of project activities.

5. Project Operations Manual. The project will be implemented following a Project Operations
Manual (POM), which contains detailed information on the project implementation arrangements and
processes, including procurement, FM, disbursements, and safeguards.

Table 1.1. MPWT PIT

No. Position Institution/Department
National Level
1. MPWT Project Director MPWT
2. MPWT Project Manager General Department of Public Works
3. Procurement Coordinator General Department of Public Works
4. Road Data Collection Coordinator Road Data Collection and Management Unit
5. Engineer-1 General Department of Technique
6. Engineer-2 General Department of Technique
7. Overloading Officer National Axle Overloading Control Committee
8. Climate Change Officer General Department of Planning and Policy
9. Communication and Public Relation Officer General Department of Administration and Finance
10. Monitoring and Evaluation Officers Department of Monitoring and Evaluation
11. Administrative Officer Department of Administration
12. Finance Officer Department of Accounting
13. Accountant Department of Accounting
14. Cashier Department of Accounting
15. Finance Assistant Department of Accounting
16. Procurement Officer General Department of Public Works
17. Procurement Assistant Procurement Unit
18. Environmental Safeguards Officer Environmental and Social Safeguards Office
19. Social Safeguards Officer Environmental and Social Safeguards Office
20. Gender Officer Environmental and Social Safeguards Office
21. Internal Auditor-1 Department of Internal Audit
22. Internal Auditor-2 Department of Internal Audit
Kampong Cham, Tboung Khnum, Kratie
23. Provincial Coordinators Provincial Departments of Public Works and Transport
24. Provincial Technical Officers Provincial Departments of Public Works and Transport
Table 1.2. MRD PIT
No. Position Institution/Department
National Level
1. MRD Project Coordinator MRD
2. MRD Project Director MRD
3. MRD Project Manager Department of Rural Road
4. Procurement Coordinator Department of Rural Road

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No. Position Institution/Department

National Level
5. Procurement Officer Department of Finance and Supply
6. GIS Officer Department of Planning and Public Relations
7. Engineer-1, Engineer-2 (Technical support) Department of Rural Road
8. Engineer-3 (Quality control) Department of Rural Road
9. Monitoring and Evaluation Officers Department of Rural Road
10. Administrative Officer Department of Rural Road
11. Finance Officer Department of Finance and Supply
12. Accountant Department of Finance and Supply
13. Internal Audit Officers Department of Internal Audit
14. Environmental Safeguards Officer Department of Rural Road
15. 3 Social Safeguards Officers Department of Rural Road
2 Gender Officers Department of Training and Research, Department of
16.
Rural Economic Development
17. Road Safety Officer Department of Rural Road
Kampong Cham, Tboung Khmum, Kratie
18. Provincial Coordinator Provincial Department of Rural Development
19. Provincial Technical Officer Provincial Department of Rural Development

Financial Management and Disbursements

6. The FM assessment of the proposed project was carried out in October 2019 and March 2020 in
accordance with the World Bank Policy and World Bank Directive: Investment Project Financing dated
October 1, 2018. The objective of the assessment was to determine the adequacy of FM arrangements
for implementation of the proposed project at MPWT and MRD, the designated implementing agencies.
The FM assessment concluded that (a) project FM and staff arrangements will be embedded into the
existing structures of the two ministries and (b) the project FM arrangements meet IDA's requirements
including staffing, budgeting, accounting, fund flow, internal controls, disbursements, financial reporting,
and coordination with internal and external auditors.

7. The FM risk of the project is Substantial given (a) limited experience of the FM team in MRD
assigned for the project related to the operationalization of accounting software and design of chart of
accounts to be aligned with the Government chart of accounts and maintenance adequacy of staff and
accounting and recordings, which could lead to delay in submission of financial report to the World Bank
and (b) limited capacity in monitoring road contracts under OPBRC mechanism, which could lead to delays
in the payments to the contractors, suppliers, and service providers due to risks related to lengthy process
of government procedures, non-compliance with the Financing Agreement, and misuse of funds.
Mitigating measures proposed include (a) assigning experienced staff from Department of Accounting
(DoA, MPWT) and Department of Finance and Supply (DFS, MRD) and contract individual (local) finance
consultants to review the works and support FM function of the project, (b) providing training/orientation
on FM and disbursements, (c) establishing clear mechanism of OPBRC contract payments and capacity
strengthening, and (d) engaging internal and external auditors to carry out annual audit of the project
expenditures.

8. MPWT and MRD have fiduciary responsibilities for their respective project components. MPWT
and MRD have considerable experience implementing donor-financed projects (that is, ADB, JICA, IFAD,

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and so on), including projects financed by the World Bank. The implementation arrangements of the
project will follow the existing structures of the two ministries. It was agreed that DFS in MRD will be
responsible for the project FM and disbursements and DoA in MPWT will have the same responsibility.
Currently, DoA staff are responsible for accounting and disbursement under RAMP II and additional
financing of the World Bank-funded project, and the same staff from DoA will be responsible for FM and
disbursement of this proposed project. To ensure a control mechanism that meets the World Bank’s
requirement, the following FM elements need to be put in place.

9. Staffing. The experienced finance team of MPWT and MRD will undertake the overall FM and
disbursement responsibilities for their respective components. DoA at MPWT and DFS at MRD will have
qualified and experienced project finance officers (heads of FM units) to take overall FM responsibility
and coordination including preparation of financial plans and budget; maintenance of accounting records;
preparation of financial statements; safeguarding of cash; fund flow and timely payments to suppliers,
contractors, and service providers; and coordination with internal and external auditors. DoA and DFS will
be assisted by a project accountant, a finance assistant, and a cashier. Considering the specific needs/gaps,
there may be a requirement of support from consultants and capacity-building assistance for the review
of works and on-the-job coaching.

10. Accounting system. The project will adopt International Public Sector Accounting Standards cash
basis accounting according to the Prakas#545 of MEF dated June 6, 2019. All financial transactions will be
recorded in the computerized accounting software SAGE 50, which will enable the project to generate the
required financial statements. Account codes will be set up to track eligible expenditures according to the
Financing Agreement (that is, category, component, and subcomponents). The accounting software will
also make use of the chart of accounts, which is compatible with the coding structure of 15 digits of the
National Treasury of Cambodia. The imprest accounting systems include cashbook/bank book, petty cash
book, and cash at bank. This imprest system will require to perform end-of-the-month closure regularly
following the Government calendar year. The project costs/expenses are in U.S. dollars and all financial
transactions are in U.S. dollars. The periodic report will be presented in U.S. dollars given the contract’s
terms and payment for goods, works, and services will be made in U.S. dollars and predominantly on a
cash basis accounting, in accordance with the Government’s requirement, aligned with the Cambodia
Integrated Public Sector Accounting Standards.

11. Internal controls. The internal control procedures of the project will follow the national
procedures, outlined in the SOP/FMM and POM. Those charged with governance will be responsible for
mitigating the risk ‘override internal controls’. The project will set clear control and payment procedures
outlined in the FMM such as verification, approval, and authorization of payments. The internal controls
were assessed to be adequate including (a) approval and documentation of threshold of budget holders
and signatories; (b) one or two signatories for the authorization of payments to third party and timely
release of payments; (c) segregation of duties in payment process, month-end account reconciliation; (d)
timely payment to suppliers, contractors, and service provider, especially for road contract under OPBRC
mechanism and the use of contract register to track timeliness of payments; and (e) monthly financial
reports produced for budget holders to manage the cost and the specific controls/policy are disclosed in
the POM. The finance procedures should specify ineligible expenditures such as honorarium,
bonus/wages, gift, staff benefits, errors, and fraudulent practices. Routine activities such as trainings,
meetings, and workshops (that is, training materials, per diem, fees, transportation, accommodation, and
venue rental) and local purchases with reliable invoices/receipts should be disclosed in the POM to guide
the project staff. The internal auditors of MPWT and MRD will carry out the annual performance audit of

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each component and the internal audit report will be furnished to the World Bank by each year.

12. Budget. The implementing agencies have budgeting experience from past and ongoing donor-
funded projects. Budget preparation will follow the national procedures outlined in the SOP for all
externally financed projects and programs in Cambodia issued by Sub-Decree No. 181 ANK. BK, dated
December 2, 2019. Each implementing agency will prepare its annual work plan and budget related to
component expenditures and will present the annual work plan and budget to MEF for approval and then
submit it for the World Bank’s ‘no objection’. The project can finance 100 percent of eligible expenditures
inclusive of all taxes from the loan for all contract agreements including goods, road contracts under
OPBRC, services providers, training, and operating costs. MEF will contribute counterpart funds only to
cover project staff costs for the Government personnel who are working on the project, which will also
be included in the annual budget plan. It was agreed that annual work plan and budget preparation,
according to the SOP/FMM of MEF, will identify the source of funds for each activity to be financed. The
proposed component expenditure will follow the same budget preparation and will be outlined in the
budget format (annual work plans and budget) provided by MEF.

13. Funds flow. At the project level, two Designated Accounts (DAs) will be opened at the National
Bank of Cambodia by MPWT (DA 1) and MRD (DA 2) to receive funds from IDA by each component. The
DAs will be denominated in U.S. dollars. MPWT and MRD are authorized to administer their DAs to finance
eligible expenditures in accordance with the Financing Agreement and the approved annual work plan
and budget. Based on the fund availability in the DA, each implementing agency can make
payments/transfers directly to local and foreign suppliers, contractors, consultants, and service providers
and ensure payments are made on time. The advance in the DA shall be replenished with the World Bank
regularly to avoid shortfalls in the DAs. Figure 1.2 depicts the fund flow chart and e-disbursement process
for IDA source of funds.

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Figure 1.2. Project Funds Flow and E-Disbursement

14. Designated Accounts for IDA. The advance allocation from the IDA source of fund will be made
into the DA upon the effectiveness of the project, based on the DA ceiling and at the request of MPWT
and MRD to the World Bank. The request for DA advance will be made in the form of withdrawal upon
prior approval from MEF for DA 1 for MPWT with a fixed amount at US$1.5 million and DA 2 for MRD with
a fixed amount at US$1.5 million. The advance allocation will be based on the estimated cash
requirements to meet component expenditures, which is equal to two quarters of the Year 1 fiscal
disbursement projection. This will allow the project to maximize the use of funds from the DA and ensure
timely payments to the contractor, supplier, and service provider. Also, road improvement and
maintenance works require sufficient cash on hand for timely payments to output-based payments under
OPBRC and regular reporting of eligible expenditures to the World Bank.

15. Counterpart funding from the RGC. The counterpart funding will be made available to the project
through the National Treasury as part of the Government contribution. The MEF indicated that separate
DAs for receiving counterpart funds will also be opened at the National Bank of Cambodia by each
implementing agency to cover staff costs for Government personnel who are working on the project,
including annual audit fees for the project audit.

16. Periodic financial reporting. Each implementing agency will produce biannual unaudited IFRs and
annual project financial statements. The biannual IFRs will be prepared and submitted to the World Bank
within 45 days after the end of each calendar semester. The IFRs and the annual project financial
statements will be produced on cash basis according to the guidance of SOP/FMM. A template of IFR and
sample contents are outlined in the Government SOP/FMM, which are acceptable to the World Bank. The
customized IFR reporting can be made in SAGE 50, which enables IFRs to be generated timely using the
same customized settings.

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17. External audit. The project financial statement is required to be audited annually by a private
audit company acceptable to the World Bank. The consolidated audited financial statements and two
separate management letters will be submitted to the World Bank within six months after the end of each
calendar year. An external auditor will be appointed by MEF through bundle audit with terms of reference
acceptable to the World Bank.

18. Disclosure of information. The audited financial statements will be subject to public disclosure in
accordance with the World Bank’s Policy on Access to Information. The audit report is required to be
disclosed annually on the websites of MPWT and MRD. The World Bank will also disclose the said audited
financial statements on the World Bank’s website.

19. Project implementation supervision plan. Based on the FM risk rating of the project (Substantial),
the World Bank will conduct supervision missions, applying a risk-based approach. The FM support
mission to the project will be carried out twice a year to review the adequacy of FM arrangements, FM
performance/capacity building, accounting records, budget, payments/contract management, and
reporting including the implementation of the auditor’s recommendation.

20. Disbursements arrangements. The withdrawal of loan proceeds will be made through submission
of electronic withdrawals with supporting documents. This electronic delivery of application will be made
through the Client Connection website. The FM team under each implementing agency is required to be
trained to familiarize themselves with the use of the Client Connection platform. For the delivery of
withdrawals, a prior approval from MEF is required before furnishing the electronic applications and
supporting documents to the World Bank for payments (see funds flow chart). The original documents
will be retained at MPWT and MRD for audit purposes.

21. The supporting documents will be statement of expenditures to the withdrawal applications. The
applicable disbursement methods include (a) reimbursement, (b) advance, (c) direct payment, and (d)
special commitment. The common method for disbursement from the World Bank will be advance
modality (through the DA) but will require frequent reporting of eligible expenditures paid from the DA
to the World Bank on a quarterly basis. The minimum value of application is US$200,000 equivalent for
MPWT and MRD for direct payments, reimbursements, and special commitment.

22. The project is required to follow the Disbursement and Financial Information Letter, Loan
Handbook for World Bank Borrowers April 2017, and Disbursement Guidelines for Investment Project
Financing February 2017.

Table 1.3. Disbursement Categories (Allocation of IDA Credit Proceeds)

Amount of the Amount of the Percentage of Expenditures

Category Credit Allocated (in Credit (in US$ to be Financed (inclusive of
SDRa Equivalent) Equivalent) Taxes)
(1) Goods, works, non-consulting services, 36,600,000 50,000,000 100%
consulting services, Training and Workshops, and
Incremental Operating Costs under MPWT with
respect to parts 1.1, 1.2, and 3.1 of the Project.
(2) Goods, works, non-consulting services, 36,600,000 50,000,000 100%
consulting services, Training and Workshops, and

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Amount of the Amount of the Percentage of Expenditures

Category Credit Allocated (in Credit (in US$ to be Financed (inclusive of
SDRa Equivalent) Equivalent) Taxes)
Incremental Operating Costs under MRD with
respect to parts 2.1, 2.2 and 3.2 of the Project
(3) Emergency Expenditure under Part 4 of the 0 0 100%
Project
Total 73,200,000 100,000,000
Note: a. Amount of the credit allocated in SDR equivalent is included in minutes of loan negotiation.

23. Disbursement for emergency expenditures (Category 3) under Component 4. Component 4

(Contingent Emergency Response) has no allocation and no associated financing unless it is triggered. In
situations where the CERC is triggered by respective implementing agency, the credit can be used for
emergency response purpose from MPWT or MRD’s respective component budget allocation, based on
the Emergency Response Manual annexed in the POM and subject to the World Bank’s no objection.

24. Reimbursement of expenses before effectiveness. MRD and MPWT will need to prefinance the
costs of procurement activities from their own sources of funding to cover activities financed under
advance procurement, including, but not limited to, publication and advertising expenses for expression
of interest, request for proposal, request for quotations, invitation for bid, and so on. The total estimated
amount for prefinance activities is US$3,000 for each MRD and MPWT between the date of signing the
Financing Agreement and the effectiveness of the project. Eligible expenditures can be reimbursed by the
project.

25. Date for disbursement deadline. The project will have a date for disbursement deadline four
months (grace period) after the closing date of the project. The project must settle all eligible expenditures
incurred on or before the project’s closing date during this grace period. The deadline date for the
submission of disbursement application to the World Bank is specified in the Financing Agreement.

Institutional Arrangements for Procurement

26. Applicable procurement procedures. Procurement will be carried out in accordance with the
World Bank Procurement Regulations for IPF Borrowers dated July 1, 2016, revised in November 2017 and
August 2018. Procurement under national procedures will be carried out in accordance with the Kingdom
of Cambodia’s Updated Standard Operating Procedures and Procurement Manual for All Externally
Financed Projects/Programs, promulgated through the Sub-Decree 74 dated May 22, 2012, and
subsequent amendments, which was issued pursuant to Article 3 of the Kingdom of Cambodia’s Law on
Public Procurement dated January 14, 2012, subject to the additional provisions included in the
Procurement Plan.

27. Institutional arrangements for procurement. The procurement activities for Component 1 and 2
will be supported by the MPWT and MRD, respectively, with the support of individual procurement
consultant(s). The POM elaborates the details of procurement arrangements, including responsibilities of
each ministry, and procurement risk mitigation action plan. It refers to (a) the World Bank Procurement
Regulations for IPF Borrowers (July 2016 and revised in November 2017 and revised in August 2018)
applicable to this project, (b) the PPSD and Procurement Plan, and (c) Public Procurement Law (January

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2012) and SOP including the Procurement Manual for all Externally Funded Projects/Programs in
Cambodia (Sub-Decree No. 74 ANK. BK of May 2012) of the RGC with the additional provisions for use of
national procedures under the World Bank-financed projects in Cambodia.

28. Procurement capacity and risk assessment. MPWT and MRD have implemented several projects
financed by the World Bank and other development partners, using Project Implementation Units, based
in the ministries’ departments managing the projects. The key identified procurement risks that may
negatively affect the procurement implementation of the project include the following: (a) limited
knowledge and experience of the newly assigned MRD and MPWT procurement staff for the project on
the World Bank’s Procurement Regulations, which may cause project implementation delays and non-
compliances; (b) possible delays in procurement process during the project start-up phase due to slow
technical inputs from concerned departments; (c) possible coordination challenge between the
implementing agencies and their technical departments; (d) possible delay of internal clearance of
BEC/CEC/PRC; (e) procurement of consulting firms may take significantly longer time than scheduled; and
(f) governance risks associated with conflict of interest, fraud, and corruption, which may adversely affect
the efficiency and effectiveness of the project implementation, and (viii) the procurement activities are
impacted by the COVID-19 outbreak including the difficulty of bidders from countries affected to get
bidding document and submit bid documents, disruption in a supply chain and lack of viable alternatives
that can be secured, foreign labor is unable to travel to the borrower country, or it is illegal for them to
enter the country, contractors’ staff and labor on site may get sick and cannot work or need to be
quarantined.

29. Risk mitigation measures. The following risks and mitigation measures have been discussed and
agreed with the implementing agencies: (a) international and national procurement consultants will be
hired to assist MPWT and MRD in carrying out the procurement activities; (b) the World Bank team will
provide procurement training for MPWT and MRD staff during project implementation; (c) procurement
monitoring using STEP - MPWT and MRD will assign one focal person for implementing STEP and
monitoring the procurement tracking form; (d) procurement tracking and monitoring form in the
SOP/Procurement Manual will be used in addition to STEP; (e) there will be careful procurement planning
and scheduling, with procurement advanced as much as possible; (f) there will be closer coordination
between respective departments of the two ministries and follow-up to get technical inputs on time;
MPWT and MRD will assign focal persons for coordination purpose among the ministries’ departments
and between the two ministries—the coordinating roles and responsibilities are included in the POM; (g)
MPWT and MRD to agree on the service standard that are included in the POM; (h) the procurement
tracking form will be implemented, and sufficient delegation of authority will be provided to the members
of BEC/CEC/PRC; (i) a procurement complaint handling mechanism will be established consistent with the
Government Procurement Rules and Regulations of MEF and the World Bank; and (j) there will be
enhanced disclosure of procurement information, including publication of the annual Procurement Plan
and a quarterly summary of the contract award information for all procurement packages on the project
website and in newspapers.

30. Regarding the COVID-19 outbreak related procurement risks mitigation measure, the bidding
documents will be uploaded on the project website for interested bidders to access and prepare the bid
documents; affected contractors will be provided with opportunity to instruct a third party in-country
representative to print the bid and deliver copies to the purchasing agency - the representative could be
a business partner, diplomatic mission or a print store that couriers the bid; the Recipient may ask for a
Bid Security Declaration in lieu of a guarantee; extend the bid submission deadlines for procurements

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where potential bidders are affected by COVID-19; review the supply chain risks, and pre-emptively
develop mitigation approaches such as sourcing alternative materials and agreeing to vary the contract
accordingly and increasing the levels of buffer inventory.

31. Procurement scope under the project and procurement approach as identified in the Project
Procurement Strategy for Development (PPSD). The estimated budget for all procurement activities
financed by the project and governed by the World Bank Procurement Regulations for IPF Borrowers
would be about US$97.6 million or 97.6 percent of the total US$ 100 million project financing. Out of this
estimated budget, about US$88 million is estimated for the improvement and maintenance works of
national, provincial and rural roads. US$6 million will finance consulting services including design and
supervision services for the project roads. The remaining US$3.6 million is estimated to finance associated
costs on institutional development and project management including (a) MPWT - road crash database
upgrade, road safety awareness and road safety assessment project roads, capacity building to support
updating and implementation of the MPWT’s Gender Mainstreaming Action Plan, and project
management support including support on procurement, FM and audits, M&E, and office equipment and
vehicles , and (b) MRD - rural roads accessibility financing strategy and support in operationalization of
the rural roads asset management system, rural road safety awareness activities and road safety
assessment of project roads, transportation services in rural areas options study, and project
management support to MRD including support on procurement, FM and audits, M&E, gender actions.

32. Based on the analysis in PPSD, the road works and design and supervision consulting services for
are considered of substantial risk because they are very critical to the project and relatively large value.
The Procurement Approach for Works, Goods and Consultant Services was recommended as below.

33. Civil Works. MPWT has experience in hybrid PBC contracts which includes traditional input-based
approach for the civil works and performance-based contracts (PBC) approach for the maintenance under
the ongoing RAMPII. These contracts cover NR7 and NR3 with total length of 218 km and total cost of
US$57 million for improvement and maintenance. The contracts were bid using International RFB one
envelope with the standard bidding documents, without pre-qualification. In total 42 bidders participated
in bidding process. The bidders were mostly from China; there were also two bidders from Vietnam and
several Cambodian companies participating as members of JV with Chinese companies. The bidders from
China won the contracts, which were awarded in the first quarter of 2018. Procurement of PBC packages
is currently ongoing for the NR4. MRD also has experience on OPBRC under the ADB financed road project.

34. The market approach for large road works under the project will be International RFB one
envelope using the standard bidding documents without pre-qualification with three packages that are
based on geographic distribution roads to be improved under MPWT and MRD. The proposed market
approach will be attractive both for the foreign and national/local contractors because base on the
experience from RAMP II project such approach had increased the level of competition and allow to have
better opportunities to select contractors that have sufficient qualifications/experience to successfully
execute the works and to obtain the best value for money. The procurement approach for civil works are
summarized in the table 1.4 below:

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Table 1.4: Procurement Approach for Civil Works

Attribute Selected arrangement Justification Summary/Logic
Specifications Performance based, As the output and performance-based approach will be
OPBRC used, the service levels will be used to measure the
performance during operation and maintenance period and
technical specifications should be used as minimum
requirement during the construction. This is to ensure the
focus on outcomes/results/performance rather than
detailing the process of construction.
Additional Yes MPWT & MRD developing skills to outsource and oversee
Sustainability road maintenance activities through OPBRC.
Requirements
Contract Type Design, Build, Maintain This contract type will be used to fit with output and
(OPBRC) performance-based approach that is applied for the project.
Pricing and costing Performance based This pricing and costing mechanism will be used to fit with
mechanism contracts output and performance-based approach that is applied for
the project.
Supplier Relationship Collaborative The OPBRC will be implemented in 5 years for MRD
packages and 6 years for MPWT packages which are a long-
term contract approach. These contracts are also the most
critical to the success of the project. Therefore, MPWT,
MRD and contractors will have to work closely with each
other to ensure the contracts are implemented and
competed successfully. MPWT and MRD and contractors
certainly share interests and objectives in this case; and as a
result, win-win approach is possible and necessary. MPWT,
MRD and contractors should therefore be in collaborative
relationship to achieve the success during contracts
execution.
Price Adjustments Price adjustment The contract periods long term. MPWT & MRD therefore is
in better position to take the inflation risk. Thus, applying
price adjustment is appropriate.
Form of Contract OPBRC The World Bank standard OPRC contract will be used.
(Terms and
Conditions)
Selection Method Requests for Bids (RFB) Given the nature of Works is not complex and does not
required special technology or method to execute, selection
of RFB method is appropriate. SPD for OPBRC of the Bank
will be used and customized to fit with the specific packages
under the project.
Selection None No special arrangements are foreseen
Arrangement

Market Approach OPEN – International Applying the international market approach will (i) allow the
Single Envelope international companies to participate and bring
international experience to the project, (ii) increase the
level of competition, and (iii) allow the MPWT & MRD to
have better opportunities to select qualified contractors.
Pre / Post Post No package of complex nature that would require pre-
Qualification qualification.

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Evaluation of Costs Adjusted Bid Price Prices to be adjusted for any mathematical errors.
Domestic Preference No Not applicable in Cambodia
Evaluation Method Most Advantageous Bid For this type of Works Most Advantageous Bid Cost is
appropriate.

35. Consultant Services. The consulting assignments under the project include both firm and
individual consultant assignments. The key consulting services of firms will be the Detail design and
supervision services. The table 1.5 hereunder describes the procurement arrangements:
Table 1.5: Procurement Arrangements for Consultant Services
Attribute Selected Arrangement Summary Justification/Logic
Specifications Performance It is appropriate for consulting services

Contract Type Traditional

Pricing and Costing Lump Sum or Time based Lump Sum or Time-based will be determined as
Mechanism appropriate based on the nature of each consulting
assignment.
Price Adjustments Yes Price adjustment should be applicable for long term
contracts (such as more than 18 months).
Form of Contract None specific Standard form of contract will be used.
(Terms and
Conditions)
Selection method Request for Proposals (RFP) RFP will be used for all firm consultant assignments.
Direct Selection The individual consultants will be selected
competitively.
Selection None
Arrangement
Market Approach Type of Competition
1. Open,
2. International
Number of Envelopes/Stages
3. Two Envelopes
4. Multi Stage
Pre/Post Shortlist
Qualification
Evaluation Selection 1. Quality Cost Based QCBS will be used for relatively large firm consultant
Method Selection (QCBS) assignments (over USD 300,000) while CQS will be
2. Quality Based Selection, used for smaller assignment.
(QBS)
3. Consultant’s Qualifications
Based Selection (CQS)
Evaluation of Costs Adjusted Bid Price
Domestic Preference No
Related Criteria Most advantageous Proposal

36. Goods: Goods required under the project are of relatively small value and not complex in nature.
Most of the suppliers for goods are expected to be the local suppliers. The procurement approach for
goods and equipment are summarized in the table 1.6 below:

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Table 1.6: Procurement Arrangements for Goods and Equipment

Attribute Selected Arrangement Summary Justification/Logic
Specifications Conformance The goods are mostly small value and not complex.

Additional No
sustainability
requirement
Contract Type Traditional Traditional type of contract is appropriate for this
type of goods.
Pricing and Costing Lump Sum Lump Sum
Mechanism
Price Adjustments None, fixed price
Form of Contract None specific No special condition is needed.
(Terms and Conditions)
Selection method Request for Bids (RFB) Given the goods with simple nature and of medium
Request for Quotations (RFQ) and small value, selection of RFB or RFQ method is
appropriate.
Selection Arrangement None
Market Approach Type of Competition
• Open
• International
• National
• No Competition – Direct
Selection
Number of Envelopes/Stages
• Single Envelope
• Single Stage
Pre/Post Qualification Post
Evaluation Selection N/A
Method
Evaluation of Costs Adjusted Bid Price
Domestic Preference No
Evaluation method Lowest Evaluated Cost For this type of goods Lowest Evaluated Cost is
appropriate.

37. Procurement Plan. Based on the PPSD, the first 18-month Procurement Plan for the project has
been jointly prepared by the implementing agencies and agreed with the World Bank.
38. Use of STEP. STEP, which is a web-based tool for procurement planning and tracking, streamlining
and automation, and monitoring and reporting, is applicable to this project.
39. Prior review threshold. The procurement risk under this project is substantial after applying the
agreed risk mitigation measures. The prior review thresholds by procurement types are as follows:
Table 1.7. Procurement Prior Review Thresholds
Type of Procurement Estimated contract amounts (US$, millions)
Works 10
Goods, information technology, and non-consulting services 2
Consultants: Firms 1
Consultants: Individuals 0.3

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40. The World Bank’s review and implementation support. The procurement supervision will be part
of the semiannual project implementation support missions and procurement clinics/training based on
the need. In addition to the prior review by the World Bank based on the prior thresholds, which are
subject to change according to the result of risk assessment carried out during the project
implementation, the World Bank will carry out the annual procurement ex post review on a sample of at
least 10 percent of all post-review contracts financed by the project. STEP will help monitor the
procurement progress and take appropriate supportive actions in due course. The Excel-based
procurement tracking form of the Government will be used by implementing agencies in addition to the
STEP for the Government’s internal procurement monitoring.

Implementation Support Plan

41. The Implementation Support Plan addresses the design and implementation requirements of the
project, including the implementation of the risk mitigation measures. It builds on the experiences and
lessons learned in the implementation and management of other World Bank-financed projects in
Cambodia and Southeast Asian region.

42. The Implementation Support Plan will be operationalized through the conduct of standard
semiannual implementation reviews, which will be carried out in the form of implementation support
missions, including field visits and in-person meetings with the project implementation agencies. MEF, in
consultation with MPWT and MRD, will determine the appropriate timing of semiannual reviews,
considering the availability of participants. The World Bank team members to undertake implementation
reviews will be primarily based in the Cambodia Country Office and other country offices in the region.
This arrangement is expected to ensure timely, efficient, and effective implementation support to the
client.

43. The World Bank implementation review will cover the following aspects of the support:

(a) Financial management. This will focus on the adequacy of the FM system to ensure that
funds are used for the intended purpose, with due regard to economy and efficiency. Based
on the level of FM risks at the time of FM supervision, the reviews may include any or all of
the following: (i) review and verification of specific transactions, (ii) review of internal
controls of FM, (iii) analysis of the financial statements in relation to the funds disbursed by
the World Bank, and (iv) physical verification of structures and others as to existence. Desk
reviews will also be conducted on a regular basis and upon submission of the annual external
audit of the project and the biannual IFRs. Issues arising from these reports will be used to
revise and adjust the scope of the planned FM implementation support.

(b) Procurement. This will focus on (i) prior review of procurement documents, (ii) conduct of
ex post reviews at least twice a year, (iii) coaching procurement staff and providing detailed
guidance on the World Bank’s procurement guidelines, and (iv) monitoring of procurement
progress against the detailed Procurement Plan.

(c) Environmental and social standards. This will focus on supervision and provision of technical
inputs in the implementation of the Social and Environmental Management Plan in
accordance with the World Bank ESF. Coaching will also be provided to relevant project staff

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for the preparation, implementation, and monitoring of environmental and social safeguard
instruments.

(d) Technical implementation advice. This will focus on the provision of on-demand technical
advice to the project, especially on (i) design and implementation of OPBRC, (ii) climate
resilience measures, (iii) behavioral change of road users for road safety, (iv) capacity
building for better road investment planning, and (e) gender elements in the project.

(e) Project management. This will focus on the overall management and supervision of the
project to ensure technical soundness and consistency, transparency and good governance,
inclusiveness, and compliance with relevant guidelines and procedures.

44. Each implementation support mission will result in the production of a joint Aide Memoire that
will be discussed at a wrap-up meeting to be chaired by MEF. It is envisaged that the Aide Memoire will
provide an overall view of the current situation relating to project implementation, including findings and
observations from the World Bank. Representatives from the relevant RGC agencies will be invited to
attend the kick-off, wrap-up, and technical meetings. Furthermore, any adjustment requiring more
frequent reviews will be discussed, agreed upon, and documented in the Aide Memoire.

45. A midterm review mission will be held within 42 months after the effective date of the project or
such other period as may be agreed with the World Bank. It is envisaged that the midterm review will be
conducted at either the halfway point of the project period or when the funds are 50 percent disbursed
and provides an opportunity to review the project and take stock of implementation progress. Following
the midterm review, adjustments to project support may be required, including a project restructuring
and/or possible additional financing from any other sources based on implementation experience. The
World Bank will work with MEF, MPWT, and MRD to clarify the requirements necessary to effect any
changes. Any changes to the project that require amendments to the Financing Agreement will require a
formal request from the RGC’s signatory to the Financing Agreement.

46. Six months before the closing date of the project, the RGC will commence the preparation of its
ICR. The World Bank ICR author will participate in the final implementation review and will gather the
necessary information to help prepare the ICR.

47. The estimated level of annual support needed to implement the proposed project is identified in
table 1.5.

Table 1.8. Implementation Support Plan

Focus of Implementation Support
Time Focus Skills Needed
First 12 months Project launch and Project management, transport infrastructure
start-up development, climate change and resilience, road
engineering, procurement, FM, environment and
Annual from Year 2 to Year 7 Project
social safeguard, gender issues including GBV,
implementation
administrative support
Skills Mix Required
Skills Needed Number of Staff Number of Trips
Weeks

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Task Team Leader, Project

7 per year 4 per year, country based
management
Infrastructure Specialist 7 per year 4 per year, country based
Climate Change and Resilience
7 per year 3 per year
Specialist
Road Engineer 4 per year 3 per year, region based
Procurement Specialist 3 per year 3 per year, country based
FM Specialist 3 per year 3 per year, country based
Environment Specialist 3 per year 3 per year, country based
Social Specialist 3 per year 3 per year, country based
Gender Specialist 3 per year 1 per year
Administrative Support 3 per year 0 per year
Partners
Name Institution/Country Role
Asian Development Bank (ADB) Multilateral Ongoing activities in the sector of a similar nature,
Development Agency which will be leveraged and complemented
Japan International Cooperation Bilateral Development Same as above
Agency (JICA) Agency
Kreditanstalt für Wiederaufbau Bilateral Development Same as above
(KfW) Agency
Agence Française de Bilateral Development Same as above
Développement (AFD) Agency
International Fund for Multilateral Same as above
Agricultural Development (IFAD) Development Agency

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ANNEX 2: DETAILED PROJECT DESCRIPTION

COUNTRY: Cambodia
Cambodia Road Connectivity Improvement

1. The proposed project will support the RGC to improve climate-resilient road access to economic
and human capital development facilities in targeted provinces. The proposed PDO is to be achieved
through the following components: (a) Component 1: National and Provincial Roads Improvement, (b)
Component 2: Rural Roads Improvement, (c) Component 3: Institutional Development and Project
Management, and (d) Component 4: Contingent Emergency Response. The IDA credit will cover 100
percent eligible project expenditures including works, goods, consultancy services, training and project
operating costs excluding government staff time. Table 2.1 presents the project components with cost
estimates, and table 2.2 shows the estimated allocation of funds to works, goods, and consultancy
services.

Table 2.1. Estimated Component Costs

IDA Implementing
Components
(US$, millions) Agency
Component 1: National and Provincial Roads Improvement 47.00 MPWT

1.1. Improvement and Maintenance of National and Provincial Roads 44.00

• C1-CW Package 1: NR7 (31 km) improvement/periodic maintenance 7.00
and routine maintenance through OPBRC a
• C1-CW Package 2: NR73 (50 km) improvement/periodic 14.00
maintenance and routine maintenance through OPBRC
• C3-CW Package 3: PR377 (36km) and PR377A (13.6km km) 23.00
improvement/rehabilitation and routine maintenance through
OPBRC
1.2. Design and Supervision Services for the National and Provincial Roads 3.00
Component 2: Rural Roads Improvement 47.00 MRD

2.1. Improvement and Maintenance of Rural Roads 44.00

• C2-CW Package 1: Rural roads improvement and maintenance 23.00
through OPBRC in Kratie Province, multiple lots
• C2-CW Package 2: Rural roads improvement and maintenance 11.00
through OPBRC in Kampong Cham Province, multiple lots
• C2-CW Package 3: Rural roads improvement and maintenance 10.00
through OPBRC in Tboung Khmum Province, multiple lots
2.2. Design and Supervision Services for the Rural Roads 3.00
Component 3: Institutional Development and Project Management 6.00 MPWT, MRD

3.1 Institutional Development and Project Management Support to MPWT 3.00

• C3.1.1 Road crash database upgrade and capacity building 0.50
• C3.1.2 Road safety awareness and road safety assessment of MPWT 0.30
project roads

• C3.1.3 Project management support to MPWT including technical 2.20

assistance for implementation of road side preservation activities,

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IDA Implementing
Components
(US$, millions) Agency
updating and implementing MPWT’s gender mainstreaming action
plan, and project management support including procurement,
financial management (FM) and audits, environmental and social
oversight, overloading control, monitoring and evaluation (M&E),
training, and incremental operation costs.
3.2. Institutional Development and Project Management Support to MRD 3.00
• C3.2.1 Rural Roads Accessibility Financing Strategy and support in 0.50
operationalization of the Rural Roads Asset Management System
• C3.2.2 Rural road safety awareness activities and road safety 0.30
assessment of project roads
• C3.2.3 Safe transportation services in rural areas options study 0.10
• C3.2.4 Project management support to MRD including technical 2.10
assistance for implementation of road side preservation activities,
implementing MRD’s gender mainstreaming action plan, and
project management support including procurement, financial
management (FM) and audits, environmental and social oversight,
overloading control, monitoring and evaluation (M&E), training, and
incremental operation costs.
Component 4: Contingent Emergency Response 0.00 MPWT, MRD

Total 100.0
Note: a. The rest of the NR7 section is being improved under the ongoing RAMP II using the hybrid PBC model. This
section of NR7 will also apply PBC consistent with the rest of the corridor.

Table 2.2. Estimated Funds Allocation by Works, Goods, and Consultancy Services
Allocation of Funds US$, millions % of total
Works 88 88
Goods 1 1
Consultancy services 11 11
Total 100 100

Component 1: National and Provincial Roads Improvement (estimated cost US$47.0 million equivalent)

2. The component will finance improvement of road condition, safety and climate resilience of NR
and PR sections, and design and supervision services. The component includes the following
subcomponents.

3. Subcomponent 1.1: Improvement and Maintenance of National and Provincial Roads

(estimated cost US$44.0 million equivalent). This subcomponent will include the following roads:

(a) NR7, km 300–331 (31.3 km). This section is the last section of NR7 before entering Kratie
Province. Other sections of NR7 (158 km) are being improved under the ongoing IDA-
financed RAMP II. This road section will be improved along the existing carriageway through
periodic maintenance works and enhanced climate resilience measures on flooding
vulnerable locations. The road runs mainly through open space and houses are set back from
the carriageway enabling widening of shoulders to improve safety and traffic of motorbikes.

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(b) NR73 (50 km). This road provides an important link between Kampong Cham and Kratie
Provinces. The road is mainly located in interurban open space. This road section will be
improved along the existing carriageway through periodic maintenance works, improving
resilience to floods and strengthening damaged sections. Road shoulders will be widened to
improve safety for motorbikes in stretches where land is available. Structural condition of
bridges is fair to good, resulting in the preliminary assessment that only limited structural
repair and strengthening works would be required.

(c) PR377 (36 km) and PR377A (13.6 km). This PR provides an important connectivity between
Kratie Town and Sambor District center and serves as an important tourist destination
(Kampi) in Kratie Province. The condition of the road is poor, requiring rehabilitation works
and enhancing climate resilience of the infrastructure along the existing carriageway. There
are 13 old bridges which will need to be replaced. Widening of shoulders will be considered
in stretches where land is available to improve safety and traffic of motorbikes.

Figure 2.1. MPWT Project Roads

4. Subcomponent 1.2: Design and Supervision Services for National and Provincial Roads
(estimated cost US$3.0 million equivalent). The subcomponent will finance the costs of consultancy

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services for supervision of works and design services as needed. It will support MPWT in supervision and
monitoring of the OPBRCs.

Component 2: Rural Roads Improvement (estimated cost US$47.0 million equivalent)

5. The component will support improvement of condition, safety, and climate resilience of selected
rural roads in the project area, and consultancy services for design and supervision. The component
includes the following subcomponents.

6. Subcomponent 2.1: Improvement and Maintenance of Rural Roads (US$44.0 million

equivalent). It is estimated that the component will finance 250 km of priority rural roads in the project
area through OPBRCs covering road improvement and maintenance phases. Road improvement works
will include upgrading the existing earth and laterite roads to DBST along the existing alignment, improving
the capacity of drainage systems, laying concrete pavements on flood-prone areas, widening shoulders
for motorbikes in areas where land is available, and providing site-specific flood protection solutions and
road safety measures to be identified during design works. A robust prioritization approach will be applied
for selection of rural roads for investment. The prioritization process will consider socioeconomic impacts;
climate resilience needs; and flood vulnerability and road accessibility including access to markets,
schools, and hospitals.

7. Subcomponent 2.2: Design and Supervision Services for the Rural Roads (estimated cost US$3.0
million equivalent). The subcomponent will finance the costs of consultancy for design and supervision
services and will support MRD in supervision and monitoring of OPBRCs.

Component 3: Institutional Development and Project Management (estimated cost US$6.0 million
equivalent).

8. This component will support MPWT and MRD on institutional development and project
management. The component includes the following subcomponents and activities.

9. Subcomponent 3.1: Institutional Development and Project Management Support to MPWT

(estimated cost US$3.0 million equivalent). This subcomponent will be managed by MPWT and will
support implementation of the following activities:

(a) Upgrade of the road crash database system (US$0.5 million equivalent) will support the
National Road Safety Committee, on which MPWT serves as the secretariat, to improve
nationwide crash data recording and analysis. This upgrade will enable georeferenced data
collection and will also improve data verification and analysis practices. Based on results of
the needs assessment undertaken under the grant activity from the Global Road Safety
Facility, the activity will support the current system upgrade (software and hardware),
preparation of required protocols and requirements, and capacity building for staff
collecting and using crash data. Implementation of the activity will be closely coordinated
among key members of the National Road Safety Committee especially MPWT, Ministry of
Interior/Traffic Police, and Ministry of Health, which are the main actors in crash data
collection and use. This upgrade will facilitate identification of high-risk location, facilitate
planning and prioritization of evidence-based road safety measures.

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(b) Road safety awareness activities and road safety assessment of MPWT project roads
(US$0.30 million equivalent), including active community engagement and feedback.
Recommendations from the audits will be used to inform road designs.

(c) Project management support to MPWT (US$2.2 million equivalent) will provide technical
assistance for implementation of road side preservation activities, updating and
implementing MPWT’s gender mainstreaming action plan, and project management support
including procurement, financial management (FM) and audits, environmental and social
oversight, overloading control, monitoring and evaluation (M&E), training, and incremental
operation costs.

10. Subcomponent 3.2: Institutional Development and Project Management Support to MRD
(estimated cost US$3.0 million equivalent). This subcomponent will be managed by MRD and include the
following activities:

(a) Preparation of the Rural Roads Accessibility Financing Strategy and support in
operationalization of the Rural Roads Asset Management System (US$0.50 million
equivalent) will support MRD to prepare a financing strategy for the rural roads network
including (i) setting a vision, strategy, and targets for achievement of universal rural road
accessibility in Cambodia; (ii) short-, medium-, and long-term prioritization of investment
and maintenance needs based on economic, social, and climate resilience impacts; and (iii)
design of a financing and funding scheme. The activity will use data from the rural roads data
collection inventory system, which is currently being implemented with support of the ADB
project. It will also include TA and capacity building to support MRD in operationalization of
the Rural Roads Asset Management System.

(b) Road safety awareness activities and road safety assessment of the MRD project roads
(US$0.30 million equivalent) will support (i) road safety awareness raising for communities
and road users, with differentiated messages and engagement for men and women, as
needed, and (ii) road safety audits of project roads, including active community engagement
and feedback to inform the road designs.

(c) Study on transportation services in rural areas (US$0.10 million equivalent) will support
implementation of analysis and development of options on transportation services in rural
areas. The focus will be on transportation services to markets and social services including
schools and hospitals exploring community-based arrangements and public-private
partnership schemes considering local context and best international practices.

(d) Project management support to MRD (US$2.10 million equivalent) will provide technical
assistance for implementation of road side preservation activities, implementing MRD’s
gender mainstreaming action plan, and project management support including
procurement, financial management (FM) and audits, environmental and social oversight,
overloading control, monitoring and evaluation (M&E), training, and incremental operation
costs.

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Component 4: Contingent Emergency Response (US$0 million)

11. This zero-dollar component is designed to provide swift response in the event of an eligible crisis
or emergency, by enabling the RGC to request the World Bank to reallocate project funds to support
emergency response and reconstruction. An Emergency Response Manual is annexed to the POM, which
specifies implementation arrangements for the component including its activation process, roles and
responsibilities of implementing agencies, positive list that may be financed, environmental and social
aspects, and fiduciary arrangements.

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ANNEX 3: ECONOMIC ANALYSIS

COUNTRY: Cambodia
Cambodia Road Connectivity Improvement

1. Economic analysis was conducted based on a standard methodology applied for appraisal of
roadworks, which demonstrates the overall economic internal rate of return (EIRR) of 34.8 percent and
NPV of US$130.8 million. The economic evaluation focuses on two major components: (a) national and
provincial roads improvement and (b) rural roads improvement. For national and provincial roads, the
analysis focuses on the asphalt concrete road improvement cost over the first two years and maintenance
costs (including periodic needs) over the period of 20 years. For rural roads, the analysis focuses on the
DBST road improvement cost over the first two years and maintenance costs over the period of 10 years.
The discount rate is assumed to be 10 percent. The annual operation and maintenance cost estimated by
the design consultants was included in the assessment. The Cost-Benefit Analysis (CBA) was conducted to
calculate the EIRR and net present value (NPV) of the project covering the period of 20 years (2020–2040),
assuming the road maintenance continues over the full study period.

A. Economic Evaluation Assumptions

2. For national and provincial roads, traffic intensity data were recorded along the selected sections
of the project road in 2018. Tables 3.1 and 3.2 show the details of traffic data and basic assumptions based
on road characteristics, respectively. The estimated unit cost for asphalt concrete road improvement
follows MPWT’s historical costs.

Table 3.1. Annual Average Daily Traffic (AADT), 2018

Semi-
Med Heavy Heavy Semi-
Road Motor Mini Light Large Trailer
Car 4WD Van (>4 (3 (4/5 Trailer
Sections cycle bus Truck Bus (4/5
tons) axle) axle) (6 axle)
axle)
NR7 5,564 801 842 1126 32 0 429 287 240 107 237 0
NR73 4,946 874 875 674 38 252 85 133 130 191 123 0
PR377 3,165 626 313 956 95 304 14 264 96 58 0 0
PR377Aa 2,216 438 219 669 66 213 10 185 67 41 0 0
Note: 4WD = Four-wheel drive.
a. The analysis assumes that the traffic is about 70 percent of PR377.
Table 3.2. Basic Assumptions on Road and Traffic Characteristics
Length Width Shoulder AADT Growth
Road Location IRI
(Km) (m) (m) (%)
NR7 The end of CW4 to Kratie City 31.25 7 2 4.0 7
NR73 NR7 (Pratheart) to Kampong Reang 50 7 1 4.0 7
Preap Sor Roundabout, Kratie City
PR377 36 6 1 9.0 6
to Sambo District
Sandan Commune Kratie Province
PR377A 13.6 6 1 5.0 6
to NR7
Note: IRI = International Roughness Index.

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3. For rural roads, the project covers approximately 250 km of rural roads in Kampong Cham, Kratie,
and Tboung Khmum Provinces. There are no detailed traffic data by section, but the estimated traffic is
300–500 vehicles per day. To be conservative, it is assumed that the traffic on rural roads does not grow
over time. The estimated unit cost for DBST road improvement follows MRD historical costs.

4. Key economic benefits of the project arise from (a) reduced VOCs due to improved road condition,
(b) travel time savings, and (c) avoided emergency maintenance costs in the without-project scenario. The
maximum project cost which would occur under OPBRC without additional concessional financing is
assumed with the standard conversion factor of 0.90.

5. For national and provincial roads, the analysis uses an HDM-4 model (based on latest data from
MPWT) to calculate the VOCs under different levels of road condition to determine VOC savings. The time
savings are calculated from improving average speed (from current average of 40–50 km/h to around 60–
70 km/h, depending on road section).

6. For rural roads, it is assumed that the DBST treatment will improve vehicle operations equivalent
to the improvement of IRI from 6 to 3 m/km. Based on the HDM-4 calculation, this is about US$0.023 per
vehicle-km. The time savings are calculated based on the geospatial analysis, which estimated the number
of people with improved access (in terms of travel time saved) to schools, hospitals, and markets.

7. The emergency maintenance cost savings (at US$50,000 per km) for both MPWT and MRD roads
are calculated based on a probabilistic average of severe floods occurring once every three years and that
about 30 percent (not all) of the emergency maintenance could be avoided because of the project.

B. Economic Evaluation Results

8. Based on the CBA, the investment on national and provincial road improvement (Component 1)
yields the EIRR of 44.9 percent and NPV of US$108 million. The investment on rural road improvement,
with the accessibility benefits, yields the EIRR of 24.1 percent and NPV of US$22.8 million. Hence, the
overall project EIRR is 34.8 percent with the NPV of US$130.8 million. The sensitivity of the EIRR was also
tested against three cost variation scenarios and their combinations, which has confirmed the robustness
of economic returns. The results of the sensitivity analysis are illustrated in table 3.3.

Table 3.3. CBA Results and Sensitivity Analysis

Component 1 Component 2 Total
Scenarios NPV NPV
EIRR EIRR EIRR NPV (US$,
(US$, (US$,
(%) (%) (%) millions)
millions) millions)
Base case 44.9 108.00 24.1 22.80 34.8 130.80
Maintenance cost increases by 20% 44.2 104.51 24.0 22.34 34.4 126.85
Construction cost increases by 20% 38.9 103.20 18.8 16.21 29.6 119.41
Both construction and maintenance 38.3 99.70 18.7 15.75 29.2 115.46
costs increase by 20%
Traffic is 20% lower than expected 37.1 78.84 23.8 22.25 30.7 101.08
Both construction and maintenance 31.4 70.54 18.4 15.20 25.4 85.74
costs increase by 20% and traffic is
20% lower than expected

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9. A separate road safety appraisal was conducted using the World Bank’s Road Safety Screening
and Appraisal Tool (RSSAT). The project is expected to help prevent approximately 6 fatalities and 60
serious injuries per year through road infrastructure enhancements under Component 1.41 The overall
road safety benefits are estimated to be over US$30 million during the roads’ life cycle of 20 years.

10. The value-for-money assessment was also conducted to compare between the project’s OPBRC
approach and the traditional input-based contract approach to road improvement and maintenance.
Under the input-based approach, the overall cost is slightly lower, but the life cycle of the roads would
also be shorter, thus, lower benefits compared to OPBRC. In addition, OPBRC ensures lower emergency
maintenance costs. In summary, OPBRC will result in higher economic return (EIRR) for the investment,
which is also confirmed by the benefit-cost ratios, as illustrated in table 3.4.

Table 3.4. Value-for-Money Comparison between OPBRC and Traditional Public Procurement for NRs

Road Section NR7 NR73 PR377 PR377A

EIRR (%)
OPBRC 43.8 38.8 50.9 33.2
Traditional Public Procurement 37.3 30.7 47.6 23.1
NPV of costs (US$, millions)
OPBRC 8.50 13.32 15.52 4.14
Traditional Public Procurement 7.19 11.25 14.04 3.44
Benefit-cost ratio
OPBRC 3.43 3.00 4.59 2.20
Traditional Public Procurement 1.88 1.61 2.72 1.30

C. GHG Accounting

11. GHG emissions. An analysis of GHG emissions was undertaken based on fuel consumption rate at
different speeds under the with-project and without-project scenarios. Without the project, the road’s
deteriorated condition limits vehicle speed and leads to higher fuel consumption per vehicle-km
compared to the with-project scenario. With the project, improved road condition leads to improved
speed and hence lower fuel consumption. Gross GHG emission under the with-project scenario is
estimated to be 2,736,454 tCO2e. Total net GHG emission is estimated to be -54,513 tCO2e—a net
reduction over the evaluation period (20 years). The annual average net GHG emission is -2,733
tCO2e/year. The social benefit from GHG reduction is estimated to be US$3.17 million, based on social
cost of emission reduction from the World Bank’s Guidance Note on Shadow Price of Carbon in Economic
Analysis (2017).

41 The RSSAT tool will be used for Component 2 also once selection of rural roads for investment is completed.

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ANNEX 4: GEOSPATIAL ANALYSIS FOR RURAL ROADS PRIORITIZATION

COUNTRY: Cambodia
Cambodia Road Connectivity Improvement

1. An innovative geospatial analysis framework has been designed to support prioritization of

rural road investments for the proposed project, integrating accessibility impacts and climate change
risks (flooding in Cambodia’s case) into the decision making through a robust data-driven approach. The
geospatial analysis is inspired by the World Bank’s latest flagship report, ‘Lifelines: The Resilient
Infrastructure Opportunity’, and aims to put users and services at the core of resilience building for the
transport infrastructure. Leveraging the concept of accessibility and network-wide transport analysis, this
analysis prioritizes the most critical rural road sections that would enhance the resilience of users and
their ability to maintain the same levels of accessibility to critical economic and human development
facilities (markets, schools, and hospitals) in the event of flood disruption and thereby enhancing the
resilience of the road system as well as the users to better withstand climate shocks.

Methodology and Data Inputs

2. The designed methodology is based on a rich geospatial database that includes location of
agriculture, markets, schools, health center, and flood maps for the targeted provinces. Data sets
combine open source data with government official data. Description and sources are detailed in Table
4.3 and displayed in Figure 4.5 and Figure 4.6. The analysis prioritizes rural roads investment by evaluating
the development gains from three dimensions: (a) promoting economic growth, (b) promoting human
development, and (c) increasing climate resilience:

• Promoting economic growth. By integrating the agriculture production data (available from
the International Food Policy Research Institute [IFPRI]) and market location data (available
from Open Development Cambodia), this analysis evaluates the accessibility of rural farmers
to markets as the key indicator to foster economic growth. It detects which rural road
improvement interventions will lead to most accessibility gains for agriculture products and
rural farmers at the network level. Accessibility is measured as the ability for agriculture land
and farmer to reach regional markets in a certain time threshold (60 min).

• Promoting human development. This analysis uses location data of schools and hospitals to
evaluate the accessibility of rural residents to key social services as the indicator to foster
human development. It detects which rural road improvement interventions will lead to
most accessibility gains for rural residents to reach the closest schools and hospitals in a
certain time threshold (30 min).

• Enhancing climate resilience. By using the flood hazard maps developed under the World
Bank-financed SEA DRM Project, this analysis evaluates the vulnerability of rural roads to
floods and the impact of flood disruptions to the accessibility for economic growth and
human development at the network level. Road vulnerability to flood risk is assessed by the
exposure levels from the flood maps and the type and condition of roads. This analysis
detects which and what types of rural road improvement interventions will lead to most
resilience gains for the rural road infrastructure as well as for the users to access key services.

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Table 4.3. Data Inputs for the Geospatial Analysis

Description Source
Population United Nations estimates at 100 m resolution from AsiaPop
2015
Points of interest Geospatial location of schools (2015), hospitals (2018), MRD, Ministry of Education,
and markets Ministry of Health
Road network OSM + project-specific shapefile (MRD) + additional OSM, MRD
roads to access all POI
Agriculture Value of crop production (2010) at 10 km resolution IFPRI SPAM model
Floods Flood water depth maps (5 to 100 years return period) Deltares

Figure 4.5. Point of Interest in Project Area Figure 4.6. Flood Maps

Source: World Bank staff. 2019. Baseline Accessibility Analysis in the Project Area.

Accessibility Model

3. The underlying accessibility model of the geospatial analysis considers the following assumptions:

• Vehicle and motorbike are two major travel modes in rural Cambodia. Each mode has
different travel speeds.

• Travel distance is considered in selection of mode. Bikes are used to access schools, high
schools, and health centers. Vehicles are used to access markets and referral hospitals.

• People can walk up to 2 km to road and/or to destination. This model measures last-mile
connectivity in addition to main mode of transportation.

• Roads would become impassible with more than 0.5 m of flood water above design levels
for vehicles and 0.25 m for bike.

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• Design standards are based on local construction practices.

• Walking would become impassable with any flood, including the minimum level.

4. To quantify climate vulnerability, the accessibility model imposes disruption of certain roads
based on the flood levels and their hydraulic designs. The vulnerability analysis is conducted through the
following steps:

(a) Intersecting flood maps with the rural road network. Flood event model is a 50-year return
event.

(b) Disrupting road network based on hydraulic designs. For instance, a main road will be
disrupted if the difference between the 50-year flood and the 20-year flood is more than 0.5
m. This should be calculated for each segment based on the design assumption.

(c) Recalculating travel time for each cell based on this new scenario

(d) Comparing baseline with flooding scenarios and determining increased travel time (or loss
of access) for non-isolated cells.

(e) Calculating joint loss of access with population/agriculture values and identifying isolated
cells.

Baseline Analysis

5. A baseline analysis is conducted to reveal the current accessibility level and constraints without
the project intervention. It serves as a basis for the prioritization of interventions. Tables 4.2 and 4.3 show
the results of the baseline accessibility and climate disruption analysis conducted on the entire population
of 2.2 million in the three targeted provinces. Each row is the population and percentage of population
with respect to the total population that can reach a certain destination in 0 to 30 minutes, 30 minutes to
60 minutes, and more than 60 minutes. Agriculture value is not measured by population of farmers but
by the value of production that can reach markets for trade.

Table 4.2. Baseline Travel Time to Schools, Hospitals, and Markets in the Project Area
Only High All Health Only Referral Agriculture
All Schools
Travel Time Schools Facilities Hospitals Value b
(× 1,000)a
(× 1,000) (× 1,000) (× 1,000) (US$, millions)
0 to 30 minutes 1,965 91% 1,199 55% 1,472 68% 702 32% 166 10%
30 to 60 minutes 137 6% 563 26% 509 24% 609 28% 310 18%
More than 60 minutes 12 1% 343 16% 128 6% 794 37% 1090 64%
Note: Agriculture value represents the value of crop production (US$, millions) calculated using soil type, land use
data, and crop production based on Spatial Production Allocation Model and data by IFPRI.

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Table 4.3. Flood Vulnerability in Access to Schools, Hospitals, and Markets in the Project Area a
Only High All Health Only Referral Agriculture
All Schools
Travel Time Schools Facilities Hospitals Value c
(× 1,000) b
(× 1,000) (× 1,000) (× 1,000) (US$, millions)
0 to 30 minutes 903 42% 636 29% 695 32% 573 26% 405 24%
30 to 60 minutes 65 3% 207 10% 182 8% 180 8% 143 8%
More than 60 minutes 28 1% 147 7% 98 5% 206 9% 172 10%
Isolated/flooded 561 26% 572 26% 573 26% 592 27% 366 22%
Note: a. The climate vulnerability scenario assumes that flooded roads are impassable and recalculates accessibility
and loss of access (additional travel time required relative to baseline scenario).
b. Each row is the population in thousand persons and percentage of population with respect to the total population
that can reach the destination in 30 minutes, 60 minutes, and more than 60 minutes.
c. Agriculture value represents the value of crop production (US$, millions) calculated using soil type, land use data,
and crop production based on Spatial Production Allocation Model and Data by IFPRI.

6. The baseline analysis shows the following:

• Currently, about 28 percent of the value of agriculture production can reach a market in 60
minutes. The impact of floods is high: during heavy rains and floods, about 22 percent of
value of agriculture production loses access to markets.

• Accessibility to schools in the project area is good, largely driven by the density of primary
schools, with 91 percent of people being able to reach them in less than 30 minutes.
Accessibility constraints are much higher for high schools—only 55 percent of the population
is able to reach high schools in 30 minutes. During heavy rains and floods, about 27 percent
of the population loses access to education facilities.

• Currently, about 68 percent of population in the project area can reach different types of
health facilities within 30 minutes. Accessibility constraints are much higher for referral and
emergency medical facilitates with only 32 percent of the population able to reach them in
30 minutes. During heavy rains and floods, about 26 percent of the population loses access
to health care facilities.

7. Based on the assumptions about travel modes’ speed and hydraulic design of rural roads after
project interventions, new accessibility results are calculated. First, the road network is updated with new
speeds to calculate gains in accessibility, followed by the updated climate resilience analysis, which uses
the new hydraulic design of roads under the project to calculate reduction of accessibility loss during flood
events. Road interventions are prioritized by calculating each interventions’ contribution to accessibility
gains and the reduction of climate vulnerability (loss of accessibility to key facilities). The accessibility
model is run for the baseline scenario and flood disruption scenarios for each road under evaluation,
through which a score is assigned to each rural road section against the criteria between 0 and 100.

8. After the long list of roads is ranked based on accessibility and resilience gains, MRD, with the
support of consultants, will carry out environmental and social screening of the prioritized road sections.
This screening will ensure that the proposed investment does not cause major negative environmental
and social impacts and maximizes development gains for the beneficiaries. A final short list of lifeline roads
will be identified which are eligible for investment with a balanced representation of the targeted

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provinces. This process will be completed during the first year of project implementation.

Figure 4.3. Rural Roads Prioritization Using Rural Accessibility and Resilience Analysis

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ANNEX 5: GENDER-BASED VIOLENCE RISK MITIGATION

COUNTRY: Cambodia
Cambodia Road Connectivity Improvement

1. The project was screened for the project-induced GBV impacts using the World Bank’s ‘GBV Risk
Assessment Tool’ and was classified within the ‘Moderate Risk’ category. Project activities are likely to
cause labor influx, both foreign and national, and introduce or increase local salaried labor. This has the
potential to shift community power dynamics, increasing risks of GBV and VAC. The project will implement
a comprehensive set of activities which are aligned with the World Bank Good Practice Note
‘Recommendations for Addressing Gender-Based Violence in Investment Project Financing Involving
Major Civil Works’ (2018). The activities will focus on project-induced GBV risks. This action plan is not an
additional project instrument; instead, it synthesizes information from project documentation as an
overview of project’s GBV-/VAC-related actions.

Pillar 1: Awareness and Coordination at Local Level

(a) Consult with Sub-Working Group on GBV which has been established by the Ministry of
Women Affairs to ensure coordination between the implementing agencies, contractors,
and local key service providers including government and civil society organizations.

(b) Ensure GBV mitigation measures are included into the GRM and that the implementing
agencies are trained to address and investigate reported incidents.

(c) Include GBV specialist in implementing agencies and supervision teams (combined with a
gender specialist role to implement the GMAP/GMSP).

Pillar 2: Prevention
(a) Include the GBV Action Plan in the ESMPs and ESMF with codes of conduct and a response
protocol for managing any reported incidents.

(b) Contractors will be required to ensure that the contractor’s ESMP is aligned with the ESMP.
Evaluate the contractor’s GBV response proposal in contractor’s ESMP for ability to meet
the project’s GBV requirements.

(c) All workers employed on the project will participate in GBV/HIV training on the codes of
conduct, including expected behaviors and potential disciplinary actions against
perpetrators and how to report any project-related cases of GBV and VAC and information
on available service providers.

(d) Develop and disseminate awareness materials and conduct community awareness-raising
activities in project areas.

Pillar 3: Response
(a) Identify and document referral pathways in the project area.

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(b) Develop an effective GRM with anonymous, informal, and formal reporting channels.

(c) Provide training for GBV/VAC focal points from the contractor(s), supervision consultant(s),
implementing agency, and local service providers who will form part of the GBV complaints
team.

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Table 5.1. Actions Taken to Implement GBV/VAC Good Practice Note-recommended Activities during Preparation
Who Is Responsible Ongoing Risk Actions Taken during
Action to Address GBV/VAC Risks Timing for Action
for Action Management Preparation/Appraisal
Sensitize the implementing agencies (MPWT, • Preparation • World Bank team • World Bank team to Training provided for the PITs
MRD) on the importance of addressing • Implementation monitor and provide at MPWT and MRD.
GBV/VAC in the project and the mechanisms additional guidance Project documents contain
that will be implemented. as necessary clear strategy for addressing
GBV and VAC.
The project’s social assessment to include • Preparation • Implementing • Ongoing review ESMF and ESMPs include
assessment of the underlying GBV/VAC risks • Implementation agency for social during project risk mitigation
and social situation, keeping to safety and (before civil assessment and implementation measures to address GBV and
ethical considerations related to GBV/VAC data works the ESMP and support missions VAC.
collection. commence) ESMF • Update ESMP, ESMF,
• Contractor for and contractor’s
contractor’s ESMP if risk situation
ESMP changes
• World Bank team
for GBV Risk
Assessment Tool
Map out GBV/VAC prevention and response • Preparation • Implementing • Ongoing Done as part of preparation
actors in project area of influence. This should • Implementation agency
incorporate an assessment of the capabilities
of the service providers to provide quality
survivor-centered services including GBV/VAC
case management, acting as a victim’s
advocate, and providing referral services to link
other services not provided by the organization
itself.
Have GBV/VAC risks adequately reflected in • Preparation • Implementing • Ongoing review Done as part of preparation
the ESMPs and ESMF. Include the GBV/VAC • Implementation agency for social during
mapping in these instruments. (before civil assessment and implementation
works the ESMP support missions
commence) • Contractor for • Update the ESMP and
contractor’s contractor’s ESMP if
ESMP risk situation changes

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Who Is Responsible Ongoing Risk Actions Taken during

Action to Address GBV/VAC Risks Timing for Action
for Action Management Preparation/Appraisal
Develop a GBV/VAC action plan including the • Preparation • Done as part of • Ongoing review Done as part of preparation
Accountability and Response Framework as • Implementation preparation during
part of the ESMP. The contractor/consultant’s (before civil implementation
response to these requirements should be works
reflected in the contractor’s ESMP. commence)
Review the implementing agency’s capacity to • Preparation • World Bank team • Ongoing review Review carried out as part of
prevent and respond to GBV/VAC as part of the • Implementation during ESMF and ESMP and Gender
ESF instruments preparation. implementation Gap Analysis
support missions
• Update the ESMP if
risk situation changes
As part of the project’s stakeholder • Consultations • Implementing • Monitoring of SEP Consultations with
consultations, those affected by the project need to be agency implementation stakeholders were carried out
should be properly informed of GBV/VAC risks continuous • Ongoing and will be continued
and project activities to get their feedback on throughout the consultations, throughout project
project design and safeguard issues. project cycle, not particularly when implementation.
just during contractor’s ESMP is
preparation. updated
The SEP of the project, which will be • Consultations • Implementing • Monitoring of SEP Reflected in SEP
implemented over the life of the project to need to be agency implementation
keep the local communities and other continuous • Ongoing
stakeholders informed about the project’s throughout the consultations,
activities, to specifically address GBV/VAC- project cycle, not particularly when
related issues. just during contractor’s ESMP is
preparation. updated
Ascertain the availability of an effective GRM • Before • Implementing • Ongoing monitoring Project will implement the
with multiple channels to initiate a complaint. contractor agency, but and reporting on GRM approach successfully for
It should have specific procedures for mobilizing discussed and GRM to verify it is ongoing projects, which also
GBV/VAC, including confidential reporting with agreed upon with working as intended includes processes for
safe and ethical documenting of GBV/VAC the task team GBV/VAC
cases.
Ensure implementing agencies and PITs have a • Preparation • Implementing • Ongoing reporting MPWT and MRD assigned
gender specialist to support project agency gender focal points in their
implementation. project teams

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Who Is Responsible Ongoing Risk Actions Taken during

Action to Address GBV/VAC Risks Timing for Action
for Action Management Preparation/Appraisal
For supervision, have a social/environmental • During • Implementing • Ongoing reporting Discussed and agreed with
specialist in the supervision consultant’s team procurement agency MPWT and MRD during project
with GBV/VAC-specific skills to supervise issues evaluation preparation
related to GBV/VAC (for example, supervise process
signing of codes of conduct, verify that a
working GRM for GBV/VAC is in place, refer
cases where needed) and work with GBV/VAC
service providers as entry points into service
provision to raise awareness of the GRM.
Clearly define the GBV requirements and • Procurement • Implementing • Review by World Discussed and agreed with
expectations in the bid documents. agency Bank team. MPWT and MRD during
preparation
Projects that do not use loan/credit/grant • Preparation • World Bank • World Bank Not required. The project
proceeds to hire GBV/VAC service providers at includes funding specifically to
the start of project implementation encourage address GBV/VAC and this will
borrowers to include an escalation clause in be used to fund the services
the ESCP should GBV/VAC risks become provider
apparent over the course of the project
implementation.

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ANNEX 6: MAP OF CAMBODIA WITH PROJECT SITE

COUNTRY: Cambodia
Cambodia Road Connectivity Improvement

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