Project Name Greater Mekong Subregion: Rehabilitation of the Railway in Cambodia Project
Project Number 37269-023
Country Cambodia
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0187-CAM: Greater Mekong Subregion: Rehabilitation of the Railway in Cambodia Project
Government of Australia US$ 21.50 million
Loan 2602-CAM: Greater Mekong Subregion: Rehabilitation of the Railway in Cambodia Project
Asian Development Fund US$ 42.00 million
Grant 0187-CAM: Greater Mekong Subregion: Rehabilitation of the Railway in Cambodia Project - Support for Expanded Income Restoration Program
Government of Australia US$ 960,000.00
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Sector / Subsector

Transport - Rail transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome The Southern line from Phnom Penh to Sihanoukville is completed. The section between Phnom Penh and Touk Meas was re-opened in October 2010, and the section between Touk Meas and Sihanoukville was re-opened in December 2012. About 30 trains circulate each week on the line, carrying fuel, cement and bagged rice in containers. All these will increase as the rail business is expanding. In the first full year of operation in 2013, the railway carried 393,000 tons of freight on the Southern Line, three times higher than the average level before the project. The Port Authority of Sihanoukville recorded an 85% increase in rice exports in 2013, much of it traveling to the port via the newly revived Southern Line. In addition, sending goods by rail has removed almost 700 trucks journeys round trip every week from the National Highways. In 2014, the operation of the Southern Line generated rail freight volume amounting to nearly 500,000 tons, giving it an overall rail freight market share of 11%. The major traffic contributors for the railway are bulk fuel, rice, and coal which collectively accounted for more than 70% of the total freight volume in 2014. The total volume of containerized rice exports in 2014 was reported by the Cambodian Rice Exporters' Association as 387,061 tons and the railway concessionaire has secured almost one quarter of this market. Northern line - of the 48 km of missing link between Sisophon to Poipet (Thai border), about 42 km is completed; and 23 km from Phnom Penh bifurcation to Bat Deong is completed. The contractor stopped the work in June 2012 and negotiations to resume the works failed. The Government has prepared Plan B to complete priority works with the available funds on the Southern Line, which is now complete. Northern line - of the 48 km of missing link between Sisophon to Poipet (Thai border), about 42 km is completed; and 23 km from Phnom Penh bifurcation to Bat Deong is completed. The contractor stopped the work in June 2012 and negotiations to resume the works failed. The Government has prepared Plan B to complete priority works with the available funds on the Southern Line, which is now complete.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

About 42 km completed.

The Sihanoukville container terminal and the railway track at the Sihanoukville port are complete.

The Government requested removal of the Samrong Intermodal Terminal. An amendment to the project scope has been approved by the ADB Board on 3 october 2014. As a short-term alternative to the intermodal terminal planned for Samrong, the Concessionaire has constructed a hard stand facility at the CWT Dry Port in Phnom Penh, which is now being used for loading and unloading of train cargo.

Railway Department's capacity building programs to be

able to manage concession is completed.

This is now taken out of the Project scope, upon request of the Government.

Geographical Location

Safeguard Categories

Environment B
Involuntary Resettlement A
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects The railway alignment is outside environmentally sensitive areas such as national parks and other protected areas and their buffer zones and the proposed Project falls into environmental category B. The additional works to be implemented under the modified project do not introduce new or significantly different environmental impacts, since they are largely contained within or close to the areas already assessed under the original project's IEE. The implementation of the Project is not expected to cause significant environmental impacts. Other components will consist of rehabilitation of existing siding and construction of relatively short spans of siding/spur lines from the existing main line. Appropriate mitigation measures during pre-construction, construction, and operation phases have been identified, implementation of which will minimize the negative impacts of the Project to acceptable levels.
Involuntary Resettlement

The original project was formulated to minimize potential risks related to involuntary resettlement. The scope of the modified project, which included the construction of a new freight facility at Samrong, has been amended to remove the Samrong freight facilities, and instead include priority works for the Southern Line to improve operating speed and safety. These works are not expected to have resettlement impacts.

The draft resettlement plan is updated, agreed, and implemented prior to civil works. An expanded income restoration program is being implemented which provides credit for business expansion through a community development fund and gives grants for emergencies through a social safety nets fund. The funds are provided to self-help groups in relocation sites.

The resettlement implementation has been subject to the two accountability mechanism processes. The Office of the Special Project Facilitator has addressed the issues of complainants and the case was close in 2014. As a result of the findings of the Compliance Review Panel, the Board made recommendations in January 2014. On the basis of these recommendations, remedial actions have been agreed by Government and are currently being implemented.

Indigenous Peoples The socioeconomic survey indicated that the original project is not expected to affect ethnic minority groups any differently than the majority Khmers. ADB's Policy on Indigenous Peoples (1998) is not triggered.
Stakeholder Communication, Participation, and Consultation
During Project Design With respect to involuntary resettlement, the government has held public consultation meetings; distributed public information booklets in the Khmer language to all affected households; and placed copies of the resettlement plan, translated into Khmer language, in the affected commune offices.
During Project Implementation

During the updating and implementation of the resettlement plan, consultations and information dissemination continued with affected persons consistent with the projects participatory approach. The affected households were made fully aware of their rights through verbal and written means during resettlement planning, updating, and implementation. In addition, the HIV/AIDS prevention program includes community participation during design and implementation.

Consultations are also being undertaken by the Government since 2014 as part of remedial actions from Board Recommendations based on the findings of the Compliance Review Panel (CRP).

The CRP annual monitoring report published in April 2015 concludes partial compliance of recommendations 1, 2, 3, 4 and 6 and not in compliance, as yet, on recommendation 5 (debt workout). ADB is working closely with the Government on compliance aspects according to the agreed timeframe.

The second annual monitoring mission by CRP was undertaken in April 2016.

Business Opportunities

Consulting Services The consultants are selected by the Government in accordance with ADB's Guidelines on the Use of Consulting Services, using the quality and cost based selection procedure.
Procurement The works are procured under the international competitive bidding procedures of ADB's Guidelines on Procurement.

Responsible Staff

Responsible ADB Officer Munawar Alam
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Ministry of Public Works and Transport
PMUHWY1@CAMNET.COM.KH
1st Floor West Building,
Corner Norodom Boulevard Street 106
Phnom Penh, Cambodia

Timetable

Concept Clearance 13 May 2009
Fact Finding 29 Jul 2009 to 07 Aug 2009
MRM 10 Sep 2009
Approval -
Last Review Mission -
PDS Creation Date 03 Jul 2010
Last PDS Update 10 May 2016

GrantĀ 0187-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Dec 2009 05 Oct 2010 05 Jan 2011 30 Sep 2013 31 Mar 2015 20 Apr 2016
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 22.46 Cumulative Contract Awards
ADB 0.00 15 Dec 2009 0.00 21.20 94%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 22.46 15 Dec 2009 0.00 21.20 94%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Unsatisfactory - Partly satisfactory - -

LoanĀ 2602-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Dec 2009 02 Mar 2010 21 Apr 2010 30 Sep 2013 30 Jun 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 47.10 Cumulative Contract Awards
ADB 42.00 15 Dec 2009 36.03 0.00 93%
Counterpart 5.10 Cumulative Disbursements
Cofinancing 0.00 15 Dec 2009 35.55 0.00 92%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Partly satisfactory - Satisfactory - -

 
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