Cambodia: Restructuring of the Railway in Cambodia

Sovereign Project | 37534-012

Summary

The objectives of the project are: (i) to increase the efficiency of transport services within Cambodia and to its neighbors by providing efficient alternative routes and modes of transport for Cambodia's import and export trade; (ii) to reduce the cost of road maintenance and traffic risks by transferring heavy and dangerous cargo to a safe and reliable railway system; (iii) to pave the way for further subregional integration in the future by facilitating achievement of the Singapore-Kunming railway link; and (iv) to increase the transparency and eliminate the current financial losses from the railway by restructuring the railway into a Public Private Partnership, and by establishing a transparent regulatory framework for the railway.

Latest Project Documents


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name Restructuring of the Railway in Cambodia
Project Number 37534-012
Country Cambodia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 4645-CAM: Restructuring of the Railway in Cambodia
A.T.F. - French T.A. Grant US$ 1.50 million
TA 4645-CAM: Restructuring of the Railway in Cambodia (Supplementary)
Technical Assistance Special Fund US$ 250,000.00
TA 4645-CAM: Restructuring of the Railway in Cambodia (2nd Supplementary)
Regional Cooperation and Integration Fund US$ 600,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector Transport - Rail transport (non-urban)
Gender Equity and Mainstreaming No gender elements
Description The objectives of the project are: (i) to increase the efficiency of transport services within Cambodia and to its neighbors by providing efficient alternative routes and modes of transport for Cambodia's import and export trade; (ii) to reduce the cost of road maintenance and traffic risks by transferring heavy and dangerous cargo to a safe and reliable railway system; (iii) to pave the way for further subregional integration in the future by facilitating achievement of the Singapore-Kunming railway link; and (iv) to increase the transparency and eliminate the current financial losses from the railway by restructuring the railway into a Public Private Partnership, and by establishing a transparent regulatory framework for the railway.
Project Rationale and Linkage to Country/Regional Strategy

The association of South-East Asian Nations (ASEAN) has asked for ADB?s support in establishing a rail link between Singapore and Kunming, which is an ASEAN flagship project. The strategy for the project is gradual rehabilitation and upgrading of the constituent national railway lines to the extent implied by national development priorities, and construction of missing rail links. A central part of the flagship project is the railway through Cambodia and Viet Nam, which provides the strategic link between the existing railway networks in Singapore, Malaysia, and Thailand in the west, and the railway networks in Viet Nam and Yunnan province in the east. The railway link through Cambodia is also an integral part of the Greater Mekong Subregion (GMS) southern economic corridor, which is one of 11 flagship programs under the GMS subregional economic cooperation.

The Cambodia Transport Sector Strategy Study concluded that, as a result of many years of war, the railway was in poor condition and would need to be rehabilitated before the full benefits from rail traffic could be realized. Access to safe and regular regional railway traffic would benefit Cambodia in several ways: (i) by reducing heavy truck traffic on the road network, thus reducing future maintenance and expansion costs; (ii) by reducing the transport of fuel and other dangerous cargoes by road, thus reducing road traffic risks; (iii) by providing cheap transport for bulk cargoes such as cement and fuel, thus reducing the cost of importing and distributing such basic products; and (iv) by increasing the competitive pressure on existing transport systems, primarily road transport and the port in Sihanoukville through the establishment of alternative routes and means of transport, which would help to reduce the scope for monopoly pricing.

The study suggested that railway operations in Cambodia could become financially viable if the railway were rehabilitated and restructured with decisive private sector involvement. Finally, the strategy study noted that railway operations were not financially viable under current circumstances and could not generate the funds required for rehabilitation.

Impact
Project Outcome
Description of Outcome The long-term sustainability of the railway is secured and the Government?s deficit coverage eliminated.
Progress Toward Outcome Railway restructuring reform ongoing.
Implementation Progress
Description of Project Outputs

1. An approved strategy and action plan for restructuring of the railway

2. A PPP-based commercial railway operator in place

3. Railway passenger services operating in an efficient and sustainable manner

4. A depository authority holding the railway's land and fixed

infrastructure in place

5. An independent transport regulator in place

6. Full public documentation of the process

Status of Implementation Progress (Outputs, Activities, and Issues)

Restructuring strategy prepared and policy/principles for restructuring the railway confirmed by the Government in a letter to ADB dated 17 July 2006.

Agreement in Principle between the Government and the selected Railway Operator signed on 13 December 2007. Concession agreement signed between the government and the winning bidder on 12 June 2009. Concession Agreement declared effective on 22 October 2009.

TA completed 31 March 2011.

Geographical Location Greater Mekong Subregion
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services An international firm of consultant will provide transaction advisory services and implement restructuring of the railway.
Procurement tbd
Responsible ADB Officer Peter Broch
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Ministry of Public Works and TransportH.E. Tauch Chankosalcmc_info@online.com.kh,Corner Norodom Blvd & 106 Street Phnom Penh, Cambodia
Timetable
Concept Clearance 10 Mar 2005
Fact Finding 08 Mar 2005 to 11 Mar 2005
MRM -
Approval 14 Sep 2005
Last Review Mission -
PDS Creation Date 03 May 2006
Last PDS Update 02 Sep 2011

TA 4645-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Sep 2005 08 Nov 2005 08 Nov 2005 30 Sep 2007 31 Mar 2011 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
850,000.00 1,500,000.00 0.00 0.00 0.00 0.00 2,350,000.00 14 Sep 2005 2,216,437.06
Title Document Type Document Date
Restructuring of the Railway in Cambodia TA Completion Reports Oct 2011
Restructuring of the Railway in Cambodia Consultants' Reports Apr 2006
Restructuring of the Railway in Cambodia Technical Assistance Reports Aug 2005

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.