Cambodia: Rural Roads Improvement Project III

Sovereign Project | 42334-018

The project will rehabilitate about 360 kilometers (km) of rural roads in five provinces (Kampong Cham, Kratie, Prey Veng, Svay Rieng, and Tboung Khmum) to paved condition. The rehabilitated roads will provide poor rural provinces with a disaster and climate-resilient, safer, and cost-effective rural road network with all-year access to markets and other social services. The proposed RRIP III will continue to support sustainability of this rural road network through: (i) a rural road maintenance regime in the Ministry of Rural Development (MRD); and (ii) a community-based road safety program. These initiatives have already been established by MRD through earlier ADB-financed projects, RRIP and RRIP II. The project will also support an HIV/AIDS and human trafficking awareness and prevention program (HHTPP). The feasibility study of the proposed project was completed through the ongoing loan for RRIP II.

Project Name Rural Roads Improvement Project III
Project Number 42334-018
Country / Economy Cambodia
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0581-CAM: Rural Roads Improvement Project III
Asian Development Fund US$ 1.50 million
Loan 3678-CAM: Rural Roads Improvement Project III
Concessional ordinary capital resources lending US$ 58.50 million
Loan: Rural Roads Improvement Project III
Export-Import Bank of Korea US$ 60.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Sector / Subsector

Transport / Road transport (non-urban)

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will rehabilitate about 360 kilometers (km) of rural roads in five provinces (Kampong Cham, Kratie, Prey Veng, Svay Rieng, and Tboung Khmum) to paved condition. The rehabilitated roads will provide poor rural provinces with a disaster and climate-resilient, safer, and cost-effective rural road network with all-year access to markets and other social services. The proposed RRIP III will continue to support sustainability of this rural road network through: (i) a rural road maintenance regime in the Ministry of Rural Development (MRD); and (ii) a community-based road safety program. These initiatives have already been established by MRD through earlier ADB-financed projects, RRIP and RRIP II. The project will also support an HIV/AIDS and human trafficking awareness and prevention program (HHTPP). The feasibility study of the proposed project was completed through the ongoing loan for RRIP II.
Project Rationale and Linkage to Country/Regional Strategy

Sector context. The principal mode of transport in Cambodia is by road. The road network of about 61,500 km includes (i) about 7,260 km of national roads (primary national highways), (ii) about 9,000 km of provincial roads (secondary national highways), and (iii) about 45,200 km of rural roads. The Ministry of Public Works and Transport manages the national and provincial roads, while MRD manages the rural roads.

By the early 1990s, several years of civil war had severely deteriorated the country's road network. Since 1992, with assistance from ADB and other multilateral and bilateral development partners, the government focused on rehabilitating the core national infrastructure required for the economy to develop in a sustainable manner. As of 2017, development efforts over the past 25 years have brought the paved national and provincial road network to about 8,526 km in length, or about 52.3% of the total national and provincial road network.

However, the rural road network needs further improvement as well. Only about 2,000 km, or 4.4% of rural roads have been paved as of 2017. Rural roads have a daily traffic volume of about 200 3,000 passenger car units, and motorcycles and three-wheel vehicles account for more than 80% of the traffic. The annual growth rate of the traffic volume is 4% 6% and is projected to increase by 7% 12% by 2025, requiring more paved rural roads to accommodate future traffic.

Because of rapid economic development and activity, overloading of cargo vehicles has been the major cause of road damage in Cambodia since 2007. This is also a significant issue for rural roads because trucks that haul agricultural products and carry quarry materials for construction tend to be overloaded.

Cambodia experiences frequent flooding during the wet season, severely damaging most of the laterite rural roads and making them impassable. Such damage causes significant livelihood losses for rural residents and entails repair costs. Thus, road design requires structural changes to specifically deal with disaster risk and adapt to future precipitation increases caused by climate change.

In 2009, ADB initiated a systematic approach to rehabilitating rural roads to paved condition and helping the government develop a sustainable road network. In 2010, ADB approved RRIP, for rehabilitating 505 km of rural roads with four outputs: (i) improved road asset management; (ii) increased road safety and safeguards; (iii) enhanced climate change adaptation; and (iv) efficient project management. This first project was cofinanced in parallel by (i) the Government of the Republic of Korea, through the Export-Import Bank of Korea (KEXIM), which financed the civil works of rehabilitating 280 km of rural roads and related consulting services; and (ii) the Nordic Development Fund (NDF), which financed the climate change adaptation output.

In 2016, after 5 years of project implementation, MRD successfully completed all ADB- and KEXIM-financed outputs on time and within budget, building substantial capacity in multiple areas of project implementation. Capacity building was highly notable for the Social and Environment Office (SEO), which was established in 2012 under MRD to implement social and environment safeguards, road safety, HIV prevention activities, and gender-related activities.

MRD showed strong ownership in designing the succeeding project using mostly the loan proceeds of the first project. ADB approved RRIP II in 2014 and additional cofinancing in 2015. RRIP II will rehabilitate 1,200 km of rural roads. Its cofinanciers are Agence Fran aise de D veloppement (French Development Agency), the Government of Australia, KEXIM, and the NDF. Both RRIP and RRIP II followed a similar design with similar outputs and aimed to provide reliable all-year road access from provincial towns and agricultural rural areas to markets, employment centers, and social services. RRIP covered seven rural provinces, with RRIP II including an additional three beneficiary provinces. Implementation of RRIP II is on track.

Impact The needs of the population served and economic development promoted
Project Outcome
Description of Outcome All-weather access in rural areas of the 5 project provinces improved
Progress Toward Outcome

All 8 civil works contracts have been awarded and civil works are ongoing. The cumulative overall project progress as of 31 July 2021 is 32.20% which is 5.72% ahead of planned progress.

The consultant commenced services on 1 April 2019. Detailed design of project roads of 5 civil works contracts were completed. The consultant's services are ongoing.

The civil works contract CW-B2 was completed by 31 October 2020 and certificate of completion was issued by the EA on 23 December 2020. As of 31 July 2021, the actual progress achieved under each contract was CW-A, 49.38%; CW-B1, 30.63%; CW-C1, 24.26%, CW-C2, 26.77%, CW-C3, 20.11%; CW-D, 18.66% and CW-E, 37.81%.

On 22-24 March 2021, ADB held a virtual loan review mission to assess overall project implementation.

Implementation Progress
Description of Project Outputs

Rural roads improved

Rural road asset management improved

Awareness of road safety and potential social problems strengthened

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

For Output 1, all 7 ongoing civil works contracts have achieved satisfactory progress. The civil works contract CW-B2 was completed by 31 October 2020 and certificate of completion was issued by the EA on 23 December 2020. As of 31 July 2021, the actual progress achieved under each ongoing contract is as follows: CW-A, 49.38%; CW-B1, 30.63%; CW-C1, 24.26%, CW-C2, 26.77%, CW-C3, 20.11%; CW-D, 18.66% and CW-E, 37.81%.

All civil work contracts employed the subcontractors for HHTPP awareness training. Due

to the COVID-19 cases in the provinces, gathering of people for meeting and training all

over Cambodia have been challenging. Thus, only small group training had been conducted. The CSSD (subcontractor of Contract CW-A and CW-E) and CDOH (subcontractor of CW-D) implemented HIV/AIDS and human trafficking awareness training during this month.

For Output 2, actual progress as of 31 July 2021 is 5%.

For Output 3, actual progress as of 31 July 2021 is 14.20%. On 8 July 2021 and 23 July 2021, Social Environment Office staff met with local authorities to request their cooperation with raising awareness of road safety program.

Geographical Location Phnom Penh
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is confirmed as category B. An IEE and an EMP, that covers all project roads, has been prepared. Works will be limited to the existing right of way so negative construction environmental impacts will be short-term and localized, such as access and traffic disruption, noise and dust. Potentially sensitive environmental receptors along road corridors, such as villages, schools, pagodas, river crossings have been identified and specific mitigation measures identified.MRD through their Social and Environmental Office (SEO) and Provincial Departments of Rural Development (PDRDs) are responsible for implementation of the EMP with technical support from DDIS Environmental Specialist. The SEO have built up capacity through the implementation of the two previous projects (RRIP and RRIP II) and identified priority training needs for RRIP3 during consultation meetings with ADB.
Involuntary Resettlement The project is categorized as C for involuntary resettlement impacts. Based on preliminary design, a poverty and social assessment due diligence was carried out. Additional resettlement due diligence with walk-over surveys has been carried out to confirm that there will be no land acquisition and resettlement impacts, as the construction works will be located within the boundaries of existing right of way assigned to rural roads and owned by the MRD, on government land. The MRD prepared the community participation framework (CPF) with criteria for voluntary land donation, in some cases of minor realignment, which will require narrow strips of land to be made available. Impact on structures will be avoided through road design modifications. Specific requirements for meaningful consultations with communities are provide in the CPF. The Government ensured that the project would not finance any road entailing involuntary resettlement or land acquisition, and that the due diligence report will be updated upon completion of the detailed engineering design to ensure no resettlement or land acquisition impact and submitted to ADB for review and concurrence.
Indigenous Peoples The project is categorized as C for indigenous peoples. The Government ensured that the project would not finance any road entailing impact on ethnic minorities or indigenous peoples based on the due diligence. The due diligence report will be updated upon completion of detailed engineering design to ensure no impact on ethnic minorities and indigenous peoples and submitted to ADB for review and concurrence. The communities will largely benefit from the improved paved rural road resulting from such benefits as reduced exposure to dust and improved health.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services All consultants will be recruited according to ADB''s Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Procurement All procurement of goods and works will be undertaken in accordance with ADB''s Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Responsible ADB Officer Long, Piseth Vou
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Cambodia Resident Mission
Executing Agencies
Ministry of Rural Development
H. E. Try Meng
[email protected]
169 Corner Road Soviet Blvd.
Phnom Penh
Cambodia
Timetable
Concept Clearance 12 Feb 2018
Fact Finding 05 Feb 2018 to 16 Feb 2018
MRM 18 Apr 2018
Approval 29 Jun 2018
Last Review Mission -
Last PDS Update 20 Sep 2021

Grant 0581-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jun 2018 06 Jul 2018 29 Aug 2018 30 Jun 2026 - 09 Jun 2020
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1.50 Cumulative Contract Awards
ADB 1.50 11 Aug 2022 1.50 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 11 Aug 2022 1.50 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 3678-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jun 2018 06 Jul 2018 29 Aug 2018 30 Jun 2026 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 64.50 Cumulative Contract Awards
ADB 58.50 11 Aug 2022 53.03 0.00 91%
Counterpart 6.00 Cumulative Disbursements
Cofinancing 0.00 11 Aug 2022 34.44 0.00 59%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

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.

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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.

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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

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The Access to Information Policy (AIP) 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.

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Tenders


Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
CW-C1: IMPROVE 2 ROAD, 30.0 KM (PREY VENG) Loan 3678 21 Dec 2020 BANTEAY SREI ENGINEERING AND CONSTRUCTION | SANGKAT CHEYCHUMNEAS, KHAN DAUN PHNOM PENH, CAMBODIA CAMBODIA Ministry of Rural Development 4,645,950.97 4,645,950.97
CW-C2: IMPROVE 2 ROADS, 28.1 KM (PREY VENG) Loan 3678 21 Dec 2020 BANTEAY SREI ENGINEERING AND CONSTRUCTION | SANGKAT CHEYCHUMNEAS, KHAN DAUN PHNOM PENH, CAMBODIA CAMBODIA Ministry of Rural Development 4,745,644.95 4,745,644.95
CW-3: IMPROVE 1 ROAD, 15.1 KM (PREY VENG) Loan 3678 14 Oct 2020 BORE KHMER CONSTRUCTION DEVELOPMENT CO., LTD | #9 E2, STREET 128, SANGKAT MONOROM, KHAN 7, MAKARA, PHNOM PENH, CAMBODIA CAMBODIA Ministry of Rural Development 1,966,836.39 1,966,836.39
IMPROVE 1 ROAD, 61.2 KM (KRATIE) Loan 3678 17 Aug 2020 BENG MENG GROUP CO., LTD | #023 STREET PREAH NORODOM BLVD, KHAN CHOMKAMON, PHNOM PENH, CAMBODIA CAMBODIA Ministry of Rural Development 8,914,545.60 8,914,545.60
CW-D: IMPROVE 4 ROADS, 57.2 KM (SVAY RIENG) Loan 3678 06 Aug 2020 TAN KIM ENG CO., LTD. | SEREI SOPHORN, BENTEAY, MEANCHEY PROV CAMBODIA CAMBODIA Ministry of Rural Development 8,955,210.35 8,955,210.35
CW-B2 IMPROVE 2 ROADS, 23.7 KM IN TBOUNG KHMUM Loan 3678 03 May 2019 UNG SIM SIA CONSTRUCTION CO. LTD. | 97 STREET 143 SANGKAT OLYMPIC KHAN CHAMKAR MORN, PHNOM PENH CAMBODIA Ministry of Rural Development 2,481,668.20 981,668.20
CW-B2 IMPROVE 2 ROADS 23.7 KM IN TBOUNG KHMUM Grant 0581 26 Apr 2019 UNG SIM SIA CONSTRUCTION CO. LTD. | 97 STREET 143 SANGKAT OLYMPIC KHAN CHAMBAR MORN PHNOM PENH CAMBODIA Ministry of Rural Development 1,500,000.00
CS1 CONSULTING SERVICES FOR IMPLEMENTATION Loan 3678 26 Mar 2019 KOREA CONSULTANTS INTERNATIONAL CO. LTD. | 7F SAERUNG TECHNOTOWN15, 401 SIMINDAE-RO DONGAN-GU, GYEONGGI, KOREA KOREA, REPUBLIC OF Ministry of Rural Development 3,392,300.00 3,392,300.00

Procurement Plan