Cambodia : Greater Mekong Subregion Southern Economic Corridor Towns Development Project

Project Name

Greater Mekong Subregion Southern Economic Corridor Towns Development Project

Project Number

43319-033

Country / Economy

• Cambodia

Project Status

Closed

Project Type / Modality of Assistance

• Grant
• Loan

Source of Funding / Amount

Grant 0334-CAM: Greater Mekong Subregion Southern Economic Corridor Towns Development Project

Source	Amount
Urban Environmental Infrastructure Fund under the Urban Financing Partnership Facility	US$ 1.50 million

Grant 0335-CAM: Greater Mekong Subregion Southern Economic Corridor Towns Development Project

Source	Amount
Strategic Climate Fund	US$ 4.40 million

Loan 2983-CAM: Greater Mekong Subregion Southern Economic Corridor Towns Development Project

Source	Amount
Asian Development Fund	US$ 37.00 million

Loan 8265-CAM: Greater Mekong Subregion Southern Economic Corridor Towns Development Project

Source	Amount
Strategic Climate Fund	US$ 5.00 million

Strategic Agendas

• Environmentally sustainable growth
• Inclusive economic growth
• Regional integration

Drivers of Change

• Gender Equity and Mainstreaming
• Governance and capacity development
• Partnerships

Sector / Subsector

• Water and other urban infrastructure and services / Other urban services - Urban flood protection - Urban policy, institutional and capacity development - Urban sewerage - Urban solid waste management

Gender

Effective gender mainstreaming

Description

The project will enhance the competitiveness of towns along the Southern Economic Corridor (SEC). The project will transform the corridor towns of Battambang, Bavet, Neak Loeung, and Poipet in Cambodia into economic hubs by improving urban-environmental infrastructure and strengthening institutional capacities of provincial and local authorities. The productivity of economic enterprises in these towns will be significantly improved since there will be increased climate resilience through flood control measures. The environment will be improved through clean wastewater, disposal of solid waste, and enhanced mobility on improved urban roads. The project will provide environmental infrastructure for wastewater treatment and solid waste management, which will, among others, help to reduce the carbon footprint of these towns, making them cleaner and greener, and more livable. The project will finance 8 subprojects in these towns based on Mid-Term Review Mission in November 2018.

Project Rationale and Linkage to Country/Regional Strategy

Considerable investments of the government and the ADB in the development of priority transport corridors have established the physical connectivity among the GMS countries, providing the foundation for more efficient movement of people, goods, and services. The towns and cities along the SEC, which links Cambodia and Viet Nam, are well positioned to serve as dynamic centers of investment and inclusive economic growth for the country and the GMS region. The strategic location of the corridor towns provides the stimulus for increased trade and investments along the transport routes. Amidst these development opportunities, the rapid growth of the urban population, and the expansion of urban areas, several corridor towns are now faced with the daunting task of meeting the demands for urban infrastructure and essential support services.

The planned development of these towns will induce more regulated and sustainable growth, attracting public sector investments in urban environment infrastructures and encouraging private sector interest in urban economic infrastructures. The proposed project will strengthen the economic competitiveness and investment attractiveness of the towns. The functions of small- and medium-sized towns are crucial in terms of their role as markets and transport hubs for agricultural produce from rural areas, as well as centers for production and distribution of goods and services to urban areas.

This project is Phase 1 of a long-term engagement in towns of the GMS economic corridors, and is aligned with the strategic framework of the GMS Economic Cooperation Program, 20122022, approved by the 4th GMS Summit on 19 to 20 December 2011. It is also in line with the Cambodia Country Partnership Strategy and supports the ADB Urban Operational Plan (2012-2020) and the water operational plan (2011-2020).

The participating corridor towns in Cambodia now face the pressing task of coping with the demands of rapidly growing and expanding urban areas. The ambition of local authorities is to plan and manage urban growth using an integrated approach, operate and maintain urban environmental and economic infrastructure, and efficiently deliver municipal services. Despite policy reforms to promote decentralization, local institutional capacity has not kept pace with the urban sector development and economic growth. With increasing trade and traffic flows, there is an urgent need to strengthen the capacities of the corridor towns to manage local economic development in an environmentally sustainable manner.

Impact

The towns of Battambang, Bavet, Neak Loeung, and Poipet will become centers of economic activity in the Southern Economic Corridor by 2024.

Project Outcome

Description of Outcome

Urban infrastructure improved and climate resilience enhanced in Battambang, Bavet, Neak Loeung, and Poipet

Progress Toward Outcome

Seven out of eight investment subprojects are completed and are climate resilient. City areas which used to be flooded before the rehabilitation and expansion of the drainage networks financed under this project are no longer flooded.

Implementation Progress

Description of Project Outputs

1. SLEDP adopted and implemented in Battambang, Bavet, Neak Loeung, and Poipet

2. Priority urban infrastructure investments implemented

3. Institutional capacities strengthened

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

Output 1. Preliminary strategic local and economic development plans (SLEDPs) adopted by the provincial authorities in February 2017. These preliminary SLEDPs are being updated.

Output 2. Seven out of eight investment subprojects are completed: (i) three material recovery facilities in Poipet, Battambang and Bavet; (ii) Battambang Storm Drainage; (iii) Bavet Urban Road; (iv) Poipet Storm Drainage; and (v) Bavet Storm Drainage. Construction of Neak Loeung Flood Control dike is ongoing.

Output 3. All 24 mandatory trainings and two additional trainings on operations and maintenance of material recovery facilities have been completed.

Geographical Location

Battambang, Bavet, Neak Leung, Paoy Pet

Safeguard Categories

Environment

B

Involuntary Resettlement

A

Indigenous Peoples

C

Summary of Environmental and Social Aspects

Environmental Aspects

The project is Environment Category B, as the proposed sub-projects are not expected to cause irreversible adverse environment impacts. The IEEs conducted for all the project cities, identified potential impacts and mitigation measures to be implemented through environment management plans (EMPs). The IEEs are in accordance with the ADB's Safeguard Policy Statement (SPS), and the applicable environment regulations of the government. The IEEs indicate that the potential impacts of the sub-projects are primarily construction related and can be mitigated with good practices in construction outlined in the EMPs. At the detailed design stage, when the EMPs are updated, the final receiving environments for the wastewater treatment plants and landfill will be reviewed to ensure that local groundwater and human uses of the affected areas are not adversely affected. The EMPs will be finalized during the detailed design stage of the project. The final EMPs, cleared by the ADB, shall form part of the contract bidding documents. The adequate incorporation of environmental considerations during design and allocation of sufficient budget for O&M/R will mitigate the potential adverse impacts during operation. Effective environment monitoring at all stages of the sub-project implementation will be ensured. In compliance with ADBs information disclosure and consultation requirements, the safeguard documents will be posted on ADB's website. A grievance redress mechanism was developed and included in the safeguard document to facilitate resolution of complaints regarding the performance of the project.

Involuntary Resettlement

The safeguard category for involuntary resettlement (IR) is A as one of the subprojects (flood control in Neak Loeung) has significant IR impacts. Three resettlement plans (RPs) have been prepared for the subprojects, which will trigger land acquisition and resettlement (LAR) impacts. They are (i) Battambang wastewater treatment and flood protection; (ii) Poipet wastewater treatment and (iii) Neak Loeung flood control. Six due diligence studies were also prepared for sub-projects without LAR impacts, which include (i) Urban Road, Bavet, (i) Wastewater, Bavet, (iii) Solid Waste Management, Poipet, (iv) MRF, Bavet, (v) MRF, Poipet (vi) MRF, Battambang.Resettlement documents were prepared in consultation with local communities according to ADB's SPS and Cambodian laws and regulations. In compliance with ADB's information disclosure and consultation requirements, the RPs will be posted on the ADB website. A grievance redress mechanism will help to facilitate resolution of complaints regarding project performance. The RPs will be updated and disclosed after detailed design and cleared by ADB prior to contract awards.

Indigenous Peoples

The Cambodian population consists of Khmer, Cham, Chinese, Vietnamese, and a smaller number of Lao and hill tribes. In the Cambodian language. None of the 24 indigenous people (IP) groups are resident in the participating corridor towns. For all the project towns, the surveys undertaken for the poverty and social assessments (PSAs) identified that the subproject areas are predominantly Khmer. The beneficiary communities, which include some non-indigenous minorities, are supportive of the subprojects, can see clear and direct benefits for them, and understand that the adverse impacts are manageable and can be properly mitigated. The social assessment confirms the conclusion that the project categorization is C, which does not require the preparation of an IP development plan.

Stakeholder Communication, Participation, and Consultation

During Project Design

Institutional stakeholders participated in the design of the project, including technical design, institutional framework, monitoring and evaluation as well as measures to enhance project benefits and mitigate negative impacts. Communities and affected individuals were consulted on all project activities which affect them. The project team conducted numerous consultations with the project stakeholders during the project processing stage

During Project Implementation

Such consultation continues throughout the project cycle until implementation and evaluation stages. The project team have conducted consultations with the relevant local authorities and project beneficiaries during the review missions and site visits.

Business Opportunities

Consulting Services

The Project will provide management and implementation support to the EA through the project management unit (PMU). This is intended to ensure that project implementation will fully comply with the national government regulations and with ADB's policies and operational requirements in terms of financial management, fund disbursement, procurement procedures, social and environment safeguards, and operation and maintenance (O&M).

A team of international and national consultants will be recruited by the EA to provide management support during Project implementation. The consultants will be engaged on intermittent input basis during the 6-year Project period. The recruitment of the consultants will be undertaken in accordance with ADB's Guidelines on the Use of Consultants.

Procurement

All procurement of goods, works and consulting services will be in accordance with ADB's Procurement Guidelines. International competitive bidding (ICB) will be applied for civil works packages exceeding $1,000,000 equivalent.

The procedures to be followed for national competitive bidding shall be those set forth for the 'National Competitive Bidding method in the Government's Procurement Manual of September 2005 issued under Decree Number 14 ANKR.BK dated 26 February 2007 with the clarifications and modifications described in the following paragraphs required for compliance with the provisions of the Procurement Guidelines.

Contact

Responsible ADB Officer

Gill, Anthony Robert

Responsible ADB Department

Southeast Asia Department

Responsible ADB Division

Cambodia Resident Mission (CARM)

Executing Agencies

Ministry of Public Works and Transport

Timetable

Concept Clearance

-

Fact Finding

21 Nov 2011 to 09 Dec 2011

MRM

11 Sep 2012

Approval

10 Dec 2012

Last Review Mission

-

PDS Creation Date

21 Oct 2009

Last PDS Update

26 Jan 2022

Funding

Grant 0334-CAM

Grant 0335-CAM

Loan 2983-CAM

Loan 8265-CAM