Cambodia: Livable Cities Investment Project

Sovereign Project | 53199-001

The project will focus on enhancing urban planning, building community resilience, and providing infrastructure that will facilitate long-term sustainable and economic growth. The project is consistent with the strategic goals set in the government's RSIV and ADB Strategy 2030. It supports Strategy 2030's key operational priorities of tackling climate change, making cities more livable, strengthening governance and institutional capacity, and accelerating gender equality. It is also aligned with the draft Country Partnership Strategy 2019-2023, the GMS Urban Development Strategic Framework 2015-2022, and Cambodia's Industrial Development Policy (2015-2025), which provides the overarching vision that guides the Country Partnership Strategy.

Project Details

  • Project Officer
    Swain, Wei Kim
    Southeast Asia Department
    Request for information
  • Approval Date
    18 November 2021
  • Country
    Cambodia
  • Sector
    • Water and other urban infrastructure and services
Project Name Livable Cities Investment Project
Project Number 53199-001
Country Cambodia
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 4143-CAM: Livable Cities Investment Project
Concessional ordinary capital resources lending US$ 180.00 million
TA 6830-CAM: Technical Support and Capacity Development in Urban Planning
Japan Fund for Poverty Reduction US$ 2.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Sector / Subsector

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

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will focus on enhancing urban planning, building community resilience, and providing infrastructure that will facilitate long-term sustainable and economic growth. The project is consistent with the strategic goals set in the government's RSIV and ADB Strategy 2030. It supports Strategy 2030's key operational priorities of tackling climate change, making cities more livable, strengthening governance and institutional capacity, and accelerating gender equality. It is also aligned with the draft Country Partnership Strategy 2019-2023, the GMS Urban Development Strategic Framework 2015-2022, and Cambodia's Industrial Development Policy (2015-2025), which provides the overarching vision that guides the Country Partnership Strategy.
Project Rationale and Linkage to Country/Regional Strategy

Cambodia has made significant strides in economic development. Its per capita gross domestic product increased five times from $300 in 2000 to $1,500 in 2018.1

Cambodia's economic growth in 2018 remained strong, estimated at 7.3% and fueled by increased tourism and strong foreign direct investment.

Cambodia has experienced steady urban growth over the last decade. Since 2008, the urban population has grown at a rate of 3.4% per annum and it currently

represents approximately 23% of the total population. By 2030, the urban population is projected to represent 30% of the total population.3 Urban development will transform the current rural based economy of Cambodia by providing opportunities for the country to increase employment and rural-urban interactions, improve wages, and reduce the percentage of the population living in absolute poverty. To date, the urban population has concentrated around the capital city of Phnom Penh. However, this is slowly spreading to secondary cities such as Poipet, Bavet, Kampot, Battambang, Siem Reap, Sihanoukville, and Kep.

The government has identified a need to strengthen public institutions and human and financial capacity; promote employment; reduce income inequality; and address

the growing requirements for public services, including infrastructure. This is emphasized in the government's Rectangular Strategy Phase IV (RSIV), which promotes strategies to accelerate governance reform through institutional and capacity building, and promotion of integrity in public administration, work efficiency and private sector governance. The RSIV is supported by four rectangles with the urban sector fitting into the fourth rectangle of inclusive and sustainable development. 4 It identifies a priority to (i) improve management of urbanization and develop infrastructure master plans that supports the provision of critical infrastructure; (ii) minimize environmental impacts; and (iii) develop the capacity to manage climate change and adopt principles of smart cities, green growth and sustainable development.

Due to rapid urbanization, communities have been established in areas that are not equipped with the basic and essential infrastructure. The government has recognized the growing trends and demands of urbanization and has identified a need to invest in long term land use and urban planning. The Law on Land Use Planning, Urbanization and Construction which sets requirements for development plans and land use plans was enacted in 1994.5 However, despite the frameworks and policies guiding urban and land use planning, urbanization in Cambodia remains largely uncoordinated and unregulated.

The provision of sustainable urban infrastructure and services is critical to promoting economic opportunities, minimizing environmental degradation, improving livability to the residents and reducing exposure to the effects of climate change and extreme events. The state of urban infrastructure and services in the country is described below:

(i) The national access to improved water supply6 across the country in 2016 was 61.1%, of which 29.5% have access to piped water. For urban areas (excluding Phnom Penh), about 78.8% has access to improved water source, but only 56.8% has access to piped water

(ii) Countrywide, 72.9% have access to improved toilet facilities, where a large majority are connected to a septic system and only 13.4% have access to a wastewater

network. In urban areas (excluding Phnom Penh), 87.9% have access to improved toilet facilities, but only 15.3% is serviced through a wastewater network.

(iii) Drainage network and solid waste management (SWM) remain underdeveloped. There are no sanitary landfills and solid waste collection services (generally outsourced to private contractors) are also limited. Uncollected wastes are either burnt or dumped in open areas and waterways, and the lack of a functioning drainage

network and SWM exacerbates the impacts of flooding in many cities and towns.

Responsibility for the water supply and sanitation sector is fragmented, requiring cooperation among ministries and overcoming structural and organizational weaknesses:

(i) The Ministry of Industry and Handicraft is responsible for urban water supply and service delivery is entrusted to the provincial waterworks (PWWs) under provincial

administration.

(ii) The Ministry of Public Works and Transport (MPWT) is responsible for urban sanitation, while the provincial wastewater units (PWUs) under provincial administration oversee operation and maintenance.

(iii) However, the PWWs and PWUs have limited autonomy provincial waterworks operate using their revenues from water tariffs while PWUs operate with limited revenues as the recovery of sanitation tariffs is mixed with the provincial revenues.

The secondary cities of Poipet, Bavet, Kampot, and Battambang were selected due to its economic potential and location at key trade and tourism zones and critical for regional cooperation and integration. Permanent and transient population in these cities have increased recently and the capacity of existing basic urban infrastructure is affecting its ability to meet its potential as key economic and tourism centers. Poipet and Bavet were identified as economic hotspots for further development in the Greater Mekong Subregion and all four cities build on previous ADB investments, which allows for continuity of work and further expansion of key urban infrastructure.

The government has adopted national targets for water supply and sanitation which is to achieve 100% service coverage for both water supply and sanitation by 2025. However, access to urban infrastructure and services in these cities is limited, and due to poor service access, it affects their ability to function as economic centers.

Obtaining full cost recovery on the assets, which includes water supply, sanitation, drainage, and solid waste, has been limited due largely to weak tariff structures. Battambang, Kampot, and Bavet are reliant on central government transfers for more than 90% of their fiscal needs, as local revenue, comprising local taxes and tariffs is only able to cover on average about 2.8% to 6.8% of the recurrent costs. Poipet, on the other hand, is financially independent and not reliant on any subsidy and transfers from the government.

Impact Livability of secondary cities improved
Project Outcome
Description of Outcome Access to urban infrastructure and services in participating cities improved.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Policy and regulatory environment improved.

Urban infrastructure improved.

Institutional effectiveness and governance improved.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Bavet, Kampot, Poipet
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement The project will involve the construction of infrastructure, such as wastewater treatment plants and solid waste landfills and there may be a need to address temporary and permanent resettlement impacts, as well as land acquisition. The extent of the impacts on resettlement and land acquisition will be determined and confirmed during the project preparation stage and the categorization will be reviewed once the subproject requirements have been confirmed.
Indigenous Peoples

Resettlement involving land acquisition or temporary and permanent resettlement may affect IP land, however the extent and significance of the impact will be confirmed during the project preparation by SURF.

It is unlikely that the project will involve any commercial development on traditional and customary lands, physical relocation from customary lands, or commercial development of cultural resources and knowledge of indigenous people. The community will be involved through consultation and community participation during the project preparation phase.

Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

Consulting services will be engaged through quality and cost-based selection (QCBS) method with a standard quality-cost ratio of 80:20 for high value packages such as the design and construction supervision consultants.

Advance contracting will apply to the procurement of the design and construction supervision consultants.

Procurement

All procurement of goods, works and consulting and non-consulting services will be undertaken in accordance with ADB's Procurement Policy (2017, as amended from time to time), the Procurement Regulations for ADB Borrowers (2017, as amended from time to time) and the Standard Operating Procedures for All Externally Financed Projects/Programs in Cambodia (2019, as amended from time to time).

Open competitive bidding (OCB) procedures will be used for the procurement of the civil works contracts and request for quotations (RFQ) will be used to procure readily available goods, such as vehicles.

Responsible ADB Officer Swain, Wei Kim
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Urban Development and Water Division, SERD
Executing Agencies
Min. of Land Mgt., Urban Planning & Construction
No. 771-773, M.V. Preah Monivong
Sangkat Boeng Trabek, Khan Chamkarmon
Phnom Penh, Cambodia
Ministry of Public Works and Transport
Mr. Vong Pisith
[email protected]
4th Floor Eastern Building
Corner Norodom Boulevard Street 106
Phnom Penh, Cambodia
Timetable
Concept Clearance 16 Oct 2019
Fact Finding 02 Jul 2021 to 09 Jul 2021
MRM 09 Sep 2021
Approval 18 Nov 2021
Last Review Mission -
Last PDS Update 18 Nov 2021

Loan 4143-CAM

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Nov 2021 - - 31 May 2028 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 194.10 Cumulative Contract Awards
ADB 180.00 29 Nov 2021 0.00 0.00 0%
Counterpart 14.10 Cumulative Disbursements
Cofinancing 0.00 29 Nov 2021 0.00 0.00 0%

TA 6830-CAM

Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 2,000,000.00 0.00 0.00 0.00 0.00 2,000,000.00 - 0.00

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 Access to Information Policy (AIP) 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.


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

None currently available.


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.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Design and Construction Supervision Consultants Firm - Consulting Active 25 Nov 2021 24 Dec 2021
53199-CAM: Livable Cities Investment Project Advance Notice Active 05 Nov 2021
TA Implementation Consultant Firm - Consulting Closed 26 Oct 2021 24 Nov 2021

Contracts Awarded

No contracts awarded for this project were found


Procurement Plan