Japanese ODA Loan

Ex-Ante Evaluation (for Japanese ODA Loan)

1．Name of the ProjectCountry: Kingdom of Cambodia
Project：National Road No.5 Improvement Project (Battambang – Sri Sophorn Section)
Loan Agreement: May 16, 2013
Loan Amount: 8,852 million yen
Borrower: The Royal Government of Cambodia
2．Background and Necessity of the Project(1) Current State and issues of transportation sector in Cambodia
In Cambodia, roadways are playing the central role in domestic transportation, accounting forapproximately 65 percent in passenger transport and 70 percent in freight transportation (2006,Ministry of Public Works and Transport: MPWT). Since Cambodia is located between Thailandand Vietnam, and in the center of the Southern Economic Corridor in the Greater Mekong
Subregion (GMS) development program led by the Asian Development Bank (ADB), the country
is expected to serve as transit point for regional distribution. The transportation infrastructure inCambodia has been restored since the end of civil war in 1991 with the support from internationalsocieties such as Japan, the World Bank (WB), and ADB. The core components of the road/bridge
infrastructure have almost been completed with the first round of repair/renovation. However,problems are seen in locations which were temporarily repaired after the civil war, as well as
roads with smaller width or inadequate specification. The existing roads need renovation in orderto accommodate the domestic/international distribution that is expected to increase along with thefuture economic growth in Cambodia. Among other things, the National Road No. 5 serves astrunk line in Cambodia, and is also expected to function as an industrial artery in the Mekong
Region as part of the Asian Highway 1 and the Southern Economic Corridor. Although the roads
targeted by this project underwent temporary repairs, the road quality is still low while traffic isincreasing. In order to meet the needs associated with the future economic growth in Cambodia
and the increase in domestic and international logistics, it is an urgent task to enhance thetransportation capacity and to improve the transportation efficiency.
(2) Development policy on transportation sector in Cambodia and the Priority of the Project
The Cambodian government designates the repair and renovation of infrastructure as a pillar in its“National Strategic Development Plan 2009-2013”, and considers the expansion of transportation
network and establishment of a complex, seamless transportation network as a priority issue. The
National Road Network Master Plan, prepared in 2006 with aid from JICA, positions therenovation of the National Road No. 5, part of the Southern Economic Corridor, as priority
project that contributes to national and regional integration.
(3) Japan and JICA’s Assistance Policy for and experience in transportation sector
The assistance for transportation sector is positioned as “renovation of economic infrastructure”
in “renovation of economic infrastructure”, the priority area of Japan’s assistance policy forCambodia. JICA conducted a development survey, “Cambodia National Road NetworkSurvey“ (2006), and implemented “The Project for the Improvement of the National Road No. 1(phases 1 - 3)” (2005-2010), and “The Project for Construction of Neak Loeung Bridge”(2010-2015) as grant aid program, and “The Strengthening of Construction Quality Control”(2009-2012) and “The Project on Capacity Enhancement of Environmental and Social
Considerations for Resettlement” (2010-2012) as technical cooperation, striving to renovate theinfrastructure and enhance the capacity of its maintenance/management. The Japanese
government is also proactively addressing the infrastructure development in the Mekong region
to strengthen the regional connectivity. Thus, the project, renovation of the zone that forms partof the Southern Economic Corridor, contributes to enhancing the connectivity.

1(4) Other Donors’ Activity
JICA as well as ADB and WB have provided various forms of cooperation for the road sector sofar. While aid from China is expanding recently, the Cambodian government expects aid fromJapan regarding the trunk line that serves as an industrial artery (ADB mainly supports for local
roads, and China mainly supports for two-digit national roads along the border with neighboringcountries).
・ADB ： “Road Asset Management Project” (2008-2013),“Northwestern RuralDevelopment Project” (2011-2013)
・WB： “Provincial and Rural Infrastructure Project” (2004-2010),“Road AssetManagement Project” (2008-2013)
・China ：“Prek Kdam Bridge Construction Project” (2007-2010), “National Road No.8
Construction Project” (2007-2012)(5) Necessity of the ProjectThis project is consistent with the priority area of Japan and JICA’s Aid Policy. Also, in theNational Road Network Master Plan of the Cambodian government, the roads targeted by thisproject are positioned as the most important area that contributes to economic development ofCambodia, and is consistent with the developmental task and policy of the country. Thenecessity and relevance for JICA to aid this project is high.
3. Project Description(1) Project Objectives
This Project aims to renovate the existing main road from Battambang to Sri Sophorn of theNational Road No.5 that connects the capital Phnom Penh and Thailand border, and improve thebypass road that detours urban Battambang and urban Sri Sophorn so as to boost transportation
capacity of the target area, improve transportation efficiency, and help facilitate Cambodian
economic growth.
(2) Project Site/Target Area:
Battambang province, Banteay Meanchey province(3) Project Components (including the method of procurement)
1) Road renovation (including the expansion of the bridge width)(Battambang – Sri Sophorn: 47.0km) (international competitive bidding)2) Bypass construction (Battambang: 23.1km,Sri Sophorn: 13.4km) (internationalcompetitive bidding)3) Consulting service (e.g. detailed designing, bidding assistance, construction management,
human resource development/enhancement of the organization)(short list method)(4) Estimated Project Cost
10,885 million yen (including the yen loan of 8,852 million yen)(5) ScheduleScheduled from May 2013 to May 2020 (total of 85 months). Project completion is defined as
the initiation of the use of facility (scheduled in May 2018).
(6) Project Implementation Structure1) Borrower: The Royal Government of Cambodia
2) Guarantor：None
3) Executing agency: Ministry of Public Works and Transport (MPWT)
4) Operation/maintenance/ management system: MPWT (maintained and directly managed
directly by the Road Infrastructure Bureau, and financed by the budget allocated to MPWT.
The budget allocation tends to increase, and there is no financial problem. Since AC concrete
pavement, to be adopted in this project, is not so common in Cambodia, the yen loan
consultant is to provide the technical training necessary.)2

(7) Environmental and Social Consideration/Poverty Reduction/Social Development
1) Environmental and Social Considerationi) Category: Aii) Reason for categorization: This project falls under the road sector and with vulnerable
characteristics presented in “Guidelines for environmental and social considerations”(promulgated in April 2010).
iii) Environmental permission and authorization: The environmental impact assessment (EIA)
report on this project was prepared in July 2012 since the project falls under Category A
although preparation of the report was not mandatory according to the Cambodian law
because the length of construction zone was less than 100 km.
iv) Measures against pollution: Air pollution, noise, and oscillation during construction may
temporarily have negative impact due to noises, dusts and exhaust gas caused by construction
machinery. Such impact will be minimized by tight speed limit imposed on
construction-related vehicles, regulation on working hours for construction, and thoroughregular maintenance on the machinery. After the start of the use, the impact will beminimized by the speed limit as a measure against noise, oscillation and air pollution. No
significant impact is expected if the measures above are implemented.

v) Natural environment： The target of the project is not vulnerable areas such as national parks
and their vicinity. Thus, undesirable impact on natural environment is expected to beminimum.
vi) Social environment： This project includes the acquisition of approximately 156 ha of land
and involuntary relocation of 704 households (including setbacks. Of 704, 74 households are
considered to be forced to move to relocation sites.). Relocation is scheduled to proceed
based on the domestic procedures and the resettlement plan. To prepare the resettlement plan,
discussions with residents were conducted before and after the census, where an outline ofthe project, census, resettlement policy, and positive and negative influence of the project
were explained. Question and answer session was also included. Throughout the discussions,no negative opinions to the project were confirmed.
vii) Monitoring： Ministry of Public Works and Transport, implementation organization of thisproject: MPWT monitors the acquisition of construction sites, involuntary resettlement, airquality, amount of waste, ecosystem, water quality of surrounding rivers depending on
situations, and noise/oscillation etc., as well as air quality, noise/oscillation, amount of waste,
and ecosystem after the start of service. An external consultant monitors the acquisition ofconstruction sites, involuntary resettlement, and living situation after resettlement.
2) Promotion of poverty reduction: This project is expected to contribute to generating new
employment for local residents, economic growth and poverty reduction of target areas.
Residents affected by this project are to be preferentially given job opportunities.
3) Promotion of social development (e.g. gender perspective, measures for infectious diseases
including HIV/AIDs, participatory development, considerations for persons with disabilities):i) Gender perspective：Among residents affected by this project, households led by widows orsingle women, and other vulnerable households are to be given special consideration.
ii) Measures for infectious diseases including HIV/AIDs: During construction periods, manylaborers are expected to concentrate in specific places for a long period. As part of healthmanagement of laborers, MPWT schedules to conduct awareness campaign on HIV/AIDSfor laborers (The standard bidding document requires the contractor to conduct awarenesscampaign).
(8) Collaboration with Other Schemes and Other Donors: The result of the “Project on Capacity
Enhancement of Environmental and Social Considerations for Resettlement” (2010‐2012) is tobe utilized (The result of this technical project has been presented at the meeting with theCambodian government and other donors). Since September 2012, a survey to prepare
cooperation for National Road No.5 Improvement Project (Prek Kdam‐Thlea Ma'Am) has

3been underway.
(9) Other Important Issues: None
4. Targeted Outcomes(1) Quantitative Effects:
1) Indicators of operation/effectIndicator
Passenger car unitper day(PCU/day)TargetReference value(value in 2011)
8,491

Target value (2020) [2 years after
completion of the project]
16,575

-

7,077

-

7,164

(Existing NationalRoad No. 5)103(Bypass+ renovated National Road No. 5)
86

road

No. 5 main road
Battambang
bypassSri SophornbypassTime required(minutes)2) Economic internal rate of return
Based on the following premises, the economic internal rate of return (EIRR) of this project is23.2%. Since this project aims to construct toll free road, FIRR is not to be calculated.
Cost： cost of project (tax excluded), cost of operation/maintenance
Benefit：it shortens the time required, and saves the driving expenses.
Project life：30 years(2) Qualitative Effects: It promotes Cambodia’s economic growth. It also improves commodity
distribution between Thailand and Cambodia and facilitates establishing an investment
environment. It benefits Japanese companies in Cambodia, strengthens connectivity, andpromotes regional integration. (Based on the result of opinion sharing with local Japanesecompanies engaged in commodity distribution, four-lane roads were realized.)
5. External Factors and Risk Control
N/A
6. Evaluation of Similar Projects and Lessons Learned from Past Projects(1) Evaluation of Similar Projects: From the ex-post evaluation on previous road projects, theimplementation organization learned that in order to mitigate the delay in the project process
due to acquisition of construction sites and involuntary resettlement, it is necessary to establish
a collaborative framework with residents so as to facilitate dialogue and contact with theresidents.
(2) Lessons Learned from Past Projects: This project also requires acquisition of construction sites
and involuntary resettlement. In consideration of the lesson learned above, the Cambodian
government is to formulate a resettlement plan, hold an explanatory meeting for residents, andsecure complaint handling system based on the Standard Resettlement Procedure prepared in
the technical cooperation, the “Project on Capacity Enhancement of Environmental and Social
Considerations for Resettlement” (2010-2012).
7. Plan for Future Evaluation(1) Indicators to be Used in Future Evaluations:1) Passenger car unit per day (PCU/day)2) Time required (minutes)
3) Economic internal rate of return (EIRR) (%)(2) Timing for Next Evaluation:
Two years after completion of the Project4