Ex-Ante Evaluation (for Japanese ODA Loan)
Southeast Asia Division 2Southeast Asia and Pacific Department, JICA
1. Basic Information
Country: Kingdom of Cambodia (hereinafter referred to as "Cambodia")
Project: National Road No.5 Improvement Project (Prek Kdam - Thlea Ma’am
Section) (III)Loan Agreement signing date: March 24, 2020
2. Background and Necessity of the Project(1) Current State and Issues of the Road Sector in Cambodia and the Positioningof the Project
Railway network development has made slow progress in Cambodia, and roadtransportation plays a central role in domestic transportation. Moreover,Cambodia is located between Thailand and Vietnam and is located in the middleof the Southern Economic Corridor, in which efforts to strengthen connectivity arebeing made under the Master Plan on ASEAN Connectivity approved at theASEAN top-level meeting in 2010. Thus, Cambodia is expected to be a regionaldistribution hub. Cambodia is making a progress in rehabilitating its transportation
infrastructure with the aid of the international society, including Japan, World
Bank, and Asian Development Bank (hereinafter referred to as "ADB"), since theend of the civil war in 1991. The core parts of road and bridge infrastructure havebeen almost rehabilitated and constructed. However, regarding existing roads, assections that have been temporarily repaired after the civil war have aged andsome of them are narrow in width, further rehabilitation of the existing roads has
become an issue in responding to increased domestic and international logistics
resulting from future economic development in Cambodia.
In particular, National Road No.5 is an arterial road in Cambodia and is a partof Asian Highway Route No.1 and the Southern Economic Corridor, and thus, it
is expected to function as a main industrial artery in the Mekong region. Although
the temporary restoration work has been carried out for the section covered by
National Road No.5 Improvement Project (Prek Kdam - Thlea Ma'am Section)(hereinafter referred to as “the Project"), the Road is of poor quality, and traffic
volume shows an upward trend. For these reasons, increasing the transportation
capacity and improving the logistics efficiency have become urgent issues in
responding to increased domestic and international logistics resulting from future
economic development in Cambodia.

In the National Strategic Development Plan 2019-2023 (hereinafter referred toas “NSDP 2019-2023”), the Royal Government of Cambodia shows that it
continues to make efforts to rehabilitate and develop the transportation
infrastructure as a priority issue and aims at rehabilitating, constructing andwidening the single digit national roads over a length of 700 kilometers or morefrom two-lane double bituminous surface treatment roads to four-lane asphalt
concrete roads in the period of the NSDP 2019-2023. In the National Road
Network Master Plan (hereinafter referred to as "M/P") formulated in 2006 withthe assistance from JICA, improvement of National Road No.5, which is a partof the Southern Economic Corridor, is defined as a priority project, since theproject is considered a contribution to national and regional integration.
(2) Japan and JICA’s Cooperation Policy, etc. in the Road Sector and thePositioning of the ProjectIn the Japanese Development Cooperation Policy for the Kingdom ofCambodia (July 2017), Japan provides assistance for strengthening distribution
networks including both hard and soft infrastructure (e.g. roads, ports, theprocedures of customs and excise, etc) with the aim of promoting regional
connectivity and industrial development, under the priority goal of “Industrydevelopment”. Moreover, in the JICA Country Analysis Paper for the Kingdom ofCambodia (March 2014), the analysis results showed that infrastructuredevelopment to enhance transportation capacity to Vietnam and Thailand was apriority issue. Therefore, the Project is consistent with Japan and JICA’s country
assistance policies and analyses.
JICA has made efforts at infrastructure development and capacity development
for maintenance of infrastructure by carrying out the Project for Improvement ofNational Road No.1 (I) to (IV) and Urban Section (2005-2017, Grant Aid), theProject for Construction of Neak Loeung Bridge (2010-2016, Grant Aid), theProject for Rehabilitation of the Chroy Changwar Bridge (2016-2020, Grant Aid)and other projects undertaken as Grant Aid, as well as the Project forStrengthening Capacity for Maintenance of Roads and Bridges (2015-2018,
Technical Cooperation Project), the Project for Capacity Enhancement on
Environmental and Social Considerations in Implementing Agency in Road
Sector (2017-2020, Technical Assistance Project related to Japanese ODA Loan)
and other projects as Technical Cooperation. Moreover, based on the M/P as
mentioned above, JICA is currently supporting improvement of National Road
No.5 and signed Japanese ODA Loan Agreement: National Road No.5

Improvement Project (Battambang - Sri Sophorn Section) ((I) in May 2013 and(II) in March 2017); National Road No.5 Improvement Project (Prek Kdam - Thlea
Ma'am Section) ((I) in July 2014 and (II) in March 2016); and National Road No.5
Improvement Project (Thlea Ma'am - Battambang and Sri Sophorn - Poipet
Sections) ((I) in March 2015). In addition, due to improved distribution network
between Thailand and Cambodia resulting from improvement of National Road
No.5, it is expected that benefit will be brought to Japanese companies which
engage in transportation of raw materials and agricultural products between bothcountries and which have manufacturing bases in both countries.
Furthermore, in the M/P, National Road No.5 covered by the Project is definedas the most important section that contributes to Cambodia’s economicdevelopment, and the Project also contributes to strengthening of connectivity
within the Mekong region through infrastructure development. Therefore, it isexpected that the Project will contribute to the Sustainable Development Goal
(SDG) 9 (Build resilient infrastructure, promote inclusive and sustainableindustrialization).
(3) Other Donors’ Activities
According to Country Partnership Strategy (October 2019), in order to support
agriculture commercialization, access to markets and tourism, and facilitate trade,
ADB will continue to improve selected national, provincial and rural roads. ADB
implemented Road Asset Management Project (2008-2014) in collaboration withWorld Bank and Australia to build capacity to improve the maintenance andmanagement of roads network including installation of road signs and repair todamaged sections including National Road No.5. In addition, ADB is supporting
improvement, asset management, road safety and etc. of rural roads in tenprovinces. World Bank is giving support for improving climate resilience ofnational roads, provincial roads and rural roads.
Moreover, China has been increasing support for the transportation sector andis the largest donor in the sector. In a rolling plan in the transportation sector from2020 to 2022, China plans to give support for development of roads over a total
length of 732 kilometers in the period of the plan. China also carried out
improvement of National Road No.5 (2012-2016), in which it widened the road tofour-lane in the section from the environs of Phnom Penh to Prek Kdam Bridge,
which is not covered by the Project.

3. Project Description(1) Project Objective
The objective of the Project is to increase the transportation capacity as wellas to improve the logistics efficiency in the section between Prek Kdam and Thlea
Ma’am Section along the National Road No.5 which connects Phnom Penh
Capital and Thai border, by improving the condition of existing road andconstructing the new bypasses, thereby contributing to economic development ofCambodia.
(2) Project Site / Target Area
Kandal, Kampong Speu, Kampong Chhnang and Pursat Provinces(3) Project Components
1) Civil works (rehabilitation and widening of the existing road (about 118
kilometers in total length), construction of bypasses (about 17 kilometers
in total length), newly construction of 2 bridges, rehabilitation of 182)

bridges and widening of 13 bridges, installation of median division (3meters in width over the whole section))
Consulting services (e.g. detailed design, bidding assistance, construction
supervision, human resource development / enhancement of theorganization)(4) Estimated Project Cost
36,121 million Yen (11,715 million Yen of which is covered by yen loans for theProject (III))(5) Schedule
From July 2014 to June 2023 (108 months in total). Project completion isdefined as the commencement of the service of the facilities (March 2022).
(6) Project Implementation Structure1) Borrower: The Royal Government of Cambodia
2) Executing Agency: Ministry of Public Works and Transport (hereinafterreferred to as "MPWT")
3) Operation and Maintenance System: MPWT
(7) Collaboration and Division of Work with Other Projects and Donors
1) Japan’s Assistance Activity
Japan is promoting connectivity in the Mekong region by improving
roads in the Southern Economic Corridor through the Project as well as
National Road No.5 Improvement Project (Battambang - Sri Sophorn) (I)(II) (2013-2020) and National Road No.5 Improvement Project (ThleaMa'am - Battambang and Sri Sophorn - Poipet Sections) (I) (2015-2023),
which are Japanese ODA Loan projects in progress at present. Moreover,Japan has made efforts to enhance the capacity for maintenance ofinfrastructure for the executing agency through the Project forStrengthening Capacity for Maintenance of Roads and Bridges (20152018, Technical Cooperation Project) and the Project for Capacity
Enhancement on Environmental and Social Considerations inImplementing Agency in Road Sector (2017-2020, Technical Assistance
Project related to Japanese ODA Loan). The outcomes of these TechnicalCooperation are used in infrastructure development projects including theProject.
2) Other Donors’ Assistance Activity
N/A(8) Environmental and Social Considerations / Cross Cutting Issues / GenderCategorization
1) Environmental and Social Considerations① Category: A② Reason for Categorization: The Project falls into the road sector andsensitive characteristics under the JICA Guidelines for Environmentaland Social Considerations (promulgated in April 2010).
③ Environmental Permit: An Environmental Impact Assessment (EIA)
report for the Project was approved by the Ministry of Environment on
November 26, 2013.
④ Measures for Pollution Control: The measures will be taken to address
air pollution, noise, and vibration during the construction stage,including the regulation of construction working hours, and emission
gas control and other measures will be carried out in the service stage.
⑤ Natural Environment: Since the Project site is not located in sensitive
areas such as national parks, adverse impact on the naturalenvironment is assumed to be minimal. However, as the Project site
is near the boundary of the Tonle Sap Biosphere Reserve, cutting
down of trees will be minimized during the construction stage, and afive-year monitoring plan on the surrounding ecosystem will beimplemented in the service stage.
⑥ Social Environment: The Project involves the land acquisition about
88.33 hectares and the involuntary resettlement of 872 households

(including setback), which has been carried out in accordance withdomestic procedures in Cambodia and the resettlement action plan.
Although approximately 99% of the land acquisition has been
completed as of March, 2020, opinions about compensation havebeen expressed by 38 households. The General Department ofResettlement of the Ministry of Economy and Finance have been
trying to resolve the issue through consultation with the households .
In appraisal, JICA requested to continue procedures in accordancewith the grievance redress mechanism and, especially, dialogues withthe households, and has reached agreement with the authorities ofCambodia on it.
⑦ Other / Monitoring: MPWT, which is an executing agency of the Project,
will monitor air quality, noise and vibration, waste amount, andinfluences on ecosystems and other matters during the construction
and service stages. Moreover, the Inter-Ministerial Resettlement
Committee (hereinafter referred to as “IRC”) is monitoring the landacquisition and involuntary resettlement, and external consultant hiredby IRC is monitoring the state of paying compensation and residents'
living conditions after resettlement.
2)

Cross-Cutting Issues① The MPWT obligates contractors to implement AIDS / HIV prevention
program as a part of health care for workers.

3)② The Project will contribute to adaptations regarding climate change
through climate risk mitigation measures such as raising the level ofroad surface in the partial sections and proper development of watersupply pipes and drainage pipes under the roads in order to prevent
further flood damage.
Gender Categorization: [Gender Project] GI(S) (gender activity integrationproject)<Activity Contents / Reason for Categorization>
MPWT formulated “Gender Strategy: Mainstreaming in Public Worksand Transport Sector 2016-2020” and has made efforts to create job
opportunities for women and to promote women's capacity development.
Under the strategy, MPWT is implementing the Project, and in theconstruction stage, contractors has made efforts to provide facilities forpromote employment of women and to increase the proportion of women

in the unskilled workforce (to more than 5%). Therefore, the Project shallbe categorized as a gender activity integration project.
(9) Other Important Issues: N/A
4. Targeted Outcomes(1) Quantitative Effects
1)

Outcomes (Operation and Effect Indicators)

Indicators

Target roads

National Road
Annual average No.5 main roaddaily traffic
Kampong(PCU*/day) Chhnang bypass
Odongk bypass
Travel Time(minutes)(Prek Kdam Thlea Ma'am)

Baseline(Actual value in2012)

Target (2024)[Expected value 2years after projectcompletion]

7,306

15,720-16,603-22,311135124* PCU: Passenger Car Unit. To show traffic volume, one passenger car iscounted as 1 PCU, and other types of vehicles are converted into
passenger cars by multiplying them by a given coefficient according totheir types.
(2) Qualitative Effects
Promotion of the investment environment through the improvement of physicaldistribution between Thailand and Cambodia, as well as bringing benefits toJapanese companies in Cambodia. Strengthening of connectivity and promoting
regional integration. Increasing of the transportation capacity and improvementof the logistics efficiency through improving the condition of existing road.
(3) Internal Rate of Return
Based on the following assumptions, Economic Internal Rate of Return(EIRR) of the Project is calculated at 17.6%. Since the Project is a project forconstruction of a road for which no toll will be collected, Financial Internal Rate ofReturn (FIRR) is not calculated.
[EIRR]
Cost: Project costs and operation / maintenance costs (excluding tax)

Benefit: Shortening of travel time and reduction in vehicle operating cost
Project Life: 37 years
5. Prerequisites / External Conditions(1) Prerequisites: None in particular.
(2) External conditions: None in particular.
6. Lessons Learned from Past Projects
From the results of the ex-post evaluations of the Project for Improvement ofNational Highway Route 6, Siem Reap Section (Grant Aid for Cambodia), and theIndus Highway Construction Project (Japanese ODA Loan for the Islamic
Republic of Pakistan), it has been learned that reckless driving and overloaded
vehicles have frequently caused traffic accidents. A lesson learned is that it isnecessary to secure safety through installing ancillary roads facilities andmeasures for control on overloaded vehicles. Based on the above, the Projectplans to install median division (3 m in width over the whole section of the Project)for securing safety. It is expected that the median division will contribute toreduction of traffic accidents. Moreover, regarding overloaded vehicles, the scopeof the National Road No. 5 Improvement Project (Thlea Ma'am - Battambang and
Sri Sophorn - Poipet Sections) (I) includes construction of weigh stations in thewhole section of National Road No.5, therefore specific measures against
overloading in the section covered by the Project will be taken.
7. Evaluation Results
The Project is consistent with the development issues and policies ofCambodia, as well as the assistance policies and analysis results of Japan andJICA, and aims at increasing transportation capacity and improving logistics
efficiency in the target region through rehabilitating and widening the existing roadand constructing bypasses in the National Road No.5. Moreover, as the Projectis expected to contribute to SDG 9 (Build resilient infrastructure, promote
inclusive and sustainable industrialization), it is highly necessary to support
implementing the Project.
8. Plan for Future Evaluation(1) Indicators to be Used in Future Evaluation
As indicated in 4. (1) to (3).
(2) Timing of Future Evaluation
Two years after project completion (ex-post evaluation)
END