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 (Thlea Ma’am - Battambang
and Sri Sophorn - Poipet Sections) (II)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, androad transportation 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
are being made under the Master Plan on ASEAN Connectivity approved at theASEAN top-level meeting in 2010. Thus, Cambodia is expected to be a regional
distribution 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 the end of the civil war in 1991. The core parts of road and bridge
infrastructure have been almost rehabilitated and constructed. However,regarding existing roads, as sections that have been temporarily repaired after
the civil war have aged and some of them are narrow in width, further
rehabilitation of the existing roads has become an issue in responding toincreased 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 (Thlea Ma'am - Battambang and SriSophorn - Poipet Sections) (hereinafter referred to as “the Project"), the Road isof poor quality, and traffic volume shows an upward trend. For these reasons,increasing the transportation capacity and improving the logistics efficiency havebecome 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 itcontinues 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 to National Road No.5, which is a part of
the Southern Economic Corridor, is defined as a priority project, since the projectis 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 a
priority 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 of National Road No.1 (I) to (IV) and Urban Section (2005-2017,Grant Aid), the Project for Construction of Neak Loeung Bridge (2010-2016,Grant Aid), the Project for Rehabilitation of the Chroy Changwar Bridge(2016-2020, Grant Aid) and other projects undertaken as Grant Aid, as well as
the Project for Strengthening 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 toJapanese 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 - SriSophorn Section) ((I) in May 2013 and (II) in March 2017); National Road No.5Improvement 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 bebrought to Japanese companies which engage in transportation of raw materials
and agricultural products between both countries and which have manufacturingbases 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) incollaboration with World Bank and Australia to build capacity to improve themaintenance and management of roads network, including installation of roadsigns and repair to damaged sections including National Road No.5. In addition,
ADB is supporting improvement, asset management, road safety and etc. ofrural roads in ten provinces. World Bank is giving support for improving climate
resilience of national 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
from 2020 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 Thlea Ma’am andBattambang, and Sri Sophorn and Poipet along the National Road No.5 whichconnects Phnom Penh Capital and Thai border, by improving the condition ofexisting road and constructing the new bypasses, thereby contributing toeconomic development of Cambodia.
(2) Project Site / Target Area
Pursat, Battambang and Banteay Meanchey Provinces(3) Project Component1) Civil works (rehabilitation and widening of the existing road (about 134
kilometers in total length), construction of bypasses (about 12 kilometers
in total length), newly construction of 8 bridges, rehabilitation of 192)

bridges and widening of 6 bridges, installation of median division (3meters in width over the whole section), and construction of 6 weighstations)
Consulting services (e.g. detailed design, bidding assistance, construction
supervision, human resource development / enhancement of theorganization)(4) Estimated Project Cost
47,425 million yen (17,702 million yen of which is covered by yen loans for theProject (II))(5) Schedule
From March 2015 to June 2024 (112 months in total). Project completion isdefined as the commencement of the service of the road (June 2023).
(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
the National Road No.5 Improvement Project (Battambang - SriSophorn) (I) (II) (2013-2020) and National Road No.5 Improvement
Project (Prek Kdam - Thlea Ma'am) (I) (II) (2014-2022), 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(2015-2018, 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 these2)

Technical Cooperation are used in infrastructure development projects
including the Project.
Other Donors’ Assistance Activity
Neighbouring Countries Economic Development Cooperation Agency(hereinafter referred to as "NEDA") is giving support for construction ofborder crossing facilities between Thailand and Cambodia and anaccess road to National Road No.5 from the border between Thailand
and Cambodia through providing a loan to the Royal Government ofCambodia. Each other’s project will be coordinated in order to develop

an interchange connecting the access road and National Road No.5,(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 onOctober 17, 2014.
④ Measures for Pollution Control: The measures will be taken toaddress air pollution, noise, and vibration during the construction
stage, including the regulation of construction working hours, andemission gas control and other measures will be carried out in theservice 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, although the bypass route will
partially pass through the boundary of the zone 1 (transition zone) ofTonle Sap Biosphere Reserve. However, additional environmental
permissions besides EIA related to the construction activities in thezone 1 are not required. Cutting down of trees will be minimized
during the construction stage, and the ecosystems surrounding theProject site will be monitored in the service stage.
⑥ Social Environment: The Project involves the land acquisition about
55.7 hectares and the involuntary resettlement of 772 households(including setback), which has been carried out in accordance withdomestic procedures in Cambodia and the resettlement action plan.
Approximately more than 80% of the land acquisition has been
completed as of March, 2020. There were no particular objections tothe implementation of the Project in stakeholder meeting regarding
resettlement. In addition, it was confirmed in appraisal that nocomplaints had been sent to the grievance redress mechanism byaffected households.
⑦ Other / Monitoring: MPWT, which is an executing agency of theProject, will monitor air quality, noise and vibration, waste amount,and influences on ecosystems and other matters during theconstruction and service stages. Moreover, the Inter-Ministerial
Resettlement Committee (hereinafter referred to as “IRC”) is2)

monitoring the land acquisition and involuntary resettlement, andexternal consultant hired by IRC is monitoring the state of paying
compensation and residents' living conditions after resettlement.
Cross-Cutting Issues① The MPWT obligates contractors to implement AIDS / HIV prevention
program as a part of health care for workers.
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.

3)

Gender Categorization: [Gender Project] GI(S) (gender activity integrationproject)<Activity Contents / Reason for Categorization>
MPWT formulated “Gender Strategy: Mainstreaming in Public Works
and 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 ofwomen in unskilled workforce (to more than 10%). Therefore, the Project

shall be categorized as a gender activity integration project.
(9) Other Important Issues: N/A4. Targeted Outcomes(1) Quantitative Effects
1)

Outcomes (Operation and Effect Indicators)

Indicators

Annual average
daily traffic(PCU*/day)Target roads

Thlea Ma'am Battambang

6,174

17,223Pursat bypass-15,418

7,454

18,795

Thlea Ma'am Battambang(including thePursat bypass)

116

144.4

Sri Sophorn Poipet

4450

Sri Sophorn Poipet

Time Time(minutes)

Target (2025)
Baseline[Expected value 2(Actual value inyears after project2012)
completion]* 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 physicaldistribution between Thailand and Cambodia, as well as bringing benefits toJapanese companies in Cambodia. Strengthening of connectivity and promoting
regional integration. Securing of safe passage, increasing of the transportation
capacity and improvement of the logistics efficiency through improving thecondition of existing roads. Improvement of safety for pedestrians and etc.
through securing shoulders and sidewalks and installing appropriate road safety
facilities.
(3) Internal Rate of Return
Based on the following assumptions, Economic Internal Rate of Return (EIRR)of the Project is calculated at 19.9%. Since the Project is a project for
construction 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: 36 years
5. Prerequisites / External Conditions(1) Preconditions: 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), andthe Indus 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 theProject) and weigh stations throughout the whole National Road No.5 forsecuring safety. They are expected to contribute to reduction of traffic accidents.
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 between Thailand and Cambodia through rehabilitating and widening
the existing road and constructing bypasses in the National Road No.5.

Moreover, as the Project is 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