Ex-Ante Evaluation
Southeast Asia Division 2Southeast Asia and Pacific Department
Japan International Cooperation Agency (JICA)
1. Basic Information
Country: Kingdom of Cambodia (Cambodia)
Project: Siem Reap Water Supply Expansion Project (Phase 2)
L/A signing date: 21 October 2021
2. Background and Necessity of the ProjectCurrent State and Issues of Water Supply Sector in Cambodia and thePositioning of the Project
Water supply systems and other infrastructure in Cambodia suffered extensive
damage during the civil war that continued through to the early 1990s, and this(1)has severely restricted access to safe water. Although Japan and other donors
have worked hard to restore water supplies services since the end of the war,
these efforts have been concentrated in the capital Phnom Penh and watersupply rate in regional cities and towns are still low.
In 2011, Siem Reap was the third-largest city in Cambodia with a recorded
population of 221,000. The city was anticipating a rapid increase in demand forwater due to a combination of natural population growth and tourists drawn to thenearby Angkor Wat heritages, which was attracting more than 2.8 million visitors
per year. On the other hand, Siem Reap had one of the lowest water supply
connection rates among major cities in Cambodia, with critical water shortages
causing hygiene issues. Due to this background, the Loan Agreement for theSiem Reap Water Supply Expansion Project (hereinafter referred to as “theProject”) was signed in March 2012. The Project was funded with a Japanese
ODA loan of 7,161 million yen towards a total project cost of 7,700 million yen.
By 2020, the population of Siem Reap had grown to 294,000, while annual
tourism numbers had doubled over the previous decade, from 2.27 million in 2009
to 5.84 million in 2019. Notwithstanding the impact of the global COVID-19
pandemic, tourism is expected to rebound, the water supply expansion is evermore urgent in order to meet further increasing water demand. Meanwhile, theRoyal Government of Cambodia (hereinafter referred to as “the RGC”) has
nominated access to safe and secure water supplies as a priority development
goal in the Rectangular Strategy Phase IV and the National StrategicDevelopment Plan 2019–2023. The RGC has identified an urgent need forupgrading and expanding of water supply networks in eight regional cities
including Siem Reap, with a target of extending access to 90% of urban residentsby 2023.
The Project is currently in progress, with completion due January 2023.
Following a significant increase in project costs attributable primarily to
substantial fluctuations in exchange rates, the RGC requested an additional loan((hereinafter referred to as “the Loan”) from the Government of Japan (hereinafterreferred to as “GoJ”) in December 2019. Also, extensive roadworks in Siem Reap
authorized by the RGC in September 2020 required changes to the Project suchas additional protections and rout changes for treated water transmission mainthat had already been installed, as well as relocation of distribution pipes. Inaddition, Siem Reap Water Supply Authority (hereinafter referred to as “SRWSA”)
has a plan to increase water supply connection rate and improve its profitability
which has been impacted by COVID-19, through expansion of distribution
networks in areas of strong population growth. Accommodating the roadworks
and coordinating with the expansion of distribution pipes is critical to the successof the Project, but the RGC does not have funding capacity to cover the additionalcost. This is why the RGC submitted an additional request to the GoJ in March
2021 regarding the additional loan for these purposes.
(2)

Japan and JICA's Cooperation Policy, etc. in the Water Supply Sector andthe Positioning of the Project

The JICA Country Analysis Paper for Cambodia (March 2014) identifies watersupply infrastructure as a development priority, while the Country Assistance
Policy for Cambodia (July 2017) likewise identify improved living standards as apriority area, with a particular focus on support for urban infrastructuredevelopment such as water supplies, sewerage and wastewater, power supplies(expanding coverage areas) and urban transportation (railways, buses andvehicle registration). The Project aims to align with these objectives.
The Project also aligns with the goal of improving resilience against infectious
disease as stated by Japanese Prime Minister Yoshihide Suga at the December
2020 special session of the United Nations General Assembly in Response to theCoronavirus Diseases Pandemic, as well as the objective of strengthening
infectious disease control outlined in the JICA’s Initiative for Global Health andMedicine.

The Project also provides a material contribution to Sustainable Development
Goal (SDG) 3 Ensure healthy lives and promote well-being for all at all ages andSDG 6 Ensure sustainable and ongoing access to water and sanitation for all.
(3)

Other Donors' Activities

The Asian Development Bank funded a water supply upgrade at Siem Reap
between 2018 and 2020, and the French Development Agency built a water
treatment plant (capacity 15,000 m3/day) between 2017 and 2019.
3．Project Description(1)
Project Objective
The objective of the Project is to ensure water supply through expanding thewater supply system, thereby contributing to improve the living environment in
Siem Reap city where water shortages have reached critical levels due to a
combination of rapid urbanization and tourism growth, and to promote the tourism
industry in the region.
(2) Project Site / Target Area
Siem Reap City (population 294,000), the Kingdom of Cambodia(3) Project Components
1) Water diversion facilities, water transmission main (10 km approx.), treatedwater transmission main (25 km approx.), water treatment plant construction(60,000 m3/day), distribution pipes (254 km approx.)2) Consulting services (detailed design, bidding assistance, supervision ofworks, human resource development/organizational strengthening, etc.)(4) Estimated Project Cost
15,552 million yen (yen loan amount of the Loan: 6,336 million yen)(5) Schedule
The Project started in March 2012 and is expected to run through to January2024, a total of 143 months. The Project will be completed at the service openingof the facilities in January 2023.
(6) Project Implementation Structure

1)
2)
3)
4)

Borrower: Royal Government of Cambodia
Guarantor: None
Executing Agency: Siem Reap Water Supply Authority (SRWSA)
Operations and Maintenance Structure: Siem Reap Water Supply
Authority (SRWSA)(7) Collaboration and Division of Work with Other Projects and Donors
1) Japan’s Assistance Activity
Japan has previously provided technical assistance with the operation andmaintenance of water supply facilities to a number of waterworks in regional cities,
including SRWSA, through the Project on Capacity Building for Water Supply
System in Cambodia (Phase 2), which ran from 2007 to 2012. This was followedby the Project on Capacity Building for Urban Water Supply System in Cambodia(Phase 3; 2012–2018), which shifted the focus towards management issues suchas financial management, organizational structures, and staff training andeducation.
2) Other Donors’ Assistance Activity
N/A(8) Environmental and Social Considerations, Cross-cutting Issues, and GenderClassification
1) Environmental and Social Considerations(i) Category: B(ii) Reason for the Categorization: An analysis of the characteristics of thesector, the Project and the region in line with the JICA Guidelines forEnvironmental and Social Considerations (April 2010) found no significant
negative environmental impacts from the Project.
(iii)
Environmental Permits: The Initial Environmental Impact Assessment(IEIA) for the Project was approved by Ministry of Environment ofCambodia in July 2012. The IEIA for changes to the intake facility
and water treatment plant construction sites were approved by the Ministryin August 2019.
(iv) Anti-Pollution Measures: Machinery and equipment will be subject toregular maintenance during construction. No construction work will beperformed at night. Appropriate wastewater and effluent treatment will beprovided. The executing agency has maintained pollution control

measures at the existing water treatment facility through developing
manuals and instructions on chlorine, water quality and sludge
management. After commencing the service, the Project will adopt asimilar approach to minimizing environmental impacts particularly withrespect to air and water quality and construction noise and vibration.
(v) Natural Environment: Some of the transmission main passes through ornear to protected areas, but domestic law permits development in theseareas. The necessary procedures and processes have been followed. The
SRWSA is committed to minimizing disruption to the natural environment
caused by construction work, and to restoring vegetation and other natural
assets after completion. It is therefore envisaged that negative impacts on
the natural environment will be minimal.
(vi) Social Environment: The Project acquired approximately 3 ha land. The
relevant permits were granted along with the domestic law and regulation,and land acquisition was completed in March 2017. No involuntary
resettlement was required.
(vii)
Others / Monitoring: During construction, contractors will be required
to monitor water quality, noise and vibration and ecosystems, under thesupervision of the implementing agency. After commencing the service,
the implementing agency will monitor water quality, waste and ecosystems.
2) Cross-Cutting Issues
Contractors of the Project and the SRWSA have implemented preventative
measures for infectious diseases such as HIV/AIDS, as well as preventative
measures from the spread of COVID-19 in accordance with the directions of
the RGC. Information will be disseminated to residents in areas where theProject work is carried out, using a methodology that takes into account theneeds of people with disabilities. Every effort will be made to provide
employment opportunities to people with disabilities when hiring new workers,
and consideration will also be given to the needs of workers with disabilities,
such as information guarantees and safety guarantees.
3) Gender Categorization: GI (gender activity integration project)
Reason for Categorization: It has been confirmed that female workers engaged
on construction work on the Project have been provided with dedicated facilities.
Agreement has been reached at the appraisal on how to promote employment

of women, including the principle of equivalent pay for equivalent work. Thus
the Project is 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)
Baseline
Projected TargetIndicator(Actual baseline in (2025 = two years2011)
after completion)
No. of households
4,867
30,516connected to watersupplyTotal served
24,876
183,096
population
Turbidity (NTU)
Less than 5
Water treatment
44%
plant operating rate(%)
Note: The indicators for households connected to water supply, total served
population and water treatment plant operating rate are for the total SRWSA
supply area including pipes, water treatment plants and other elements outside
the remit of the Project, and the projected target was set based on the current
situation of the whole of water supply area. Whereas, turbidity indicators
apply solely to the water treatment plant constructed under the Project.
(2)
Qualitative Effects
Qualitative effects include: improving the living environment of the people ofSiem Reap; helping to conserve the Angkor Wat ruins by using surface water
rather than extracting groundwater from beneath the ruins; providing a morestable investment environment to stimulate local industries such as tourism; andhelping to control infectious disease through improved access to safe, clean water.
(3) Internal Rate of Return
Based on the assumptions outlined below, the economic internal rate of return(EIRR) for the Project has been calculated at 21.43% and the financial internalrate of return (FIRR) at 0.10%.
EIRR
Cost: project costs associated with construction, operation and maintenance(excluding taxes), and material and equipment replacement / upgrades
Benefit: savings from reduced water purchasing and health care expenses,
increased tourism related revenue
Project Life: 40 years
FIRR
Cost: project costs associated with construction, operation and maintenance, andmaterial and equipment replacement / upgrades
Benefit: revenue from fees and charges
Project Life: 40 years
5. Prerequisites / External Conditions(1)(2)

Prerequisites: none
External Conditions: none

6. Lessons Learned from Past Projects
Ex-post evaluations of past water supply projects suggest that in some cases,a lack of technical capacity at regional waterworks may have prevented the fulloutput from being realized. Thus, capacity building at implementing bodies is vitalto ensure that projects can deliver sustained and ongoing output.
Technical standards in the areas of operations and maintenance at the SRWSA,
the implementing body for the Project, have improved in recent years thanks toinitiatives such as technical cooperation. At the same time, many of the new staff
hired by the SRWSA as the organization expands have been found to lackexperience in the water supply sector, and the SRWSA has been obliged toengage external consulting services to help boost operations and maintenancecapacity.
7. Evaluation Results
The Project aligns with the assistance policies and analysis results of Japan andJICA, as well as the development issues and policies of the Cambodia. The
provision of safe and reliable water supplies to Siem Reap city will improve living

standards in the city and help to promote tourism in the region. The Project is also
consistent with the objectives of SDG 3 Ensure healthy lives and promote wellbeing for all at all ages and SDG 6 Ensure sustainable and ongoing access towater and sanitation for all. The Project is therefore considered to have a highlevel of need that warrants support.
8. Plan for Future Evaluation(1) Indicators to be Used in Future Evaluation
As indicated in 4 above.
(2) Timing of Future Evaluation
Post-evaluation to be conducted two years after project completion
END