Ex-Ante Evaluation (for Japanese ODA Loan)
Southeast Asia Division 2 Southeast Asia and Pacific Department, JICA
1. Basic Information(1)(2)

Country: Kingdom of Cambodia (Cambodia)
Project Site/Target Area: Pursat, Battambang, and Banteay Meanchey

provinces(3)
Project: National Road No. 5 Improvement Project (Thlea Ma'am Battambang and Sri Sophorn - Poipet Sections) (III)Loan Agreement signing date: July 19, 2024
2. Background and Necessity of the Project(1) Current State and Issues of the Road Sector in Cambodia and thePositioning of the Project
Railway network development has made slow progress in the Kingdomof Cambodia (hereinafter referred to as “Cambodia”), and roadtransportation plays a central role in domestic transportation. Moreover,Cambodia is located between Thailand and Vietnam and is located in themiddle of the Southern Economic Corridor, in which efforts to strengthen
connectivity are being made under the Master Plan on ASEAN
Connectivity approved at the ASEAN top-level meeting in 2010. Thus,
Cambodia is expected to be a regional distribution hub. Cambodia ismaking a progress in rehabilitating its transportation infrastructure withthe aid of the international society, including Japan, World Bank, andAsian Development Bank (hereinafter referred to as "ADB"), since theend 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 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 isa part of Asian Highway Route No.1 and the Southern Economic Corridor,and thus, it is expected to function as a main industrial artery in theMekong region. Although the temporary restoration work has been carriedout for the section covered by National Road No.5 Improvement Project(Thlea Ma'am - Battambang and Sri Sophorn - Poipet Sections)(hereinafter referred to as “the Project"), the Road is of poor quality, andtraffic volume shows an upward trend. For these reasons, increasing thetransportation capacity and improving the logistics efficiency havebecome urgent issues in responding to increased domestic andinternational logistics resulting from future economic development inCambodia. In light of these circumstances, the Cambodian government
requested in September 2014 that Japan provide assistance on theProject. The first phase of the L/A was signed in March 2015, and thesecond was in March 2020.
As of 2023, the Cambodian government continues to prioritize thedevelopment of road infrastructure through its Pentagonal
Strategy-Phase I, announced by the new administration in September
2023, which corresponds to the previous administration’s Rectangular
Strategy-Phase IV. The National Strategic Development Plan (2019 2023) aims to rehabilitate, improve, and expand over 700 km of major
national roads, including National Road No. 5, converting them fromtwo-lane double bituminous surface treatment roads to four-lane asphaltroads. In the National Road Network Master Plan (hereinafter referred toas "M/P"), formulated in 2006 with the 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 project isconsidered a contribution to national and regional integration. Also, The
Comprehensive Intermodal Transport and Logistics Master Plan
(CITL-MP), approved in August 2023, identifies, as a top priority, therehabilitation and development of several national roads, including
National Road No. 5. In 2019, Cambodia's road accident fatality rate wasapprox. 19.6 per 100,000 people, which was significantly higher than theglobal average of 16.7 per 100,000 people and Japan’s rate of 2.1 per
100,000 people. It highlights the urgent need to improve road safety.
(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, the procedures of customs and excise, etc) with the aim of

promoting regional connectivity and industrial development, under thepriority goal of “Industry development”. Moreover, in the JICA Country
Analysis Paper for the Kingdom of Cambodia (March 2014), the analysis
results showed that infrastructure development to enhance transportation
capacity to Vietnam and Thailand was a priority issue. Its analysis
therefore concludes that further expansion of the road network is stillnecessary, and that infrastructure development is a priority issue. TheProject aligns with these policies and analyses, and also aims tostrengthen the international logistics network and improve road traffic
safety, in alignment with JICA Global Agenda for "Transportation." In
addition, the Project will improve physical connectivity by upgrading
Cambodia's road network, and is therefore positioned under Pillar 3"Multi-layered Connectivity" in the new plan for "Free and Open
Indo-Pacific".
JICA has made efforts at infrastructure development and capacity
development for maintenance of infrastructure by carrying out the Projectfor 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 of Construction
Quality Control (2009-2012, Technical Cooperation Project), Project on
Capacity Enhancement of Environmental and Social Considerations forResettlement (2010-2012, Technical Cooperation Project), 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 inImplementing Agency in Road Sector (2017-2020, Technical Assistance
Project related to Japanese ODA Loan) and other projects as TechnicalCooperation. Moreover, based on the M/P as mentioned above, JICA iscurrently supporting improvement of National Road No.5 and has
provided support through Japanese ODA Loan Agreements to: theNational 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) signed inJuly 2014, (II) signed in March 2016, (III) signed in March 2020 and (IV)signed in June 2023); and National Road No.5 Improvement Project(Thlea Ma'am - Battambang and Sri Sophorn - Poipet Sections) ((I)
signed in March 2015 and (II) signed in March 2020). In addition, capacity
building for road safety measures along National Road No. 5 is being
undertaken through the Project for Improvement of Road Traffic Safety on
Trunk Roads (June 2021 - January 2025), which is Technical Assistance
Project related to National Road No. 5 Improvement Project . In addition,
JICA is supporting Rural Road Connectivity Improvement Project (L/Asigned in June 2023), which improves rural roads along National Road No.
5. The rehabilitation of National Road No. 5 is expected to benefit
Japanese companies involved in the transportation of raw materials andagricultural products between Thailand and Cambodia, as well as thosewith manufacturing bases in both of those countries.
(3) Other Donors’ Activities
In order to support agriculture commercialization, access to markets andtourism, and facilitate trade, ADB will continue to improve selectednational, provincial and rural roads. ADB implemented Road AssetManagement Project (2008-2014) in collaboration with World Bank andAustralia to build capacity to improve the maintenance and managementof roads network, including installation of road signs and repair todamaged sections including National Road No.5. In addition, ADB issupporting improvement, asset management, road safety and etc. of ruralroads 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 and is the largest donor in the sector. Recently, the PhnomPenh-Sihanoukville expressway was constructed by a Chinese company
under the Build Operate Transfer (BOT) system (total project cost: approx.
USD 2,000 million, total length: approx. 190 km, opened in October 2022).
China also carried out improvement of National Road No.5 (2012-2016),
in which it widened the road to four-lane in the section from the environsof Phnom Penh to Prek Kdam Bridge, which is not covered by the Project.
3. Project Description(1)

Project Description
1)
Project Objective

The objective of the Project is to increase the transportation capacity
as well as to improve the logistics efficiency in the section between
Thlea Ma’am and Battambang, and Sri Sophorn and Poipet along theNational Road No.5 which connects Phnom Penh Capital and Thaiborder, by improving the condition of existing road and constructing thenew bypasses, thereby contributing to economic development ofCambodia.
2)
Project Componenti.
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 andrehabilitation of 25 bridges, installation of median division (3 meters
in width over the whole section), construction of 6 weigh stations),
and installation of traffic safety infrastructureii.

3)Consulting services (e.g. detailed design, bidding assistance,
construction supervision, human resource development /enhancement of the organization)
Project Beneficiaries (Target Group)① Direct Beneficiaries: Citizens and private companies who use theimproved roads, and implementing agency personnel who receive
human resource development and organizational capacity building② Final Beneficiaries: Consumers of goods and services transported
on the improved road

(2)

(3)

Estimated Project Cost
52,171 million yen (8,293 million yen of which is covered by Japanese
ODA loan for the Project (III))
Schedule (Cooperation Period)
March 2015 to October 2027 (152 months). The Project is completed

when the road put into service (April 2026).
(4) Project Implementation Structure1) Borrower: The Royal Government of Cambodia
2) Executing Agency: Ministry of Public Works and Transport
3) Operation and Maintenance System: Same as above(5) Collaboration and Division of Work with Other Projects and Donors
1) Japan’s Assistance Activity
By improving roads consists of the Southern Economic Corridor, Japan

is promoting connectivity in the Mekong region through: the National
Road No.5 Improvement Project (Battambang – Sri Sophorn) (I to II)(2013-2021), Japanese ODA Loan projects completed in September
2021; the National Road No.5 Improvement Project (Prek Kdam – ThleaMa'am) (I to IV) (2014-2024), completed in May 2023; and Rural Road
Connectivity Improvement Project (2023-2028), a Japanese ODA Loan
project that is in progress at present. In addition, JICA is enhancing thecapacity of related agencies implementing road safety measures along
National Road No. 5 through the Project for Improving Road Traffic Safetyon Trunk Roads (Technical Assistance Project related to Japanese ODA
Loan, June 2021 - January 2025), to contribute the Project objective ofincreasing transport capacity and improving transport efficiency in thetarget area in tandem with ensuring the traffic safety of surrounding
residents, etc.
2) Other Donors’ Assistance Activity
Neighboring Countries Economic Development Cooperation Agency(hereinafter referred to as "NEDA"), which is a government agency of theRoyal Thai government, is giving support for construction of bordercrossing facilities between Thailand and Cambodia and an access road toNational Road No.5 from the border between Thailand and Cambodia
through providing a loan to the Royal Government of Cambodia.
Development of National Road No. 5 under the Project is expected tohave a synergy with the above support of NEDA that enhances
increasing logistics between Thailand and Cambodia.
(6) Environmental and Social Considerations
1) Environmental and Social Considerations① Category: A② Reason for Categorization: The Project falls into the road sector andsensitive characteristics under the JICA Guidelines for Environmental andSocial 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
October 17, 2014.
④ Measures for Pollution Control: Measures against air pollution, noise,and vibration, such as regular maintenance of construction machineryand restrictions on the hours of construction work, will be taken duringconstruction, and when the facilities have been put into service,measures such as speed restrictions will be implemented to reduce noiseand vibration.
⑤ Natural Environment: Since the Project site is not located insensitive areas such as national parks, adverse impact on the naturalenvironment is assumed to be minimal, although the bypass route wasconstructed on the boundary of Zone 1 (the Transition Zone) of Tonle Sap
Biosphere Reserve. Nevertheless, additional environmental permissions
besides EIA related to the construction activities in Zone 1 are notrequired. Cutting down of trees will be minimized during the construction
stage, and the ecosystems surrounding the Project site will be monitored
for the first five years of service.
⑥ Social Environment: The Project involves the land acquisition about
56.6 hectares and the involuntary resettlement of 772 households(including setbacks), and it is carried out in accordance with domestic
procedures in Cambodia and the JICA Guidelines on Environmental andSocial Considerations. Land acquisition and resettlement have been
completed for packages 1 to 4, and are under implementation for
package 5. During the public consultations on land acquisition andinvoluntary resettlement, no specific objection to implementation of theproject was identified from the affected households.
⑦ Other / Monitoring: MPWT, which is an executing agency of theProject, will monitor air quality, noise and vibration, waste amount, andinfluences on ecosystems and other matters during the construction andservice stages. Moreover, the Inter-Ministerial Resettlement Committee(hereinafter referred to as “IRC”) is monitoring the land acquisition andinvoluntary resettlement, and external consultant hired by IRC ismonitoring the state of paying compensation and residents' living
conditions after resettlement.
(7) Cross-Cutting Issues
1) The MPWT obligates contractors to implement HIV/AIDS prevention
program as a part of health care for workers.
2) The Project will contribute to climate risk mitigation (adaptation) throughmeasures such as raising the level of some sections of the road surface
and proper construction of water supply pipes and drainage pipes under
the road in order to prevent further flood damage. In addition, widening

the road and constructing bypasses will reduce greenhouse gas (GHG)
emissions by easing traffic congestion. The estimated reduction of GHG
emission is 5,341t CO2/year.
(8) Gender Categorization: [Gender Project] GI(S) (gender activity integrationproject)<Activity Contents / Reason for Categorization> The Project, which falls underthe "Gender Strategy: Mainstreaming in Public Works and Transport Sector
2016-2020" (confirmed as valid by the implementing agency as of January2024), requires contractors to develop a gender plan and implement
initiatives to create employment opportunities for women. It sets a target ofat least 10% women in the unskilled workforce.
(9) Other Important Issues: N/A
4. Targeted Outcomes(1) Quantitative Effects
1) Outcomes (Operation and Effect Indicators)

Indicators

Target roads

Baseline(Actual valuein 2012)

Annual average
daily traffic(PCU*/day)Thlea Ma'am Battambang
PursatbypassSri Sophorn - Poipet

Travel time(minutes)(Prek Kdam -Thlea Ma'am Battambang(including the Pursat

Thlea Ma'am)

bypass)Target (2028)[Expected value 2years after projectcompletion]**

6,174

19,374-

17,343

7,454

21,142

116

148.4

Sri Sopon - Poipet
4448.2* PCU: Passenger Car Unit. To show traffic volume, one passenger car iscounted as 1 PCU, and other types of vehicles are converted intopassenger cars by multiplying them by a given coefficient according totheir types.
** Target (2028) [Expected value 2 years after project completion]: Thetarget figures are set in the detailed design by revising the estimates for2028 calculated at the time of the Preparatory Survey (2014).

(2) Qualitative Effects
Promotion of the investment environment through the improvement ofphysical distribution between Thailand and Cambodia, as well as bringing
benefits to Japanese companies in Cambodia. Strengthening of connectivity
and promoting regional integration. Securing of safe passage, increasingof the transportation capacity and improvement of the logistics efficiency
through improving the condition of existing roads. Improvement of safety forpedestrians and, etc., through securing shoulders and sidewalks andinstalling 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 to be 17.6%. Since the Project is forconstruction of a road for which no toll will be collected, Financial Internal
Rate of Return (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: 40 years
5. Prerequisites / External Conditions(1)(2)

Preconditions: None in particular.
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 No. 6, Siem Reap Section (Grant Aid for Cambodia)(year of evaluation: FY2005), and the Indus Highway Construction Project(Japanese ODA Loan for the Islamic Republic of Pakistan) (year of evaluation:FY2004), it has been learned that reckless driving and overloaded vehicles havefrequently caused traffic accidents. A lesson learned is that it is necessary tosecure safety through installing ancillary roads facilities and measures for control
on overloaded vehicles. Based on the above, as part of the effort to ensure trafficsafety, the Project includes plans to install a median divider (of width 3 m) over
the whole of the section covered by the Project and weigh stations over thewhole National Road No.5, together with other road safety infrastructures. Theseare expected to contribute to reduction of traffic accidents.

7. Evaluation Results
The Project aligns with Cambodia's development challenges and policies, andwith Japan's and JICA's cooperation policies and analyses. It also contributes tostrengthening the connectivity in the Mekong region through infrastructuredevelopment, which is a priority for the Japanese government. In addition, sinceTechnical Assistance Project related to National Road No. 5 Improvement
Project aims to ensure road safety in the areas along the route, it is considered
to contribute to achievement of SDG Goal 9 (Resilient Infrastructure andIndustrialization) and Goal 3 (Good Health and Well-being), particularly Target
3.6 (Halve the number of global deaths and injuries from road traffic accidents).
Therefore, there is high necessity to implement the Project.
8. Plan for Future Evaluation(1) Indicators to be Used in Future Evaluation
As indicated in 4.
(2) Timing of Future Evaluation
Two years after project completion (ex-post evaluation)
END