DEPARTMENT OF THE TREASURY

WASHINGTON, D.C.

ASSISTANT SECRETARY

ACTION MEMORANDUM FOR ASSISTANT SECRETARY FITZPAYNE

FROM: Marisa Lago

Assistant Secretary for International Markets and Development

SUBJECT: Transmission Package for the Third Cambodia Report

Recommendation: That you transmit the attached third Cambodia report from the United States 

Executive Director of the World Bank (Tab 1) to the respective chairs of the appropriations 

committees using the attached cover letters (Tab 2). Attached at Tabs 3, 4 and 5, respectively, 

are the Cambodia reporting requirement, the second report and the first report.

________ Approve ________ Disapprove ________ Let’s Discuss

Background: Section 7043(c)(5) of the Department of State, Foreign Operations, and Related 

Programs Appropriations Act, 2014 requires the United States Executive Director of the World 

Bank (the USED), at the direction of the Secretary of the Treasury, to report to the Committees 

on Appropriations not later than 45 days after enactment of the Act and every 90 days thereafter 

until September 30, 2014, on the steps being taken by the World Bank to provide appropriate 

redress for the Boeung Kak Lake area (BKL) families who were harmed by the Land 

Management and Administration Project, as determined by the World Bank Inspection Panel. 

The Section also provides that the report discuss steps taken by the USED to postpone Bank 

reengagement with Cambodia.

Attached at Tab 1 is the third report from the USED’s office required by section 7043(c)(5). It 

documents the status of efforts by the Cambodian government to provide land title to families 

remaining in the BKL area, create livelihood support programs for families evicted from the 

area, and demarcate the developer’s land from the community’s land. The report also describes 

recent developments toward resolution of the impasse and how the USED has urged World Bank 

Management to exercise caution with respect to possible re-engagement with Cambodia given

the political impasse stemming from July 2013 elections. The attached transmission letter (Tab 

2) conveys our intent to: 1) continue monitoring this situation closely; 2) press the World Bank 

to play a constructive role in encouraging a positive outcome for BKL families; and 3) counsel 

the World Bank to proceed cautiously on re-engagement with Cambodia and only in conjunction 

with comprehensive stakeholder consultations. 

Attachments

Tab 1: September 2014 USED Report

Tab 2: Draft Treasury Transmission Letters

Tab 3: Cambodia Reporting Requirement

Tab 4: June 2014 USED Report

Tab 5: March 2014 USED Report
IA Clearance Sheet

Subject: Transmission Package for Cambodia Report

Drafted: D.Crane, OUSED/S.Rzemien, MDB Office, exts. 458-1549/362-6208

Approved: Deputy Assistant Secretary Alexia Latortue (8/19/2014)

Cleared: IA/ISS – S. Bleiweiss 8/18/14

GC – J. Klein 8/21/14 

Leg Affairs – L. Peña 8/21/14

Pub Affairs – H. Shulman 8/22/14

MDB – K. Mathiasen 8/18/14 

OUSED WB – S. Aviel 8/25/14

Post on IA intranet? YES
Report of the United States Executive Director of the World Bank Pursuant to Section 

7043(c)(5) of the FY 2014 State, Foreign Operations Appropriations Act

As of August 25, 2014

Background

This report responds to Section 7043(c)(5) (the “Section”) of the Department of State, Foreign 

Operations, and Related Programs Appropriations Act of 2014 (found at Division K of the 

Consolidated Appropriations Act (P.L. 113-76)). The Section requires reports from the United 

States Executive Director of the World Bank (the “USED”) on the steps being taken by the 

World Bank to provide appropriate redress for the Cambodian Boeung Kak Lake area (“BKL”) 

families who were harmed by the Land Management and Administration Project, as determined 

by the World Bank Inspection Panel. The Section cross-references a definition of “appropriate 

redress” described in Senate Report 113-81. 

Senate Report 113-81 provides that “Appropriate redress shall include the provision of legal 

security of tenure to the 66 families remaining in the Boeung Kak area who have been excluded 

from receiving land titles; clear demarcation of the developer’s concession and the area reserved 

for the community; and the establishment of livelihood programs for those forcibly evicted from 

the Boeung Kak area, in accordance with the World Bank Policy on Involuntary Resettlement.” 

The Section also specifies that the report include steps taken by the USED to postpone 

reengagement of World Bank programs in Cambodia until the following requirements have been

met: “(A) such government is conducting and implementing, with the concurrence of the 

political opposition in Cambodia, an independent and credible investigation into irregularities 

associated with the July 28, 2013, parliamentary elections, and comprehensive reform of the 

National Election Committee; or (B) all parties that won parliamentary seats in such elections 

have agreed to join the National Assembly, and the National Assembly is conducting business in

accordance with the Cambodian constitution.”

The first report was submitted on March 11, 2014. The second report was submitted on June 5,

2014. This report focuses on developments over the past three months. 

Redress for BKL Families

Based on new information that the World Bank has cross-checked with local NGOs, there are 

presently 59 BKL families without land title (rather than 49 families as the World Bank had 

previously reported). These 59 families are comprised of: (1) 16 families that live in an area that 

is no longer considered part of the developer's concession and the government is not negotiating 

with them; and (2) 43 families in negotiation with the Government in Phnom Penh. The World 

Bank reports that negotiations for land title have reached an advanced stage for seven of the 43 

families, with land title for six of these families expected in the next several weeks. Both the 

World Bank and international CSOs have emphasized that it remains difficult to obtain precise 

figures for the number of families.
World Bank Management has reported that discussions are ongoing between Phnom Penh 

authorities and the remaining BKL residents described above, but that demarcation of the 

developer’s concession and the area reserved for the community has not yet been initiated. Our 

expectation is that the demarcation issue will become more important once the land titling for 

remaining families is completed, at which point clear demarcation of the developer’s boundary 

will be needed to provide confidence in the land titles provided. 

With respect to livelihood support for the upwards of 3,500 former BKL families that have been 

resettled, the USED’s office continues to press World Bank Management to lay the groundwork 

for a possible World Bank project that would address BKL families’ needs. More specifically, in 

communications in June and August, the USED’s office encouraged the World Bank Country 

Director (based in Thailand) and the Country Manager (based in Cambodia) to seek a request 

from Cambodian authorities, and otherwise begin preparatory work, for an urban livelihoods 

project financed through a World Bank loan that would (1) identify and include BKL resettled 

families; (2) assess the needs of such families; and (3) provide support to bring them to a 

reasonable living standard. This would likely be part of a broader urban livelihood support 

project for Phnom Penh. The USED’s office expects to gain greater traction on this proposed 

project when the political impasse in Cambodia is resolved and broader World Bank reengagement in Cambodia becomes a possibility. The USED’s office has made it clear in 

communications with World Bank Management that such an urban livelihood project should be 

an early part of any World Bank re-engagement in the country. 

Re-engagement of the World Bank in Cambodia

The World Bank has to date refrained from moving forward with re-engagement in Cambodia, a 

stance which the USED’s office has encouraged through periodic communications with the Vice 

President for East Asia and Pacific and the Country Director. The World Bank’s initial plans to 

begin consultations on an Interim Strategy for Cambodia, the vehicle for re-engagement, have 

been on hold since January 2014 in recognition that such consultations would need to include the 

political opposition. Opposition parliamentarians have so far been unwilling to join 

consultations with the World Bank. As a result, World Bank funds originally intended for 

Cambodia for the July 2011 through June 2014 period (corresponding to the 16th replenishment 

of the International Development Association) have been reallocated to other countries. 

On August 8, 2014, opposition parliamentarians took their seats in a session of the National 

Assembly for the first time since the disputed elections of July 2013. Discussions between the 

ruling and opposition parties over the implementation of proposed electoral and parliamentary 

reforms, including through the formulation of laws or constitutional amendments, 

continue. These recent positive political developments may create room for a reassessment in 

the near future of the U.S. position on World Bank re-engagement in Cambodia. The USED’s

office will continue to coordinate with the U.S. Department of State on its assessment of the 

Cambodian political context, and implications for U.S. policy.

 

World Bank Management has reported that it has been discussing with Cambodian authorities a 

possible timeline that would involve consultations with stakeholders in October-November 2014 
on an Interim Strategy. This would be intended to lead to World Bank re-engagement in 2015 if 

conditions are right.

Conclusion

The USED’s office will continue to be a strong advocate for addressing the needs of remaining 

and resettled BKL households, and will underscore the importance of comprehensive stakeholder 

consultations as an essential element of any World Bank re-engagement. The USED’s office

will also continue to closely monitor the situation, through frequent communications with the 

U.S. embassy in Cambodia, civil society organizations, and World Bank Management.
The Honorable Lindsey Graham

Ranking Member, State, Foreign Operations, and Related Programs Subcommittee

United States Senate

Washington, DC 20510

Dear Senator Graham:

Section 7043(c)(5) of the FY 2014 State, Foreign Operations Appropriations Act (the “Act”) 

requires the United States Executive Director of the World Bank (the “USED”), at the direction 

of the Secretary of the Treasury, to report to the Committees on Appropriations not later than 45 

days after enactment of the Act and every 90 days thereafter until September 30, 2014, on the 

steps being taken by the World Bank to provide appropriate redress for the Boeung Kak Lake 

area (“BKL”) families in Cambodia who were harmed by the Land Management and 

Administration Project, as determined by the World Bank Inspection Panel. The report must also 

describe steps taken by the USED to postpone reengagement of World Bank programs in 

Cambodia.

Attached is the third report by the USED’s office, which provides an update on redress for 

affected families, including land titling for families remaining in BKL and livelihood support for 

families that have been resettled. The USED’s office has continued to press World Bank 

Management on the importance of redress for BKL affected families. The USED’s office has 

also urged caution about the World Bank’s potential re-engagement in Cambodia and the need 

for comprehensive consultations to precede any re-engagement. Recent positive political 

developments, with opposition parliamentarians joining an August 8 session of the National 

Assembly, may provide room to reassess the U.S. position on re-engagement in the near future. 

The USED’s office will continue monitoring the situation closely, and will press World Bank

Management to play a constructive role.

Treasury staff remains ready to answer any questions that you may have on this matter. Please 

contact Lisa Peña at the Office of Legislative Affairs at 202-622-1900.

Sincerely,

Alastair Fitzpayne

Assistant Secretary for Legislative Affairs

Enclosure
The Honorable Patrick Leahy

Chairman, State, Foreign Operations, and Related Programs Subcommittee

United States Senate

Washington, DC 20510

Dear Chairman Leahy:

Section 7043(c)(5) of the FY 2014 State, Foreign Operations Appropriations Act (the “Act”) 

requires the United States Executive Director of the World Bank (the “USED”), at the direction 

of the Secretary of the Treasury, to report to the Committees on Appropriations not later than 45 

days after enactment of the Act and every 90 days thereafter until September 30, 2014, on the 

steps being taken by the World Bank to provide appropriate redress for the Boeung Kak Lake 

area (“BKL”) families in Cambodia who were harmed by the Land Management and 

Administration Project, as determined by the World Bank Inspection Panel. The report must also 

describe steps taken by the USED to postpone reengagement of World Bank programs in 

Cambodia.

Attached is the third report by the USED’s office, which provides an update on redress for 

affected families, including land titling for families remaining in BKL and livelihood support for 

families that have been resettled. The USED’s office has continued to press World Bank 

management on the importance of redress for BKL affected families. The USED’s office has 

also urged caution about the World Bank’s potential re-engagement in Cambodia and the need 

for comprehensive consultations to precede any re-engagement. Recent positive political 

developments, with opposition parliamentarians joining an August 8 session of the National 

Assembly may provide room to reassess the U.S. position on re-engagement in the near future. 

The USED will continue monitoring the situation closely, and will press World Bank 

Management to play a constructive role.

Treasury staff remains ready to answer any questions that you may have on this matter. Please 

contact Lisa Peña at the Office of Legislative Affairs at 202-622-1900.

Sincerely,

Alastair Fitzpayne

Assistant Secretary for Legislative Affairs

Enclosure
The Honorable Kay Granger

Chairwoman, State, Foreign Operations, and Related Programs Subcommittee

Appropriations Committee 

U.S. House of Representatives

Washington, DC 20515

Dear Chairwoman Granger:

Section 7043(c)(5) of the FY 2014 State, Foreign Operations Appropriations Act (the “Act”) 

requires the United States Executive Director of the World Bank (the “USED”), at the direction 

of the Secretary of the Treasury, to report to the Committees on Appropriations not later than 45 

days after enactment of the Act and every 90 days thereafter until September 30, 2014, on the 

steps being taken by the World Bank to provide appropriate redress for the Boeung Kak Lake 

area (“BKL”) families in Cambodia who were harmed by the Land Management and 

Administration Project, as determined by the World Bank Inspection Panel. The report must also 

describe steps taken by the USED to postpone reengagement of World Bank programs in 

Cambodia.

Attached is the third report by the USED’s office, which provides an update on redress for 

affected families, including land titling for families remaining in BKL and livelihood support for 

families that have been resettled. The USED’s office has continued to press World Bank 

management on the importance of redress for BKL affected families. The USED’s office has 

also urged caution about the World Bank’s potential re-engagement in Cambodia and the need 

for comprehensive consultations to precede any re-engagement. Recent positive political 

developments, with opposition parliamentarians joining an August 8 session of the National 

Assembly, may provide room to reassess the U.S. position on re-engagement in the near future.

The USED will continue monitoring the situation closely, and will press World Bank 

Management to play a constructive role.

Treasury staff remains ready to answer any questions that you may have on this matter. Please 

contact Lisa Peña at the Office of Legislative Affairs at 202-622-1900.

Sincerely,

Alastair Fitzpayne

Assistant Secretary for Legislative Affairs

Enclosure
The Honorable Nita Lowey

Ranking Member, State, Foreign Operations, and Related Programs Subcommittee

House Appropriations Committee

U.S. House of Representatives

Washington, DC 20515

Dear Congresswoman Lowey:

Section 7043(c)(5) of the FY 2014 State, Foreign Operations Appropriations Act (the “Act”) 

requires the United States Executive Director of the World Bank (the “USED”), at the direction 

of the Secretary of the Treasury, to report to the Committees on Appropriations not later than 45 

days after enactment of the Act and every 90 days thereafter until September 30, 2014, on the 

steps being taken by the World Bank to provide appropriate redress for the Boeung Kak Lake 

area (“BKL”) families in Cambodia who were harmed by the Land Management and 

Administration Project, as determined by the World Bank Inspection Panel. The report must also 

describe steps taken by the USED to postpone reengagement of World Bank programs in 

Cambodia.

Attached is the third report by the USED’s office, which provides an update on redress for 

affected families, including land titling for families remaining in BKL and livelihood support for 

families that have been resettled. The USED’s office has continued to press World Bank 

management on the importance of redress for BKL affected families. The USED’s office has 

also urged caution about the World Bank’s potential re-engagement in Cambodia and the need 

for comprehensive consultations to precede any re-engagement. Recent positive political 

developments, with opposition parliamentarians joining an August 8 session of the National 

Assembly, may provide room to reassess the U.S. position on re-engagement in the near future.

The USED will continue monitoring the situation closely, and will press World Bank 

Management to play a constructive role.

Treasury staff remains ready to answer any questions that you may have on this matter. Please 

contact Lisa Peña at the Office of Legislative Affairs at 202-622-1900.

Sincerely,

Alastair Fitzpayne

Assistant Secretary for Legislative Affairs

Enclosure 

CAMBODIA:

Section 7043(c)(5) – The Secretary of the Treasury shall direct the United States executive 

director to the World Bank to report to the Committees on Appropriations not later than 45 days 

after enactment of this Act and every 90 days thereafter until September 30, 2014, on the steps 

being taken by the World Bank to provide appropriate redress for the Boeung Kak Lake families 

who were harmed by the Land Management and Administration Project, as determined by the 

World Bank Inspection Panel, and as described in Senate Report 113–81: Provided, That such 

report shall also include steps taken by the executive director to postpone reengagement of 

World Bank programs in Cambodia until the requirements of paragraph (2) are met.

(2) None of the funds appropriated by titles III and IV of this Act may be made available 

for assistance for the central Government of Cambodia unless the Secretary of State 

certifies to the Committees on Appropriations that—

(A) such government is conducting and implementing, with the concurrence of the 

political opposition in Cambodia, an independent and credible investigation into 

irregularities associated with the July 28, 2013 parliamentary elections, and 

comprehensive reform of the National Election Committee; or (B) all parties that won 

parliamentary seats in such elections have agreed to join the National Assembly, and the 

National Assembly is conducting business in accordance with the Cambodian 

constitution. 

(3) The requirements of paragraph (2) shall not apply to assistance for global health, food 

security, humanitarian demining programs, human rights training for the Royal 

Cambodian Armed Forces, or to enhance maritime security capabilities, except that any 

such programs shall be subject to the regular notification procedures of the Committees 

on Appropriations.

Senate Report 113-81 provides at page 62: “[A]ppropriate redress shall include the 

provision of legal security of tenure to the 61 families remaining in the Boeung Kak area 

who have been excluded from receiving land titles; clear demarcation of the developer’s 

concession and the area reserved for the community; and the establishment of livelihood 

programs for those forcibly evicted from the Boeung Kak area, in accordance with the 

World Bank Policy on Involuntary Resettlement.”