Cambodia - Road Rehabilitation Project

Document of The World Bank Report No: 18977-KH PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 32.3 MILLION EQUIVALENT TO THE KINGDOM OF CAMBODIA FOR A ROAD REHABILITATION PROJECT February 16, 1999 Transport Sector Unit Southeast Asia and Mongolia Country Management Unit East Asia and Pacific Region  CURRENCY EQUIVALENTS (Exchange Rate Effective January 1999) Currency Unit = Riels LC = US$0.0002584 US$1.00 = Riels 3,795 FISCAL YEAR January 1 to December 31 ABBREVIATIONS AND ACRONYMS ADAF - Asia Development Aid Fund ADB - Asia Development Bank APCC - Advisory Project Coordination Committee AusAID - Australian Agency for International Development CAS - Country Assistance Strategy CDC - Council for the Development of Cambodia CMAC - Cambodia Mine Action Center DBST - Double Bituminous Surface Treatment ERR - Economic Rate of Return EMAP - Environmental Management Action Plan EOP - End of Project GDP - Gross Domestic Product GOJ - Government of Japan ICB - Intemational Competitive Bidding ICC - Intemational Coordinating Committee on the Safeguarding of Angkor IDA - International Development Association ILO - International Labor Organization JICA - Japan International Cooperation Agency JOC - Japan Overseas Consultant Co. Ltd. LBAT - Labor Based Appropriate Technology MMT - Maintenance Management Training MPWT - Ministry of Public Works and Transport NCB - National Competitive Bidding NR - National Road ODA - Overseas Development Administration (UK) OJT - On-the-Job Training PIU - Project Implementation Unit PRA - Participatory Rapid Appraisal PWD - Provincial Works Department RCC - Road Construction Center RGC - Royal Government of Cambodia SCCP - Steering Committee for Cultural Property SIDA - Swedish International Development Agency TRS - Transportation Rehabilitation Study UXO - Unexploded Ordnance VOC - Vehicle Operating Costs Vice President: Jean-Michel Severino Country Director Ngozi Okonjo-Iweala Sector Manager: Jitendra N. Bajpai Task Team Leader: Alain L. Labeau  KINGDOM OF CAMBODIA ROAD RERABILITATION PROJECT CONTENTS PAGE No. A. Project Development Objectives ...............................................................2 1. Project development objectives ................................................................2 2. Key performance indicators ................................................................2 B. Strategic Context ................................................................2 1. Sector-related Country Assistance Strategy goal supported by the project ...............................2 2. Main sector issues and Government strategy ................................................................2 3. Sector issues to be addressed by the project and strategic choices ............................................4 4. Non-Sector issues to be addressed by the project and strategic choices ...................................5 C. Project Description Summary ................................................................6 1. Project components ................................................................6 2. Key policy and institutional reforms to be supported by the project .........................................6 3. Benefits and Target Population ................................................................7 4. Institutional and implementation arrangements ................................................................ 7 D. Project Rationale ...............................................................8 1. Project alternatives considered and reasons rejected ................................................................8 2. Major related projects financed by the Bank and/or other development agencies .................... 9 3. Lessons learned and reflected in project design ................................................................9 4. Indications of borrower commitment and ownership ..................................... 10 5. Value added of Bank support to this project ..................................... 10 E. Summary Project Analysis ........................................... 10 1. Economic ........................................... 10 2. Financial ........................................... 11 3. Technical: ........................................... 11 4. Institutional: ........................................... 11 5. Social ........................................... 11 6. Environmental assessment ........................................... 12 7. Participatory approach ........................................... 12 F. Sustainability and Risks ........................................... 13 1. Sustainability: ........................................... 13 2. Critical Risks ........................................... 13  - ii - G. Main Credit Conditions ........................................ 13 1. Effectiveness conditions ........................................ 13 2. Agreements reached at Negotiations ........................................ 14 H. Readiness for Implementation ........................................ 14 I. Compliance with Bank Policies ........................................ 15 ANNEXES Annex 1: Project Design Summary ........................................ 16 Annex 2: Project Description ........................................ 17 Annex 3: Estimated Project Costs ....................................... 19 Annex 4: Cost Benefit Analysis Summary ....................................... 20 Annex 5: Financial Summary ....................................... 24 Annex 6: Procurement and Disbursement Arrangements ....................................... 25 Annex 7: Project Processing Budget and Schedule ......................................... , , , , . .. 29 Annex 8: Documents in the Project File ........................................ 30 Annex 9: Status of Bank Group Operations in Cambodia ........................................ 31 Annex 10: Cambodia at a Glance ........................................ . 32 Annex I 1: Draft TOR forTA to MIPWT in Institutional and Capacity Building . ....................................... 32 Annex 12: Clearance of Landmines and Unexploded Ordnance ....................................... 37 Annex 13: Project Implementation Schedule .. ............................................ 38 Annex 14: Cultural Heritage Restoration And Project Workshops ..................................... 39 Annex 15: Photographs ................ 40 Map IBRD 29747  Kingdom of Cambodia Road Rehabilitation Project Project Appraisal Document East Asia and Pacific Region Southeast Asia and Mongolia Management Country Unit Date: February 16, 1999 Task Team Leader: Alain L. Labeau Country Manager: Ngozi Okonjo-Iweala Sector Manager: Jitendra N. Bajpai Project ID: KH-PE-4030 Sector: Transport Program Objective Category: Economic Lending Instrument: SIL Program of Targeted [ ] Yes [X] No Intervention: Project Financing Data [] Loan [X] Credit [] Guarantee [ Other [Specify] For Loans/Credits/Others: Amount (SDRm/US$m): SDR 32.3 million (US$45.31 million equivalent) Proposed terms: [ Multicurrency [] Single currency, specify Grace period (years): 10 [ Standard Variable [ Fixed [ LIBOR- based Years to maturity: 40 Commitment fee: 0.50% Service charge: 0.75% Financing plan (US$m): Source Local Foreign Total Government 2.29 - 2.29 Cofmanciers: Government of Japan* IDA 8.42 36.89 45.31 Total 10.71 36.89 47.60 Borrower: Kingdom of Cambodia Responsible agency: Ministry of Public Works and Transport Estimated disbursements (Bank 1999 2000 2001 2002 2003 2004 FY/US$M): Annual 0 7.00 12.90 21.30 3.61 0.50 Cumulative 0 7.00 19.90 41.20 44.81 45.31 Project implementation period: 5 years Expected effectiveness date: July 1, 1999 Expected closing date: June 30, 2004 *The Kingdom of Cambodia is seeking an Investment Grant from the Government of Japan to finance part of the Road Rehabilitation project. An understanding was reached at the negotiations of the IDA credit, that US$5.04 millions would be canceled from the IDA credit as soon as the Japan Investment Grant would become effective, which is expected by not later than July 1, 2000. At the same time the counterpart funds from the Royal Government of Cambodia would be reduced to US$2.02 millions equivalent.  Project Appraisal Document Page 2 Road Rehabilitation Project Country: Cambodia A. PROJECT DEVELOPMENT OBJECTIVES 1. Project development objectives The project development objectives are to improve access to rural areas and build the framework for future sector reform. 2. Key performance indicators The key performance indicators are: (i) vehicle operating costs; (ii) traffic volume; and (iii) endorsement of a Transport Sector Master Plan based on a national transport policy. B. STRATEGIC CONTEXT 1. Sector-related Country Assistance Strategy goal supported by the project The project supports the Country Assistance Strategy (CAS) goal of generating sustainable economic growth and social development (CAS document number: 16255-KH and date of latest CAS discussion: February 20, 1997). The project will contribute to achieving this goal by improving mobility and commerce between important parts of the country and reducing road transport costs. In addition, it will restore access to major tourist attractions like Angkor monuments, thereby increasing revenues from tourism. 2. Main sector issues and Government strategy Social and political situation Given Cambodia's recent history and current situation, the Government's first priority is to address political and social issues. Until the political situation is stabilized, the Government is likely to continue its ad hoc, piecemeal approach to the transport sector, focusing on physical works. The challenge for the Bank and other donors is to assist with essential physical investments while supporting the development and elaboration of a policy framework. Condition of main national roads Cambodia's national highway system has deteriorated as a result of decades of violent conflict, political instability, and lack of maintenance. Although emergency rehabilitation was carried out from 1991 to 1996 on arterial roads, many sections have since deteriorated further, rendering some virtually impassable, especially during the rainy season, and particularly for heavy vehicles. Furthermore, most of the bridges constructed during this rehabilitation effort are still temporary structures. Govermment strategy is to cooperate with provincial governments and international donor agencies to identify high-priority national roads and to fund their rehabilitation in order to realize the development potential of agriculture, fisheries, tourism and trade in rural areas Shortage of funds for road construction and maintenance The condition of the road network is such that funding requirements for road construction and maintenance far exceed availability. Local funding is extremely problematic, not only to provide road maintenance, but also to provide counterpart funds for foreign-funded road rehabilitation projects. Furthermore, although municipalities and provincial governments are responsible for urban roads, drainage, and traffic control, they have almost no direct sources of revenue and depend on transfers from  Project Appraisal Document Page 3 Road Rehabilitation Project Country: Cambodia Government strategy is to explore options to increase the availability of local funds for road construction and maintenance, including the possibility of a Road Fund, and to use existing funds and resources more effectively. In the case of foreign funding, the government's strategy is to cooperate with funding agencies in identifying the highest investment priorities and to encourage coordination among the donors to ensure that those priorities are addressed as effectively as possible. Capacities of road agencies The Ministry of Public Works and Transport (MPWT) and the Public Works Departments (PWDs) have inadequate capacity to plan, manage, and implement road construction and maintenance, despite recent ADB technical assistance to MPWT's planning department for capacity building. The Bank and MPWT are considering the use of grant financing to provide additional input to developing capacity in this area. Within MPWT, morale is low, as are salaries ($20 to $90 a month). Low-level positions are overstaffed, and job responsibilities and levels of authority are not clearly defined. Agencies have little experience with standard procurement procedures and contract management, and must deal with the multiple guidelines and standards of various international donors. Force account units have staffing and funding problems and obsolete and inoperable equipment. The Government applies a range of strategies in dealing with these problems. A government-wide program of staff reductions attained primarily through attrition and voluntary separation is in place. This reduction in staff allows for higher salaries for remaining employees. Formal training programs and on- the-job training, partly through foreign technical assistance, have been instituted to improve capacity. Government shows little inclination, however, to borrow for training and technical assistance programs. MPWT does not have a transport sector policy, but a work program derived from the country's five-year development plan. While several transport sector policies have been enunciated, such as reducing the staff complement of the Ministry, and privatizing maintenance, these do not constitute a strategic plan. A true sector policy, including a definition of MPWT's mission and role, and plans to fulfill these, needs to be established. MPWT explicitly recognizes the need to develop such a comprehensive policy framework with the input of key constituencies in Cambodia. Capacity of local construction industry Given the prolonged absence of a market for road works, Cambodia has not developed a local construction industry. Several large-scale foreign contractors are active in Cambodia, and some local contractors are capable of carrying out or participating in contracts under national competitive bidding. However, the majority of the larger local contractors specialize in building and housing construction, for which there is increasing demand. The development of the road and bridge segment of the local construction industry is essential to ensure sufficient local capacity for road maintenance, as well as to participate in ongoing and future road rehabilitation works. The Government's strategy to improve local road construction industry is first to take steps to ensure adequate financing for future road maintenance, and then to provide contracting opportunities for local contractors to play a steadily increasing role in road maintenance. This will be made possible by continued training of MPWT staff in road maintenance planning and programming, procurement procedures, and contract management.  Project Appraisal Document Page 4 Road Rehabilitation Project Country: Cambodia 3. Sector issues to be addressed by the project and strategic choices Condition of Main National Roads The roads to be rehabilitated under the project were selected in consultation with the Government, applying the criteria of: importance to the country's road network, condition of the roads, economic and social impact of rehabilitation, conformity with the World Bank's CAS, and findings of previous studies. The provinces and the specific road sections selected represent about 30 percent of the total population and 25 percent of rice producing areas, contain the three main urban areas, and include the two main ports and the major tourist center. In most cases, the sections will be the last links required to complete the rehabilitation of important routes through major agricultural areas, through the major tourist area, and between major population centers, such as between Phnom Penh and Siem Reap (NR6) and Phnom Penh and Sihanoukville (NR3). Thus, the affected populations will include those beyond the direct areas of influence along the improved road sections. Both National Roads included in the project are also significant in terms of foreign trade, with NR3 connecting to the major seaport Sihanoukville, and NR6 to Thailand. All of the selected roads are badly deteriorated, with extreme surface roughness resulting in exceptionally high vehicle operating costs. Since many sections are now virtually impassable, completing major links in the road system will have great beneficial impact. The selection was based primarily on the estimated economic rate of return (ERR) on the investments, but also took into consideration poverty alleviation and improved delivery of social services. In a number of cases, the selected sections had been included in previous studies that recommended their rehabilitation as a high priority. A second round of strategic choices involved balancing the standard level of structural design with the desire to rehabilitate as many kilometers of high-priority roads as possible. The project has adopted a conservative structural design that takes into account the potential risk of low level of follow-up maintenance. Shortage of Funds The project will have an indirect remedial effect on the shortage of funds by assessing options for raising funds for road construction and maintenance through its technical assistance to support the MPWT in developing a transport sector policy, and by encouraging more effective use of available funds. In the short term, the project will seek mitigation measures to avoid a lack of counterpart funds (see Section F.2 Critical Risks) which might threaten project implementation. Capacities of Road Agencies The project will support MPWT's efforts to develop a transport sector policy to provide the strategic framework and plan for making and implementing important changes, including the phasing out of force account procedures for road maintenance. The transport sector policy and strategic plan will address all aspects of MPWT operations-organization, staffing, skill requirements, systems, procedures, culture, financing, and regulatory framework. The project will also bolster MPWT's institutional capacity by providing classroom and on-the-job training, and by providing some equipment for training purposes. The Project Implementation Unit (Pm), to be established by the MIPWT, will contribute to the MPWT's capability to plan, contract, manage and supervise road maintenance tasks, as well as to implement and monitor actual construction. Technical assistance within the project will support the PITJ in these learning efforts.  Project Appraisal Document Page 5 Road Rehabilitation Project Country: Cambodia Capacity of the local construction industry The project's strategy to improve the capacity of the local construction industry is to improve coordination among donors (especially the ILO and ADB) by setting up a database on the local construction industry. The project will also include a component of urban road rehabilitation to serve primarily to identify and employ local contractors under small maintenance contracts. This will contribute to understanding the local construction industry's capabilities and constraints, and ways to strengthen it. Building on these initiatives, the project will identify additional technical assistance or studies needed (to be financed from trust funds or future lending) which might further the development of the local construction industry (e.g., a study of an enabling environment for sustainable growth of the contracting and consulting industries). 4. Non-Sector issues to be addressed by the project and strategic choices Clearance of Mines and UXO Cambodia is heavily contaminated by landmines, especially in the northwestem provinces. Mines are found primarily in areas with residual military activity, around key infrastructure, and in former battlefields. Unexploded ordnance (UXO), including unexploded bombs from the 1970-75 US Air Force aerial bombing campaign, are also found in great number throughout the country, especially along the Ho Chi Minh Trail. A mission assessed the landmine situation in areas concerned by the project. It met all mine clearing organizations in the areas, traveled the road sections to be rehabilitated, and interviewed dispensary workers, villagers, and government officials. The NR6 section was cleared of mines during a spring 1998 campaign, although deeply buried UXO may remain near bridges. Local people consider the NR3 to be free of mines and NGOs consider the province a low-risk area. Based on this information, on Government assurances backed by CMAC surveys that there is no serious mine threat, and on the assumption that no new mines will be laid in the meantime, systematic mine clearance is not judged necessary on the project areas. However, certain areas are deemed at risk and should be checked during operations. The civil works contractor will hire a specialized team to assist in identifying these areas: those to be excavated, including bridges, for possible UXO contamination; areas where stones will be displaced, including archeological bridges; and possibly access roads to quarries and borrow pits. The team will be available on call to check for UXO and landmines before works begin in these risk areas. Since clearance standards adequate for vehicles and pedestrians may not be sufficient for civil works, the team will have the capacity to detect deeply buried UXO. Protection of Cultural Heritage The entire province of Siem Reap, including roads to be rehabilitated under the project (NR6), falls within the Historic Site of Angkor which was inscribed on the World Heritage List in 1992 in accordance with the 1972 World Heritage Convention. Ten Angkor Dynasty (9-13th century) bridges along a road alignment leading to the city of Angkor form part of the NR6 roadway from Siem Reap to the provincial border with Kampong Thom. One of these bridges is the 85-meter long Spean Praptos in Kampong Kdai, one of the most important legacy of civilian architecture in Cambodia from that era, and of great significance to the Khmer people. A combined archeological and structural engineering mission studied the bridges, and recommended maintaining the ancient road alignment and including the bridges in the rehabilitation of NR6, restoring, reinforcing, and widening them. The Cambodian Steering Committee on Cultural Property (SCCP) accepted these recommendations. To ensure sustainable preservation of the Praptos bridge, the Bank and MPWT will work with local communities to identify incentives they require to assume responsibility for maintaining the bridge and developing its surroundings to meet environmental and social needs. The restored Praptos bridge is expected to provide an attractive venue for tourists. A protocol for use in the  Project Appraisal Document Page 6 Road Rehabilitation Project Country: Cambodia event that artifacts are discovered during earthmoving works will be established. Both restoration work and mitigation measures to protect the heritage value of the Praptos bridge and nine smaller ones will be financed under the project as part of the construction contract on NR 6. C. PROJECT DESCRIPTION SUMMARY 1. Project components The project will be financed by the World Bank, with a contribution from the Government of Japan (GOJ) for the rehabilitation of NR6. It comprises the following components: * Rehabilitation of 89.3 km of NR6, including restoration of ten ancient bridges; 21 .5 km of NR 3, including culvert replacement or repair. Rehabilitation works include 52 bridges and sub- components for mine and UXO clearance and protection of cultural heritage; * Rehabilitation of 4.4 km of urban streets in Phnom Penh and Sihanoukville to serve as on-the-job training for small-scale contractors; * Procurement of minor equipment for use in road maintenance training; * Technical Assistance for construction supervision of the civil works on NR3 and NR6; 3 Technical Assistance for support to MPWT in institutional and capacity building, including transport sector policy and Master Plan Development, and financial and accounting management of project implementation; * Training courses, workshops, seminars, and consulting services for studies, progress monitoring, and preparation of a future project. Component Sector Indicative % of Bank % of Bank Costs Total financing financing (US$M) (US$M) Rehabilitation of national QQ, TH, 33.62 71 31.94* 95 roads NR3 and NR6 VR, VY Rehabilitation of urban roads UY, IL 1.4 3 1.33 95 Land mines and UXO MY 0.56 1 0.53 95 Security Resettlement costs VR 0.4 1 0 Cultural Heritage Protection QQ, MY 1.8 4 1.71 95 Road Safety/Community TY 0.28 1 0.27 95 Improvements Minor equipment for use in BB 2.29 5 2.29 100 training Technical assistance: TH 3.26 7 3.26 100 construction supervision Technical assistance and BB 3.22 7 3.22 100 training to MPWT Operating Costs BY 0.77 2 0.77 100 Total 47.60 1 1 45.31 95% * After the Japanese grant becomes effective, this amount will be limited to $26.89 million and the total IDA credit goes to $40.27 million. 2. Key policy and institutional reforms to be supported by the project The policy objectives supported by the project are to assist MPWT identify the changes needed to achieve long-term, sustainable development of the transport sector, and to start to prioritize and implement them within a strategic policy framework.  Project Appraisal Document Page 7 Road Rehabilitation Project Country: Cambodia 3. Benefits and Target Population The rehabilitation of NR6 will reopen a large agricultural area in Siem Reap province to the north of the Tonle Sap, and, in conjunction with adjacent road projects, the road connection between Siem Reap and Phnom Penh. Furthermore, the road will serve the Angkor Wat area, easing transportation for tourists, and provide an alternative to NR5 for traffic between the Thai border, Phnom Penh, and Laos. The section of NR 3 to be rehabilitated connects the NR4, recently rehabilitated by USAID, with the border between Sihanoukville and Kampot Province where the ADB NR3 emergency rehabilitation project stopped. This is an important link for the economy of the provinces south of Phnom Penh, as it will connect them to the port of Sihanoukville, allowing freight to be hauled directly from Sihanoukville to the southern provinces. Freight is now usually hauled from the port to Phnom Penh using the NR 4 and then distributed to the south. The link will also open up an alternative to the NR4 for freight from the port to Pbnom Penh. The need for such an alternative was graphically illustrated in late 1997 when monsoon rains washed out a bridge on the NR 4, cutting off all traffic to Pbnom Penh for months. Finally, the rehabilitation of urban roads will serve primarily as practical training exercises on periodic maintenance contract management and on-the-job training for small-scale contractors. The target population is everyone living, and/or working in the areas of influence of the roads, and those living and/or working in the areas of influence of the connecting roads. This includes farmers in the rural areas, consumers in urban areas; truckers, bus operators and other road users, traders in domestic and international commerce; local contractors, and people employed in the tourism industry and supporting industries. The beneficiary agencies include the MPWT and the PWDs in the three provinces concerned, as well as various agencies in the national and provincial governments. The individuals who receive training will also benefit The direct social and economic benefits of the project include: easier access to major domestic and international markets and sources of supply for the large population of small-scale farmers and other producers; improved access to major tourist attractions; and reduced travel times and transport costs. The distribution and impact of the benefits of reduced transport costs will depend in part on the extent to which the benefits are passed on to the users of transport services in the form of lower tariffs. The road transport industry is highly competitive, with a large number of relatively small operators, suggesting that the benefits will be passed on to the users. Through improved access to security, health, education, emergency services, agricultural extension services and similar needs, the project will indirectly bolster development in rural areas where the potential for agriculture and tourism has been suppressed, and where most of the population lives in poverty. The implementation of the project itself will provide additional employment opportunities in these areas. 4. Institutional and implementation arrangements The MPWT will be the Executing Agency for the project. An Advisory Project Coordination Committee (APCC) has been established within MPWT, consisting of five Ministry executives who are at Director level (except for the Chairman, who is an Undersecretary of State in MPWT). The APCC advises the Minister and the Secretary of State of MPWT on road sector policy matters, coordinates the efforts of various Ministries and of international donors and NGOs, and oversees the activities of project implementation units for various donor projects. MPWT has also established a Project Implementation Unit (PIJ) for this project and appointed a key senior staff as Director. The PIU will be staffed from the MPWT with suitably qualified engineers, accountant and supporting staff. The Director will be responsible for exercising the power and authority of Employer as defined in the construction contracts and for directing and managing both the administration and financial affairs of the project on behalf of the MPWT.  Project Appraisal Document Page 8 Road Rehabilitation Project Country: Cambodia The road improvement and bridge reconstruction works will be implemented by ICB contract. The rehabilitation and maintenance on urban roads will be carried out by force account and small local contractors (NCB), using the equipment of RCC and the PWDs to be provided as part of this project. Parallel financing GOJ had expressed an interest in contributing to the project by undertaking the rehabilitation of 17.5km of NR6 from the eastern outskirts of Siem Reap to approximately the junction of the Roluos Temple, representing a cost of about US$5.3 million. The final decision on the financing cannot be confirmed, however, before December 1999, by which time the project is expected to be under implementation. To bridge the time gap and cover a possible, although unlikely, withdrawal of GOJ, the IDA credit has been increased by $5.04 million equiv. representing 95% of the cost. An understanding was reached at negotiations that as soon as the Japan Investment Grant would become effective, the above amount would be cancelled from the IDA credit, reducing it to $40.27 million equiv. in compliance with the ceiling set at the Project Concept Review Meeting. Likewise, RGC counterpart would be reduced to $2.02 million equiv. from $2.29 million. The deadline for RGC to confirm the Grant Agreement is July 1, 2000. The procurement of both supervision and works of NR6 have been structured with an optional component for the rehabilitation of the 17.5km section that will be exercised after July 1, 2000 if the Japan Investment Grant has not materialized. D. PROJECT RATIONALE 1. Project alternatives considered and reasons rejected No project. Considering the urgent need for the rehabilitation of the national and provincial road network and the financial and institutional problems of the road agencies, a "do nothing" approach is not a practicable alternative. It would delay Cambodia's development and would be inconsistent with the Bank's Country Assistance Strategy. Larger credit. Many economically viable projects in the road subsector could be implemented. However, counterpart funding constraints and limited implementation capacity preclude a larger investment at this time. In addition, Cambodia has a serious external debt problem and limited sources of revenue, so large increases in borrowing must be approached with caution. Transport sector program. A transport sector program approach has theoretical merit but would strain limited MPWT and Government resources and would not prove practical at this time. Alternative levels of rehabilitation Two levels of rehabilitation were reviewed. The first option was to conform to the standards for national roads adopted by the MPWT (11 meters wide) and endorsed by other donors. The second option was to adopt a two-stage construction process, applying a lower standard (8 meters wide) initially for road sections with low traffic volumes and upgrading to the national standards when traffic volumes require it. The lower standard of rehabilitation would provide higher benefits, permit the rehabilitation of more kilometers of roads within the same budget, and better address uncertainties regarding traffic estimates (see Annex 4). However, a broad review concluded that the second option would generate additional costs at the second stage, prove less technically sound, create traffic hazards, and would be inconsistent with other sections rebuilt to the 11 -m standard. The second option was therefore rejected and the first adopted as the basis for the project design.  Project Appraisal Document Page 9 Road Rehabilitation Project Country: Cambodia New alignments along NR6. Realigning the NR6 to bypass the Praptos bridge and the nine smaller archeological bridges was considered to protect the bridges from damages caused by motorized traffic. A combined archeological and engineering survey carried out during project preparation concluded, however, and the SPCC concurred, that maintaining the road alignment on the Praptos bridge as well as the nine smaller bridges was essential to preserve the significance of the structures as the gateway to Angkor Wat. The final design of the restoration works will require the approval of the International Expert Committee for the Reinstatement of the Angkor Monuments (ICC). 2. Major related projectsfinanced by the Bank and/or other development agencies Several donors have been and continue to be involved in providing support to the transport sector. In particular, JICA and ADB have on-going projects in MPWT. In addition, the ILO is supporting the development of small-scale local contractors for road maintenance and will continue to do so under an upcoming project. An important element of the project is to keep abreast of developments in other donor- assisted efforts, to ensure mutual support, effective use of scarce resources, and to build on the experience, accumulated data, and lessons learned for future lending. Major Related Projects Financed by the Bank and other Development Agencies Sector issue Project Latest Supervision Ratings Implementation Development Progress Objective Bank financed Emergency Rehabilitation S S Social Fund HS HS Technical Assistance for Water Utilities S S Phnom Penh Power Rehabilitation S S Agriculture Production Improvement S S Disease Control and Health S S Urban Water Supply Project S S Social Fund II Negotiations Feb. 1999 _ Rural Development Negotiations Feb. 1999 JICA NR 6A, 7 Rehab. Project Advising to MPWT AUSAID Bridge Rehabilitation on NR5 and 6 Scholarships English Language Training USAID NR4 Rehabilitation. Project. ILO Rural Roads in NW area Rural Infrastructure. (SIDA-fm.) Development of small-scale contractors in rural areas ADB Road Emergency Rehab. HCMC-Phnom Penh Highway Improvement Project Transport Network Improvement Project NR 5, 6, and 7. New Zealand Training for Road Construction and Maintenance Bridge Sub-structure Evaluation Program France Road Testing Laboratories IP/DO Ratings: HS (Highly Satisfactory), S (Satisfactory), U (Unsatisfactory), HU (Highly Unsatisfactory) 3. Lessons learned and reflected in project design The Government's ability to mobilize sufficient local resources to meet requirements for counterpart funding is extremely limited. Requirements for local funding have been kept to a minimum, and the  Project Appraisal Document Page 10 Road Rehabilitation Project Country: Cambodia policy discussions to be conducted during project implementation will include possible means of raising such funds. Coordination between donors must be improved to avoid duplication of efforts and to generate synergies. The creation of a road subsector database as part of project technical assistance, including works carried out by other donors, aims to help bridge communication gaps. Capacity development and sector reform are long-term processes; expectations must be kept realistic in a country dealing with political instability and weak foundations of skills and experience. The scope of the project has therefore been limited so that the current policy and institutional framework will support its implementation-no policy or institutional changes are required to successfully implement the physical components of the project. Technical assistance has been included in the project to help MPWT begin this long-term sector policy development process. Finally, although security along NR6 has improved recently, vigilance must be maintained in monitoring the situation. A mine-clearing sub-component has been included to ensure that civil works are not carried out in an environment of undue risk. 4. Indications of borrower commitment and ownership The Government recognizes that rehabilitating the road system is a prerequisite to Cambodia's economic and social development. It has expressed a strong and consistent message to donors that it wishes external assistance to be directed primarily toward restoring basic mobility and accessibility throughout the country. The Government organized a donor coordination meeting in May 1997 to help ensure the most effective utilization of foreign assistance in the road subsector. It also explicitly recognizes the need to develop a comprehensive policy framework with the input of key constituencies in Cambodia, and to prepare a Transport Sector Master Plan for the sustainable development of the transport sector. The Borrower has also shown its commitment to the Road Rehabilitation Project by forming within the MPWT an Advisory Project Coordination Committee, a Project Implementation Unit (see sub-section C.4.) and, for purposes of the protection of cultural heritage, the Steering Committee on Cultural Property. 5. Value added of Bank support to this project Cambodia recognizes that among aid agencies, the Bank has the most extensive experience in the identification, evaluation, funding and implementation of road improvement projects in developing countries. Bank participation in this subsector is thus considered an essential element in the success of the whole road rehabilitation and development program of Cambodia. It will assist MPWT in identifying, prioritizing and implementing policy and institutional reforms needed to achieve longer term, sustainable development of the subsector. The Bank would also play a potential leading role in influencing the direction of the efforts of other donors and in encouraging coordination among the donors. These capabilities are of critical importance to the rehabilitation and development of the road system of Cambodia and to this specific project. E. SUMMARY PROJECT ANALYSIS 1. Economic Cost-Benefit Analysis: NPV=US$ 52.3 million; ERR= 31.9%  Project Appraisal Document Page 11 Road Rehabilitation Project Country: Cambodia The economic evaluation is based on "without" project and "with" project analyses (details in Annex 4) of the road sections to be rehabilitated (NR3, NR6 and five urban roads in Phnom Penh and Sihanoukville). The "without" scenario assumed that NR3 and NR6 would be maintained to a standard equivalent to IRI 14, which means that the roads would be passable only with great difficulty and by special vehicles. It should be noted that the present state of the roads is worse-between IRI 16 and 19- and bridges are virtually impassable. The "with" project analysis assumes the rehabilitation of the roads to a standard adequate for the forecast traffic of the next 10 years at least. The main quantifiable benefits for NR3 and NR6 are reductions in vehicle (including motorcycle) operating costs and time savings for passengers and freight traffic and benefits from generated traffic. The economic analysis was carried out separately for a total of eight road segments and the combined national/provincial roads as a whole. In all cases, the net present values were well above the chosen discount rate of 12 percent. In the case of NR3 and NR6 combined, the NPV is $52.3 million and the ERR 31.9 percent. Sensitivity analyses were carried out for the main parameters of the analysis (e.g., capital costs, vehicle operating costs, motorcycle operating costs, time savings). The results showed the economic robustness of the project, even under adverse conditions, including accumulation of those conditions. The economic evaluation of the urban roads in Phnom Penh and Sihanoukville is based on the same methodology used for the evaluation of NR3 and NR6, except that in the "without" scenario the maximum road roughness was assumed not to exceed IRI 10. The only benefit category taken into account is the reduction in VOC resulting from the road improvements. Even on that conservative basis, ERRs were found to be very high, ranging from 38 percent to more than 100 percent, and had a combined NPV of US$15.4 million. Other: The project will contribute to the opening up of the areas adjacent to NR3 and NR6. This will stimulate cash crop production because markets in the cities of Phnom Penh, Siem Reap and Sihanoukville will become accessible. Further, the project will facilitate the delivery of social services and contribute to institutional strengthening. These benefits are not included in the quantified economic return except as generated traffic, which captures the benefits from agricultural production only partially. 2. Financial NPV=US$ million; FRR= % See Annex 5. For the fiscal impact, refer to Section F.2. 3. Technical: The standard road design cross-section is 7-m DBST carriageway with 2- m paved shoulders on each side. Details are provided in the Feasibility Study and the Simplified Engineering Design available in the project file. 4. Institutional: See Section C.4 and Annex 11 of this report for discussion of institutional capacity. For project management arrangements, see Section C.4, and the Project Implementation Plan in Annex 13. 5. Social The project will bring improved access to goods and services to virtually everyone living in proximity to improved roads. Because the project entails no new road construction, there is no need for land acquisition. Nonetheless, road widening is expected to affect about 1818 households using space within  Project Appraisal Document Page 12 Road Rehabilitation Project Country: Cambodia the right-of-way. More than 95% of the people affected can be accommodated by "shifting back" within the right-of-way. About 71 houses or small shops cannot be accommodated within the right-of-way and owners have no other land. The government has agreed to provide replacement land in these cases. Owners of houses and shops required to move back will be compensated, and each affected household will receive a transition allowance. Fruit trees, crops, and ponds will be compensated or replaced. Households shifting back within the right-of-way will obtain formal permission to continue use of unaffected areas for at least 10 years. Full details are provided in a separate Resettlement Action Plan. 6 Environmental assessment Environmental Category: B The environmental assessment (EA) was carried out as part of the preparation study of this project. As a Category B project, it does not require a full EA. During the EA work, local government and other concerned bodies were consulted. The final report of environmental analysis, prepared as a part of the study report, was submitted to the Bank on May 29, 1998 and found satisfactory. Formal clearance was given on June 16, 1998. Since most of the project components are rehabilitation works within the existing right-of -way and the projected increase in traffic volume is not environmentally significant, no significant impacts on physical enviromnent are envisaged during either the construction or operation phases. The project could have an impact on noise and air pollution during the construction phase (all provinces), and on historical bridges and trees along the alignment (Siem Reap Province). The environmental management action plan (EMAP) specifies appropriate mitigation measures, including adequate selection of engineering design, watering to prevent dust during the construction phase, appropriate maintenance of vehicles and machinery, and strict control of noisy construction works at environmentally sensitive sites. The EMAP also specifies the environmental management and monitoring, institutional arrangements, and training needed to implement the EMAP, and environmental cost estimates. The EA confirmed that no environmentally protected areas exist in the project area. The entire province of Siem Reap has been designated a culturally protected zone, and ten archeologically significant bridges lie along the section of NR6 to be rehabilitated. These bridges will be reinforced and restored, and the current road alignment maintained (see Section B.4). The Government established a Steering Committee on Cultural Property in March 1998 to deal with cultural property issues related to the project. The committee's responsibilities include establishing a protocol and an action plan for protection of concerned cultural property and adequate guidance to contractors. 7. Participatory approach Primary beneficiaries and other affected groups. As part of the effort to preserve the Praptos Bridge in Kampong Kdai, a Kampong Kdai Site Development Plan is proposed. The plan will incorporate participatory elements to ensure that local residents derive benefit from preservation of the bridge, and have incentives to contribute to its maintenance (see Annex 14). Other key stakeholders. The design of the restoration of the historical bridges has been discussed with international experts experienced in the preservation of the Angkor monuments and with the SCCP. During the course of project implementation, participatory workshops will be held for Project Launch, Implementation Planning and Review, development of the Transport Sector Policy, and other stakeholder workshops as needed to address key issues that arise.  Project Appraisal Document Page 13 Road Rehabilitation Project Country: Cambodia F. SUSTAINABILITY AND RISKS 1. Sustainability: Two factors are essential to ensure the successful performance of the project roads over their design life: the capability to plan and execute routine and periodic maintenance in a professional manner, and the availability of sufficient funds at the proper time. The project addresses the first factor directly through technical assistance and training in road maintenance operations and management, thereby strengthening ongoing efforts by the ADB and GOJ. It addresses the second factor indirectly through technical assistance in the highway management field, including planning, programming and budgeting. Further, through the development of a Transport Sector Policy, the project supports the identification of operational, regulatory, and financial reforms needed to establish a sustainable basis for the transport sector. 2. Critical Risks Three main risks have been identified: lack of counterpart funding; insufficient institutional implementing capacity, and civil unrest or armed conflict. The paucity of local funds poses a risk to project implementation, with current budget allocations a serious concern. With this and other development projects planned to begin implementation in the next two or three years for which local funds will be required, the Government may have difficulties meeting all its counterpart funding obligations. To mitigate this risk, the Bank has reduced the counterpart requirement to a minimum of 5% and obtained a supplemental contractual confirmation (Supplemental Letter) of the Borrower's standard obligation to provide counterpart funds to the project. Another risk to project implementation is insufficient institutional implementing capacity. The project addresses this risk by providing for international consultants to supervise the civil works and to provide advisory services to the PIJ. These services include training, assistance with all aspects of project implementation and management, and support to a participatory process to formulate a transport sector policy and the strategic plan to implement it. Finally, Cambodia's recent history and political forces still currently active give rise to a risk of instability that would jeopardize the implementation of the project. An assessment of this risk requires an analysis that is beyond the bounds of this report. Risk Risk Rating Risk Mitigation Measure Insufficient maintenance M Conservative structural design, training, equipment, TA Lack of response from international N Mine security component included, contractors appropriate packaging of civil works Lack of counterpart funds M Use highest acceptable IDA financing rate Flooding by the Tonle Sap N Adequate flood proofing Weak implementation capacity N PIU and TA for Construction Supervision and for overall project management. Overall Risk Rating M G. MAIN CREDIT CONDITIONS 1. Effectiveness conditions There will be no conditions for effectiveness other than the standard ones.  Project Appraisal Document Page 14 Road Rehabilitation Project Country: Cambodia 2. Agreements reached at Negotiations Category Borrower's Obligations Accounts/ audits Establish within the PIU a Financial Management Unit headed by a project accountant to maintain separate project accounts. Management aspects / Maintain a PIU within MPWT responsible for administering, managing and executing agency supervising the day-to-day implementation of the project. Environmental covenants Carry out the EMAP and discuss its implementation with the Bank. Involuntary resettlement Carry out the RAP and establish national guidelines on resettlement and compensation of persons affected adversely by development projects. Project implementation Withdrawal Conditions (Land Mines and Cultural Heritage): Take steps to ensure the soundness of mine clearance activities. Furnish certificates on the absence of serious mine threat on the Project site and on the technical soundness of the Mine Security Program activities. Furnish a legal opinion on any legal liability arising as a result of activities linked to this Program and related activities. Conduct excavation rescue works and issue a certificate on the likelihood of discovering artifacts during road works, and establish a protocol setting forth policies and procedures governing the treatment of any artifacts discovered during the works. Other Obligations: Maintain the APCC, to be responsible for the overall policy guidance on project implementation, including the coordination of bilateral and multilateral donor activities within the road sector. Carry out training activities in accordance with an IDA-approved program. In case of delays or disruptions in the implementation of road works, which are attributable to the discovery of artifacts, the Government is required to cover the cost of such delays or disruptions, other than those which are solely attributable to the contractor's own acts or omissions, or for which the contractor is solely liable. Maintain the SCCP, to be responsible for policy guidance on managing and conserving cultural heritage property in the project area. Sectoral policy Establish and maintain a Coordinating Committee to develop a medium-to- regulatory/ institutional long-term national transport sector strategy, to streamline institutional action arrangements and governmental responsibilities, and finalize a transport sector master plan by end of project. H. READINESS FOR IMPLEMENTATION [X] The engineering design documents for the first year's activities were completed by end of May 1998. [XI The procurement documents for the first year's activities are complete and general and specific procurement notices have been advertised. [X] The Project Implementation Plan has been appraised and found to be realistic and of satisfactory quality.  Project Appraisal Document Page 15 Road Rehabilitation Project Country: Cambodia I. COMPLIANCE WITH BANK POLICIES [X] This project complies with all applicable Bank policies. Task Team Leader anL.Lba Sector Manager: Jitendra N. Bajpai Country Director: , Ng~zi Okonjo-Iweala  Project Appraisal Document Page 16 Road Rehabilitation Project Country: Cambodia Annex 1: Project Design Summary Hierarchy of Objectives Key Performance Indicators Monitoring and Evaluation Critical Assumptions Sector-related GAS Goal Sector Indicators Sector/Country Reports (from Goal to Bank Mission) Sustainable economic growth GDP increase Appropriate country macro- Continuity and consistency and social development economics monitoring of RGC's macro-economic policies Project Development Outcome/Impact Indicators (from Project Development Objectives Project Reports Objective to Sector-related CAS Goal) Improve access to rural areas; Vehicle operating cost Economic analysis study Promotion of favorable Build the framework for future reduced by 30% by EOP (MPWT) macro-economic sector reform Traffic increased by 60% by Traffic and origin-destination conditions EOP study (MPWT) Political stability Transport Sector Master Plan Workshops, Bank endorsed by key RGC supervisions (MPWT) decision makers by EOP Qualitative assessment of business development (MEF) Outputfrom Each Component Output Indicators Project Reports (from Outputs to Project Development Objective) Civil Works Civil Works Project monitoring through Security along roads and Restored key access and urban 111 km of key national and 4 quarterly reporting schedule, within the country roads km of urban roads with consolidated annual RGC receptiveness to rehabilitated reports on achievements; discuss sector strategy Capacity Building Periodic technical and Increased capacity of MPWT Capacity Building financial audits RGC support for tourism to implement and supervise Number of qualified staff to development project imnplement and supervise ro,ad Bank supervision of progress works ~~~~~of policy exercise Improved quality of road maintenance operation Quality and durability of works Transport Sector Policy and Evidence of stakeholders' Master Plan constituting an involvement in a participatory appropriate basis for future prolvementain a actionable operations process leading to actionable Project Components/ Project Inputs Project Reports (from Project Components Subcomponents to Project Ouputs) Road Rehabilitation $34 rnillion Progress reports and Timely and adequate . . ~~~~~~~~~~~~disbursement reports provision of counterpart Supply of Maintenance $2 million fdids Equipment $6.2 million Semi-annual supervision Technical .A$6.2tancumission and annual audit MPWTs commitment to Technical Assistance $0.7 million reports finalize appropriate Operating Costs transport sector policy statement and develop a strategic plan for its implementation  Project Appraisal Report Page 17 Road Rehabilitation Project Country: Cambodia Annex 2: Project Description Component 1 - US$33.93 million 1. Two civil works contracts will be awarded under ICB, one for works on NR6 and one for works on NR3 with a possibility of combination in one single contract (see Annex 6). Although the RGC certified the work sites have been cleared of landmines, to ensure safety, each contract will include a special subcontract to confirm the absence of landmines and UXO, particularly in areas to be excavated and where standard mine-clearing depth may not be sufficient. One international consulting firm will be engaged for construction supervision of both civil works contracts. National Road 6 2. The project will rehabilitate 81.9 km of NR 6 from the junction of the Siem Reap airport access road to the Kampong Thom provincial border, the Siem Reap airport access road (2.2 kim), and the Angkor Wat access road (5.2 km), for a total of 89.3 km. Thirty bridges require complete replacement, 10 bridges will be incorporated in their present condition, and nine historical bridges will be restored. The historic Kampong Kdai bridge (Spean Praptos) will be restored after reinforcement and protection, and its surroundings developed according to the recommendations of a special participatory study to be carried out as part of the detailed design study for the restoration and reinforcement works on the bridges. 3. The horizontal geometry of NR6 will not change. Changes in the vertical alignment are proposed only in those areas where the road has been, or is likely to be, inundated by floodwaters. New culverts and improved side drainage are also proposed in areas of poor drainage. The standard road design cross- section is 7-m DBST carriageway and 2-m paved shoulders on each side. 4. The project will rehabilitate 21.5 km of NR3 from its junction with NR4 at Veal Rinh to the Kampot provincial border at Ban Trapeang Ropou, including fifteen bridges. Five bridges are of reinforced concrete and will be incorporated in their present condition. The other ten bridges have wooden decks and these will be replaced with steel ones. The 185-meter Bailey bridge which crosses the Prek Kampong Smach is the longest bridge in the project. 5. The horizontal road alignment will not be changed, but the road will be raised along approximately 60 percent of its length to alleviate flooding. Blocked or broken culverts will be cleared or replaced, and new culverts will be added to improve drainage. The standard cross-section is 1 1-m wide as for NR6. Urban Roads in Phnom Penh and Sihanoukville 6. These works will be organized and implemented under the direction of a consultant to be hired for maintenance management and training. About half the value of the work will be implemented using force account procedures and about half under subcontract to local contractors capable of doing periodic maintenance type works. 7. Rehabilitation works in Phnom Penh consist of periodic maintenance of an asphalt concrete (AC) overlay on 3.3 km of a main arterial route. In Sihanoukville, rehabilitation work will be carried out over 1.1 km. This work will involve pavement strengthening with an AC overlay. Component 2 - US$2.18 million 8. Road maintenance equipment and training aids and equipment will be procured through ICB under the guidance of the maintenance management and training consultant. This equipment is needed to implement the maintenance works in the urban areas, as well as to maintain NR6 and NR3 after their rehabilitation under the project.  Project Appraisal Report Page 18 Road Rehabilitation Project Country: Cambodia Component 3 - US$6.17 million Technical Assistance to MPWTfor Institutional and Capacity Building. 9. The project provides for technical assistance in the form of advisory services to the PIU, and training, including: a) Assistance with all aspects of project implementation and management, and on-the-job and classroom project management training; b) Support to a participatory process including MPWT and other stakeholders to formulate a transport sector policy and the strategic plan to implement it, and the preparation of a Transport Sector Master Plan; c) Liaison with the Bank and other donors; d) Maintenance management training to improve the performance of target PWDs and the RCC in planning, organizing, and supervising road maintenance work; and improving procedures for contracting out maintenance and supervising contracts; e) Identifying additional needs for TA, studies, and training that might be provided by visiting specialists of the consultant or other funding sources. 10. Additional training opportunities will be offered. Two MPWT staff members' attendance at the World Bank's annual Transport Forum in Washington will be funded, as will two MPWT staff members' attendance at an annual one-month SIDA-sponsored course on the organization and management of road maintenance for each of the five years of the project. 1 1. Workshops. In addition to project launch and annual implementation review workshops, workshops will be held to discuss transport policy among various stakeholders. These workshops will provide an opportunity to identify and involve in the policy dialogue constituencies such as road users, local consultants and contractors, banks and other providers of credit. (See Annex 1 1 for terms of reference.) Technical Assistance for Construction Supervision 12. International consultant services to the PIU for supervision of construction for the civil works on NR 6 and NR 3 will be provided under Quality Cost Based Selection. The international consultant will provide a team of internationally experienced engineers and local qualified professionals to perform the services. This team will be assisted by suitably qualified and experienced engineers seconded from the MPWT to the consultant for the duration of the project. The international consultant will provide on-the- job training to the local engineers so that as the international team's role gradually diminishes over the course of the project, the local engineers will become qualified to take over those responsibilities.  Project Appraisal Report Page 19 Road Rehabilitation Project Country: Cambodia Annex 3: Estimated Project Costs 1. Road Rehabilitation l.(a) NR6 3.64 20.63 24.28 / 51.0% l.(b) NR 3 0.85 4.80 5.65 11.9% 1.(c) Urban Roads 0.19 1.06 1.25 2.6% Landmine and UXO Security 0.15 0.35 0.50 1.1% Resettlement costs 0.40 0.00 0.40 0.8% Cultural Heritage Protection 0.24 1.36 1.60 3.4% Road Safety/Community Improvements 0.04 0.21 0.25 0.5% Subtotal: 5.50 28.42 33.93 71.3% 2. Equipment 0.59 1.59 2.18 4.6% Subtotal: 0.59 1.59 2.18 4.6% 3. Technical Assistance 3.1.(a) Inst.& Cap. Build. 0.30 1.70 2.00 4.2% 3.1.(b) Training, Studies, Workshops. 0.00 1.07 1.07 2.2% 3.2. Const. Spn Consultants 0.47 2.64 3.10 6.5% Subtotal: 0.77 5.41 6.17 13% 4. Operating Costs 4.1 Financial & Acct Consultant 0.05 0.08 0.13 0.3% 4.2 PIU Operating Costs 0.30 0.30 0.60 1.3% Subtotal: 0.35 0.38 0.73 1.5% Total Base 7.21 35.79 43.00 90.3% Cost: Physical Contingencies (7%) 0.36 1.99 2.35 4.9% Price Contingencies (5%) 0.36 1.89 2.25 4.7% LOTAL PROJECTOST 7. 396 . 100,0% 1) Includes an estimated base cost of $4.73 million for the 17.5km section to be financed by a Japan Invest. Grant.  Project Appraisal Report Page 20 Road Rehabilitation Project Country: Cambodia Annex 4: Cost Benefit Analysis Summary (US$1000, base year: 2000) Present Value of Flows Fiscal Impact Economic Financial Analysis Analysis Taxes Subsidies Benefits Costs Net Benefits (1): 52,252 n.a. n.a. n.a. IRR: 31.9% n.a. n.a. n.a. (1) Discounted at 12%. 1. Three successive filters were applied to determine the optimum combination of national/provincial roads to be rehabilitated/reconstructed in the proposed project. Road selection was based on economic importance. 2. First, a review of existing consultants' studies, including a National Transportation Study carried out in 1994 (NTS), identified national and provincial roads in three provinces. Collectively these roads serve about 30 percent of the total population and 25 percent of total rice production, and include the three main urban areas (Pnomh Penh, Sihanoukville and Siem Reap), as well as the two main ports and the country's major tourist center (Angkor Wat). Major sections of some of these roads are virtually impassable. 3. The selected roads were then ranked according to their relative functional importance within the road network; practicality of implementation, i.e. the need to choose contiguous sections of road; and the ERR of each road section. The final selection was made from among the highest priority roads. The five urban roads included in the project (total length of 4.4 km) were selected on the basis of their suitability to serve as training grounds for local staff in modem techniques of road rehabilitation and maintenance as well as their high economic rates of return. Project design was based on the existing budget constraint, technical practicality, and the need to minimize project risks. 4. Finally, each major road was subdivided into segments on the basis of traffic volume to test the economic viability of each (Map IBRD No. 29747). Section Description Length (km) NR6-1 Airport Access to Siem Reap 6.2 NR6-2 Siem Reap to Psar Lieu 1.6 NR6-3 Psar Lieu to Roluos Temple Access Road 10.7 NR6-4 Roluos Temple Access Road to Damdek 18.3 NR6-5 Damdek to Kampong Thom Provincial 45.1 Border NR3-1 Veal Rinh to the border of Kampot Province 21.5 SR- 1 Siem Reap Airport Access Road 2.2 SR-2 Main Access Road to Angkor Wat 5.2 5. Details of the economic analysis are provided in the "Feasibility Study for Selected Priority National/Provincial Roads in the Kingdom of Cambodia" (two volumes, January 1998) and the Supplementary Traffic and Economics Study (February 1998) by Japan Overseas Consultants, in association with Oriental Consultants. These studies are in the project files.  Project Appraisal Report Page 21 Road Rehabilitation Project Country: Cambodia Benefits 6. National Road No. 6 (NR6) is one of the main arterial roads from Phnom Penh to the national border, and SRI and SR2 are important NR6 access roads. When rehabilitated, NR6 will reopen the road connection between Phnom Penh to Siem Reap and the Historic Site of Angkor, which has been cut for the past 20 years. The road will also reopen a large agricultural area north of Tonle Sap where production has been severely constrained because of insurgency and severe road deterioration. The road rehabilitation will result in lower transportation costs as a result of reduced road roughness for agricultural produce, for freight between Phnom Penh and Siem Reap province, and for tourists visiting the Historic Site of Angkor. It will also facilitate the delivery of social services. 7. National Road No. 3 (NR3) connects NR4 (recently rehabilitated by USAID) to the border between Sihanoukville City and Kampot Province, and complements the emergency rehabilitation of NR3 carried out by ADB. The restoration of NR3 will allow direct transport between the country's most important seaport at Sihanoukville and the southern provinces, eliminating the longer and more circuitous route now used. In addition, the rehabilitated NR 3 will open a much-needed alternative to the NR 4 for freight from the port of Phnom Penh. 8. Vehicle operating cost savings, time savings for passengers and freight, and benefits from traffic generated have been considered to calculate benefits. Costs 9. Project costs were evaluated based on capital costs of rehabilitation, maintenance costs, vehicle operating costs, and time costs of passengers and freight. 10. Capital costs were estimated for five major components (earth works, pavement, bridges, culverts and drainage) and were based on engineering surveys. Fifteen percent was added to this capital cost estimate to allow for minor works and contractors' general obligations. Maintenance costs include both routine and periodic maintenance for the rehabilitated road, and routine maintenance only for the "without" case. 11. The economic costs for capital and maintenance were estimated at 85 percent of the financial costs, based on the findings of the TRS. Financial unit cost estimates-vehicle operating costs (VOC) and time costs-are based on surveys carried out by the TRS and updated in 1997 by the MPWT Planning Department and the consultants. Costs were estimated for fifteen types of vehicles, including three types of motorcycles, which constitute the bulk of the traffic. The economic costs were calculated by deducting taxes and duties from the financial costs. For each of ten kinds of four-wheel vehicle types, the unit VOC were then used in multiple runs of the HDM III VOC sub-model (VOC4) to derive operating costs per thousand kilometers for different types of road roughness. 12. Motorcycle operating costs were estimated using relationships between automobiles and motorcycles developed in the TRS and on special surveys carried out during the preparation of this project. Little is known about the relationship between motorcycle operating costs and road roughness-the HDM model treats motorcycles as an exogenous factor. Anecdotal evidence suggests, however, that motorcycle operating costs are less sensitive to road roughness than are those for four-wheel vehicles. Simple proportional scaling-down from VOC relationships to derive motorcycle operating costs might therefore introduce an upward bias in the cost estimates. Given the predominance of motorcycles in the traffic streams, this could lead to overestimating benefits for the rehabilitated road. This has been accounted for in the sensitivity analysis by using a formula derived from research carried out in Indonesia.  Project Appraisal Report Page 22 Road Rehabilitation Project Country: Cambodia Main Assumptions 13. The economic analysis is based on "without" and "with" analyses. In the "without" case, the maximum road roughness assumed for the purpose of the evaluation has been limited to IRI 14. Actual road roughness is IRI 16-19, and some bridges are virtually impassable. However, the lower roughness has been chosen in the "without" case, based on a realistic assumption of some maintenance activity on the road in the near future, even without the project. In the case of the urban roads, the maximum road roughness has been limited to lRI 10 in the "without" case, although some roads are in worse condition. 14. Traffic forecasts were unusually difficult to establish. Reliable traffic statistics were not gathered during a 20-year period of armed conflict, the socio-economic data for the areas served by the roads are lacking, and predicting social and political stability over the life of the road is difficult. 15. To address these problems, traffic counts carried out in 1994 were supplemented with traffic counts carried out in 1997. Both counts confirmed very low traffic volumes. These low volumes can be attributed to very low economic activity resulting from frequent hostilities, and to the absence of passable roads. Thus, actual traffic levels were thought to under-represent potential initial traffic volumes. 16. The TRS assessed traffic potential by means of origin-destination surveys (O-D) and economic development forecasts. These forecasts were supplemented by interviews with potential users about their possible use of rehabilitated roads. O-D matrices were then prepared for passengers and six categories of commodities, using the Provinces as zones. Passengers and freight were converted to vehicles and vehicle types, based on the observed traffic mix and assumptions about future traffic mix and load factors. Forecasts were made for the benchmark years 1997; 2000; 2005; 2010, and 2015. Traffic forecasts for the urban roads were based mainly on traffic counts carried out in 1997 and earlier and then projected in five-year intervals. 17. The resulting forecasts are based on the consultants' assessment of traffic growth It assumes all obstacles to normal growth were removed and a stable environment prevailed for the remainder of the life of the road, allowing farmers and merchants to resume trading, and tourists to resume using the roads to access Angkor monuments. Whether the assumptions are reasonable remains to be seen. 18. Given the paucity of data, and uncertainties concerning the stability of the political and social environment, a phased construction approach was first considered. This approach calls for a somewhat narrower road than the 1 1-m standard for national roads, which responds to the need for roads of adequate quality and capacity, while taking into account the uncertainties as to future demand. This staged approach was finally rejected after in-depth examination of its implication on both road safety and consistency of cross section along an arterial road. Cost/ Benefit Analysis (12 %Discount Rate) Road No. Location NPV (US$1000) ERR (%) Siem Reap SR 1 Airport Access Road 330 16.6 SR 2 Access Road Angkor Wat 5,088 35.3 NR6-1 Airport Rd. to Siem Reap 3,994 30.8 NR6-2 Siem Reap to Psar Lieu 2,952 41.9 NR6-3 Psar Lieu to Roluos Rd. 2,615 24.2 NR64 Roluos Rd. to Damdek 7,938 30.6 NR6-5 Damdek to Kampong Tom Prov. Border 17,496 31.4 Sibanoukville NR3-1 Veal Rinh to Kampot Prov. Border 11,839 36.3 Total 52,252 31.9* *Weighted average  Project Appraisal Report Page 23 Road Rehabilitation Project Country: Cambodia 19. For the urban roads, the results of the economic evaluation for each of the roads included in the analysis and for the roads combined, are as follows. Location NPV ERR % (1,000 US$) Pnomh Penh Oknha Tep Phan (1.8 Iam) 2,570 37.8 Blvd. Samdach Monireth (1.5 Iam) 10,046 101.6 Sihanoukville a 760 61.5 7 Makara St., Ekareach 108 St. (0.6 km) 1,818 93.3 B. Kamakor St., 109 St. to Ekareach St. (0.1 Iam) 194 115.8 Total 15,388 71.1* *Weighted average Sensitivity analysis/Switching values of critical items: 20. A sensitivity analysis was carried out for all road sections included in the project. The high rates of return on each road segment (except for the airport access road) show the robustness of the project's economic returns. For example, capital costs could increase by a factor of four and the project would still yield a weighted ERR of 16 percent. A reduction in traffic volumes by 50 percent would still yield a weighted average of ERR of 19 percent (except for the airport access road). Combining unfavorable changes in the parameters (a 40 percent increase in capital costs, decreases of 30 percent in traffic volumes, 20 percent in vehicle operating costs, and 30 percent in motorcycle operating costs, and zero time savings for passengers and cargo) still yields ERRs for each section (except the airport access road) of more than 12 percent. Sensitivity tests were also carried out for the urban roads in a similar fashion. In view of the high base values of ERR and NPV, all urban roads included in the project came out well above the critical value of 12 percent. 21. Since all elements of the economic analysis are unlikely to change in the same unfavorable direction, it can be concluded from a technical point of view that the proposed project should be carried out. It is worth noting, however, that the imponderable remaining risk is the country's uncertain future political stability. A return to hostilities would affect the project negatively, in particular the NR6 and its access roads. Nevertheless, if this risk was not accepted, and the roads were left in their deteriorated state, the resulting loss would be even greater.  Project Appraisal Report Page 24 Road Rehabilitation Project Country: Cambodia Annex 5: Financial Summary Years Ending June 30 (US$ million, current price) Implementation Period Operational Period FY00 FY01 FY02 FY03 FY04 Project Costs Investment Costs 6.90 10.53 21.55 2.77 0.00 n.a. Recurrent Costs 0.50 2.93 0.96 0.96 0.50 n.a. Total 7.40 13.46 22.51 3.73 0.50 n.a. Financing Sources (without Japan parallel financing) IDA 7.00 12.90 21.30 3.61 0.50 Government 0.40 0.56 1.21 0.12 0.00 Financing Sources (with Japan parallel financing) IDA 7.00 12.90 17.52 2.35 0.50 n.a. GOJ 0.00 0.00 3.98 1.33 0.00 n.a. Government 0.40 0.56 1.01 0.05 0.00 n.a. Total 7.40 13.46 22.51 3.73 0.50 n.a.  Project Appraisal Report Page 25 Road Rehabilitation Project Country: Cambodia Annex 6: Procurement and Disbursement Arrangements Procurement Procurement of works and goods will follow the Bank Guidelines dated January 1995, revised in January and August 1996, September 1997, and January 1999. Standard Bidding Documents (including pre- qualification and bid evaluation documents) will be used for all IDA-financed procurement. Procurement of consulting services will be based on the Bank Guidelines dated January 1997, revised in September 1997 and January 1999 and the Standard Request for Proposals dated April 1998, including the Standard Forms of Contract. A Procurement Plan, including each step of the procurement process, is included in the PIP, and will be updated regularly. Procurement methods (Table A) Civil Works. ICB will be used for the procurement of NR6 and NR3 rehabilitation works over a $500,000 contract threshold. This represents about 95 percent of total cost of civil works ($33.62 million). Civil works on the urban roads in Phnom Penh and Sihanoukville will use NCB, subject to a $100,000 contract threshold (totaling $840,000), and force account, with the prior agreement of the Association (totaling $560,000). Goods. Equipment for road maintenance will be procured under ICB, with a contract threshold of $200,000 (totaling $1.80 million). Laboratory, survey, and office equipment contracts with a threshold of $50,000 will be procured separately following shopping procedures on the basis of price quotations solicited from at least three suppliers from two countries eligible under the Bank procurement guidelines (totaling $480,000). Domestic manufacturers with local content at more than 30 percent of ex-factory price which compete under ICB would be eligible for a 15-percent preference margin, or prevailing custom duties, whichever is lower. Consultant services The quality and cost-based selection method will be used for consultant services. These services include the two main contracts for Works Supervision ($3.26 million) and Technical Assistance ($2.1 million), and smaller contracts for organizing workshops, carrying out specific studies, and technical assistance for financial and accounting management. Pre-qualification and packaging Civil works contractors competing under ICB will be pre-qualified. Invitations for pre-qualification will be issued in accordance with Bank guidelines. To pre-qualify, contractors must employ a subcontractor adequately certified to carry on all mine security-related activities in a manner consistent with UN international and Cambodia national standards. Qualification criteria for the subcontractor will be reviewed by a recognized international expert who will also assist the PIU to evaluate this subcontracted part of the main bids for works. Pre-qualified contractors will be allowed to bid for Lot 1 (NR6) or Lot 2 (NR3), or the combination of both, but will be eligible for awards only up to the value of works for which they are pre-qualified. Lot 1 is divided into Options A and B (see map in Annex 15). Option B represents the works on the 17.5- km section to be funded by GOJ. It will be exercised only if Japanese parallel financing does not materialize. At bid opening, bids received for Lot 1 will be evaluated on the basis of Option A only. If the successful bidder of Option A submits the lowest responsive bid for Option B, the bidder will be awarded the contract for Option B once the conditions for the implementation of Option B are met. If this is not the case, different procurement options will then be explored.  Project Appraisal Report Page 26 Road Rehabilitation Project Country: Cambodia Prior review thresholds (Table B) Because the MPWT is not familiar with Bank guidelines for procurement, all procurement will be subject to prior review by IDA. Exceptions to the prior-review rule include civil works and goods contracts below $500,000, consulting firm contracts below $100,000, and individual consultant contracts below $50,000. With respect to contracts for goods above $50,000 procured under shopping procedures, the PIU will submit to IDA for review and no objection (i) a report on the comparison and evaluation of the quotations received prior to the selection of any supplier, and (ii) a copy of the specifications and the draft contract prior to the execution of any contract. Administrative and operational expenditures financed by the project will be subject to agreement of annual budgets submitted for approval of IDA. Disbursement The disbursement of the proceeds of the credit would be made against expenditure categories as shown in Table C. Statement of Expenditures (SOEs): For civil works and goods contracts under $500,000, consulting firms contracts below $100,000, individual consultants contracts below $50,000, and for all administrative, operational and training expenditures, withdrawal applications will be supported by Statements of Expenditure (SOEs). For civil works and goods contracts over $500,000 equivalent, consulting firms contracts over $100,000 equivalent, and individual consultants contracts over $50,000 equivalent, withdrawal applications must be supported by full documentation and signed contracts. Special Accounts To facilitate credit disbursement, the PIU will open and maintain a separate Special Account with the National Bank of Cambodia specifically authorized for this purpose by the Borrower, on terms and conditions satisfactory to IDA. The Special Account, which would cover IDA's share of eligible expenditures in all disbursement categories, would have an authorized allocation of up to $4.0 million, with an initial $500,000 withdrawal from the Credit account. Applications to replenish the Special Account, supported by appropriate documentation, would be submitted regularly (preferably monthly, but not less than quarterly) or when the amounts withdrawn equal 50 percent of the initial deposit. The Special Account shall be audited annually by independent auditors acceptable to IDA. Accounting, Financial Reporting and Auditing Arrangements Project expenditures will be separately recorded and reported by the PIU based on separate project accounts to be maintained by the PIU. As the Government departments in Cambodia do not maintain general ledger accounts at line ministry level, MPWT PIU shall establish a Financial Management Unit (FMU) before credit effectiveness, headed by a Project Accountant acceptable to IDA to maintain separate project accounts. IDA has provided Terms of Reference for the Project Accountant and assisted in short-listing suitable candidates. PIU has identified a suitable candidate for appointment as Project Accountant. The PIU Project Accountant shall be assisted by sufficient number of accounting staff to conform with segregation of duties consistent with acceptable internal control procedures. The FMU shall develop an accounting manual and install an appropriate accounting system acceptable to IDA. The accounting system shall apply: (a) consistent principles of accounting acceptable to IDA in documenting, recording, and reporting its financial transactions; (b) accrual method of accounting; (c) double-entry accounting system; (d) charting of accounts and a coding system that allow meaningful financial reporting to IDA and the Government; and (e) quarterly and annual financial reporting in statements acceptable to IDA. FMU shall select appropriate accounting software for operating the system.  Project Appraisal Report Page 27 Road Rehabilitation Project County: Cambodia So that financial management of the project meets acceptable standards, PIU/FMU will engage an internationally recognized audit firm to provide on-site financial and accounting advice. The selected firm shall supervise the accounting and financial report preparation monthly, examine documentation supporting withdrawal applications, and correct any deficiencies noted during their work. The PIU shall prepare annual project financial statements in a format acceptable to IDA and have the statements audited by an independent auditor acceptable to IDA. Such audit shall cover the project accounts, operation of the Special Account, and withdrawals under SOE procedures. The independent auditors are required to render separate opinions on the financial statements and the Special Account, and on the SOE operations. Annex 6, Table A: Project Costs by Procurement Arrangements (in US$ million equivalent) Expenditure Procurement Method Total Cost Category (including contingencies) ICB NCB Other N.B.F* 1. Works 30.96 0.84 0.56 5.71 38.06 (29.41) (0.80) (0.53) (30.74) 2. Goods 1.61 0.44 2.05 (1.61) (0.44) (2.05) 3. Services 7.48 7.48 (7.48) (7.48) Total 32.57 0.84 8.48 5.7 47.60 (31.02) (0.80) (8.45) (40.27) Notes: N.B.F. = Not Bank-financed (includes elements procured under parallel cofinancing procedures, consultancies under trust funds, any reserved procurement, and any other miscellaneous items.) Figures in parenthesis are the amounts financed by the IDA credit I Compensations for involuntary resettlement, estimated at $0.4million, and Option B Lot 1, estimated at $5.31 million, to be financed under the Japanese grant or IDA if the former fails to materialize.  Project Appraisal Report Page 28 Road Rehabilitation Project County: Cambodia Annex 6, Table B: Thresholds for Procurement Methods and Prior Review Expenditure Category Contract Value Procurement Estimated Value of (Threshold) Method Contracts Subject to (US$ thousands) Prior Review (US$ million) 1. Works NR3 & NR6 500 ICB 28.312 Urban roads 200 NCB 0.84 Urban roads Other (Force Acct) 0.56 2. Goods Equip. for Maint. 200 ICB 1.80 Labor. Equip. 50 Int. Shopping 0.25 Survey Equip. 50 Int. Shopping 0.13 Office Supply 50 lnt. Shopping 0.11 3. Services Constr. Spn QCBS 3.26 TA to MPWT QCBS 2.1 Workshops, Studies QCBS 1.12 On-site TA for Acct QCBS 0.06 & Fin. Total value of contracts subject to prior review: 38.54 Annex 6, Table C: Allocation of Credit Proceeds Expenditure Category SDR million US$ million Financing Percentage 1. Civil Works 22.7 31.85J 95% 2. Goods 1.56 2.18 100%4 3. Consultant Services 4.40 6.17 100% 4. Operating Expenses .52 0.73 100% 5. Unallocated 2.87 4.03 6. PPF refinancing .25 0.35 Total 32.30 45.31 2 May become $33.62 million if the Japanese grant fails to materialize. 3 Includes $4.49 million for the financing of the 17.5km section of NR6 from Siem Reap to Roluos 4 100% of foreign expenditures, 100% of local expenditures (ex-factory cost) and 80% of local expenditures for other items procured locally.  Project Appraisal Report Page 29 Road Rehabilitation Project Country: Cambodia Annex 7: Project Processing Budget and Schedule Planned Actual A. Project Budget (US$000) US$300,000 US$268,600 B. Project Schedule Planned Actual Time taken to prepare the project (months) 26 22 First Bank mission (identification) 03/03/1997 03/03/1997 Appraisal mission departure 03/02/1998 05/22/1998 Negotiations 06/30/1998 01/19/1999 Planned Date of Effectiveness 02/05/1999 07/01/1999 Prepared by: MPWT in Phnom Penh, Cambodia Preparation assistance: TF033912 (US$791,947) - Bank-exec. (Japan CTF) TF025566 (US$60,000) - Bank-exec. (Japan PHRD split exec.) TF025505 (US$590,000) - Country-exec. (Japan PHRD split exec) PPFQ130-0 KH (US$350,000) TF 037199 (US$247,000) - Bank-exec. (Japan CTF) Bank's project team: Name Specialty Alain Labeau Task Team Leader, EASTR Dieter Havlicek Transport Economist (Consultant) Mostafa El-Erian, Raj Soopramanien Legal Counsel, LEGEA Daniel R. Gibson Social Specialist, EASES Yoko Eguchi Cultural Heritage Specialist, SPR Takashi Matsumura Environmental Specialist, EASES Gaye Lindsey Disbursement Officer, LOAAS Omowunmi Ladipo Financial Management Analyst, LOAAS Jacques Bure Demining Specialist, ECSEG Ramanathan Natarajan WB Liaison Officer, EACKF Lauren Cooper Institutional Building Specialist (Consultant) Wijaya Wickrema Financial Management Specialist, EAPCO Xavier DeVictor Demining Specialist (Consultant) Chander Ohri Procurement Specialist (Consultant) Eva Monteblanco Team Assistant, EASTR Boonsri Kim Team Assistant, EASTR Teresita Ortega Program Analyst, EASTR Susana Womack TF Coordinator, EAPCO Andrea Heggen Editor, Consultant Peer Reviewers Specialty Jacques Tollie Senior Highway Engineer, EASTR Pedro Taborga Senior Transport Economist, ECSIN  Project Appraisal Report Page 30 Road Rehabilitaton Project Counby: Cambodia Annex 8: Documents in the Project File A. Project Implementation 1. Feasibility Study for Selected Priority National/Provincial Roads - Options Report, Dec. 1997 (Vol.1 & 2); Final Report, Feb. 1998. (JOC) 2. Supplementary Traffic and Economic Studies, Feb. 1998. (JOC) 3. Simplified Engineering Design - Drawings and Final Report, June 1998. (JOC) 4. Structural Survey of the Historical Bridges, June 1998 (JOC) 5. Archeological Survey of the Historical Bridges, June 1998, Bruno Bruguier, (EFEO) 6. Resettlement Action Plan, July 1998 (JOC) 7. Analysis of Cambodia's Road Legislation and Related Regulatory Framework, Denora Sarin, May 1998. 8. Environmental Mitigation Plan, June 1998, (JOC) 9. Draft TOR for TA to MPWT in Institutional and Capacity Building (full version) 10. Draft Bidding Documents for the Rehabilitation Works on NR6 and NR3 11. Cambodia Progress in Recovery and Reform, Su-Yong Song, WB, June 1997 12. General Procurement Notice (issue 505 of Feb. 1999 of Development Business) 13. Specific Procurement Notices for TA to MPWT and Construction Supervision. 14. Draft TOR for Construction Supervision of Works on NR6 and NR3 and Proposed Organization Chart 15. Road Sector Support to Cambodia, Proceedings of the May 1997 Donor Conference in Phnom Penh. 16. Notice and Draft Application Document for the Prequalification of Contractors for Works on NR6 and NR3 17. Draft TOR for the Mine Security Sub-Contract (full version) 18. Note on Mine Contamination and Clearance in Cambodia (full assessment report) 19. Draft TOR for the Detailed Design of Restoration of Ancient Bridges along NR6 (full version) 20. Detailed Overall Project Implementation Schedule 21. Report on the Structural Strengthening of the Kampong Kdai Bridge in 1964-67, Pr.Dr. Dumarcay (EFEO) 22. Major Related Projects Financed by Other Development Agencies in Cambodia 23. Comparison of MPWT Proposed and Received Budgets over 1994-98 24. Appointment Letter of Project Implementation Unit, February 1998. 25. Decree Establishing the Steering Committee on Cultural Property, March 98. 26. A Poverty Profile of Cambodia, N.Preschott, M. Pradhan, WB, Oct. 1997. 27. Cambodia Public Expenditure Review, WB, Jan. 1998 B. Other 1. Angkor-Past, Present and Future, March 1996, APSARA, RGC, UNESCO 2. Cambodia Transport Rehabilitation Study, Final Report, SweRoad, March 1995 3. Developing a Planning Capability at MPWT, Final Report, SweRoad, February 1999 4. Bridge Sub-structure Evaluation Program, ADAF, NZ, Dec. 1998 5. Angkor Forest Rehabilitation & Landscape Enhancement, ADAF, NZ, Dec. 1998 6. National Training School for Road Construction and Maintenance, NZIHT, Aug. 1997 7. Siem Reap Province Development Master Plan, EU 8. Development Cooperation Report, CDC, May 1997 9. Angkor Dix Siecles de Fascination, Journey Through Khmer Civilization, CD Rom 10. UN Guidelines for International Demining Standards, (http://un.org./Dept/Landmines) 11. War of the Mines, Davies, Dunlop, May 1994  Project Appraisal Report Page 31 Road Rehabilitation Project J Country: Cambodia Annex 9: Status of Bank Group Operations in Cambodia IBRD Loans and IDA Credits in the Operations Portfolio As of 08-Feb-99 Difference Between expected Original Amount in US$ Millions and actual Fiscal disbursements a/ Project ID Year Borrower Purpose IBRD IDA Cancellations Undisbursed Orig Frm Rev'd Number of Closed Projects: 2 Active Projects KH-PE-45629 1998 CAMBODIA URBAN WATER SUPPLY 0.00 30.96 0.00 30.96 .78 0.00 KH-PE-4033 1997 GOVT OF CAMBODIA AGRI.PRODUCT IMP. 0.00 27.00 0.00 26.00 10.98 .02 KH-PE-4034 1997 KINGDOM OF CAMBODIA DISEASE CONTROL&HEAL 0.00 30.40 0.00 26.24 10.36 0.00 KH-PE-4032 1996 KINGDOM OF CAMBODIA PHNOM PEHN POWER REH 0.00 40.00 0.00 13.32 12.71 0.00 KH-PE-34755 1995 GOVT. OF CAMBODIA TECHNICAL ASSISTANCE 0.00 17.00 0.00 4.40 3.07 0.00 KH-PE-37088 1995 KINGDOM OF CAMBODIA SOCIAL FUND 0.00 20.00 0.00 .40 1.85 0.00 Total 0.00 165.36 0.00 101.32 39.75 .02 Active Projects Closed Projects Total Total Disbursed (IBRD and IDA): 56.29 101.77 158.06 of which has been repaid: 0.00 0.00 0.00 Total now held by IBRD and IDA: 165.36 102.70 268.06 Amount sold 0.00 0.00 0.00 Of which repaid : 0.00 0.00 0.00 Total Undisbursed : 101.32 0.00 101.32 a. Intended disbursements to date minus actual disbursements to date as projected at appraisal. Note: Disbursement data is updated at the end of the first week of the month and is currently as of 31-Jan-99.  Project Appraisal Report Page 32 Road Rehabilitation Project Country: Cambodia Annex 10: Cambodia at a Glance Cambodia at a glance 9/18198 POVIERTY ins3 SOAL5a ALo:: : Camboda Pacfic ioom Dovelopment diem ond' Pooulation. ndd-vear (miIliozs) 10~~~~5 I .753 2.048 Life expectancy GNP Milasanafhod. USS billkrna) 3.~~2 1.07 72 Pootdatio f) tt '0 4-..; 0:2. 1. 2,1, < Lab % *414 2 GNP Gross per ,,primary tsttnt ~~~~~~~~~~~~~~~~~~~~~~~capita enrotlment Ch Id malnutrition ( of children tlnder ~38 1 Access to safe water Access to safe water i'% of ~~~oj~u/ation)