|1. Project Data:
ICR Review Date Posted:
|Provincial And Rural Infrastructure Project
Project Costs(US $M)
Loan/Credit (US $M)
Cofinancing (US $M)
Board Approval Date
|Roads and highways (83%), Central government administration (9%), Sub-national government administration (8%)|
|Rural services and infrastructure (25% - P)
Conflict prevention and post-conflict reconstruction (25% - P)
Other accountability/anti-corruption (24% - P)
Injuries and non-communicable diseases (13% - S)
HIV/AIDS (13% - S)|
||ICR Review Coordinator:
|2. Project Objectives and Components:|
a. Objectives:According to the Project Appraisal Document (p. 2) the objective of the project was to assist the Kingdom of Cambodia to enhance the livelihood of the peoples residing in the provinces of Kampong Thom, Oddar Meanchey, Preah Vihear and Siem Reap by providing sustainable access to markets and essential services through (i) a program of road rehabilitation and maintenance; (ii) a program of capacity building and training; and (iii) development of improved public policies and strategies. The objectives in the Project Appraisal Document and the Development Credit Agreement are the same.
b. Were the project objectives/key associated outcome targets revised during implementation?
If yes, did the Board approve the revised objectives/key associated outcome targets?
c. Components:The project comprised five components.
- 1. Maintenance management (appraisal estimate (US$1.0 million, actual cost US$0.1 million). This component would support: (a) installation and operation of road maintenance management systems at the national level in the Ministry of Public Works and Transport and Ministry of Rural Development. At provincial level in Provincial Public Work Department for MPWT and Provincial Department Rural Development for MRD at the Kampong Thom province, Oddar Meanchey, PreahVihear and Siem Reap; and (b) annual programs of routine maintenance on all roads in good and fair condition in the provinces of Kampong Thom, Oddar Meanchey, Preah Vihear and Siem Reap. The routine maintenance would be funded from the Government's annual budget allocations.
- Rehabilitation and periodic maintenance of secondary-national, provincial and tertiary roads (appraisal estimate US$18.65 million, actual cost US$19.8 million). The component included a program of rehabilitation and periodic maintenance in the four provinces of Kampong Thom, Oddar Meanchey, Preah Vihear and Siem Reap. It covered: (a) approximately 300 km of strategic secondary-national and provincial roads under the Ministry of Public Works and Transport; and (b) approximately 300 km of tertiary roads under the Ministry of Rural Development. The works were to be contracted out and a program to develop qualified private contractors was to be run concurrently, increasing private sector involvement in the road sector.
- Capacity building program (appraisal estimate US$2.60 million, actual cost US$4.0 million). The project would support a program of institutional strengthening for the Ministry of Public Works and Transport and the Ministry of Rural Development.
- Policy and strategy development (appraisal estimate US$0.2 million, actual cost US$0.07 million). This component would support a program to improve the Ministry of Public Works and Transport and the Ministry of Rural Development policy and strategy development in the areas of: (a) integrated planning and budgeting of roads; (b) least cost life-cycle standards; (c) use of appropriate technology; (d) mainstreaming of road maintenance; and (e) institutional reform. This component would also support the on-going policy development in the transport sector, primarily supporting initiatives that are already underway.
- Community awareness programs (appraisal estimate US$0.55 million, actual cost US$0.08 million). This component would support community awareness program aimed at increased awareness of road safety; HIV/AIDS; people’s participation in road planning, and access to public information; mine and Unexploded Ordnance Risks; and mine clearance programs.
d. Comments on Project Cost, Financing, Borrower Contribution, and Dates
Project Cost: The actual project cost was US$24.4 million slightly higher than the appraisal estimate of US$23.3 million.
Financing: The actual credit amount was US$ 17.4 million. A total of US$2.29 million was cancelled.
Suspension: The project disbursements were suspended from June 5, 2006 to February 1, 2007, except for contracts associated with preparation of the financial audit and the construction of two essential bridges on a district road. The project was suspended for 8 months due to the miss-procurement of six civil works contracts. A good governance framework was developed for the project and an Action Plan was established. An International Procurement Adviser (IPA) - Crown Agents - was recruited. Responsibility for project procurement activities was taken away from the two implementing agencies and passed to the IPA. A Contract Supervision Consultant was recruited to inspect the quality of the civil works and to approve payments. This responsibility had previously been with the Ministry of Public Works and Transportation and the Ministry of Rural Development who had delegated this responsibility to their provincial offices. In addition a Technical Audit was included in the project activities.
Borrower Contribution: The Borrower actual contribution was US$6.9 million compared to the appraisal estimate of US$3.3 million.
Dates: The project closed on December 31, 2001, more than four years after the closing date of September 30, 2007 for the following reasons:
- The project closing date was extended from September 30, 2007 to September 30, 2009 to make up for time lost due to the suspension and slow start-up of the Independent Procurement Agent.
- The closing date was further extended from September 30, 2009 to December 31, 2010 due to late procurement process by IPA and to complete the second annual work program and capacity building activities funded under the Policy and Human Resource Development Grant (TF56974).
- The closing date was further extended from December 31, 2010 to December 31, 2011, to complete a final six civil works packages that would provide basic all-weather access and connectivity to higher order roads for a number of poor rural communities.
|3. Relevance of Objectives & Design:|
a. Relevance of Objectives:Relevance of Objectives: high.
The project objectives remained consistent with the most recent Country Assistance Strategy (April 18 2005) which among other things focussed on improving rural livelihoods. The project objectives were in line with the National Poverty Reduction Strategy (2003-2005).
The Government and donor support was being directed towards the most basic needs at the village level through community driven development projects, and one of the project had reconstructed tertiary roads in six provinces located in the southeastern part of the country. The project complemented these efforts as it focused on the road network’s “missing middle”, that is, the part of the network between the national network and village access roads/tracks. This part of the network was critical for the reintegration of severely war affected people and areas into the national economy, and for the creation of opportunities for employment in rural areas and sustained livelihoods.
b. Relevance of Design:Relevance of Design: modest.
The activities included in the project components were designed to contribute to the achievement of the project objectives through transport-related access (rather than the availability of services or ability to pay). The project component focussing on the rehabilitation and periodic maintenance of secondary, provincial and tertiary roads was critical for improving access. The project also supported the Ministry of Public Works and Transport and the Ministry of Rural Development in the areas of policy and strategy development. The project adopted an inclusive participatory planning approach that was new to Cambodia. This approach has been mainstreamed in the planning for roads.
The Project design had a number of shortcomings: the underestimation of costs; the failure to account for the severe capacity constraints in implementing agencies; the lack of an integrative framework for the policy and strategy development program; and the failure to recognize the imperfectly competitive market structure that led to collusion.
|4. Achievement of Objectives (Efficacy) :|
Assist the Borrower to enhance the livelihood of the peoples residing in the Project Provinces by providing sustainable access to markets and essential services: rated modest.
- The project assisted in the rehabilitation of 263.4 km of strategic secondary-national and provincial roads compared to the revised target of 250 km.
- About 84 km of rural roads and two bridges were rehabilitated compared to the revised target of 80 km.
- The project assisted in the maintenance of 738 km of secondary and provincial roads compared to the original target of 300 km (the target was not revised).
- The project also assisted in the maintenance of 602 km of tertiary roads compared to the original target of 300 km (the target was not revised).
Institutional Capacity Building
The project did not fully implement the policy and strategy development component. The use of appropriate technology and institutional reform was not carried out. Following outputs were partly achieved:
- A three-year rolling program for investment was developed, but at project closing was not fully operational.
- Training was extended to national and provincial public works departments, and also to private contractors who were capable of carrying out civil works but lacked skills related to business processes. About 450 staff from the Ministry of Public Works and Transport and 215 staff from the Ministry or Rural Development received training in project management, planning, road maintenance, road safety, etc. The ICR reports that the link between the training and the sustainability of improved road services has been seriously compromised by the Government’s decision to terminate programs designed to adequately remunerate and thereby retain high caliber staff (ICR p. 13). Furthermore, on the job knowledge transfer was also undercut after suspension when procurement and supervision authority was transferred from ministry staff to the IPA and Supervision Engineer.
- A Roads Maintenance Management System was established for the Ministry of Public Works and Transport. An inventory of all road assets was done and the Ministry staff were trained, but problems with data interpretation precludes the system's use to develop prioritized road maintenance plans.
- A Roads Maintenance Management System was installed in two provinces but the Ministry of Rural Development lacked funds to pay the servicing fees. It is in the process of developing its own system using Microsoft Access (Map Source and Arc GIS).
- A new Roads Law was approved.
- According to the Government, after project closing, many staff at MRD-PRIP have become specialists in procurement, M&E, Environment and Safeguard Issues and a teacher at University (Community Development).
The project increased access to all weather roads. Before the project only 708 out of 1932 villages (37%) in the project provinces were linked to secondary and provincial roads in good condition. After project completion, 1059 out of 1932 villages (55%) had all weather access to the secondary and provincial road networks. The ICR noted that these roads were selected in a participatory manner, i.e., the residents considered these roads most essential for access to markets and services, and for connecting to the national road network, and/or for linking provincial centers together (ICR p. 12). Most of the project roads remained in good condition, despite the extraordinary weather conditions of 2009 and 2011 (extensive rains and severe flooding).
The rehabilitation of roads resulted in reduction in travel time and costs of transportation (see table below).
Before the Project
After Road Rehabilitation
Before the Project
After Road Rehabilitation
|Angkor Chum to Varin - |
Svar Sar Commune (travel to town)
|Angkor Chum to Varin - Charchhouk Commune (travel to town)|
|Road PR 213 - Reakreay Commune (comunie to village)|
Less than half hour
|Road NR 71 (transport to NR 6)|
|Road PR 181 (travel to district)||The earth road was impassable even during the dry season.|
Four hour walk.
|The final section of the road to the Commune Center, which would serve about 10,000 people, is still not passable in the wet season.|
* Based on figures provided by the Government.
Access to markets, health centers and schools was improved:
- Angkor Chum to Varin road - Svar Sar Commune. Before the road was improved, rice growers had to bring rice to the market, at a cost of Riel 500/kg; now the rice broker comes to the village and pays Riel 1200/kg. Before the project, the patients had to be transported to the hospital. After the road was rehabilitated, ambulance service was possible. Before, villagers could only travel in daylight; now that the mines have been cleared, it is safe to travel after dark.
- Angkor Chum to Varin - Charchhouk Commune. Travel time was reduced from three hours to twenty five minutes and the cost decreased from Riel 30,000 to Riel 8,000. Despite the improvements in the road, there were drainage problems.
- Road PR 213 - Reakreay Commune. Before the road was improved, no middleman would come to the village to buy rice. After road improvement , the middleman comes and pays R 1200/km. Before the villagers relied on traditional medicine; now they can visit health clinics when sick. Before the school drop-out rate was high after 4th grade (the village school only went to 4th grade); now they have a secondary school and school attendance is high.
- Salavisai to Stoung road. The road serves about 2000 people and passes through two communes. Before improvement, only animal cart transport was possible. After the road was improved, the cost to Kampong Thoms dropped from 35,000 to 2-3,000 Riel. Access to markets, schools, clinics and the hospital improved, and traders and NGOs are coming into the area.
- According to the the regions comments, the Bank’s EXT colleagues in Cambodia interviewed beneficiaries and produced a video which was posted on the Bank website. The people interviewed siad that through the project their revenues have increased because more buyers visit their villages, the project has reduced the travel distances and times on the roads, improved access to markets, health centers and schools, etc. During the interview, a woman who lives in a village near one of the roads of the project said with tears in eyes: "I could not go to high school because there was no road to reach the high school from my village. Today, thanks to the road rebuilt by the project, I am proud that my children can go to high school easily".
Social development was promoted with the participation of about 15,000 people in preventive activities (HIV/AIDS awareness, road safety, unexploded ordnance awareness).
The ICR reports that road safety became a problem with the improvement in roads. There were some accidents - 12 in 2011 and 9 in 2010 on Angkor Chum to Varin road - Charchhouk Commune. On PR 213 - Reakreay Commune, traffic accidents are a problem, due to high speeds and drunk driving. In one month there were four accidents.
At appraisal the Economic rate of return was estimated at 35%.
The ex-post analysis used actual costs and traffic volumes. The current (2011) traffic counts were available for only two of the Ministry of Public Works and Transport roads (NR 65 and NR 71). These counts showed traffic levels that were approximately equal or somewhat lower than those assumed at appraisal. The ICR (p. 28) reports that overall trends show substantial increases in traffic volumes throughout Cambodia, it is likely that the counts were incomplete and/or influenced by the count location.
For the Ministry of Rural Development roads, traffic counts were taken shortly after completion of each road. These show levels of traffic growth that were higher than expected, with increases of 45% in Oddar Meanchey Province, 186% in Preah Vihear Province, 352% in Siem Reap Province and 358% in Kampong Thom Province. The counts include non-motorized and motorized vehicles, with the highest growth in numbers of motor cycles. As the roads were barely passable, if at all, prior to improvement, high levels of traffic growth are reasonable.
For Ministry of Public Works and Transport roads, six road links yielded a range of NPVs from US$0.025 million to US$8.8 million and ERRs ranging from 15 percent and 21 percent. These fall within the same range as the original estimates for the same roads. For Ministry of Rural Development, the ex-post ERRs range 19 percent and above 50 percent.
The project closed on December 31, 2011, more than four year after the closing date of September 30, 2007. There were no major cost overruns.
Overall, efficiency is rated modest.
a. If available, enter the Economic Rate of Return (ERR)/Financial Rate of Return at appraisal and the re-estimated value at evaluation:
* Refers to percent of total project cost for which ERR/FRR was calculated