Progress Report on Tranche Release Project Number: 38558-013 Loan Number: 2673 April 2017 Cambodia: Water Resources Management Sector Development Program (Second Tranche) This consultant s document report is being does not disclosed necessarily to reflect the the public views of in ADB accordance the government with concerned. ADB's Public [For Communications PPTAs: Also, all of Policy the views 2011. expressed herein may not be incorporated into the proposed project s design.]
CURRENCY EQUIVALENTS (as of 4 April 2017) Currency Unit riel (KR) KR1.00 = $0.000248 $1.00 = KR4,017.558 ABBREVIATIONS ADB Asian Development Bank CISIS Cambodia Irrigation Schemes Information System CoM Council of Ministers FWUC farmers water user community ITC Institute of Technology Cambodia IWRM Integrated water resources management MOWRAM Ministry of Water Resources and Meteorology NRBMC National River Basin Management Committee O&M operation and maintenance PDWRAMs provincial departments of water resources and meteorology TSC Technical Services Center NOTE In this report, "$" refers to US dollars. Vice-President S. Groff, Operations 2 Director General J. Nugent, Southeast Asia Department (SERD) Director J. Zhang, Environment, Natural Resources, and Agriculture Division, SERD Team leader Team member R. Farrukh, Water Resources Specialist, SERD E. Battung, Project Analyst, SERD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
CONTENTS Page I. INTRODUCTION 1 II. BACKGROUND 1 III. PROGRESS IN PROGRAM IMPLEMENTATION 1 A. Overall Progress 1 B. Status of Compliance with Tranche Two Conditions 3 IV. CONCLUSION 5 V. THE PRESIDENT SDECISION 5 APPENDIX: STATUS OF COMPLIANCE WITH TRANCHE TWO CONDITIONS 6
I. INTRODUCTION 1. The Asian Development Bank (ADB) approved the Water Resources Management Sector Development Program (WRMSDP) on 23 September 2010 for SDR13,207,000.0 ($20.0 million equivalent at approval). 1 The loan agreement was signed on 22 October 2010, and declared effective on 3 June 2011. The Government of Cambodia fulfilled the conditions for release of the first tranche of the program loan, equaling SDR6,603,000 ($10,371,794), which was released on 3 October 2011. The original loan closing date was 30 June 2013. It has been extended five times on the requests of the government to meet with the 12 policy conditions for release of the second tranche. The revised loan closing date is 30 June 2017. II. BACKGROUND 2. Cambodia s economy is highly dependent on water. Its importance for food production, rural livelihoods and economic development is recognized in phase III of the government s Rectangular Strategy for Growth, Employment, Equity and Efficiency (2013); and the Strategy for Agriculture and Water (2009 2013). Rainfall distribution and river discharges are highly seasonal, variable and unpredictable, with a natural pattern of wet and dry seasons, typhoons, floods and droughts. The associated annual rise and fall of the Mekong River has both positive and negative effects, sustaining the critical water cycles of the Tonle Sap Lake and Lower Mekong Delta necessary for agriculture and fisheries production, but with the potential to cause major flooding and damage to infrastructure and crops, and loss of life. Climate change has further increased the challenges of water management, with a decrease in rainfall in the dry season and an increase in the wet season, more frequent extreme weather events, and potential worsening of seasonal water shortages and floods. 3. The sector development program supports the process of (i) strengthening national water sector policy and regulations, and the institutional environment; (ii) improving integrated water resources management (IWRM) performance in river basins; and (iii) strengthening irrigation services. The impact of the program will be enhanced food security, and the outcome is improved management of water resources and more efficient and sustainable irrigation services. The Ministry of Water Resources and Meteorology (MOWRAM) is the executing agency. III. PROGRESS IN PROGRAM IMPLEMENTATION A. Overall Progress 4. The program has delivered the envisaged outputs: (i) enhanced capacity for sustainable water resources management, and (ii) enhanced capacity of MOWRAM to manage and deliver irrigation services. Details of the achievements under these outputs are provided below. 1. Output A: Enhanced Capacity for Sustainable Water Resources Management 5. The program has (i) strengthened the enabling policy, regulatory and institutional environment to coordinate and collaborate on water resources management; and (ii) strengthened MOWRAM s capacity to promote IWRM in river basins. Key policy and legal 1 ADB. 2010. Report and Recommendation of the President to the Board of Directors: Proposed Loans, Grant, Technical Assistance Grant, and Administration of Loan and Technical Assistance Grants for the Water Resources Management Sector Development Program in the Kingdom of Cambodia. Manila.
2 reforms include (i) approval by the Prime Minister of sub-decrees for farmers water user communities (FWUCs) and river basin management, and submission of sub-decrees for water licensing and water quality monitoring by MOWRAM to the Council of Ministers, for approval of the Prime Minister; (ii) establishment of a national river basin management committee (a ministerial-level committee for coordination of water resources management); (iii) formation of two pilot river basin committees; and (iv) adoption of guidelines for division of asset responsibility between MOWRAM and water users, and assignment of appropriate rights and responsibilities for irrigation infrastructure to respective FWUCs within the project area. 6. All other activities envisaged under this output have been completed. A national water status report has been prepared that comprehensively reviews water resources in Cambodia. In support of a national water resources plan for Cambodia, a detailed work plan (including mainstreaming of IWRM) has been prepared for the National Water Resources Policy review, along with an implementation and investment plan. River basin committees for two pilot basins Stung Sen and Stung Sreng have been formed. The process followed for river basin planning (including mainstreaming climate change) has been generalized in a set of procedures, which include the mainstreaming of IWRM in climate change adaptation plans and actions. 2. Output B: Enhanced Capacity of the Ministry of Water Resources and Meteorology to Manage and Deliver Irrigation Services 7. To deliver this output, the program provided support to MOWRAM to improve its organizational and financial management at national, provincial and local levels by (i) strengthening the technical capacity of MOWRAM, provincial departments of water resources and meteorology (PDWRAMs), and district offices; and (ii) developing the capacity of government staff and farmers to carry out sustainable operation and maintenance (O&M). Guidelines for division of asset responsibility between MOWRAM and water users have been completed and the process of assigning rights and responsibilities has been demonstrated through agreements with several FWUCs in the project area. Activities have been conducted to strengthen financial management in MOWRAM and technical support provided for the ministry s transition to program budgeting. A review of MOWRAM s organizational structure, capacity, systems and staff resources was included in a report on institutional arrangements for the management of water resources in Cambodia; while further improvements are recommended, the report indicates that present arrangements provide a clear separation of responsibilities for water resource management and irrigation service delivery, with departmental roles that are well understood. 8. A gender unit in MOWRAM was established in October 2013 and the gender mainstreaming action plan for MOWRAM was updated. A comprehensive irrigation O&M plan was developed and approved; implementation of the plan commenced in early 2014 and resulted in a 2015 budget (approved by Ministry of Economy and Finance) of $7.8 million for O&M of 131 irrigation schemes. Considerable work has been undertaken to improve the Cambodia Irrigation Schemes Information System (CISIS) database by surveying 1,026 schemes and updating their data. Training courses were developed and delivered for farmers on water management. A technical skills (vocational training) plan was prepared following a training needs assessment, and training provided accordingly.
3 B. Status of Compliance with Tranche Two Conditions 9. Of the 12 policy conditions for release of the second tranche of the program loan, the Borrower has fully complied with 9 second tranche conditions and substantially complied with 3 tranche conditions. The details are reflected below. 10. Condition 1. Tranche condition 1 required the Borrower to issue either sub-decrees or prakas (administrative orders), as appropriate, on (a) the procedures for the establishment of FWUCs, (b) river basin management, (c) the establishment of water licensing, and (d) water quality. The Borrower has issued two sub-decrees with approval of the Prime Minister for (a) and (b). The Borrower has also issued two prakas relating to the water licensing and drinking water quality monitoring standards. Ministry of Industry and Handicraft is responsible for providing water licensing and monitoring water quality standards. Prakas for water licensing fully comply with the policy condition requirement. Prakas for water quality standards is only for drinking water therefore is considered partly compliant with the requirement of tranche condition. In view of the overall objective of Condition 1 of strengthening the strategy, policy and legal framework for IWRM, therefore, this tranche condition is considered substantially complied with. 11. Condition 2. For tranche condition 2, the Borrower was required to establish and operationalize a ministerial-level committee for coordination of water resources management to be chaired by the Borrower at the highest level, include relevant ministers as members, and be supported by an inter-ministerial secretariat. The Borrower established and operationalized the National River Basin Management Committee (NRBMC) as an apex national committee for coordination of water resources management in Cambodia on 6 October 2015. It is chaired by the minister of MOWRAM, with the secretaries of state of 13 relevant ministries as members, as well as the general secretary of the Cambodia National Mekong Committee. A secretariat to support the NRBMC has been established with the advisor to the MOWRAM minister as the chairperson, comprising 15 members from various departments of MOWRAM, the Tonle Sap Authority, and the planning and international cooperation departments. The NRBMC is considered to have substantially complied with the requirement that the committee be chaired at the highest level (the chair heads the ministry with specific jurisdiction over water resources, and the committee has been established by the Prime Minister). 12. Condition 4. For tranche condition 4, the Borrower (through the ministerial-level committee for coordination of water resources management) was required to have (a) commissioned a review of the national water resources plan (2009 2013), and (b) issued recommendations for the preparation of the national water resources plan (2014 2018). During implementation, it was noted that national water resources plan (2009 2013) was a draft that was not finalized and approved by the Borrower. Consequently, a national report on the status of water resources was prepared to document the existing state of water resources 2, and the NRBMC chairman issued recommendations through a notification to prepare a national water resources plan for 2016 2020. A work plan has been prepared that provides guidelines for preparing the plan, and outlining essential plan elements. This condition is considered substantially complied with. 13. Remaining conditions. Tranche conditions 3, 5, 6, 7, 8, 9, 10, 11 and 12 are fully complied with by the Borrower. Tranche condition 3 required the Borrower to have issued a This consultant s report does not necessarily reflect the views of ADB or the government concerned. [For policy for clarifying the coordination and cooperation mechanisms between the Cambodia PPTAs: Also, all of the views expressed herein may not be incorporated into the proposed project s National design.] Mekong Committee, Tonle Sap Authority, MOWRAM and river basin committees, 2 This was advised by the midterm review mission, 22 April 4 May 2013.
4 through a ministerial-level committee for coordination of water resources management. The Chairman of the NRBMC issued the required policy notification. Tranche condition 5 required the Borrower to establish the Stung Sen river basin committee, which was established on 6 April 2015. Tranche condition 6 required the Borrower to prepare and approve a national water resources profile, which was approved on 29 March 2016. 14. Tranche condition 7 required the Borrower to establish procedures to mainstream (a) IWRM in the national water resources plan, (b) climate change adaptation in IWRM plans, and (c) IWRM in climate change adaptation plans and actions. The Borrower has prepared a work plan for preparing the national water resources management plan that includes the procedures for mainstreaming IWRM and climate change adaptation. The work plan has been approved by the chairman of the NRBMC (para. 11). Tranche condition 8 required the Borrower to commence implementation of the plan developed by the Institute of Technology Cambodia (ITC) and MOWRAM for effective delivery of bachelor s and post-graduate engineering degree courses in water resources management. ITC commenced a bachelor s degree course in 2011 and a master s degree course in 2012. The bachelor s degree course is being financed by the capacity building technical assistance (footnote 1) by providing scholarships and other expenses for 120 students enrolled in four batches from 2011 to 2015. The letter of agreement for funding of the scholarship program was signed on 21 July 2014. A progress report was submitted by ITC in June 2015 that confirms the delivery of courses in water resources. 15. Tranche condition 9 required the Borrower to have (a) adopted the guidelines for division of asset responsibility between the Borrower and water users, and (b) assigned appropriate rights and responsibilities for irrigation infrastructure to respective FWUCs within the project area. The Borrower prepared and adopted guidelines on the division of asset responsibility between the government and FWUCs. Implementation of the guidelines to establish legal status of irrigation works and assigned rights was done by approving the FWUCs sub-decree. Tranche condition 10 required the Borrower to (a) complete the review of MOWRAM s organizational structure, capacity, systems and staff resources; and (b) define the appropriate demarcation of responsibilities within MOWRAM for water resource management and irrigation service delivery. The Borrower completed the review and prepared a report on Institutional Arrangements for the Management of Water Resources in Cambodia (including a review of MOWRAM s organizational structure) in February 2015. Responsibilities within MOWRAM for water resources management and irrigation service delivery are set out in the report. 16. Tranche condition 11 required the Borrower to prepare, adopt and implement a comprehensive irrigation O&M plan. The Borrower put special emphasis on O&M and prepared a comprehensive O&M plan in October 2014, and an implementation manual that includes guidelines for irrigation scheme O&M. Implementation commenced in early 2014. The Ministry of Economy and Finance approved a budget of $7.8 million for 2015 on the basis of the O&M plan. Training to support PDWRAMs in implementing the O&M plan was undertaken in the first quarter of 2015. 17. Tranche condition 12 required the Borrower to have (a) developed and delivered training courses to include on-farm water management and irrigation practices, and maintenance of major and minor irrigation works; and (b) harmonized the training curriculum between the FWUC Department and the Technical Service Center (TSC). Training courses regarding onfarm water management and irrigation practices, and maintenance of major and minor irrigation works were developed and delivered by the TSC. Training was also delivered at the provincial level in the project area (Battambang, Banteay Meancheay, Pursat and Kampong Thom) during 2012 2014. Training on O&M, budget preparation, accounting, climate change, CISIS, IWRM
5 and gender issues was conducted through the capacity development technical assistance. TSC training courses were prepared in cooperation with FWUC Department. The training curriculum was updated and harmonized between the TSC and FWUC Department. IV. CONCLUSION 18. The government has implemented important policy and institutional reform measures agreed to under the program, and substantially fulfilled the conditions for second tranche release. Major reforms have been implemented for IWRM, and to improve irrigation service delivery. The institutional capacity of the MOWRAM has been strengthened by introducing new budget planning and financial management systems, and providing training. Nine of the policy conditions have been fully met and three have been substantially complied with (Appendix 1). V. THE PRESIDENT S DECISION 19. In view of the progress made in the implementation of the Water Resources Management Sector Development Program, as evidenced by the full compliance with nine second tranche release conditions and substantial compliance with three second tranche release conditions, the President is satisfied with the overall implementation of the Water Resources Management Sector Development Program, and that the necessary conditions for the release of the second tranche have now been fulfilled. In accordance with the established procedure, the President will authorize the release of the second tranche in the amount of SDR6,604,000. The authorization shall be effective not less than 10 working days after circulation of this progress report to ADB's Board of Directors. This consultant s report does not necessarily reflect the views of ADB or the government concerned. [For PPTAs: Also, all of the views expressed herein may not be incorporated into the proposed project s design.]
6 Appendix STATUS OF COMPLIANCE WITH TRANCHE TWO CONDITIONS No. Description Compliance status TC1 TC2 TC3 Strengthen Legal Framework for IWRM The Borrower shall have issued either sub-decrees or Prakas, as appropriate, on (a) the procedures for the establishment of FWUCs; (b) river basin management; (c) the establishment of water allocation/licensing; and (d) water quality. Improve National Coordination and Collaboration on Water Resources Management The Borrower shall have established and operationalized a ministerial level committee for coordination of water resources management to be chaired at the highest level of the Borrower and include relevant ministers as members, and supported by an inter-ministerial secretariat. The Borrower through a ministerial level committee for coordination of water resources management shall have issued a policy that shall clarify the coordination and cooperation mechanisms between Cambodia National Mekong Committee, Tonle Sap Authority, MOWRAM and river basin committees. Substantially Complied With The FWUC sub-decree was issued in March 2015, and the River Basin Management subdecree in July 2015. Prakas for water licensing and national drinking water quality standards were issued in July 2015. Substantially Complied With Prime Minister formed the NRBMC as an apex national committee for coordination of water resources management in Cambodia on 6 October 2015. It is chaired by the minister of MOWRAM; members include the secretaries of state of the following ministries: Public Works and Transport, Economy and Finance, Environment, Agriculture, Forestry and Fisheries, Industry and Handicraft, Mines and Energy, Rural Development, Tourism, Land Management, Urban Planning and Construction, Planning, Culture and Art, and Health. The general secretary of the Cambodia National Mekong Committee is also a member. The NRBMC is considered to comply with the requirement that it should be chaired at the highest level (the chairman heads the ministry with specific jurisdiction over water resources), and the committee was formed by the Prime Minister. The Secretariat was established on 21 October 2015, chaired by the MOWRAM advisor, with members from the ministries of Planning, Agriculture, Forestry and Fisheries, Environment, Mines and Energy. The chairman of the NRBMC issued the policy notification for adopting the coordination and cooperation mechanism detailed in the report on institutional arrangements for the management of water resources in Cambodia.
Appendix 7 No. Description Compliance status TC4 TC5 TC6 TC7 Implement National Water Resources Policy The Borrower through the ministerial level committee for coordination of water resources management shall have (a) commissioned a review of the national water resources plan (2009-2013); and (b) issued recommendations for the preparation of the national water resources plan (2014-2018). Pilot Test Mechanisms for River Basin Level Coordination and Collaboration have established the Stung Sen river basin committee. National Assessment of Water Resources have prepared and approved a national water resources profile. Mainstream IWRM and Climate Change Adaptation The Borrower through the ministerial level committee for coordination of water resources management shall have established procedures to mainstream (a) IWRM in the national water resources plan; (b) climate change adaptation in IWRM plans; and (c) IWRM in climate change adaptation plans and actions. Substantially Complied With The national water resources plan (2009 2013) to be reviewed was not finalized and approved by the Borrower, so a national water status report was prepared under the program to document the existing status of water resources. The NRBMC chairman issued recommendations through a notification to prepare a national water resources plan for 2016 2020. A work plan has been prepared that provides guidelines for preparing the plan and essential elements to be included. The river basin committee was established on 6 April 2015 with approval of the MOWRAM minister. The committee is chaired by the deputy governor of Kampong Thom Province and has 14 members from offices of the governors of the two provinces; departments of water resources and meteorology; and agriculture, forestry and fisheries; and heads of FWUCs. The national water resources profile report was prepared and approved on 29 March 2016. The work plan for preparing the national water resources management plan includes the procedures for mainstreaming IWRM and climate change adaptation. The work plan has been approved by the chairman of the NRBMC (the ministerial level committee for coordination of water resources management). This consultant s report does not necessarily reflect the views of ADB or the government concerned. [For PPTAs: Also, all of the views expressed herein may not be incorporated into the proposed project s design.]
8 Appendix No. Description Compliance status TC8 TC9 TC10 Develop Technical Skills (tertiary) at Institute of Technology Cambodia (ITC). have commenced the implementation of the plan developed by ITC and MOWRAM for effective delivery of bachelor and post-graduate engineering degree courses in water resources management. Legal status of irrigation works have (a) adopted the guidelines for division of asset responsibility between the Borrower and water users; and (b) assigned appropriate responsibilities and rights for irrigation infrastructure to respective FWUCs within the Project Area. Strengthen MOWRAM s internal linkages between line departments have (a) completed the review of MOWRAM s organizational structure, capacity, systems and staff resources; and (b) defined the appropriate demarcation of responsibilities within MOWRAM for water resource management and irrigation service delivery. The plan, documented as a contract between ITC and MOWRAM, was prepared to start bachelor s and master s degree courses on water resources in the Department of Rural Engineering. Subsequently a report on development of a water resources engineering curriculum for ITC was prepared. ITC commenced a bachelor s degree course in 2011 and master s degree course in 2012. The bachelor s degree course is financed through the capacity development technical assistance, by providing scholarships and other expenses for 120 students enrolled in four batches during 2011 2015. A letter of agreement for funding the scholarship program was signed on 21 July 2014. A progress report was submitted by ITC in June 2015 that confirms the delivery of courses in water resources. Guidelines on the division of asset responsibility between the government and FWUCs were prepared and adopted. Implementation of the guidelines to establish legal status of irrigation works and assigned rights was done by approving an FWUC sub-decree. (a) A report on Institutional Arrangements for the Management of Water Resources in Cambodia (including a review of MOWRAM s organizational structure) was completed in February 2015 and the MOWRAM minister issued a notification of approval on 29 March 2016. (b) The report clearly describes the demarcation of responsibilities within MOWRAM for water resource management and irrigation service delivery. The report concludes that the separation of responsibilities for water resource management and irrigation service delivery is clear under the present arrangements, with departmental roles well understood. The report also makes recommendations for structures that would further strengthen separation of responsibilities.
Appendix 9 No. Description Compliance status TC11 Strengthen MOWRAM's O&M planning processes have prepared, adopted and implemented a comprehensive irrigation O&M plan. A comprehensive O&M plan was completed in October 2014 and integrated with the policy and implementation manual (including guidelines) for O&M of irrigation schemes. Plan implementation began in early 2014 and resulted in a 2015 budget (approved by the Ministry of Economy and Finance) of $7.8 million for O&M of 131 irrigation schemes. Training to support PDWRAMs for implementation of O&M was undertaken in Q1 of 2015. TC12 Develop Technical Skills (vocational training) have (a) developed and delivered training courses to include on-farm water management and irrigation practices, and maintenance of major and minor irrigation works; and (b) harmonized the training curriculum between the FWUC Department and the TSC. (a) Training courses on on-farm water management and irrigation practices, and maintenance of major and minor irrigation works were developed and delivered by the TSC. Under Component C, training was delivered at the provincial level in the project area (Battambang, Banteay Meancheay, Pursat and Kampong Thom) from 2012 to 2014. Training on O&M, budget preparation, accounting, climate change, CISIS, IWRM and gender issues were conducted through the capacity development technical assistance. (b) TSC training courses were prepared in cooperation with FWUC Department. Training curriculum was updated to include the new FWUC sub-decree and new funding modality for FWUCs (referring to guidelines for sustainable FWUCs), and was harmonized between TSC and the FWUC Department. CISIS = Cambodia Irrigation Schemes Information System, CoM = Council of Ministers, FWUC = farmers water user community, ITC = Institute of Technology Cambodia, IWRM = integrated water resource management, MOWRAM = Ministry of Water Resources and Meteorology, NRBMC = National River Basin Management Committee, O&M = operation and maintenance, PDWRAMs = provincial departments of water resources and meteorology, TSC = Technical Services Center Source: Asian Development Bank This consultant s report does not necessarily reflect the views of ADB or the government concerned. [For PPTAs: Also, all of the views expressed herein may not be incorporated into the proposed project s design.]