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FOR OFFICIAL USE ONLY Report No: PAD3079

INTERNATIONAL DEVELOPMENT ASSOCIATION

PROJECT APPRAISAL DOCUMENT

ON A

PROPOSED CREDIT

IN THE AMOUNT OF SDR 36.5 MILLION

(US$50.66 MILLION EQUIVALENT)

TO THE

KINGDOM OF CAMBODIA

FOR A

CAMBODIA SUSTAINABLE LANDSCAPE AND ECOTOURISM PROJECT

May 8, 2019 Environment and Natural Resources Global Practice East Asia and Pacific Region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

(Exchange Rate Effective March 31, 2019)

Currency Unit = Cambodian Riel (KHR)

KHR 4,035.02 US$1

SDR 0.7203 = US$ 1

US$1.388 = SDR 1

FISCAL YEAR

January 1 – December 31

Regional Vice President: Victoria Kwakwa

Country Director: Ellen A. Goldstein

Country Manager: Inguna Dobraja

Senior Director: Karin Erika Kemper

Practice Manager: Christophe Crepin

Task Team Leaders: Anjali Acharya, Maurice Andres Rawlins

ABBREVIATIONS AND ACRONYMS BCC Biodiversity Conservation Corridor BDS Business Development Service CBET Community-based Ecotourism CERC Contingent Emergency Response Component CMTS Cardamom Mountains-Tonle Sap CPA Community Protected Area CPF Country Partnership Framework CQS Selection Based on Consultants’ Qualifications DA Designated Account DoFA Department of Finance and Accounting DSF Department of Supply and Finance DP Development Partner EA Executing Agency ELC Economic Land Concession ERM Emergency Response Manual ERR ESIA

Economic Rate of Return Environmental and Social Impact Assessment

ESMF Environment and Social Management Framework ESMP Environmental and Social Management Plan EX-ACT Ex-Ante Carbon-Balance Tool FAO Food and Agriculture Organization FFI Flora and Fauna International FM Financial Management GDEKI General Department of Environmental Knowledge and Information GDP Gross Domestic Product GDICDM General Department of International Cooperation and Debt Management GDLC General Department for Local Communities GEF Global Environment Facility GHG Greenhouse Gas GIS Geographic Information System GDANCP General Department of Administration for Nature and Conservation GRS Grievance Redress Service IA Implementing Agency ICR Implementation Completion and Results Report IFR Interim Financial Report IPF Investment Project Financing IPPF Indigenous Peoples Planning Framework ISDS Information Systems and Decision Support M&E Monitoring and Evaluation MAFF Ministry of Agriculture, Forestry, and Fisheries MEF Ministry of Economy and Finance METT Management Effectiveness Tracking Tool MFD Maximizing Finance for Development MIS Management Information System MoE Ministry of Environment MoT Ministry of Tourism

MRD Ministry of Rural Development NDC Nationally Determined Contribution NBC National Bank of Cambodia NGO Non-Government Organization NPASMP National Protected Area Strategic Management Plan NPV Net Present Value NRM Natural Resource Management NTFP Non-Timber Forest Product O&M Operation and Maintenance PA Protected Area PF Process Framework PAD Project Appraisal Document PDO Project Development Objective PDoE Provincial Department of Environment PES Payment for Environmental Services PIT Project Implementation Team PPSD Project Procurement Strategy for Development PIM Project Implementation Manual PIU Project Implementation Unit PPP Public-Private Partnership PSC Project Steering Committee QCBS Quality- and Cost-Based Selection REDD Reducing Emissions from Deforestation and Forest Degradation RFP Request for Proposal RFQ Request for Quotation RGC Royal Government of Cambodia RPF Resettlement Policy Framework SCD Systematic Country Diagnostic SMART Spatial Monitoring and Reporting Tool SMEs Small and Medium Enterprises STEP Systematic Tracking of Exchanges in Procurement TA Technical Assistance UNDP United Nations Development Programme UNFCCC United Nations Framework Convention on Climate Change VCA Value Chain Analysis WASH Water, Sanitation, and Hygiene WAVES Wealth Accounting and the Valuation of Ecosystem Services

The World Bank Cambodia Sustainable Landscape and Ecotourism Project (P165344)

TABLE OF CONTENTS

DATASHEET ........................................................................................................................... 1

I. STRATEGIC CONTEXT ....................................................................................................... 7 A. Country Context ............................................................................................................................ 7 B. Sectoral and Institutional Context ................................................................................................ 8 C. Relevance to Higher Level Objectives ......................................................................................... 13

II. PROJECT DESCRIPTION .................................................................................................. 15 A. Project Development Objective .................................................................................................. 15 B. Project Components ................................................................................................................... 16 C. Project Beneficiaries ................................................................................................................... 25 D. Results Chain ............................................................................................................................... 26 E. Rationale for Bank Involvement and Role of Partners ................................................................ 28 F. Lessons Learned and Reflected in the Project Design ................................................................ 28

III. IMPLEMENTATION ARRANGEMENTS ............................................................................. 30 A. Institutional and Implementation Arrangements ....................................................................... 30 B. Results Monitoring and Evaluation Arrangements ..................................................................... 31 C. Sustainability ............................................................................................................................... 32

IV. PROJECT APPRAISAL SUMMARY .................................................................................... 33 A. Technical, Economic, and Financial Analysis............................................................................... 33 B. Fiduciary ...................................................................................................................................... 36 C. Safeguards ................................................................................................................................... 38

V. KEY RISKS ..................................................................................................................... 40

VI. GENDER AND CLIMATE CHANGE .................................................................................... 41

VII. RESULTS FRAMEWORK AND MONITORING .................................................................... 44

ANNEX 1: IMPLEMENTATION ARRANGEMENTS AND SUPPORT PLAN ................................... 68

ANNEX 2. WORLD BANK TEAM LIST ..................................................................................... 84

ANNEX 3: ECONOMIC ANALYSIS AND METHODS .................................................................. 85

ANNEX 4: ADDRESSING CLIMATE CHANGE AND DISASTER RISK ............................................ 92

ANNEX 5: GENDER ANALYSIS IN FOREST MANAGEMENT AND ECOTOURISM ........................ 97

ANNEX 6: SUSTAINABILITY MANAGEMENT FRAMEWORK .................................................. 100

ANNEX 7: MAPS OF PROJECT AREA .................................................................................... 103


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DATASHEET

BASIC INFORMATION BASIC_INFO_TABLE

Country(ies) Project Name

Cambodia Cambodia Sustainable Landscape and Ecotourism Project

Project ID Financing Instrument Environmental Assessment Category

P165344 Investment Project Financing

B-Partial Assessment

Financing & Implementation Modalities

[ ] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC)

[ ] Series of Projects (SOP) [ ] Fragile State(s)

[ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s)

[ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country

[ ] Project-Based Guarantee [ ] Conflict

[ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster

[ ] Alternate Procurement Arrangements (APA)

Expected Approval Date Expected Closing Date

30-May-2019 31-Dec-2025

Bank/IFC Collaboration

No

Proposed Development Objective(s)

The Project Development Objective is to improve protected areas management, and to promote ecotourism opportunities and non-timber forest product value chains in the Cardamom Mountains-Tonle Sap landscape.

Components

Component Name Cost (US$, millions)


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Component 1: Strengthen Capacity for Protected Areas (PAs) Landscape Planning and Management

6.79

Component 2. Strengthen Opportunities for Ecotourism and Non-Timber Forest Product (NTFP) Value Chains

16.75

Component 3. Improve Access and Connectivity 23.86

Component 4. Project Management, Coordination, Monitoring and Evaluation 5.76

Component 5:Contingent Emergency Response 0.00

Organizations

Borrower: Kingdom of Cambodia

Implementing Agency: Ministry of Environment Ministry of Rural Development

PROJECT FINANCING DATA (US$, Millions)

SUMMARY-NewFin1

Total Project Cost 53.16

Total Financing 53.16

of which IBRD/IDA 50.66

Financing Gap 0.00

DETAILS-NewFinEnh1

World Bank Group Financing

International Development Association (IDA) 50.66

IDA Credit 50.66

Non-World Bank Group Financing

Counterpart Funding 2.50

Borrower/Recipient 2.50

IDA Resources (in US$, Millions)

Credit Amount Grant Amount Guarantee Amount Total Amount


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National PBA 50.66 0.00 0.00 50.66

Total 50.66 0.00 0.00 50.66

Expected Disbursements (in US$, Millions)

WB Fiscal Year 2019 2020 2021 2022 2023 2024 2025 2026

Annual 0.00 1.84 3.27 4.50 7.33 11.24 14.98 7.50

Cumulative 0.00 1.84 5.11 9.61 16.93 28.18 43.16 50.66

INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas

Environment & Natural Resources Agriculture, Climate Change, Finance, Competitiveness and Innovation

Climate Change and Disaster Screening

This operation has been screened for short and long-term climate change and disaster risks

Gender Tag

Does the project plan to undertake any of the following?

a. Analysis to identify Project-relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF

Yes

b. Specific action(s) to address the gender gaps identified in (a) and/or to improve women or men's empowerment

Yes

c. Include Indicators in results framework to monitor outcomes from actions identified in (b) Yes

SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT)

Risk Category Rating

1. Political and Governance ⚫ Moderate

2. Macroeconomic ⚫ Moderate

3. Sector Strategies and Policies ⚫ Moderate


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4. Technical Design of Project or Program ⚫ Substantial

5. Institutional Capacity for Implementation and Sustainability ⚫ Substantial

6. Fiduciary ⚫ Substantial

7. Environment and Social ⚫ Substantial

8. Stakeholders ⚫ Moderate

9. Other

10. Overall ⚫ Substantial

COMPLIANCE

Policy Does the project depart from the CPF in content or in other significant respects?

[ ] Yes [✓] No

Does the project require any waivers of Bank policies?

[ ] Yes [✓] No

Safeguard Policies Triggered by the Project Yes No

Environmental Assessment OP/BP 4.01 ✔

Performance Standards for Private Sector Activities OP/BP 4.03 ✔

Natural Habitats OP/BP 4.04 ✔

Forests OP/BP 4.36 ✔

Pest Management OP 4.09 ✔

Physical Cultural Resources OP/BP 4.11 ✔

Indigenous Peoples OP/BP 4.10 ✔

Involuntary Resettlement OP/BP 4.12 ✔

Safety of Dams OP/BP 4.37 ✔

Projects on International Waterways OP/BP 7.50 ✔

Projects in Disputed Areas OP/BP 7.60 ✔


Page 5 of 104

Legal Covenants Sections and Description Institutional Arrangements Financing Agreement: Schedule 2, Section I.A Recurrent, Continuous The Recipient shall establish not later than one (1) month from the Effective Date, a Project Steering Committee, and Project Implementation Teams within MOE and MRD, and thereafter maintain, throughout the Project implementation period, the said Project Steering Committee and Project Implementation Teams all with functions, staffing and resources satisfactory to the Association.

Sections and Description Project Implementation Manual Financing Agreement: Schedule 2, Section I.B Recurrent, Continuous The Recipient shall carry out the Project in accordance with the Project Implementation Manual, and not amend, waive or abrogate any provisions of the manual unless the Association agrees otherwise in writing.

Sections and Description Annual Work Plans and Budgets Financing Agreement: Schedule 2, Section I.C Recurrent, Annual The Recipient shall prepare and furnish to the Association for its no-objection no later than November 30 of each fiscal year an annual work plan and budget during the implementation of the Project containing relevant Project activities and expenditures proposed to be included in the Project in the following fiscal year, including a specification of the sources of financing, including (i) the Recipient’s funds required for undertaking land registration in the prioritized PAs and (ii) the Credit proceeds and any other sources of funding for other activities.

Sections and Description Environmental and Social Safeguards Financing Agreement: Schedule 2, Section I.D Recurrent, Continuous The Recipient shall ensure that the Project is carried out in accordance with the provisions of the Safeguards Instruments and the site-specific safeguard plans, not amend, abrogate, repeal, suspend or waive any of their provisions unless the Association agrees otherwise, and report on their status of implementation as part of the project reports.

Sections and Description Mid-term Review Financing Agreement: Schedule 2, Section II.B Once, 36 months after the Effective Date The Recipient shall prepare and furnish to the Association a mid-term report in form and substance satisfactory to the Association.


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Sections and Description Contingent Emergency Response Financing Agreement: Schedule 2, Section I.E In case of an Eligible Crisis or Emergency The Recipient shall adopt a satisfactory Emergency Response Manual for Part 5 of the Project and, in the event of an eligible crisis or emergency, ensure that the activities under said part are carried out in accordance with such manual and all relevant safeguard requirements.

Conditions

Type Description

Disbursement Financing Agreement: Schedule 2, Section III.B:

The Recipient may not withdraw the proceeds of the Financing as may be allocated to Part 5

unless an Eligible Crisis or Emergency has occurred, all related safeguards instruments and

requirements have been completed, the emergency response implementing entities have

adequate staff and resources, and the Recipient has adopted the Emergency Response

Manual, acceptable to the Association.


Page 7 of 104

I. STRATEGIC CONTEXT

A. Country Context

1. Cambodia has experienced remarkable economic growth and poverty reduction over the past two decades but is still one of the poorest countries in Southeast Asia. Cambodia sustained an average growth rate of 7.6 percent in 1994–2015, ranking sixth in the world. Gross national income per capita increased, from US$300 in 1994 to around US$1,070 in 2015, the year in which Cambodia reached the lower-middle-income status. Cambodia also made significant progress in attaining the Millennium Development Goals. Since 1990, the country more than halved extreme poverty and maternal mortality, achieved nearly universal primary education enrollment, and made significant progress in combating HIV/AIDS. The percentage of Cambodians living under the national poverty line dropped from 47.8 percent in 2007 to 13.5 percent in 2014, accompanied by a decrease in inequality. However, despite this progress, most of the families that rose above the poverty line did so by a small margin, leaving them at risk in the event of an adverse shock.

2. This growth has been driven to a large extent by the country’s rich and diverse natural capital. 1 Natural capital such as cropland and forest resources account for about 40 percent of Cambodia’s wealth and contributes significantly to its economy (figure 1). Agriculture, which depends heavily on the water flow regulation, erosion regulation, and nutrient retention services provided by forests, contributed 27 percent of GDP in 2016 and supported the incomes of more than 5 million Cambodians. Tourism is an important engine of growth for Cambodia, with strong entry points for ecotourism, building on the country’s considerable natural capital in key landscapes.2 The country’s growing energy needs are met in part by hydropower, for which forest systems are important for water flow and sediment regulation in rivers.

3. However, the country’s natural capital is being degraded rapidly by unsustainable economic activities—forest cover and wetland areas have decreased, water and soil quality has declined, and erosion has increased, thereby lowering the productivity of the agricultural and fisheries sectors. According to official estimates, forest cover declined from nearly 60 percent in 2006 to 48 percent in 2016, mainly because of the conversion of forests to agriculture or rubber plantations within economic land concessions (ELCs). Compounding this is Cambodia’s high exposure to climate change which, based on the scenario of a 2°C temperature rise by 2050, is estimated to reduce the country’s total projected GDP by

1 Natural capital are assets that provide natural resource inputs and environmental services for economic production. 2 The term ‘landscape’ is defined as a heterogeneous land area comprising a cluster of interacting ecosystems that is repeated in similar form throughout.

Figure 1. Natural, Produced, and Human Capital in Cambodia as a Proportion of Total Wealth (1995–2014)

Source: World Bank data at 2014 constant US$.

0%

10%

20%

30%

40%

50%

60%

1995 2000 2005 2010 2014

Natural Capital Produced Capital Human Capital


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at least 1.5 percent in 2030 and 3.5 percent in 2050.3 Future droughts and high temperatures will affect overall forest moisture content, which will lead to drying and increase susceptibility to fires.

4. A significant proportion of this natural capital is found in the Cardamom Mountains-Tonle Sap (CMTS) landscape, which makes the area critical for supporting Cambodia’s growth and development. About 31 percent of the country’s forests are in the CMTS landscape.4 In Cambodia, there is a growing market5 for new ecotourism experiences and attractions that feature the country’s natural assets, which has potential for increasing tourism revenues. There is also an opportunity to support the further development of non-timber forest product (NTFP) value chains to generate income for rural people.6 In 2006, it was estimated that an average of 30 percent to 40 percent of household income was generated from NTFPs (Royal Government of Cambodia [RGC], Financial Agreement 2008).

5. However, while not preventing strong growth and poverty reduction thus far, governance and institutional capacity challenges continue to affect private and public sectors, ranging from firm competitiveness and access to assets and opportunities, and hinder the effective management of natural resources and protected areas (PAs) in Cambodia. Public sector capacity, although improved, remains uneven across ministries, and progress in public financial management (FM), public administration, legal and judicial, and decentralization reforms pursued over the past decade has been sluggish. In addition, weaknesses in law enforcement and forest monitoring make it difficult to reduce or eradicate the most serious threats to PAs, including illegal logging, hunting, trapping and fishing, land encroachment and migration, and the unsustainable use of NTFPs.

B. Sectoral and Institutional Context

6. The CMTS landscape, which covers more than 3.8 million ha7 and includes one of the world’s most productive freshwater fisheries 8 and the largest protected forest in Indochina, is a global biodiversity hotspot and supports an estimated 5 million Cambodians with income, food, and water.9 Forests in the Cardamom Mountains provide several key services that underpin economic activities in the area, including ensuring the sustainability of the watershed in the CMTS for the benefit of agricultural areas downstream. Water provision provided by these forests support agriculture in areas downstream

3 Royal Government of Cambodia. ‘Climate Change Financing Framework’. 2015. 4 Ministry of Environment (MoE), 2018. Cambodia Forest Cover 2016. General Directorate of Administration for Nature Conservation and Protection, MoE 5 According to data provided by the Department of Ecotourism, within MoE, there are 55 existing ecotourism enterprises (50 small scale < 10Ha); and ecotourism visitors were estimated at from 132051 in 2017. 6 During project preparation, a value-chain analysis of NTFPs was conducted. Nineteen commercial NTFP species were identified in the Central Cardamom Mountains. Commercial NTFP species refer to those having already been traded or generated income for villagers. 7 The landscape includes the PAs in the Cardamom Mountains and surrounding the Tonle Sap Lake. 8 In Cambodia, total 2016 fisheries production estimated at 802,450 tonnes – 509,350 tonnes from freshwater fisheries, 120,600 from marine capture and 172,500 tonnes from aquaculture. From MAFF 2017. Annual Report for Agriculture Forestry and Fisheries 2016–2017. See also https://www.conservation.org/projects/Pages/tonle-sap-lake-conserving-cambodia-fish-factory-mekong.aspx 9 The Central Cardamoms Protected Forests have 66 species of mammals, 174 species of birds, 74 species of reptiles, 32 species of amphibians, 44 fish species, and 300 species of moths and butterflies. It is also one of the few remaining large habitats for elephants in Cambodia and is home to approximately one-third of all endangered and rare species listed under the Cambodian Forestry Law. Also, the Cardamom Mountains sequester approximately 230 million metric tons of carbon per year making it important for Cambodia’s climate change mitigation efforts as part of its National Determined Contributions (NDCs) under the United Nations Framework Convention on Climate Change (UNFCCC).

https://www.conservation.org/projects/Pages/tonle-sap-lake-conserving-cambodia-fish-factory-mekong.aspx



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of the Cardamom Mountains, including in Pursat, Battambang, and Kampong Chhnang, and provide freshwater and nutrients to support fisheries in the Tonle Sap Lake. An estimated 6.2 billion m3 of high-quality freshwater is provided by the Central Cardamoms Protected Forests.10 Many households in the CMTS landscape depend on farming and fishing on a full-time, part-time, or seasonal basis to supplement their income and depend heavily on fish for their protein and other nutritional needs.11 Tonle Sap and Cambodia’s inland fisheries account for more than two-thirds of Cambodia’s protein consumption and are worth an estimated US$2 billion annually.12

7. Natural capital in the CMTS landscape is also important for Cambodia’s resilience. Climate risk analysis indicates that drought and flooding because of extreme rainfall are challenges for Cambodia now, and these are expected to increase in the future. Analysis has shown that CMTS forests are key for regulating water flows, as they are hotspots within Cambodia for groundwater recharge.13 Loss of these forests could reduce stream flows by as much as 80 percent in the dry season, which could have significant negative impacts on large agricultural areas in Pursat and Battambang Provinces that rely on streamflow for irrigation. Forests in the Cardamom Mountains also help mitigate flooding from heavy rainfall events by acting as temporary stores of water as well as reduce potential soil erosion from the CMTS by about 82 percent, and, thereby, heavy sediment loading in rivers. Although not contributing directly to Cambodia’s climate resilience, the carbon stored in the CMTS landscape is important for climate mitigation in Cambodia and globally and could become a significant source of revenue with REDD+14 markets developing.15

8. However, pressure for land, unsustainable use of natural resources, and heightened impacts of climate change are threatening the long-term sustainability of these natural assets with consequent adverse impacts on people. Forest degradation is pervasive and attributed to unsustainable logging practices, salvage logging, and fuelwood extraction. Land expansion has been a major factor, with cultivated land for crops increasing by 50 percent between 2002 and 2012, partly at the expense of forests (Forest Trends 2015).16 In addition, approximately 5.5 million tons of fuelwood are used each year by households and small and medium enterprises (SMEs), with 88 percent of the population still relying on traditional biomass for cooking. 17 Specifically, in the Cardamom Mountains, the greatest threats to

10 Conservation International. 11 Fish and other aquatic animals provide approximately 76 percent of Cambodians’ animal protein intake, and 37 percent of total protein intake per person (Inland Fisheries Research and Development Institute. 2013. Food and Nutrition Security Vulnerability to Mainstream Hydropower Dam Development in Cambodia). 12 https://www.conservation.org/projects/Pages/tonle-sap-lake-conserving-cambodia-fish-factory-mekong.aspx 13 Botrill et al. (2015) used ecosystem services modeling to determine the relative importance of different areas across Cambodia for freshwater production (areas of groundwater recharge following rainfall). Araza (2019) undertook hydrological ecosystem system modeling for the Cardamom Mountains and mapped key areas in the Cardamom Mountains for freshwater generation. Botrill et al., 2015. Metrics for Green Growth in Cambodia: Demonstration of Metrics for Conservation and Human Well-being. Technical Report Conservation International. Araza, Arnan, 2019. Key Results on Land Cover Change and Forest Loss in the Cardamom Mountain Range. Interim Report. 14 REDD+ stands for countries' efforts to reduce emissions from deforestation and forest degradation, and foster conservation, sustainable management of forests, and enhancement of forest carbon stocks. 15 Soussan and Sam (2010) estimate the economic value of carbon in the Cardamom Mountains at US$3.7 billion. Soussan, J., and C. Sam, 2010. The Values of Land Resources in the Cardamom Mountains of Cambodia, Final Report. In partnership with MAFF, Conservation International, and Asian Development Bank Phnom Penh, Cambodia 16 Forest Trends, 2015. Conversion Timber, Forest Monitoring, and Land-Use Governance in Cambodia. 17 Group for the Environment, Renewable Energy and Solidarity (GERES), 2015. Biomass Energy Consumption Patterns in Cambodia: Challenges and Opportunities. Available at http://www.eurocham-cambodia.org/uploads/85746-geres.pdf , accessed April 13, 2019.



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forests, biodiversity, and PAs come from encroachment for cultivation, illegal timber harvesting, and wildlife poaching. 18 The Tonle Sap floodplain also faces threats, including from uncontrolled developments in the outer floodplain and flooded forest for irrigation and rice cultivation. This, in turn, is leading to impacts on the productivity of agricultural and fisheries, food security and nutrition, tourism, and infrastructure.19 Climate change impacts such as extreme rainfall events, changes in rainfall patterns, drought, higher maximum temperatures, and frequency of hot days can also lead to several negative impacts on road access and infrastructure. Extreme rainfall events can lead to overtopping and wash away, increased seepage and infiltration into pavement and subgrade, as well as traffic hindrance and safety issues. Higher maximum temperatures, more frequent hot days, and drought can cause reduced pavement integrity, increased dust volume, and higher risks to wildfires and mudslides.

PAs’ Landscape Management

9. A significant proportion of the natural capital in the CMTS landscape is managed through the PA system.20 In particular, 62 percent of the Cardamom Mountains are under the PA system, as is the area immediately surrounding the Tonle Sap and the Tonle Sap Biosphere Reserve. 21 Forest cover in the Cardamom Mountains is still relatively high—about 72 percent, but it has decreased over the past three decades by about 1 million ha (28 percent of total forest area) mainly because of agricultural land encroachment and land encroachment for residential development in the northeastern and southern parts of the range. Under Cambodia’s Protected Areas Law, the Ministry of Environment (MoE) has jurisdiction in the PAs22 that cover the Cardamom Mountains and areas around the Tonle Sap. Within the CMTS landscape, there are 15 PAs, of which 7 will be targeted by the project as they are prioritized by the government for development and management activities.

Table 1. PAs Targeted in the Project Areas

PAs Benefitting from Project Activities Area (ha)

Central Cardamom National Park 401,313

Southern Cardamom National Park 410,392

Phnom Sankos Wildlife Sanctuary 333,750

Phnom Aural Wildlife Sanctuary 253,750

Tatai Wildlife Sanctuary 144,275

Tonle Sap Biosphere Multiple Use Area 316,250

Cardamom Biodiversity Conservation Corridor (BCC) 169,469

18 National REDD+ Strategy (2017) undertook an analysis (for the entire country) on drivers of degradation which helped identify the threats being faced in PAs. This (government led) analysis was used in the formulation of the government’s forest investment plan in 2018. 19 See Altman, Irit. "Transboundary threats in the Mekong basin: protecting a crucial fishery." (2017); Oeurng, C.; Cochrane, T.A.; Chung, S.; Kondolf, M.G.; Piman, T.; Arias, M.E. Assessing Climate Change Impacts on River Flows in the Tonle Sap Lake Basin, Cambodia. Water 2019, 11, 618. 20 As part of its governance reform, the RGC transferred all conservation areas from the Ministry of Agriculture, Forestry, and Fisheries (MAFF) to the MoE, doubling the area of PAs under the jurisdiction of the MoE (sub-decree 34, dated March 2016). Cambodia includes the following under its PA designation according to the Protected Areas Law of Cambodia of 2008: national park, wildlife sanctuary, protected landscape, multiple use area, Ramsar site, biosphere reserve, natural heritage site, and marine park. BCCs were added in 2017 as a type of PA. 21 The Tonle Sap Biosphere Reserve has been divided into three core areas: Prek Toal in Battambang Province and Boeng Tonle Chhmar and Stoeng Sen in Kampong Thom Province. The core areas function similar to national park areas and cover 42,300 ha. 22 PAs in the CMTS landscape fall under the categories of national parks, wildlife sanctuaries, multiple use areas, and BCCs. PAs are segmented into four zones: core, conservation, sustainable use, and community, with use guidance provided in the PA Law.


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Total 2,029,199

10. Cambodia’s ability to effectively manage the natural capital of its PAs is limited by weak management. Almost all the 15 PAs (except one) 23 lack zoning, demarcation, and official titling registration. In addition, there are inadequate resources (infrastructure, equipment, budgets, and staffing) for PA enforcement and forest monitoring to effectively address the most serious threats to PAs, including illegal logging, hunting, trapping, fishing, and land encroachment. There are also limited incentives for local rural communities who live in and around the PAs to sustainably manage them. While PAs provide security of land tenure and forest resource access, communities that live within PAs tend to have poorly developed entrepreneurial skills, and inadequate knowledge of and access to markets limiting their ability to harness the potential of NTFPs within the CMTS and related PAs.

11. To address the challenges relating to the management of PAs, the MoE developed a National Protected Area Strategic Management Plan (NPASMP) for 2017–2031 which provides strategic direction and targets for improving the management of PAs. The MoE plans to have 24 PAs zoned with management plans prepared by 2021 and increase this target to 46 by 2031.24 Technical guidelines for developing PA management plans were issued and an action plan for implementing the NPASMP was released in 2018. Various development partners (DPs), including Conservation International and the United States Forest Service, are working with the MoE to improve law enforcement capacity development using the Spatial Monitoring and Reporting Tool (SMART) patrolling.25

12. Implementation of the NPASMP, however, requires additional resources and investments to fill gaps in PA planning, management, enforcement, and financing across the CMTS landscape. Specifically, more consultation and investments are needed to enhance operationalization and ownership by local communities. Standardization of methods for zoning is needed, as are investments in decision support systems and SMART patrolling. Reaching a sustainable financing mechanism for PA management requires support for determining appropriate user and entrance fee levels and systems for collection and tracking.

Ecotourism Potential

13. Drawing from experiences around the world, the RGC is exploring ecotourism as a driver to strengthen management of its rich natural capital and boost economic prosperity.26 So far, the broader tourism sector in Cambodia contributes substantially to economic growth (12 percent of GDP) and job creation (1 million jobs directly supported), but the value captured per tourist has stagnated (US$585 in 2005 to US$655 in 2016) and length of stay has gradually declined.27 With global estimates of 20 percent

23 Peam Krasob has been zoned and a management plan approved by the MoE. 24 Targets for PA development are articulated in the RGC’s draft action plan for the NPASMP, 2017–2031. The MoE plans to update the draft action plan to include the target PAs for this project in the list of priority PAs for zoning and PA management plan development. The action plan is expected to be approved by the MoE Minister by December 2019. 25 SMART is a suite of best practices, including software applications and hardware aimed at helping PA and wildlife managers better monitor, evaluate, and adaptively manage patrolling activities. Conservation International and other non-government organizations (NGOs) have been implementing SMART patrolling with rangers in Cambodia. The United States Forest Service (USFS) has been working with the MoE on developing a standardized training and capacity-building program for all the MoE and provincial-level rangers linked to SMART. 26 Walter, P., & Sen, V. (2018). A geography of ecotourism in Cambodia: regions, patterns, and potentials. Asia Pacific Journal of Tourism Research, 23(3), 297-311. 27 2016 Annual Tourism Statistics Report.


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annual increase in ecotourists,28 and the increasing affluence of developing Asia with a strong affinity for ‘green’ travel and tourism, Cambodia is seeking to tap into this growing market by developing new experiences, attractions, and itineraries that build on natural assets.

14. With a captive tourism market focused on the Angkor temples, the MoE and the Ministry of Tourism (MoT) are now developing management policies, regulatory frameworks, strategies, and guidelines to expand ecotourism, including in the CMTS landscape. The two ministries developed a policy for ecotourism (approved in November 2018)29 which outlines the RGC’s plans to develop (a) both large- and small-scale ecotourism operations, (b) priority ecotourism areas which include the Cardamom Mountains, and (c) private sector participation in ecotourism. Prakas 30 for legalizing guidelines for ecotourism development in PAs are expected to be finalized by December 2019. A strategic plan to guide the development of ecotourism is expected to be approved by the MoE in June 2019. This plan includes the creation of ecotourism corridors (circuits) that link the main tourism gateways of Siem Reap and Phnom Penh to the natural asset base of the Cardamom Mountains and Tonle Sap, and the expansion of the hub-and-spoke model of tourism development that connect ecotourism sites.

15. PA ecotourism is currently limited, with barriers relating to inadequate governance, poor connectivity and related rural infrastructure, lack of enabling environment for private sector, and unclear contracting arrangements. Private sector engagement in ecotourism is still nascent and ad hoc in Cambodia. The absence of clear regulations and inadequate definitions and guidelines on ecotourism, combined with the lack of standardized agreements, has led to a varying quality of private enterprises across the CMTS landscape. It could also create disincentives by attracting short-sighted entrepreneurs or creating perverse incentives—potentially leading to degradation of the environmental services that the area provides. Current experiences in community-based ecotourism (CBET) in the CMTS have had some limited success with examples such as in Chipat and Chambok, which have been supported by Non-Government Organizations (NGOs). 31 32 Optimizing Cambodia’s ecotourism potential also lies in addressing its limited access infrastructure and connectivity. Specific investments are needed in access infrastructure, such as rehabilitating roads to improve the connectivity between ecotourism corridors/circuits and their links with selected ecotourism hubs and spokes in the CMTS landscape, as well as upgrading related rural infrastructure (for example, water, sewerage, and power). In addition, site-specific infrastructure for CBET (for example, signage; trails; waste collection; water, sanitation, and hygiene [WASH] facilities; shelters; and jetties). The lack of business and entrepreneurial skills in ecotourism products and services is also limiting the quality and range of ‘nature-based’ offerings in the CMTS landscape. Also, institutional capacity development related to identifying, prioritizing, and managing ecotourism development is needed at all administrative levels.

28 United Nations World Tourism Organization. http://www2.unwto.org/. Accessed March 1, 2019. 29 https://www.phnompenhpost.com/business/ecotourism-policy-draft-approved. 30 In Cambodia, Prakas is a regulation adopted by a minister (or the Governor of the National Bank for banking issues). The hierarchy of legal documents in Cambodia is as follows: Laws (Chhbab), Royal Decree (Reach-Kret), Sub-Decree (Anu-Kret), Decision (SorChor Nor), Regulation (Prakas), Circular (Sarachor)/Instruction (SechdeiNanoam), and Order (Deika). 31 Reimer, J. K., & Walter, P. (2013). How do you know it when you see it? Community-based ecotourism in the Cardamom Mountains of southwestern Cambodia. Tourism Management, 34, 122-132. 32 Lonn, P., Mizoue, N., Ota, T., Kajisa, T., & Yoshida, S. (2018). Evaluating the contribution of community-based ecotourism (CBET) to household income and livelihood changes: A case study of the chambok CBET program in Cambodia. Ecological Economics, 151, 62-69.

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Non-timber forest products

16. The RGC recognizes the strategic value of NTFPs in creating incentives for landscape restoration and conservation, especially in the Cardamom Mountains. As part of its PA management agenda, the MoE is promoting forest restoration linked to NTFPs covering about 6,900 ha in the sustainable use and community zones of PAs in the CMTS and the BCC.

17. In the Cardamom Mountains, there are several nascent NTFP value chains, including rattan, resin, bamboo, and agarwood, which are mostly exported in raw form. Strengthening their value chains has the prospect of increased value added from possible exports and supplementing rural incomes. In a recent analysis, commissioned by the World Bank, bamboo and cardamom value chains in the CMTS have

been identified as having the potential for further development and scale-up.33 Each of these value chains will require different strategies for their development and eventual management. With technical assistance (TA), the RGC will undertake in-depth analysis of these two NTFP value chains to determine the investments, market links and development, capacity building, and opportunities for strengthening and scaling up.

18. Currently, in Cambodia, the lack of support for NTFP development has limited the development of the sector and related value chains. The Protected Areas Law makes provisions for NTFP use in specific zones within PAs, while the NPASMP includes development of NTFPs as part of its strategic objective for expanding livelihood opportunities for local communities. However, there is a lack of government guidance on prioritization of the NTFP value chains, management of the NTFP resources, regulations for domestic and international trade of NTFPs, and private sector engagement in developing the NTFP value chains. In addition, the NTFP value chains are also constrained by the limited rural storage and processing infrastructure and equipment in the Cardamom Mountains area. Transport infrastructure to markets is also costly or limited at competitive prices, particularly for those in remote areas. Moreover, rural people have limited knowledge and skills on how to use processing equipment, meet quality standards, access markets, and manage enterprises.

C. Relevance to Higher Level Objectives

19. The project is in line with the Government’s vision and the main features of the Rectangular Strategy and the National Strategic Development Plan, which place high priority on the sustainable management and use of natural resources as the country continues to promote economic growth and poverty reduction. Together, they commit to ensuring (a) green cover, forest, and wildlife conservation; (b) the sustainability of fisheries resources; and (c) the sustainability of ecosystems. In addition, the Industrial Development Policy, 2015–2025, which serves as a guide for the promotion of Cambodia’s industrial development to help maintain sustainable and inclusive high economic growth, calls for a focus

33 Prioritization analysis was conducted by Nuppun International (Cambodian firm) on behalf of the Government to identify NTFPs for value chain development. A short list of NTFPs including bamboo, cardamom, rattan, mushroom, and honey was developed after consultation with private sector engaged in NTFP and national- and provincial-level government officials. This was further refined with analysis that considered the following criteria: availability of markets for products generated, availability and seasonality of the NTFP resources in the CMTS, environmental risks associated with the NTFP value chain (harvesting and product development), market demand, earning potential (based on current income from NTFPs), and potential for community involvement (important for job creation).


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on some priority sectors, including value-added products from natural resource processing, cultural handicrafts, and various supporting industries for agriculture, tourism, and textile sectors.

20. The project will also help Cambodia in achieving the Sustainable Development Goals, relating to (a) life on land, (b) climate action, (c) responsible consumption and production, and (d) no poverty. Specific targets under these goals that will be supported include (a) achieving the sustainable management and efficient use of natural resources; (b) ensuring the conservation, restoration, and sustainable use of freshwater ecosystems and their services; (c) promoting the sustainable management of forests and halting deforestation; (d) strengthening resilience and adaptive capacity to climate-related hazards and natural disasters; and (e) developing and implementing tools to monitor sustainable development impacts for sustainable tourism that creates jobs and promotes local culture and products.

21. The project responds directly to the focus areas for development identified in the Systematic Country Diagnostic (SCD) (Report No. 115189-KH) and the forthcoming Country Partnership Framework (CPF), covering the period FY19-23, that is expected to be discussed on May 30, 2019. The World Bank Group prepared an SCD to help identify opportunities and challenges, as well as priority development areas for ensuring strong, inclusive, and sustainable growth and shared prosperity in Cambodia going forward. Building on this, the CPF includes three focus areas. The two focus areas to which the proposed project will directly respond are (a) promoting state efficiency and boosting private sector development and (b) improving agriculture and strengthening sustainable use of natural resources.

22. The project directly promotes the World Bank’s twin goals and contributes to key longer-term objectives. The project will contribute to the overall goal of decreasing rural poverty; enhancing private sector development and the competitiveness of rural and women-owned ecotourism and NTFP enterprises; and increasing the resilience of the agriculture, fisheries, and tourism sectors as well as their supporting infrastructure investments. In this way, the project directly responds to the World Bank’s overarching twin goals of eradicating extreme poverty and promoting shared prosperity.

23. The project will promote investments, both at the private and public level, which will decrease the country’s vulnerability to climate variability. These activities will contribute to the objectives of Cambodia’s NDCs by supporting priority actions, including the target of ‘increasing the forest cover to 60 percent of national land area by 2030’ and ‘promoting and improving the adaptive capacity of communities through restoring the natural ecology system to respond to climate change’. In addition, the project will make important contributions toward gender-equitable ecotourism and NTFP-based livelihoods with specific attention to mainstreaming gender into value chains and supporting several activities targeting women, including training, capacity building, skills development, and increasing their voice and participation in community and women’s organizations.

24. Finally, the project follows the Maximizing Finance for Development (MFD) framework with support aimed to address binding constraints (for example, physical, operational, regulatory, or enabling environment) in a way that is expected to unlock private solutions where appropriate in ecotourism and NTFPs in the CMTS region of Cambodia. These included a weak policy, regulatory, and institutional framework, including weaknesses relating to PA management, inadequate zoning and demarcation, need for ecotourism guidelines and clear concession/contract modalities, absence of policies relating to the NTFP value chains, and so on. In addition, other barriers relate to overreliance on government funding, inadequate financing for forest monitoring and enforcement, limited implementation of public-private partnership (PPP) models, and investor risk perception relating to ecotourism and NTFP investments. On


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the supply side, these include: low quality and diversity of ecotourism products and services; weak industry-specific skills and innovation; and poor market understanding, links, and promotion. Furthermore, the limitations of connectivity and other critical rural infrastructure is seen as an impediment to the expansion of ecotourism in secondary sites, away from the main commercial tourism hubs.

25. The RGC has clear and credible plans for expanding private sector solutions in both the ecotourism and NTFP value chains, focused on the CMTS. Through this project, specific activities will aim at supporting improvements in governance, management, and regulations relating to the target PAs. This coupled with investments in connectivity, ecotourism/NTFP infrastructure, and value addition are expected to stimulate private sector investments. It is expected that private capital and financing will begin to flow to the ecotourism sector before project closing.

II. PROJECT DESCRIPTION

A. Project Development Objective

PDO Statement

26. Project Development Objective (PDO). The PDO is to improve protected areas (PAs) management, and to promote ecotourism opportunities and non-timber forest product (NTFP) value chains in the Cardamom Mountains-Tonle Sap landscape.

PDO-level indicators

27. The achievement of the PDO will be measured through the following indicators:

(a) Protected areas under improved management (hectare)

(b) Visitors in selected community-based ecotourism sites (number)

(c) Community groups with an increase of one or more on index of natural resources value addition (percentage)

(d) Proportion of beneficiaries of business development services (BDS) that are women (percentage)

(e) Targeted community members satisfied with benefits from project (percentage)


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B. Project Components

28. The project is piloting a landscape approach in Cambodia, within the CMTS, and is undertaking strategic investments that are aligned with the RGC’s development plans, in targeted areas within this landscape. The project aims to improve the sustainability of economic growth and ecosystem services across the landscape. The ecotourism and NTFP value chains are strategic activities for economic growth and sustaining/improving ecosystem services in the CMTS landscape. 34 The Cambodia Sustainable Landscape and Ecotourism Project comprises the following five components: (1) Strengthen Capacity for PAs Landscape Planning and Management; (2) Strengthen Opportunities for Ecotourism and NTFP Value Chains; (3) Improve Access and Connectivity; (4) Project Management, Coordination, and Monitoring and Evaluation; and (5) Contingent Emergency Response.

29. The activities will address a combination of (a) strengthening the conservation and management of natural resources in the forest landscape with zonation, boundary demarcation, and land registration of PAs and development of PA management plans that include subsidiary plans for ecotourism and NTFP development; (b) strengthening the enabling policy framework for the ecotourism and NTFP value chain development and private sector participation; (c) enhancing communities’ participation in the use and management of forest resources with the development of community protected area (CPA) management plans linked to ecotourism and/or NTFP development; and (d) making strategic infrastructure investments to improve connectivity to ecotourism sites in the CMTS landscape and strengthen the NTFP value chains.

30. Within the CMTS landscape, seven PAs have been identified for development and management activities in this project, based on government priority and relative importance. The Government has prioritized the Tonle Sap Biosphere Multiple Use Area, Phnom Sankos, Phnom Aural, Tatai Wildlife Sanctuaries, Central Cardamom Mountains and Southern Cardamom Mountains National Parks, and the Cardamom BCC for development by 2022 as part of its NPASMP. Project activities relating to ecotourism and NTFP value chains have also focused on these priority PAs.

Component 1. Strengthen Capacity for PAs Landscape Planning and Management (total estimated cost US$6.79 million; to be fully financed by IDA Credit)

31. Because large forest areas have been transferred from the Ministry of Agriculture, Forestry, and Fisheries (MAFF) to the MoE, effective April 2016,35 overall, good progress has been made in managing PAs, but challenges still remain to effectively managing them including:

• Incomplete zoning of PAs;

• Lack of MoE-approved management plans;

• Inadequate capacities, specifically at the local level, among staff of the MoE and Provincial Departments of Environment (PDoEs) for PA planning and law enforcement in PAs;

• Inadequate system for data and information sharing to support PA Law enforcement;

• Ineffective cross-ministerial coordination; and

• An inadequate revenue management system for managing PAs revenues to provide sustainable finance to support PAs management.


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32. This component will help address these issues through strategic investments in information and decision support systems for PA planning and management and that support PA Law enforcement; strategy development, training, logistical support, and equipment for PA Law enforcement; PA zoning, boundary demarcation, and development of management plans; and the PAs’ revenue management model for Cambodia.

Subcomponent 1.1: Information Systems and Decision Support (ISDS)

33. The project will support development of an ISDS that will help bring together and analyze relevant information to support decision making for the protection and management of PA and landscape planning in the CMTS.36 The ISDS will be developed as a cloud-based geospatial platform that can integrate data and information that are critical for PA planning and management (for example, biodiversity and land use spatial information) and systematically organize information collected by PDoE, rangers, and communities (for example, patrolling reports, illegal activities, and observations) that will support better planning, coordinating, and implementing PA enforcement. The ISDS is aligned with the MoE’s strategy for Geospatial Data and Information Management and will build on the existing work supported by the United Nations Development Programme (UNDP) and Wildlife Conservation Society (WCS) to develop a decision support system for zoning of PAs.37 To support this component, the MoE will establish an intersectoral working group for the ISDS, by June 2019. The project will finance:

(a) Technical support for the MoE to develop and implement the ISDS;

(b) Hardware and software needed for implementation of ISDS; and

(c) Training for the MoE staff to operate and manage the ISDS and for stakeholders (PDoE, communities, DPs, NGOs) to use the ISDS.

Subcomponent 1.2: PAs Landscape Planning, Management, and Enforcement

34. PAs’ planning and management. This project will support the RGC in developing PAs and PAs’ and CPAs’ management plans in close cooperation with subnational authorities, NGOs, and local communities.38 The Government's NPASMP includes a strategic objective on the development of PAs, which this subcomponent will support.

34 Management of fisheries in the Tonle Sap Lake is recognized as an important component of sustainable landscape management of the Cardamom Mountains. Tonle Sap Lake landscape and activities supporting the improved management of lake fisheries are covered under the European Union grant. 35 2016 Sub-decree on the Transfer of Protected Forest, Forest Conservation and Production Forest Areas, and ELCs. 36 Support to spatial landscape planning in the CMTS is important given the dependence of rice fields in Pursat and Battambang Provinces and fisheries in the Tonle Sap Lake on hydrological and sediment regulation ecosystem services provided by forests in the Cardamom Mountains. 37 MoE. 2018. Strategy for Environmental Geospatial Data and Information Management of Ministry of Environment, 2018–2022. 38 The Protected Areas Law and draft Environmental Code provide guidance on the types of plans that can constitute landscape plans in Cambodia. These include community PA plans, community forest area plans, commercial activity management plans, and river basin plans. Plans will be developed following guidance provided in the MoE’s Technical Guideline for Developing Management Plan for Protected Areas in the Kingdom of Cambodia of 2018.


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(a) The project will support the MoE in enhancing the guidelines for (i) zoning PAs and (ii) developing CPA management plans. To support this, the MoE will also identify and request the additional budget needed for monitoring the implementation of PA and CPA management plans after they are developed (planned for 2020).

(b) The project will undertake different activities in the PAs of the CMTS to support zoning, PA management plan development, boundary demarcation, and land registration of PAs’ zoned boundaries (table 2). Specifically,

• The project will support activities in different types of PAs: national PAs, wildlife sanctuaries, multiple use areas, and BCC. The Protected Areas Law provides guidance on the types of activities that are allowed in each PA, and therefore this has an influence on how these different types of PAs are zoned and managed.39

• Zoning will be undertaken in all PAs of the CMTS except the Cardamom BCC.40 A preliminary map of zones was developed as part of a joint exercise between Wildlife Alliance and the MoE. This activity will build on the preliminary zone map, by integrating additional biophysical spatial information through the ISDS and undertaking additional consultations with stakeholders in PAs. Wildlife Alliance and Conservation International are working in Southern Cardamom National Park, Central Cardamom National Park, and Tatai Wildlife Sanctuary and have already held consultations with communities on zoning.

• PA management plans will be developed for Southern Cardamom National Park, Central Cardamom National Park, Phnom Sankos Wildlife Sanctuary, Phnom Aural Wildlife Sanctuary, Tatai Wildlife Sanctuary, Tonle Sap Multiple Use Area, and Cardamom BCC. These PAs were selected for development of management plans for several strategic reasons: (i) these PAs together comprise 81 percent of the CMTS PAs land area, and bringing these areas under the MoE-approved management plans will be a significant step toward improving management of PAs there and (ii) the work of DPs in these PAs have helped with the readiness of communities and stakeholders in these PAs for PA management planning.

39 National park. A natural area in land and/or water territories, which is established to protect the area’s role or roles in the ecosystem for the benefit of people of all generations; limit the use that may harm or destroy biological resources, natural resources, cultural resources, and functions/roles of the area in relation to the objectives of the established area; serve as bases for recreation, visits, education, research, and belief, provided that these activities do not cause threats to the natural environment and local culture. Wildlife sanctuary. An area in land and/or water territories, which requires active interventions for management purposes to ensure maintenance of habitats and/or meet necessary conditions for any species of animals or plants. Multiple use area. An area in land and/or water territories, which is rich in natural resources that are intact and require management activities to ensure long-term protection and maintenance of biological resources and ecosystem. In the meantime, it provides natural products and services for use to meet the community needs. 40 BCCs are not zoned.


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Table 2. Landscape Planning Activities Supported by the Project

Targeted PAs Activity Supported by the Project

Zoning PA Management

Plans

Boundary Demarcation

Land Registration

Central Cardamom X X

Southern Cardamom X X

Tatai X X X

Phnom Sankos X X X X

Phnom Aural X X X X

Cardamom BCC X

Tonle Sap Biosphere Multiple Use Area X X

Other PAs in CMTS X

Notes: 1. X denotes activities that will be supported by the project for the PAs. 2. Management plan, boundary demarcation, and land registration were prioritized for selected PAs based on

discussions with the Government and several nongovernment stakeholders including those that work in the CMTS.

• Boundary demarcation will be undertaken in Tatai, Phnom Sankos, and Phnom Aural Wildlife Sanctuaries. The MoE has prioritized these PAs for boundary demarcation given their importance as wildlife sanctuaries and the need to prevent encroachment and destruction/disturbance of habitats.

• Land registration of zone boundaries will be undertaken in Phnom Sankos and Phnom Aural Wildlife Sanctuaries. The MoE has prioritized land registration for these areas given the threats of land encroachment and habitat disturbance and destruction already experienced there.

(c) The project will also finance processes for zoning and management plan development for priority CPAs that are within the target PAs. A list including 34 CPAs in the target PAs has been compiled, and CPAs for project intervention will be determined based on their readiness. Criteria for readiness are drawn from the MoE’s eight-step CPA development process and will include (i) CPA established according to the MoE CPA guidelines;41 (ii) CPA management committee approved by the Commune Sangkat, and (iii) CPA initiated boundary demarcation and bylaw development.

(d) Project financing will support training for the MoE, local governments, rangers, and other stakeholders on PA development, and development of the various plans, and coordinating and monitoring implementation of these plans.

35. PAs enforcement. The project will finance TA to the RGC for developing and implementing a PA enforcement framework which will include the processes, roles and responsibilities, and institutional arrangements for PA enforcement. It will develop an overall law enforcement strategy that will guide and coordinate actions in all PAs and develop priroties and action plans. An accompanying toolkit will be developed and will include guidance for ranger patrolling; use of SMART approaches;42 data gathering

41 MoE. 2017. Guideline on Procedure and Process for Community Protected Area Establishment.


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linked to the ISDS; collaborating with law enforcement including the judicial system; using drone, satellite, and remote sensing imagery; and telecommunications in forest monitoring.

36. The strategy and toolkit will be developed through a participatory process with government agencies and NGO partners such as Wildlife Alliance and Conservation International that support ranger patrolling in the CMTS. Equipment for forest patrolling and monitoring and rehabilitation of ranger centers in the CMTS will be supported by the project. The project will also support training of the MoE, local governments, forest communities, and other stakeholders on forest monitoring and enforcement, and logistical coordination for provincial governments in law enforcement. To accompany this strengthening of PA enforcement, the MoE will determine the number of additional rangers needed for each of the targeted PAs and additional 2020 budget needed.

37. Sustainable finance and revenue management. Management of PAs are challenged by lack of adequate funding for planning, capacity development, monitoring, and engagement with communities. Many activities are currently co-funded by international NGOs and other partners which is not a sustainable concept in the medium term. The collection of ecotourism fees from tourists will contribute to the financial sustainability of the targeted PAs. Fees are currently applied for tourists visiting selected PAs (for example, Kirirom PA), but there are no clear policies and guidelines yet on adequate fees, collection and management of revenues, and an agreement on the use of the fees. International best practice shows that benefit-sharing arrangements need to be developed to determine revenue allocations from tourism activities.

38. Beyond tourism fees, the project will analyze several other financing opportunities (such as Payment for Environmental Services [PES] and REDD+) and will promote studies on valuation of hydrological ecosystem services in the context of natural accounting (Wealth Accounting and the Valuation of Ecosystem Services [WAVES]). The project will also enhance, design, and support the Environmental and Social Fund created by the MoE.

39. The project will support the design and implementation of an FM framework for the CMTS PAs. Specifically,

(a) Analytical work to support the RGC to assess current practices of fee collection and handling, analyze different financial models, learn from best practices, and design an integrated FM system for the Environmental and Social Fund to receive and manage fees and other potential resources from REDD+ and PES;

(b) Convening of multistakeholder discussions on financing mechanisms (such as PES, REDD+, and tourism fees). Valuation of hydrological ecosystem services and the CMTS is being undertaken with support from WAVES to prepare technical underpinning for PES; and

(c) Workshops and hands-on training for capacity development at the subnational and national levels to manage fee collection and management of benefit sharing.

42 SMART is a suite of best practices aimed at helping PA and wildlife managers to better monitor, evaluate, and adaptively manage patrolling activities. SMART is being used in selected PAs in Cambodia.


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Component 2. Strengthen Opportunities for Ecotourism and NTFP Value Chains (total estimated cost US$16.75 million; to be fully financed by IDA Credit).

40. This component aims to finance critical investments as well as to strengthen the enabling environment for expanding opportunities for ecotourism and NTFP value chains in Cambodia. A specific focus within this (and Component 3) will be to enhance and strengthen the enabling environment for private sector engagement, as well as invest in critical infrastructures (connectivity, visitor centers, and so on). The resulting improvements in governance, management, and regulations relating to the target areas, coupled with investments in connectivity, ecotourism/NTFP infrastructure, and value addition, are expected to stimulate private sector investments.

Subcomponent 2.1: Strengthen Opportunities for Ecotourism Development

41. Central to optimizing Cambodia’s ecotourism potential is establishing links between the main tourism gateways of Siem Reap and Phnom Penh to the natural asset base of the CMTS through a ‘hub-and-spoke’ model of tourism development. The hub-and-spoke model, first, enhances access to and mobility in and around the urban centers, or hubs, and then develops the ‘spokes’ or ecotourism sites closely linked to the hubs. This approach establishes new itineraries for tourists in a way that disperses tourism-related socioeconomic benefits to communities near ecotourism locations.

42. Four ‘hubs’ for ecotourism development have been identified through geospatial analysis and stakeholder consultation. Geospatial analysis was used to determine spatial clusters of potential sites for ecotourism development, existing ecotourism development, CPAs, and community groups. The four hubs identified are in Koh Kong, Siem Reap, Pursat, and Kampong Speu. Initial criteria have been developed to help identify and prioritize ecotourism locations for potential financing from this project. These criteria include accessibility, attractiveness, land use/tenure, sensitivity of location, access to services, existing ecotourism sites, socioeconomic conditions, market demand, biodiversity, and diversity of ecotourism offering.

Improving Enabling Environment for Ecotourism

43. TA will be provided to develop a framework for the improvement, coordination, and formalization of the existing ecotourism management contracts/agreements and the creation of national guidelines and best practices, as well as to strengthen the enabling environment for SME growth. This will include support to assist the RGC to design clear and consistent ‘ecotourism management agreement’ modalities and help toward the finalization of the MoE policy guidelines (prakas) for ecotourism development in PAs (expected to be approved by the minister by December 2019) and then in its implementation. Effectively, the project will help the RGC apply these guidelines (including on management, monitoring, benefit-sharing mechanisms, and so on) in the various ecotourism sites (selected using standardized criteria) within PAs.

44. The project will also support the development of BDS within the multiple use centers, which comprise training and technical guidance on business development for ecotourism and NTFP value chain enterprises. These BDSs will help fill gaps in entrepreneurial skills and business advice and will promote competitiveness among the private sector and community ecotourism groups. The facilities will provide training on business development needs including market identification and marketing and product development and management and will assist the private sector and community groups in preparing


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robust business plans. The BDS will include targeted services for women entrepreneurs to encourage their participation in ecotourism and related value chains.

Ecotourism Infrastructure

45. This component will be used to finance investments related to establishing/rehabilitating ecotourism infrastructure in the target landscapes. As ecotourism is an activity based on the natural environment, the supporting infrastructure must be designed to minimize human impacts and be in harmony with the landscape. The type and extent of infrastructure will depend upon the area’s natural and cultural attributes and sensitivity as well as the style of ecotourism encouraged. Facilities will vary according to the style of ecotourism desired and the land tenure. In each ecotourism ‘hub and spoke’, potential activities will include developing (a) appropriate parking facilities, food stalls, solid waste management, shops, and kiosks selling handicrafts in the community adjacent to site; (b) visitor information centers; and (c) walking trails, observation towers, boardwalks, and interpretive displays as needed at the ecotourism sites.

46. For the CBET sites, additional financing will be available for (a) community-managed lodging (eco-lodges), (b) potential handicraft facility and related equipment, and (c) other environmentally appropriate facilities around the site. Communities/CPAs can also use funds for equipment (for example, tents, radios) and information and advertisement products.

47. Initial discussions have pointed to two potential ecotourism hub-and-spoke areas—one at Siem Reap and a second around Koh Kong. With Siem Reap as the hub, ‘spokes’ would be developed/enhanced to several nearby ecotourism sites, thus expanding the range of offerings that showcase the natural capital. These include areas such as the Prek Toal Bird Sanctuary, several sites within the Kulen Mountains National Park, and across and around the Tonle Sap. Potential investments include the following:

• Floating/lake-side interpretation center with interactive displays relating to the history, ecology, lake biodiversity, communities, and heritage of the Tonle Sap

• Improvement of nearby ecotourism facilities (accommodation, catering, and services)

• Improvement of lake circuits to visit floating villages and upgrading of lake cruise facilities

• Development of trails between Siem Reap and Tonle Sap relating to specialized ecotourism such as mountain biking, photo hunting, and special interest visitors (bird-watching and wildlife)

48. In the Koh Kong Ecotourism Hub, several offerings will be extended to the Cardamom Mountains, including potential options for private sector-managed ecotourism. Connectivity will also take advantage of a planned private international airport (Dara Sakor) to diversify current ecotourism attractions. Some examples include

• Interactive center showcasing the biodiversity, ecosystems, and communities of the Cardamom Mountains;

• Upgrading/improving of shelters and demarcated trails for specialized ecotourism, such as mountain biking, photo hunting, and special interest visitors (bird-watching and wildlife);


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• Facilities at ecotourism locations including parking, water sanitation, handicraft and food stalls, and so on

• Forest canopy walkways, viewpoints, and observation stations; and

• Safety infrastructure at waterfalls and cliff/overlook-sites.

Subcomponent 2.2: Promotion of NTFP Value Chains

49. The development of NTFP value chains has the potential for supporting sustainable income generation for local communities, but it must be well developed and managed to prevent overexploitation and create jobs and income in the project areas. Opportunities range from extraction of resins and rattan to collection of fruits, cardamom, and medicinal plants to processing of vegetable oils to sustainable management of agarwood and bamboo. Although, some products have interesting market perspectives, several policies or incentives are yet poorly designed (fees, export taxes, management plans, or licenses), which are considered prohibitive for formal businesses to engage in NTFP at a large scale.

50. Under Component 1, the project will support the CPAs and PAs management plans (including NTFP and restoration plans) which will help orient economic activities within community areas in the target PAs. Priority for project interventions will be those CPAs that are closely located to ecotourism activities. The project will prioritize policy reforms, enabling environment for SMEs, and will work with different ministries to promote a more comprehensive enabling environment for NTFPs in general but will focus on a few more promising value chains over the lifetime of the project.

51. The bamboo and cardamom value chains in the CMTS have been identified through analysis as having potential for further development and scale-up. Each of these two value chains will require different strategies for their development and eventual management. The RGC, with TA support from the World Bank, will undertake in-depth analysis of bamboo and cardamom value chains to determine the investments needed, market links and development, capacity building, and opportunities to strengthen and scale up bamboo and cardamom value chains.

52. The project will also finance small-scale investments for activities related to sustainable harvesting, cultivation, processing, and marketing of NTFPs with the overall objective to expand livelihood opportunities for local communities in the CPAs within the targeted PAs. Support will also be provided to enhance opportunities for the private sector in select value chains and increase the income-earning opportunities for communities participating in the value chains and linked to the ecotourism industry. The types of investments that will be promoted and supported include provision of processing equipment (for example, hand-powered equipment), development including rehabilitation of facilities (for example, processing factories and storage) to meet sanitation standards and to be fit for purpose, and packaging/branding equipment.

Component 3: Improve Access and Connectivity (total estimated cost US$23.86 million; to be fully financed by IDA Credit)

53. Rural roads in Cambodia lack adequate all-weather road surfaces, width, and capacity, and they are not adequate to accommodate the growing need for goods and people transport. Over 80 percent of rural roads in Cambodia are still receiving laterite or gravel surface covers, causing significant


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problems during the wet season, because of road deformation and destruction as well as high operation and management costs, and during dry season because of major dust development.

54. Extending ecotourism opportunities in the CMTS will require enhancing connectivity infrastructure to allow for an increase in visitor numbers from the identified gateways. These improvements are aimed at increased, sustainable visitor volume and reduced seasonality because of all-weather access. Specific investments may include the rehabilitation of rural roads and other related rural infrastructure to help in the development of ecotourism corridors and links with main markets.

55. By adding last-mile access and support infrastructure, visitors will be offered public domain facilities that enable an appreciation of the destination. Combined with branded signage, this will help create a sense of place and comprises the (free) public domain side of a destination. The project will finance the upgrading and rehabilitation of select rural roads to all-season and climate-resilient standards, road signage, and small-scale sanitation infrastructure. Cost-effective road design will be used, identifying where all-weather access is needed for the most critical road stretches, while less critical links will be sealed with concrete, accepting that they may be inundated for a few weeks each year but will not be washed away. Opportunities will also be explored to use the rural road network to strengthen flood control measures, by enhancing drainage canals and culverts and possibly raising the road levels to use as embankments. Sound engineering designs, sufficient drainage, and greening approaches will be applied to enhance the resilience of the road structures in these specific prioritized locations. MRD will be responsible for implementation of Component 3 and following the fiduciary requirements.

Component 4. Project Management, Coordination, Monitoring and Evaluation (total estimated cost US$5.76 million; US$3.26 to be financed by IDA Credit)

56. The MoE will be the main executing agency (EA) for implementation of all three components and overall project management/coordination arrangements. The MoE will closely cooperate with the MRD as the implementing partner that will take responsibility for the construction of rural access roads infrastructure. Support will be provided to establish an MoE-led project coordination and implementation unit. A high-level Project Steering Committee (PSC) will be formed to advise on and deal with emerging cross-sectoral issues. Details are elaborated in the Project Implementation Manual (PIM).

57. Component 4 will carry out the day-to-day implementation, coordination, and management of project activities including (a) planning and execution, FM, procurement, environmental and social safeguards management, monitoring, reporting, and evaluation and (b) internal and external audits for the project.

Component 5. Contingent Emergency Response (US$0 million)

58. The objective of the contingent emergency response component (CERC), with a provisional zero allocation, is to allow for the reallocation of financing to provide immediate response to an eligible crisis or emergency, when/if needed. An Emergency Response Manual (ERM) has been developed as part of the PIM, and provides details of streamlined FM, procurement, safeguard, and any other necessary implementation arrangements. In the event the component is triggered, the Results Framework will be revised through formal restructuring to include appropriate indicators related to the emergency response activities. Component 5 has no allocation and no financing unless an emergency is declared.


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The proceeds of the MoE or MRD will be used from their respective component budget allocation in the event that the CERC is triggered by the respective implementing agencies (IAs).

Project Cost and Financing

59. The lending instrument will be an Investment Project Financing (IPF) implemented over a period of about 6 years. The total estimated project cost is US$53.16 million, including price and physical contingencies. An IDA credit financing of the equivalent to US$50.66 million will be provided. The Government’s support in form of counterpart financing will amount to US$2.5 million including in-kind contributions, the use of office space, staff costs, utilities expenses, and costs required for undertaking land registration in the prioritized PAs.

Table 3. Breakdown of Project Cost by Component

Project Components Project Cost (US$, millions)

IDA Financing (US$, millions)

% IDA Financing

Counterpart Funding

% Counterpart

Financing 1. Strengthen Capacity for PAs Landscape Planning and Management

6.79 6.79 100 — —

2. Strengthen Opportunities for Ecotourism and NTFP Value Chains

16.75 16.75 100 — —

3. Improve Access and Connectivity

23.86 23.86 100

4. Project Management, Coordination, Monitoring and Evaluation

5.76 3.26 57 2.50 43

5. Contingent Emergency Response

0.00 — — — —

Total Project Costs 53.16 50.66 95 2.50 5

60. The Cambodia Sustainable Landscapes and Ecotourism Project is expected to be complemented by a Global Environment Facility (GEF) 7 grant (likely to be processed as an Additional Financing in FY20). The estimated amount of GEF (grant) financing is expected to be US$4.8 million, drawn from Cambodia’s GEF STAR allocation. GEF funds would finance the incremental costs of achieving global benefits in terms of increased biodiversity protection, reduced land degradation, strengthened climate change resilience, and contribution to climate change mitigation. Specifically, GEF 7 resources are expected to fund activities in the landscape targeted by the IDA project that reduce land degradation and protect important terrestrial habitats, including reducing deforestation. The World Bank, acting as implementing agency of the GEF, coordinate with UNDP, Conservation International, Wildlife Alliance, and Flora and Fauna International (FFI) in providing support for the implementation of activities.

C. Project Beneficiaries

61. Geographic targeting. The project area will cover selected parts of seven provinces located in the CMTS Landscape in Cambodia—Pursat, Koh Kong, Battambang, Kampong Speu, Kampong Thom, Siem Reap, and Kampong Chhnang, with project activities focused in Tonle Sap Biosphere Multiple Use


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Area; Phnom Sankos, Phnom Aural, and Tatai Wildlife Sanctuaries; Central Cardamom Mountains and Southern Cardamom Mountains National Parks; and the Cardamom BCC.

62. Beneficiary targeting. The project’s direct beneficiaries will be approximately 25,000 people (or 5,200 households) from local communities within the project area who will benefit from both the economic opportunities and ecosystem services supported and sustained through the project’s investments. The project engages with communities at different levels to support improvement of their livelihoods and at the same time collaborate with the sustainable development objectives of PAs. These include communities involved in CBET activities who will benefit from investments in site-specific infrastructure, equipment, and skills development and communities involved in select NTFPs who will benefit from investments in value chain development (infrastructure, equipment, skills, and capacity development).

63. In addition to community groups, private enterprises, including ecotourism operators and NTFP enterprises that add value through processing and marketing will benefit from project investments. National and local governments will benefit from capacity building and a strengthened decision support system for landscape planning, management, and monitoring. Indirect beneficiaries include additional local households and enterprises who will benefit from improved infrastructure and the sustainable management of natural resources, such as water and forests. At the global level, the population will benefit from public goods provision of reduced greenhouse gas (GHG) emissions, improved hydrological services, and restored habitats for biodiversity.

D. Results Chain

64. The project is developed along a Theory of Change (figure 2) that serves to address a select number of challenges faced by the Government and aligned with their natural resource management (NRM) and related development objectives. The Theory of Change rests on two critical assumptions. First, by improving PA management, the Government’s ability to enforce the law and prevent illegal activities is enhanced. Second, by creating conservation-compatible economic opportunities (ecotourism and NTFP value chains) the illegal pressure and encroachment on PAs and forest areas are reduced.

65. The logic behind the Theory of Change is that with strengthened management of PAs and improvements in ecotourism opportunities and NTFP value chains, there will be increased incentives for NRM, diversification of incomes toward conservation compatible livelihoods, improved value addition (including export potential), and increased revenues from ecotourism. Sustainability will be ensured by supporting critical activities relating to PA planning, management, enforcement, and financing. Additionally, the activities aimed at improving the enabling environment and critical infrastructure support will help attract the private sector and improve community-based opportunities.

66. More details can be found in the Results Framework (section VII).


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Figure 2. Theory of Change


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E. Rationale for Bank Involvement and Role of Partners

67. Rationale for World Bank involvement. This proposed Sustainable Landscape and Ecotourism Project aims to complement (and add value to) other projects and advisory services supported by the World Bank. Geographical convergence, with the World Bank-supported Agricultural Diversification Project, will provide an opportunity to synergize interventions. Specifically, ensuring the sustainability of the watershed in the CMTS will benefit agricultural areas downstream. In addition, project activities relating to rural roads rehabilitation will complement similar climate-resilient rural roads being financed under the Cambodia Disaster Risk Management Project. Successful existing approaches (including in the ecotourism and NTFP value chains) will be scaled up to broaden impacts. The project will hence contribute directly and indirectly to the Government’s broader agenda relating to NRM.

68. The World Bank brings global expertise, financial and technical knowledge, and experience in landscape-level investments, building on convening power, and the objective to leverage private sector to support NRM, ecotourism, biodiversity, and climate change. The World Bank’s experiences with landscape interventions (for example in Ethiopia, Mozambique, and Indonesia) show that there is a strong rationale for public sector financial support to strengthen the regulatory environment, enhance basic connectivity infrastructure, ensure community links, reduce risks for involved stakeholders, and stimulate additional private investments in line with the MFD principles.

69. Role of partners. The project has already made considerable efforts to coordinate with relevant DPs and other public and private sector stakeholders throughout preparation. The project activities will build on existing synergies and continue (a) supporting ongoing efforts to strengthen the Government’s information and decision support systems for landscape planning (such as by UNDP); sustainably manage BCCs (such as by Asian Development Bank); and PA zoning (such as by the International Union for Conservation of Nature);43 (b) coordinating with and scaling up successful interventions of conservation organizations (such as Conservation International, FFI, and Wildlife Alliance) working in the targeted landscape on CPAs, NTFPs, and ecotourism; (c) facilitating an enabling environment for future investments by private enterprises; and (d) complementing indirectly related ongoing projects in the targeted area that focus on agriculture, water resources, fisheries, and irrigation. Within the Government, the project will also help strengthen coordination, spatial and policy synergies, and communication across key national government ministries, including the Ministry of Economy and Finance (MEF), MoE, MRD, MoT, and MAFF.

F. Lessons Learned and Reflected in the Project Design

70. The project builds on international experience in relation to sustainable landscape management, NRM, and ecotourism. Given the World Bank’s recent re-engagement in these areas in Cambodia, lessons are drawn mainly from similar World Bank projects in other countries such as Mozambique and Madagascar, along with NRM projects and TA in Cambodia (financed by other DPs) as

43 The Asian Development Bank’s BCC Project has four outputs: (a) institutions and communities strengthened for biodiversity corridor management; (b) biodiversity corridors restored, protected, and maintained; (c) livelihood improvement and small-scale infrastructure support in villages; and (d) project management and support services provided. The biodiversity corridors in the BCC Project include provinces (Mondulkiri and Koh Kong).


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well as recent publications on sustainable tourism development,44 including two sector assessments by the World Bank.45 Key lessons include the following:

(a) Continued and high-level political commitment to conservation is needed to move the agenda forward. Government leadership is needed to foster intersectoral collaboration, enforce existing regulations, and zone and demarcate land use and tenure. Nongovernmental and private sector entities engaged in conservation should also be encouraged to participate in public discussions. The project has the MoE as the lead EA, with oversight and coordination provided by the MEF, demonstrating strong high-level commitment from the RGC.

(b) A range of income-generating opportunities is needed to ensure the sustainable management of natural resources. Not all areas within PAs have high ecotourism potential, and yet the surrounding communities expect direct benefits from PAs and are likely to support conservation goals more readily when they experience benefits directed linked to PA. Within this project, while ecotourism opportunities will be supported in select areas with high potential, other income-generating activities such as the production and processing of specific NTFPs will be promoted in other areas.

(c) Public-private partnerships for ecotourism. By strengthening the enabling environment, the project will help promote private sector investments in ecotourism, private sector-led ecotourism development, and PPP opportunities. Global experiences from well-developed ecotourism and nature-based tourism markets show that private sector participation in ecotourism stimulates competitiveness, development of high-quality ecotourism offerings, and overall increased potential for ecotourism as an economic growth engine. The consistent and effective implementation of PAs and ecotourism plans sends a message to investors that the management of the destination has been thought through, the destination has stakeholder buy-in, and the destination’s resources are managed, thereby reducing risks for investors. This project supports the development of ecotourism revenue-sharing models and will undertake activities to strengthen the enabling environment for ecotourism, and investment in ecotourism infrastructure will encourage follow-on investments by private sector operators and will affect investors.

(d) Value local community participation. Experience shows that communities that are engaged in tourism activities are more likely to add value. In addition to consulting with local stakeholders, enterprises should be required to make binding commitments to buy locally, especially from women, to stimulate local economic development. However, excessive reliance on tourism should be avoided when integrating local communities into PA economies. Instead, projects should be designed to ensure that tourism returns are part of a diversified set of local, environmentally

44 Leung, Yu-Fai, Anna Spenceley, Glen Hvenegaard, and Ralf Buckley, eds. 2018. Tourism and Visitor Management in Protected Areas: Guidelines for Sustainability. Best Practice Protected Area Guidelines Series No. 27, Gland, Switzerland: International Union for Conservation of Nature. Thompson, A., P. J. Massyn, J. Pendry, J. Pastorelli. 2014. Tourism Concessions in Protected Natural Areas: Guidelines for Managers. United Nations Development Programme. 45 World Bank. 2018. Stimulating Sustainable Tourism Development through Concession Policies: Case Studies on how Tourism can Benefit the Environment and Communities Living in and Around Protected Areas; World Bank. 2016. An Introduction to Tourism Concessioning: 14 Characteristics of Successful Programs. Washington, DC: World Bank.


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sustainable income-generating activities. The project has been designed to promote community participation throughout all its components, as well as specifically support communities in building their capacities in entrepreneurship for NTFP and ecotourism value chains through BDS to increase their incomes from sustainable activities.

III. IMPLEMENTATION ARRANGEMENTS

A. Institutional and Implementation Arrangements

71. Institutional arrangements. Institutional arrangements for implementation will follow the Government’s institutional structure, with the MoE in the lead as the EA as well as an IA and including the MRD as an IA for the related public infrastructure support under Component 3. The Project Implementation Manual (PIM) identifies the roles and responsibilities of specific departments within the MoE and MRD for implementing subcomponents (see Annex 1, Table 1.1). The EA and IA will establish their respective Project Implementation Teams (PITs) with experts and expertise from direct and relevant technical, administration, environmental and social safeguards, procurement, and finance departments. Strategic direction and guidance for the management and operation of the project will be provided by a high-level Project Steering Committee (PSC), chaired by the MoE.

72. Subnational levels of government will be supported and engaged through the national line ministries for the MoE and MRD, where relevant. Provincial staff of line departments will ensure coordination at the subnational level and are responsible for main field-level monitoring activities. Support for their technical assignments will come from relevant project teams in the MoE and MRD; no project investments will go directly to any subnational institutions or authorities. Where, and if necessary, they will be supported through TA/capacity building to facilitate and strengthen smooth project implementation.

73. PITs. The PITs will be established at the MoE and MRD and will include technical staff to address practical and specialized issues arising during planning and implementation. The PIT of the MoE will be led by an assigned project director who will be responsible for overall coordination of project implementation, external communication including the agreed reporting to World Bank, and consolidation of project progress and financial reports of the MoE and MRD. The PITs will include members from the main technical units involved in project implementation, including senior staff responsible for FM, procurement, monitoring and evaluation (M&E), and communication. Consultants and contract staff could, where and when needed, fill capacity gaps in the team. However, as the project is implemented through the existing government (MoE and MRD) structure, including the line departments of IA and EA, the PITs will be limited in number but with efficient and effective personnel.

74. Project’s FM. The Department of Finance and Accounting (DoFA) of the MoE and the Department of Supply and Finance (DSF) of the MRD are responsible for the project FM and disbursement of their respective parts.

75. Funds flow and the accountabilities for financial reporting. A segregated Designated Account (DA) at the National Bank of Cambodia (NBC) is maintained by the EA and each IA to get funds from the World Bank. A six-month interim unaudited financial report and annual audit report are required to be


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submitted to the World Bank no later than 45 days after semester-end and six months after the end of each calendar year.

76. Project’s procurement. The EA and IA, with the support of individual procurement consultant(s), will carry out procurement activities financed under their respective components and subcomponents themselves.

77. PIM. The PIM has been prepared by the RGC’s project preparation team and adopted, and presents the guidelines on financial and administrative policies and procedures for managers, administrators, staff, and consultants responsible for implementation of the project. Key areas include basic project management, institutional responsibilities, financial procedures and management fiduciary responsibilities, staff selection and management, results M&E, risk assessment and mitigations, environmental and social safeguards, and any other specific reporting requirements imposed by the RGC and World Bank policies. The PIM also includes a communication strategy that addresses challenges in awareness and outreach to all stakeholder groups. The PIM has included an annex (Annex 6) to cover the provisions for activating and implementing the CERC, to facilitate implementation in case a disaster leads to the decision to activate the component.

B. Results Monitoring and Evaluation Arrangements

78. The M&E is supported under Component 4, to ensure accountability in the use of project funds and progress toward achieving the PDO. The M&E focuses on data collection and reporting on key PDO and intermediate outcome indicators, including target data collection, surveys, participatory assessments, and midterm and end-of-project evaluations.

79. Roles and responsibilities in M&E. Responsibilities for M&E will be with the two IAs—MoE and MRD. Within the MoE, the General Department of Administration for Nature and Conservation (GDANCP) and the General Department for Local Communities (GDLC) are the departments responsible for implementing activities under Components 1 and 2 (Subcomponents 2.1 and 2.2) and will therefore be responsible for reporting on the associated indicators and results. Within the MRD, the Rural Roads Department is responsible for implementing activities under Component 3 and will be responsible for associated results. Two M&E focal points, one from each ministry, will be assigned as part of the project formulation team and will lead the development of an M&E manual with all the detailed data collection processes, responsibilities, schedule of activities, and the budget needed.

80. M&E capacity. The GDANCP and GDLC of the MoE and Rural Roads Department of the MRD do not have designated M&E units, and M&E is often undertaken by these departments on a project basis. A consultant firm will therefore be hired to support the IAs on the operationalization of M&E starting with detailing of an M&E plan for inclusion in the PIM, and capacity development of the MoE and MRD staff on M&E. A consultant firm will therefore be hired to support the IAs on the operationalization of M&E starting with the detailing of an M&E plan for inclusion in the PIM, and capacity development of the MoE and MRD staff on M&E. The M&E firm will support the IAs in the development and implementation of data collection surveys, analysis of data collected, and reporting on results. Capacity-building activities (trainings, workshops, and courses) will be provided to the IAs as determined by an M&E capacity needs assessment (undertaken by the M&E firm).


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81. The project will use a Results Framework comprising PDO and intermediate results indicators to measure progress toward the project’s objectives. The framework includes five PDO indicators and nine intermediate results indicators. Indicators have been included to assess progress in closing the gender gap associated with women’s participation in leadership roles in forest management, female entrepreneurship, and satisfaction of community members with the participatory PAs planning process. For all indicators in the Results Framework, there is a link to the higher-level project objectives.

82. Data and information needs. The project’s Results Framework is aligned with the Results Framework of the NPASMP to the extent possible, and so data collected for project indicators will also support the M&E of the NPASMP. The data collection process will vary from review of official annual work reports of the IAs, records and registries after field visits, and the MRD’s Geographic Information System (GIS) road database to specific surveys including the Management Effectiveness Tracking Tool (METT) survey, which will be used to track improvements in PAs’ management; a travel survey to assess improvements in access to tourism sites; and a business survey to assess development of ecotourism and NTFPs. Surveys for gender and citizen engagement will also be undertaken.

83. Communication and information use. Quarterly implementation reviews will be undertaken by the project formulation team to assess the physical and financial progress and performance based on the annual work plan and budget and address issues and constraints in implementation and management. The outcome of these reviews will be shared with the MEF and the PSC and will be used to inform decisions on projects activities and priorities. A semiannual M&E report will be submitted to the World Bank according to the agreed dates, usually preceding the implementation support missions. The project M&E system will be supported by a computerized management information system (MIS) that is supported by database, software, and dedicated MoE and MRD M&E officers. A community-based approach will be used, wherever feasible, to help strengthen transparency, ownership, and accountability. Communication of the project results will include reporting on success stories and lessons learned.

C. Sustainability

84. To ensure the long-term sustainability of project interventions and the continued conservation and management of Cambodia’s natural capital in the selected landscape, the project has prepared a Management Framework (see annex 6). This framework outlines the agreed post-project financing arrangements and responsible government agencies for each of the project’s key investments and activities—aimed to support four key pillars of sustainability: (a) institutional, (b) environmental, (c) social, and (d) financial.

85. Institutional sustainability will be supported through enhancing the capacities of the MoE and PDoEs in PA planning, management, and enforcement; managing of ecotourism development in PAs; and strategic planning for NTFP development linked to a forest restoration agenda. Enhancing the leadership capacity of the MoE on natural capital development and management is also important for enabling the MoE to better coordinate the work of DPs in PAs to achieve greater impact. Post-project, the MoE and MRD will need to ensure the allocation of appropriate budget to support continued training for and support to the provincial departments that will have increasing responsibilities of PA management and enforcement and activities such as the ecotourism and NTFP value chains taking place in PAs. Annual budget allocations for ongoing operation and maintenance (O&M) of roads, bridges, and public ecotourism infrastructure such as sanitation facilities.


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86. Environmental sustainability will be attained by ensuring that the regulatory framework for PAs is strong and being enforced, that is, PAs are zoned and managed in a manner consistent with the Protected Areas Law; management plans are developed through a participatory process with communities, are adequately budgeted, and are being implemented and monitored; and a PA enforcement strategy is in place and being implemented. The regulatory framework will need to be complemented by well-capacitated government staff and local communities that are trained in Protected Areas Law enforcement and are committed to implementing the PA management plan. Increased income-generating opportunities through the ecotourism and NTFP value chains are anticipated to (a) help reduce forest exploitation and land encroachment by households to meet basic needs and increase their incomes and (b) increase the incentive for communities to protect the natural capital on which their incomes depend.

87. Social sustainability will result from the project’s support for alternative income-generating opportunities for local people, with a focus on women. A key aspect of social sustainability is ensuring that communities feel included in the planning process for PAs and also with respect to the ecotourism and NTFP value chain development, and accordingly the project will promote strong participation of local communities in project activities. In addition, the sustainable management of landscapes in upstream watersheds in the Cardamom Mountains will support social sustainability by protecting downstream communities from adverse impacts of deforestation and land degradation such as flash flooding and sedimentation.

88. Financial sustainability will be achieved by

(a) Setting up an integrated FM system for better managing PA entrance and user fees and conservation fees, of which some percentage will be reinvested back into environmental conservation, and other fees that can support PAs such as PES and REDD+ payments;

(b) Creating an enabling environment for the private sector to develop and operate ecotourism enterprises, governed by a set of bylaws, as well as NTFP enterprises;

(c) Developing and strengthening collaborative management models between PDoEs and local communities for CBET investments, including for non-road infrastructure (for example, walkways, viewing platforms, signage, waste management); and

(d) Investing in climate-resilient infrastructure to ensure that roads are rehabilitated for the long term and cannot be quickly damaged or destroyed by floods.

IV. PROJECT APPRAISAL SUMMARY

A. Technical, Economic, and Financial Analysis

Technical

89. Decision support systems. To strengthen evidence-based decision making relating to PA management and related ecotourism and NTFP value chains, the project will support the development of a decision support system. Building on existing work undertaken by the MoE (with support from UNDP), this decision support system will help inform and prioritize investments in ecotourism, provide inputs into the types of management agreements, and monitor progress.


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90. Infrastructure design and implementation. The design of infrastructure investments will be based on detailed, tested engineering solutions. Construction will follow the required/defined technical standards and specifications and will be designed to promote energy efficiency using green design standards that exceed existing standards for Cambodia. Specific energy efficiency measures will be undertaken for builds to reduce heat loss, use energy efficient appliances and lighting, and energy efficient roofs, facades and windows. Design considerations for rural roads and rural infrastructure will include climate resilience. Technical suitability of road construction will be ensured by MRD, which has considerable planning and implementation experience in this area. In addition, the project will employ technical support consultants, where needed, to advise and provide quality assurance on infrastructure design, location, and construction.

91. Hub-and-spoke models for ecotourism. Four potential ‘hubs’ for ecotourism development have been identified through geospatial analysis and stakeholder consultation. Geospatial analysis was used to determine spatial clusters of potential sites for ecotourism development, existing ecotourism development, CPAs, and community groups. Analysis will also help ensure overall improvement of the quality of tourism products that are being offered. The four hubs identified are in Koh Kong (within Southern Cardamoms PA), Siem Reap (within Tonle Sap multiple use PA), Pursat (including nearby wildlife sanctuaries and accessing Tonle Sap Lake), and Kampong Speu (including southern Cardamom PA). The specific ecotourism investments at these sites will be determined with further analysis and stakeholder consultation before project implementation and will be thoroughly evaluated for technical feasibility.

92. Ecotourism management agreements. Key to the success and sustainability of the ecotourism activities will be the development of ecotourism management agreements that will form the contractual obligations between the ecotourism enterprise and the MoE, as manager of PAs. The agreements would help the MoE manage ecotourism development within PAs; ensure that there are financial flows from ecotourism to PA conservation and management; and ensure that local communities benefit from ecotourism, particularly private sector ecotourism enterprises. Guidelines for ecotourism management agreements will be developed during project implementation, before any ecotourism development supported by the project happens.

Economic and Financial Analysis

93. An economic analysis was carried out to compare the economic benefits generated by the project, with the costs. This ex-ante economic analysis focused on three readily quantifiable benefit and cost streams to assess overall project feasibility.

• Tourism benefits. The project will increase access to project sites from main hubs through improved infrastructure, increasing the number of visitors. It will develop several new tourism activities in project sites (visitor and interpretation centers, hiking trails, and tourism facilities), increasing both the length of stay of each visitor and their daily spending. Increased income in the beneficiary communities will lead to greater taxation revenue for the Government. There will be multiplier effects of the tourism spending in the country and in the target landscapes.

• Community and resilience benefits. The project will focus its support on the NTFP value chain development, providing technical support and training, as well as construction of processing, packaging, and storage facilities. It is expected that 5,200 households or


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approximately 25,000 people in the project sites will be supported by these interventions. Household benefits will be in the form of increased income; employment; and skills from interventions on climate-friendly rural development activities, climate-smart agriculture, and links to sustainable value chains. There will also be tangible rural household adaptation/resilience co-benefits because of increased availability of environmental services (such as water access, food, fiber, and less extreme weather). There is also the benefit of reduced uncertainty, variability of returns, and average ‘losses’ because of poor practices or rainfall variability.

• Ecosystem service benefits include both quantifiable and less tangible benefits. The project will support PA management planning and enforcement at seven sites, which will reduce forest loss cover in more than 2 million ha. Other benefits include improved water quality and quantity, improved habitat for biodiversity habitat, and protection of wildlife. These benefits can be described qualitatively and serve as an added increment of benefits beyond what can be readily counted.

94. Model and assumptions. The economic analysis focused on the generation of benefits and costs over the life of the project and (separately) for a total period of 20 years. Using net present value (NPV) analysis, which discounts all monetary streams to a common base year, the model compared the stream of benefits and costs under various scenarios.

95. Ecotourism benefits are quantified based on tourist arrivals information, average spending, and average length of stay. Livelihoods benefits are compared based on current rural household incomes. A key environmental service benefit is the value of emission reductions, which is estimated based on a per hectare level of carbon sequestration in local area soils and forests, the expected improvement relative to the baseline, and an estimate of the social value of avoiding emissions.

96. Analytical results and sensitivity analysis. This ex ante economic analysis demonstrates positive benefit-cost results across a range of sensitivity analyses and assumptions. The positive results were robust to variations in the estimated impact or performance of the project interventions, discount rates, and carbon prices. The sensitivity analysis is designed to show that the positive economic result is not dependent on a high price of carbon but is in fact robust to changes in carbon prices, interest rates, and productivity/performance assumptions.

97. The total benefits of the project over a 20-year time horizon will be nearly US$363 million. Sensitivity analysis was applied to assess the effects of varying key assumptions, notably the social/global value of carbon and tourism interventions. Community and resilience benefits streams were not included as they represent a relatively small proportion of the total economic benefits (9 percent). These quantitative assessments help demonstrate that the project produces substantially positive net benefits under a wide range of reasonable price and performance scenarios.

98. Conclusion. Subject to the abovementioned assumptions and uncertainties, results suggest that the project is economically justifiable over the 20-year time horizon. The economic rate of return (ERR) is 16.88 percent and the NPV equals nearly US$186 million (at 3 percent discount rate). The NPV provided is a conservative estimate, as it


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• Assumes land degradation would only continue at a rate of 1 percent per year, rather than the mean of 4 percent;

• Does not account for any tourism demand above 3 percent annual growth plus inflation or the indirect multiple effects of visitor spending on livelihoods of neighboring communities; and

• Does not accurately track the value of specific community and resilience benefits because of a lack of provided data.

99. It would be realistic to assume that the project would have a positive impact on all three factors, thereby returning a higher an NPV at the project evaluation stage.

B. Fiduciary

(i) Financial Management

100. The FM assessment was carried out in September 2018, according to the World Bank Policy and Bank Directive: Investment Project Financing (OP 10.00). The overall conclusion of this assessment for the project’s FM arrangements are considered adequate and meet the World Bank’s minimum FM requirements under the said policy and directive. The project will apply the existing structures of the MoE and MRD as part of the project implementation arrangements.

101. The main risks/gaps analysis were identified: (a) lack of experience in handling project finance and systems to capture receipt and reporting expenditures and procedures to guide staff, which can lead to incomplete accounting records and slow start of disbursement of funds from the World Bank; (b) limited knowledge related to the use of computerized accounting software program and setting up chart of accounts to be aligned with the Government’s chart of accounts; and (c) delay in payments to contractors, suppliers, consultants, and service providers because of multiple smaller contracts spread over several areas, coupled with limited experience in managing donor partner’s funds. These are likely to increase risks of non-compliance and delays in submitting financial and audit reports to the World Bank. The project will assign an experienced finance team from the DoFA to handle the project FM and disbursement tasks to mitigate these risks. Further details are provided in annex 1.

102. The assigned FM team from the DoFA of the MoE and the DSF of the MRD will have overall FM responsibilities for the proposed project, project funds, expenditures, and resources. Project funds will be accounted in the project computerized accounting software to be managed by the DoFA and DSF. The project will maintain adequate FM systems acceptable to the World Bank. The DAs will be opened at the NBC to receive funds from the World Bank. Separate DAs for receiving the Government’s counterpart funds from the MEF will also be opened at the NBC to pay for staff costs of the Government personnel working on the project. The project will use transactions-based disbursement (statement of expenditures) and will follow the disbursement methods outlined in the additional instructions of the Disbursement and Financial Information Letter.

103. Each project IA will prepare a six-month unaudited interim financial report (IFR) and furnish such reports to the World Bank no later than 45 days after the end of each calendar semester. The project’s financial statements will be audited annually by a private audit company acceptable to the World Bank recruited under the World Bank Procurement Regulations for IPF Borrowers. Each audit will cover one


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calendar year and the audit report for each year shall be submitted to the World Bank not later than six months after the end of each calendar year.

(ii) Procurement

104. Procurement under the project will be carried out in accordance with World Bank Procurement Regulations for IPF Borrowers, dated July 1, 2016, revised November 2017 and August 2018, and provisions stipulated in the Financing Agreement. The approaches to national markets (National Procurement and Request for Quotations) will be carried out in accordance with the RGC’s Updated Standard Operating Procedures and Procurement Manual for All Externally Financed Projects/Programs (‘Procurement Manual’), promulgated through Sub-decree 74, dated May 22, 2012, which was issued pursuant to Article 3 of the RGC’s Law on Public Procurement dated January 14, 2012, subject to the additional provisions included in the Procurement Plan. The World Bank’s planning and tracking system, Systematic Tracking of Exchanges in Procurement (STEP), will be used to prepare, clear, and update Procurement Plans and conduct all procurement transactions for the project

105. The MoE and MRD will be the IAs for the project. The procurement activities will be undertaken by PITs, with expertise from the procurement unit of the MoE and MRD. The World Bank has carried out capacity assessment and procurement risk assessment of the IAs. Based on the assessment, the overall procurement risk assessment is rated Substantial. Details of the key risks that have been identified and the corresponding mitigation measures are found in annex 1 of this Project Appraisal Document (PAD).

106. The borrower, with the support of the World Bank’s task team, has prepared a Project Procurement Strategy for Development (PPSD) to inform fit-for-purpose procurement arrangements in the Procurement Plan. This strategy has been reviewed by the World Bank and finalized by the borrower. The international competitive market approach will be used for major procurements and selection of consultants involving international competition will be carried out in accordance with the Procurement Regulations for IPF Borrowers. National market approaches will be carried out in accordance with the national regulations of the RGC’s Updated Standard Operating Procedures and Procurement Manual for All Externally Financed Projects/Programs (‘Procurement Manual’), promulgated through Sub-decree 74, dated May 22, 2012, which was issued pursuant to Article 3 of the Kingdom of Cambodia’s Law on Public Procurement, dated January 14, 2012, subject to the additional provisions included in the Procurement Plan.

107. Based on the findings and recommendations of the PPSD, the Procurement Plan for the initial 18 months has been prepared by the borrower as agreed with the World Bank. The Procurement Plan will be entered in STEP and updated annually (or as needed) by the MoE and MRD to (a) reflect project implementation, (b) accommodate changes that should be made, and (c) add new packages as needed for the project. The Procurement Plan, any updates, or modifications shall be subject to approval of the Procurement Review Committee or the MEF in accordance with Standard Operating Procedure followed by World Bank’s prior review and no objection. The World Bank will carry out procurement post reviews on an annual basis with an initial sampling rate of 20 percent, which will be adjusted periodically during project implementation based on the performance of the project. The detailed Procurement Plan is available in a separate project document.


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C. Safeguards

(i) Environmental Safeguards

108. The project has triggered the following environmental safeguard policies: OP/BP 4.01 (Environment Assessment), OP/BP 4.04 (Natural Habitats), OP/BP 4.36 (Forests), and OP/BP 4.11 (Physical Cultural Resources). These safeguard policies are triggered because of TA and infrastructure investment activities. However, the project is classified as category ‘B’ as its potential adverse environmental and social impacts are expected to be site specific, reversible, and mitigated through subproject screening and management.

109. The overall environmental impacts from the proposed activities are expected to be largely positive through addressing priority objectives of landscape, forest, and ecotourism restoration. Furthermore, the project aims to sustain and increase forest cover which will reduce soil erosion, maintain or improve water quality for downstream users, provide protection to farms and villages located in flood-prone areas, reduce GHG emissions, and protect critical natural habitats. This project is fully consistent with the World Bank’s Natural Habitats and Forest policies. Potential adverse environmental impacts that may arise because of subprojects are

• Increased pollution in or degradation of soil and water from the expansion of intensive farming, livestock, aquaculture, and/or production forestry, including from the use of pesticides and fertilizers;

• Impacts associated with small-scale construction works, including changes in the ecological flow of rivers and tributaries;

• Increased pollution from the improper disposal of construction materials and hazardous substances; and

• Community infrastructure investments and other project activities that may affect unknown physical or intangible cultural heritage.

110. For mitigation measures, the MoE and MRD have developed an Environment and Social Management Framework (ESMF) to avoid, minimize, and reduce possible temporary and site-specific impacts on the environment and people. The ESMF provides the road map for screening for adverse environmental and social risks of subprojects and preparing Environmental Code of Practice or site-specific Environmental and Social Management Plan (ESMP)/Environment and Social Impact Assessment (ESIA) during implementation. The ESMF was disclosed in-country and on the World Bank’s external site on February 13, 2019. The ESMF includes environmental and social screening and impact assessment guidelines aiming at

• Preventing and/or mitigating any environmental and social impact resulting from proposed activities;

• Ensuring the long-term environmental sustainability of benefits from proposed activities by securing the natural resource base on which they depend; and

• Facilitating activities that may lead to increased efficiency in management of natural resources resulting in the stabilization and/or improvements in local environmental quality and human well-being as well.


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(iii) Social Safeguards

111. The project has triggered the following social safeguard policies: OP/BP 4.10 - Indigenous Peoples and OP/BP 4.12 - Involuntary Resettlement. To address the potential social impacts of the project, the implementation agencies prepared a Resettlement Policy Framework (RPF), a Process Framework (PF), and an Indigenous Peoples Planning Framework (IPPF).

112. The Involuntary Resettlement Policy was triggered for this project because of possible restrictions of access to natural resources from project activities aimed at improving zonation and demarcation of PAs and forestry. Such restrictions may adversely affect the livelihoods of households living in or near CPAs and community forests. To mitigate the impact of these restrictions, a PF for access restriction was prepared detailing the participatory mechanism by which decisions on access restrictions will be made and what measures will be put in place to restore or replace the livelihood activities adversely affected by those restrictions.

113. The PF will build on the existing decrees (Prakas) in Cambodia on Community Forestry and CPAs, which already include provisions on participatory planning and management. In addition, it is possible that some of the tourist access infrastructure to be financed under the project will require land acquisition and lead to involuntary resettlement. Because the exact locations of this infrastructure will not be identified until implementation, an RPF was prepared with the cooperation of the General Department of Resettlement within the MEF. The PF and RPF were disclosed in-country on February 13, 2019, and on the World Bank’s external site on January 30, 2019.

114. It is also possible that the project may adversely affect (or count among its beneficiaries) vulnerable or traditionally excluded groups including indigenous people and other ethnic minority groups living and/or working in the project area. Women, younger, and disabled beneficiaries may not get equitable access to project benefits or opportunities to contribute to the community-based decision-making process.

115. The Indigenous Peoples Policy was triggered because of the presence of communities of indigenous peoples (Chong People) in the Cardamom Mountains. Therefore, an IPPF was prepared describing how community-specific social assessments, indigenous peoples plans, and consultation will be undertaken. In addition to addressing the requirements of the World Bank’s Indigenous Peoples Policy, the IPPF builds on the newly published National Indigenous Peoples Policy for the RGC and will lay out the requirements for the preparation of site-specific indigenous peoples plans; social assessments; and procedures for free, prior, and informed consultation. The supporting infrastructure investments and other project activities may affect unknown physical or intangible cultural heritages. The IPPF was disclosed in-country on February 13, 2019, and on the World Bank’s external site on January 30, 2019.

(iv) Grievance Redress Mechanisms

116. Communities and individuals who believe that they are adversely affected by a World Bank supported project may submit complaints to existing project-level grievance redress mechanisms or the Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the Bank’s independent Inspection Panel, which determines whether harm occurred, or could occur, as a result of non-compliance with its policies and procedures. Complaints may


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be submitted at any time after concerns have been brought directly to the World Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the World Bank’s corporate GRS, please visit http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service. For information on how to submit complaints to the World Bank Inspection Panel, please visit www.inspectionpanel.org.

(v) Citizen Engagement

117. The Protected Areas Law and related strategies and guidelines for PA development in Cambodia, call for citizen engagement, especially consultations with local communities, in the development of PAs. The roles of the MoE and PDoEs in this regard are to bring the perspectives and concerns of local communities into PA planning, decision making, and management. By establishing opportunities for communities to provide inputs to PA development, and communication channels for communities to report their satisfaction with the government’s activities in PA management, the Government can improve its citizen engagement efforts. CPA management communities are also important for consolidating broader inputs from community members and sharing these with the Government, and therefore are also key for citizen engagement.

118. The project will support citizen engagement through community and stakeholder consultations as part of the process of developing PAs and CPAs. Several workshops will be undertaken for involving communities in developing PAs and CPAs, including targeted workshops for women and communities of indigenous peoples where applicable. The project will also support creation of specific opportunities for local communities to receive information and updates about the project and share their views and express their satisfaction with the project including on the performance of the MoE and PDoEs in implementing the project.

119. Regular updates about the project will be provided through SMS blasts to local communities tailored for different community groups, as well as through CPA management communities. Local communities will have opportunity to provide feedback on the project through an annual survey designed to collect views, concerns, and testimonials from local communities and local authorities. The results of the survey will be used to develop action plans for improving the MoE and PDoEs and relevant local authority’s performance in implementation of project activities. This approach to citizen engagement is in keeping with the Subnational Democratic Development strategy focus on strengthening government responsiveness and citizen participation through application of the approach of the joint-government-civil society Social Accountability Framework.

V. KEY RISKS

120. The overall project risk is considered Substantial, because of the following factors:

• Institutional capacity for implementation and sustainability is rated Substantial. The rating is because of needed technical capacities to develop, engage in, and sustain ecotourism and related value chains in the PA landscape of the Cardamom Mountains. TA is needed for the development of value chains and training and capacity development is needed for communities to engage in value chains. The project design builds on training and capacity

http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service

http://www.worldbank.org/en/projects-operations/products-and-services/grievance-redress-service

http://www.inspectionpanel.org/


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development (such as for PA management and BDSs) and relies on technical consultants to help IAs with project implementation and management.

• Fiduciary risk is rated Substantial. There remains a weak control environment, along with weak implementing capacities, especially in the MoE, and perceived governance risks on fiduciary responsibilities, particularly with regard to procurement and FM. The project will help mitigate the risks by providing the needed capacity support and put in place internal control mechanisms.

• Technical design of the project or program is rated Substantial. The limited experience of the lead IA, the MoE, in managing World Bank loan projects leads to substantial risks with the technical design and institutional capacities. The project includes paying attention to potential technical risks by including TA support and having dedicated consulting contracts for firms (national and international) to support implementation of activities.

• Environmental and social risk is rated Substantial. The rating is because of the intensive support needed by both the MoE and MRD during project implementation. The MRD has implemented World Bank-funded projects outside the scope of PAs. If not sufficiently and timely enforced, the improved roads and road connectivity can facilitate illegal activities such as illegal land encroachment. The MoE implemented the World Bank-assisted Biodiversity and Protected Areas Management Project; however, it was a decade ago and a different PIT implemented this project. Furthermore, the country suffers from high exogenous environmental risks, such as being vulnerable to climate change and natural disasters, and degradation of natural capital. To mitigate any potential risk, the MoE and MRD developed an ESMF to avoid, minimize, and reduce possible temporary and site-specific impacts on the environment and people. Adverse environmental risks can be managed with the project-environmental safeguard instrument (for example, ESMF for project; ESMP/ Initial Environmental Examination (IEE) for subprojects) and a dedicated safeguards budget for consultants to provide hands-on and continued capacity building to the environmental safeguard focal points of the MoE and MRD.

VI. GENDER AND CLIMATE CHANGE

Supporting Gender Opportunities

121. Participation of men and women in forest resources management in Cambodia has tended to be disproportionate for several cultural and systemic reasons. These include (a) perceptions that forest work is better left to men—men tend to dominate membership (up to 80 percent of positions) in community forest management structures on elected committees for the community forest; (b) lack of confidence among women in speaking to large groups, lower literacy levels, the burden of childcare and household duties that need their time, and a perceived lower level of knowledge about the forest; (c) informal information channels that exclude women and poorer households; (d) absence of quotas for women’s participation; and (e) lack of income-generating activities.

122. Increasing the participation of women in CPA management committees will allow them to have a stronger decision-making role and therefore more influence on decisions regarding forest


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management and access to forest resources and related-incomes. In the CMTS landscape, on average, only 16 percent of CPA management committees comprise women. The project will help promote and prepare women for leadership roles on CPA management committees and aims for at least 50 percent of all CPAs to include women on their management committees. By supporting CPAs in the development of their bylaws, this project will help ensure both representation and participation of women in CPA management committees.

123. Specific project activities will include targeted workshops for women on CPA planning and management, promotion of women in CPA management committees, and coaching sessions for women on participating in CPA management committees. Sensitization workshops for men and women will be conducted on creating gender-safe spaces, reducing cultural marginalization of women, working with female leaders, and promoting safety and security of women participating in forest activities, for example, forest patrols.

124. In Cambodia, 65 percent of micro, small, and medium enterprises are classified as ‘women led’, but women own only one-third of all registered businesses and less than 1 percent of businesses with more than 10 employees. A significant number of micro and small business owners in Cambodia are women and they are important creators of jobs, especially in smaller communities and rural areas where job creation is crucial. However, women face several challenges in accessing finance due to lack of collateral; limited knowledge on the financial products, terms and conditions, and the right financial institutions; and limited knowledge on business plan development.46 Women also face challenges in negotiating with predominantly male authorities. In addition, their unequal share of family responsibilities hampers women from networking and other business development activities that occur outside working hours.

125. The project’s actions to promote female business ownership and their ability to access finance to improve their businesses are undertaken to promote social inclusion, improve the status of women, and reduce gender disparities. Project activities will help support female entrepreneurs through targeted workshops and seminars and coaching for women on business development including on regulations, financial literacy, business planning, opportunities for finance, public speaking, managing family businesses, and leadership; and the development of networks of female entrepreneurs, that are linked to existing networks such as the Cambodia Women Entrepreneurs Association. These activities are in line with recommendations provided in UN ESCAP (2019) and ADB (2015)47 on strengthening the capacity of women-led enterprises. In addition, women will be targeted for training and investments provided on NTFP processing, storage, packaging, and market opportunities.

Supporting Climate Change Adaptation and Mitigation

126. Cambodia ranked as the 8th most disaster-prone country by the United Nation’s World Risk Index (2015). Based on the scenario of a 2°C temperature rise by 2050, estimates suggest that climate change will reduce Cambodia’s GDP by at least 1.5 percent in 2030 and 3.5 percent in 2050. The impacts of climate variability and change (temperature and rainfall) on Cambodia’s forests are not well documented. However, using trends from other countries with similar forest types, it is expected that

46 UN ESCAP, 2019. MSMEs Access to Finance in Cambodia. United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP). 47 ADB, 2015. Promoting Women’s Economic Empowerment in Cambodia. Asian Development Bank, Manila Philippines.


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drought and high temperatures will affect forest growth and productivity and can affect overall forest moisture content that can lead to drying and increase susceptibility to fires.

127. Using analysis and scenario planning, the project will provide guidance and support to climate-resilient and climate-smart practices and investments, including for forest ecosystems. The project is expected to provide climate change co-benefits derived from the following:

(a) Adaption/resilience activities: development of climate-resilient ecotourism infrastructure including resilient rural roads, drainage will be supported under Component 3, and buildings designed to maximize rainwater capture for use (Component 2);

(b) Mitigation activities including an increase in carbon stocks because forests are conserved through Component 1 activities which focus on improving the management of PAs; energy efficiency measures integrated into buildings developed under Component 2 will also support Cambodia’s mitigation agenda.

128. GHG accounting. It is World Bank policy to quantify the GHG mitigation potential of its projects as an important step in managing and ultimately reducing emissions. The Ex-Ante Carbon-balance Tool (EX-ACT) is used to estimate GHGs emitted or sequestered because of the project compared to the ‘without project’ scenario. Project activities affecting GHG emissions include zoning, demarcation and registration, and PA management plans developed for five PAs to improve management and reduce forest degradation activities. Forest restoration using agroforestry will be undertaken in degraded areas, notably the Cardamom Corridor, and within PAs.

129. The analysis of GHG emissions reductions used the ‘Land use change’ component of EX-ACT. Technical analyses for the project resulted, over 30 years (about 6 years for actual project implementation and 24 years for capitalization of its effects), the project’s carbon emissions reductions are estimated at 1,702,747 tCO2eq or 56,758 tCO2eq per year.

.


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VII. RESULTS FRAMEWORK AND MONITORING

Results Framework

COUNTRY: Cambodia Cambodia Sustainable Landscape and Ecotourism Project

Project Development Objectives(s)

The Project Development Objective is to improve protected areas management, and to promote ecotourism opportunities and non-timber forest product value chains in the Cardamom Mountains-Tonle Sap landscape.

Project Development Objective Indicators

RESULT_FRAME_T BL_ PD O

Indicator Name DLI Baseline End Target

To improve management of selected protected areas

Protected areas under improved management (Hectare(Ha)) 0.00 2,052,870.00

To promote ecotourism opportunities

Visitors in selected community-based ecotourism sites (Number) 128,000.00 219,500.00

To promote non-timber forest product value chains

Community groups with an increase of one or more on index of natural resources value addition (Percentage)

0.00 50.00

To improve protected areas management, and to promote ecotourism opportunities and non-timber forest

Proportion of beneficiaries of BDS that are women (Percentage) 0.00 50.00

Targeted community members satisfied with benefits of the project (Percentage)

0.00 75.00

PDO Table SPACE

The World Bank Cambodia Integrated Landscape and Natural Resources Management Project (P165344)

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Intermediate Results Indicators by Components

RESULT_FRAME_T BL_ IO

Indicator Name DLI Baseline End Target

1. Strengthen Capacity for Protected Area Landscape Planning and Management

1.1 Cloud-based geospatial platform for integrating data and information for PAs planning and enforcement operational (Number)

0.00 5.00

1.2 Protected Areas enforcement strategy operational (Number) 0.00 5.00

1.3 Share of targeted communities using innovative technologies in PAs monitoring (Percentage) 0.00 75.00

1.4 Protected areas management plans adopted (Number) 0.00 7.00

1.5. Share of targeted CPAs with at least one woman in the CPA management committee (Percentage)

16.00 50.00


2.1 Potential tourist sites in selected PAs with infrastructure operational (Number)

0.00 30.00

2.2 New tourism enterprises with sufficient capacity (Number) 0.00 10.00

2.3 NTFP value chains improved with new infrastructure, technology, and market access (Number)

0.00 3.00


3.1 Average travel time to potential tourism sites in selected PAs (Hours)

6.00 2.00

IO Table SPACE

UL Table SPACE


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Monitoring & Evaluation Plan: PDO Indicators

Indicator Name Definition/Description Frequency Datasource Methodology for Data Collection

Responsibility for Data Collection

Protected areas under improved management

MoE will undertake various actions to improve the management of protected areas (PAs) in Cambodia, including: zoning, boundary demarcation and registration of protected areas, development of protected area management plans, and capacity development for rangers and staff of the Ministry of Environment that are responsible for PAs management. The project will support zoning, boundary demarcation, land registration, and PAs management plan development for the following PAs: Central Cardamom National Park; Southern Cardamom National Park; Phnom Aural Wildlife Sanctuary; Phnom Sankos Wildlife Sanctuary; Tatai Wildlife Sanctuary; Tonle Sap Multiple Use Area; and Cardamom

Annual

Management effectiveness tracking tool (METT) survey

METT survey to be undertaken by Protected Areas (PA) staff of General Department of Administration for Conservation and Protection (GDANCP) of Ministry of Environment for each PA.The METT survey template is included in the METT handbook, and will be finalized by the PA with the support of a firm contracted to support M&E. The PAs staff will coordinate with directors of the different Protected Areas to complete the survey, and will be responsible for data analysis and reporting with the support of the M&E firm. The first METT survey will be conducted at the start

GDANCP, MoE


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Biodiversity Conservation Corridor. Improvements to the management of PAs will be assessed using the Management Effectiveness Tracking Tool (METT). The METT is commonly used to assess the management of PAs through assessing different dimensions of management including legal and regulatory framework, law enforcement capacity, planning, management plans, budget and resources, and staff capacity. The METT comprises 42 indicators, from which a maximum score of 99 is derived. The METT has been applied at some of the Ramsar sites Cambodia previously, but not in the Cardamom Mountains Tonle Sap landscape. This indicator measures the Protected Areas in hectares, for which management has been improved. PAs

of the project to determine the baseline, and subsequent surveys undertaken annually.


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management is considered to be improved when there is an increase in a PA’s baseline METT score, and the score is above 42. The score of 42 was determined by assigning the lowest value to the METT indicators which represent minimum efforts in PAs management. The total area of PAs whose management has been improved will be measured through this indicator.

Visitors in selected community-based ecotourism sites

MoE will undertake various activities to support communities in developing ecotourism. These include investments in skills and capacity building of communities to manage ecotourism enterprises, and financing of good and infrastructure to support communities in developing ecotourism. In addition to work done through the project to improve the marketing of ecotourism in the CMTS, and improvements in the access to sites, the support to

Annual

Records of community-based tourism activities

MoE and DoE will identify community based ecotourism groups, and provide training for these groups in record management that will help ensure that data for this indicator can be collected as well as data on other important variables like income. DoE will review records of groups on an annual basis and will report this information to GDLC in MoE.

Rural Roads Department, MRD


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community based tourism activities is expected to increase the number of visitors to community sites. Community based ecotourism sites will be identified, and the annual number of visitors to each site will be determined. The baseline was determined using 2017 and 2018 data from MoT for Chiphat in Southern Cardamom National Park, and Central Cardamom National Park, Chrok La Eang Waterfall in Phnom Aural Wildlife Sanctuary, Anlong Svay in Phnom Aural Wildlife Sanctuary, Phnom Chreav in Phnom Aural Wildlife Sanctuary, Areng in Southern Cardamom National Park, and Prek Toal in Tonle Sap Multi Use Area. Target estimated based on estimate of 9% annual growth in visitors in year 1 and year 2 of the project, and 12% annual growth in visitors from year 3 of the


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project assuming infrastructure and capacity building spending is effectively implemented. 9% growth rate is based on historical tourism data, and is assumed to be the growth rate without the project's interventions. These growth rates were estimated using historical arrivals data.

Community groups with an increase of one or more on index of natural resources value addition

MoE will support capacity development (knowledge and skills) of community groups for engaging in non-timber forest product (NTFP) value chains. The outcome of this capacity development is expected to include: greater participation of community groups in NTFP value chains; development of NTFP related enterprises; and increase in the number of products that are generated from NTFPs. This indicator uses an index of natural resources value addition to assess the improved capacity of community groups in the

Biennial (Year 1, 3 and 5)

Business survey; Annual operating plans of GDLC.

A business survey will be developed to collect the information to derive the index score of natural resources value addition. The business survey will be conducted among community groups that will be identified at the start of the project. The business survey will be designed with the support of the M&E firm. Implementation of the survey will be undertaken by GDLC in collaboration with provincial MoE staff. This type of survey is not previously undertaken, but will

GDLC, MoE


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project area to add value to natural resources through engaging in new NTFP value chains, and developing new NTFP products. The index assigns a score to a community group, based on: (i) Establishment and organization: existence of operational NTFP enterprises. To be considered operational, the organization should have structure, governance, and accounting system, and a business plan. (ii) Number of value chains/ enterprises: increase in the number of value chains/ enterprises that community group is engaged in by at least one additional. (iii) Market diversification: increase in the number of NTFP products sold on the market, i.e. at least one additional product sold in the market. (iv) Sales: Increase in revenues from sale of NTFPs.

contribute to the results framework of MoE’s NPASMP, and annual operation plans of GDLC. The survey is expected to be undertaken biennially, with baseline information being obtained from an initial survey, and undertaken subsequently.


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Improvement in community capacity will be considered as an increase in index score by at least one (on a score range of 1 to 10). The proportion of community groups engaged through the project that show improvement in capacity will be measured by this PDO indicator. Target determined based on consultations with GDLC, MoE and discussions with stakeholders. Community groups to be identified from among the 36 CPAs in the CMTS PAs.

Proportion of beneficiaries of BDS that are women

MoE will implement specific activities to promote female entrepreneurship within communities in the CMTS. Female entrepreneurs are defined as women who own and manage a business. Specifically these activities will include: workshops and seminars for female entrepreneurs to provide information on business regulations and training as

Annual

Participation and satisfaction survey.

GDLC, MoE will develop a survey in collaboration with PDoE, and with the support of the M&E consultant. PDoE will implement the survey among female entrepreneurs in the target communities on an annual basis. The survey is expected to be undertaken

GDLC, MoE


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part of the BDS; integrating the specific challenges faced female entrepreneurs such as greater charges for unofficial fees due to women’s lack of knowledge and/or assertiveness in the design of BDS. This indicator will measure the actual participation of men and women in the BDS in targeted communities in the project area as evidence of access BDS.

annually, with baseline information being obtained from an initial survey, and undertaken subsequently.

Targeted community members satisfied with benefits of the project

This indicator measures the satisfaction of the project beneficiaries with the project activities. Project beneficiaries will be identified at the start of the project, and maintained as a database, that would help ensure that the beneficiaries that are surveyed are representation of the project beneficiaries, and that 50% of those surveyed are women.

Annually

Participation and Satisfaction Survey

Although GDLC will be responsible for reporting on this indicator, a consultant will help design and administer the survey in order to maintain objectivity. The survey is expected to be undertaken annually.

GDLC, MoE

ME PDO Table SPACE


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Monitoring & Evaluation Plan: Intermediate Results Indicators

Indicator Name Definition/Description Frequency Datasource Methodology for Data Collection

Responsibility for Data Collection

1.1 Cloud-based geospatial platform for integrating data and information for PAs planning and enforcement operational

MoE will be responsible for developing the cloud-based geospatial platform for integrating data and information for PAs planning and enforcement. The platform will integrate data and information that is critical for PAs planning and management for example biodiversity, land use spatial information, and systematically organize information collected by PDoE, rangers and communities for e.g. patrolling reports, illegal activities, and observations) that will support better planning, coordinating and implementing PAs enforcement. This platform will enhance the protected area and community protected area zoning processes and PAs enforcement. This indicator measures the

Annual

Review of MoE platform, beta version of platform, minutes of stakeholder consultations and service providers report.

GIS department in MoE will be responsible for reporting on progress of development of the web-based platform. The web-based platform will be publicly available on MoE’s website. As the web-based platform will be led by the GIS department, progress updates will be included in the annual work reports of GDEKI.

GDEKI, MoE


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operationalization of the platform. The platform will be considered operational when it has been developed according to design standards, is ready for use by stakeholders, and there has been capacity development of MoE staff to use the platform. The indicator will be measured as an index (a score of 0-5) based on stages including: development of beta versions, consultation, finalization, adoption by MoE, and training. Therefore the targets are the following: 0 – No action 1 – Beta version of platform developed 2 -Stakeholder consultation to test beta version of platform and discuss needed improvements/ enhancements 3 – Platform is finalized with guidelines for its use developed 4 – Platform is launched on MoE website. 5 – Stakeholders trained on


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the use of the Platform. Target score of 5 is the final step in the process.

1.2 Protected Areas enforcement strategy operational

MoE will be responsible for development of the Protected Areas (PAs) enforcement strategy and accompanying toolkit. The strategy will include the processes, roles and responsibilities, and institutional arrangements for PAs enforcement, and will guide and coordinate actions in all PAs, develop priorities and action plans. The toolkit will include guidance for: ranger patrolling; use of SMART approaches ; data gathering linked to the ISDS; collaborating with law enforcement including the judicial system; using drone, satellite, and remote sensing imagery and, telecommunications in forest monitoring. This indicator measures the operationalization of the

Annual

Review of annual work report of GDANCP

GDANCP will be responsible for reporting on the spatial forest monitoring framework. Progress of development of the framework and toolkit will be assessed according to milestones established at the onset of the activity. GDANCP will undertake a survey among stakeholders to assess use of tools introduced by the project for monitoring. Progress updates on the spatial forest monitoring will be included in the annual work reports of GDANCP.

GDANCP, MoE


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strategy. The strategy will be considered operational when MoE staff and other stakeholders involved in law enforcement like Wildlife Alliance and Conservation International are trained on the strategy and toolkit. The indicator will be measured as an index (a score of 0-5) based on stages including: drafting, consultation, finalization, adoption by MoE and training. Therefore the targets are the following: 0 – No action 1 – Strategy and toolkit drafted 2 – Stakeholders consulted on the strategy and toolkit 3 – Strategy and toolkit finalized 4 – Strategy is officially adopted by MoE with Prakas 5 – Stakeholders trained on strategy, toolkit and related equipment for spatial forest monitoring. Target of 5 is the final step in the process.

1.3 Share of targeted communities using innovative technologies in PAs monitoring

MoE is developing an information system and decision support for PAs

Annual

Field survey to assess use of

Field survey will be undertaken by GDANCP of MoE in collaboration

GDLC, MoE


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enforcement which will include digital technology to support monitoring of PAs management. MoE recognizes the significant role of communities as part of PAs management and enforcement, and accordingly will integrate communities in the PAs enforcement strategy, and provide training and tools that will allow them to participate in forest monitoring. Innovative technologies for PAs monitoring will be identified in the PAs enforcement strategy, and will include smart phone applications and SMS hotline that allow communities to share and report information on PAs monitoring. Target communities will be identified at the start of the project, and will receive training on PAs enforcement.

technologies in PAs monitoring.

with PDoE staff. This type of survey is not previously administered by MoE, and therefore will be developed with the support of the M&E consultant. The survey will be administered by GDANCP in collaboration with DoE staff. The survey is expected to be undertaken annually, with baseline information obtained from an initial survey and undertaken subsequently.


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1.4 Protected areas management plans adopted

Protected area management plan development is the responsibility of MoE, and guidelines for development of these are provided in Cambodia’s Protected Areas Law. This indicator measures the number of protected area (PA) plans that have been developed under the project and approved by MoE. The indicator will be measured as an index (a score of 0-5) based on stages of PA management plan development including: drafting, stakeholder consultation, finalization, approval and dissemination. Therefore the targets are the following: 0 – No action 1 – PA management plan drafted. The draft should include all of the content as guided by the PA Law 2008 Article 19. 2 – Stakeholder consultations on PA management plan 3 – PA management plan

Annual

Scoring based review of management plans, minutes of consultations and dissemination workshops

GDACNP is responsible for reporting on this indicator. This indicator is also included in the results framework of the NPSAMP and GDACNP is collecting data for this indicator.

GDANCP, MoE


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finalized 4 – PA management plan approved with Prakas by MoE 5 – Dissemination of PA management plan on MoE website, and stakeholder workshop held. The 7 PAs that comprise the target are: Central Cardamom, Southern Cardamom, Tatai, Phnom Aural, Phnom Samkos, Cardamom Biodiversity Corridor, and Tonle Sap Multiple Use Area. PAs must attain a score of 5 (Dissemination of PA management plan on MoE website, and stakeholder workshop held) for the indicator to be considered achieved.

1.5. Share of targeted CPAs with at least one woman in the CPA management committee

Official guidelines for CPA development in Cambodia promotes the participation of women in the management committees of CPAs. This is a gender indicator that measures the participation of women in

Annual

Review of CPA organizational structures

GDLC will be responsible for reporting on this indicator, and accordingly the reporting will be done as part of the annual work report of GDLC.

GDLC, MoE


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leadership roles in forest resources management. The project will support MoE in establishing CPAs, and it will be the responsibility of MoE to ensure that the participation of women in the process and on the CPA management committees are promoted. The indicator helps to assess the impact of the project in closing the gender gap related to women’s participation in community forest management. For this indicator, CPAs are considered to be developed when the following steps, as outlined in MoE’s CPA development guidelines are completed: 1. Participatory assessment and consultation 2. CPA establishment application is made to MoE 3. CPA structure is organized and management committee confirmed by letter of Commune/ Sangkat chief.

As this information is not regularly collected by GDLC, a stakeholder survey will be developed as part of the project, and administered by GDLC in collaboration with provincial DoE to collect the needed information. The survey is expected to be undertaken annually, with baseline information being obtained from an initial survey, and undertaken subsequently


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Baseline determined from MoE data on CPA organizational structure. The target is set at 50% based on discussions within MoE and with stakeholders. The CPA management committees are selected through an election process (Guideline on Procedure and Process of Community Protected Area(CPA) Establishment, 2017, No. 66) and therefore the project will undertake awareness raising to promote women the importance of women in community-level decision-making and include targeted training sessions for women on CPA management planning to help ensure their participation.

2.1 Potential tourist sites in selected PAs with infrastructure operational

MoE will develop infrastructure at tourism sites in the Cardamom Mountains and around the Tonle Sap Lake. These infrastructure include: signage, interactive centers, floating (demo) village, lake cruise facilities, floating

Annually

Field surveys. Annual work report of GDLC. MoE database of ecotourism sites in Cambodia. Geo-tagged

Field surveys undertaken by Ecotourism Department of MoE in collaboration with provincial MoE staff. This type of survey is not previously administered by MoE, but will provide

GDLC, MoE


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shelters/hide-out, forest canopy walkway, viewpoints and observation stations, shelters, demarcated trails (mountain biking/hiking), and safety infrastructure at waterfalls and cliff/overlook-sites. Infrastructure will be considered operational when: (i) Infrastructure have been completed according to design specifications and ecotourism plans. Climate change considerations will be included in the design specifications for infrastructure in order to ensure that it robust against extreme weather, i.e. the absorptive capacity. (ii) Operation and maintenance (O&M) plans for the infrastructure have been developed and communities trained in O&M. These infrastructure will be public infrastructure that will be co-managed by communities, it is therefore important that the co-management arrangements

monitoring.

information that will help enhance their database of ecotourism sites, and input to the Annual operating plans of GDLC. The survey will be designed by the Department of Ecotourism, with support from the M&E firm. The survey is expected to be undertaken annually, with baseline information being obtained from an initial survey, and undertaken subsequently.


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are clear, including financing needed for O&M, and that communities are well-capacitated for O&M. (iii) The infrastructure is functional. The actual use of the infrastructure will reflect its functionality. To be considered functional there must be reports of use by tourists.

2.2 New tourism enterprises with sufficient capacity

Tourism enterprises interested in setting up tourism operations in the Cardamom Mountain and Tonle Sap landscape will have access to skills training and capacity development through the Business Development Service (BDS). Participation in the BDS will require enterprises to be registered business entities in Cambodia, and to be registered with MoE. Capacity building packages will include: - Workshops and seminars on business planning, business plan development, taxes and

Annually

Field survey

GDLC will be responsible for reporting on this indicator as part of their annual work reporting. As data is not regularly collected on tourism enterprises, a survey will have to be developed to collect the specific information needed. The survey design will be supported by the M&E consultant. The survey will also include an assessment of capacities and skills developed as a result of the project, and be administered by GDLC.

GDLC, MoE


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legal issues, working with local communities, protected area legislation, environment, and waste management. - Networking opportunities with other tourism enterprises, and with impact investors.

The survey will be repeated subsequently.

2.3 NTFP value chains improved with new infrastructure, technology, and market access

The project will provide skills and capacity building training to communities, as well as equipment to develop NTFP value chains. This indicator measures the number of community groups that benefit from development of NTFP value chains.

Annually

NTFP value chains annual assessment

GDANCP is responsible for reporting on this indicator, and data for the indicator will be included in the annual work report of GDANCP. GDANCP will monitor and assess the uptake of recommendations (e.g. training of communities for value addition, development of guidelines and standard for NTFP processing) using a survey developed as part of the project.

GDANCP, MoE

3.1 Average travel time to potential tourism sites in selected PAs

MRD will undertake the upgrading of rural road networks that will help to improve access to project sites. With the upgrading of

Biennial (year 1, 3 and 5)

Travel survey; MRD GIS maps of rural road networks in

The travel survey undertaken by the Rural Roads Department of MRD. This type of information

Rural Roads Department, MRD


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roads, access to tourism sites will be improved, and the travel time to tourism sites is expected to be reduced. This indicator uses the estimated average travel time by car to potential tourism sites as a measure of improved access to potential tourism sites. The project’s actions will help to enhance the absorptive and adaptive capacity in resilience of the rural road infrastructure in the project sites. Roads will be improved so that they are climate resilient, which means that their design will help ensure that roads are not washed away by heavy rains, that adequate road drainage will be installed to prevent flooding, that slope stabilization will be in place in areas adjacent to roads, and that high temperatures will not result in surface cracking of the road.

Cambodia.

is not regularly collected by MRD, and therefore MRD will design the travel survey in collaboration with the firm contracted to support project M&E. The survey will be undertaken to establish a baseline, and undertaken biennially.


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ME IO Table SPACE


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ANNEX 1: IMPLEMENTATION ARRANGEMENTS AND SUPPORT PLAN

COUNTRY: Cambodia Cambodia Sustainable Landscape and Ecotourism Project

1. Institutional arrangements. Institutional arrangements for implementation will follow the Government’s institutional structure, with the MoE in the lead as the EA, and including the MRD as an IA for the related public infrastructure support. The MEF will oversee the financial services support. The EA and IA will establish PITs with experts and expertise from direct and relevant technical, administration, environmental and social safeguards, procurement, and finance units. Strategic direction and guidance for the management and operation of the project will be provided by a high-level PSC, chaired by the MoE. Roles, responsibilities, and procedures are detailed in the PIM.

I. Roles and Responsibilities

2. PSC. The PSC will deal with policy issues and legal and regulatory framework issues/decisions, provide strategic guidance, and support problem solving. It will also enable technical inputs and help ensure quality, coordination, and consistent strategies across various relevant departments within the MoE and MRD, as well as other related ministries. Semiannual meetings will discuss and decide on issues where policy, procedural, and/or interministerial cooperation issues are concerned. The PSC will be the last resort for solving conflicts and complaints that cannot be resolved by technical project teams or through the intervention of the PIT. The PSC meetings will be supported by the PIT and its secretarial support services.

Figure 1.1. Project Implementing Arrangements

3. Membership at the PSC under the MoE leadership includes the MRD, MEF, MAFF, MoT, Ministry of Water Resources and Meteorology, Ministry of Interior (MoI), Ministry of Land Management, Urban Planning and Construction, and Ministry of Culture and Fine Arts. Tourism associations will be added to the PSC to ensure that private sector contributes to coordination and implementation. Where and as needed, coordination and implementation support and advice will be requested.

4. PITs. PITs will be established at the MoE and MRD and will include technical staff to address practical and specialized issues arising during planning and implementation. The PIT of the MoE will be led by an assigned project director who will be responsible for overall coordination of project implementation, external communication including the agreed reporting to the World Bank, and


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consolidation of project progress and financial reports of the MoE and MRD. The PITs will include members from the main technical units involved in project implementation, including senior staff responsible for FM, procurement, M&E, and communication. Consultants and contract staff could, where and when needed, fill capacity gaps on the team. However, as the project is implemented through the existing government (MoE, MRD) structure, including the line departments of the IA and EA, the PITs will be limited in number but with efficient and effective personnel. The MoE, with its mandate for coordinating environmental protection programs, will be one of two ministries responsible for the preparation, coordination, implementation, and monitoring of project activities associated with PAs, biodiversity, ecotourism, pollution management, and climate change adaptation and mitigation. Key departments involved in project implementation include the GDANCP, General Department of Environmental Knowledge and Information (GDEKI), and GDLC.

5. The MRD will implement rehabilitation and upgrading works on rural roads and related rural infrastructure. The MRD will establish a PIT within its main responsible unit/department. The PIT’s tasks will include the detailed technical planning of any road upgrading. Implementation responsibilities for all rural roads upgrading, including procurement and quality assurance, will be the responsibility of the MRD’s PIT.

6. MEF. The MEF will play a key role in project oversight among ministries.

7. Subnational governments. Subnational levels of government will be supported and engaged through the national line ministries for the MoE and MRD, where relevant. Provincial staff of line departments will ensure coordination at the subnational level and are responsible for main field-level monitoring activities. Support for their mainly technical assignments will come from relevant PITs in the MoE and MRD; no project investments will go directly to any subnational institution or authority. Where and if necessary, they will be supported through TA/capacity building to facilitate and strengthen smooth project implementation.

Table 1.1. Implementation Arrangements for Each Component

Components Subcomponent Activities Responsibility

1. Strengthen Capacity for PAs Landscape Planning and Management

1.1: Information Systems and Decision Support

• Develop data portal/ISDS, including software, hardware, and capacity strengthening

MoE - GDANCP and GDLC

1.2: PAs Landscape Planning, Management and Enforcement

• Develop PA enforcement and forest spatial monitoring and reporting, framework, and strategy

• Improve forest patrolling/monitoring with equipment; training for MoE, PDoE, rangers, and communities

• Upgrade ranger office/stations to CPA multiple use centers • Renovate and upgrade PA centers to CPA multiple use

centers • Train the MoE, PDoE, rangers, and communities on

patrolling, participatory monitoring, and enforcement • Develop plans for PA management and CPA management,

PA business plans for ecotourism, and NTFP strategy • Train the MoE, PDoE, rangers on zoning, mapping,

sustainable landscape management, CPA management, PA business planning and implementation, and NTFP management



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Components Subcomponent Activities Responsibility

• Carry out zoning, demarcation, registration in selected areas


2.1: Strengthen Opportunities for Ecotourism Development

• Develop ecotourism guidelines, regulations, strategies, policies

• Develop BDS business and operational model and curricula • Train relevant ministries to manage BDS center (national,

subnational, training-of-trainers) • Support MoE/MEF on strengthening the enabling

environment for enterprises and communities • Train SMEs through workshops, forums • Prepare and deliver information, education, and

communication materials/activities to promote the responsible use of PAs and ecotourism

• Develop and finance ecotourism infrastructure packages • Develop and finance ecotourism equipment packages • Construct or upgrade ecotourism visitor centers


2.2: Promoting NTFP Value Chains

• Provide training to strengthen enterprises and communities in NTFP value chain development

• Invest in equipment for NTFP processing, packaging, and branding

• Construct NTFP processing and storage facilities

MoE - GDLC


• Rehabilitate and upgrade rural roads • Construct small-scale water and sanitation infrastructure

MRD

4. Project Management, Coordination, Monitoring, and Evaluation

• Facilitate project planning, implementation, and coordination

• Develop and implement project M&E • Provide support for procurement, FM, and safeguards • Provide general operational training

MoE, with inputs from MRD

8. M&E. The project will develop a dedicated M&E system for tracking project inputs, activities, outputs, and impacts across all components in all project districts. This M&E system will be part of the project MIS. Data collection will be done by line ministries’ staff in the project provinces. The PIT has overall responsibility for analysis and reporting, with support from a specialized M&E consultant. Additional M&E consultants will support the work of individual IAs.

II. Financial Management

9. An FM assessment was carried out in September 2018 to ensure that FM arrangements were acceptable and in accordance with the World Bank’s Policy and Directives: Investment Project Financing (OP/BP 10.00). The objective of the assessment was to determine the degree to which the MoE and MRD, assigned as the IAs, have adequacy of FM arrangements for implementation of the proposed project and the FM arrangements meet IDA’s requirements including budgeting, accounting, fund flow, internal controls, disbursements, financial reporting and audit arrangements, and the requirement of TA to support the FM function.

10. The FM assessment concluded that there are adequate FM arrangements both for the MoE and


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MRD to implement the project. These FM arrangements would be acceptable to the World Bank if the project can ensure the arrangements to be put in place (a) maintain adequate FM systems undertaken by the project FM team from the DoFA and DSF; (b) are capable of correctly and completely recording all transactions and financial information relating to the project; (c) facilitate the preparation of regular, timely, and reliable financial reports and statements; (d) safeguard the project’s assets; and (e) include auditing arrangements acceptable to IDA.

11. FM capacity and ministry project implementing agencies. The MoE and MRD had experiences in managing the World Bank-funded projects, of which those projects were implemented through different Project Implementation Units (PIUs). While using these specific PIU arrangements, the FM team of the DoFA and DSF did not engage in handling the project FM and, therefore, the FM team for this new project appeared to be a new client to the World Bank. Despite unfamiliarity with the World Bank requirements, the FM team has experience and adequate knowledge in managing the Government FM but limited experience in managing externally financed projects and programs and so this requires FM TA support to fulfil this FM arrangement for the project.

12. FM capacity and the risk assessment. The main risks/gaps analysis were identified (a) lack of experience of handling project finance, systems to capture receipt and reporting expenditures, and procedures to guide staff, which can lead to incomplete accounting records and slow start of disbursement of funds from the World Bank; (b) limited knowledge related to the use of computerized accounting software program, setting up chart of accounts to be aligned with the Government’s chart of accounts; and (c) delay in payments to contractors, suppliers, consultants, and service providers because of multiple smaller contracts spread over several areas, coupled with limited experience in managing donor partner’s funds. These are likely to increase risks of noncompliance and delays in submitting financial and audit reports to the World Bank. The overall FM risk is Substantial after the implementation of risk mitigating measures as detailed in the following paragraphs.

13. The risk mitigating measures and FM actions. To address the above risks/gaps (a) the project will assign an experienced finance team from the DoFA to handle the project FM and disbursement tasks; the project FM staff member needs to have clear segregation of duties, receive adequate FM and disbursement training, and the project FM Manual put in place to guide staff; (b) the project will put in place a computerized accounting system and chart of accounts to ensure all financial transactions are recorded on time to enable production of financial report and for auditing purpose; the national FM consultants will be recruited to support technical FM aspects with the intended purpose of capacity transfer; and (c) the project FM Manual will incorporate clear procedures on soft expenditures to control financial transactions and guide FM staff-related payments based on the contract terms and contract

payment register and FM staff will be given training on this.

14. FM start-up action plans. The MoE and MRD shall implement FM action plans to ensure that front-end activities are ready to minimize delays in the project start-up phase. The FM arrangements will include appointment of a project FM team, accounting, budgeting, funds flow, internal controls, reporting, and auditing arrangements. DAs at the NBC will be opened for the MoE and MRD to receive funds from the World Bank and funds should be available in the DAs at the beginning of Year 1 implementation. The FM team will receive project FM and disbursements hands-on training and technical support from the

national FM consultants.


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Table 1.2. Key FM Action Plans

No. Key FM Action Plans Responsible Entity Completion Dates

1 Assign experienced Government FM team with clear job description to manage the FM and disbursements of the project

MoE and MRD Completed

2 Recruit national FM consultants (with terms of reference to include FM capacity-building plan) to provide technical support to the FM team and internal audit agencies of the MoE and MRD; FM consultants start working on project

MoE and MRD 4 months after effectiveness

3 Finalize project FM Manuals (annex to PIM) and submit them for the World Bank’s NOL


4 Purchase and install accounting software (design chart of accounts for the project that is aligned with the Government’s chart of accounts) and FM team received training


5 FM team of the MoE and MRD received FM, disbursement, and Client Connection training

MoE and MRD/World Bank 1 month after effectiveness

6 Appoint the internal audit agencies of the MoE and MRD to carry out project audit annually with an internal audit work plan to be submitted to the project managers and directors


7 Appoint a private audit company acceptable to the World Bank to audit project expenditures yearly

MoE, MRD, General Department of International Cooperation and Debt Management (GDICDM)

6 months after effectiveness

15. FM team and segregation of duties. The assigned FM team from the MoE and MRD will have a clear division of labor to undertake FM and disbursement responsibilities for the project. The DoFA and DSF will have qualified and experienced project finance officers (heads of FM units) to undertake overall FM responsibility, which includes coordination and supervision for (a) annual work plan and budget preparation, (b) funds flow management, (c) accounting and reporting, and (d) internal controls and auditing. Each project finance officer should be assisted by a project accountant, a finance assistant, and a cashier, coming from the DoFA and DSF. Considering a scale-up of operations and limited FM capacity, there may be a requirement for national FM consultants to provide technical support in overall FM aspects. Ongoing training on FM will be needed during the implementation of the project. Both, the finance officer and the FM team members will benefit from FM and disbursement training.

16. Accounting system. The MoE and MRD will use the computerized accounting software to record all financial transactions and to produce timely and reliable financial information and for audit purposes. The accounting software will also make use of the chart of accounts which is compatible with the account codes up to 16 digits of the National Treasury of Cambodia. The accounting system will form part of the project FM system which has embedded segregation of duties in it. The imprest accounting system will also include cashbook/bank book and petty cash register. The financial report will be prepared on cash basis, in accordance with the Government’s requirement, and in alignment with the Cambodia International Public Sector Accounting Standards.


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17. Internal control procedures. The internal control and accounting procedures at the MoE and MRD will be based on national procedures, outlined in the Standard Operating Procedure /FM Manual and PIM. A clear set of internal control procedures and payments shall institute the project FM Manuals which comprise key elements: cash advances/petty cash, payments to contractors, suppliers, service providers, contract management, training categories and operating costs, and so on. The advance payments to the provincial offices will be included in the project FM Manual to be reviewed and approved by the World Bank. The project may subject to audit annually by the internal audit agencies of the Government. The internal audit agency of MoE and MRD will conduct project audit annually based on their audit work plan/ schedule to be submitted to their respective project managers and directors. Addition, review of internal controls as part of the regular supervision, may be carried out by the World Bank. FM procedures and guidance on soft expenditures will be documented in the FM Manuals and all project staff received finance induction and training on it. The PIM will include a clear FM procedure. The adoption of the PIM by MoE was completed on April 30, 2019.

18. Budget. Budget preparation will follow the national procedures, as outlined in the Standard Operating Procedures and FM Manual for all externally financed projects and programs in Cambodia issued by Sub-decree No. 74 ANK.BK, dated May 22, 2012, and the procedures documented in the PIM. Each IA will prepare its annual work plan and budget related to component expenditures and will present the annual work plan and budget (AWPB) to the MEF for approval and then submit it for the World Bank’s review to obtain ‘no objection’. The draft annual work plan and budget for the first fiscal year of the Project implementation will be furnished to the World Bank for review no later than one month after signing of the Financing Agreement. The project can finance 100 percent of eligible expenditures from IDA for all contract agreements including goods, works, consultants, training, and operating costs. The MEF will contribute counterpart funds only to cover project staff costs for the Government personnel who are working on the project, and payment will be transferred to the individual’s personal account. The specific budget preparation, execution, and monitoring process of the project will be documented in the project FM Manual and PIM to be approved by the World Bank.

19. Funds flow. This project has two sources of funds and to facilitate the implementation of the project activities, two DAs will be opened at the NBC to receive funds from IDA. The DAs will be denominated in U.S. dollar and the MoE and MRD are authorized to administer their DAs to finance eligible expenditures in accordance with the Financing Agreement and the approved annual work plan and budget. From the DA, each IA can (a) make payments directly to the national and foreign suppliers, contractors, consultants, and service providers and (b) transfer of payments/funds to local suppliers and service providers to facilitate payments of local eligible project expenditures made by the provincial project offices, if any. The General Department of International Cooperation and Debt Management (GDICDM) indicated that separate DAs for receiving counterpart funds will also be opened at the NBC to cover staff costs for Government personnel who are working on the project. Advance payments (per diem, travel, and associated costs) will be provided to subnational project staff for their participation in monitoring and supervision of the project activities.


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Figure 1.2. Schematic Presentation of the Project Funds Flow

20. Periodic financial reporting. Each IA will produce biannual unaudited IFRs and annual project financial statements. The biannual IFRs will be produced and submitted to the World Bank within 45 days after the end of each calendar semester. The IFRs and the annual project financial statements will be produced based on cash basis and requirements under Standard Operating Procedure/FM Manual.

21. External audit. The annual project financial statement is required to be audited annually by a private audit company acceptable to the World Bank. The audited financial statements and audited management letter will be submitted to the World Bank within six months after the end of each calendar year. The MEF will appoint a private audit company for the project through the audit bundling exercise managed by the MEF with terms of reference acceptable to the World Bank. The bill of payment for audit fee will be paid by the project fund and be charged to Component 4 under the MoE.

22. Disclosure of Information. The project will be required to disclose the audited project financial statements (annually) on the websites of the MoE and MRD. The World Bank will also disclose the audited project financial statements on the World Bank’s website according to the World Bank’s Access to Information Policy.

23. Project supervision plan. Based on the overall FM risk of the project, the World Bank will conduct a risk-based approach in supervising the project’s FM arrangements including field visits. The supervision will be conducted twice a year. In the first year, supervision will be carried out more frequently to enhance FM capacity and set up FM systems, and in the subsequent year supervision missions will be conducted twice a year to ensure that the project’s FM arrangements are operating as intended.

III. Disbursement

24. The initial advance will be made to the DA upon the effectiveness of the project, based on the DA ceiling and at the request of the MoE and MRD to the World Bank. Withdrawals may be made with the prior approval of the MEF for a DA ceiling up to US$1,200,000 for the MoE and US$900,000 for the MRD.


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The initial allocation of the DA advance will be based on the estimated cash requirements to meet the project expenditures for the first quarter of Year 1 budget of the project. This will allow the project to maximize the use of funds from the DA, with regular reporting of eligible expenditures.

25. The disbursement of loan proceeds will be made through submission of electronic withdrawal applications with supporting documents. This disbursement of funds will be made through submission of web-based application using the Client Connection website according to the additional instructions, in the Disbursement and Financial Information Letter. The electronic delivery of applications will be required to get prior approval from the MEF before furnishing the applications to the World Bank for payments.

26. The project will use transactions-based disbursement (statement of expenditures) and the following disbursement methods including (a) reimbursement, (b) advance, (c) direct payment, and (d) special commitment. Frequency of reporting eligible expenditures paid from the DA will be by calendar quarter. The project will follow the Loan Handbook for World Bank Borrowers, April 2017, and Disbursement Guidelines for Investment Project Financing, February 2017. The minimum value of applications is US$200,000 equivalent for the MoE and MRD for direct payments, reimbursements, and special commitment.

Table 1.3. Disbursement Categories (Allocation of IDA Credit Proceeds)

Category

Amount of the Credit Allocated

(in SDRa Equivalent)

Amount of the Credit (in US$

equivalent)

Percentage of Expenditures to

be Financed (inclusive of

taxes)

(1) Goods, works, non-consulting services, consulting services, Training, and Operating Costs, excluding costs associated with undertaking land registration in the prioritized PAs under Part 1 of the Project, under MoE’s Respective Part of the Project

18,350,000 25,472,000 100

(2) Goods, works, non-consulting services, consulting services, training, and operating costs under Components 3 and 4 of project for the MRD

18,150,000 25,188,000 100

(3) Emergency expenditures under Component 5 of project

0 0 100

27. Disbursement of Component 5 for emergency expenditures. Component 5 is for emergency response and there is a zero-fund allocation. The withdrawal of funds can be made under this zero component until the RGC has (a) declared that a crisis or emergency has occurred and the World Bank has agreed with the determination; (b) prepared and disclosed all safeguards instruments required for activities under Component 5 of the project and has implemented actions which are required to be taken under said instruments; (c) established adequate implementation arrangements, including a positive list of goods and/or specific works and services required for emergency recovery, satisfactory to IDA, including staff and resources for the purposes of said activities; and (d) prepared and adopted an ERM, acceptable to IDA, to be appropriate for the inclusion and implementation of activities under the zero component. The ERM has been documented in the PIM.


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28. Disbursement deadline date. The project will have a disbursement deadline date of four months

after the closing date of the project specified in the Financing Agreement.

29. Reimbursement expenses before effectiveness. The MoE and MRD will need to pre-finance the costs of start-up activities from their own source of funds to cover for advance procurement activities including, but not limited to, advertising expenses for Expression of Interest, Request for Proposal (RFP), Request for Quotations (RFQs), Invitation for Bids, and so on, in the estimated amount of US$4,000 (US$2,000 each for the MoE and MRD) between the date of signing the Financing Agreement and the effectiveness of the project. The eligible expenditure for these activities can be reimbursed by the project upon project effectiveness.

V. Procurement

30. Applicable procurement procedures. Procurement will be carried out in accordance with World Bank Procurement Regulations for IPF Borrowers, dated July 1, 2016, revised in November 2017 and August 2018. Procurement under national procedures will be carried out in accordance with Government’s Updated Standard Operating Procedures and Procurement Manual for All Externally Financed Projects/Programs, promulgated through Sub-decree 74, dated May 22, 2012, and subsequent amendments, which is issued pursuant to Article 3 of the RGC’s Law on Public Procurement dated January 14, 2012, subject to the additional provisions that will be included in the Procurement Plan.

31. Institutional arrangements for procurement. The procurement activities for Components 1 and 2 will be supported by the procurement unit of the MoE and the MRD, respectively, with the support of individual procurement consultant(s). The PIM will elaborate the details of procurement arrangements, including responsibilities of each ministry and procurement risk mitigation action plan. It refers to (a) the World Bank Procurement Regulations for IPF Borrowers (July 2016 and revised in November 2017 and August 2018) applicable to this project, (b) the PPSD and Procurement Plan, and (c) Public Procurement Law (January 2012) and Standard Operating Procedures including the Procurement Manual for all Externally Funded Projects/Programs in Cambodia (Sub-decree No. 74 ANK. BK of May 2012) of the RGC with the additional provisions for use of national procedures under the World Bank-financed projects in Cambodia.

32. Procurement capacity and risk assessment. The MoE and the MRD had implemented a few World Bank-financed projects and several other DP-funded projects, using separate PIU, based in the ministries’ departments managing the projects. The key identified procurement risks that may negatively affect the procurement implementation of the project include (a) limited knowledge and experience of the MRD and MoE staff with the World Bank’s Procurement Regulations that may cause project implementation delays and noncompliances; (b) possible delay in the procurement process during the project start-up phase because of slow technical inputs from concerned departments; (c) possible coordination challenges among IAs and their technical departments; (d) possible delay in internal clearance for the Bid Evaluation Committee/Consultant Evaluation Committee/Procurement Review Committee; (e) procurement of most of the consulting firms taking significantly longer time than scheduled; (f) informal business practices imposing potential negative impact on the procurement; and (g) governance risks associated with conflict of interest, fraud, and corruption, which may adversely affect the efficiency and effectiveness of the project implementation.


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33. Risk mitigation measures. The following risks and mitigation measures have been discussed and agreed with the counterparts including the following:

(a) Provide procurement training for the MoE and MRD staff, including initial training during project preparation and in-depth procurement trainings during project implementation and provision of procurement consultants to assist the MoE in carrying out procurement activities.

(b) Each IA will assign one focal person for implementation of STEP and monitoring the procurement tracking form.

(c) Ensure careful procurement planning and scheduling, with procurement advanced as much as possible.

(d) Monitor procurement using STEP.

(e) Provide closer coordination between ministry’s departments and follow up to get technical inputs on time.

(f) Each ministry will assign a focal person for coordination purpose within IA and across the ministries. The coordinating roles and responsibilities of these persons will be included in the PIM.

(g) IAs will agree on the service standard that will be included in the PIM and procurement tracking form.

(h) Procurement tracking and monitoring form in the Standard Operating Procedure/Procurement Manual will be used in addition to STEP.

(i) All firms who will be awarded the contracts will be required to register with concerned ministries according to the Cambodian laws and sufficient time will be provided to the firms for such registration.

(j) Provide enhanced disclosure of procurement information, including publication of the annual Procurement Plan and a quarterly summary of the contract award information for all procurement packages on the project website and in newspapers.

(k) Establish a procurement complaint-handling mechanism consistent with Procurement Rules and Regulations of the Government and World Bank.

Summary of the PPSD

34. Procurement scope under the project and procurement approach as identified in the PPSD. An estimated budget for all procurement activities financed by the project and governed by the World Bank Procurement Regulations for IPF Borrowers would be about US$42.39 million or 80 percent of the total project budget, which is US$53.16 million. Out of this estimated budget, about US$34.74 million would finance upgrading ranger stations to CPA multiple subcenters; constructing ecotourism infrastructure packages; demarcating PAs’ zoning; upgrading ecotourism visitor centers; constructing processing,


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packaging, and storage facilities for NTFPs; and improving access and connectivity (roads/bridges upgrading and rehabilitation). A total of US$7.48 million would finance all consulting services under the project and US$0.17 million would finance associated goods (office equipment, office furniture and project vehicles, and so on).

35. Based on the analysis in the PPSD, the large civil works (rehabilitation of rural roads and construction of tourism facilities) and design and supervision consulting services for civil works are considered to be of substantial risk because they are critical to the project and are of relatively large value. The procurement approach for works, goods, and consultant services is as follows:

• Civil works. The market approach for large works under the project is international because the works of large value will be very attractive to both the foreign and national/local contractors. Such an approach will also increase the level of competition and will allow the MoE and MRD to have better opportunities to select contractors who have sufficient qualifications/experience to successfully execute the works, and a higher probability of better value for money. The contractors are expected to be some foreign contractors for large civil works. The procurement approach for civil works are summarized in table 1.4.

Table 1.4. Procurement Arrangements for Civil Works

Attribute Selected Arrangement Justification Summary/Logic

Specifications Conformance Construction of ecotourism infrastructure packages; upgrading ranger stations to CPA multiple subcenters; PAs zoning demarcation; construction or upgrading of ecotourism visitor centers; construction of processing packaging, and storage facilities for NTFPs; and improving access and connectivity (roads/bridges upgrading and rehabilitation)

Contract type Traditional

Pricing and costing mechanism

Unit price

Price adjustments None, fixed price

Selection method Request for Bids (RFB) Multi-lots in each package

Market approach Type of competition 1. Open 2. International 3. National Number of envelopes/stages 4. Single envelope 5. Single stage

Pre/post qualification

Post qualification

Evaluation of costs Adjusted bid price Prices to be adjusted for any mathematical errors

Evaluation method Lowest evaluated cost For this type of work, the lowest evaluated cost is appropriate.

Domestic preference

No


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• Consultant services. The consulting assignments under the project include both firm and individual consultant assignments. The key consulting services of firms will be the detailed design and supervision for construction of rural road and tourism facilities. Table 1.5 describes the procurement arrangements.

Table 1.5. Procurement Arrangements for Consultant Services

Attribute Selected Arrangement Summary Justification/Logic

Specifications Performance It is appropriate for consulting services.

Contract type Traditional


Lump-sum or time based Lump-sum or time based will be determined as appropriate based on the nature of each consulting assignment.

Price adjustments Yes Price adjustment should be applicable for long term contracts (such as more than 18 months).

Form of contract (terms and conditions)

None specific Standard form of contract will be used.

Selection method RFP Direct Selection

RFP will be used for all firm consultant assignments. The individual consultants will be selected competitively.

Selection Arrangement None

Market Approach Type of Competition 1. Open, 2. International Number of envelopes/stages 3. Two envelopes 4. Multi stage

Pre/post qualification Short list

Evaluation selection method

1. Quality- and Cost-Based Selection (QCBS) 2. Quality-Based Selection 3. Selection Based on Consultants’ Qualifications (CQS)

QCBS will be used for relatively large firm consultant assignments (over US$300,000), while CQS will be used for smaller assignments.

Evaluation of costs Adjusted bid price

Domestic preference No

Related criteria Most advantageous proposal

• Goods. Goods required under the project are of relatively small value and are not complex in nature. Most of the suppliers for goods are expected to be the local suppliers. The procurement approach for goods and equipment are summarized in table 1.6.

Table 1.6. Procurement Arrangements for Goods


Specifications Conformance The goods are mostly of small value and are not complex.

Additional sustainability requirement

No


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Contract type Traditional Traditional type of contract is appropriate for this type of goods.


Lump-sum

Lump-sum

Price adjustments None, fixed price

Form of contract (terms and conditions)

None specific No special condition is needed.

Selection method RFB RFQ

Given that the goods are of simple nature and are of medium and small value, selection of RFB or RFQ method is appropriate.

Selection arrangement None

Market approach Type of competition

• Open

• International

• National

• No Competition - Direct Selection

Number of envelopes/stages

• Single envelope

• Single stage

Pre/post qualification Post

Evaluation selection method

Not applicable

Evaluation of costs Adjusted bid price

Domestic preference No

Evaluation method Lowest evaluated cost For these types of goods, the lowest evaluated cost is appropriate.

36. Procurement Plan. Based on the PPSD, the first 18-month Procurement plan for the project has been jointly prepared by the IAs and agreed by the World Bank.

37. Use of STEP. STEP, which is a web-based tool for procurement planning and tracking, streamlining and automation, and monitoring and reporting, is applicable to this project.

38. Prior review threshold. The procurement risk under this project is substantial after applying the agreed risk mitigation measures. The prior review thresholds by procurement types are as shown in table 1.7.

Table 1.7 Procurement Review Thresholds

Type of Procurement Estimated Contract Amounts

Works US$10 million

Goods, information technology, and non-consulting services US$2 million

Consultants: Firms US$1 million

Consultants: Individuals US$0.3 million

39. World Bank’s review and implementation support. The procurement supervision will be part of the semiannual project implementation support mission and procurement clinics/training based on the


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need. In addition to the prior review by the World Bank based on the prior thresholds, which are subject to change according to the result of risk assessment carried out during the project implementation, the World Bank will carry out the annual procurement ex post review on a sample of at least 10 percent of all post-review contracts financed by the project. STEP will help the World Bank monitor procurement progress and take appropriate supportive actions in due course. The Excel-based procurement tracking form of the Government will be used by IAs in addition to the STEP for the Government’s internal procurement monitoring.

V. Strategy and Approach for Implementation Support

40. Implementation support will respond to key risks identified for the proposed project—mainly relating to the inadequate knowledge and lack of experience of the PIT staff. Oversight and implementation support will also cover the project’s procurement, FM, and safeguards. The main strategy and approach for implementation support to manage the identified risks include capacity building for the PIT and PT and close project monitoring and supervision, especially during the first two years of project implementation. Mitigation measures have been proposed and discussed with the MoE and other IAs and their line departments. They will be adopted during project implementation.

41. Intensive monitoring and supervision. Technical and economic planning and implementation challenges and the risks of noncompliance in procurement, FM, and safeguards implementation will require intensive monitoring and supervision in the initial period. This will help identify issues on time and address them before they become major problems. Intensive monitoring and supervision will be maintained until the capacity of the project staff has been improved or the project’s TA team has proven to be functioning effectively.

VI. The Implementation Support Plan and Resource Requirements

42. The World Bank task team will provide intensive implementation support in the initial project years, focusing on the implementation of the various agreed risk management measures on technical issues, as well as fiduciary, safeguards, and governance aspects. In addition to (at least) two comprehensive implementation support missions, one or two interim missions will also be fielded depending on project needs. Intensive cooperation with counterpart staff during missions will provide an additional element of capacity building.

(a) Technical support is built into the resource requirements, with specialists brought in to support the implementation by working closely with the IAs and supervision consultants to (i) review and provide technical advice on designs and specifications (including the normal reviews of bidding documents) and (ii) review ongoing TA and physical works and provide advice, as needed.

(b) Specific attention will be given to the supporting the adherence to the Sustainability Management Framework, as articulated in annex 6.

43. A midterm review mission will be conducted, in the third year, to review implementation progress and assess the progress and challenges toward achieving the PDO, as well as identify any changes needed. At the latest, six months before expected project closing, an Implementation Completion and Results Report (ICR) review mission will be fielded to carry out a comprehensive


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assessment of the project and draft the World Bank’s ICR, as well as guide the MoE and the PIT in preparing the Government’s own ICR.

Table 1.8. Implementation Support Plan and Resource Requirements

Time Focus Skills Needed Resource Estimate

Partner Role

First 12 months

• Supporting quick setup of well-functioning project management

• Institutional capacity building

• Identification/prioritization of ecotourism sites

• Design of ecotourism management agreement models for private sector and CBET

• Design of various ecotourism infrastructure

• Design of connectivity and other rural infrastructure

• Technical and procurement reviews

• Consultancy and construction supervision

• Fiduciary (FM and procurement) training

• Safeguards training

• Sector specialists (policy, institutional, ecotourism, value chains, PA management, infrastructure)

• Procurement

• FM

• Safeguards

US$150,000 per year

Coordination for common approaches

Year 3–6 • Midterm review at the middle of Year 3

• Institutional capacity building

• Consultancy and construction supervision


• Procurement

• FM

• Safeguards

US$150,000 per year

Coordination for common approaches; consultation and feedback for midterm review

Closing Drawing lessons learned and mainstreaming of good practices

• M&E


US$130,000 Consultation and feedback for ICR

Table 1.9. Skills Mix

Skills Needed Number of Staff Weeks (per year)

Number of Trips

(per year)

Comments

Task team leader 6 2 Based in region

Co-task team leader 6 2 Based in region

PA management specialist (international) 2 2 International expert

PA management specialist (national) 8 2 Based in country


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Skills Needed Number of Staff Weeks (per year)

Number of Trips

(per year)

Comments

Ecotourism specialist 3 2 Based in country/region

Rural roads/infrastructure specialist 3 2 Based in country

Value chains (NTFPs) specialist 2 2 Based in region

Environmental specialist 2 2 Based in region

Social/gender specialist 2 2 Based in region

FM specialist 3 2 Based in country

Procurement specialist 3 2 Based in country

Communications specialist 2 1 Based in country

Operational support 12 n.a. Based in country


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ANNEX 2. WORLD BANK TEAM LIST

Name Role Specialization Unit

Bank Staff

Anjali Acharya Task Team Leader (ADM Responsible) Environment GENE2

Maurice Rawlins Task Team Leader Natural Resources GENE2

Latharo Lor Procurement Specialist (ADM Responsible) Procurement GGOPP

Sophear Khiev Financial Management Specialist Financial Management GGOEP

Anders Jensen Sr. Monitoring and Evaluation Specialist M&E GENOS

Ashraf el Arini Sr. Environmental Specialist Climate change GENE2

Bunlong Leng Sr. Environmental Specialist Environment safeguards GENE2

Lyden Kong Program Assistant Support EACSF

Mei Wang Senior Counsel Legal LEGES

Maria Dumpert Environmental Consultant Sustainable development GENE2

Marivi Amor Jucotan Ladia Social Development Specialist Social safeguards GSU21

Mark Austin Program Leader Technical adviser EACMM

Martin Henry Lenihan Sr. Social Development Specialist Social safeguards GSU02

Mudita Chamroeun Sr. Rural Development Specialist Rural development GFA02

Narya Ou Program Assistant Support EACSF

Thao Thi Do Finance Officer Disbursement WFACS

Thu Ha Le Associate Counsel Legal LEGES

Veasna Bun Sr. Infrastructure Specialist Transport GTR02

Werner Kornexl Sr. Environmental Specialist Forestry GENE2

Wouter Schalken Sr. Private Sector Development Specialist Ecotourism GFCMT

Andre Aquino Sr. Environmental Specialist Peer reviewer GENA3

Daniel Mira Salama Sr. Environmental Specialist Peer reviewer GENA1

Philippe de Meneval Lead Private Sector Development Specialist Peer reviewer GCFPN

Stephen Danyo Sr. Environmental Specialist Peer reviewer GENE2

Extended Team

Conservation International

Consultant (Firm) Technical support

Neth Baromey Consultant Ecotourism

Arnan Araza Consultant GIS

Anna Spenceley Consultant Economic and financial analysis

Nuppun Consultant (Firm) NTFP and value chain analysis

Nalin Kishore Consultant Forest governance

Chenda Sem Consultant Gender

Nanda Gasparini Sharples Consultant Social safeguards


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ANNEX 3: ECONOMIC ANALYSIS AND METHODS

1. Overview. This annex presents the economic analysis for the Cambodia Sustainable Landscape and Ecotourism Project. The analysis uses a cost-benefit analysis to calculate ERR and its corresponding NPV. The PDO is to improve the management of PAs, ecotourism, and NTFPs in selected landscapes. The project description outlines multiple climate change adaptation and mitigation co-benefits. The project is expected to benefit local communities through promotion of conservation-compatible livelihood activities in tourism, agriculture, and value-added processing, as well as improved skills. Communities will also benefit from increased quality of the natural resource base, such as clean water. The Government and the communities will benefit from capacity-building activities, knowledge exchanges, improved regulations, and management of CPAs; additional sources of sustainable financing; and revenue from increased ecotourism activities.

2. Data and information. This annex presents an analysis of the expected economic benefits generated by the proposed project, based on the outlined assumptions, compared to the costs. The structure, benefit streams, and project costs are used from the PAD (Report No: PCBASIC0129817, P165344 version Jan 31_d2), updated cost table (P165344_CostTab_v5.2_03.04.19), and an updated GHG Analysis (dated March 21, 2019). The existing available data were supplied by the World Bank task team to conduct the analysis, and no primary data collection was undertaken. Where data gaps remain, a number of assumptions have been developed or data transferred from similar locations. The corresponding Excel sheet provides a full list of data sources and calculations.

3. Identified benefits streams. The ex-ante economic analysis focused on three benefit streams identified in the PAD to assess overall project feasibility.

• Tourism benefits. The project will increase access to project sites from main hubs through improved infrastructure, increasing the number of visitors. It will develop a number of new tourism activities in project sites (visitor and interpretation centers, hiking trails, tourism facilities), increasing both the length of stay of each visitor and their daily spending (as outlined in annex 5). Increased income in the beneficiary communities will lead to greater taxation revenue for the Government. There will be multiplier effects of the tourism spending in the country and in the target landscapes.

• Community and resilience benefits. The project will focus its support on the development of the NTFP value chain, providing technical support and training, as well as construction of processing, packaging, and storage facilities. It is expected that 5,200 households or approximately 25,000 people in the project sites will be supported by these interventions. Household benefits will be in the form of increased income; employment; and skills from interventions on climate-friendly rural development activities, climate-smart agriculture, and links to sustainable value chains. There will also be tangible rural household adaptation/resilience co-benefits because of increased availability of environmental services (such as water access, food, fiber, and less extreme weather). There is also the benefit of reduced uncertainty, variability of returns, and average ‘losses’ because of poor practices or rainfall variability.

• Ecosystem service benefits include both quantifiable and less tangible benefits. The project will support PA management planning and enforcement at seven sites, which will reduce


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forest loss cover in more than 2 million ha. Other benefits include improved water quality and quantity, improved habitat for biodiversity habitat, and protection of wildlife. These benefits can be described qualitatively and serve as an added increment of benefits beyond what can be readily counted.

4. Other benefits. A range of other intangible and indirect economic benefits will likely result from the project. For example, the project is expected to reduce degradation and would have a positive effect on soil conservation and reducing soil erosion. Beyond these direct benefits, the project should increase local generation of environmental services, such as improved water quality; reduction in climate hazards such as flooding and drought; and increased quality of habitat to sustain biodiversity. Beyond income effects associated with livelihoods, the project will likely produce indirect benefits among the population of the area, including increased resilience to external shocks, improved nutrition, and enhanced governance effects, including strengthened self-governance capacity of communities and community groups, which could then lead to improved access to and delivery of public services, such as improved schooling and public infrastructure. Therefore, a number of benefits are not accounted for in this analysis and hence should be considered a conservative estimate.

5. Costs. The project costs are US$50.66 million. This is the cost of the investment in interventions over the life of the project from 2020 to 2025.

6. Time horizon and discount rate. The economic analysis focused on the expected benefits and costs over the life of the project for a total period of 20 years. Some benefits (for example, increased tourist spending and income growth from NTFP value addition) will occur only after the assessment and construction phases, with significant benefits being experienced only after the project closes. The analysis was conducted using a range of social discount rates from low values (that tend to place more weight on distant future benefits) to higher values (that place more weight on the near-term costs), consistent with similar environmental projects.

7. Economic assumptions and scenarios. A spreadsheet model was developed to compare the stream of benefits and costs under various scenarios using NPV analysis. ‘With project’ and ‘without project’ scenarios are examined to assess the incremental benefits generated by the project. In the ‘without project’ scenario, in the target areas, the environmental situation is likely to continue to decline, with continued forest loss and degradation, declining quality of soils and agricultural output, and continued high emissions of GHGs. Poor access to tourism sites and limited tourism options would limit both the number of visitors, as well as the length of their stay and daily spending in these destinations. Communities and smallholder farmers would continue subsistence agricultural practices, with low productivity and value added, and limited diversification toward other economic opportunities. In these conditions, project interventions would be considered positive even if they only slowed the continuing negative trends. The analysis compares the balance of the ‘without’ and ‘with’ project scenarios for each benefit stream, discounted over the 20-year time horizon (using low, medium, and high discount rates) to determine the value addition of the project in relation to its financial input. Explanations of the scenarios developed for each benefit stream are outlined in the following paragraphs.

8. Scenario - Tourism benefits. Tourism benefits are quantified primarily based on expected changes in visitation data of tourists at project sites, average daily spending, and average length of stay over a 20-year time horizon. Visitation data to project site areas are used where available, averaged over the three-year collection period. Average tourism spending and average stay length are derived from data provided


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from studies conducted at project sites. Data were primarily available from the MoE reports and World Bank task team.

9. The ‘without project’ scenario assumes that visitation continues at an estimated 9 percent annually over the project period, based on historical arrivals data at ecotourism sites nationally, over the preceding seven years. It assumes that spending per tourist remains constant (in real prices) in the absence of any infrastructure and capacity improvements (currently US$37.88 per day). The average length of stay continues to increase according to national historical growth rates (0.3 days increase over the project period), from a baseline of 2.5 days.

10. The ‘with project’ conservatively estimates a 3 percent annual visitation growth above the ‘without project’ projections, starting in Year 3 of the project (assuming infrastructure and capacity building spending is effectively implemented). It projects an annual 5 percent increase in overall tourist spending starting in Year 3, and the average length of stay increases by 1.5 days from a baseline of 2.5 days. This analysis is intentionally conservative and expects results beyond the projections considered, given the extremely low daily spending and length of stay baselines. Furthermore, multiplier benefits of the tourists’ spending on local food, transport, and lodging and the employment created are not quantified in this analysis as no value chain analysis (VCA) data were available but represent an additional stream of benefits that helps ensure that the overall conclusion is based on conservative assumptions. Under these assumptions, over a 20-year horizon, the project could generate net benefits of US$253 million with a benefit-cost ratio of 8.66:1.

11. Scenario - Community and resilience benefits. The project will provide support, TA, and training to broaden livelihood opportunities in climate-friendly production techniques and access to markets for 5,200 beneficiary households, representing approximately 25,000 rural people. Production of NTFPs can account for up to 40 percent of total household income for rural communities. Currently, rural households earn US$381 per capita annually (in 2016), significantly less than the national average.

12. The ‘without project’ scenario assumes that land degradation will continue resulting in reduced annual household earnings, estimated at 1 percent annual production loss, according to local estimates. Under the ‘with project’ scenario, the analysis assumes that production loss because of land degradation will be avoided, as land is restored incrementally up to 5,191 ha over the project period. Furthermore, the value of sales of NFTPs (up to 40 percent of total income) will increase by 10 percent because of improved access to processing, packaging, and storage facilities (based on transferred estimates from similar NTFP projects). Under these assumptions, over a 20-year time horizon, the net benefits would generate US$28.2 million in additional income with a benefit-cost ratio of 8.59:1.

13. Any secondary, spillover, or long-term effects triggered by increased incomes, such as better access to health services, improved education, or overall positive impacts on the economy, are not estimated. Any reinvestment or growth beyond the overall earnings per year has not been assumed.

14. Scenario - Environmental services: Emission reduction benefits. The value of emission reductions is estimated based on an updated GHG analysis (dated March 21, 2019), using data from the Cambodia’s Initial Forest Reference Level under the UNFCCC Framework report and estimations of GHG emissions reductions were modelled using the Food and Agriculture Organization (FAO) EX-ACT model. The analysis follows the ‘with’ and ‘without project’ scenarios to model the reduction in rate of forest loss and


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degradation, which concludes that emission reductions would be in the range of 56,758 tCO2eq per year if deforestation is reduced from 1.5 percent to 0.75 percent annually.

15. To place a value on the social/global/economic benefits of reducing carbon emissions, the World Bank guidance on the shadow price/social value of carbon was followed. The recommended valuation ranges from US$40 to US$80 per ton of CO2e in 2020, which is substantially above market prices of carbon being paid in the foreseeable future but reflects the value from the long-term view of stabilizing the climate and preventing potentially disastrous outcomes. These figures may seem high relative to prices seen in current markets, but these values (‘shadow prices’) are designed to reflect the negative implications of GHG emissions for the global climate and economy. This is not an optimistic price path but instead reflects the expected level of future damages/costs of climate change because of continued GHG emissions. In other words, the shadow price reflects what society should be willing to pay (per ton of CO2) to prevent/avoid the future costs that will be imposed by climate change.

16. Based on the abovementioned scenario, reduced GHG emissions of 56,758 tCO2eq per year at US$40 per tCO2eq would generate benefits of nearly US$ 7.8 million over a 20-year period with a benefit-cost ratio of 5.98:1.

17. A summary of the economic benefits generated based on the described scenarios is provided in table 3.1, over a 20-year time horizon.

Table 3.1. Benefits and Costs of the Project (US$): 2020 (Y1) to 2025 (Y6)

Benefit Stream (US$)

Y1 Y2 Y3 Y4 Y5 Y6 TOTAL

Tourism Without project

1,697,664 1,956,302 2,253,224 2,593,978 2,984,904 3,433,245 14,919,317

With project 2,858,932 3,264,658 3,891,586 4,638,100 5,526,881 6,584,889 26,765,047

Community and Resilience

Without project

2,268,629 2,318,692 2,369,859 2,422,155 2,475,606 2,530,236 14,385,177

With project 2,459,591 2,712,750 2,979,729 3,261,157 3,557,690 3,870,012 18,840,930

Ecosystem Services

Balance (with-

without project)

2,270,320 2,270,320 2,270,320 2,270,320 2,270,320 2,270,320 13,621,920

Total Benefits

(With-without)

3,622,550 3,972,734 4,518,551 5,153,444 5,894,382 6,761,741 29,923,402

Total costs 2,558,600 8,794,800 14,428,300 12,095,800 11,148,800 1,303,700 50,330,000

Figure 3.1. Summary of Net Economic Benefits over a 20-year Time Horizon

Source: Economic analysis report for the Cambodia Sustainable Landscape and Ecotourism Project


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Benefit Stream (US$)

Y1 Y2 Y3 Y4 Y5 Y6 TOTAL

Net benefits 1,063,950 (4,822,066) (9,909,749) (6,942,356) (5,254,418) 5,458,041 (20,406,598)

18. Analytical results and sensitivity analysis. Table 3.1 shows that over a short project period the return on investment is not realized, based on the abovementioned parameters of the analysis. However, it is expected that economic benefits generated by the project will increase significantly beyond the project period (as outlined in figure 3.1), totaling US $363 million over the 20-year time period. The ex-ante economic analysis calculated the impact of the project over a 20-year time horizon using low, medium, and low discount rates. Determining an appropriate discount rate is problematic as the decision is largely subjective. As a result, the analysis has provided three scenarios based on discount rates of 3 percent, 9 percent, and 15 percent, representing a range of low to high rates. Table 3.2 displays the NPV (accounting for a 20-year benefit stream) depending upon the selected discount rate.

Table 3.2. NPV of the Project over 20 Years

Scenario Discount Rate (%) NPV (US$)

Low 3.00 185,983,408

Medium 9.00 60,557,235

High 15.00 9,249,215

ERR (NPV = 0) 16.88

19. Table 3.2 shows that estimated benefits exceed costs in the longer term, when discounted by low and medium discount rates. It is important to reinforce that the assumptions are intentionally extremely conservative due to lack of economic data on the proposed sites and the low existing baselines.

20. A sensitivity analysis was applied to assess the effects of varying key assumptions, notably the social/global value of carbon and tourism interventions (daily spend of a tourist and length of stay). Community and resilience benefits streams were not included as it represents a relatively small proportion of the total economic benefits (9 percent). These quantitative assessments help demonstrate that the project produces substantially positive net benefits under a wide range of reasonable price and performance scenarios. The results of the sensitivity analysis are displayed in table 3.3.

Table 3.3. Standard Sensitivity Analysis of Project NPV

Assumption Baseline Adjustment ERR (%)

Daily spend of a tourist (US$) 5% above US$38.77 Decreases by 25% 14.90

Increases by 25% 18.60

Visitor length of stay (Days) 1 day above 2.5 days Decreases by 0.5 days 15.20

Increases by 0.5 days 18.40

Carbon price (US$) US$40 tCO2eq Decreases by 25% 16.20

Increases by 25% 17.60

21. The sensitivity analysis shows that none of the adjusted variables, even when combined, exceeds a 2 percent change in the ERR.


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22. Conclusion. Subject to the above assumptions and uncertainties, results suggest that the project is economically justifiable over the 20-year time horizon. The ERR is 16.88 percent and the NPV equals nearly US$186 million (at a 3 percent discount rate). It should be noted that the NPV provided is a conservative estimate, as it

• Assumes land degradation would only continue at a rate of 1 percent per year, rather than the mean of 4 percent applied in table 3.3;

• Does not account for any tourism demand above 3 percent annual growth plus inflation or the indirect multiple effects of visitor spending on livelihoods of neighbouring communities; and

• Does not accurately track the value of specific community and resilience benefits due to a lack of provided data.

23. It would be realistic to assume that the project would have a positive impact on all three factors, thereby returning a higher a NPV at the project evaluation stage.

24. Limitations of the NPV analysis. Determining the real revenue value of project sites as well as the community-based economic activities within and surrounding project areas is the greatest constraint to this analysis. It is important to note that this analysis is based on data provided to the analyst based on specific requests for quantitative information. Data provided were very limited and incomplete and have not been subject to validation or ground-truthing. As a direct result, the analysis has aimed to significantly reduce the original assumptions of the impact of the project. However, it would be important to address these data challenges during the implementation stage to validate the NPV assumptions.

25. Recommendations for monitoring changes in the NPV. It would be recommended that the following three components (with their relevant activities) be included to systematically account for the changes in the project. This would also support the economic analysis at the project completion phase.

i. Revenue generated from nature-based tourism within selected project sites

• Data collected on the number of visitors at project sites, entrance and activity fees, any concession fees payable by the private sector, penalties, and fines. These could be built into an overall data management system to monitor changes in visitation at the project sites.

• VCA completed at selected project sites at the beginning, midterm, and completion stages to determine changes in average tourist daily spending.

ii. Revenue accruing to communities living in and around the project sites through enhanced livelihoods

• Information from the VCA should also map links within the local communities, changes in and values of community-based economic activities (that is, tourism, agriculture, and NTFP).


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• Socioeconomic assessments should also be completed at similar intervals as the VCA to determine how livelihoods have changed during the project period. It will also inform the midterm review process if the current approach of the project is making a significant impact.

iii. The value of ecosystem services generated at project sites

• A baseline assessment of valuing ecosystem services could be completed within each project site. Which ecosystem services have the greatest opportunity for improvement should be determined as well as feasibility studies on the market viability of trading specific ecosystem services, thereby both providing additional income-generating opportunities for communities and incentives to reduce existing levels of deforestation. This is especially useful for water storage and flow retention as well as carbon initiatives.


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ANNEX 4: ADDRESSING CLIMATE CHANGE AND DISASTER RISK

A. Climate and Disaster Risk Screening

1. Cambodia ranked as the 8th most disaster-prone country by the United Nation’s World Risk Index (2015). Vulnerability to floods and droughts on a seasonable basis is considered by the Government to be a key driver of poverty. Increased intensity of rainfall during monsoon seasons, coupled with rising sea levels can further exacerbate vulnerability to floods. Mean annual temperature is projected to rise across Cambodia by 0.7°C to 2.7°C by the 2060s, exacerbating vulnerability to droughts. Based on the scenario of a 2°C temperature rise by 2050, estimates suggest that climate change will reduce Cambodia’s GDP by at least 1.5 percent in 2030 and 3.5 percent in 2050. The impacts of climate variability and change (temperature and rainfall) on Cambodia’s forest are not well documented. However, using trends from other countries with similar forest types, it is expected that drought and high temperatures will affect the growth and productivity of forests and can affect overall forest moisture content that can lead to drying and increase susceptibility to fires.

2. Fundamentally, the project seeks to promote transformation in the way natural resources are used and managed in Cambodia. It will thus contribute to reversing degradation of forestry and fishery resources and increasing the economic returns from these resources in the CMTS areas. The hypothesis underlying the project is that by increasing the value of natural resources for economic growth and for resilience and making these values explicit, incentives are created for conserving the resources. The incentive for conserving the resources, however, need to be complemented by a robust management. Accordingly, the PDO is “to improve protected areas management and to promote ecotourism opportunities and non-timber forest product value chains in the Cardamom Mountains-Tonle Sap landscape”. The proposed project will support investments in a manner that is consistent with the landscape approach. This means that investments contribute to common outcomes, are spatially connected across the landscape, and are designed to limit negative impacts on ecosystem integrity while at the same time maximizing development benefits. The investments supported by the project therefore include the development and enhancement of climate-resilient infrastructure and production systems, adoption of sustainable landscape management practices and ISDS tools, and institutional strengthening at the national and subnational levels.

3. The project activities will be situated in the Cardamom Mountains and in areas around the Tonle Sap Lake. The CMTS landscape, which includes one of the world’s most productive freshwater fisheries and the largest protected forest in Indochina, is a global biodiversity hotspot. Forests in the Cardamom Mountains provide ecosystem services that underpin economic activities in the area. Water provision and slope protection services support agriculture in areas downstream of the Cardamom Mountains, including in Pursat, Battambang, and Kampong Chhnang, and provide freshwater and nutrients to support fisheries in the Tonle Sap Lake. An estimated 6.2 billion m3 of high-quality freshwater is provided by the Central Cardamoms Protected Forests.

4. This project contributes to the enhanced management and development of natural resources through value addition. The types of investments include (a) eco-tourism infrastructure - an interpretation center (for example, building), floating (demo) village, lake cruise facilities, floating shelters/hide-out, forest canopy walkway, viewpoints and shelter, demarcated trails (mountain biking/hiking), and safety infrastructure at waterfalls and cliff/overlook sites and (b) post-harvest infrastructure for NTFP processing, for example, medium-size processing factories.


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5. The impacts of climate variability and change on Cambodia’s forest are not well documented. However, using trends from other countries with similar forest types, it is expected that drought and high temperatures will affect the growth and productivity of forests and can affect overall forest moisture content that can lead to drying and increase susceptibility to fires. It is not possible to project future trends because of the lack of information.

6. Outcome/service delivery. The objective of the project is to improve natural resources management and related value addition in selected landscapes. The project will support investments that include the development and enhancement of climate-resilient infrastructure and production systems; adoption of sustainable landscape management practices and ISDS tools; and institutional strengthening at the national and subnational levels. This project is therefore expected to significantly enhance Cambodia’s ability to plan for climate change in natural resources management.

Table 4.1. Summary of Exposure to Climate and Geophysical Hazards at Project Location

B. GHG Accounting Analysis

7. This section outlines some of the key assumptions to estimate the net and gross GHG emissions expected from implementation of the project.


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Data and Information

8. Data for the analysis were extracted from Cambodia’s Initial Forest Reference Level under the UNFCCC Framework report, analytical work undertaken under a Program on Forest (PROFOR)-funded grant for modeling forest ecosystem services in the Cardamom Mountains, and several studies compiled by Sasaki et al. (2016).48 Other references are cited.

Model

9. Estimations of GHG emission reductions as a result of the project were modeled using the FAO EX-ACT model. The use of EX-ACT complies with the World Bank’s GHG Accounting Forest Sector Investment Projects Guidance Note (version 1.3).

Project Description

10. Project area. The project is situated in the CMTS landscape of Cambodia. The project will support development and implementation of PA management plans in seven PAs (total - 2,029,199 ha) in this landscape, which will help reduce forest degradation; see table 4.2.

Table 4.2. PAs Targeted in the Project Areas


Central Cardamom National Park 401,313

Southern Cardamom National Park 410,392

Phnom Sankos Wildlife Sanctuary 333,750

Phnom Aural Wildlife Sanctuary 253,750

Tatai Wildlife Sanctuary 144,275

Tonle Sap Biosphere Multiple Use Area 316,250

Cardamom BCC 169,469

Total 2,029,199

11. The PAs have a combination of evergreen forest and tropical moist deciduous forest, and the average rate of forest loss is estimated at about 1.5 percent per year. It is assumed that with project interventions, those activities that cause forest degradation will be reduced, and the annual rate of forest loss would decline to about 0.75 percent.

12. The EX-ACT coefficients associated with the two key forest types are in table 4.3.

Table 4.3. Coefficients Used for EX-ACT Analysis

EX-ACT Coefficients Tropical Evergreen Forest (tC/ha)

Tropical Moist Deciduous (tC/ha)

Above-ground biomass 96.2 95.1

Below-ground biomass 27.8 28.9

Litter 13.6 12.0

Dead wood 27.2 14.1

Soil carbon 66.0 66.0

48 Sasaki, et al. 2016. “Forest Reference Emission Level and Carbon Sequestration in Cambodia.” Global Ecology and Conservation 7: 82–96.


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13. The climate is classified as tropical monsoon, and precipitation averages 1,400 mm.49 Soil types in the landscape are mainly sandy acid lithosols in the Cardamom Mountains and lacustrine alluvial soils around the Tonle Sap.50

Project Activities

14. The project will undertake activities in PAs of the CMTS to support zoning, PA management plan development, boundary demarcation, and land registration of PAs’ zoned boundaries, specifically, the following:

• Zoning will be undertaken in all PAs of the CMTS except the Cardamom BCC.51 A preliminary map of zones was developed as part of a joint exercise between Wildlife Alliance and the MoE. This activity will build on the preliminary zone map, by integrating additional biophysical spatial information through the ISDS and undertaking additional consultations with stakeholders in PAs. Wildlife Alliance and Conservation International are working in Southern Cardamom National Park, Central Cardamom National Park, and Tatai Wildlife Sanctuary and have already held consultations with communities on zoning.

• PA management plans will be developed for Southern Cardamom National Park, Central Cardamom National Park, Phnom Sankos Wildlife Sanctuary, Phnom Aural Wildlife Sanctuary, Tatai Wildlife Sanctuary, Tonle Sap Multiple Use Area, and Cardamom BCC. These PAs were selected for development of management plans for several strategic reasons: (a) these PAs together comprise 81 percent of the CMTS PAs’ land area, and bringing these areas under MoE approved management plans will be a significant step toward improving management of PAs there; and (b) the work of DPs in these PAs have helped with the readiness of communities and stakeholders in these PAs for PA management planning.

• Boundary demarcation will be undertaken in Tatai, Phnom Sankos, and Phnom Aural Wildlife Sanctuaries. The MoE has prioritized these PAs for boundary demarcation given their importance as wildlife sanctuaries and the need to prevent encroachment, destruction, and disturbance of habitats.

• Land registration of zone boundaries will be undertaken in Phnom Sankos and Phnom Aural Wildlife Sanctuaries. The MoE has prioritized land registration for these areas given the threats of land encroachment and habitat disturbance and destruction already experienced there.

Results of Analysis

15. The analysis of GHG emissions reductions used the ‘Land use change’ component of EX-ACT. The total GHG emission reduction due to the project is estimated at 1,702,747 tCO2eq or 56,758 tCO2eq per year. Results are presented in tables 4.4, 4.5, and 6.

49 http://www.fao.org/nr/water/aquastat/countries_regions/KHM/KHM-CP_eng.pdf. 50 http://www.fao.org/docrep/010/ag125e/AG125E07.htm. 51 BCCs are not zoned.

http://www.fao.org/nr/water/aquastat/countries_regions/KHM/KHM-CP_eng.pdf

http://www.fao.org/docrep/010/ag125e/AG125E07.htm


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Table 4.4. Estimated Fluxes in GHG Due to Project Activities

Components of the Project

Gross Fluxes (GHG in tCO2eq) Result Per Year (GHG in tCO2eq)

Without With Balance Without With Balance

Land use changes

Deforestation 2,505,370 802,622 −1,702,747 83,512 26,754 56,758

Per hectare 1.23 0.40 −0.84 n.a. n.a. n.a.

Per hectare per year 0.041 0.013 −0.028 n.a. n.a. n.a.

Note: n.a. = Not Applicable.

Table 4.5. Share of GHG Emission Fluxes Due to Project Activities by Gas Type

Components of the Project Share Per GHG of the Balance

Land use changes All GHG in tCO2eq

CO2 N2O

Biomass Soil

Deforestation −1,390,878 −311,616 −1,327

Per hectare −0.69 −0.15 0

Per hectare per year −0.023 −0.005 0.0

Table 4.6. Confidence Estimates for the Analysis

Uncertainty level

(GHG in tCO2eq) Percentage of Uncertainty

Gross fluxes

Without 2,505,370 20

With 802,622 20

Net balance −1,702,747 20


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ANNEX 5: GENDER ANALYSIS IN FOREST MANAGEMENT AND ECOTOURISM

1. Gender disparity in Cambodia has declined over the past years, but there is still significant room for improvement. Cambodia has a gender inequality index value of 0.473, and it ranked 116 out of 160 countries in the 2017 index. There have been improvements in this dimension of gender, reflected in improved index values—from 0.494 in 2010 to 0.477 in 2014. However, Cambodian society remains largely patriarchal and hierarchical, and women continue to be politically and economically underrepresented. Cambodia’s gender development index in 2017 was 0.914, indicating that women are lagging behind men in health, education, and economic activity.

2. Gender in forest management: low participation of women in forest management affects access to forest resources and consequently their incomes. On average, 19 percent of CPA management committees comprise women; in the target landscape, this value is about 16 percent.52 Low participation of women in forest management affects their access to forest resources and consequently their incomes. Men and women use forest resources in different ways in Cambodia and thereby have distinct knowledge and experiences that can add value to decisions on forest resources management. Men are often more involved in the extraction of commercial NTFPs such as rattan, resin, and honey. Women are generally in charge of the household economy (rural women who are responsible for 80 per cent of food production) as well as water collection for their families and tend to be more focused on food and income insecurity and water scarcity and engage in collection of NTFPs such as wild mushrooms, tubers, bamboo shoots, wild vegetables, leaves, and vines.

3. Participation of men and women in forest resources management in Cambodia, however, has tended to be disproportionate for several cultural and systemic reasons. These include (a) perceptions that forest work is better left to men—men tend to dominate membership (up to 80 percent of positions) in community forest management structures on elected committees for the community forest; (b) lack of confidence among women in speaking to large groups, lower literacy levels, the burden of childcare and household duties that need their time, and a perceived lower level of knowledge about the forest; (c) informal information channels that exclude women and poorer households; (d) absence of quotas for women’s participation; and (e) lack of income-generating activities. Gender assessment undertaken as part of REDD+ preparation in Cambodia found that the main barriers to women’s participation in NRM activities at the community level include too few women leaders, lack of income-generation opportunities, lack of women’s representation, and cultural norms. Accordingly, key recommendations improving participation were for skills building among women and development of women’s networks and promoting women’s leadership and cultivating gender champions.

4. Challenges facing female entrepreneurs in Cambodia will also affect their leadership and participation in forest-related enterprises. Other constraints, besides low education, also place women at a disadvantage in the labor market. These include limited access to information on business regulations and training; social norms on how women should interact with male employees, business owners, and government officials; and greater charges for unofficial fees due to their lack of knowledge and/or assertiveness (UNDP 2014).53 In Cambodia, 65 percent of micro, small, and medium enterprises are

52 CPA management committees are selected through community elections, and candidates are often selected based on perceptions of leadership ability, influence, and cultural norms which promote men as leaders in forest activities. Increasing female participation on CPA management committees will therefore require actions to promote female leadership, enhance confidence of women in leadership roles, and sensitize men and women to prevailing cultural gender norms. 53 UNDP, 2014. Gender Relations and Attitude Cambodia Gender Assessment;


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classified as ‘women led’, but women own only one-third of all registered businesses and less than 1 percent of businesses with more than 10 employees.54 Moreover, in spite of women’s greater access to microfinance—representing 81 percent of microfinance institution customers in Cambodia (Chang 2016)—women still struggle to access longer-term finance due to limited collateral, low education, and the informal nature of their work. 55 Recommendations for strengthening the capacity of women entrepreneurs include: strengthening financial education and business performance by improving women’s accounting record or bookkeeping skills, and developing and improving the financial statement and business plan in order to ease the access to finance. Also, technical and business advisory support should be provided, including mentoring and coaching, offered by incubators and accelerators, business development services, the government, business associations, and financial institutions.56

5. Government support for addressing gender challenges. The RGC has implemented several policy measures to help improve gender equality in Cambodia and protect women’s rights.

• The RGC ratified the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) in 1992, which strengthens its commitment to gender equality.

• The RGC stipulated the Land Law in 2001, guaranteeing equal rights for men and women to own and inherit land. It also protects the rights of female-headed households and people with disabilities and specifies that men and women have the rights to co-sign land titles.

• The Marriage and Family Law also recognizes joint property rights and provides a legal framework for forest management in Cambodia including the utilization, development, conservation, and protection of forests.

• National Forest Programme 2010–2029 includes an objective for enhancing women’s engagement in the Financial Agreement at the national and local levels, as well as promoting equitable benefit sharing.

• Community Forestry Sub-decree (2003) includes a provision that encourages women’s participation in the Community Forestry Management Committee (CFMC) (Article 18).

• Gender action groups have been created in all ministries, including the MoE.

6. In the context of the gender challenges and to help close two key gender gaps relating to (a) female leadership on forest management and (b) female entrepreneurs, the project’s activities will include the following:

• Participation in CPA management committees. Activities will include targeted workshops for women on CPA planning and management; promotion of women in CPA management committees; coaching sessions for women on participating in CPA management committees. There will be sensitization workshops for men and women on creating gender safe spaces,

54 OECD (Organisation for Economic Co-operation and Development) and ASEAN (Association of Southeast Asian Nations). 2017. Strengthening Women’s Entrepreneurship in ASEAN: Towards Increasing Women’s Participation in Economic Activity. Paris: OECD. https://www.oecd.org/southeast-asia/regional-programme/Strengthening_Womens_Entrepreneurship_ASEAN.pdf. 55 Change, J., 2016. A Bankable Future. Asian Management Insights (3). https://cmp.smu.edu.sg/sites/cmp.smu.edu.sg/files/pdf/12.A%20bankable%20future.pdf 56 Recommendations provided in UN ESCAP (2019).

https://www.oecd.org/southeast-asia/regional-programme/Strengthening_Womens_Entrepreneurship_ASEAN.pdf

https://cmp.smu.edu.sg/sites/cmp.smu.edu.sg/files/pdf/12.A%20bankable%20future.pdf


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reducing cultural marginalization of women, working with female leaders, and promoting safety and security of women participating in forest activities for example forest patrols.

• Promoting female entrepreneurs in forest enterprises. Activities will include targeted workshops and seminars and coaching for women on business development including on regulations, opportunities for finance, public speaking, work/life balance, managing of family businesses, and leadership. The project will also support development of networks of female entrepreneurs.


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ANNEX 6: SUSTAINABILITY MANAGEMENT FRAMEWORK

To ensure the long-term environmental and economic sustainability of project interventions and the continued conservation and management of Cambodia’s natural capital, the project has prepared a Sustainability Management Framework. This framework recognizes the economic rationale and revenue generation focus of the project. Each of the project-financed investments and activities are designed with the expectation of being financial self-sustaining, but in some activities there is need for supplemental government budgets to support staffing and O&M. Embedded in this project design is the setting up of an integrated FM system for better managing PA entrance and user fees and conservation fees, of which some percentage will be reinvested back into environmental conservation, and other fees that can support PAs such as PES and REDD+ payment. Longer-term sustainability will require bringing in financing through private sector or PPP approaches. For instance, NTFP enterprises and value chains established and invested in are to become self-sustaining, with post-project management and financing carried out exclusively by the private enterprises, with potential additional investment support from impact investors. This project explicitly provides for investments to strengthen the enabling environment for increased private sector investments, especially in ecotourism.

Sustainability Objective Project Investments/Activities Post-Project Financing Post-Project Management

COMPONENT 1: STRENGTHEN CAPACITY FOR PROTECTED AREAS (PAs) LANDSCAPE PLANNING AND MANAGEMENT

Information Systems and Decision Support (ISDS) for Landscapes and Protected Areas

Strengthen government capacity in decision support for natural resources

Invest in the creation of the MoE ISDS/Data Portal, including hardware (servers), software, and training on using it to make decisions.

• O&M for the ISDS will require a small team of dedicated MoE staff and budget.

• MoE (GDANCP, GDLC, GDEKI)

Protected Area Planning, Management, and Enforcement

Enhance the legal and regulatory framework for land use and PA management

• Law enforcement at national and subnational levels, including support to rangers (equipment, infrastructure, transportation)

• Development of a PA enforcement strategy and toolkit

• Investments in equipment/tools for smart patrolling, as well as capacity building

• Small MoE budget for rangers and ongoing enforcement activities

• The MoE to request for additional budget for ranger salaries and ongoing operating expenses

• MoE (GDANCP, GDLC)

Strengthen government capacity in sustainable landscape management and planning

• Training on zonation, demarcation, registration (select PAs) master plan, for national/subnational staff, based on MoE guidelines

• Investments in equipment for demarcation, including poles to place in the ground

• Training for the MoE, local government, rangers, and other stakeholders on development of PA management plans

• Additional budget from the MoE needed for continued zonation, demarcation, and registration in areas not covered by the project

• Small MoE budget for ongoing plan development and management

• Training of trainers activities will enable sustainability in future training


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• Support the MoE in enhancing the guidelines for PA planning, and other plans—CPA, NTFP, ecotourism, restoration

Strengthen financial management for protected areas

• Set up an integrated FM system for better managing PA entrance and user fees, and conservation fees

Strengthen CPA capacity • Invest in upgrading local infrastructure to establish 6 CPA multiuse training centers

• Training on CPAs (establishment, management planning) for national and subnational staff

• Budget anticipated from (a) low fees charged for training/BDS, (b) share of user fees from nearby ecotourism, and (c) potential funding from Environmental and Social Fund for multiuse centers

• PDoEs still responsible for O&M and management of multiuse centers

• Training of trainers for sustainability in future training

COMPONENT 2: STRENGTHEN OPPORTUNITIES FOR ECOTOURISM AND NON-TIMBER FOREST PRODUCT (NTFP) VALUE CHAINS

Promoting Ecotourism Opportunities

Develop CBET tourism investments

• Strengthen capacity of CBETs on management, hospitality, marketing (BDS training)

• Establish accommodation/activity management agreements

• Ecotourism management agreement/contract fees

• CBET revenues

• MoE, CBETs, NGOs, community

Invest in ecotourism infrastructure

• Invest in non-road ecotourism infrastructure (for example, walkways, viewing platforms, signage, waste management, jetties and lake access, visitor center)

• O&M budgets expected to be covered by (increased) PA entrance fees; end user fees for water, sewage

• MoE, local authority, private sector

• Water utility company/ provider

Incentivize follow-on private investments

• Develop a pipeline of potential investments that will attract impact investors

• Pipeline investments potentially financed by impact investors

• Private sector, impact investors

Promoting NTFP Value Chains

Strengthen the enabling environment for NTFP value chain development

• Develop comprehensive strategies and policies for effective management of NTFPs; expansion of value chains in PAs

• Training for local communities and enterprises on NTFP development

• Budget anticipated from (a) small fees charged for training/BDS and (b) potential funding from Environmental and Social Fund from the Government for multiuse centers

• Training of trainers activities will enable sustainability in future training.

Develop and invest in financially viable NTFP value chains

• Identify 2–3 NTFP value chains with greatest potential for scale-up and revenue generation.

• Construction of NTFP processing, storage facilities

• NTFP enterprises developed and invested under the project should

• Private sector enterprises, impact investors


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become financially self-sustaining.

COMPONENT 3: IMPROVE ACCESS AND CONNECTIVITY

Enhance connectivity infrastructure

• Roads/bridges upgrading and rehabilitation

• Provision of drainage, culverts, barriers, and signage.

• Technical support for design/engineering of roads

• O&M budget from the MRD on maintenance of roads

• MRD

• Tourism enterprises

Ensure that improved roads do not exacerbate illegal NRM extraction

• Invest in equipment for checkpoints • The MoE budget will be required for staffing at check points.

• MoE, access fees

Ensure cleanliness of ecotourism sites, access to safe WASH services

• Construction of small-scale water and sanitation infrastructure (full cost for public infrastructure by the MRD; for private infrastructure, the sub-structure financed by the MRD; and superstructure by community members or private enterprises)

• Fees collected (by type of ecotourism management agreement) from use of these services will contribute to the O&M

• MRD to transfer management to community, CPA or private enterprise, depending on the specific ecotourism site and its management agreement


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ANNEX 7: MAPS OF PROJECT AREA


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Example: Siem Reap Ecotourism Hub-Spoke Model

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