Asian Development Bank RETA 6470

:

Managing Water in Asia’s River Basins: Charting Progress and Facilitating Investment
(Financed by the Japan Special Fund)

The 4Ps Area, Cambodia Investment Roadmap for Water-related Development
September 2010

Cambodia National Mekong Committee

i

Location map
The 4Ps Area has its name from the four preks (small rivers): Prek Preah, Prek Krieng, Prek Kampi and Prek Te

Kratie

Sen Monorom

50 km

ii

Contents
Location map....................................................................................................................................................... i Summary............................................................................................................................................................ iii Acronyms and Abbreviations..............................................................................................................................iv About RETA 6470 ..............................................................................................................................................iv 1 2 3 4 5 6 7 Introduction ............................................................................................................................................. 1 Background............................................................................................................................................. 1 Development Priorities ............................................................................................................................ 2 Vision for the 4Ps Basin .......................................................................................................................... 3 Basin Development Goals....................................................................................................................... 3 Overview of Supporting Development..................................................................................................... 5 Next Steps .............................................................................................................................................. 7

References ......................................................................................................................................................... 7 Appendix A: Proposed Development Initiatives.................................................................................................. 8 1 Water Supplies and Services....................................................................................................... 8 2 Institutional Development........................................................................................................... 13 3 Integrated Agricultural Development.......................................................................................... 16 4 Integrated Energy Development and Management Programme................................................ 19 5 Tourism Development................................................................................................................ 22 Appendix B: The Rectangular Strategy of Cambodia ....................................................................................... 24 Appendix C: 1st Stakeholder Workshop........................................................................................................... 25 Appendix D: 2nd Stakeholder Workshop.......................................................................................................... 26

iii

Summary
The present draft investment roadmap for water-related development has been prepared by Cambodia National Mekong Committee (CNMC) in collaboration with Kratie and Mondulkiri Provinces. It builds on previous work by CNMC conducted with support from Global Water Partnership (GWP) and ADB, as well as the Basin Development Plan produced by Mekong River Commission in collaboration with the National Mekong Committees. The roadmap is guided by a vision of a healthy river basin with integrated sustainable development plans implemented jointly by the people and the government primarily for the benefit of the 4Ps people. Three goals have been defined in support of the vision: • • • Improved water security; economic development, livelihoods and social welfare; and a healthy river basin

The following development initiatives are recommended to reach the goals: 1 2 3 4 5 6 7 8 Water supplies and services Institutional development Integrated agricultural development Integrated energy development and management Tourism development Mining Microcredit and cooperative development Environment protection and management

iv

Acronyms and Abbreviations
BCCD CNMC D&D GWP IWRM MAFF MDG MIME MOE MOT MOWRAM MRC MRD MUSD NARBO NGO NR NTFP O&M PD... RBO SMEs : Basin Coordination Committee for Development : Cambodia National Mekong Committee : Decentralisation and deconcentration : Global Water Partnership : Integrated water resources management : Ministry of Agriculture, Forestry and Fisheries : Millennium development goal/goals : Ministry of Mines and Energy : Ministry of Environment : Ministry of Tourism : Ministry of Water Resources and Meteorology : Mekong River Commission : Ministry of Rural Development : Million US dollars : Network of Asian River Basin Organizations : Non-governmental organization : National road : Non-timber forest products : Operation and maintenance : Provincial department ... : River basin organization : Small and medium enterprises

About RETA 6470
RETA 6470, 'Managing Water in Asia’s River Basins: Charting Progress and Facilitating Investment' aims to encourage further basin water investments under ADB's Water Financing Program and to demonstrate good IWRM practices in river basins across the region. The project is executed by ADB in collaboration with Network of Asian River Basin Organizations (NARBO) and is hosted by Center for River Basin Organizations and Management (CRBOM) in Solo, Central Java. It is financed with a grant from the Japan Special Fund made available by the Government of Japan Pilot activities are conducted in river basins in Cambodia (the 4Ps Area of Prek Preah, Prek Krieng, Prek Kampi, and Prek Te), Indonesia (Bengawan Solo), India, State of Odisha (Baitarani), the Philippines (Mananga, Kotkot, and Combado-Lusaran, Central Cebu), and Viet Nam (Vu Gia-Thu Bon).

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1

Introduction
The present investment roadmap for water-related development has been prepared by Cambodia National Mekong Committee (CNMC) in collaboration with Kratie and Mondulkiri Provinces. It builds on previous work by CNMC conducted with support from Global Water Partnership (GWP) and ADB (under its RETA 6325, 'Promoting effective water policies and practices'), as well as the Basin Development Plan produced by Mekong River Commission in collaboration with the National 1 Mekong Committees. The present version incorporates guidance received during stakeholder consultation workshops held in Kratie in January 2010 and in Mondulkiri in August 2010. A basin profile has been prepared as a separate document.

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Background
The 4Ps basin is the least developed region of the country. Most of its population are subsistence farmers depending principally on degrading natural resources such as NTFP and fishery. The poverty rate is among the highest especially among the ethnic minority groups. The water-related infrastructure is incomplete and often ill designed, built during the Pol Pot period and concentrating mainly on the river branches of the 4Ps around and downstream of National Road 7. Until now there is no comprehensive planning for sustainable development and use of the basin's resources. Recent forest concessions, economic land concessions and mining concessions pose a new threat to sustainable development of the basin especially to ethnic minority groups due to social disadvantage. Newcomers in the areas are unfamiliar with sustainable agricultural practices under local conditions and add to the risk of environmental degradation. Figure 1: Rainfed Subsidence Cultivation near Prek Te

Beneficial and sustainable resource governance can form the basis for access to water for safe and sustainable use for domestic consumption, agricultural production, environmental protection and electricity generation. This requires 1 A river basin management organization capable of assuring good governance of water and related resources of the 4Ps river basin for their sustainable social and economic development

1

The 4Ps is located in sub-area 7C of MRC’s BDP programme, which has prepared a sub-area profile with potential projects for IWRM development and management

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2 3

A network of shared knowledge on the 4Ps' natural and human resources, their use and management for the benefit of the people and the country A capacity of local communities to cope with natural calamities such as flood and droughts as well as climate changes

Figure 2: Livestock can Contribute Visibly to the Household Economy

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Development Priorities
Water-related development priorities were discussed at the two stakeholder workshops. A need was identified to initiate the process for the establishment of the BCCD and a Secretariat to coordinate activities and to serve as an information hub, serving both provinces. This will require the following activities: • • • Define leading provincial agencies to host the Secretariat activities Define TOR of the Secretariat: role and responsibility as well as financial source and amount Define the work programme for immediate and medium term

The following priority developments were identified as particularly beneficial: • Agricultural productivity and access to market targeting resilience improvement • Measures to facilitate access to credit Farming models Extension services in priority areas: Rice intensification, crop diversification Cooperatives Value chain development

Ecotourism Capacity building of tour guides, community, handicraft, cultural performance, awareness building Communication infrastructure

Energy development Integrated micro-hydropower with biomass and bio-fuel

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-

Preparation for larger investment in hydropower. This, in turn, requires (i) rainfall data collection; (ii) climatic data collection; (iii) river flow data collection (water level, discharge data); (iv) database development; and (v) land use planning community forestry

Fisheries: Extension services support, hatchery Community fishery Aquaculture development

Floods and drought risk reduction Water and soil conservation, including activities such as (i) adaptation of crop calendar; (ii) redesign and plan for viable water management infrastructure; and (iii) faming system adaptation Introduction of improved seeds: (i) Seed banks; (ii) introduction of modern agricultural techniques; and (iii) information system development and awareness building

Water supply and sanitation Network of affordable well drilling capacity Network of latrine suppliers

• •

A network of technical support to the commune councils Micro finance development

Figure 3: Dolphin Spotting on the Mekong

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Vision for the 4Ps Basin
A healthy river basin with integrated sustainable development plans implemented jointly by the people and the government primarily for the benefit of the 4Ps people.

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Basin Development Goals
For medium to long term development the following goals and supporting programmes are proposed: Improved Water Security 1 2 Water supplies and services Institutional development

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Economic Development, Livelihoods and Social Welfare 3 4 5 6 7 Integrated agricultural development Integrated energy development and management Tourism development Mining Microcredit and cooperative development

A Healthy River Basin 8 Environment protection and management

Figure 4: Fishing on the Mekong (at Kratie)

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6
No

Overview of Supporting Development
Title Improved Water Security Implementation

1 1.1.1 1.1.2 1.2 1.2.1 1.2.2 1.2.3 2 2.1

Water supplies and services Water supply and sanitation Rural water supply and sanitation Irrigation and drainage Storage capacity development Irrigation network development Flood protection dike development Institutional development Establishment of the 4Ps River Basin Organization a) Strengthening of current de-concentration and decentralization of the government at provincial, district and commune level b) A functional river basin committee for 4Ps c) Effective stakeholder participation process d) Water sharing procedures and guidelines Capacity building in all water related sectors; a) Technical b) Managerial Economic Development, Livelihoods and Social Welfare

MOWRAM, 4Ps BCCD, PDWRAM

CNMC, MOWRAM, MRD, MAFF

2.2

3 3.1 3.2

Integrated agricultural development Lowland irrigated rice cultivation Commercial crops a) Tobacco, sugar cane, ground nuts, soil bean, sesame, corn, sweet potatoes, sorghum, millet (for animal feeds), cassava b) Family-scale plantation and fruit trees, cashew nuts, rubber, cacao, pepper c) Biofuel: Leucaena, castor bean, jatropha, cassava, sugar cane d) Extension services improvement and expansion e) Improved access to market f) Cooperative development Livestock development a) Improved animal feeds: Leucanea, vetiver grass, sorghum, millet, corn b) Improvement of extension services and access to market c) Food processing for animal feed and human consumption Community forestry development a) Restoration and protection of degraded forest b) Restoration and protection of NTFP for their sustainable use (rattan, bamboo, honey, resin, medicinal plants c) Development of handicraft diversification d) Mulberry, silk development and related handicraft Soil conservation and watershed management a) Vetiver grass for cassava plantation b) Cultivation technique c) Agro-forestry development and best practice d) Conservation of local plants Improvement of fisheries a) Habitat protection and management b) Aquaculture development c) Livelihoods improvement d) Community fisheries development and management Land titling Rural infrastructure development Integrated energy development and management programme

MAFF, MOWRAM, MRD, MIME

3.3

3.4

3.5

3.6

3. 7 3.8 4

MIME, MOWRAM, MRD, MAFF

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No 4.1

Title Mini hydropower development: a) Reservoir and powerhouse development b) Transmission line development Biofuel development: a) Local fuel wood development (leucaena, cassava, sugar cane) b) Agricultural extension service Solar energy development Wind energy development Tourism development a) b) Historical site protection and management Tourist infrastructure development and management: accommodation recreation eco-tourism development landscaping handicraft Events and promotion

Implementation

4.2

4.3 4.4 5

MOT, MOE, MRD, MAFF

c) 6

Mining Information dissemination and education a) Resources potential and risk b) Local stakeholder participation Microcredit and cooperative development a) Saving groups b) Cooperatives c) Expansion of rural credit accessible to the poorest groups A Healthy River Basin

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8

Environment protection and management

Figure 5: View of Prek Krieng

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Next Steps
The roadmap is a 'live document'. It will be adjusted according to further guidance from stakeholders and development partners. Building on the broad support from the stakeholders, a dialogue should be initiated with development partners (such as ADB) towards implementation of viable development initiatives.

References
ADB and CNMC (May 09): The 4Ps Area, Cambodia - development needs and opportunities. Working paper 3 prepared under ADB RETA 6470: Managing water in Asia’s river basins - charting progress and facilitating investment CamboWP and CNMC (Dec 08): The 4Ps Area - The Prek Preah, Prek Krieng, Prek Kampi and Prek Te river basins. Piloting river basin approach to IWRM in Eastern Cambodia. A Pilot and Demonstration Activity under ADB's RETA 6325: Promoting effective water policies and practices (Phase 5) CamboWP and CNMC (Jun 07): The 4Ps Area - The Prek Preah, Prek Krieng, Prek Kampi and Prek Te river basins. An IWRM-based pilot study of water-related development opportunities. Cambodia Water Partnership and Cambodia National Mekong Committee CNMC (Sep 2010): Basin profile for the 4Ps Area MRC-BDP (Nov 09): Sub-area 7C. Study report prepared by CNMC and MRC under Mekong River Commission's Basin Development Plan programme Watt Botkosal (Oct 09): IWRM-based development in a small Cambodian river basin. CRBOM Small Publications Series no. 9. Center for River Basin Organizations and Management, Solo, Central Java

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Appendix A: Proposed Development Initiatives
1 Water Supplies and Services

Date/revised Origin/raised by Priority Status Implementation Location Justification CNMC To be determined Under consideration starting with some existing infrastructure MOWRAM, 4Ps RBO, PDWRAM 4Ps river basin. Each sub-basin will have an IWRM programme as part of the overall 4Ps programme Water and related resources of the 4Ps basin are underdeveloped. The large majority of the basin populations still live in poor rural areas as subsistence rice farmers depending principally on natural conditions, and isolated from market and social facilities. Most of the existing water infrastructures consist of small water storage reservoirs on tributaries of the 4 Preks and are mainly concentrated in their lower parts. They are poorly designed and built with an extremely limited number of distribution canals. Nearly all of them are ether without appropriate water control infrastructures, or the existing ones are damaged through years of neglect and little use. Local communities have no technical and financial capacity for meaningful participation in the rehabilitation and improvement of the systems or even formulating their needs. While water and related resources of the 4Ps have not been effectively used for the benefit of the communities, rapid land use changes due to external pressure (such as forest concession, economic land concessions and mining concessions) put natural resources and the fragile environment of the basin further at risk of accelerating degradation. With rapid land cover change and unorganized development risk of calamities such as droughts and floods, other man-made hazards are also increasing including conflicts between different stakeholders groups. Sustainable development of water and related resources of the basin can only be achieved through a systematic development following a comprehensive and realistic medium to long term plan with meaningful participation of all stakeholder groups and based on an overall clear basin strategic direction to guide the basin development roadmap. Effective planning and implementation shall be based on solid scientific data and information which has to be urgently collected to improve the understanding of the basin resources in parallel with local technical capacities at district and commune level to support the government deconcentration and decentralization and poverty reduction policy and plans . The IWRM programme of the 4Ps has the following components: 1) Identification and comprehensive analysis of the water and related resources potential of the 4Ps including a long-list of development options for hydropower, irrigation, flood and droughts management, water supply and sanitation, navigation and environmental protection 2) Identification and comprehensive analysis on existing institutions at national and provincial level in dealing with medium to long term development planning 3) Analysis of existing data and information and comprehensive plan for data collection and management including hydrology, hydro-geology, rainfall, water quality, soil, geology, mineral resources, maps (topography, land use etc). Database development and management 4) Long list of prioritized potential infrastructure and soft related projects Despite being relatively rich in natural resources and a low population density, the 4Ps Area remains the poorest region of the country. Earlier forest concessions, followed by recent economic land concessions and mining concessions put increasing pressure on remaining natural resources. While most people are still living below the poverty line depending principally on natural conditions such as NTFP and capture fisheries for their livelihoods, infrastructure for water resources development and management and communication are low including human development index. The present trend indicates possibility of rapid degradation of the fragile environment of the area including the likelihood of achieving national poverty reduction and MDGs. To overcome many of the major constraints in the 4Ps Area a comprehensive medium to long term development plan is needed taking into consideration of local and national technical and financial level capability. The planning process is currently based on knowledge of the basin and is expected to be improved during upcoming reviews and adjustment as might be required.

Expected outputs

Strategic relationship

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A step by step approach will progressively integrate all sectors involved. The Programme will directly support the Royal Government in its effort for achieving the national MDGs, the National Strategy for Poverty Reduction and the Rectangular Strategy as well as the implementation of IWRM in water resource development and management. Enabling environment in the 4Ps Area will be based on a broad framework with meaningful participation of local and government and civil societies at the early stage of development based on IWRM principles supporting by solid decision making process based on scientific data and information. Article 4 of the National Water Law clearly specifies the IWRM principle for water resources development and management. The Rectangular Strategy, the NSDP, the Rural Electricity Supply, the Water and Sanitation Strategy, the national MDGs and Poverty Reduction Strategy and Deconcentration and Decentralization Policy of the Government provide a broad base for the development and management of the 4Ps Area. Project description The 4Ps basin is the least developed region of the country dominated by the Mondulkiri plateau and surrounding hilly areas covered mainly by deciduous and degraded deciduous forest with sparse subsistence land occupation. The upper part of the basin topography with relatively deep river valleys offers suitable sites for water storage reservoirs for irrigation hydropower, domestic water supply or river flow regulation. The four river course draining the four basins crosses many small deep pools and rapids suitable for water storage and flow regulation for development as well as for environment and biological protection. At their junction with the Mekong, the flows of the 4 Preks are affected by the Mekong flood water. Floods affect generally the lower part of the four preks, west to the NR 7. Floods are mainly caused by heavy rain in the upper basin, the Mekong bank full water entering into the river braches or the combination of the two flood sources. For water development and management of the 4Ps projects will be identified and further investigated for their viability for further studies e.g. pre-feasibility and feasibility studies. The following water management infrastructures have been identified for medium to long term development: 1 Prek Preah

The Prek Preah sub-basin drains a catchment area of 4,200 km2 extending from the foothills of the Mondulkiri plateau and the watersheds between Sre Pok to the east and the Mekong River to the west. The northern part of this sub-catchment is at higher elevation and remains under a relatively dense forest cover but currently under rapid change by land reclamation for economic plantation. The soil is mainly dominated by Haplic and Gleyic Acrisol and a strip of Ferralic Cambisol in the most northern part of the basin. Currently only small areas of subsistence rainfed rice are practiced in the Phnom Mealea and along the Mekong river. So far no water management infrastructure has been developed in this basin. There remain large areas west to the NR 7 and its surrounding which could be developed for agricultural development as well as forestry development. The estimated Prek Preah 4 out of five years annual flow is about 1.4 billion m3 which could be developed for irrigation, water supply and maintenance of bio diversity conservation in the sub-basin. The strip of the northern part of the sub-catchment has good groundwater potential for irrigation and domestic water supply. Proposed Water Resources Infrastructure 1.1 a. Surface Water Earth dam/water reservoir with approximately 10-15m high dam, location:(13o 09’17.40N; 106o 30’18.61E); To store and regulate the Prek Preah flow for supplement irrigation and water supply as well as for biodiversity conservation. Earth dam/water reservoir with approximately 10-15m m high dam , location:(13o 10’56.81N; 106o 10’51.42 E); To store and regulate the Prek Preah flow for supplement irrigation and water supply as for biodiversity conservation Water diversion infrastructure immediately east of the RN7 equipped with control gates, location: (13o 09’37.23N; 106o 09’57.42E); and network of irrigation and drainage canals. To divert water for irrigation by gravity and to drain excess water from irrigated perimeter (approximate area 1,000 ha). Two main diversion canals on both side of the Prek Preah; Provision of secondary canals for supplement wet season rice irrigation and other crops such as vegetable and perennial and semi-perennial crops. Existing subsistence rice field along the Prek Preh downstream will be served by small lift pumps for supplement irrigation for rice cultivation and other crops Rural road networks providing access to villages along both river banks

b.

c.

d. e. f. g.

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h. i.

District town development plan (water supply and sanitation, electrification for the Prek Preah district town. A network of hydrological data collection for river water level and discharge data collection, rainfall and meteorological data collection for planning and monitoring and operation of water resource management infrastructure and environmental protection.

1.2 Groundwater Groundwater is one of the most valuable resources of the northern part of Prek Preah which should be investigated on its potential and suitability for use for perennial fruit trees plantation. a. Development of guidelines for groundwater use and sharing, groundwater exploration ( hydro-geology). b. Identification of recharge areas and propose a recharge zone protection. 1.3 Water Supply and Sanitation Major component of water supply and sanitation are: rural water supply (groundwater wells, rainwater harvesting, water quality monitoring); sanitation facilities ( low cost latrines and septic tank) 2 Prek Krieng

The Prek Krieng drains a sub-catchment of 3,332 km2 taking its source at the hilly areas at the foot of the Mondulkiri plateau. Relatively dense forest cover remains only at the higher altitude in the most eastern part of this sub-catchment. In contrast to the Prek Preah subcatchment, the Prek Krieng sub-catchment is more used for subsistence agriculture concentrating along the Prek Krieng mostly at the junction between Prek Krieng and their major tributaries and along the Mekong river. From its source the Prek Preah meanders through a very gentle landscape and a relatively dense population such as Roluos Meanchey and Sre Ches communes. Similar to other sub-catchments, the Prek Krieng basin is dominated by Haplic, Ferric, Geyic Acrisol with strips of Ferralic Cambisol along the Mekong River banks. Similar to other 4Ps sub-basins, the Prek Krieng basin is facing increasing and rapid natural resources degradation, while the majority of the population are still living at subsistence level depending heavily on natural resources. Water related infrastructures and human development are very low with high poverty rate. The risk of food insecurity is high due to frequent droughts and floods as well as other natural calamities such as pests and diseases. The Prek Krieng annual (four out of five years) flow is estimated at about 1.7 billion m3. The topography of the sub-sin provides ample sites for river flow regulation. For sustainable development of water and related resources of Prek Krieng following water resources management infrastructures are proposed: There are a number of existing irrigation works in the basin consisting mainly of a network of canals but most of them are not working due to incomplete construction works, lack of maintenance and appropriate operation management services. Those existing infrastructures need to be reassessed and redesigned under the overall framework of the sub-basin medium to long term water resources development planning. For the overall medium to long term water resource development and management following developments concepts are proposed: Proposed Water Resources Infrastructure 2.1 Surface Water Two water reservoirs could be proposed for small scale irrigation project in this sub-basin: a. One dam/water storage reservoir in O Touk Neak for irrigation and water supply downstream, the exact site is to be investigated. b. One dam/water storage on Prek Tuk for irrigation development downstream near to the junction of this river with Prek Krieng. Current land use for subsistence rice cultivation is concentrating mainly to the eastern part of the NR 7. 2.2 Groundwater Groundwater is main source of rural domestic water supply: Digging or drilled wells serviced by low cost of pumping equipment will be developed including water quality analysis.

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2.3 Water Supply and Sanitation Water supply and sanitation for O Krieng district center: development of running domestic water supply, excess and sewerage water facilities, low cost latrine fabrication and distribution, septic tanks development. 3 Prek Kampi

The Prek Kampi takes its source at the hilly area at the foot of the Mondulkiri plateau, covering an area of 1,142 km2. The estimated four out of five years annual flow of Prek Kampi is about 508 million m3 concentrating mainly in the wet season months of the year (90%). Similar to other Preks, the Prek Kampi water resources are under developed. Major water use are for supplement irrigation wet season rice cultivation along tributaries of Prek Kampi and surrounding areas of its junction with the Mekong river ( in the Mekong flood plain). Main land use in the sub-catchments are mainly dominated by subsistence rice cultivation concentrating along the major tributaries of the Prek Kampi and at the Mekong flood plain west to the NR 7 where is located a mixed rice cultivation practices ( wet and recession rice). The lower part of the Prek Kampi is subject to frequent flood from the Mekong and from the Prek Kampi or a combination of both. Similar to other Preks, water management infrastructure development in the Prek Kampi is low limiting to a number of small reservoirs on tributaries of the prek and boeung system in the Mekong flood plain. The Prek Kampi meets the Mekong at the beginning of one of the biggest and deepest Mekong deep pools areas where live the remaining population of the Irrawaddy dolphin of the Mekong (species under threat of extinction). The Medium to long term plan of water resources development is guided by the following strategic direction: 1 An adaptive investment according needs and management capacity of direct stakeholders; 2 An integrated multi sectoral approach serving at the same time irrigation, flood and drought management and balance between development and conservation upstream and downstream users: The following projects have been identified: 3.1 a. b. Review of Existing Irrigation Schemes Review of status, operation, capacity of local beneficiaries in the operation and management of the schemes for their rehabilitation and improvement Scheme on the Prek Kakot (Srae Trang reservoir)

3.2 Framework for Sustainable Infrastructure Development Conceptualize possible framework of sustainable infrastructure development for water and related resource development. The following medium to long term water resources management infrastructures are proposed base on preliminary assessment of water and land resources of the subcatchment. It is proposed to subdivide the sub-catchment into two parts: i) to the east of the NR 7; ii) the part to the west of the NR 7 including the Mekong flood plain. In the upper part the following infrastructures are proposed: a. Water storage reservoir in the upper part of the sub-catchment to regulate flow for droughts management at Phum Chhak Preah. b. Water diversion infrastructures for wet season supplement irrigation; c. Irrigation network consisting mainly of primary and secondary canals. In the lower part, the following infrastructures are proposed: d. Flood protection embankment along the Prek Kampi; e. Water sluice gate to regulate flood water from upstream and from the Mekong as well as to keep water for irrigation needs during dry season. Those infrastructures are linked with the reclamation and conservation of biodiversity and ecology of the Mekong flood plain. 4 Prek Te

4.1 The Mekong Flood Plain The Prek Te sub-basin is the largest sub-basin of the 4Ps basins. It originates at the Mondulkiri plateau at an altitude about 740m. The Mekong flood plain is part of the lowest part of the 4Ps basin. It is the better developed part of the basin with highest population density, and largest potential for agricultural production and highest biodiversity productivity benefiting from the connectivity with other part of the Mekong as transport and migration route. The lower parts of the Prek Kampi and Prek Te are interconnected by the Mekong flood plain during the flood season.

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This area is mainly occupied by recession rice. Cash crops are expanding rapidly but are constrained by appropriate spatial planning. Land use intensity remains quite low. Retention lakes are the main water sources for irrigation (recession and dry season rice). New cash crops under expansion are tobacco, sugar cane, ground nuts, maize and soy bean, at the expense of fishery resources. The area is also known to be very productive for capture fishery under increasing pressure from agricultural expansion. There is no comprehensive integrated development plan for this area taking into consideration medium to long term sustainable use of resources for multiple use of this area as well as the potential for development on the right bank and right Mekong flood plain. Existing water management infrastructures are limited to small scale rice crop recession rice and some supplement wet season rice tapping water from small Prek Te tributaries. Structural and operational design needs careful reviews and perhaps redesign as part of an overall comprehensive framework. Flood during the wet season and water shortage are major constrain for agricultural development in the area. Forest and other natural resources as source of livelihoods are depleting rapidly and continue to follow the rapid trend following the extraction of timber woods to fuel woods (woods for domestic, charcoal, brick factories etc. Existing development of major importance is the new road along the Mekong from Chhlong to Kratie built across the left bank of the Mekong/Prek Te flood plain. This road is vital to the economic development of this area, it can provide tremendous benefit to the area if planned and built in an integrated way including other sectors such as agriculture, fisheries, flood/droughts management etc. The Mekong and the 4 Prek are the main water sources. At Kratie water levels fluctuate between lowest level and highest level between 15 and 20m. Opportunities and constraints: • During flood season flood water enters and fill in the flood plain, this flood water is temporarily stored in the swampy areas and lakes, and is drained back into the Mekong when the Mekong flood water starts receding, leaving limited amount of surface and ground water stored in depression and shallow aquifers. • Current land use intensity is rather low, estimated at less than 80%, limiting factors are low level of water management infrastructures against flood and droughts. The following project is proposed: Road Flood Protection Dike Along the Mekong The new road along the Mekong river between Chhlong and Kratie could be conceived as a road/dike embankment and can have flood protection function when all access to the Mekong river will be controlled by sluice gate to control water in and out of the flood plain. Storage facilities on the 4Ps main rivers systems could be supplemented by additional storages if the flood plain could be separated in compartments for flood storage/ fishery/aquaculture/ water supply for supplement irrigation. Appropriate crop calendars will be conceived such as early rice crops/recession/dry season crops etc. in combination with crop diversification zoning and. The project is aiming at identifying best option for the development and management of the area by applying existing modeling capability and capacity supported by MRC (ISIS model). The model study will verify : 1. The degree of safety of the road design for its function as flood protection dike 2. Identify different options for opening connection with the Mekong ( bridge, culverts) and their different operation option and impacts on flood level on the right bank of the Mekong and further downstream; 3. Identify the best options for flood and drought management including related structural infrastructures with related preliminary costing as well as mode of operation and required institutional framework. 4. Land use planning and management in different identified development and management zones and options. 5. Propose a development and management framework for medium to long term development. 6. Elaboration of a Terms of Reference for feasibility of prioritized options. 7. Propose different development and conservation zones and identify the best option to be recommended for medium to long term development. 4.2 The Middle and Upper Prek Te The middle Prek Te is rather flat area with land elevation varying between 300m at the foot of the Mondulkiri plateau to some 60 m at the RN7. In this section the Prek Te meanders through a rather flat terrain with ramification branches rapids and pools with a number of villages and commune centres. Some subsistence rainfed rice field are mainly located along major tributaries of Prek Te such as O Kanchar, Prek Khlong, O Prich, O Risiev etc. This zone has a potential for irrigated agricultural development and environment al protection since it covers about 75% of the Phnom Prich Wild life sanctuary and partly by protected forest (both are located in Mondulkiri Province).

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The upper part of the sub-catchment is consisting of the Mondulkiri plateau with land elevation varying between 300m to some 800m. The plateau is consisting of numerous red soil and basalt hills remnant of old volcanic activities covering this part of Cambodia and Central high land of Viet Nam is the head water of Prek Te. In this part of the subcatchment, the Prek Te tributaries such as Prek Duk Doeur and O Ban Tu run across rather deep valleys with steep slope, a number of locations could be identified as suitable for mini hydropower development site. The Mondulkiri plateau has a mild climate with comparatively lower average temperature as compared to other part of the country due to its elevation can offer many natural sceneries and water fall and biodiversity for tourist attraction. Sen Mororom is the capital city located at an altitude between 600 to 800 m. Its tourist, agricultural, energy and mining resources have attracted a number of investors such as pine trees plantation, tourist facilities and accommodation. Many issues have arisen: Soil erosion, water supply and sanitation, environmental degradation, pressure on conservation areas such as (wild life sanctuary, protected forest), livelihoods of ethnic minorities. Identified water infrastructure project: Mini Hydropower The upper part of the Prek Te in the Mondulkiri plateau has a number of deep valley offering suitable site for mini hydropower development: a. Site 1: Combining the rivers (for three reservoirs): consisting of three dams/reservoirs : i) Reservoir no 2 at altitude of 685m, 50m high and 325m long crest ; ii)reservoir/dike no 3 at altitude 680m: dam 35m high, 200 m long crest ; iii) reservoir/ dike no 4: dam high: 35m, 200m long. The proposed system is consisting of interconnected underground pipe of 14.6 km, one penstock and one power house. The estimated discharge is 3.3 m3/s and a net head of 325m and installed capacity of 15 GW and annual estimate energy about 73 GWh/year. b. Site 2: O Bantu and O Khtong to be filled later. c. Irrigation in the Prek Te middle reach Milestones Estimated total cost Relation to other projects The programme provides strategic direction for sustainable development of water and related resources in the 4Ps basin. This would leads to the establishment of effective development and management collaborative framework for achieving the vision of the basin. The programme support the national MDG, the Rectangular Strategy, the National Strategy for Poverty Reduction, the decentralization and deconcentration policy as well as assist the government in effective implementing its water law based on IWRM principles. Comments The programme intends to provide a strategic direction or road map for development of water and related resources of the basin rather than to try to build on standard planning based on rigid “master plan” which requires intensive technical and financial resources that the country, local authorities and communities could not meet the needs. The road map is designed in a flexible way that could evolve with time in terms of degree of sophistication, number of projects and activities according to national and local absorption capacity. The implementation is based on performance results with focus on participation process and basin integrity. Six months PPTA for programme elaboration for investment

Appendices

2

Institutional Development

Date/revised Origin/raised by Priority Status Implementation Location Justification CNMC To be determined Under consideration CNMC, MOWRAM, MRD, MAFF Entire 4Ps Area The institutional capacity strengthening programme is to support the 4Ps roadmap and the 4Ps roadmap goal is to support sustainable development of the 4Ps basin by applying IWRM principles. The roadmap provides objectives and directions to for example poverty reduction, better water resources management, better capacity of stakeholders to understand more about

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natural resources and their involvement in natural resources protection and management etc. The Government’s Rectangular Strategy and the National Strategic Plan, 2006-2010 (NSDP), provide a broad roadmap toward this end, emphasizing governance, a considerable increase in public investments in rural areas, and support to the development of a job-creating private sector. At the 4Ps basin level it provides strategic guidance for the economic and social development of the 4Ps Area under the Basin Coordination Committee (BCCD). The ambition of the BCCD is ultimately to become a functional River Basin Organization (RBO). The major challenge is to establish a functional and effective BCCD. The objective of the BCCD is to provide guidance to the provincial development committee, and to coordinate activities related to the implementation of the Law on Water Resources Management in Cambodia; and other Government regulations related to the objectives of the Royal Government of Cambodia. The BCCD should have the Kratie and Mondulkiri Province Governor as Honor Chairs, and should be led by a Co-Chair and his/her assistance, the Vice-Chair. The Chair and ViceChair are provincial level persons which will be selected democratically by the members of 4Ps BCCD who are appointed by their institutions. The River Basin Technical Coordination Team (RBTCT) is a technical assistance team from related line agencies at national level. This team is responsible for assisting the 4Ps BCCD and to provide any necessary advice and technical support. The RBTCT is composed of Project Coordinator, Representatives from Ministry of Agriculture, Forestry and Fisheries (MAFF), Ministry of Water Resources and Meteorology (MOWRAM), Ministry of Planning (MOP), CNMC, ADB, and a Secretary. At the stage of the PDA, the RBTCT conducts the technical study to achieve the objectives of the project (TA 6325). According with the outcome of first Consultation Workshop dated on 15 February, 2007, the structure of 4Ps BCCD also will compose of 4Ps Coordination Unit at the provincial level comprising representative of Provincial Department of Water Resources and Meteorology which will take leading role, and other members who represent the Kratie Provincial Department of Planning, Industry, Mines and Energy, and Agriculture. The 4Ps Area Coordination Unit Team members are also members of 4Ps BCCD. The permanent members of 4Ps BCCD are members of 4Ps BFWP from each Prek ( Prek O Krieng, Prek O Preah, Prek Te and Prek Kampi) and those members who represent the Provincial Departments of Tourism (DoT), Department of Environment (DoE), Department of Rural Development (DoRD), Department of Women Affairs (DoWA), Department of Public Works and Transport (DPWT), Fisheries Administration (FA), Forestry Administration. The local NGOs, local communities (civil society organizations), and the private sector are other members (ad-hoc). Given the still weak institutional capacities at all level, implementation efforts will be prioritised and targeted at areas offering the highest returns for improving human well being, achieving shared prosperity and securing sustainability of the basins and human resources and institutions will be strengthened will be supported by an integrated capacity building programme. At national level governance institutions remain primarily oriented to maintaining regime stability, and less responding to citizen’s demands. Government remains weak in terms of its ability to engender the allegiance of its employees and representatives to official norms and rules, to maintain operational coherence around national policy goals, to protect citizen’s from predating by government or commercial agents or to ensure that disputes, both between the population and between citizens and government are fairly and effectively redressed. Expected outputs The expected outputs will be a comprehensive institutional and capacity building programme to support effective development and management of water and related natural resources of the basin. Major component will be: 1. Institutional capacity strengthening programme for BCCD for river basin management based on existing Government D&D programme; 2. Technical extension services programme at provincial, district and commune level in the following fields: a) agricultural modernization: expand and improvement of extension services in crop intensification (such as SRI)and diversification, livestock improvement , fisheries and aquaculture; b) water resources development and management to support Farmers Water User Groups (FWUCs) in design and operation of small water management infrastructures; c) micro credits and communities financial management, market information and small business support for on farm and off farms and cooperative support; d) Information and knowledge centres to provide advice services to farmers. 3. Programme for increasing literacy rates, and enrolment rates in primary and lower secondary schools, market-linked vocational training and business skill development Institutions and capacity for water and related resources development and management in the 4Ps Area are limited. It is well perceived that human development is a dynamic, multidisciplinary and action-oriented paradigm. It does not layout rigid definitions of what lies within and outside its domain. Fundamental to the definition are human beings: their

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empowerment, welfare and quality of life. Cambodia is facing some problems in its democratic functioning and upholding human rights to poverty. The pressing need is further emphasized in the sub-regional context of the Sekong, Se San and Sre Pok basins (3S), an area with transboundary implication. Cambodia as the most downstream and least developed country needs a functional River Basin Organization (RBO) as part of the MRC, and the 4Ps Area though entirely located in Cambodia will be to a certain extend impacted by what is going to happen in the 3S areas . Four issues merit particular attention at national level: 1. The need for effective implementation of the rule of law, with low levels of corruption 2. Lack of appropriate regulation and infrastructure, leading to limited market access and expensive credit 3. Top-heavy decision making despite a multi-tiered governance system; the decisionmaking process is slow, arduous and not always efficient. Ambiguity also exists in decision making where more than one authority makes decisions on the same matter, e.g. land 4. Low state revenues and civil service salaries. This leads to poor motivation and continuance of low skills levels, which are likely to underlie poor service delivery, particularly in rural areas Among the more worrisome outcomes of weakness in governance is the conflict over land, since it deprives the poor of their sources of livelihood. Worst affected are the 4Ps Area areas. In migration of people into the area in search of improved livelihoods also has been considerable and due in part to insecurity of land tenure as well as to displacement. Indigenous minorities are particularly adversely affected by this type of displacement. At the 4Ps level the governance strength depends mainly on the provincial district and commune administration capacity. Under the national Strategic Development Plan (NSDP) 2006-20101, which is the equivalent of Cambodia’s Poverty Reduction Strategy (PRSP), decentralization and deconcentration (D&D) is considered perquisite for poverty reduction. The RGC is implementing a project to Support Democratic Development through Decentralisation and Deconcentration (PSDD). The goal of the PSDD is to reduce poverty in Cambodia through support to D&D reform. The specific purpose of the PSDD is to improve governance, service delivery and development for rural poor. Progress will be realized by a focus on three objectives: o Objective 1: strengthening local government systems ads structures to enable better pro-poor investments; o Objective 2: improving the quality, accessibility and equity of services at the subnational level; and o Objective 3: prior and following enactment of the organic law on D&D, supporting a more effective policy, legal, political, institutional and administrative framework that will give poor greater access to and benefits from local services. The Poverty Reduction Strategy, Decentralisation and Deconcentration: RGC priority development goals are defined in National Strategic Development Plan (NSDP) 2006-2010. This key document outlines a strategy to reduce poverty and achieve Cambodia’s MDGs. Good governance is central to this strategy. Taking steps to make decentralization and deconcentration more effective is regarded as prerequisite for poverty reduction as well as principle means to advance RGC’s agenda on anti corruption, and public administration/finance reform. The DSDP explicitly states eight “key actions” for D&D. These are: 1. Draft organic law to guide the devolution process; 2. Delegate line ministry responsibilities, development and operational funds to subnational levels in accordance with laws and regulations 3. Define a framework for decentralization of existing initiatives of line ministries, including education, health, agriculture and rural development, land management, urban planning and concentration. 4. Institutionalise the allocation mechanism for transfer of block grants and sector grants to sub-national levels; 5. Increase and better target funds to remote/other regions with high poverty levels 6. Explore how sub-national levels can develop their own sources of revenue 7. Steadily implement a commune decentralized accounting system 8. Build capacity at all sub-national levels. The success of the implementation of the 4Ps development programme depends largely on its institutional setup and functioning aligned with the D&D and C/D/P frameworks. Project description Institutional framework for the implementation of the 4Ps roadmaps will largely dependent on current national, provincial district and commune administrative framework and capacity. Human resources are scarce especially in technical skills, many commune, districts councils have limited education and experience in project design and management as well as planning. To make road map implementation effective and beneficial to local communities following institutional strengthening and capacity building are proposed:

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1.

Programme support to local administration services: this project will review existing capacities (governance, administrative and financial) of communes, districts and provincial authorities of the 4Ps Area and identify , prioritize project components to fill capacity gaps of what is required in medium to log terms; 2. To implement IWRM- development programme identify and prioritize project components to identify gaps to be filled to effectively implement the programme: Project components will be: 1) physical planning: infrastructure, landscaping, land use planning, zoning; 2) project development and management to enable meaningful participation of stakeholders in the development process; 3) communities development for operation and maintenance of water management infrastructures 3. To implement Integrated Agricultural Programme: The project will consist of the following components: 1) extension services for agriculture intensification and diversification including livestock, crop innovation and agricultural practices; 2) experimental and demonstration fields in crop innovation and livestock; 3)micro credit and marketing including cooperative development; 4) eco and cultural tourism development and management 4. To implement integrated energy of the 4Ps Area: public and private capacity in integrated energy development (mini-micro hydropower, wind energy, biomass energy source. Public participation will be implemented throughout. Six months PPTA for programme elaboration for investment

Milestones Estimated total cost

Relation to other projects This programme forms an important part of the basis for successful implementation of resource-based development in the area. Comments Appendices

3

Integrated Agricultural Development

Date/revised Origin/raised by Priority Status Implementation Location Justification CNMC To be determined Under consideration MAFF, MOWRAM, MRD, MIME 4Ps river basin. Each sub-basin will have an agricultural programme as part of the overall 4Ps programme Agriculture productivity of the 4Ps Area is extremely low as compared to other regions of the country and neighbouring countries. For example, Mondulkiri Province produces on average only about 2,000 t rice per annum while the minimum requirement is about 7,000 t. Kratie Province produced (in 2004) about 24,000 t, with 40,000 t/year needed for minimum consumption. Major problems are (i) low water management infrastructures development; (ii) high exposure to risks such as flood and droughts or damage by pests; (iii) low skills in agricultural technology; and (iv) limited access to safe agricultural land for crop production 87% of farmers hold less than 1.0 ha land. Current globalization has opened the best parts of agricultural land to new economic agriculture, mining concessions, and migration from outside which add increasing pressure on land and other natural resources vital for sustainable development of the basin. The majority of people exposed to risks are ethnic minorities in both provinces of the 4Ps Area, they are the poorest groups, and their livelihoods depends largely on NTFP which is becoming increasingly limited while facing many more problems such as child malnutrition, illiteracy, low access to safe water and sanitation etc. The population is increasing, and so is the demand for more food and improved livelihoods. The current way of using and managing natural resources can not sustain medium to long term needs. If trends are allowed to continue the area will face serious consequences caused by increasing conflicts, natural and human made disasters, and governance problems. The current development stream is driven by globalization and the need of raw materials to feed the economic boom of fast growing countries in the region. The need of new land, hard wood, mineral resource and land for properties put the resources of the 4Ps Area under increasing pressures from new, rapid and sometimes destructive natural resource exploitation. If not properly assisted the local population would have few options to develop, as envisaged in the national poverty reduction efforts.

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To support national MDGs and the National Rectangular Strategy the 4Ps Area needs a well integrated agricultural development and management programme built based on the concept of sustainable development, multidisciplinary integration and participatory process. The programme shall have the following components: i) Agricultural innovation based on solid extension services built from grass root level; ii) market support with connectivity to national and regional consumers; iii) agricultural credit and cooperative development; and iv) continuous capacity building and open information exchange and sharing system. The integrated agricultural development and management planning programme will work in integrated way with water infrastructure development and management, energy development and management programmes and institutional development programme towards a common strategic direction for the 4Ps Area. Expected outputs The overall objective is to achieve sustainable development and management of natural resources in the 4Ps Area for poverty reduction and livelihood improvement of the people in the 4Ps Area. The immediate objectives are: 1. To establish and implement medium to long term sustainable integrated agricultural development programme in the 4Ps Area with meaningful and effective participation by stakeholders 2. To develop medium to long term capacity building in development and management of integrated agriculture development. Major outputs: A comprehensive medium to long term programme for integrated agricultural development of the 4Ps Area includes: 1. Programme support for better land use with application of modern agricultural inputs, the programme is aiming at: reducing cost of production, addressing issues of low soil fertility, adapting to new innovation; introduction of crop diversification (new cereal for animal feeds, for oil such as jatropha, castor, cassava etc), introduction of integrated approach 2. Programme for harnessing water for irrigation programme ( to be provided in IWRM programme): programme and information on surface water, ground water and governance 3. Programme for affordable credit accessible to community: development of comprehensive agricultural modernization package, backup by agricultural extension services 4. Programme to support output price stability: support communities in the value chain; introduction of contract farming process 5. Programme support for fisheries and livestock marketing: aquaculture and livestock support programme and food processing 6. Programme support for non food sector: silk and cotton production and weaving, brick making, wood processing and furniture making, weaving mats from rattan and other natural fibres, stone quarrying, handicraft and pottery, rural road transport (operation and repair), hides and leather, rural electrification- power from engines for local distribution, charging batteries, etc., retail trade and transport To support the country development, the RGC targets the promotion of livelihoods for prosperity and peace. In spite of all progress made so far, the poverty and near poverty rates remain high; and human development indicators continue to reflect difficult living conditions, especially in rural areas, where 85% of people live at subsistence or near subsistence level. Recent economic growth has been principally urban-based. To sustain the achieved development growth, it is necessary to broaden the sources of benefit of the growth, while mitigating the emerging risks. The growing prosperity need to be progressively transferred to and shared with the less fortunate in rural areas to help to secure longer-term peace and stability by reducing some of the growing risks from rising land tensions, rapid gap widening between rich and poor, perceived widespread corruption. The Rectangular Strategy of the Government and the National Strategic Development Plan (2006-2010) provide a broad road map toward this objective, emphasizing improved governance, a considerable increase in public investments in rural areas, and support to development of job-creation in private sector. The implementation quality might be still critical, will be best prioritized and targeted at areas offering highest returns for improving human being, achieving shared prosperity and securing long term peace and stability. The highest rates of return are likely to be generated from targeted efforts in the following areas: 1) fair and effective governance of land; 2) a substantial increase in public investments in agricultural productivity; 3) diversified and broadened job-creating sources of growth in urban and rural areas; and 4) substantial investment in human capabilities. Advances in rural development will require sizable public investment to improve agricultural productivity and diversification through increasing access to extension services, strengthening economic linkages, and dramatically improving infrastructure such as roads, irrigation, and electrification. These changes are particularly urgent given rapidly growing

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number of youths entering the labour force and limited employment opportunities. Project description The majority of the population in the 4Ps Area are subsistence farmers depending principally on mono crop agriculture namely wet and dry season rice (recession rice is practiced only in the Mekong flood plain). Existing production systems are vulnerable to climate variability such as droughts and flood. They are extensive and economically and environmentally unsustainable since they depend largely on natural resources and conditions. The 4Ps natural conditions offer ample space for improved and systematic development opportunities by introducing new technology, innovation and best practices as well as institutional capacity and farmer’s involvement in planning and decision making. With improved water management facilities and electricity development programme and institutional strengthening programmes, the Integrated Agriculture Development and Management Planning will have the following components: Component 1 - Land Use and Cultivation Technology This component will promote better land use with application of modern agricultural inputs. The component intends to introduce and strengthen extension services for improved seeds such as HYV, new planting method such as SRI, better access to affordable fertilizer, introduction of soil conservation and cultivation practices, introduction of adapted and improved new farming system including agro-forestry and new crops such as new cereal for animal feed (corn, sorghum and millet etc.), new grass for soil and water conservation as well as for animal feed (vetiver grass), cassava, jatropha, castor etc. and new cash crops such as coffee and cacao. And introduction of integrated farming approach. Component 2 - Water for Irrigation This programme is covered under Component 1 of the present roadmap. Component 3 - Credit The majority of subsistence farmers in the 4Ps basin do not engage with modern banking system, including microfinance, because they do not necessarily possess the capacity to meet repayment schedules. Some may not even trade their products; hence they are naturally outside the banking paradigm. Current statistics has shown that less than one third of the total workers in the country has access to credit. The credit gap is presently bridged by local merchants, who may not be monopolists in the classical sense but have cash and access to market information, which farmers do not. The merchant lend inputs (or credit in lieu thereof) at money interest rates of seven to ten percent. These high interest rates place farmers, particularly small ones, in risk-disadvantageous positions. If subsidized loans available to Cambodia for rural/agricultural lending from international agencies, are transferred by the Central bank of the Rural Development bank and then to the farmers, without a large makeup by these intermediaries, relatively cheaper loans will be to lend to farmers if they mortgage their land title papers for collateral, and that disputes if any, are quickly settled. Thus, if land titling is completed quickly, local governance is improved ( to ensure recovery), markets are competitive enough for small farming to be profitable, and farmers quickly become more profitable with the assistance of extension services, the larger quantities of affordable credit will begin to flow to the sector. Component 4 - Support to Output Price Stability In the value chain, the position of the farmers is the weakest, partly due to the lack of information, partly to the indebtedness, and partly due to their weak financial position, each of which forces farmers to dispose of their stock as quickly as possible and at whatever price is available. Acute asymmetry of information prevails for other crops than rice too: ethnic minorities sell their cashew nut at a price as much as half of what other can get for the same quality and in the same market. The programme will assist farmers to assist farmers to act collectively as farmers cooperative or association to improve their bargain power by assisting them to organize storage facilities where members can borrow and can sell when they can get good price or can establish a sell contract farming process. Component 5 - Support to Fisheries and Livestock Marketing Fish is an important resource in the lower part of the four Preks. This component will assist farmers in establishing communities for fish stock management as well as aquaculture at community and family level. The programme will also assist fishermen communities in fish marketing by providing adequate extension service. The 4Ps Area has potential for livestock production but lack of technical, financial and marketing capability. The programme will assist farmers in livestock quality improvement for export oriented by providing extension services support, introducing well adapted and diversified livestock (cows, goats including wild animal raising). The programme will also introduce new animal feeds such as millet and sorghum or vetiver grass ( a grass which has been successfully used for soil conservation, slope reinforcement, soil and water conservation, animal feeds and handicraft etc.

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Component 6 - Support to the Non-food Sector The programme aims at assisting subsistence farmers to diversify non-farm and off-farm ventures to add values to its produce and diversify employment by: 1) adding value to existing agricultural produce: rice, fruits, fish and other agro-products. There are potential benefit from the agro-products (e.g. seasonal fruit and vegetable) in the countryside, 2) expanding activities outside the agricultural sector. handicraft/pottery, cotton or silk weaving, brick manufacturing, silk worm and silk production, engine repair and other services such as furniture making etc. A local variety of palm trees, the Sogo palm/ metroxylon Sugu (known by local name as “Chre”) and other medicinal plants will be collected and improved and protected for local uses possibly for export for income generation. Milestones Estimated total cost Relation to other projects The programme provides strategic directions for sustainable development of water and related resources in the 4Ps Area. This would lead to the establishment of effective development and management collaborative framework for achieving the vision of the basin. The programme supports the national MDGs, the Rectangular Strategy, the National Strategy for Poverty Reduction and the decentralization and deconcentration policy. Also, the programme will assist the government in effective implementing its water law based on IWRM principles. Comments The programme intends to provide a strategic direction or roadmap for development of water and related resources of the basin rather than to try to build on standard planning based on rigid “master plan” which requires intensive technical and financial resources that the country, local authorities and communities could not meet. The roadmap is designed in a flexible way that could evolve with time in terms of degree of sophistication, number of projects and activities according to national and local absorption capacity. The implementation is based on performance results with focus on participation process and basin integrity. Six months PPTA for programme elaboration for investment

Appendices

4

Integrated Energy Development and Management Programme

Date/revised Origin/raised by Priority Status Implementation Location Justification CNMC To be determined Under consideration MIME, MOWRAM, MRD, MAFF Entire 4Ps river basin - possibly expanded to cover the entire Kratie and Mondulkiri provinces In Cambodia, the electricity charge is the highest in the region, and especially in the 4Ps Area. Fuel wood is the principal source of energy for domestic and commercial food cooking, and brick manufacturing. Charcoal production is increasingly becoming a new source for livelihoods of rural poor. This adds to the pressure on the remaining forests and the fragile environment of the basin, where most people are poor and their livelihoods depend largely on natural resources such as NTFP. At the same time, energy resources of the country remain largely untapped (water for hydropower, solar, wind, biomass etc.). For medium to long term sustainable development, the region needs a sound regional integrated strategy and policy making for effective and sustainable use of its resources namely water, forest, solar and land resources. Soils are generally poor, and forests and land degrade rapidly, so there will be an increasingly limited access to those resources, especially for the poor and ethnic minority groups. Standard large scale electricity production can generally not reach poor communities due to high transmission line cost. The country has no national grid and its electricity supply consists mainly of isolated grids centred around major cities, provincial capitals and small towns. Almost 90% of the households in the country have no access to modern electricity services, and the Government of Cambodia has made rural electrification as one of its key energy sector priorities. Rural electrification is prominent in the national energy and power sector development policies. Under the Power Sector Policy, the government sets the following long term targets: • Increase the access rate to reliable and good quality electricity services to 70% of rural households by year 2030, and • 90% of villages will be electrified by year 2030. A village is considered electrified when most community facilities and more than 50% of households have electricity.

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In addition, the government also sets a short-term target of 25% of households to have electricity connection by 2010. To achieve this target, the government plans to undertake various electrification strategy options, such as: • grid extension • cross-border power supplies from neighbouring countries; • rehabilitation of existing isolated grid systems in provincial towns; • creation of new isolated grid systems; • renewable rural source of electrification such as: solar, (mini-micro hydropower), biomass, biogas etc. • provision of battery- based and stand alone systems for dispersed customers. The government also recognizes the important role renewable energy technologies can play in increasing electricity access particularly in rural areas. Under the Renewable Energy Action Plan of (REAP, the government aims to achieve the following: • 5 % of new electricity generation, about 6 MW, will be supplied by renewable energy technologies; • 100,00 households will be supplied electricity from renewable technologies on a competitive basis; • 10,000 households will be served by solar photovoltaic systems; • sustainable market for renewable energy systems. At the national level, 90% of the country energy consumption is relying on fuel wood, followed by 15% of charcoal - both based on local forestry resources. 79% of households depend on kerosene for lighting, car batteries 4%, private electricity generation 1%, and 13% use city electricity generation. Improvements are expected soon, however. Expected outputs Major expected outputs are: 1 A comprehensive integrated energy development in the 4Ps Area incorporating all available energy components including their respective potential 2) Livelihoods supporting local energy production (biomass production for energy production) 3) Capacity of national and local communities on integrated energy development focusing on mini and micro hydropower, biomass, solar and wind energy The national government policy is to: 1) provide an adequate supply of low cost energy for household throughout the country; 2) ensure a reliable and secure energy supply at a price which can attract investment and economic development in the country; encourage efficient use of energy and to minimize environmental effects resulting from wasteful use of unplanned energy; 3) encourage exploration for an integrated source of energy and environmentally sound to increase the country energy efficiency for economic development The 4Ps Area is the poorest region of the country with fragile environment under increasing new development pressure such as forest, land and mining concessions while vital infrastructures are still largely underdeveloped such as access roads, water management infrastructures, access to markets etc. Additionally majority of the population are ethnic minorities with different cultures, social values and different living style than the rest of the country. To assist local communities to better adapt and adjust to medium and long term changes brought about by new development an integrated medium to long term plan is required. With improved access to markets, the 4Ps Area natural resources are depleting rapidly from forest to mineral resource. The pressure on forest resources is remarkably high caused by continued illegal logging, commercial land concessions and increasing supplementary livelihoods such as wood supply for manufacturing (brick, tile), in commercial (bakeries, hotels, eating house) and charcoal production. About 80% of rural population has no access to electricity. Over the years, the process has transformed large primary forest area into secondary forest or grassland and often into idle land of little use. Water in the basin is mainly available in the wet season, representing about 90% of annual river flows. The existing hydropower potential will not be able to meet future energy needs of the basin for the whole year without other sources. The objective of the programme is to establish a medium to long term integrated and sustainable energy development in the 4Ps Area including hydropower, bio-fuel, solar and wind energy. Hydropower Hydropower development is covered under Component 1 of the present roadmap.

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Project description

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Solar Energy The current utilization of solar power in the country is low, recent data shows that the total installed capacity in the country is around 300 kW, while the potential peak capacity could reach as much as 4,000 MW, with the higher altitudes of the 4Ps Area being the most favourable. The Tuk Char mini hydropower plant in Kampong Cham uses solar energy as a supplement to hydropower. This component is aiming at 1) establishing the role, needs and preference of solar energy as supplement source of energy to other source such as hydropower and biomass energy; 2) identification of potential users (communities and business); and 3) mobilising national and local expertise in solar energy installation, operation and management. Biomass Development This component is aiming at : 1) developing medium scale biomass generation based on proven technologies and using agricultural residues and products from community forestry; 2) promoting agricultural diversity and export; 3) developing the use of small scale biomass generators using residual waste and products from community forestry; and 4) developing necessary infrastructure for efficient operation, such as transport network for supply of biomass fuel. More than 80% of the population in the basin are poor subsistence farmers. Extra income generation and diversification are vital for their livelihood improvement. In the basin near to the villages there are large areas of underused of shrub or degraded land which could be transformed into communities forestry areas managed by local communities. Fast growing plants such as Leucanea and other fast growing trees can play many functions for farmer livelihood income generation namely: leaves for cattle feeds, fuel wood for sale, agroforestry and soil improvement by their capacity in nitrogen fixation. Large scale development of such plantation could supply wood for electricity generation and export to other area. The study will review existing studies and application in the country and in the region for the viability of its application in 4 Ps areas. The study will be part of integrated farming system consisting of livestock feeding improvement, soil conservation, fuel wood production and environment management. . Bio-fuels and Energy Crops This component aims to 1) investigate and adapt appropriate bio-fuel technology which can feasibly be manufactured in large quantities in the 4Ps Area (such as biodiesel, vegetable oils); 2) investigate, test and establish energy crops suitable for the chosen bio-fuel types; 3) look at the possibility of using bio-fuel to substitute for diesel in transport and power generation; and 4) develop an export market for bio-fuel and associated products. Soil conditions of most part of the 4Ps Area are suitable for bio fuel plants such as Jatropha which could produce quickly and readily bio diesel for local use such as diesel pumps or seed for sell. Sugar cane and cassava are being expanded in the area but so far are not yet studied for their use as bio fuel for electric generation Wind Energy The most comprehensive source of information on wind energy resources in Cambodia is the Wind Energy Resources Atlas Report in Southeast Asia commissioned by the World Bank which covers Cambodia, Laos, Thailand and Vietnam. The Atlas shows that the theoretical wind energy resources potential in Cambodia amounts to 1,389 MW. The eastern part of the 4Ps Area has potential for wind energy development for rural electrification. Cambodia has very limited experience on wind energy for electricity generation. NEDO has installed four small wind turbines, and Marubeni Corporation in Mondulkiri has prepared a plan of hybrid (wind and solar panel) power generation with a total installed capacity of 1.4 MW. Milestones Estimated total cost Relation to other projects The component supports sustainable development in the 4Ps Area. This would leads to the establishment of effective development and management collaborative framework for achieving the vision of the basin. The programme support the national MDG, the Rectangular Strategy, the National Strategy for Poverty Reduction, the decentralization and deconcentration policy as well as assist the government in effective implementing its water law based on IWRM principles. Comments Appendices The implementation will take place in a dialogue with stakeholders. Six months PPTA for programme elaboration for investment

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Tourism Development

Date/revised Origin/raised by Priority Status Implementation Location Justification CNMC To be determined Under consideration MOT, MOE, MRD, MAFF Entire 4Ps river basin - possibly expanded to cover the entire Kratie and Mondulkiri provinces Cambodia is still developing its attractive tourism potential. In 2006, the country received 1.7 million international visitors, but many of these flew directly into Siem Reap without experiencing or seeing any other aspects of the country. The lack of established tourism products and destinations in Cambodia means that tourists stay for a short time and continue to other destinations within the region to fulfil other needs and experience - e.g. beach, jungle, hill, tribal culture, tranquillity holidays, etc. A common concern raised by inbound tour operators is their inability to offer a diversified package for Cambodia to their outbound operators in Europe and North America, who continually request additional products. However, the lack of developed products and attractions curtail their ability to offer something apart from Angkor Wat, Phnom Penh, and Sihanoukville. Tour operators interviewed by a WWF ecotourism feasibility studies team were asked what they would require to create an ecotourism product for their clients. High end luxury accommodation was the most common response by all operators. Luxury resort is beginning to develop in Cambodia. For example, the Mondulkiri Protected Forest can offer a luxury experience in a remote area, with the opportunity to experience wildlife viewing not available elsewhere in Cambodia or in the region. Both Mondulkiri and Kratie provinces can offer solid bases for ecotourism development, Kratie by its location on the Mekong river bank where the mighty Mekong enters into its delta and the home of the remaining Irrawaddy river dolphin, whereas Mondulkiri with its mild all year round temperature, exceptional landscape with many waterfalls and the wildlife protected areas is an ideal place as a holiday destination (hiking and wildlife spotting. In Mondulkiri, in an effort to assist the Forestry Administration to secure the necessary funding to manage the protected area in the future, WWF has embarked on the development of an ecotourism project in cooperation with local communities aiming at protecting the landscape and generating new alternative for job for local communities to replace commercial hunting and commercial logging. This component builds on existing related projects and activities in the region. The expected output will be a comprehensive ecotourism development to reduce pressure on natural resources by providing alternative job creation, achieved by: 1. Wildlife management in the protected area of the 4Ps Area with participation by local communities 2. Ecotourism infrastructure planning and development 3. Capacity building and community participation in ecotourism planning and implementation The over-all objective of the programme is Sustainable medium to long term use of natural resources of the 4Ps Area by alleviating poverty and pressure on natural resources; The immediate objectives are: a) to strengthen capacity and efficiency of protected areas of the 4Ps Area with meaningful participation of local communities; b) to improve ecotourism and tourism infrastructures in the 4Ps Area by increasing public and private investment in tourism facilities (roads, accommodation, quality services and environment) c) to build capacity of tourism development and management focusing on ecotourism and poverty alleviation in particular. Major outputs are: 1. Increased community participation in natural resource use decision making, and ensured access and sharing benefits of the associated economic benefits 2. A functional wildlife and natural ecotourism in the protected areas of the basin 3. A functional community-based monitoring of indicators species in order to track the progress of wildlife restoration and inform natural resources management efforts 4. An evident increase of wildlife in the protected area 5. Noticeable increase of public and private investment in tourism infrastructure 6. Improved services in ecotourism and tourism in general

Expected outputs

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Strategic relationship

The 4Ps Area is under increasing pressure from rapid land use changes and pressure on natural resources such as forest, water and mineral resources while remaining the poorest and most isolated part of the country. Public investment is comparatively low as compared to national level. The 4Ps with its connection with the Mekong river and an exceptional landscape of Mondulkiri with its mild climate and rather low population intensity could enjoy significant benefits from development if appropriate strategy has been developed and implemented making use of assets and particularity of the basins. Human resources development shall be the main focus to be built through other five development programme of the basin. Tourism is seen as the most attractive development initiatives while preserving natural resources. The success of the programme would depend on local authorities and their ability to mitigate these impacts, indicating the need for strong leadership and guidelines for conservation and tourism development, before tourism occurs in the area. By encouraging the protection of resources for tourism, retaining ownership for future sustainability, and building awareness in community participation, the situation of land clearing and wildlife trade could begin to be addressed. The component is aiming at taking maximum advantage of existing special physical and natural conditions of the 4Ps Area for ecotourism and tourism development in general. The project will be based on existing works on ecotourism in the 4Ps Area. Protected areas

Project description

From an investment point of view, it is considered that reasonable conditions for undertaking a tourism venture would include: • A stable economic environment that allows the investment to operate and grow, and an effective political structure that gives security to investment; • a level of ownership rights that allows for effective and inclusive decision-making and participation within the local community; • perceived and actual safety and security for visitors; • market feasibility outlining demand and return for a particular investment; • low health risk, access to appropriate medical services, and a clean water supply; • the ease of physical access and ability to connect to the site; • secure land tenure and protection, with right and powers to the relevant governing authorities; and • conservation of landscapes and biodiversity. Milestones Estimated total cost Relation to other projects The tourism development component is related to several other components: 1) Water supplies and services; 2) Integrated energy development; 3) Integrated agricultural development; 4) human resources development. At the national level it supports the D&D programme, the NSDP and the Rectangular Strategy. Comments Appendices Three months PPTA for programme elaboration for investment

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Appendix B: The Rectangular Strategy of Cambodia
Presented by the Prime Minister, Samdech Hun Sen, on 26 Sep 08 This Rectangular Strategy for Growth, Employment, Equity and Efficiency Phase II is an update of the 1st National Rectangular Strategy from 2004, which in turn built on a preceding triangular strategy.

The Rectangular Strategy has been formulated as an integrated structure of interlocking rectangles. In brief, the components of the Rectangular Strategy are as follows: FIRST, the core of the Rectangular Strategy is Good Governance, focused at four reform areas: (1) Fighting corruption; (2) legal and judicial reform; (3) public administration reform including decentralization and deconcentration; and (4) reform of the Royal Cambodian armed forces. SECOND, the environment for the implementation of the Rectangular Strategy consists of four elements: (1) Peace, political stability, security and social order; (2) Cambodia's integration into the region and the world; (3) partnership in development with all stakeholders, including the private sector, donor community and civil society; and (4) favorable macro-economic and financial environment. THIRD, the four strategic 'growth rectangles' are (1) enhancement of the agricultural sector; (2) further rehabilitation and construction~ of the physical infrastructure; (3) private sector development and employment; and (4) capacity building and human resource development. FOURTH, each strategic 'growth rectangle' has four sides: RECTANGLE 1, ENHANCEMENT OF THE AGRICULTURAL SECTOR covers: (1) improving agricultural and diversification; (2) land reform and clearing of mines; (3) fisheries reform; and (4) forestry reform. RECTANGLE 2, FURTHER REHABILITATION AND CONSTRUCTION OF THE PHYSICAL INFRASTRUCTURE covers: (1) Further restoration and construction of transport infrastructure; (2) water resources and irrigation systems management; (3) development of the energy sector; and (4) development of information and communication technology RECTANGLE 3, PRIVATE SECTOR DEVELOPMENT AND EMPLOYMENT covers: (1) Strengthening the private sector and attracting investments; (2) creation of jobs and ensuring improved working conditions; (3) promotion of SMEs; and (4) creation of social safety nets RECTANGLE 4, CAPACITY-BUILDING AND HUMAN RESOURCES DEVELOPMENT covers: (1) Strengthening the quality of education; (2) enhancing health services; (3) implementation of gender policy; and (4) implementation of national population policy,

1: Enhancement of the agricultural sector 2: Further rehabilitation and construction of the physical infrastructure Good governance 3: Private sector development and employment

4: Capacity-building and human resources development

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Appendix C: 1st Stakeholder Workshop

The workshop took place from 18-20 January 2010 at Hor Bunny Hotel, Kratie. It was directed by HE Watt Botkosal, Cambodia National Mekong Committee (CNMC). There were some 60 participants, including CNMC (the organiser); guests from CRBOM, the Philippines and Viet Nam; representatives from 6 ministries; representatives from Kratie and Mondulkiri Provinces; and community representatives. The workshop was opened by HE Sin Niny and representatives from the two provinces and ADB. The programme included background presentations about past and present water-related development in the area; institutional aspects; thoughts to share from other river basins; and several plenary discussions. A half-day field trip went to Kohsakrom irrigation scheme and its Farmers Water User Community; driving along the Mekong; mouth of Prek Kampi; dolphin spotting; and Kratie riverfront and bank protection. A group discussion with plenary was held about present development needs and options. A total of 50 recommendations were made regarding development related to water resources; floods and drought; agriculture; forestry; fisheries; hydropower; mining; tourism; institutional aspects; and human resources development. These recommendations will be carried forward to the draft roadmap, together with investment needs identified during previous studies, and elements from the provincial investment plans. The draft roadmap will be reviewed at a subsequent workshop.

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Appendix D: 2nd Stakeholder Workshop

The workshop took place from 12-14 August 2010 at Mondulkiri Hotel, Mondulkiri. It build on proceedings of a previous workshop, held in January 2010, and aimed to elaborate and consolidate the recommendations made on institutional framework, basin profile, and investment roadmap. The workshop was hosted by Cambodia National Mekong Committee (CNMC). There were some 60 participants, including representatives from 8 ministries; Kratie and Mondulkiri Provinces; districts; 2 private sector representa-tives; WWF/NGO Forum; ADB; and guests from the Solo River Basin (Indonesia), Central Cebu (the Philippines), and the Vu Gia-Thu Bon Basin in Viet Nam. The workshop was opened by HE Watt Botkosal and representatives from the two provinces and ADB. The programme included a status; background presentations about the draft basin profile and draft roadmap; institutional aspects; presentations from other river basins; and thematic group and plenary discussions. Observations were made on the value of community involvement; the need for livelihood development, including resource-based livelihoods; the attactive potential for tourism development; and the benefis of knowledge-sharing. Several participants commented on the less than perfect availability of data and information, and the risk that an imperfect decison basis could, in itself, impede development in the area. A half-day field trip included land use in the upper Prek Te basin, the Busra waterfall and the O'Moleng microhydropower station. Group discussions and a plenary were held about institutional framework; water resources management; agriculture and fisheries; and tourism and hydropower. Many recommendations were made on the draft basin profile and roadmap. The recommendations are being carried forward to the consolidated documents.

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