KH - Livelihood Enhancement and Association of the Poor Project (LEAP) (WB-P153591)

Countries
  • Cambodia
Where the impacts of the investment may be experienced.
Specific Location
47 communes in Siem Riep and 13 sangkats in urban Phnom Penh, Cambodia
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Feb 24, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
MINISTRY OF ECONOMY AND FINANCE
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Potential Rights Impacts
  • Healthy Environment
  • Housing & Property
  • Indigenous Peoples
  • Labor & Livelihood
  • Right to Food
  • Right to Water
Only for projects receiving a detailed analysis, a broad category of human and environmental rights and frequently at-risk populations.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 20.17 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 22.17 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ WB website

Updated in EWS Feb 22, 2018

Disclosed by Bank Jun 29, 2016


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Project Description

The proposed project objective is to provide poor and vulnerable households in selected rural and urban communities improved access to financial services, opportunities for generating income, and small-scale infrastructure.The proposed project will have 4 main components:

COMPONENT 1 Improving Livelihoods for Rural Poor and Vulnerable Househoulds (US$ 14 million):

This component will be in 47 communes in Siem Reap where will mobilize and build the Self-Help Groups (SHGs) of agricultural based in rural areas and the saving and credit groups for urban communities and establish the Commune Level Federations (CLFs) to support service for the producer groups. The activities include financing NGOs and community facilitators for social mobilization, capacity building training, provide supplies and equipment for community institutions. It will also support small-scale infrastructure facility like warehouses, water supply and sanitation, irrigation schemes, roads etc.

COMPONENT 2 Improving Livelihoods for Urban Poor and Vulnerable Households (US$ 4 million) :

The activities will be in 13 Sangkats in Phnom Penh, including Boeung Kak, and would include business support services, skills training, operation and management of livelihoods activities include food processing, handicraft making, off-site garment factory sewing/dress making, cosmetology services, tuk tuk etc. Bank documents also state that this component will also fund drainage system, community road/footpath, water supply and sanitation system and street light.

COMPONENT 3 Project Management (US$ 2 million):

This component will support overall implementation, supervision and coordination of the project at national, provincial, Sangkat and village level.

COMPONENT 4 Contingent Emergency Response (US$ 0 million):

This allow reallocation of a portion of undisbursed balance of the project for recovery and reconstruction support following a formal government request in the event of an eligible emergency.

Locations: The project covers 47 communes in Siem Reap, including Angkor Thum, Chi Kraeng, Kralanh, Prasat Bakong, Puok, Svay Leu, Siem Reap, Srei Snam and Sotr Nikum. As shown in the project map located in the Environmental and Social Management Framework, the project locations will also include 13 sangkats in urban Phnom Penh. Of note, one of the sangkats in the map is Boeung Kak 1, which may overlap with the contentious area involving the evicted Boeung Kak Lake communities.
As noted in that project map, the other sangkats in Phnom Penh include Srah Chak, Trapaing Krasang, Tumnob Tuek, Chbar Ampov2, Chaom Chau2, Dangkor, Chak Angre Leu, Prey Veng, Prek Leap, Khmounh, Kok Roka, Chrang Chamres.

Resources needed: It’s unclear, as sub-projects will be chosen later. However, project documents indicate that land may be acquired.

Early Warning System Project Analysis

APPLICABLE SOCIAL & ENVIRONMENTAL STANDARDS
Based on World Bank project documents, the following environmental and social safeguards are triggered:

Environmental Assessment OP/BP 4.01:

this safeguard is triggered the proposed project will consider funding small-scale infrastructure where identified by communities as priority needs. No major road construction activities will be supported, however, where road rehabilitation is expected to have significant positive impact on a larger poor community, the proposed project might consider. Investments could be made by groups or the proposed project in storages or small warehouses, community wells or simple on-farm irrigation equipment, household water supply improvements and sewerage and latrines, amongst other.

Involuntary Resettlement OP/BP 4.12:

triggered because some type of land acquisition could happen - mainly in a form of land donations [..] for such as small grain storage, cattle sheds and infrastructure also for [..] public infrastructure and services provision (upgrading of roads, water supply and sewerage systems, improving education and training facilities, and other small-scale investments) the bank document also mentioned Appropriate resettlement instruments (RPF, RAP, etc.), including land donation protocols should be prepared for the following reasons: because the LEAP project is embedded in a community driven development model whereby local communities/ groups of households (the SHGs) will be making decisions regarding the types of interventions they seek since these may require land donations and the acquisition of land; also for the urban support activities, the proposed assessment of urban poor communities should provide more detailed information. The Resettlement Policy Framework will be applied in the event resettlement occurs due to implementation of the Project and applies to all receiving financial or technical assistance from LEAP.

Physical Cultural Resources OP/BP 4.11:

triggered because the project may finance rural infrastructure such as irrigation system and reservoir for agricultural purposes, etc., which may impact on unknown, physical cultural resources Dust and noise from material and waste loading disposals and artefacts expose may affect the cultural site

Bank documents state that it is TO BE DETERMINED whether the following environmental and social safeguards are triggered:

Natural Habitats OP/BP 4.04:

to be determined because proposed sub-projects will include a minor sub- grant facility to producer group or their association to create small scale productive infrastructure (e.g. post-harvest processing equipment, storage facilities and poultry shed, etc.). These activities may affect the natural habitats, protected areas and biodiversity. The specific areas have not been identified.

Forests OP/BP 4.36:

to be determined because Small scale rural infrastructure and civil works such as irrigation system and reservoir may affect the forest in project area. Details about forest in project areas have not been identified.

Pest Management OP 4.009:

to be determined because Limited negative impacts on water quality may occur due to unsustainable farming practices and usage of chemical pesticides although the project will not promote purchase/use / promote an increase use of pesticides.

Safety of Dams OP/BP 4.37:

to be determined because The project will not support construction or rehabilitation of dams nor will support other investments that rely on the services of existing dams. However, it will be confirmed during project preparation if the project would finance the construction of small wiers[weirs] that will regulate the flow of small creaks which may be classified as dams.

Projects on International Waterways OP/BP 7.50:

to be determined because it is unlikely that project activities will involve in international waterways unless the project will finance the construction of gravity-fed water systems or small scale irrigation systems that take water from rivers that are direct or indirect tributaries of the Mekong, an international waterway.

People Affected By This Project

OUR RISK ASSESSMENT
There is limited information on the sub-projects at the time of writing. However, based on the project documents available, this project may impact the following human rights:

Right to Property and Adequate Housing:

Project documents state that project activities may include land acquisition in the form of voluntary land donations for small grain storage, cattle sheds and basic infrastructure (upgrading roads, water supply, irrigation and drainage systems). The Resettlement Policy Framework disclosed by the World Bank sets out guidelines for land donation and documentation for Components 1 and 2 and states that voluntary contributions will follow participatory and consultation measures and [would] not be approved where they would significantly harm incomes or living standards of individual owners or users. In relation to land donations, documents also state that project-affected people have the right to refuse to donate assets and receive their entitlement and compensation for their land and assets lost. They will be fully informed of their rights and access to grievance mechanisms described in the [Resettlement Policy Framework]. Nonetheless, this practice raises concern about how the voluntary donation process will be undertaken, given among other factors the shrinking democratic space in Cambodia. This might impact the right to property and adequate housing in the sub-projects area.

Impacts on this right are not entirely clear until sub-project selection is made. Bank documents say that the screening will exclude the following higher risk subprojects: (a) Infrastructure Subprojects requiring relocation of residences or commercial enterprises; (b) Infrastructure adversely affecting more than 200 persons in total; and (c) Infrastructure for which sources of necessary compensation have not been established. Bank documents have stated that in the case that the project involves a high risk sub-project, the Ministry of Interior (MOI) will contact the World Bank to determine whether such an activity is eligible based upon the significance of potential impacts, risks and the capacity of the implementing agencies to manage such risks.

Finally, there are questions, given that one project location is Boeung Kak in urban Phnom Penh, whether and how, if at all, this project may impact the remaining Boeung Kak Lake families. The project documents state: a LEAP funded would not be implemented to compensate the displacement of families affected by a contemporaneous development/commercial project.

Right to Livelihoods:

This triggered because the project may acquire agricultural land for building infrastructure. If the subproject areas are close to rivers and creeks, animal waste sanitation or construction of dam could impact local fisheries.

Right to Food:

To the extent that this project might acquire the land where local villagers use to grow crops for sustenance, the right to food could potentially be impacted.

Right to a Healthy Environment:

Bank documents state that the project would likely support animal raising and vegetable gardening. Without proper implementation, bank documents stated that the environmental impacts may include mild pollution of surface and ground water from animal wastes and agricultural farm inputs, loss of soil fertility and odor/smell from animal wastes. The construction of infrastructure could potentially create dust and noises in community and could remove or disturb the vegetation cover and/or trees.

Right to Health:

The bank documents mentioned the use of oil, paints, lubricants, batteries and toxic containing materials may be contaminated that may pose public health risk also the high level of dust and smoke during site clearance, excavation, running engine, and construction may affect respiratory system and eyes of locals.

Right to Water:

The assessment identified the waste and wastewater may be leaked or disposed into water sources nearby construction sites or downstream. If soil from slopes in the catchment run in to water can disturb water quality in streams and rivers during the construction of bridges or waste and waste water discharge. Surface water and ground water could be polluted by the septic tank.

Indigenous Peoples Rights:

The project may also have impacts on the rights of indigenous peoples. According to Cambodia Indigenous Youth Association, there are indigenous Kui community in Varin district, Siem Reap province. However, it is unclear whether this right is implicated, as sub-project locations are yet to be determined.

Investment Description
  • World Bank (WB)

Bank financing: World Bank
Borrower: Kingdom of Cambodia
Amount of bank loan or investment: $20 USD Million
Total project cost: $22 USD Million

Contact Information

WORLD BANK
Contact: Mudita Chamroeun
Title: Senior Rural Development Specialist
Tel: 5721+1316 /
Email: cmudita@worldbank.org

Contact: Erik Caldwell Johnson
Title: Senior Social Development Specialist
Tel: 5721+1314 /
Email: ejohnson1@worldbank.org

BORROWER/CLIENT/RECIPIENT
Name: KINGDOM OF CAMBODIA
Contact: Vanndy Hem
Title: Under Secretary of State
Tel: 023722964
Email: hemvanndy@hotmail.com

IMPLEMENTING AGENCIES
Name: Ministry of Agriculture, Forestry and Fisheries
Contact: Thaveak Amida Prak
Title: Deputy Secretary General
Tel: 017-227746
Email: prak.amida.dsg@maff.gov.kh

Name: Ministry of Interior (MOI)
Contact: Younell Hay
Title: Deputy Secretary General
Tel: 012989989
Email: younell.hay@gmail.com

Name: Phnom Penh Capital Hall (PPCH)
Contact: Huot Hay
Title: Deputy Director of Administration
Tel: 012977502
Email: huothay@gmail.com

Name: Siem Reap Provincial Municipality
Contact: Bunsong Khim
Title: Provincial Governor
Tel: 063761575
Email: younell.hay@gmail.com

CONSULTATIONS
The task team leader told the EWS team that there would be participatory process for all residents of commune/sangkat. The bank document stated that the consultations were organized at the Provincial level and more intensively at the Commune/Sangkat level to elicit issues and concerns about the project. Unknown number of selected Commune/Sangkat consultations were conducted in August 2016 where provincial, line agency officials, women’s group representatives, Commune/Sangkat council officials and major stakeholders were given a presentation of the project. Participants raised environmental concerns about soil erosion, dust and noise associated with rehabilitation work.

GRIEVANCE MECHANISMS
According to Bank documents, the grievance redress committees will be established at the villages, districts and provincial levels built on the existing structures consisting of concerned departments, mass organizations, women and ethnic representatives. At the village level, the existing grievance mechanisms will be chaired by elder and/or spiritual/tribal leaders. The grievance mechanism will be applied to persons or groups that are directly or indirectly affected by a project, as well as those that may have interests in a project and/or have the ability to influence its outcome either positively or negatively. If not satisfied or unclear about the implementation of resettlement related activities including the provision of compensation, may raise their complaints to the village committees. The claim may be made orally or in writing with assistance from the village committees who shall provide response to the claimant within 5 days after receipt of the grievance.

If the claimant is not satisfied with the decision made at the village level, s/he may submit the claim to the district level committee with support from the SMT1/SMT2. Within 15 days after receipt of the claim, the district committees shall make decision and provide response to the claimant.

The claim may be lodged with Provincial Court of Law whose judgment would be final. All complaints and grievances will be properly documented and filed by the district and village committee, and SMT1/SMT2 would address them through consultations in a transparent and proactive manner. These grievance documents and report will be made public accessible. All costs associated with grievance handing process incurred by the claimant and her/his representatives are to be covered by the project developer.

ACCOUNTABILITY MECHANISM OF WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. You can learn more about the Inspection Panel and how to file a complaint at: http://ewebapps.worldbank.org/apps/ip/Pages/Home.aspx.