Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD5563 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT PAPER ON A PROPOSED ADDITIONAL CREDIT IN THE AMOUNT OF SDR 26.40 MILLION (US$35 MILLION EQUIVALENT) TO THE KINGDOM OF CAMBODIA FOR THE ROAD CONNECTIVITY IMPROVEMENT PROJECT FEBRUARY 23, 2024 Transport Global Practice East Asia And Pacific Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective January 31, 2024) Currency Unit = Cambodian Riel (KHR) KHR 4082.9658664 = US$1 US$ 0.7519475 = SDR 1 FISCAL YEAR January 1 - December 31 Regional Vice President: Manuela V. Ferro Country Director: Mariam J. Sherman Regional Director: Sudeshna Ghosh Banerjee Practice Manager: Benedict L.J. Eijbergen Task Team Leaders: Bowen Wang, Sadig Aliyev, Veasna Bun ABBREVIATIONS AND ACRONYMS AF Additional Financing ASEAN Association of Southeast Asian Nations AWPB Annual Work Program and Budget CCDR Country Climate Development Report CBA Cost-benefit Analysis C-ESMP Contractor’s Environmental and Social Management Plans CPF Country Partnership Framework DA Designated Account DSC Design and Supervision Consultant ESS Environmental and Social Standards ESMP Environmental and Social Management Plans ESMF Environmental and Social Management Framework EIRR Economic Internal Rate of Return FM Financial Management GRM Grievance Redress Mechanism GBV Gender-Based Violence IDA International Development Association ISR Implementation Status and Results Report IPPF Indigenous People Planning Framework IFR Interim Unaudited Financial Report LMP Labor Management Procedures MPWT Ministry of Public Works and Transport MRD Ministry of Rural Development MEF Ministry of Economy and Finance M&E Monitoring and Evaluation NPV Net Present Value OPBRC Output and Performance-Based-Road Contract OHS Occupational Health Safety PDO Project Development Objective PSC Project Steering Committee RCIP Road Connectivity Improvement Project RGC Royal Government of Cambodia RPF Resettlement Policy Framework RP Resettlement Plan RRAMS Rural Road Asset Management System SEP Stakeholder Engagement Plan SDR Special Drawing Rights SORT Systematic Operations Risk-Rating Tool TA Technical assistance VAC Violence Against Children VOC Vehicle Operating Costs Cambodia Additional Financing to Road Connectivity Improvement Project TABLE OF CONTENTS I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING ........................................ 7 II. DESCRIPTION OF ADDITIONAL FINANCING .................................................................... 11 III. KEY RISKS ..................................................................................................................... 14 IV. APPRAISAL SUMMARY .................................................................................................. 15 V. WORLD BANK GRIEVANCE REDRESS .............................................................................. 23 VI SUMMARY TABLE OF CHANGES ..................................................................................... 24 VII DETAILED CHANGE(S) .................................................................................................... 24 VIII. RESULTS FRAMEWORK AND MONITORING ................................................................... 27 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) BASIC INFORMATION – PARENT (Cambodia Road Connectivity Improvement - P169930) Country Product Line Team Leader(s) Cambodia IBRD/IDA Sadig Aliyev Project ID Financing Instrument Resp CC Req CC Practice Area (Lead) P169930 Investment Project IEAT1 (9381) EACMM Transport Financing (8863) Implementing Agency: Ministry of Rural Development, Ministry of Public Works and Transport ADD_FIN_TBL1 Is this a regionally tagged project? No Bank/IFC Collaboration No Expected Approval Date Closing Date Guarantee Environmental and Social Risk Classification Expiration Date 16-Jul-2020 31-Jul-2027 Substantial Financing & Implementation Modalities Parent [ ] Multiphase Programmatic Approach [MPA] [✓] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) [ ] Hands-on Expanded Implementation Support (HEIS) Development Objective(s) Page 1 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) The project development objective is to improve climate resilient road access to economic and human development facilities in targeted provinces. Ratings (from Parent ISR) RATING_DRAFT_ NO Implementation Latest ISR 08-Oct-2021 31-Jan-2022 12-Aug-2022 21-Dec-2022 20-Jun-2023 17-Nov-2023 Progress towards achievement of S S S S S S PDO Overall Implementation S S MS MS S S Progress (IP) Overall ESS Performance S S S S S S Overall Risk S S S M M M Financial Management S S S S S S Project Management S S MS MS S S Procurement S S MS MS S S Monitoring and Evaluation S S S S S S BASIC INFORMATION – ADDITIONAL FINANCING (Additional Financing to Road Connectivity Improvement Project - P181396) ADDFIN_TABLE Urgent Need or Capacity Project ID Project Name Additional Financing Type Constraints P181396 Additional Financing to Cost Overrun/Financing Gap No Road Connectivity Improvement Project Financing instrument Product line Approval Date Page 2 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) Investment Project IBRD/IDA 15-Mar-2024 Financing Projected Date of Full Bank/IFC Collaboration Disbursement 30-Sep-2029 No Is this a regionally tagged project? No Financing & Implementation Modalities Child [ ] Series of Projects (SOP) [ ] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a Non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made disaster [ ] Alternate Procurement Arrangements (APA) [ ] Hands-on Expanded Implementation Support (HEIS) [✓] Contingent Emergency Response Component (CERC) Disbursement Summary (from Parent ISR) Net Source of Funds Total Disbursed Remaining Balance Disbursed Commitments IBRD % IDA 100.00 13.66 84.07 14 % Grants % PROJECT FINANCING DATA – ADDITIONAL FINANCING (Additional Financing to Road Connectivity Improvement Project - P181396) PROJECT FINANCING DATA (US$, Millions) SUMMARY -NewFi n1 SUMMARY (Total Financing) Page 3 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) Proposed Additional Total Proposed Current Financing Financing Financing Total Project Cost 100.00 35.00 135.00 Total Financing 100.00 35.00 135.00 of which IBRD/IDA 100.00 35.00 135.00 Financing Gap 0.00 0.00 0.00 DETAILS - Additional Financing NewFinEnh1 World Bank Group Financing International Development Association (IDA) 35.00 IDA Credit 35.00 IDA Resources (in US$, Millions) Guarantee Credit Amount Grant Amount SML Amount Total Amount Amount Cambodia 35.00 0.00 0.00 0.00 35.00 National Performance-Based 35.00 0.00 0.00 0.00 35.00 Allocations (PBA) Total 35.00 0.00 0.00 0.00 35.00 COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [ ✔ ] No Does the project require any other Policy waiver(s)? [ ] Yes [ ✔ ] No Page 4 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) ESStandards Environmental and Social Standards Relevance Given its Context at the Time of Appraisal E & S Standards Relevance Assessment and Management of Environmental and Social Risks and Impacts Relevant Stakeholder Engagement and Information Disclosure Relevant Labor and Working Conditions Relevant Resource Efficiency and Pollution Prevention and Management Relevant Community Health and Safety Relevant Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources Indigenous Peoples/Sub-Saharan African Historically Underserved Traditional Relevant Local Communities Cultural Heritage Relevant Financial Intermediaries Not Currently Relevant ESStandardsNote NOTE: For further information regarding the World Bank’s due diligence assessment of the Project’s potential environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review Summary (ESRS). INSTITUTIONAL DATA Practice Area (Lead) Transport Contributing Practice Areas Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks Page 5 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) PROJECT TEAM Bank Staff Name Role Specialization Unit Team Leader (ADM Bowen Wang Transport and Climate Change IEAT1 Responsible) Sadig Aliyev Team Leader Infrastructure Program Leader IEADR Veasna Bun Team Leader Infrastructure Investment IEAT1 Procurement Specialist (ADM Latharo Lor Procurement EEAR1 Responsible) Financial Management Kyemon Soe Financial Management EEAG2 Specialist (ADM Responsible) Environmental Specialist (ADM Gulana Enar Hajiyeva Environmental Safeguard SCAE1 Responsible) Social Specialist (ADM Jun Zeng Social Safeguard SEAS1 Responsible) Alexandra Marijke Spernol Team Member Road Engineering IEAT1 Borith Long Team Member M&E IEAT1 Chanin Manopiniwes Team Member Economic Analysis IEAT1 Chenda Sem Team Member Gender SEAS1 Makathy Tep Environmental Specialist Environmental Safeguard SEAE2 Marie Aria Nezam Counsel Legal LEGAS Monica Sawyer Team Member Operations IEAT1 Owusu Mensah Agyei Team Member WFA WFACS Samnang Hir Team Member Road Engineering SEAS1 Socheat Ath Procurement Team Program Assistant EACSF Sophear Khiev Team Member Financial Management EEAG2 Thao Thi Do Team Member Finance Officer WFACS Extended Team Name Title Organization Location Page 6 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) I. BACKGROUND AND RATIONALE FOR ADDITIONAL FINANCING A. Introduction 1. The Project Paper seeks the approval of the Executive Directors for an Additional Credit from the International Development Association (IDA) in the amount of Special Drawing Rights (SDR) 26.40 million (US$35 million equivalent, Credit No. 7518-KH) for the Cambodia Road Connectivity Improvement Project (RCIP, P169930, IDA Credit No. 6767-KH). The proposed Additional Financing (AF) will cover a financing gap resulting from higher bid prices and a cost overrun. This Project Paper includes a level 2 restructuring to (a) extend the current project closing date by 22 months to May 31, 2029, to enable full achievement of Project Development Objective (PDO); (b) include the existing Contingency Emergency Response Component (CERC) to PDO; (c) update the Result Framework to better track progress and impact, and (d) change the segregated Designated Account (DA) to a pooled DA for the parent project and the AF and update the disbursement projection considering the extended project timeline. No other changes to project design, scope, and implementation are proposed. B. Background and Context 2. Cambodia’s export-driven growth relies on the continuous improvement of its transportation network and connectivity. National logistics costs in Cambodia are estimated at 26 percent of GDP (2020) which is higher than most countries under the Association of Southeast Asian Nations (ASEAN) including Thailand (14 percent) and Vietnam (20 percent). Transportation costs are particularly high, representing more than 40 percent of total logistics costs. Road transport is the dominant mode in domestic transportation, carrying more than 90 percent of domestic passenger and freight demand. Although about 85 percent of national roads are paved as of 2022, only 38 percent of provincial roads and 10 percent of rural roads are paved, indicating a major gap on climate resilient last mile domestic connectivity. With trade and exports being an important economic growth engine, resilient and efficient transport connectivity is key to ensuring Cambodia’s international competitiveness. 3. Climate change poses significant physical risk to Cambodia’s road infrastructure with riverine and flash flood as the most pressing threats. According to the Country and Climate Development Report (CCDR) for Cambodia (2023), floods cause disruptions to critical services and supply chains. In 2020, a 1- in-50-year flood was estimated to have reduced the percentage of people with road access to a referral hospital within 60 minutes of travel time by up to 47 percent and the percentage of people with road access to a high school within 30 minutes of travel time by up to 21 percent. These disruptions to education and health facilities could have cumulative and compound effects on human capital accumulation. The floodable road network in Cambodia ranges from 9,141 km to 27,952 km, representing a total asset value at-risk from US$1,727 million to US$5,280 million, depending on the flood return periods. Road infrastructure therefore needs to be designed applying climate resilience approaches and ‘road for water’ principals to maximize normal water passage underneath the roads located in floodplain and enhance surface and hydraulic designs to adapt to increasing flood risks. 4. The RCIP was approved on July 16, 2020, with a total financing of SDR 73.00 million (US$100 million equivalent at approval). RCIP was declared effective on October 26, 2020. The PDO is to improve climate resilient road access to economic and human development facilities in targeted provinces. The project was designed to benefit three targeted provinces, namely Kratie, Kampong Cham, and Tbaung Page 7 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) Khmum with over two million rural population. Using a human-centric approach, RCIP improves climate resilient road accessibility for local communities to reach crucial human development facilities, such as hospitals, emergency medical facilities, and schools. The project also helps to improve road access to economic facilities such as local markets for agriculture products; and reducing transportation costs and the risk associated with flood-induced transportation disruptions. The Ministry of Public Works and Transport (MPWT) and the Ministry of Rural Development (MRD) are the two Implementing Agencies of the project. The original project closing date is July 31, 2027. 5. RCIP consists of the following four components: a) Component 1 National and Provincial Roads Improvement (US$47.00 million) includes two subcomponents. Subcomponent 1.1 (US$44.00 million) finances the improvement and maintenance of the section of National Road (NR) 7, NR73, and Provincial Road (PR) 377 and PR377A. Subcomponent 1.2 (US$3.0 million) finances the costs of supervision and design activities. This component is managed by MPWT. b) Component 2 Rural Roads Improvement (US$47.00 million) includes two subcomponents. Subcomponent 2.1 (US$44.00 million) finances the improvement and maintenance of prioritized rural roads. Subcomponent 2.2 (US$3.00 million) finances the costs of supervision and design activities. This component is managed by MRD. c) Component 3 Institutional Development and Project Management (US$6.00 million) includes two subcomponents: Subcomponent 3.1 (US$3.00 million) supporting MPWT and Subcomponent 3.2 (US$3.00 million) supporting MRD. d) Component 4 Contingent Emergency Response is a zero-dollar component designed to provide swift response in the event of an eligible crisis or emergency, by enabling the RGC to request the World Bank to reallocate project funds to support emergency response and reconstruction. 6. RCIP is designed on a network connectivity approach to improve climate-resilient road accessibility in rural areas, between rural areas and urban centers, and the main corridor in the targeted provinces. The scope of road improvement works includes two-level interventions. The first intervention is to improve critical sections of the national and provincial roads (Component 1) along the identified road network which connect the provincial and rural population to core road networks, urban centers, and main economic centers in the country. The second intervention is to improve climate resilient rural road accessibility in the prioritized network (Component 2). The project rural roads were selected based on a robust climate vulnerability assessment of the targeted provinces. The assessment selected rural road sections for RCIP intervention based on (i) the probability for connectivity loss in the event of flooding, and (ii) the severity of negative impact from such connectivity loss for rural communes to reach hospitals and schools, and for agriculture products to reach markets. 7. RCIP is designed to build and sustain climate resilient connectivity for project roads. This is achieved by using the Output and Performance-Based Road Contracts (OPBRC). It ensures that roads are designed and constructed based on a set of pre-defined road performance indicators, of which climate resilience is an integral part. After construction completion the OPBRC requires the contractor to maintain project roads at a sustained performance level for a defined period. This approach balances risks between public and private sector and incentivizes quality construction, maintenance, and sustainability of investment. 8. The project is part of the World Bank Group Program described in the Country Partnership Framework (CPF) for Cambodia 2019–2024 (CPF Objectives 3 ‘Expand and Improve Sustainable Page 8 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) Infrastructure Services’). The project contributes to the World Bank’s mission to end extreme poverty and boost shared prosperity on a livable planet by extending the benefits of climate-resilient road accessibility and lowering transportation costs to a broader segment of the population in rural areas, where most of the poor and near-poor are concentrated. The project also contributes to RGC’s development strategy which prioritizes the enhancement of transport connectivity and efficiency to support economic diversification and competitiveness under the Pentagonal Strategy Phase 1 (2023). C. Project Implementation Status 9. Major procurement activities have been completed and the project has committed about 90 percent of the original project financing. Disbursement has reached 14 percent and is projected to increase to 25-30 percent by the end of FY24, and to 60 percent in FY25. The Progress towards Achievement of PDO and Overall Implementation Progress have been consistently rated as Satisfactory or Moderately Satisfactory, including in the latest Implementation Status and Results Report dated 15 November 2023. Progress under each project component is summarized below. 10. Component 1 National and Provincial Roads Improvement. All three OPBRC packages for improvement and maintenance of the component roads - including NR7 section (31.3km), NR73 (50.0km) and PR377-377A (35.5km and 13.6km) – have been procured by MPWT and implementation of works has commenced. Contracts for NR73 and PR377-PR377A were awarded in March 2023 and have commenced works since July and June 2023, respectively. Contract for NR7 was awarded in July 2023 with works commenced in November 2023. The contract for supervision consultancy services was awarded in May 2023 and the supervision consultants have been fully mobilized on site since June 2023. The road improvement phase is for 18-months, which will be followed by a 48-months maintenance period. 11. Component 2 Rural Roads Improvement. Two out of three OPBRC packages for rural roads improvement and maintenance have been procured by MRD, with the last package at advanced procurement stage. The contract for seven rural roads (75.0km) in Kampong Cham province was awarded in June 2023 with works commenced in the same month. Contract for six rural roads (67.0km) rural roads in Tboung Khmum province was awarded in October 2023 with works commenced in November 2023. The largest contract under Component 2 for 14 rural roads (134.0km) in Kratie is at the advanced procurement stage. The consultancy services for component roads are fully mobilized on site and supporting the implementing agency. The road improvement phase is 18-months, which will be followed by a 36-months maintenance period. 12. Component 3 Institutional Development and Project Management. Key activities related to institutional development and technical assistance (TA) are at the final procurement stage, including the upgrade of a road crash database system (MPWT), a rural road financing strategy (MRD), and a rural transport service study (MRD). These activities were designed in close consultations with key stakeholders. For example, preparation of the scope of works for the road crash data base upgrade involved consultations with National Road Safety Committee. Implementation of the rural roads financing strategy will use data and build on the existing rural road asset management system (RRAMS) supported by ADB and help MRD to further enhance functionality of the system to inform budgeting and policy decisions. This component also provides resources for project implementation. A Project Steering Committee, co-chaired by the Ministry of Economy and Finance (MEF), MRD and MPWT was established early during project implementation period. The Project Implementation Teams at two implementing agencies have established adequate capacity and resources to manage the project. Page 9 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) 13. Environment and Social Standards. Environmental and Social Standards (ESS) Performance is Satisfactory. Currently, the Project Environment and Social (E&S) staff at the MPWT and MRD are all in place. Supervision consultants for both Components 1 and 2 have been mobilized, and the respective teams include environmental, social, Occupational Health Safety (OHS) and gender specialists. The Environmental and Social Framework (ESF) documents have been developed with sufficient quality to address relevant environmental and social risks of the RCIP. Those include (i) site-specific Environmental and Social Management Plans (ESMPs) of Component 1, Environmental and Social Management Framework (ESMF) and site-specific ESMPs of Component 2, project Stakeholder Engagement Plan (SEP), Labor Management Procedures (LMP), Resettlement Policy Framework (RPF), Resettlement Plan (RP), Indigenous Peoples Planning Framework (IPPF), as well as Contractor’s ESMPs (C-ESMP). Civil works under Components 1 and 2 are underway. Contractor’s E&S and OHS staff are onboard and are implementing ESF instruments (including C-ESMP) for respective civil work packages. The project Grievance Redress Mechanism (GRM) has been developed and fully operationalized by implementing agencies. 14. Fiduciary. The financial management (FM) and procurement performance of the parent project is Satisfactory. As of February 2024, the project completed procurement of 24 contract packages with total amount of about US$87.90 million committed. Both implementing agencies maintain adequate procurement staffing and capacity. The project FM arrangements and accountability are embedded into the existing structures of MPWT and MRD. MPWT and MRD haven been maintaining adequacy of staff and accounting records, and sufficient cash inflow to pay for suppliers, contractors, and service providers. Both implementing agencies have been submitting Interim Unaudited Financial Report (IFRs), Annual Work Program and Budget (AWPB), and audit reports to the World Bank on time. Submission of withdrawal applications for disbursement of funds from the World Bank are being made regularly. The counterpart funds from the MEF have been made available for MPWT and MRD. 15. Compliance to Legal Covenants. The project is in compliance with the legal covenants. The full list of legal covenants for RCIP is presented in Annex I. D. Rationale for the Proposed Additional Financing 16. An Additional Financing is sought to fill a financing gap. High inflation and price increases of key inputs, including fuel and bitumen, over the past three years have resulted in higher bid prices for civil works than the engineering estimates conducted in 2019 before the approval of the original project. In addition, SDR/USD exchange rate fluctuation since the approval of parent project has also contributed to financing gap. Furthermore, the need for additional climate resilience interventions identified by detailed survey works and engineering designs for the project roads has further increased the financing needs. The contingency allocation is programmed for the works under the AF. Details of key factors that contributed to the financing gap are presented in Section IV-B Technical Appraisal. 17. In addition to covering the financing gap through AF, a Project Restructuring is proposed to extend the current project closing date by 22-months to enable full achievement of project objectives. The COVID-19 pandemic related restrictions affected the project’s early implementation and delayed the procurement of OPBRC packages and field investigation works. In order for RGC to realize the full value of the investment, an extension of the project closing date is necessary so that the project would benefit from sufficient post-construction maintenance period as sought in the design of the original project. This will allow the post construction maintenance period under OPBRC to last for at least four years for sections of national and provincial roads with an Asphalt Concrete (AC) pavement and three-years for rural roads Page 10 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) with Double Bituminous Surface Treatment (DBST). Shortening the maintenance phase to be less than 3- years is not advisable as newly constructed roads typically require little maintenance during the first year of post construction which also covers defect liability period. 18. The proposed restructuring will update the result framework to better monitor and measure progress and impact. RCIP’s existing result framework and result indicators remain effective and relevant. As the baseline socio-economic surveys of project areas are now completed, target values across several result indicators would be updated to better align results monitoring with project activities and targets. The implementing agencies also proposed several revisions of measurement methodologies to existing results indicators to make it more fit-for-purpose. In addition, the project’s disbursement estimates will be updated considering the extended project timeline. II. DESCRIPTION OF ADDITIONAL FINANCING 19. To ensure the achievement of the PDO, an AF in the amount of US$35 million equivalent is proposed to cover an identified financing gap. The AF will also include contingency allocation for ongoing road works as well as for potential additional technical studies and capacity building activities related to road network and asset management and maintenance by MPWT and MRD. The proposed allocation of project costs across components as compared with the original allocation is presented in Table 1 below. Table 1: Proposed Financing Allocation Across RCIP Components with the Additional Financing (in US$ million) Original Financing Gap Total Project Components Allocation /Proposed AF Component 1: National and Provincial Roads Improvement 47.00 18.75 65.75 ▪ Sub-Component 1.1: Improvement and maintenance of sections 44.00 12.40 56.40 of national and provincial roads ▪ Sub-component 1.2: Design and Supervision Services for the 3.00 0.60 3.60 National and Provincial Roads ▪ Civil Works Contingence - 5.75 5.75 Component 2: Rural Roads Improvement 47.00 15.25 62.25 ▪ Sub-component 2.1: Improvement and maintenance of targeted 44.00 9.80 53.80 rural roads ▪ Sub-component 2.2: Design and Supervision Services for Rural 3.00 0.70 3.70 Roads ▪ Civil Work Contingence - 4.75 4.75 Component 3: Institutional Development and Project Management 6.00 1.00 7.00 ▪ Sub-component 3.1 : Institutional Development and Project 3.00 0.25 3.25 Management Support to MPWT ▪ Sub-component 3.2 : Institutional Development and Project 3.00 0.75 3.75 Management Support to MRD Page 11 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) Component 4: Contingent Emergency Response 0.00 - 0.00 Total 100.00 35.00 135.00 20. The project will be restructured as follows: (a) Update the PDO to add CERC. The PDO is updated to add ‘in case of an Eligible Crisis or Emergency, respond promptly and effectively to it’ to the original PDO. CERC is already a part of the parent project under Component 4. All CERC related manuals are in place. By adding CERC to the PDO, it helps to reflect the critical emergency response function provided by the project and enable smooth implementation if CERC is triggered. (b) Extend the project closing date by twenty-two-months, from the original closing date of July 31, 2027, to May 31, 2029. The total project implementation period is thereby extended from seven- years to eight-years-and-ten-months. Such extension allows the project to cover road maintenance period under OPBRC to maximize the benefits of investment (Table 2). The length of maintenance period for different type of roads were determined based on traffic level, pavement types of project roads, and market sounding feedback received during project preparation. Table 2: Updated Road Improvement and Maintenance Period After Project Extension Work Road Maintenance Road Works Packages Commencement Improvement Period Date Completion Component 1: National and Provincial Roads Improvement 1 C1-CW1 for NR7 01 Nov 2023 30 Apr 2025 4-years 2 C1-CW2 for NR73 01 Jul 2023 31 Dec 2024 4-years 3 C1-CW3 for PR377 and PR377A 15 Jun 2023 14 Dec 2024 4-years Component 2: Rural Roads Improvement 1 C2-CW1 for 134km Rural Roads in Kratie 20 Mar 2024 (Exp.) 20 Sept 2025 3-years 2 C2-CW2 for 75km Rural Roads in Kampong Cham 13 Jun 2023 12 Dec 2024 3-years 3 C2-CW3 for 67km Rural Roads in Tboung Khmum 23 Nov 2023 23 May 2025 3-years (c) Update the result framework to better monitor and measure progress and impact. Table 3 summarizes the revisions to results indicators. Detailed appraisal of the proposed revisions of listed result indicators are included in Section IV-B Technical Appraisal. Table 3: Project Result Indicators with Proposed Changes Result Indicators with Updated End-Targets Original Revised Result Indicator Rationale Target Target PDO Result Indicators Page 12 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) 1 Facilities with improved climate 75 82 End targets are updated to be aligned with a resilient road access (Number) new facility inventory recorded by the - Market 15 29 recently completed detailed socio-economic survey of the project area. Rationale is - Hospitals 10 8 elaborated in Section IV-B Technical - Schools 50 45 Appraisal. 2 Travel time reduction along 20 10 for NRs Based on baseline road condition survey, 10 project-financed national and 20 for PRs percent travel time reduction is targeted on provincial roads (percentage) NRs and 20 percent on PRs (within speed limits by law). Intermediate Result Indicators 3 Bridges repaired/upgraded with 13 9 To align with actual number of bridges climate resilient measures included in the civil work packages for (Number) upgrading following completion of assessment of condition of bridges along project roads. 4 Rural roads upgraded with climate 250 276 To align with actual kilometers of rural roads resilience measures (Kilometers) included in the civil work packages for upgrading. Result Indicators with Updated Indicator Name: Original Indicator Updated Indicator Rationale PDO Result Indicators 1 Direct beneficiaries with reduced Number of people that benefit The PDO result indicator on direct travel time to reach the closest from improved access to beneficiaries is revised to align with facilities (Number) sustainable transport the New WBG Corporate Scorecard infrastructure and services Result Indicator that measures (Number, thousands). WBG projects' contribution to SDG 11.2 'access to safe, affordable, accessible and sustainable transport systems for all'. Result Indicator with Updated Measurement Method: Result Indicator Original Measurement Revised Measurement and Rationale Intermediate Result Indicators 1 Road safety assessment of the Measured by number of times Measured by kilometers of project national and provincial roads that project roads are audited roads audited for road safety (Number) for road safety measures, with measures respectively at detailed 2 Road safety assessment of the a target of ‘two times’ - one at design stage and upon construction rural roads (Number) the detailed design stage and completion. This revision is more another upon construction effective for monitoring because completion. roads are audited progressively by Page 13 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) sections in km. 21. The proposed AF will require a revision to the Disbursement and Financial Information Letter (DFIL), including changing the segregated Designated Account (DA) to a pooled DA for the parent project and the AF. The Pooled Fund arrangements will be (i) the Pooled DA1 for MPWT for Category 1 will be US$2.00 million (comprised of DA 1 with US$1.50 million, and AF with US$0.50 million); (ii) The pooled DA2 for MRD for Category 2 will be US$2.00 million (comprised of DA 1 with US$1.50 million, and AF with US$0.50 million). The pooled fund arrangements will help accelerate disbursement and Interim Payment Certificates claims for payments, and to ensure the project has adequate cash inflow avoiding delay in payment to the contactors, suppliers, and service providers. The disbursement deadline date will be four- months after the project closing date, specified in the Financing Agreement for AF. Table 4: Disbursement Categories (Allocation of IDA Credit Proceeds, US$ equivalent) Percentage of Additional Parent Expenditures to be Responsible Category Financing Project Financed Agencies (inclusive of taxes) (1) Goods, works, non-consulting services, consulting services, Training and Workshops, and Incremental Operating 19,000,000 50,000,000 100% MPWT Costs under MPWT with respect to parts 1.1, 1.2, and 3.1 of the Project (2) Goods, works, non-consulting services, consulting services, Training and Workshops, and Incremental Operating 16,000,000 50,000,000 100% MRD Costs under MRD with respect to parts 2.1, 2.2 and 3.2 of the Project (3) Emergency Expenditures under Part 4 of the 0 0 100% Project TOTAL 35,000,000 100,000,000 22. Other FM arrangements for the proposed AF will remain unchanged from the parent project, including (i) the disbursement category (MPWT manages Category 1, and MRD manages Category 2 respectively), (ii) the minimum value of applications (US$200,000) for direct payment, reimbursement, and special commitment, (iii) fund flow arrangements of the project and reporting requirements. III. KEY RISKS 23. The overall risk rating for the project continues to be assessed as Moderate. The fiduciary and environmental and social risks are rated Substantial as described below. 24. Integrated residual fiduciary risk remains Substantial. The capacity of procurement and financial management staff at two implementing agencies has improved but requires continuous strengthening due to staff turnover. Delays in procurement, payments to contractors, and disbursements were observed Page 14 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) under the parent project. Key risks include (i) noncompliance with the World Bank’s FM and procurement requirements, (ii) risks related to contract management, fraud and corruption, and (ii) delay in submitting the Interim Payment Certificates for claims and subsequent delays in disbursement due to the contractors’ unfamiliarity with the OPBRC applications. The mitigating measures include (i) continuing to provide capacity building on FM, procurement and contract management by the World Bank team to MPWT and MRD, (ii) providing detailed guidance on procurement and FM in the Project Operations Manual; and (iii) engaging an external auditor recruited by MEF to provide assurance on the project financial statements, compliance, and performance. 25. The overall environmental risk remains Substantial. Adverse environmental impacts from roadworks might include (i) possible erosion and run off to water bodies during earthworks; (ii) occupational and community health and safety including temporary traffic blockages and traffic safety; (iii) vegetation clearance; (iv) pollution from construction (dust, noise and vibration, wastewater, solid wastes, and used oil); (v) impacts to soil, water and air due to the extraction and production of construction materials such as soil and gravel and impacts related to use of water for construction; and (vi) the possibility of irrigation or drainage channel blockages. These impacts are assessed as temporary and reversible and are managed by applying good construction practices and respective mitigation measures specified in the ESMF, site-specific ESMPs and C-ESMPs. These ESF instruments have been prepared to meet the requirements of Environmental and Social Standards (ESSs) 1, 3, 4, 6 and 8, and also address measures to mitigate potential impacts on the Mekong dolphins in one section close to the project roads (PR377/PR377A). MPWT has established collaboration with the World Wildlife Fund (WWF) to improve the quality of monitoring and supervision and introduce any additional mitigation as might become necessary in the course of research and observations of dolphin population. 26. The overall social risk remains Substantial. Direct and indirect social risks associated with improvement of the project roads are expected to be mostly temporary, predictable, and avoidable. While no physical displacement is expected, the potential social risks and impacts are likely to result in a small number of roadside vendors and fences of houses/farms encroaching the right of way, which will have to be partially economically displaced; temporary labor influx of workers in low-density areas; and risk of Gender-Based Violence (GBV), Violence Against Children (VAC), and child labor. Special attention will be paid to monitor and enforce compliance in the application of ESS2 (Labor and Working Conditions), particularly to child labor; ESS4 (Community Health and Safety), because temporary labor influx of workers is expected; and ESS5 (Land Acquisition, Restrictions on Land Use, and Involuntary Resettlement) because of the potential negative impacts on vendors operating close to the roads. Other potential risks relate to insufficient attention to health and safety measures, including those related to traffic and dust control during construction. The social risks will be managed by applying respective mitigation measures specified in the project ESF instruments including ESMF, RPF, site-specific ESMPs and C-ESMPs and LMPs. IV. APPRAISAL SUMMARY A. Economic Analysis 27. The updated economic analysis for AF demonstrates high economic benefits of the investment, including an estimated Economic Internal Rate of Return (EIRR) at 24.7 percent, and the Net Present Value (NPV) of US$95.54 million. The economic evaluation focuses on the two major components: (a) national Page 15 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) and provincial roads improvement and (b) rural roads improvement. A cost-benefit analysis (CBA) was conducted at appraisal to calculate EIRR and NPV of the project covering a period of 20 years (2020–2040). The EIRR at appraisal of the parent project in 2020 was 34.8 percent with the NPV of US$130.8 million. The discount rate is assumed at 10 percent. The major economic benefits of the project arise from (a) reduced vehicle operating costs (VOCs), (b) travel time savings, (c) avoided emergency maintenance costs in the without-project scenario, and (d) road safety improvement1. The project cost which would occur under OPBRC without additional concessional financing is assumed with the standard conversion factor of 0.90. The CBA has been updated to reflect the increase costs for all road sections as the time of the proposed AF. The updated actual costs are shown in Table 5. The traffic projections were also updated, as shown in Table 6. Table 5: Actual Costs of NR, PR, and RR Contracts Road Sections Commencement Date Road length (km) Cost ($US) NR7 01 Nov 2023 31.25 12,360,716 NR73 01 Jul 2023 49.81 14,528,769 PR377/PR377A 15 Jun 2023 48.59 28,612,823 RR: Kratie 20 Feb 2024 (Expected) 14 rural roads totaling 134km 28,097,316 RR: Kampong Cham 13 Jun 2023 7 rural roads totaling 75km 14,076,096.06 RR: Tboung Khmum 23 Nov 2023 6 rural roads totaling 67km 11,633,888.68 Table 6: Traffic on C1-CW3 Roads: AADT of Base Year 2023 (unit: vehicle per day) Date and Light Heavy Road No. Motorcycle Total Remarks Total ESAL Vehicle Vehicle 2020 August 10-21 PR377A 2,573 474 41 3,088 AADT ESAL: 0.62 million 2023 July 20 PR377A 3,696 638 227 4,560 AADT ESAL: 4.0 million 2020 August 10-21 PR377 3,778 682 51 4,511 AADT ESAL: 0.79 million 2023 July 20 PR377 9,241 2,608 649 12,499 AADT ESAL: 12.5 million 2020 August 10-21 NR73 2,050 2,214 167 4,431 AADT ESAL: 6.38 million 2023 July 20 NR73 3,694 2,297 465 6,456 AADT ESAL: 8.89 million 2020 August 10-21 NR7 5,045 2,600 419 8,064 AADT ESAL: 9.31 million 2023 July 20 NR7 5,786 1,586 1,177 8,450 AADT ESAL: 9.77 million 28. The same CBA model has been utilized for the AF to calculate EIRR and NPV of the project covering a period of 20 years (2020–2040). The discount rate is assumed at 10 percent. The major economic 1 Road safety benefits are estimated using the World Bank’s Road Safety Screening and Appraisal Tool (RSSAT). Page 16 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) benefits of the project arise from (a) reduced VOCs, (b) travel time savings, (c) avoided emergency maintenance costs in the without-project scenario, and (d) improved road safety. The project cost which would occur under OPBRC without additional concessional financing is assumed with the standard conversion factor of 0.90. The EIRR for the AF is estimated to be 24.7 percent and the NPV, US$95.54 million. Table 7 summarizes the results of the economic analysis, with details by road types. Additional sensitivity analysis was conducted to factor risks related cost increase or traffic reduction which still demonstrate strong economic viability of the project (Table 8). Table 7: Summary of the CBA Results for AF Compared to the Results at Appraisal of Original Project EIRR NPV Est. at Appraisal At AF Est. at Appraisal At AF NR7 43.8% 14.0% 20.68 3.57 NR73 38.8% 15.9% 26.71 6.58 PR377/PR377A 48.5% 36.9% 60.61 68.26 Rural Roads 24.1% 20.6% 22.80 18.65 Total 34.8% 24.7% 130.80 95.54 Table 8: Sensitivity Analysis Component 1 Component 2 TOTAL Scenarios EIRR NPV EIRR NPV EIRR NPV Base case 27.0% 76.89 20.6% 18.65 24.7% 95.54 Maintenance cost increases by 20% 26.4% 73.49 20.4% 18.15 24.3% 91.64 Construction cost increases by 20% 23.2% 68.57 15.6% 11.18 20.6% 79.75 Both construction and maintenance 22.7% 65.18 15.4% 10.67 20.2% 75.85 costs increase by 20% Traffic is 20% lower than expected 25.9% 69.84 20.0% 17.55 23.7% 87.39 Both construction and maintenance costs increase by 20% and Traffic is 22.7% 65.18 15.1% 10.06 20.1% 75.23 20% lower than expected Discount Rate at 12% 27.0% 57.88 20.6% 13.86 24.7% 71.74 29. Greenhouse Gas (GHG) Emissions. An analysis of GHG emissions was undertaken based on fuel consumption rates at different speeds under with-project and without-project scenarios. Without the project, the deteriorated condition of the roads limits vehicle speed and leads to higher fuel consumption per vehicle-km compared with the with-project scenario. With the project, improved road condition leads to improved speed and hence lower fuel consumption. But the estimate at the AF is lower than the original estimate due to lower traffic volume than originally anticipated. Gross GHG emission in the with-project scenario is 1,915,926 tCO2e. Total net GHG emission is estimated to be -34,120 tCO2e, a net reduction over the evaluation period (20 years). The annual average net GHG emission is -1,714 tCO2e per year. The social benefit from GHG reduction is estimated to be US$2.58 million, based on social cost of emission reduction from the World Bank’s Guidance Note on Shadow Price of Carbon in Economic Analysis (2017) Page 17 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) adjusted to 2023 prices. B. Technical 30. There is no change to the original project scope. The project finances the rehabilitation of existing roads to improve the road conditions, climate resilience, and safety. Project NRs and PRs are being paved with Asphalt Concrete (AC) and project rural roads are being paved with Double Bituminous Surface Treatment (DBST) or concrete in the flood-prone areas. Nine bridges along the project NRs and PRs are being replaced with more climate resilient structure and designs. The technical appraisal summary of the parent project remains applicable. 31. Road works are implemented using OPBRC as the contracting modality, which includes a construction phase and one cycle of maintenance phase thereby lowering life cycle asset cost, with increased service quality and sustainability. Linking payments to completed outputs during construction and performance indicators during maintenance provide incentives for the contractors to better manage the transferred risks and maintain service levels for the whole length of the contract. Experience from other countries suggests that OPBRCs can be more successful when applied with a longer time frame. The project conducted a market outreach and sounding before the OPBRC procurement which informed the OPBRC approach and enabled interest of local construction industry in participation in tendering process. Experience under the project also indicates the importance of having robust baseline data for cost estimates and inclusion of adequate contingency budget to project cost if detailed designs are not available at project preparation. 32. Duration of maintenance for different type of roads under the project were determined based on traffic level, pavement types of project roads, and market sounding feedback received during project preparation. The project OPBRC requires at least four-years maintenance period for NRs/PRs and three- years maintenance period for rural roads. MPWT has experience managing hybrid OPBRC under another ongoing World Bank-financed project. With continuous technical supports and trainings on OPBRC provided by the World Bank, both MPWT and MRD have demonstrated a sound understanding and institutional capacity in managing this new contracting modality. Further support will continue throughout the project lifetime to ensure effective contract management for OPBRC. After the project closing, all project roads will be covered under the RGC’s three-year rolling maintenance plan. The World Bank is also supporting both MPWT and MRD to strengthen their road asset management systems for effective maintenance planning and implementation. 33. The proposed AF would cover financing shortfalls identified in the bidding process and the detailed design process. Key factors that have contributed to the financing gap include: (i) higher bid prices for civil work packages than preliminary engineering estimates prepared under the original project in 2019, driven by high inflation and price increase of key input such as fuel and bitumen; (ii) additional time-based costs related to project implementation and supervision from extending the project closing date by 22-months; (iii) additional climate resilience measures identified from detailed design process of project roads; (iv) SDR/USD exchange rate fluctuation compared with the time at original project approval in 2020. The AF will also include contingency allocation for ongoing road works as well as for potential additional technical studies and capacity building activities related to road network and asset management and maintenance practices by MPWT and MRD. Table 9 provides detailed breakdown of causes to the financing gap. Page 18 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) Table 9: Detailed Breakdown of Causes to the Financing Gap Original Financing Gap Factors Project Components Allocation Gap Component 1: National and Provincial Roads Improvement a) Sub-Component 1.1: • US$8.40 million from higher-than-expected Improvement and Maintenance actual contract prices for civil works. of Sections of National and 44.00 12.40 • US$4.00 million from additional climate Provincial Roads resilience measures identified from detailed designs for NR73 and PR377/PR377A. b) Sub-component 1.2: Design and • Higher-than-expected actual contract prices Supervision Services for the 3.00 0.60 for the Design and Supervision Consultant National and Provincial Roads (DSC). c) Civil Works Contingence Contingency programmed to cover: • work variations for NR7 currently under detailed design and during implementation. - 5.75 • additional DSC and operational costs due to project extension by 22-months. • SDR/USD exchange rate fluctuation. Component 2: Rural Roads Improvement d) Sub-component 2.1: • Higher-than-expected actual contract prices Improvement and Maintenance for civil works. of Targeted Rural Roads 44.00 9.80 e) Sub-component 2.2: Design and • Higher-than-expected actual contract prices Supervision Services for Rural 3.00 0.70 for DSC. Roads f) Civil Work Contingence Contingency programmed to cover: • work variations all rural roads (currently under detailed design). - 4.75 • additional DSC and operational costs due to project extension by 22-months. • SDR/USD exchange rate fluctuation. Component 3: Institutional Development and Project Management g) Sub-component 3.1 : • Higher-than-expected contract prices for TA Institutional Development and activities and additional budget for TA 3.00 0.25 Project Management Support to activities on asset management and extended MPWT project implementation period. h) Sub-component 3.2 : • Higher-than-expected contract prices for TA Institutional Development and activities and additional budget for TA 3.00 0.75 Project Management Support to activities on asset management and extended MRD project implementation period. Component 4: Contingent Emergency Response Grand-Total 100.00 35.00 135.00 Page 19 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) 34. Climate change impact and the surge of truck traffic after COVID-19 have also contributed to cost variations to project roads by requiring adjustments to engineering designs. Since appraisal of the parent project in 2020, project roads have endured three-years of rainy seasons and the overall conditions have deteriorated. For instance, the condition survey for culverts along NR73 indicated the need for additional side drainage, as many culverts have had to be reconstructed due to structural damages. The majority of PR377/PR377A are situated at water-logged areas and low-lying areas. During the most recent rainy season over July-October 2023, it was observed that PR377/PR377A were soaked for months, indicating weakened road sub-base and base course layers. Nevertheless, traffic surveys conducted between May-June 2023 for detailed road pavement designs indicated a significant increase in traffic volumes compared to survey results in August 2020 for conceptual design during COVID-19. In particular, traffic volume of heavy trucks has increased by 6-times and 13-times respectively on PR377A and PR377. The sharp increase of heavy truck traffic is driven by the re-opening of the country after the pandemic and the increase outputs of many sand pits, brick factories, and borrow pits along the Mekong River banks and the project road. The traffic volume of trucks is expected to further increase after project road and bridges are upgraded. To ensure the climate resilience of PR377/PR377A in anticipation of increasing heavy truck traffic, the detailed road pavement design proposes to apply cement stabilized road base for all road sections along PR377/PR377A and apply additional drainage and slope stabilization measures. The AF includes contingency allocations in anticipation of further work variations being identified as the detailed design being completed for all project roads. 35. The proposed updates to the original Result Framework aim to better monitor and measure progress and impact. Details of the proposed changes are included in Table 3, which include revisions to three PDO result indicators and four intermediate results indicators (details below). The revised Result Framework also extends the monitoring timeline of all indicators by 22-months based on the proposed new project closing date of May 31, 2029. (a) The end targets for two PDO indicators and two intermediate indicators are revised. The revisions proposed to two PDO result indicators are driven by findings from recently completed survey works for project roads. Based on survey results, PDO result indicator 1 increases the end target for number of markets with increased accessibility to include several markets that were missed previously. Targets are slightly reduced for schools and hospitals to exclude several schools and hospitals that are located within communes and therefore not subject to accessibility loss as a result of flooding. Revisions proposed for two intermediate results indicators are to align these civil work-related indicators with actual work scope included in the civil work contracts. (b) The name and measurement of the PDO result indicator related to the direct beneficiary is revised. The revised indicator measures the number of people that benefit from improved access to sustainable transport infrastructure and services. This revision is proposed to align with the core transport result indicator in the new WBG Corporate Scorecard, which measures WBG projects’ contribution to SDG 11.2 'access to safe, affordable, accessible and sustainable transport systems for all'. (c) Lastly, a revision is proposed to the measurement method for the intermediate result indicator related to road safety audit. The revised approach that focuses on monitoring the kilometers of road sections audited for road safety is more effective than measuring the number of safety audit conducted overall. Page 20 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) 36. Corporate Commitments: The proposed AF will cover the financing shortfall for the parent project without change to the original project scope and activities. The appraisal of the AF against WBG corporate commitments is retained as the parent project and summarized below: (a) Paris Alignment: The proposed AF does not introduce any new activities compared to the parent project, which was approved prior to Paris Agreement Alignment and is not inconsistent with Paris Alignment principles. Considering that the project finances rehabilitation of existing roads with limited capacity expansion in Cambodia where the overall motorization level is low, the proposed AF will have a negligible impact on Cambodia’s low-GHG-emissions development pathways. Risks from climate hazards are also low and considered acceptable, given there are no changes to the climate change and disaster risk screening conducted for the parent project (see paragraph below). The proposed AF further identified additional resilience engineering designs for the purpose of resilience and safety, which will be applied as part of this AF. (b) Climate Change: The climate change and disaster risk screening applied to the parent project remains applicable considering no change is involved as a result of the AF in terms of the project location, risk exposure, and vulnerability to flooding. All climate adaptation measures identified at the appraisal of the parent project remain applicable. With the detailed engineering designs being completed for project roads, more site-specific resilient engineering solutions are introduced such as additional drainages, slope stabilization measures, and concrete reinforced road base. The proposed AF will cover the additional costs for those climate resilient measures, in addition to financing gap from the bidding process. The proposed AF therefore retains the same level of climate co-benefits as the parent project. The results framework remains unchanged from the parent project, with climate change indicators at both PDO and intermediate level. GHG accounting and shadow price of carbon analysis are included in the economic appraisal. (c) Gender: The design of the parent project was informed by a gender analysis based on field data collection and community consultations. The analysis benefited from a set of guiding principles, in alignment to the government priorities and the World Bank Guidance Note on Mainstreaming Gender in Road Transport and building on experience of ongoing projects financed by the World Bank and other development partners in the transport sector. The parent project was gender tagged. Given that the AF does not involve any changes to the project scope and activities, the proposed AF remains qualified for gender tag. The proposed AF will continue to support the implementation of the Gender Mainstream Action Plans at MPWT and MRD, promoting employment opportunities for women under project OPBRCs, carrying out road safety awareness campaigns with a specific target to males, and actively identifying and minimizing project-induced risks of GBV/VAC. (d) Citizen Engagement: The Citizen Engagement mechanism embedded in the parent project will continue to be implemented under the proposed AF. Through the implementation of the SEP, the proposed AF will continue to ensure that project communities and stakeholders are informed and involved in all stages of project implementation. Community outreach and training is being carried out on GBV/VAC and road safety, grievances are regularly monitored and addressed, the Road Care mobile application will be used once road construction is completed to seek feedback from the direct beneficiaries on the improved road conditions and monitoring the maintenance level of project roads. Two result indicators related to citizen engagement (GRM indicator, and Beneficiary feedback indicator) remain applicable. Page 21 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) C. Financial Management 37. The FM appraisal for the proposed AF was carried out according to the World Bank Policy and World Bank Directive: Investment Project Financing updated March 13, 2023. The project FM arrangements for AF follows the Guidance Note of the Bank’s Investment Project Financing for Additional Financing. Given the satisfactory FM performance under the parent project, the existing FM arrangements and accountability will continue serving the proposed AF. The Department of Finance in MPWT and Department of Finance and Supply in MRD continue to have overall responsibility for the project FM and disbursements for their respective project components. D. Procurement 38. Procurement under the project with AF will be carried out in accordance with World Bank Procurement Regulations for IPF Borrowers dated September 2023, and provisions stipulated in the Financing Agreement. The approaches to national markets (National Procurement and Request for Quotations) will be carried out in accordance with the RGC’s Updated Standard Operating Procedures and Procurement Manual for All Externally Financed Projects/Programs (‘Procurement Manual’), promulgated through the Sub-Decree No. 181 ANK/BK, dated December 2, 2019, subject to the additional provisions included in the Procurement Plan. The World Bank planning and tracking system, Systematic Tracking of Exchanges in Procurement (STEP), will be used to prepare, clear, and update Procurement Plans and conduct all procurement transactions for the project. Given the satisfactory procurement performance under the parent project, the existing procurement arrangements under MPWT and MRD and accountability will continue serving the proposed AF. E. Legal Operational Policies 39. Loan covenants of the parent project will remain applicable for the AF, including: (a) maintaining a satisfactory FM system throughout the life of the project, (b) submitting consolidated IFRs within 45 days after the end of each semester, (c) submitting consolidated AWPB to the World Bank for no objection by end of November, and (d) submitting annual (consolidated) audited project financial statements and management letters within six months of the year-end. . Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No . F. Environmental and Social 40. The purpose of the proposed AF is to cover a financial gap. The relevant ESSs remain the same and the rating of the environmental and social risks remains Substantial. The ESF documents developed under the parent project to address the environmental and social risks, namely, site-specific ESMPs of Component 1, ESMF and site-specific ESMPs of Component 2, project SEP, LMP, RF, RP, and IPPF and C- ESMPs, will continue to be applicable, governing the environmental and social management of the project Page 22 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) activities under AF. The implementing agencies have updated the project ESCP and SEP in accordance with the current project status, capacity building needs and the context of the proposed AF. The updated ESCP and SEP were disclosed by the implementing agencies on November 30, 2023, and by the World Bank on February 15, 2024. V. WORLD BANK GRIEVANCE REDRESS 41. Grievance Redress. Communities and individuals who believe that they are adversely affected by a project supported by the World Bank may submit complaints to existing project-level grievance mechanisms or the Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may submit their complaint to the Bank’s independent Accountability Mechanism (AM). The AM houses the Inspection Panel, which determines whether harm occurred, or could occur, as a result of Bank non-compliance with its policies and procedures, and the Dispute Resolution Service, which provides communities and borrowers with the opportunity to address complaints through dispute resolution. Complaints may be submitted to the AM at any time after concerns have been brought directly to the attention of Bank Management and after Management has been given an opportunity to respond. For information on how to submit complaints to the Bank’s Grievance Redress Service (GRS), please visit http://www.worldbank.org/GRS. For information on how to submit complaints to the Bank’s Accountability Mechanism, please visit https://accountability.worldbank.org. Page 23 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) VI SUMMARY TABLE OF CHANGES Changed Not Changed Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Implementing Agency ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ VII DETAILED CHANGE(S) PROJECT DEVELOPMENT OBJECTIVE Current PDO The project development objective is to improve climate resilient road access to economic and human development facilities in targeted provinces. Proposed New PDO The project development objective is to improve climate resilient road access to economic and human development facilities in targeted provinces and, in case of an Eligible Crisis or Emergency, respond promptly and effectively to it. Page 24 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) COMPONENTS Current Component Name Current Cost Action Proposed Component Proposed Cost (US$, (US$, millions) Name millions) Component 1: National and 47.00 Revised Component 1: National 65.75 Provincial Roads and Provincial Roads Improvement Improvement Component 2: Rural Roads 47.00 Revised Component 2: Rural 62.25 Improvement Roads Improvement Component 3: Institutional 6.00 Revised Component 3: 7.00 Development and Project Institutional Management Development and Project Management Component 4: Contingent 0.00 No Change Component 4: 0.00 Emergency Response Contingent Emergency Response TOTAL 100.00 135.00 LOAN CLOSING DATE(S) Ln/Cr/Tf Status Original Closing Current Proposed Proposed Deadline Closing(s) Closing for Withdrawal Applications IDA-67670 Effective 31-Jul-2027 31-Jul-2027 31-May-2029 30-Sep-2029 DISBURSEMENT ARRANGEMENTS Change in Disbursement Arrangements Yes Expected Disbursements (in US$) DISBURSTBL Fiscal Year Annual Cumulative 2021 3,000,000.00 3,000,000.00 2022 500,000.00 3,500,000.00 2023 6,000,000.00 9,500,000.00 2024 20,000,000.00 29,500,000.00 2025 30,000,000.00 59,500,000.00 2026 40,000,000.00 99,500,000.00 Page 25 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) 2027 15,000,000.00 114,500,000.00 2028 8,000,000.00 122,500,000.00 2029 7,000,000.00 129,500,000.00 2030 5,500,000.00 135,000,000.00 SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Latest ISR Rating Current Rating Political and Governance ⚫ Moderate ⚫ Moderate Macroeconomic ⚫ Moderate ⚫ Moderate Sector Strategies and Policies ⚫ Moderate ⚫ Moderate Technical Design of Project or Program ⚫ Moderate ⚫ Moderate Institutional Capacity for Implementation and ⚫ Moderate ⚫ Moderate Sustainability Fiduciary ⚫ Substantial ⚫ Substantial Environment and Social ⚫ Substantial ⚫ Substantial Stakeholders ⚫ Moderate ⚫ Moderate Other ⚫ Moderate Overall ⚫ Moderate ⚫ Moderate LEGAL COVENANTS2 LEGAL COVENANTS – Additional Financing to Road Connectivity Improvement Project (P181396) Sections and Description OPS_LEGAL_CONVENANT_CHILD_NODATA No information available Conditions Page 26 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) VIII. RESULTS FRAMEWORK AND MONITORING Results Framework COUNTRY: Cambodia RESULT_NO_PDO Additional Financing to Road Connectivity Improvement Project Project Development Objective(s) The project development objective is to improve climate resilient road access to economic and human development facilities in targeted provinces and, in case of an Eligible Crisis or Emergency, respond promptly and effectively to it. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Economic and human development facilities in the project area are made accessible for all seasons Facilities with improved climate resilient road access 0.00 0.00 12.00 51.00 82.00 82.00 (Number) Rationale: Action: This indicator has been Revised Revise the end target value to be aligned with the baseline survey findings and to cover the extended project implementation period. Market (Number) 0.00 0.00 5.00 15.00 29.00 29.00 Page 27 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Rationale: Action: This indicator has Revise the end target value to be aligned with the baseline survey findings and to cover the extended project implementation period. been Revised Hospitals (Number) 0.00 0.00 2.00 6.00 8.00 8.00 Rationale: Action: This indicator has Revise the end target value to be aligned with the baseline survey findings and to cover the extended project implementation period. been Revised Schools (Number) 0.00 0.00 5.00 30.00 45.00 45.00 Rationale: Action: This indicator has Revise the end target value to be aligned with the baseline survey findings and to cover the extended project implementation period. been Revised Travel time reduction along project-financed national and provincial roads Travel time reduction along project-financed national roads 0.00 0.00 2.00 6.00 10.00 10.00 (Percentage) Rationale: Action: This indicator has been To differentiate travel time reduction potential between NRs and PRs within respective speed limits. To cover extended project implementation period. Revised Travel time reduction along the project-financed provincial 0.00 0.00 5.00 10.00 20.00 20.00 roads (Percentage) Rationale: Action: This indicator is New To differentiate travel time reduction potential between NRs and PRs within respective speed limits. To cover extended project implementation period. People from the project area with improved access to sustainable transport infrastructure/services (Action: This Objective has been Revised) Page 28 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) RESULT_FRAME_TBL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Number of people that benefit from improved access to sustainable transport 0.00 0.00 0.00 450.00 600.00 600.00 infrastructure and services (Number (Thousand)) Project-financed assets have a sustained resilience with service levels maintained under OPBRC Project-financed assets (road and bridges) have a sustained resilience with service level 0.00 0.00 0.00 40.00 100.00 100.00 maintained under the OPBRC (Percentage) Rationale: Action: This indicator has been Revised To cover the extended project implementation period. PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Component 1: National and Provincial Roads Improvement National and provincial roads improved with climate 0.00 0.00 10.00 80.00 130.00 130.00 resilience measures (Kilometers) Rationale: Action: This indicator has been To cover the extended project implementation period. Revised Page 29 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Bridges repaired/upgraded with climate resilient measures 0.00 0.00 0.00 7.00 9.00 9.00 (Number) Rationale: Action: This indicator has been To align with the actual civil work scope and to cover the extended project implementation period. Revised Female employees with paid jobs under OPBRC for national 0.00 0.00 5.00 10.00 15.00 15.00 and provincial roads (Percentage) Rationale: Action: This indicator has been Revised To cover the extended project implementation period. Number of people with enhanced access to transportation services - IDA 0.00 0.00 10.00 100.00 190.00 190.00 Core Sectoral Indicator (Number (Thousand)) Rationale: Action: This indicator has been To cover the extended project implementation period. Revised Targeted national and provincial roads built with road 0.00 0.00 0.00 80.00 130.00 130.00 safety measures (Kilometers) Rationale: Action: This indicator has been To adjust the unit of measurement and methodology to better track progress and to cover the extended project implementation period. Revised Road design audited for safety measures 0.00 0.00 10.00 80.00 130.00 130.00 (Kilometers) Page 30 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Rationale: Action: This indicator is To adjust the unit of measurement and methodology to better track progress. New Component 2: Rural Roads Improvement Rural roads upgraded with climate resilience measures 0.00 0.00 10.00 200.00 276.00 276.00 (Kilometers) Rationale: Action: This indicator has been Revise the end target value to be aligned with the civil work scope and to cover the extended project implementation period. Revised Targeted rural roads built with road safety measures 0.00 0.00 10.00 200.00 276.00 276.00 (Kilometers) Rationale: Action: This indicator has been To adjust the unit of measurement and methodology to better track progress and to cover the extended project implementation period. Revised Road design audited for road safety measures 0.00 0.00 10.00 200.00 276.00 276.00 (Kilometers) Rationale: Action: This indicator is To adjust the unit of measurement and methodology to better track progress. New Female employees with paid jobs under OPBRC for rural 0.00 0.00 5.00 10.00 15.00 15.00 roads (Percentage) Rationale: Action: This indicator has been To cover the extended project implementation period. Revised Page 31 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 Component 3: Institutional Development and Project Management Rural Roads Accessibility and Financing Strategy developed No No No Yes Yes Yes (Yes/No) Rationale: Action: This indicator has been To cover the extended project implementation period. Revised Georeferenced data registered in the upgraded road crash No No No No Yes Yes database (Yes/No) Rationale: Action: This indicator has been To cover the extended project implementation period. Revised Community members trained through road safety awareness 0.00 0.00 0.00 250.00 500.00 500.00 campaigns (Number) Rationale: Action: This indicator has been Revised To cover the extended project implementation period. Share of men out of total community members 0.00 0.00 20.00 50.00 70.00 70.00 trained (Percentage) Action: This indicator has been Revised MRD and MPWT staff trained on OPBRC, disagrgregated by 0.00 0.00 10.00 20.00 30.00 30.00 gender (Number) Action: This indicator has been Revised Rationale: Page 32 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) RESULT_FRAME_TBL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 To cover the extended project implementation period. Disaggregated by gender (number of female staff 0.00 0.00 5.00 10.00 20.00 20.00 trained) (Number) Rationale: Action: This indicator has To cover the extended project implementation period. been Revised Contractors' work force trained on ESHS, OHS and GBV/VAC 0.00 0.00 100.00 100.00 100.00 100.00 Code of Conduct (Percentage) Rationale: Action: This indicator has been Revised To cover the extended project implementation period. Citizen engagement Grievances registered and addressed in a timely manner 0.00 0.00 80.00 80.00 80.00 80.00 (Percentage) Rationale: Action: This indicator has been To cover the extended project implementation period. Revised Beneficiaries expressing satisfaction with improved 0.00 0.00 0.00 50.00 70.00 70.00 road condition and accessibility to facilities (Percentage) Rationale: Action: This indicator has been Revised To cover the extended project implementation period. Page 33 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) IO Table SPACE Monitoring & Evaluation Plan: PDO Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection Measures cumulative number of critical economic and human development facilities that have become accessible all year round as a result of the project. Economic facilities include local markets; human development facilities include schools and health Aggregated from sub- MRD and MPWT Project facilities. These facilities indicators (i) markets, (ii) project team and GIS Facilities with improved climate resilient Annual progress existed before the project hospitals, and (iii) specialists, supervision road access reports. and are located along the schools. consultants. project roads but were not accessible all year round due to poor condition of the roads during heavy rains and floods, hence the baseline’s value of zero. Any new facilities built after the project appraisal will not be counted for accessibility gains under this indicator. Page 34 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) Measures cumulative number of local markets At completion of each that are made accessible all section of road works, year round for nearby the supervision villages connected by Project consultant counts all MPWT and MRD, project roads as a result of Annual progress eligible local markets Supervision Market the project. All year around reports. along project roads that Consultant. accessibility is defined as are made 'all-year accessible by trucks accessible' based on the carrying agri-products definition. using flood-free roads with good conditions. Measures cumulative number of hospitals/health facilities that are made accessible all year round as At completion of each a result of the project. 'All- section of road works, year round accessibility' is the supervision defined as accessible using Project consultant counts all the project roads by MPWT and MRD Annual progress eligible hospitals along Hospitals bicycles under any weather Supervision Consultant. reports. project roads that are conditions within 60 made 'all-year minutes from nearby accessible' based on the villages. Hospitals/health definition. facilities that are located within villages are excluded because they are not subjects for accessibility loss due to flooding. Measures cumulative Project At completion of each MPWT and MRD Annual Schools number of schools that are progress section of road works, Supervision made accessible all year reports. the supervision Consultant. Page 35 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) round as a result of the consultant counts all project. 'All-year round eligible schools along accessibility' is defined as roads that are made all- accessible using the project year accessible based on roads by bicycles under any the definition. weather conditions within 60 minutes from nearby villages. Schools that are located within villages are excluded because they are not subjects for accessibility loss due to flooding. Before road improvement work starts, the supervision Upon road improvement consultant drive along completion, measuring the project road from average travel time saving start to end point using a along each project- motorcycle, within the Project financed national roads speed limit by law, and MPWT supervision Travel time reduction along project- Annual progress compared with baseline. As record baseline travel consultant. financed national roads reports road condition improving time. After road for more sections of improvement work project road, the average commenced, the travel time is expected to supervision consultant reduce. use the same approach to record travel time on annual basis. Travel time reduction along the project- Upon road improvement Annual Project Before road MPWT Supervision financed provincial roads completion, measuring progress improvement work Consultant Page 36 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) average travel time saving reports. starts, the supervision along each project- consultant drive along financed provincial roads the project road from compared with baseline. As start to end point using a road condition improving motorcycle, within the for more sections of speed limit by law, and project road, the average record baseline travel travel time is expected to time. After road reduce. improvement work commenced, the supervision consultant use the same approach to record travel time on annual basis. Beneficiary number is based on the population Population data for Measures cumulative data from communes/village locate number of people living relevant d along the project road Number of people that benefit from within 2 km radius around government Annual within 2 km radius, MRD and MPWT improved access to sustainable transport the project roads to an all- agencies. which is counted by the infrastructure and services season, climate-resilient Kilometer of percentage of roads rural or national/provincial project roads improved throughout road. completed. the rehabilitation process. Measures the share of Upon completion of Project Project-financed assets (road and bridges) project financed assets construction works by MRD and MPWT Continuous progress have a sustained resilience with service (NRs, PRs, rural roads, and milestones, the Supervision Consultant reports. level maintained under the OPBRC bridges) transferred to supervision consultant maintenance phase under calculates the share of Page 37 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) OPBRC after completion of completed assets (road construction works. The and bridges) that are OPBRC has specific transferred to performance requirements performance-based and indicators for O&M under OPBRC and resilience. records in the project progress report . ME PDO Table SPACE Monitoring & Evaluation Plan: Intermediate Results Indicators Mapped Methodology for Data Responsibility for Data Indicator Name Definition/Description Frequency Datasource Collection Collection At completion of each construction milestones, the supervision Measures cumulative consultant records the kilometers of NRs and PRs Project length of NRs/PRs upgraded with climate MPWT Supervision National and provincial roads improved Continuous progress improved with designed resilience measures. Consultant with climate resilience measures report. climate resilient Disaggregated data at both measures and levels would be gathered, accumulate it with entered and monitored. previously qualified road length. At completion of each Measures cumulative Project bridge works, the MPWT Supervision Bridges repaired/upgraded with climate numbers of bridges along Continuous progress supervision consultant Consultant. resilient measures NRs upgraded with climate reports. records the number of resilient measures. bridges improved with designed climate Page 38 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) resilient measures, and accumulates it with previously qualified bridges. On continuous basis, the supervision consultant records the number of Measures cumulative share females employed with of female workers (skilled Project paid jobs over total and non-skilled) employed MPWT Supervision Female employees with paid jobs under Continuous progress employees mobilized for with paid jobs over total Consultant OPBRC for national and provincial roads reports. OPBRC implementation workers employed under to calculate the OPBRC for national and percentage and record provincial roads. in project progress report. The number of people The number of people with with enhanced access to enhanced access to transportation services Project Number of people with enhanced access transportation services as a is measured by MPWT Supervision Annual progress to transportation services - IDA Core result of road condition multiplying the total Consultant reports. Sectoral Indicator and accessibility number of beneficiaries improvement from the by the proportion of the project. road upgraded. Upon completion of Measures the length of Road safety road improvement MPWT Supervision project-financed national assessment Targeted national and provincial roads Continuous works by milestones, the Consultant and Road and provincial roads records/repor built with road safety measures Supervision Consultant Safety Auditor. constructed with sufficient ts. and Road Safety Auditor road safety measures. evaluates completed Page 39 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) road sections and record the length of roads built with road safety measures specified in the detailed designs (audited for road safety). Upon the completion The kilometers of project- and submission of road financed national and Road safety safety audit provincial roads that are MPWT Supervision assessment report/review, Road design audited for safety assessed upon the Continuous Consultant and road records/repor the section of assessed measures completion of the detailed safety auditor. ts. roads is recorded in the design to ensure sufficient result framework by road safety measures have length (km). been incorporated. At completion of each section of road works, the supervision consultant records the Measures cumulative Project length of road improved MRD Supervision Rural roads upgraded with climate kilometers of rural roads Continuous progress with climate resilience Consultant resilience measures upgraded with climate reports. measures based on resilience measures. detailed designs, and accumulate it with previously qualified length of roads. Measures the length of Road safety Upon completion of MRD Supervision Targeted rural roads built with road safety project-financed rural Continuous assessment road improvement Consultant and Road measures roads constructed with records/repor works by milestones, the Safety Auditor. sufficient road safety ts. Supervision Consultant Page 40 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) measures. and Road Safety Auditor evaluates completed road sections and record the length of roads built with road safety measures specified in the detailed designs (audited for road safety). Upon the completion The kilometers of project- and submission of road Continuous financed rural roads that Road safety safety audit during MRD Supervision are assessed upon the assessment report/review, Road design audited for road safety detailed Consultant and Road completion of the detailed records/repor the section of assessed measures design Safety Auditor. design to ensure sufficient ts. roads is recorded in the stage road safety measures have result framework by been incorporated. length (km). On continuous basis, the supervision consultant records the number of Measures cumulative share females employed with of female workers (skilled Project paid jobs over total MRD Supervision Female employees with paid jobs under and non-skilled) employed Continuous progress employees mobilized for Consultant OPBRC for rural roads with paid jobs over total reports. OPBRC implementation workers employed under to calculate the OPBRC for rural roads. percentage and record in project progress report. Rural Roads Accessibility and Financing Measures the completion Once Completed Upon the completion of MRD Strategy developed of the development of Rural Roads Rural Roads Financing Page 41 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) Rural Roads Financing Financing Strategy and stakeholder Strategy and stakeholder Strategy. consultation, MRD consultations. updates this result indicator. Upon the completion of the upgrade of road Project Measures the completion crash database and the progress of georeferenced data registration of the Georeferenced data registered in the Annual report MPWT registration in the georeferenced data into upgraded road crash database prepared by upgraded road crash the system, MPWT. database. MPWT updates the result indicator. On continuous basis, the supervision consultant records in the project Measures cumulative progress report the number of community Project number of community MRD and MPWT Community members trained through members trained through Continuous progress members trained Supervision Consultant road safety awareness campaigns road safety awareness reports. through road safety campaigns provided by the awareness campaigns, project. and number of men trained among the total participants. Measures cumulative Project Measures cumulative number of men community progress number of men MRD and MPWT Share of men out of total community members trained through Continuous report community members Supervision Consultants members trained road safety awareness prepared by trained through road campaigns provided by the supervision safety awareness project. consultants of campaigns provided by Page 42 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) MRD and the project. MPWT. Project On continuous basis, the progress supervision consultant Measures the aggregated report records in the project number of MRD and MPWT prepared by progress report the MRD and MPWT staff trained on OPBRC, staff trained to manage Continuous MPWT and MRD supervision number of MRD and disagrgregated by gender OPBRC for road consultants of MPWT staff trained on construction and MPWT and OPBRC, disaggregated maintenance. MRD. by gender. Proeject Record training Share of female employees Continuous Disaggregated by gender (number of progress participants including MPWT and MRD at MPWT and MRD trained . female staff trained) reports. gender. on OPBRC. On continuous basis, the supervision consultant records in the project progress report the Measures the share of Project number of contractor’s MPWT and MRD Contractors' work force trained on ESHS, Contractor work force Continuous progress work force trained on Supervision Consultants OHS and GBV/VAC Code of Conduct trained on ESHS, OHS and reports. ESHS, OHS and GBV/VAC GBV/VAC Code of Conduct. code of conduct over total number of work force. Measures grievances Project On continuous basis, the registered raising from Continuous progress supervision consultant MPWT and MRD Grievances registered and addressed in a project activities and report records in the project Supervision Consultant timely manner resolved within three prepared by progress report the months time, with gender supervision number of registration Page 43 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) disaggregated data. consultants of and resolution of MPWT and grievances received MRD. arising from project activities, with gender disaggregated data. Upon the completion of road construction and rehabilitation, MPWT Measures the share of and MRD conduct survey surveyed beneficiaries who Consultation Beneficiaries expressing satisfaction with to seek for beneficiary's expressed satisfaction with Once minutes, MPWT and MRD improved road condition and accessibility feedback on the level of improved road condition reports to facilities satisfaction of improved and accessibility to road conditions and facilities. accessibility to facilities. ME IO Table SPACE Page 44 of 45 The World Bank Additional Financing to Road Connectivity Improvement Project (P181396) Annex I: Legal Covenants Finance Agreement Grant ID Description of Covenants Status Reference Institutional The Recipient shall maintain, a Steering Committee Complied with. The Arrangement with terms of reference and composition acceptable Project Steering to the Association to be responsible, inter alia, for Committee was Section I.A 2 of providing overall policy direction, strategic guidance, established in June Schedule 2 to the and general oversight of the Project. 2021 with Financing Agreement representatives of MRD, MPWT, and MEF and has been performing the required mandate. Annual Work Plans The Recipient shall furnish to the Association, after Complied with. AWPB and Budget approval by MEF, for review and approval not later for 2020, 2021, 2022 Section I.C 1 of than November 30 of each year during the and 2023 were all Schedule 2 to the implementation of the Project (or such later date as submitted before the Financing Agreement the Association may agree), an annual work plan and required due date. budget (“AWPB”) for the Project containing relevant Project activities and expenditures proposed to be IDA-67670 included in the Project in the subsequent year. Environmental and The Recipient shall ensure that the Project is carried Complied with. Social Standards out in accordance with the Environmental and Social Sections I.D.1 and Standards, in a manner acceptable to the Association. I.D.2 of Schedule 2 to Without limitation upon paragraph 1 above, the the Financing Recipient shall ensure that the Project is implemented Agreement in accordance with the Environmental and Social Commitment Plan, including Environmental and Social Instruments referred to therein (ESCP), in a manner acceptable to the Association. To this end, the Recipient shall ensure that: (a) the measures and actions specified in the ESCP are implemented with due diligence and efficiency, and as further specified in the ESCP and the Safeguards Instruments; (b) sufficient funds are available to cover the costs of implementing the ESCP; (c) policies, procedures and qualified staff are maintained to enable it to implement the ESCP, as further specified in the ESCP; and (d) any of the ESCP, or any provision thereof, is not amended, revised or waived, except as the Association shall otherwise agree in writing and the Recipient has, thereafter, disclosed the revised ESCP. Page 45 of 45