Document of The World Bank FOR OFFICIAL USE ONLY Report No: ICR00005872 IMPLEMENTATION COMPLETION AND RESULTS REPORT IDA 60140 and TF A4488 ON A CREDIT IN THE AMOUNT OF SDR 44.2 MILLION (US$60 MILLION EQUIVALENT) and A TRUST FUND GRANT IN THE AMOUNT OF US$0.82 MILLION TO THE The Kingdom of Cambodia FOR THE Cambodia Southeast Asia Disaster Risk Management Project October 1, 2023 Urban, Resilience and Land Global Practice East Asia and Pacific Region CURRENCY EQUIVALENTS (Exchange Rate Effective March 31, 2023) Currency Unit = SDR 1 SDR = US$1.35 FISCAL YEAR January 1 – December 31 Regional Vice President: Manuela V. Ferro Country Director: Mariam J. Sherman Regional Director: Anna Wellenstein Practice Manager: Ming Zhang Task Team Leader(s): Vica Rosario Bogaerts ICR Main Contributor: Hyunji Lee ABBREVIATIONS AND ACRONYMS AADT annual average daily traffic CEN Country Engagement Note CERC Contingent Emergency Response Component CPF Country Partnership Framework DBST Double Bituminous Surface Treatment DDS detailed design and supervision DRFS disaster risk finance strategy DRM disaster risk management DRR disaster risk reduction EIRR economic internal rate of return ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan FM financial management GBV gender-based violence GDFI General Department of Financial Industry GRM Grievance Redress Mechanism IDA International Development Association IRI International Roughness Index KH-SEADRM Cambodia Southeast Asia Disaster Risk Management Project M&E monitoring and evaluation MEF Ministry of Economy and Finance MoU Memorandum of Understanding MRD Ministry of Rural Development MTR Mid-Term Review NAP-DRR National Action Plan for Disaster Risk Reduction NBFSA Non-bank Financial Service Authority NPV net present value OPBRC Output- and Performance-Based Road Contract O&M operation and maintenance PAD Project Appraisal Document PDO Project Development Objective PDRD Provincial Department of Rural Development PMU Project Management Unit RETF recipient-executed trust fund RRAM Rural Road Asset Management SDR special drawing rights SEA/SH sexual exploitation and abuse/sexual harassment SEADRIF Southeast Asia Disaster Risk Insurance Facility SEADRM Southeast Asia Disaster Risk Management Project ToR Terms of Reference ToC Theory of Change TABLE OF CONTENTS DATA SHEET .......................................................................................................................... 1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ....................................................... 5 A. CONTEXT AT APPRAISAL .........................................................................................................5 B. SIGNIFICANT CHANGES DURING IMPLEMENTATION ................................................................9 II. OUTCOME ...................................................................................................................... 9 A. RELEVANCE OF PDOs ..............................................................................................................9 B. ACHIEVEMENT OF PDOs (EFFICACY) ...................................................................................... 10 C. EFFICIENCY ........................................................................................................................... 15 D. JUSTIFICATION OF OVERALL OUTCOME RATING .................................................................... 15 E. OTHER OUTCOMES AND IMPACTS ......................................................................................... 16 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................ 17 A. KEY FACTORS DURING PREPARATION ................................................................................... 17 B. KEY FACTORS DURING IMPLEMENTATION ............................................................................. 18 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .. 20 A. QUALITY OF MONITORING AND EVALUATION (M&E) ............................................................ 20 B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE ..................................................... 21 C. BANK PERFORMANCE ........................................................................................................... 22 D. RISK TO DEVELOPMENT OUTCOME ....................................................................................... 23 V. LESSONS AND RECOMMENDATIONS ............................................................................. 24 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ........................................................... 26 ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION ......................... 37 ANNEX 3. PROJECT COST BY COMPONENT ........................................................................... 40 ANNEX 4. EFFICIENCY ANALYSIS ........................................................................................... 41 ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ... 44 ANNEX 6. SUPPORTING DOCUMENTS .................................................................................. 45 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name Cambodia Southeast Asia Disaster Risk Management P160929 Project Country Financing Instrument Cambodia Investment Project Financing Original EA Category Revised EA Category Partial Assessment (B) Partial Assessment (B) Organizations Borrower Implementing Agency Ministry of Economy and Finance, Ministry of Rural The Kingdom of Cambodia Development Project Development Objective (PDO) Original PDO The Project Development Objective is to improve climate resilient rural road connectivity in select provinces. Page 1 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) FINANCING Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) World Bank Financing 60,000,000 59,637,950 60,229,735 IDA-60140 1,000,000 815,669 815,669 TF-A4488 Total 61,000,000 60,453,619 61,045,404 Non-World Bank Financing 0 0 0 Total 0 0 0 Total Project Cost 61,000,000 60,453,618 61,045,403 KEY DATES Approval Effectiveness MTR Review Original Closing Actual Closing 14-Apr-2017 05-Jun-2017 02-Dec-2019 31-Mar-2022 31-Mar-2023 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 28-Aug-2020 5.61 Change in Results Framework Change in Loan Closing Date(s) 01-Sep-2020 5.61 KEY RATINGS Outcome Bank Performance M&E Quality Satisfactory Satisfactory Substantial RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 23-Jul-2017 Satisfactory Satisfactory 0 Page 2 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) 02 01-Mar-2018 Satisfactory Moderately Satisfactory .52 03 30-Aug-2018 Satisfactory Moderately Satisfactory 1.35 04 11-Mar-2019 Moderately Satisfactory Moderately Satisfactory 2.02 05 12-Sep-2019 Moderately Satisfactory Moderately Satisfactory 2.76 06 20-Mar-2020 Moderately Satisfactory Moderately Satisfactory 3.51 07 25-Sep-2020 Moderately Satisfactory Moderately Satisfactory 5.80 08 15-Apr-2021 Moderately Satisfactory Moderately Satisfactory 12.31 09 09-Dec-2021 Moderately Satisfactory Moderately Satisfactory 27.07 10 30-Jun-2022 Moderately Satisfactory Moderately Satisfactory 42.85 11 19-Dec-2022 Satisfactory Satisfactory 57.71 12 12-Mar-2023 Satisfactory Satisfactory 58.88 SECTORS AND THEMES Sectors Major Sector/Sector (%) Transportation 100 Public Administration - Transportation 6 Rural and Inter-Urban Roads 94 Themes Major Theme/ Theme (Level 2)/ Theme (Level 3) (%) Urban and Rural Development 100 Road Safety 70 Disaster Risk Management 100 Disaster Response and Recovery 60 Disaster Risk Reduction 97 Flood and Drought Risk Management 40 Page 3 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Environment and Natural Resource Management 100 Climate change 100 Adaptation 100 ADM STAFF Role At Approval At ICR Regional Vice President: Victoria Kwakwa Manuela V. Ferro Country Director: Ulrich Zachau Mariam J. Sherman Director: Ede Jorge Ijjasz-Vasquez Anna Wellenstein Practice Manager: Abhas Kumar Jha Ming Zhang Henrike Brecht, Olivier Mahul, Task Team Leader(s): Vica Rosario Bogaerts Robert Curle Jesse Reid ICR Contributing Author: Hyunji Lee Page 4 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES A. CONTEXT AT APPRAISAL Context 1. After two decades of strong economic growth, Cambodia attained lower-middle-income status in 2015. Despite this strong growth, Cambodia was still one of the poorest countries in the Southeast Asia region, and its economy relied heavily on rural areas where limited connectivity and repeated disasters posed persistent barriers to development. At the time of project appraisal, most of Cambodia’s productive resources—labor, land, and natural resources—were in rural areas; the agriculture sector represented 51 percent of the total labor force and 25.6 percent of gross domestic product (GDP). A strategic investment linking farms, markets, and basic services was thus seen as vital to continued poverty reduction and shared prosperity in the coming years. 2. In 2016, Cambodia was ranked among the countries most vulnerable to climate-related risks. The 2016 World Risk Index ranked Cambodia as the ninth most disaster-prone country in the world.1 Floods, storms, and droughts were (and are) the most prevalent hazards in the country and were expected to become more frequent and intense under climate change. Disasters frequently threatened people’s lives and livelihood assets and required public outlays for emergency response, while repairs and reconstruction often drained available resources.2 In particular, the country’s rural infrastructure, including rural roads—38,500 km in length and approximately 80 percent unpaved—remained highly vulnerable to disasters. Flooding in 2011 and 2013 damaged 1,842 km and 1,557 km of rural roads, respectively, with reconstruction costs of US$127 million for the former event and US$53 million for the latter. The resulting damage to rural roads disrupted connectivity and access to basic services, such as schools, hospitals, and markets, and threatened the livelihoods of rural households. 3. The Government of Cambodia identified mainstreaming of disaster resilience in national strategies and investment plans as a key development priority. The National Action Plan for Disaster Risk Reduction (NAP-DRR) 2014–2018 set out the government’s priority to “build [a] resilient nation and local communities to pursue sustainable development,”3 and recognized the need to shift the disaster risk reduction (DRR) paradigm from ex post response to ex ante actions. NAP-DRR outlined strategic activities such as the development of a fiscal framework for climate change adaptation and DRR, the use of climate risk information in national and subnational plans, and the inclusion of DRR actions in all sectoral policies and annual plans. The National Strategic Development Plan 2014– 2018 also identified disaster risk as the major challenge to its development objectives, noting in particular the need to strengthen rural transport infrastructure in order to improve rural people’s access to services and to facilitate the transport of rural products to markets.4 In June 2015, Cambodia's legislature passed the Law on Disaster Management, which marked a major shift toward the mainstreaming of DRR. 1 United Nations University, Institute for Environment and Human Security, and Bündnis Entwicklung Hilft, “World Risk Report 2016,” https://collections.unu.edu/eserv/UNU:5763/WorldRiskReport2016_small_meta.pdf. 2 World Bank, “Cambodia: Risk Screening Overview,” Climate Change Knowledge Portal (accessed September 2016), https://climatescreeningtools.worldbank.org/; World Bank/Global Facility for Disaster Reduction and Recovery, ASEAN. Advancing Disaster Risk Financing and Insurance in ASEAN Member States: Framework and Options for Implementation (Washington, DC: World Bank, 2012), https://www.gfdrr.org/sites/default/files/publication/DRFI_ASEAN_REPORT_June12.pdf. 3 Kingdom of Cambodia, “National Action Plan for Disaster Risk Reduction (NAP-DRR) 2014–2018,” November 2013, https://www.rcrc-resilience- southeastasia.org/wp-content/uploads/2017/12/2014_national_action_plan_for_disaster_risk_reduction__nap-drr__2014-2018_english.pdf. 4 Kingdom of Cambodia, “National Strategic Development Plan 2014–2018,” https://planipolis.iiep.unesco.org/en/2014/national-strategic- development-plan-2014-2018-nsdp-6252. Page 5 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) 4. The Cambodia Southeast Asia Disaster Risk Management Project (KH-SEADRM) was designed to support the Government of Cambodia in mainstreaming disaster risk management (DRM) in development and strengthening financial resilience. The KH-SEADRM was part of a South East Asia regional series of projects on DRM (SEADRM) implemented across Cambodia, Lao People’s Democratic Republic, and Myanmar with three main objectives: (i) to promote disaster risk financing by establishing the region’s first regional catastrophe risk pool, the Southeast Asia Disaster Risk Insurance Facility (SEADRIF), and carrying out related capacity building; (ii) to strengthen the capacity of the implementing agencies in mainstreaming DRM into policies; and (iii) to provide integrated packages of structural and nonstructural investments that increase climate and disaster resilience. The overall design of KH- SEADRM was replicated and scaled up under both the Cambodia Southeast Asia Disaster Risk Management Project 2 (KH-SEADRM2, P177185, US$172 million), approved on May 20, 2022, and the Cambodia Road Connectivity Improvement Project (P169930, US$100 million). 5. The KH-SEADRM Project supported the World Bank’s Country Engagement Note (CEN) for Cambodia for the period FY16–FY17 (Report No. 104843), which pointed to the importance of DRM and resilient rural development. Recognizing the burden created by recurrent disaster impacts and associated costs of repair and rehabilitation of rural infrastructure, the Country Engagement Note highlighted the development of strategic DRM investment plans and technical guidelines as key milestones.5 The pillars of the strategy included strengthening of (i) governance and institutions through support for capacity building for national and provincial agencies; (ii) infrastructure and urbanization through investments in road infrastructure; and (iii) climate change adaptation and DRM through resilient investments and disaster risk financing and insurance. Theory of Change (Results Chain) 6. A Theory of Change (ToC) was not required at the time of project appraisal. The ToC for this project has been created for the purpose of this Implementation Completion and Results Report (ICR), drawing on the information in the Project Appraisal Document (PAD, Report No: PAD2014) (figure 1). 5World Bank, “Country Engagement Note for the Kingdom of Cambodia for the PERIOD FY2016–2017,” April 27, 2016, https://documents1.worldbank.org/curated/en/173801467999088768/pdf/104843-CEN-P120312-IDA-R2016-0068-IFC-R2016- 0088-MIGA-R2016-0022-Box394888B-OUO-9.pdf. Page 6 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Figure 1. Project’s Theory of Change Note: TA = technical assistance; MEF = Ministry of Economy and Finance; MRD = Ministry of Rural Development; PDO = Project Development Objective. Project Development Objectives (PDOs) 7. The PDO, as stated in legal agreement and the PAD, is to improve climate-resilient rural road connectivity in select provinces. Key Expected Outcomes and Outcome Indicators 8. The achievement of the PDO comprised two direct outcomes: (i) improved climate resilience of rural roads; and (ii) strengthened connectivity across rural communities. The project also aimed to improve national capacity for financial planning for disaster resilience as part of the regional SEADRM projects, although this aim was not explicitly stated in the PDO.6 9. The achievement of the key expected outcomes was to be measured through the following PDO indicators, which were common to all SEADRM participating countries (Cambodia, Lao PDR, and Myanmar): (i) Residents benefitting from all-season rural roads; (ii) Public investment planning that takes disaster and climate risks into account; and (iii) Government’s possession of information and capacity to access sovereign disaster risk insurance. 6 The disaster risk financing aspect was not included in the PDO because the government wished to obtain sufficient information on the feasibility and impacts of the concept before agreeing to set an objective related to the activity. The PDO indicator on SEADRIF was included to align with the other SEADRM projects in the hope of securing additional resources (e.g., regional IDA funding secured for the Lao PDR SEADRM project) for a stand-alone component on the activity. See section III for more details. Page 7 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Components Component 1: Resilient Rural Corridors (appraisal cost: US$58 million, IDA credit; completion cost: US$55.69 million, IDA credit) 10. This component financed the rehabilitation and maintenance of resilient rural roads (completion cost US$54.38 million, IDA credit), including civil works for climate-resilient rehabilitation; strengthening of safety and maintenance of selected existing rural roads in the provinces of Stung Treng, Kratié, Kampong Cham, Tboung Khmum, Siem Reap, and Kandal; and road safety training, DRM awareness raising, and disaster preparedness planning for communities adjacent to these rural roads. 11. In addition, Component 1 facilitated institutional strengthening for disaster resilience (completion cost US$1.32 million, IDA credit) through the provision of technical assistance. Activities included (i) assessment of the vulnerability of rural roads to climate-induced disasters; (ii) identification and prioritization of infrastructure improvement measures for the vulnerable roads; (iii) development of institutional strengthening measures to enable efficient disaster response; (iv) capacity building for road data collection, vulnerability assessment, and prioritization of infrastructure improvements; and (v) updating of the existing road design guidelines. Component 2: Financial Planning for Disaster Resilience (appraisal cost: US$1 million; completion cost: US$0.8 million, recipient-executed trust fund [RETF] TF0A4488) 12. This component financed technical assistance to strengthen the capacity of the Ministry of Economy and Finance (MEF) to carry out financial planning for disaster resilience, including (i) mainstreaming of disaster and climate resilience in public investment planning and development processes; (ii) preparation and implementation of a national disaster and climate risk finance strategy; (iii) facilitation of the recipient’s feasibility study on a regional disaster risk pooling mechanism; and (iv) support for day-to-day implementation of the component. Component 3: Project Management (appraisal cost: US$2 million, IDA credit, and US$1.5 million, counterpart financing; completion cost: US$4.54 million, IDA credit, and US$0.34 million, counterpart financing). 13. This component financed technical and operational assistance to strengthen the institutional, organizational, and technical capacity of the Ministry of Rural Development (MRD) to support day-to-day project implementation, including coordination, technical guidance, procurement, financial management, social and environmental safeguards, monitoring and evaluation (M&E), and reporting. Component 4: Contingent Emergency Response Component (CERC) (appraisal cost: 0; completion cost: 0). 14. This component was designed to support immediate and effective response to an eligible crisis or emergency. It was not triggered during the implementation of the project. The CERC Manual was prepared under TF0A9581. Page 8 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) B. SIGNIFICANT CHANGES DURING IMPLEMENTATION Revised PDOs and Outcome Targets 15. The PDO and the overall project design remained unchanged. One outcome target was revised after project restructuring (August 2020, RES41325) to reflect the updated baseline data. Revised PDO Indicators 16. No Changes. Revised Components 17. No Changes. Other Changes 18. The project restructuring resulted in the following changes: (i) extension of the closing date of the credit by 12 months, from March 31, 2022, to March 31, 2023; (ii) extension of the closing date of the RETF by two months, from August 30, 2020, to October 31, 2020; (iii) updating of the results indicators in light of improved baseline data and to better reflect the project’s expected outcomes (see table 1 in the Restructuring Paper); (iv) updating of the projected disbursements, based on the above changes; and (v) updating of the Systematic Operations Risk-Rating Tool (SORT) to reflect risks from the COVID-19 pandemic. Annex 1 describes the changes to the Results Framework. Rationale for Changes and Their Implication for the Original Theory of Change 19. The overall project design remained unchanged, and the ToC was not affected. II. OUTCOME A. RELEVANCE OF PDOs Rating of Overall Relevance: High Assessment of Relevance of PDOs and Rating 20. The PDO remains highly relevant to the World Bank Group’s Cambodia Country Partnership Framework (CPF) FY19– FY23 (Report No. 136500-KH). It supported the CPF focus area on promoting state efficiency and boosting private sector development, specifically Objective 3: Expand and Improve Sustainable Infrastructure Services, which highlights the critical need to incorporate resilience in future infrastructure investments, including roads. The CPF further notes that infrastructure services in rural areas are lagging and represent a priority, and the PDO directly contributes to the country’s rural development strategies. Cambodia’s Rural Development Strategy Action Plan 2019–2023 prioritizes “improving quality and resilience of the rural roads infrastructure network,”7 and the Rural Development Policy 2019– 2023 highlights the need for rural road inventory and vulnerability mapping8. The goal is to ensure that rural roads are built or renovated using resilience standards, and that institutional capacity is increased to address climate change. Disaster risk financing, which is an indirect outcome of the PDO, is also reflected as an indicator in the CPF (see paragraph 32). 7 Ministry of Rural Development, “Rural Development Strategy, Action Plan 2019–2023,” https://ncsd.moe.gov.kh/resources/document/rural-development-strategy-and-action-plan-2019-2023. 8 Ministry of Rural Development, “Rural Development Policy 2019–2023,” https://ncsd.moe.gov.kh/resources/document/rural- development-policy-2019-2023. Page 9 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) B. ACHIEVEMENT OF PDOs (EFFICACY) Overall Efficacy Rating: Substantial 21. Split Rating. The PDO remained unchanged, while one of the PDO indicator targets (number of beneficiaries benefitting from all-season rural roads) was reduced by 4 percent relative to the original target. This descoping was deemed minor; the reduced target was slightly exceeded at the end of the project. As such, a split rating has not been carried out. Assessment of Achievement of Each Objective/Outcome 22. The efficacy of the project is summarized based on three outcomes: (i) improved climate resilience of rural roads (Outcome 1); (ii) strengthened connectivity across rural communities (Outcome 2); and (iii) improved national capacity for financial planning for disaster resilience (Outcome 3). 23. The project achieved all three PDO-level indicators, successfully contributing to Outcomes 1, 2, and 3, as outlined below. The project provided direct benefits to 328,910 individuals, exceeding the end target of 325,000; 50.6 percent of beneficiaries were women (see discussion of Outcome 1 below and annex 1). Public investment plans successfully considered disaster and climate risks through the development of the national disaster risk finance strategy (DRFS) and a series of technical assistance activities (see discussions of Outcomes 1 and 3). Cambodia also gained information and capacity needed to access sovereign disaster risk insurance (see discussion of Outcome 3). Outcome 1: Improved climate resilience of rural roads 24. Outcome 1 was achieved. Although the targets were fully achieved, there is still room for improvement in terms of maintenance of rural roads. Table 1 summarizes key indicators and outputs related to Outcome 1. Table 1. Key indicators and outputs linked to the achievement of Outcome 1 Category Description End target Achieved 1. Number of beneficiaries benefitting from all-season rural roads 325,000 328,910 Outcome indicators 2. Public financial investment planning takes into account disaster and climate risks Yes Yes 1. Rural road investment plans are developed in project provinces 6 6 and incorporate vulnerability information (number) Intermediate results 2. Length of rural roads upgraded indicators 3. Proportion of beneficiaries satisfied with road condition, safety, 250.41 km 252.65 km and accessibility of rehabilitated and maintained roads 60 percent 99 percent 4. Improvement of road condition (roughness index) < 4.5 3.78 25. The improved climate resilience of rural roads was achieved via the following three interrelated channels: (i) mainstreaming of disaster resilience in the rural development planning process (planning); (ii) physical upgrading of road conditions in rural areas (implementation); and (iii) operation and maintenance (O&M) of the upgraded roads for sustainability (maintenance). The project activities were designed to support these interrelated channels, the performance of which exceeded or met the originally envisaged end targets. (i) Planning (mainstreaming of disaster resilience into rural development planning process). The project fostered planning for disaster and climate resilience at both national and subnational levels. At the national level, Component 2 technical studies assessed Cambodia’s existing public investment plans, including rural Page 10 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) development plans related to disaster resilience, and provided recommendations.9 The DRFS further provided entry points to improving the resilience of rural development and establishing agricultural sector assets and public rural infrastructure as key priorities for disaster risk financing.10 In collaboration with the relevant ministries, MEF plans to develop sectoral action plans to implement identified priority actions in the rural development sector.11 At the subnational level, under Subcomponent 1.2, all six provinces targeted by the project have developed rural road investment plans that identify, value, and prioritize physical improvements to the roads vulnerable to climate-induced disasters. (ii) Implementation (rehabilitation of rural roads). The project improved climate resilience by upgrading 252.64 km of rural roads from earthen roads to all-season roads.12 To strengthen climate resilience, the Project Management Unit (PMU) deliberated on various design strategies, including avoidance (i.e., raising of roads to avoid flooding) versus coping (i.e., improvement of the road surface to allow for periodic inundation); this exercise considered costs and benefits, including the longer-term social and environmental consequences of design approaches. Upon consideration of technical, financial, and safeguard implications (based on the results of technical assistance support provided during project preparation), the PMU’s road design in general opted to cope with floods, effectively blending engineering assessments and local knowledge of prevalent floods (see table 2). At the time of appraisal, the project was aiming to upgrade 290 km of rural earthen roads. However, in response to increased civil works costs and procurement delays, the project reduced the target length to 250 km (252.6 km was achieved) following the restructuring. In addition, 27 km of the road upgrades out of the 40 km cut from the project, were carried over to the follow-on project KH-SEADRM2 (P177185). Road conditions have improved significantly; average roughness of the project-funded roads decreased according to the International Roughness Index (IRI).13 The project-funded roads also withstood the floods in 2022; they reported less damage than adjacent unpaved rural roads, which suffered significant damage.14 Table 2. Design approaches for rural roads Design Description Advantages Disadvantages approach Typical - Generally non-engineered roads with - Low cost for construction ( < - High maintenance costs (annual routine approach some laterite (gravel) pavement (80% of US$20,000/km) maintenance cost almost equal to cost of rural roads unpaved in Cambodia) - Simple technology and tools for rehabilitation to maintain the IRI at value - Route traversed by rivers and maintenance (suitable for of less than 7) watercourses during rainy weather maintenance by communities) - Extremely vulnerable to disasters such as - Limited drainage flooding; difficult or no access during and after rains - Negative social and health impacts - High vehicle operating costs, low average operating speeds (< 20 km/h) 9 Ministry of Economy and Finance, “MEF-CQS-S03: Mainstreaming Disaster and Climate Risk Management into Investment Decisions,” 2020. 10 Ministry of Economy and Finance, “Cambodia Disaster Risk Financing Strategy,” 2023. 11 This is based on the interview with MEF on April 5, 2023, during the ICR mission. 12 All-season roads are roads paved with materials that are passable by vehicles under both wet and dry weather conditions. For more detailed descriptions of the applied technical design, see Ministry of Rural Development, “Project Completion Report,” 2023. 13 IRI is useful for assessing overall pavement ride quality. It describes how much total vertical movement a standard passenger vehicle’s body would experience if driven over a 1-mile segment of the subject pavement at 50 mph. IRI ranges from 0 to 20, with higher IRI values indicating a rougher road surface; road condition is considered good if the IRI value is lower than 4. The roughness of the project-funded roads was 3.78, whereas the pre-project average was estimated at around 15. 14 This is based on key informant interviews and field visit observation during the April 2023 mission. Page 11 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) “Coping” - Engineered roads, with concrete - Can be considered “all-season” - High to very high construction costs approach pavement (95 km) or DBST (124 km) (passable most days in a year) (DBST = about US$140,000/km; concrete = pavement under the project (a total of - Allows higher operating speeds (40 about US$250,000/km) 252.6 km upgraded) km/h) and greater traffic volumes, - Requires more complex technology and - Most sections average 0.5 m above the with lower risk of accident or vehicle skills for maintenance (suitable for surrounding ground level; occassional breakdown professional contractors) flooding of the concrete sections - Reduced pavement maintenance - Moderately susceptible to natural (permiting travel up to a certain level) requirements (every 10 years for disasters, such as flooding; theoretically - Side and cross drainage at all sections DBST, every 30–40 years for allows access most days in the year (est. > where necessary concrete) 350 days) - Built to maintain solid comfort road conditions (IRI 4) “Avoidance” - Realignment to avoid vulnerable areas - Long-term solutions with potential - Often requires land acquisition with high approach - Raising of road profile (construction of to completely neutralize (avoid) land acquisition and construction costs embankment) at least 1 m higher than previous negative climatic impacts - Feasibility and usability issues, as the surrounding terrain - Considered “all-weather” (passable realignment may be impractical in some - Under the project, the road in Tbuong most days in a year) areas due to the lack of suitable routes or Khmum between the river and the - Built to maintain solid comfort roadright-of-way temple was planned for realignment due conditions (IRI 4) - Negative impacts of raising road profile to riverbank erosion on current built environment Note: DBST = double bituminous surface treatment; IRI = International Roughness Index. The IRI ranges between 0 and 20; road condition is considered good if lower than 4. (See footnote 13for more details.) (iii) Maintenance (rural roads sustainability and maintenance). The project recognized the importance of O&M in sustaining the climate resilience of rural roads in the country. Under Subcomponent 1.1, the project introduced design solutions (i.e., concrete pavement) aimed at reducing future maintenance requirements. A hybrid Output- and Performance-Based Road Contract (OPBRC) was also piloted for about 10 percent (27 km) of project-funded roads. The pilot yielded mixed results; the PMU committed to the maintenance costs beyond the closing date of the project, but several technical and operational issues were found during the pilot period (see section V).15 Under Subcomponent 1.2, the existing Rural Road Asset Management (RRAM) database was supplemented by information on the climate vulnerability of approximately 4,700 km of rural roads.16 Collection of this information was undertaken by utilizing innovative digital solutions (such as Kobo Toolbox) and with the participation of Provincial Department of Rural Development (PDRD) staff. Following the Asian Development Bank’s training and handover of the RRAM in October 2021, MRD has established a dedicated RRAM team and continues to make efforts to expand the RRAM functionality and use the decision-making tools for the planning, management, and maintenance of the rural roads, and this effort will be further supported by the ongoing World Bank financed Road Connectivity Improvement Project (RCIP, P169930) and KH-SEADRM2 Component 2. 26. The beneficiary satisfaction survey was conducted by the PMU as part of the endline survey at the project closure. The survey indicates that 99 percent of beneficiaries were satisfied with the improved condition of the roads.17 15 The issues are detailed in Ministry of Rural Development, “Project Completion Report,” 2023. 16 Keiko Saito, “Disclosable Version of the ISR – Cambodia Southeast Asia Disaster Risk Management Project – P160929 – Sequence No: 09,” 2021, World Bank, Washington, DC, http://documents.worldbank.org/curated/en/099220012102132446/Disclosable0Ve0929000Sequence0No009. 17 The PMU surveyed a sample population of 341 who live in the targeting communities alongside the upgraded roads under the project and beyond. Page 12 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Outcome 2: Strengthened connectivity across rural communities 27. The achievement of Outcome 2 was exceeded because the targets were fully achieved with additional positive impacts that are not captured in indicators. Table 3 summarizes key indicators and outputs related to Outcome 2. Table 3. Key indicators and outputs linked to the achievement of Outcome 2 Category Description End target Achieved 1. Number of beneficiaries benefitting from all-season rural 325,000 328,910 Outcome indicators roads 1. Number of schools and health facilities connected by 109 110 resilient rural roads Intermediate results 2. Increase in traffic volume 5 percent 56.7 percent indicators 3. Number of rehabilitated and additional infrastructure 434 526 structures that improve disaster resilience Note: see Annex 1 for clarification on the original baseline and end target of intermediate results indicator 3. 28. The project significantly strengthened connectivity across rural communities. The project-funded roads have enabled uninterrupted travel during all seasons. Before the project was implemented, recurrent floods often led to extended road closures in rural areas. In areas with frequent or regular flooding over 0.5 meters, the project used concrete road surfaces. During the 2022 floods, these all-season road segments paved with concrete suffered little or no damage and were reopened immediately after the heavy rains ceased. To ensure the functionality of the upgraded road surfaces, the project also rehabilitated or constructed 526 structures, such as bridges, box culverts, and pipe culverts, against the recalculated target of 434 (see Annex 1). 29. The project facilitated connectivity by reducing travel time between communities and by providing better access to basic public and private facilities. At appraisal, the roads to be funded by the project were selected based on rigorous assessment under eight criteria, three of which were related to improved connectivity —i.e., (i) connectivity to an evacuation route and access to higher ground, (ii) connectivity to social facilities (schools or health facilities), and (iii) connectivity to markets. At project closing, 110 schools and health facilities, some of which are used as emergency shelters, were connected to project-financed upgraded and resilient rural roads.18 The improved condition of these roads led to significant travel time savings for the adjacent rural communities. Respondents to the satisfaction survey conducted at closing indicated that they had saved travel time because of the improved roads. The average time saving was 26 minutes, and the maximum time saving was two hours.19 The effect of improved connectivity is further demonstrated by the 56.7 percent increase in the traffic volume of the upgraded rural roads.20 Outcome 3: Improved capacity of the government for financial planning for disaster resilience 30. Outcome 3 targets were fully achieved, but some minor shortfalls were identified in sequencing, implementing, and sustaining impacts of the relevant activities. Table 4 summarizes key indicators and outputs related to Outcome 3. 18 The original target for schools and health facilities was 300 when the project sites were not specifically defined. During implementation the target was adjusted based on the precise number of targeted facilities within the project site. 19 Ministry of Rural Development, “Project Completion Report,” 2023. 20 Traffic volume dramatically increased compared to the end target. This is because the upgraded roads attracted trucks and other transport modes, while the project had expected only local traffic between communities. Page 13 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Table 4. Key indicators and outputs linked to the achievement of Outcome 3 Category Description End target Actual achieved 1. Cambodia has information and capacity to access sovereign Yes Yes Outcome indicators disaster risk insurance 1. National disaster risk finance strategy is developed Yes Yes 2. Options for mainstreaming disaster and climate resilience Yes Yes Intermediate results into public investment planning are developed indicators 3. Number of technical studies related to disaster risk financing and insurance prepared 3 3 Note: PMU = Project Management Unit; SEADRIF = Southeast Asia Disaster Risk Insurance Facility. 31. The project effectively strengthened government capacity to implement financial planning for disaster resilience. The government—along with the governments of Indonesia, Lao PDR, Myanmar, Japan, and Singapore—signed a Memorandum of Understanding (MoU) on the establishment of SEADRIF on December 14, 2018. The project delivered three technical studies on the legal aspects and financial feasibility of SEADRIF to enable Cambodia to evaluate the pros and cons of joining SEADRIF under sub-trust A.21 MEF held three consultation workshops with public and private sector stakeholders to disseminate the analytical results of the studies and solicited feedback from stakeholders. MEF participated in a SEADRIF meeting in February 2020 in Singapore and in a series of webinars— jointly organized by the World Bank and SEADRIF—on the financial protection of public assets. Cambodia opted out of the first regional catastrophe risk pool (see Section V for more details), but discussions are ongoing on the establishment of another sub-trust that could offer insurance products for the protection of public assets. 32. The project also supported the development of the DRFS. Under the project, the Non-bank Financial Service Authority (NBFSA) in MEF prepared the DRFS with technical assistance from the World Bank. The PMU, comprising representatives from various line ministries and relevant MEF departments, reviewed and provided feedback to finalize the DFRS.22 The stakeholder seminar for the DRFS, held in Phnom Penh on March 27, 2023, marked the achievement of the project’s intermediate results indicator on DRFS, which is also a World Bank CPF indicator.23 MEF is planning a series of activities for the successful implementation of the DRFS: (i) a final revision reflecting all stakeholder comments; (ii) translation to Khmer language; (iii) operationalization of an M&E system for the DRFS; and (iv) circulation to all relevant ministries and stakeholders and development of action plans for DRFS implementation.24 However, a few issues were noted during the ICR mission: (i) at the design stage, the World Bank, MEF, and stakeholders did not elaborate the final step in DRFS development (preparation, endorsement, disclosure, implementation) targeted by this activity (see annex 1); and (ii) a significant delay in development of the DRFS hindered timely support to the government, which was critical to enable evidence-based approach for disaster risk financing in the country.25 21 The three SEADRIF-related studies were (i) a legal feasibility study, (ii) a disaster risk financing gap and insurance product analysis, and (iii) a disaster risk financing gap and insurance product analysis for public assets. 22 The PMU comprises representatives from 10 different line ministries, including the National Committee for Disaster Management, Ministry of Water Resources and Meteorology, Ministry of Rural Development, Ministry of Public Works and Transport, Ministry of Agriculture, and other inter-general departments under the Ministry of Economy and Finance. At the beginning of project implementation, the NBFSA in MEF requested that these line ministries appoint responsible individuals to the PMU. 23 Cambodia Country Partnership Framework Objective 2: Strengthen public sector accountability and public finance. 24 This is based on the interview with MEF on April 5, 2023, during the ICR mission. 25 World Bank support to DRFS has continued through a recently approved regional technical assistance. Page 14 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Justification of Overall Efficacy Rating 33. All outcome and intermediate indicators were achieved by the end of March 2023, except some minor discrepancies observed in the Results Framework (see annex 1 for more details). Based on the above discussion, efficacy is rated substantial. C. EFFICIENCY Overall Efficiency Rating: Substantial Assessment of Efficiency and Rating 34. Efficiency of infrastructure subprojects. Cost-benefit analysis at the time of appraisal covered the planned upgrading of 290 km of rural roads. Economic benefits identified included (i) avoided damage and losses associated with major and routine flooding; (ii) economic potential; and (iii) development co-benefits (reduced vehicle operating costs, travel time savings, and improved health due to reduced dust). The post-project cost-benefit analysis covered the completed upgrading of 252.6 km of roads at a total cost of US$53.3 million, using the same methodology as that used at appraisal but with updated data. The post-project economic internal rate of return (EIRR) of 43.4 percent is substantially higher than the appraisal EIRR of 35.4 percent. The post-project net present value (NPV) of US$229 million is likewise higher than the appraisal NPV of US$99.7 million (table 5). The significantly higher EIRR is primarily due to the large difference in the observed annual average daily traffic (AADT) (2,542.6 vehicles per day as measured in 2022/2023) and the assumed AADT (746 vehicles per day in 2016 with an annual increase of 5 percent) at the time of appraisal. See annex 4 for details of the economic analysis. Table 5. Cost-benefit analysis at appraisal and post-project Time period EIRR NPV (2016 US$) Appraisal (base case) 35.4% US$99.7 million Post-project 43.4% US$229 million Note: EIRR = economic internal rate of return; NPV = net present value. Figures are for a 20-year project period with a 10% discount rate and a standard conversion factor of 0.9. 35. Administrative and operational efficiency. The project was efficiently prepared and took 10 months from initiation to Board approval. Procurement of the planned activities was delayed in order to align stakeholder views with the intended climate-resilient designs. The COVID-19 pandemic and extreme weather events such as the 2019 floods also contributed to delays, while escalation in civil works costs necessitated adjustments to intervention priorities. In response, the project was restructured in August 2020 to extend the closing date and to reduce the target length of the rural roads to be upgraded. Extensive capacity building was also provided on World Bank procedures and on protocols relating to procurement, financial management, monitoring and evaluation, and safeguards. These efforts helped to improve the administrative and operational efficiency of the project. Nearly all (97 percent) of the IDA credit was disbursed by February 2023, two months ahead of the revised credit closing date. D. JUSTIFICATION OF OVERALL OUTCOME RATING Rating: Satisfactory 36. The relevance of the PDO is rated as high, while efficacy and efficiency are both rated as substantial. The overall project outcome is therefore rated satisfactory. Page 15 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) E. OTHER OUTCOMES AND IMPACTS 37. Gender. The project promoted gender equality by addressing the specific needs and concerns of women. These included (i) raising awareness of communicable diseases, sexual harassment, gender-based violence (GBV), and sexual exploitation or abuse among contractors, and requiring the inclusion of gender in the monthly Environmental Social Health Safety reports; (ii) increasing the income of women in construction work by 17 percent and ensuring fair labor conditions for female workers; (iii) contributing to closing gender gaps in voice and agency by enhancing the capacity of female government staff, 31 percent of whom participated in capacity-development training related to project activities, surpassing the target of 25 percent; and (iv) expanding the number of women beneficiaries so that 50.6 percent of all-season road beneficiaries were women and 100 percent of surveyed women expressed satisfaction with the improved road conditions. 38. Institutional strengthening. The project significantly enhanced (i) the capacity of MRD and PDRDs to plan, construct, and maintain all-season roads, drainage, and related structures in rural areas; and (ii) the capacity of MEF to financially plan for disaster resilience. The project provided extensive capacity building both on technical aspects, such as transport connectivity26 and climate-resilient design for rural roads, and on project management, including procurement, contract management, performance-based contracts, monitoring and evaluation at national and subnational levels, and environmental and social safeguards. The project also aimed to enhance MRD’s and PDRDs’ capacity to improve O&M of rural roads by undertaking vulnerability assessments and collecting disaster vulnerability data, updating technical guidelines with climate-resilience aspects, providing training in the use of GIS and mobile-based data collection methods, and mapping the institutional interventions necessary to improve stakeholder coordination and maintenance efficacy. The PMU made effective use of training opportunities to involve wider ministry staff; for example, training in mobile-based M&E data collection was implemented among PDRD staff across all six project provinces. Technical and project management trainings developed by the project were successfully transferred to wider MRD and PDRD staff implementing other capital investment projects. Under the KH-SEADRM2, for example, M&E training has been replicated for PDRD staff from all 25 provinces. 39. Poverty reduction and shared prosperity. All-season roads are crucial to ensuring effective and equitable access to essential services in rural Cambodia, including markets, schools, and health facilities. The project ensured that such benefits are shared equitably and reach the poor, in part by selecting road segments for improvement based on the number of expected beneficiaries below the national poverty line.27 According to World Bank 2022 subnational poverty estimates, one-third of the project’s target communes reported a higher incidence of poverty than the national average, 28 and the total length of all-season roads upgraded in these communes is estimated at 67.6 km.29 The project’s impact on poverty reduction and shared prosperity is also evident in the observed increase in the use of affordable traffic modes by the poor, including bicycle trailers (247 percent), ox and horse carts (227 26 X. Alegre, Z. Stanton-Geddes, and S. Aliyev, “Analyzing Flooding Impacts on Rural Access to Hospitals and Other Critical Services in Rural Cambodia Using Geo-spatial Information and Network Analysis,” Policy Research Working Paper 9262, World Bank, Washington, DC, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3614143. 27 Initial multicriteria road segment selection was based on (i) flood risk (road damaged in the past five years? (Y/N)), (ii) donor coordination (road strip being financed by another donor? (Y/N)), (iii) disaster preparedness connectivity (evacuation route and access to higher ground), (iv) population served (2 km, disaggregated by poor), (v) social connectivity (schools/health centers along the road), (vi) economic connectivity (markets along road), (vii) viability (cost of road strengthening), and (viii) existing solid road base (already prepared substructure). 28 World Bank, Cambodia Poverty Assessment 2022: Toward a More Inclusive and Resilient Cambodia (Washington, DC: World Bank), https://openknowledge.worldbank.org/entities/publication/71c8cd7a-b28b-5688-ba89-5c95af5b4994. 29 ICR estimates based on the project endline survey. Page 16 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) percent), tuk-tuks (134 percent), and minibuses (264 percent), as compared to passenger cars (89 percent) and medium trucks (41 percent).30 40. Better quality of life and health. The project achieved improved quality of life and health through a variety of channels. For example, it led to reduced dust. Rural earthen roads routinely cause dust issues for the adjacent population, but these were significantly reduced by improved pavement. Among respondents to the satisfaction survey, 12 percent noted health benefits as well as reduced dust affecting exteriors and interiors of houses. The project also led to new property development. Greater mobility and increased traffic attracted private investment (in housing and businesses) nearby. At appraisal, the total number of houses along project-funded roads was 12,397. By closing, 581 houses, 269 shops, and 10 other buildings had been constructed along the project-funded roads across all regions.31 At the same time, it was noted that the rapid development could have unintended consequences, including adverse impacts on local water flow. An increase in land prices along the rehabilitated roads could also make housing less affordable in the future. 41. Sustainability and scale-up. There was strong ownership of the project at the central and local levels of government. Drawing on the lessons learned from the project, the World Bank approved a follow-on project, KH- SEADRM2, which complements KH-SEADRM and will be managed by the same PMU in MRD. The KH-SEADRM2 will finance the upgrading of 750 km of rural roads, including of 27 km carried over from KH-SEADRM. The improved capacity of the implementing agency and stakeholders, as well as operational systems developed under the project, was considered a key enabler of the successful implementation of the scaled-up road works, and consequently increased the volume of procurements and disbursements under KH-SEADRM2. The project also contributed to the strengthening of the national policy dialogue on resilient infrastructure and disaster risk finance in Cambodia.32 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME A. KEY FACTORS DURING PREPARATION 42. Short preparation time. The project was prepared in a short (10-month) time frame which did not allow for thorough review of all design aspects, for example, baselines and targets, as discussed. The project’s framework approach provided flexibility in the selection and design of road subprojects but also resulted in some shortcomings observed in the PDO and results indicators (see annex 1). 43. Coordination with the regional SEADRM projects. As part of the regional SEADRM initiative, the project needed to be coordinated with the SEADRM projects in Myanmar and Lao PDR. During preparation, the Government of Cambodia showed an interest in joining the SEADRIF and participating in disaster risk financing activities but at the same time was cautious about committing to outcomes without more information on the feasibility and impacts of the activities. For this reason, the disaster risk financing aspect was not included in the PDO, while PDO indicators were designed to align with other SEADRM projects. Subsequently, Component 2 (Financial Planning for Disaster Resilience, US$1 million) focused on providing technical assistance to the government to raise its awareness and strengthen its capacity for financial planning for disaster resilience over the long term. 30 Figures are from the KH-SEADRM1 project endline survey. 31 This includes Kratié, Kandal, Kampong Cham, Tboung Khmum, Stung Treng, and Siem Reap. 32 An example is the DRFS consultation workshop involving relevant national line ministries held on March 27, 2023. Page 17 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) 44. Readiness for implementation. The project prepared the necessary assessments and documents by the time of project negotiation, including the development of criteria for road selection and prioritization, initial safeguard documents, and Terms of Reference (ToRs) for technical designs. In addition, the lessons learned from a previous project in the country (the Typhoon Ketsana Emergency Reconstruction and Rehabilitation Project, P121075) helped in developing a climate resilience–focused technical design concept for rural roads. These preparation activities helped to sensitize MRD and strengthen its capacity. The selection of the final road segments was completed in February 2017 before Board approval and was followed by detailed designs, based on a rigorous prioritization process to ensure that the planned road subprojects were economically and socially feasible and sustainable.33 45. Appropriate selection of stakeholders. The institutional arrangements were designed to have a PMU under MRD responsible for the implementation of Components 1 and 3, while a PMU under the MEF was responsible for the implementation of Component 2, under the oversight of the Project Steering Committee. A program manager under the MRD PMU was appointed from MRD’s Department of Planning and Public Relations due to its strong convening power. The project’s comprehensive focus on climate resilience—spanning planning, implementation, and maintenance—necessitated strong ownership and wide buy-in by various departments. The MRD PMU successfully demonstrated its convening capacity by mobilizing relevant departments, including the Department of Finance and Supply, the Department of Roads, and the Department of Indigenous People, as well as the Environmental and Social Office and Provincial Rural Development Office. The MRD PMU further enhanced its capacity by adding 10 national staff and consultants, plus an international procurement expert. The MRD PMU also mobilized the RRAM project team, the PDRDs, and others in project preparation activities. MEF designated NBFSA as the implementing agency to develop the DRFS. 46. Risks and mitigation measures. The risk assessment and mitigation measures were generally appropriate. The project’s risk was rated substantial overall. Most of the identified risks were rated moderate, assuming that the proposed mitigation measures would be adequate. The risks related to governance and institutional capacity were deemed substantial, given the required coordination efforts for implementation of SEADRIF and the limited understanding on the concept of the climate-resilient road upgrading in the country. The fiduciary risk was rated high, considering the limited capacity of the PMU to duly comply with the financial management (FM) guidelines and the challenging context in terms of bidding for small rural infrastructure contracts. However, the mitigation measures, including capacity building and technical assistance activities, were able to strengthen the capacity of PMU and to establish the sustainable FM systems which were replicated in the follow-on project, KH-SEADRM2 (see Section IV for more details). B. KEY FACTORS DURING IMPLEMENTATION Factors Subject to Government Control 47. Commitment, leadership, and agility. MRD demonstrated strong commitment and leadership throughout project implementation and proactively encouraged its staff to participate in capacity-building and training activities. While these factors facilitated implementation, other factors initially slowed it, including unclear roles and responsibilities, along with weak contract enforcement by the detailed design and supervision (DDS) firms and contractors (e.g., there were issues with engaging key staff, such as the team leader; with ensuring regular and reliable reporting; and with carrying out timely prior review of implemented variations). The rapidly changing operating environment of rural Cambodia, characterized by ongoing land use changes, also necessitated continuous course correction. The operationalization of the OPBRC faced numerous hurdles, including the lack of localization and enabling regulatory 33Bank-executed trust fund technical assistance was carried out for the three SEADRM projects to assess their sustainability, socio-environmental impacts, and economic feasibility. Page 18 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) environment and the high transaction cost of monitoring and reporting. The MRD-PMU continued to learn and adapt to these circumstances; the project financing was disbursed on time, and all outcome indicators were achieved by the closing date of March 31, 2023. 48. Coordination and engagement. Under Component 2, the appointment of the MEF-PMU took longer than expected due to internal MEF processes and the novelty of donor-financed projects for the General Department of Financial Industry (GDFI). Once the PMU was established within GDFI under MEF in March 2019, steady progress was made on key activities for the SEADRIF feasibility studies. However, on July 14, 2021, GDFI was dissolved and a new NBFSA was established, which required a new institutional arrangement for the project. These institutional changes and consecutive transition arrangements resulted in implementation delays; but by project closing the new PMU was able to successfully deliver key activities, such as the DRFS and feasibility studies for SEADRIF. Factors Subject to World Bank Control 49. Mid-Term Review (MTR). The December 2019 MTR reviewed overall implementation progress and developed an action plan. MRD, MEF, and the World Bank agreed that (i) the Results Framework and the indicators needed to be revised, given the increased cost of civil works34 and the delayed procurement processes; and (ii) these changes required a restructuring. The restructuring was implemented efficiently and effectively, leading to the successful completion of the project. During the restructuring, revision of the PDO to include the disaster risk financing aspect was considered, but it was ultimately rejected given the small amount of financing for Component 2 (US$1 million, 1.6 percent of the total financing) and given the significant delay in DRFS development. 50. Adequacy of supervision. The World Bank task team provided close and consistent implementation support to the project throughout the implementation period. Despite the relatively high turnover of World Bank staff, transition arrangements were generally smooth, with only minor difficulties (as acknowledged by the implementing agencies). Implementation reports, including the Aide Memoires and Implementation Status and Results Reports (ISRs), were well prepared every six months, delivered in a timely manner, and included proactive and practical measures to address identified challenges. The World Bank advised the implementing agencies appropriately on the M&E modifications and on speeding up procurement. Factors Outside the Control of Government and/or Implementing Entities 51. Impact of the COVID-19 pandemic. The first COVID-19 case was reported in Cambodia on January 27, 2020. Border crossings with Vietnam, Thailand, and Lao PDR were closed in March 2020, and entry from the four most affected European countries and the United States was banned. The bans were lifted in late May 2020, although strict entry requirements remained. These restrictions significantly delayed mobilization of labor for civil works and holding of workshops, consultations, and meetings. Two of the three procurement packages for civil works made no progress for five months in 2021 because of rising raw material costs, slow payment of Interim Payment Certificates (IPCs), and limited mobility. 52. Flooding within the project area. Cambodia experienced two major floods during project implementation. The 2019 flood impacted the designs for the selected road sections in the provinces of Kampong Cham and Tboung Khmum. In response, alternative designs were provided by MRD, and relevant safeguards documentation (including 34The MTR noted that the total cost for package 2 was US$17,259,658, which is 6.74 percent higher than the originally estimated cost of US$16,170,000, and that the total cost of package 3 was US$29,753,588, which is 3.6 percent higher than the originally estimated cost of US$28,721,000. Page 19 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Environmental Management Plans) was revised. The 2022 floods partially damaged some of the completed project roads in Kampong Cham, Tboung Khmum, Kratié, and Siem Reap. IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME A. QUALITY OF MONITORING AND EVALUATION (M&E) Rating: Substantial M&E Design 53. The M&E system was designed with a simple set of three PDO indicators and seven intermediate indicators. As laid out by the ToC, the project intervention logic was clear, and the M&E design, informed by appropriate technical studies, effectively captured aspects of climate resilience, connectivity, and institutional capacities, including disaster risk finance. The common intervention logic under the regional SEADRM projects guided the list of PDO indicators under the project. The baseline data collection informing the selection of targets was generally effective, except for minor issues related to the numbers of schools and hospitals, which were later revised (see annex 1). The project also aimed to foster the M&E capacity of MRD and MEF through activities such as the strengthening of sustainable asset management for rural roads and other training programs. M&E Implementation 54. The M&E system improved during implementation.35 M&E reporting was conducted in a timely manner with a generally sound methodology for data collection. Restructuring provided a further opportunity to improve the M&E indicators. Seven of the 10 initial indicators were revised. Four revisions were made to improve the clarity of definitions, and three were made to adjust targets, in response either to a reduction in scope or to improved collection of data. In addition, six new indicators were added to measure additional structural aspects of rural road climate resilience, stakeholder engagement, and capacity building. Of the 16 results indicators, one (number of rehabilitated structures) continued to reflect a minor problem with baseline and end target definitions at the time of closing (see annex 1). During project implementation, the originally envisioned M&E coordination across MRD and MEF was also deemed unnecessary, given that the component designs were generally separate. The periodic inter-ministry M&E coordination meetings were therefore discontinued. 55. A remote monitoring system was piloted during the COVID-19 travel restrictions, leading to an improved M&E system and overall strengthening of MRD’s M&E capacity. MRD and PDRD staff were trained in mobile -based data collection. This method was used to collect data on the climate vulnerability of approximately 4,700 km of rural roads included in the RRAM system. Road user satisfaction surveys and measurements of IRI were also completed using mobile data collection in 2022. M&E Utilization 56. The data collected through the M&E system informed monitoring and refinement of the indicators, as well as the design of the subsequent project, KH-SEADRM2. The PMUs worked closely with the provincial project support teams and the task team to identify and address challenges over the course of the implementation, based on the results of the progress reports. Progress information helped the World Bank to prepare implementation documents, including 35 Progress monitoring for design and civil works implementation faced challenges because there were no agreed monitoring systems or reporting formats, and no MIS specialist was participating. Stakeholders achieved a common understanding of relevant requirements in the last 18 months of the program. Page 20 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Aide Memoires, Management Letters, ISRs, the MTR, and this ICR. The M&E system developed under the project was replicated in KH-SEADRM2 and the Cambodia Sustainable Landscape and Ecotourism Project (P165344). Justification of Overall Rating of Quality of M&E 57. The project’s M&E is rated substantial. The M&E design effectively measured the project’s overall progress toward the PDO. Minor design shortcomings were refined during the implementation stage. B. ENVIRONMENTAL, SOCIAL, AND FIDUCIARY COMPLIANCE 58. Safeguards. Environmental and social risk management performance complied with the Environmental and Social Management Framework (ESMF). At appraisal, the following safeguard policies were triggered: OP/BP 4.01: Environmental Assessment; OP/BP 4.04: Natural Habitats; OP/BP 4.10: Indigenous Peoples; OP/BP 4.11: Physical Cultural Resources; and OP/BP 4.12: Involuntary Resettlement.36 The project was classified as Environmental Category B – partial assessment. An Environmental and Social Management Plan (ESMP) for specific subprojects, Resettlement Policy Framework, Environmental Code of Practice, and Ethnic Group Development Framework were prepared by the government and attached to the ESMF; the ESMF was disclosed in Cambodia and at the World Bank on December 1, 2016. No new safeguard policies were triggered during project implementation. 59. Implementation of safeguards instruments. The Environmental and Social Office/PMU prepared the needed instruments for the project, including site-specific ESMPs for specific subprojects, and developed the project information booklet in Khmer and English. The materials were discussed with and disseminated to relevant stakeholders, including contractors, resident engineers, workers, provincial safeguards focal points, and the communities. ESMPs were incorporated in the bid documents. Orientation sessions were carried out before the commencement of each civil works package. The ESMPs were implemented with strong MRD support, although some gaps were identified in some civil works packages, especially during and after the COVID-19 pandemic. No major safeguard issues related to the triggered safeguard policies were found during project implementation. Among the areas where gaps were found were health and safety of workers, personal protective equipment, dust control, occupational health, and road safety signs. Inclusion of needed items in the bid packages for price quotation from bidders would have helped to ensure that adequate budget was planned for ESMP implementation. 60. Sexual exploitation abuse/sexual harassment (SEA/SH). The PMU/safeguards focal points reported that awareness raising on GBV among workers and affected communities was carried out during the early years of project implementation. The efforts to sensitize workers on GBV issues were hampered by the COVID-19 pandemic and related travel restrictions. Implementation of SEA/SH measures was difficult because many rural workers were intermittent or seasonal. The project trained site engineers (who were part of the supervision consultant team) to ensure that newly recruited workers signed the code of conduct. In addition, the World Bank offered technical assistance for developing an SEA/SH Action Plan, as well as for revising the template code of conduct to align with the World Bank’s Good Practice Note on SEA/SH. There were no relevant issues recorded under the project. 61. Grievance Redress Mechanism (GRM). The project GRM functioned well. In most areas where civil works were carried out, the project engaged with communities before civil works began. Environmental and social issues were discussed and project information and information on basic grievance procedures were distributed to the relevant stakeholders. In addition, the project developed grievance logbooks and recorded 13 grievances. These were mostly minor impacts 36Note that the involuntary resettlement plan prepared and implemented under the project is considered a good practice and has been shared in other regions, such as Europe and Central Asia. Page 21 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) caused by community disturbance (i.e., noise, dust, impaired access to houses/businesses) during construction. All grievances were resolved, and none are pending. 62. Procurement. Over the course of implementation, 40 procurement packages for civil works, goods, and services amounting to US$57.51 million were completed under Components 1 and 3. Component 2 included six procurement packages totaling US$1 million. All planned activities under the project were completed; goods, works, and consulting services were delivered/completed before the project closing date. In general, procurement was conducted in accordance with the procedures and rules specified in the Financing Agreement. Two main issues were identified during implementation: (i) significant delays in the recruitment of the DDS consultant firm, which affected civil works procurement at project start-up; and (ii) inadequate contract management for high-value procurement contracts. The DDS firm was brought onboard more than a year after credit effectiveness. The World Bank provided procurement training and hands-on support to the PMU to ensure compliance with agreed procurement rules and regulations and to minimize delays. During implementation, procurement performance was mostly rated moderately satisfactory, but was upgraded to satisfactory in March 2021 on completion of the procurement process for the main procurement packages. 63. Procurement arrangements. Clear accountability and responsibilities were established in line with the provisions of the government’s standard operating procedures. The assigned procurement officer had knowledge of World Bank procurement processes and experience gained from hands-on work as well as training provided by the World Bank. 64. Financial management. Capacity-building support to the PMUs during implementation improved their capacities, which also contributed to improved capacity of MRD and MEF more generally. Three internal audit workshops were held for participants from MRD’s internal audit department. Training workshops on the FM manual and FM procedures promoted the use of the FM manual. The interim financial reports were generally submitted in a timely manner. The fiduciary structures and institutional mechanism developed under the project were used without major modifications for the follow-on project, KH-SEADRM2. All audit reports were submitted in a timely manner and were unqualified. All audit observations were addressed, without any pending issues. C. BANK PERFORMANCE Rating: Satisfactory Quality at Entry 65. Despite the relatively short preparation time, World Bank staff guided the identification and preparation of the project effectively. The project was prepared in 10 months and required coordination with two additional SEADRM projects in other Southeast Asian countries. Despite the time constraint, the project design was well aligned to Cambodia’s DRM and rural development agenda and to the needs of the implementing agencies. The technical assistance funded by the Global Facility for Disaster Reduction and Recovery (GFDRR) informed the project design in key aspects, such as the use of bioengineering, road pavement maintenance options, investment prioritization, and development of the near-real-time flood impact assessment, which informed the component on disaster risk financing.37 The project’s original Results Framework and environmental and social safeguards assessments were also informed by these studies. 66. Political and governance, institutional capacity, and fiduciary risks were deemed substantial, and appropriate risk mitigation measures were identified during project preparation. These included appointing adequate numbers of 37 TF0A0408 Developing Strategic Plans for Disaster Risk Financing, Risk Reduction and Hydromet Services in South East Asia. Page 22 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) staff, clarifying capacity-building needs, ensuring that the code of ethical conduct and agreed operating procedures were followed to curtail fiduciary risk, arranging for technical assistance to enhance institutional capacity, and engaging with stakeholders and coordinating across ministries to reduce political and governance risk. Quality of Supervision 67. The World Bank fielded 12 implementation support missions in all. The World Bank maintained adequate staffing, with an appropriate mix of technical experts able to provide needed support on rural resilience, disaster risk financing, and fiduciary and safeguards aspects. Hands-on and proactive approaches taken during implementation (for example, hands-on technical support for the preparation of the DDS firm’s draft ToR) were helpful in expediting project implementation. The World Bank’s innovative approach to technical supervision, including use of mobile-based data collection and monitoring, also helped facilitate project implementation during the COVID-19 pandemic. Project implementation was further facilitated by the accessibility of World Bank staff across different sectors, including transport. In addition to providing implementation support during official missions, Bank staff were available through virtual meetings, emails, and mobile apps. 68. The World Bank provided timely and frequent capacity-building sessions on a variety of topics, including climate and disaster risk management, safeguards, fiduciary, and monitoring and evaluation. The World Bank provided support for a total of 22 capacity-building sessions for 797 cumulative participants, many of whom attended multiple sessions. The sessions covered topics such as FM, safeguards screening tools, performance-based contracts, auditing, and risk management, among others. The capacity-building opportunities provided by the World Bank, combined with PMU’s strong ownership and effort to involve wider stakeholders (PDRDs, contractors, etc.), fostered institutional capacity and sustainability of project impact. 69. The World Bank kept a close eye on project progress and took a proactive stance to course correct as needed. As noted previously, unclear roles and responsibilities, along with weak contract enforcement by DDS firms and contractors, initially slowed the implementation of civil works, while updates in design choices increased their cost. The World Bank kept abreast of these implementation challenges, provided additional technical supervision as needed, and made timely course corrections (e.g., restructuring). These steps led to significant improvements in project implementation. 70. In most cases, staff handover was managed appropriately, with sufficient time allocated for onboarding of new team members. Justification of Overall Rating of Bank Performance 71. The World Bank’s overall performance is rated satisfactory. Its efforts were instrumental to the project’s achievement of its targets on time and within the allocated budget. D. RISK TO DEVELOPMENT OUTCOME Technical Risk 72. Because climate resilience of rural roads is a nascent concept in Cambodia, the technical performance of the rehabilitated roads will significantly affect public acceptance; hence the sustainability of the project outcome is crucial. As climate and land use changes (e.g., deforestation, housing and business development) continue to alter landscape and water flow, thereby increasing hazard exposure, the project roads increasingly face the risk of floods and erosion. Appropriate maintenance and improved data collection on future damage—both materialized and avoided—are necessary to demonstrate the effectiveness of climate-resilient road design. Simultaneously, continued Page 23 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) investment in road safety awareness, along with collection of accident data, will be needed to ensure that the benefits of project interventions are sustainable. Disaster Risk 73. The project areas are highly disaster prone and subject to ongoing challenges, especially under climate change. Floods in 2022 demonstrated that the project-funded roads continue to face a high risk of disaster. Riverbank erosion and collapse necessitated remedial works along TK2, KC2, and KR4 road sections prior to the close of the project.38 Improved disaster risk–related knowledge and capacity among MRD/PDRD staff, the contractor, and local communities will help mitigate such risks. Discussions are ongoing on ways to improve MRD’s capacity to swiftly deliver emergency repairs within the KH-SEADRM2 project. The KH-SEADRM2 project will also provide DRM training as part of the institutional strengthening on DRM. Financial Risk 74. The increase in the length of paved rural roads translates to an increase in overall O&M costs. The available annual budget for rural road maintenance is low relative to the maintenance needs, and this gap poses a risk to the appropriate maintenance and performance of climate-resilient roads. V. LESSONS AND RECOMMENDATIONS 75. Systematic capacity building of the PMU is essential to facilitate new project preparation and implementation, as well as to sustain positive project impacts over the long term. With the client’s strong commitment, the KH-SEADRM project was able to leverage technical and financial resources for the successful preparation of the KH-SEADRM2 project. Capacity building provided on technical, fiduciary, and safeguards aspects was crucial to the speedy identification, appraisal, and approval of KH-SEADRM2, which took approximately 10 months. The availability of the KH-SEADRM DDS firm ensured that the technical designs of carried-over road sections were properly completed, and the first package of the KH-SEADRM2 commenced as soon as supervising consultants were on board. The ICR preparation for the KH-SEADRM also coincided with the mobilization period for key staff and firms, allowing the identified lessons learned to be incorporated immediately in the implementation of technical assistance and civil works components of the KH-SEADRM2. 76. Successfully implementing an innovative initiative such as SEADRIF requires a demand-driven project preparation process—one that allows the government to make a fully informed decision and subsequently assume ownership of the project. The project, and in particular the implementation of Component 1, benefitted from strong ownership by MRD. Drawing upon a rich set of information provided by technical assistance, MRD took the lead in mobilizing the wider stakeholders in the project design, prioritizing staff capacity building, and addressing project implementation challenges effectively. However, the establishment of SEADRIF under Component 2 was initially driven at the regional level, with insufficient information on the feasibility and impacts of the activity. To address the gap in knowledge and ownership, considerable resources had to be allocated to sensitization, which caused a delay in implementation. By closure, such efforts had significantly improved MEF’s understanding and ownership of Component 2, leading to the development of the DRFS. As this case demonstrates, reserving sufficient time and resources to address timely and salient demands by clients can help to ensure strong ownership. 38 The remedial works along TK2 and KC2 will be carried out as part of KH-SEADRM2. Page 24 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) 77. Because there is no one-size-fits-all design solution for climate-resilient rural roads, a risk-informed approach is necessary. The project developed a set of climate-resilient design options for different rural roads across provinces (see table 2). A design option was then carefully selected and applied to each road section based on the results of the disaster risk assessments conducted as part of the project and the lessons learned from previous projects.39 This risk-informed approach can be replicated in other similar projects. Still, better integration of various aspects that contribute to climate resilience, such as resilience of houses and roads, functional drainage systems, and community-led climate adaptation, remains an important area for further work. 78. A functional O&M mechanism plays a key role in sustaining climate resilience of rural roads. The project supported the PMU to recognize the importance of the maintenance system and to pilot the performance- based contract as a measure to incentivize effective maintenance of the upgraded rural roads. At closure, however, the maintenance budget is still extremely limited and has been mostly used for provincial or national rural roads, leaving out local rural roads that connect communities. To enhance the rural road maintenance system in this challenging context, it is of importance to make a collective and continuous effort among all stakeholders, including multiple sectors at the World Bank, the governments at national and local levels, and contractors. 79. Implementation of OPBRC requires longer preparation, adequate risk allocation and market outreach. The size of the pilot for rural roads was too small (i.e., it applied to only 10 percent of the total project-funded roads) to attract international contractors, while local contractors did not have adequate experience on this contract modality. Besides, all stakeholders, including the PMU and the supervision consultant, were not fully ready for this new approach, resulting in some shortcomings in the pilot contract design. For example, the risks related to overloading trucks, unexpected extreme climate events and their impacts, balancing the costs of civil works and maintenance phases as well as the proper duration of the maintenance phase for surfacing specific roads, are critical factors for the risk allocation between the private and the public sectors. However, these risk factors were not well considered in the contract. Also, the contractors under the OPBRC approach should better acknowledge and fully own the technical designs of road, while the supervision team should ensure stronger commitment and efforts so that emerging risks are proactively identified and mitigated. With due consideration of these lessons, the OPBRC approach can contribute greatly to resilient and sustainable asset improvement and preservation with expanded role for the private sector in road maintenance. 80. As Cambodia’s rural areas are undergoing significant socioeconomic and environmental changes, agile approaches and systematic capacity building were necessary for successful project implementation. In the face of the dynamic changes in local land use, increases in housing development, and climate/water flow changes, timely decisions on design updates and contract variations were necessary to ensure the climate resilience of the upgraded roads during project implementation. At the same time, for effective implementation of safeguards measures, procedural and budgetary requirements needed to be understood and complied with by all parties involved, including the PMU, PDRDs, World Bank staff, the DDS firm, and contractors and subcontractors. The clarity on roles and responsibilities that was enabled through appropriate contract clauses and onboarding processes, as well as continued capacity building and monitoring at all levels, contributed to this result. Such project-level capacity building must be further underpinned by overall institutional strengthening at the sectoral level to ensure that a strong enabling environment exists for the climate resilience of rural connectivity. . 39 This includes the Typhoon Ketsana Emergency Reconstruction and Rehabilitation Project. Page 25 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS A. RESULTS INDICATORS A.1 PDO Indicators Objective/Outcome: To improve climate-resilient rural road connectivity in select provinces Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of beneficiaries Number 0.00 340,000.00 325,000.00 328,910.00 benefitting from all-season rural roads 31-Mar-2017 31-Mar-2017 28-Aug-2020 01-Nov-2021 of which are women Percentage 0.00 50.00 50.00 Comments (achievements against targets): This indicator has surpassed the revised target and was clearly designed. The method was properly adjusted reflecting the increased cost of civil works, and 27 km of the descoped 40 km was carried over to the follow-on project KH-SEADRM2 (P177185). Objective/Outcome: To enhance the Government’s capacity for financial planning for disaster resilience Page 26 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Public financial investment Yes/No No Yes Yes planning takes into account disaster and climate risks 31-Mar-2017 31-Mar-2017 31-Mar-2023 Comments (achievements against targets): The indicator has been achieved and was revised for greater clarity (“financial” added). The indicator would have been clearer if it had specified to what extent public financial investment planning incorporated disaster resilience. A better option would have been “number of financial investment plans updated under the Project to incorporate disaster resilience.” Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Cambodia has information Yes/No No Yes Yes and capacity to access sovereign disaster risk 31-Mar-2017 31-Mar-2017 31-Mar-2023 insurance Comments (achievements against targets): This is the common indicator for the three SEADRM projects to measure status of SEADRIF, which has been achieved. Page 27 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) A.2 Intermediate Results Indicators Component: Resilient Rural Corridors Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Length of rural roads Kilometers 0.00 290.00 250.41 252.64 upgraded 31-Mar-2017 31-Mar-2017 14-Aug-2020 31-Mar-2023 Comments (achievements against targets): This indicator has surpassed the end target and was clearly designed. The target length of rural roads upgraded was reduced from 290km to reflect the increased costs of civil works packages. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of schools and Number 0.00 300.00 109.00 110.00 health facilities connected by resilient rural roads 31-Mar-2017 31-Mar-2017 01-Nov-2021 Comments (achievements against targets): This indicator has surpassed its end target and was clearly designed. During the restructuring, the result target was refined based on the up-to-date data. Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Formally Revised Completion Page 28 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Target Rural road investment plan Number 0.00 6.00 6.00 developed in project provinces, incorporating 31-Mar-2017 31-Mar-2017 31-Mar-2023 vulnerability information Comments (achievements against targets): This indicator has been achieved. Definition of the indicator was not fully clear at the appraisal, but the unit and description were refined during the restructuring. Each target province has developed a rural road investment plan. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Proportion of beneficiaries Percentage 0.00 60.00 99.10 satisfied with road condition, safety, and accessibility of 31-Mar-2017 31-Mar-2017 31-Mar-2023 rehabilitated and maintained roads of which women Percentage 0.00 50.00 100.00 Comments (achievements against targets): This indicator has surpassed its end target. The indicator was slightly refined during the restructuring to improve clarity (“climate resilience” revised to “accessibility”). Page 29 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Improvement of road Number 15.00 4.50 3.78 condition 31-Mar-2017 28-Aug-2020 31-Mar-2023 Comments (achievements against targets): This indicator has been achieved. This new indicator was added during the restructuring to measure roughness of upgraded roads. It is based on IRI using RoadLab Pro application at the closing. The score ranges from 0 to 20, and is considered good if below 4. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Increase of traffic volume Percentage 0.00 5.00 56.70 31-Mar-2017 28-Aug-2020 31-Mar-2023 Comments (achievements against targets): This indicator has significantly surpassed its end target. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of rehabilitated and Number 521.00 955.00 526.00 Page 30 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) additional infrastructure 31-Mar-2017 28-Aug-2020 31-Mar-2023 structures to improve disaster resilience Comments (achievements against targets): This indicator has achieved its intended target, but the baseline and end target were inaccurately defined due to double counting of existing and proposed new structures. The ICR mission found that the result can’t be measured against the end target of 955, and the baseline should have been set at 0 given that the definition of indicator is to count the number of structures improved under the project. So, the actual result is 526 including new installed and replaced structures (14 bridges, 60 box culverts, 365 pipe culverts) and 7 repaired structures (5 bridges, 2 box culverts), 80 existing structures retained. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of government staff Number 25.00 100.00 797.00 who participated in capacity- development training related 31-Mar-2017 31-Mar-2017 31-Mar-2023 to project activities Of which women Percentage 0.00 30.00 30.00 Comments (achievements against targets): This indicator has surpassed its end target. The total number of participants in all capacity-development training at national and provincial level was 797. Indicator Name Unit of Measure Baseline Original Target Formally Revised Actual Achieved at Page 31 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Target Completion Grievances registered related Percentage 0.00 90.00 100.00 to delivery of project benefits addressed (%) 31-Mar-2017 31-Mar-2017 01-Nov-2021 Comments (achievements against targets): This indicator has surpassed its end target and was clearly designed. There are 10 grievances officially recorded in the log book, and all cases have been solved. There are many more verbal requests related to dust control and others which have been solved by contractor and site engineers at the time of request. Component: Financial Planning for Disaster Resilience Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion National disaster risk finance Yes/No No Yes Yes strategy developed 31-Mar-2017 31-Mar-2017 31-Mar-2023 Comments (achievements against targets): This indicator has been achieved. The indicator could have been more clearly designed. The development of a national document comprises multiple steps: drafted; reviewed; officially approved; disclosed to the public; and implemented. The indicator should have clarified which step was targeted. Under the Project, the strategy has been drafted and reviewed by PMU. Indicator Name Unit of Measure Baseline Original Target Formally Revised Actual Achieved at Page 32 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Target Completion Options for mainstreaming Yes/No No Yes Yes disaster and climate resilience into public 31-Mar-2017 31-Mar-2017 31-Mar-2023 investment planning developed Comments (achievements against targets): This indicator has been achieved. However, the definition of this indicator is not fully clear. It was defined as “Guideline, which outlines a set of actions, tools and methodologies for MEF to ensure that disaster and climate resilience is recognized in development plans, investment programs, and public investment projects.” Although relevant activities have been achieved, it is unclear what were counted as the “options” developed under the Project. Also, the unit could have changed from Y/N to number of options developed. Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of government staff Number 0.00 150.00 150.00 and other stakeholders who participated in consultations 31-Mar-2017 28-Aug-2020 31-Mar-2023 and training on disaster risk financing and insurance topics Comments (achievements against targets): This indicator has been achieved and was clearly defined. Page 33 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Formally Revised Actual Achieved at Indicator Name Unit of Measure Baseline Original Target Target Completion Number of technical studies Number 0.00 3.00 3.00 related to disaster risk financing and insurance 31-Mar-2017 28-Aug-2020 31-Mar-2023 prepared Comments (achievements against targets): This indicator has been achieved. The three studies include: (i) Legal Feasibility Study for the Southeast Asia Disaster Risk Insurance Facility; (ii) Disaster Risk Financing Gap and Insurance Product Analysis for the Southeast Asia Disaster Risk Insurance Facility (SEADRIF) Catastrophe Risk Pool, and Additional Scope (for public assets); and (iii) Mainstreaming Disaster and Climate Risk Management into Investment Decisions. These studies have helped PMUs and stakeholders to set up next steps and informed local development plans. Page 34 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) B. KEY OUTPUTS BY COMPONENT Objective/Outcome 1: Improved climate resilience of rural roads 1. Number of beneficiaries benefitting from climate-resilient rural roads Outcome Indicators 2. Public financial investment planning takes into account disaster and climate risks 1. Rural-road investment plans developed in project provinces, incorporating vulnerability information 2. Length of rural roads upgraded Intermediate Results Indicators 3. Proportion of beneficiaries satisfied with road condition, safety, and accessibility of rehabilitated and maintained roads 4. Improvement of road condition 1. 328,910 people have benefitted from all-season roads (surpassed end target) 2. All participating provinces (6) have developed their rural investment plans informed by vulnerability data Key Outputs by Component 3. 252.65 km of rural roads have been physically upgraded (surpassed end target) (linked to the achievement of Objective/Outcome 1) 4. 99 percent of surveyed people were satisfied with upgraded road conditions 5. The roughness of the project-funded roads has been significantly reduced by 73 percent Objective/Outcome 2: Strengthened connectivity across rural communities Outcome Indicators 1. Number of beneficiaries benefitting from all-season rural roads 1. Number of schools and health facilities connected by resilient rural roads 2. Increase in traffic volume Intermediate Results Indicators 3. Number of rehabilitated and additional infrastructure structures to improve disaster resilience Key Outputs by Component 1. 328,910 people have benefitted from improved connectivity by using all- (linked to the achievement of Objective/Outcome 2) seasons roads Page 35 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) 2. 110 schools and hospitals have been connected to resilient rural roads 3. The traffic volume has increased by 56.7 percent 4. 526 infrastructure structures have been rehabilitated or constructed ensure the functionality of the upgraded road surfaces Objective/Outcome 3: Improved capacity of the government for financial planning for disaster resilience 1. Cambodia has information and capacity to access sovereign disaster risk Outcome Indicators insurance 1. National disaster risk finance strategy developed 2. Options for mainstreaming disaster and climate resilience into public Intermediate Results Indicators investment planning developed 3. Number of technical studies related to disaster risk financing and insurance prepared 1. The Government signed an MoU on the establishment of SEADRIF on December 14, 2018 Key Outputs by Component 2. The national disaster risk finance strategy has been drafted and reviewed by (linked to the achievement of Objective/Outcome 3) PMU 3. 3 technical studies on disaster risk financing and insurance have been developed Page 36 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) ANNEX 2. BANK LENDING AND IMPLEMENTATION SUPPORT/SUPERVISION A. TASK TEAM MEMBERS Name Role Preparation Henrike Brecht, Olivier Mahul, Robert Curle Jesse Reid Task Team Leader(s) Sreng Sok Procurement Specialist(s) Reaksmey Keo Sok Financial Management Specialist Louise F. Scura Team Member Martin Fodor Team Member Frederick Yankey Team Member Manush A. Hristov Counsel Sybounheuang Phandanouvong Social Specialist Veasna Bun Team Member Martin Henry Lenihan Team Member Chanin Manopiniwes Team Member Simon B. Chenjerani Chirwa Team Member Carmenchu D. Austriaco Team Member Sombath Southivong Team Member China Chhun Team Member Aristeidis Panou Counsel Zuzana Stanton-Geddes Team Member Makathy Tep Social Specialist Benedikt Lukas Signer Team Member Page 37 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Thu Hang Vu Team Member Makoto Suwa Team Member Brendan Ming Hui Chia Team Member Hideaki Hamada Team Member Supervision/ICR Vica Rosario Bogaerts Task Team Leader(s) Sereyvattana Chan Procurement Specialist(s) Kyemon Soe Financial Management Specialist Pheara Lek Procurement Team Junko Mochizuki Team Member Monyrath Nuth Team Member Dixi Mae Mengote Quah Team Member Socheat Ath Procurement Team Khin Aye Yee Team Member Thu Hang Vu Team Member Sophy Ea Environmental Specialist Makathy Tep Environmental Specialist Keiko Saito Team Member Ratchada Anantavrasilpa Team Member Sadig Aliyev Team Member Adu-Gyamfi Abunyewa Procurement Team Carmenchu D. Austriaco Team Member Jun Zeng Social Specialist Sophear Khiev Team Member Veasna Bun Team Member Mei Wang Counsel Page 38 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) B. STAFF TIME AND COST Staff Time and Cost Stage of Project Cycle No. of staff weeks US$ (including travel and consultant costs) Preparation FY17 23.195 136,192.32 FY23 0 122.32 Total 23.20 136,314.64 Supervision/ICR FY17 0 248.43 FY18 18.747 122,330.90 FY19 33.744 271,003.15 FY20 30.753 265,637.61 FY21 46.518 372,664.11 FY22 37.789 369,342.54 FY23 24.882 312,616.24 FY24 3.572 24,048.26 Total 196.01 1,737,891.24 Page 39 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) ANNEX 3. PROJECT COST BY COMPONENT Amount at Approval Actual at Project Components Percentage of Approval (US$M) Closing (US$M) Resilient Rural Corridors 58.00 55.69 96% Financial Planning for 1.00 0.82 82% Disaster Resilience (TF) Project Management 2.00 4.54 227% Contingent Emergency 0 0 0 Response Component Total 61.00 61.04 100% Reference: IFR Q2- April to June 2023 for IDA and TFA4488- Client Connection dated Sept 22, 2023. Page 40 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) ANNEX 4. EFFICIENCY ANALYSIS Economic Analysis at Appraisal 1. Cost-benefit analysis was conducted at the time of appraisal for Component 1 (US$58 million) for the planned upgrading of 290 km of rural roads. As shown in figure A4.1, the major economic benefits identified included (i) avoided losses, (ii) economic potential, and (iii) development co-benefits. Avoided losses included avoided/reduced road reconstruction from major disasters, avoided annual maintenance costs (from recurrent flooding), and avoided income loss (or income gain) from avoided disasters. Economic potential as an increase in land value was excluded in the quantification exercise due to the difficulty of obtaining reliable data. Development co-benefits included reduced vehicle operating costs due to improved road conditions, travel time saving benefits to passengers, and improved health due to reduced dust. Table A4.1 reports the economic internal rate of return (EIRR) and net present value (NPV) for the base case and sensitivity analyses as estimated at appraisal. Figure A4.1. Cost and benefit categories included in the economic analysis at appraisal Note: IRI = International Roughness Index. Page 41 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Table A4.1. Results of cost-benefit analysis at project appraisal and post-project NPV (2016 US$ EIRR million) Project appraisal Base case: 20-year project period, 10% discount rate, standard conversion factor 0.9 35.4 % 99.73 Sensitivity analysis 1: Investment cost increases by 20% 30.3 % 91.00 Sensitivity analysis 2: Cost increases by 20%, benefit reduced by 20% 24.7 % 62.33 Sensitivity analysis 3: Share of population affected reduced by 50 % 29.5 % 74.35 Sensitivity analysis 4: AADT reduced by 20% 32.2 % 82.98 Post-project Base case: 20-year project period, 10% discount rate, standard conversion factor 0.9 43.4% 229 Note: AADT = annual average daily traffic; EIRR = economic internal rate of return; NPV = net present value. Economic Analysis at Completion 2. The economic analysis at completion focused on cost-benefit analysis of the major civil works (upgrading of 252.6 km of road at a total cost of US$53.4 million) completed under Component 1. The residual project expense incurred on completion of all planned civil works was excluded in this post-project economic analysis due to the difficulty in obtaining reliable benefit information, including for minor remedial works that responded to the 2022 floods. 3. The economic analysis at project completion followed as closely as possible to the original cost-benefit analysis methodology used at appraisal, updating data where available. All investment-related costs were updated based on the expenditures incurred, including the observed average upgrading cost of US$199,811/km and design and supervision cost of US$2.9 million. In order to estimate post-project benefits, key parameters were updated based on the endline survey, including the number of beneficiaries (328,910 people as opposed to 340,000 assumed at appraisal), the annual average daily traffic (AADT) (2,542.6 vehicles/day as opposed to 746 vehicles/day in 2016, with an annual increase of 5 percent assumed at appraisal), and the post-project International Roughness Index (IRI) value (3.78 as opposed to 5 assumed at appraisal). The hourly wage rate was updated per minimum wage in 2023 (US$8.81/hour in 2016 dollars as opposed to the US$6.40/hour assumed at appraisal).40 The average speed of traffic was based on the final road designs (60 km/h as opposed to the 58 km/h assumed at appraisal). Table A4.1 shows the breakdown of economic benefits associated with the project. 4. The post-project cost-benefit analysis yields an EIRR of 43.4 percent, substantially higher than the appraisal stage EIRR of 35.4 percent. The post-project NPV of US$229 million is likewise higher than the appraisal NPV of US$99.7 million. The observed increment in economic efficiency stems mainly from the observed large increase in the AADT. The effect of the AADT update is clearly visible in figure A4.2, where an update made for 2023 significantly improved post-project economic benefits. The increments are especially visible for the reduced vehicular operating costs and reduced travel time, both of which are a function of AADT. 40 Long Kimmarita, “Workers’ Monthly Minimum Wage for 2023 Raised to $200,” Phnom Penh Post, September 21, 2022, https://www.phnompenhpost.com/national/workers-monthly-minimum-wage-2023-raised-200. Page 42 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Figure A4.2. Estimated post-project economic benefits associated with rural road reconstruction Page 43 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) ANNEX 5. BORROWER, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS 1. The client duly reviewed the draft ICR and sent their comments to the World Bank on August 4, 2023. Overall, the client was agreed with the storyline of the draft ICR. Their comments were limited to updates to some financial figures on page 7,8, and 41 and a correction of the final number of upgraded structures on page 13. There are no further details for inclusion in this Annex. Page 44 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) ANNEX 6. SUPPORTING DOCUMENTS Table A6.1 Project documents reviewed for ICR Document name Document number ISR- July 23, 2017 ISR #1 Aide Memoire 1 – September 4–7, 2017 ISR #2 Aide Memoire – 2, January 29–February 2, 2018 ISR – March 1, 2018 Aide Memoire 3 – June 11–14, 2018 ISR #3 Aide Memoire 4 – September 24–28, 2018 ISR – August 30, 2018 Aide Memoire 5 – January 17–25, 2019 ISR #4 ISR – March 11, 2019 Aide Memoire 6 – April 22–26, 2019 ISR #5 ISR – August 19, 2019 Aide Memoire 7 – July 15–18, 2019 ISR #6 ISR – March 20, 2020 Aide Memoire – MTR mission – December 2–6, 2019 ISR #7 Aide Memoire 8 – June 10–17, 2020 ISR – September 25, 2020 Aide Memoire 9 – February 16–March 5, 2021 ISR #8 ISR – April 15, 2021 Aide Memoire 10 – October 25 – November 1, 2021 ISR #9 ISR – December 9, 2021 Aide Memoire 11 – May 3–17, 2022 ISR #10 ISR – June 30, 2022 ISR – December 19, 2022 ISR #11 Aide Memoire 10 – February 1–10, 2023 ISR #12 ISR – March 12, 2023 Aide Memoire – April 3–12, 2023 ICR mission Project Appraisal Document – Cambodia Southeast Asia Disaster Risk Management PAD2014 Project Notice of Extension of Project Closing Date – August 28, 2020 Restructuring Paper – 2020 RES41325 Restructuring Paper – 2022 (dropped) RES52510 List of trainings and workshops 2017–2023 Monitoring and Evaluation Report Client ICR- Ministry of Rural Development Report Client ICR- Component 2, Non-Bank Financial Services Authority, Ministry of Economy and Finance, Cambodia Note: ICR = Implementation Completion and Results Report; ISR = Implementation Status and Results Report; MTR = Mid-Term Review. Page 45 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Figure A6.1. Flood resilience design options adopted under Subcomponent 1.1 Figure A6.2. Road safety campaigns organized under Subcomponent 1.1 Page 46 of 47 The World Bank Cambodia Southeast Asia Disaster Risk Management Project (P160929) Figure 6.3. Project roads affected by floods and riverbank erosion (Tboung Khmum Province) Page 47 of 47