CDC - 7 CG Presented by Ulrik Helweg-Larsen, Danida

INFRASTRUCTURE AND REGIONAL INTEGRATION

TECHNICAL WORKING GROUP

Ministry of Public Works and Transport & Ministry of Rural Development

Benchmarks	Deadline	Actions
Transport Sector Strategy	January 2006	MPWT Minister endorses Transport Sector Strategy (TSS) and submit it to CoM for approval
Road Law and Road Safety	September 2006	Submit endorsed Road Law & Road Safety (RL&RS) to CoM for approval
Road Maintenance Strategy	December 2005	Establish Road Maintenance Mechanism Preserve Road Assets (award contract of 7 weigh Bridges and Vehicle Monitoring System (WB & VMS)

Ministry of Water Resources and Metheology

Benchmarks	Deadline	Actions
Law of Water Resources Management	March 2005	CoM approves Law of Water Resources Management and submit it to National Assembly for adoption

Ministry of Post and Telecommunication

Benchmarks	Deadline	Actions
Sub-decree of Telecom Cambodia and Establishment of Telecom Cambodia	April 2005	CoM approves Sub-decree of Telecom Cambodia

Ministry of Industry, Energy and Mines

Benchmarks	Deadline	Actions
Royal decree of Rural Electricity of Renewal Power	January 2005	CoM endorsed the draft royal decree in November 2004 and currently await royal approval

State Secretariat for Civil Aviation

Benchmarks	Deadline	Actions
Civil Aviation Codes (Law)	July 2005	Approves Civil Aviation Codes (Law) by CoM and submit it to National Assembly

Benchmarks: Transport Sector Strategy (TSS)
Purpose / Background The purpose it to develop and set up the future direction to an overall Transport Sector Policy and individual mode taking into account the private sector participation and restructuring the management of the transport sector in Cambodia aimed at achieving global transport solution, promoting national economic growth and alleviating poverty. The draft TSS was completed in June 2002, however, different opinions among MPWT officials on the draft TSS require its review and further discussion
Previous Activities / Results Develop the Transport Sector Policy and the modal strategies by ADB fund (June 2002)
Action Plans
Benchmarks	Deadline	Actions
Transport Sector Strategy	May 2005 June 2005 August 2005 September 2005 December 2005 January 2006 February 2006 May 2006	● Approve Transport Sector Strategy (TSS) - Review Draft TSS by experts - Organize 1^st inter-ministerial seminar on the draft TSS - Incorporate feedback into the draft TSS - Organize 2^nd inter-ministerial seminar on revised draft of TSS - Prepare final draft of TSS - Endorse final TSS and submit it to CoM for approval - Submit approved TSS to National Assembly for adoption - Promulgate the TSS

Benchmark: Road Law and Road Safe RL & RS
Purpose / Background Road Law: The purpose of the RL is to define the responsibilities, obligations, rights and interests of the State, the community, individuals and users of the public road traffic and transport system within the Kingdom of Cambodia. The objectives of RL are to provide a legal framework to plan, maintain, improve and extend the existing road networks, to classify public roads according to the degree of national, provincial or local use, to facilitate the development and management of such networks at appropriate levels of government so as to provide adequate road infrastructure for the safe, equitable and efficient utilization and enhanced well-being of the Cambodia people and to regulate the activities of road transport carriers within an environment conducive to a market -based transport system so as to facilitate the provision of efficient and economically viable transport services consistent with the needs and affordability of the country. Road Safety: Current improvements of the road net work lead to the increased traffic volumes and operating speed which if not addressed will lead to an increase in frequency of traffic accidents. Survey indicates that road accidents cost Cambodia over US$ 116 million a year —money that can be better spent helping Cambodia to develop through building its infrastructure and other services. To address the issues in term of preventing road accidents RS is being drafted by MPWT for defining roles, responsibilities, obligations, rights and interests of the State, the community, individuals and users of roads within the Kingdom of Cambodia. The draft RS is being finalized and when promulgated will be of paramount importance to the prevention of road accidents in the Kingdom of Cambodia.
Previous Activities / Result Road Law: RL Workshop with various stakeholders (Feb 2004) Request to World Bank for additional budget of US$ 0.1 million for TA Road Safety: Set out its 15 road safety action plans to ensure the minimum casualties on roads. The implementation programs constrain with budgets.
Action Plans
Benchmarks	Deadlines	Actions
Road Law and Road Safety		● Approve Road Law & Road Safety (RL & RS)
	June 2005 July 2005 August 2005 September 2005 December 2005	- Complete Draft RL & RS - Organize1st inter-ministerial meeting - Incorporate feedback into the RL & RS; Endorse final RL & RS - Submit approved RL & RS to National Assembly for adoption - Promulgate RL and RS

Benchmarks: Road Maintenance Strategy (RMS)
Purpose / Background The objectives of RMS is to define early in the process a road maintenance goal of what Ministry of Public Works and Transport (MPWT) and Ministry of Rural Development (MRD) want to attain within the next five years. To achieve the goal the MPWT and MRD are to apply Maintenance Management System (MMS) in maintaining the rehabilitated roads financed by both national and foreign funding. Approximately 2,500 km of national and provincial roads and 4,200 km of tertiary roads have been rehabilitated and they require routine maintenance. With these huge tasks and challenges both MPWT and MRD require a total budget of approximately US$ 170 million for the period of the year 2005 — 2010 that the preservation of the road assets can be sustained. It is obvious that the availability of funds from the national budget can not meet the challenges. It is a major task for MPWT and MRD to consider other options of road maintenance such as involvement of private sector participation and soft loans to road maintenance.
Previous Activities / Result Asian Development Bank provided technical assistance to Ministry of Public Works and Transport (MPWT) in the year of 2001-2002 aims at providing assistance to MPWT to develop the MMS.
Action Plans
Benchmarks	Deadline	Actions
Road Maintenance Strategy		● Road Maintenance
	April 2005 June 2005 December 2005	- Prepare a comprehensive road maintenance strategy and plan - Study the private sector participation in road maintenance - Establish road fund maintenance mechanism ● Preserve Road Assets
	May 2003 May 2005 December 2005	- Issued sub-decree on axle load (strengthen the execution of sub-decree is on going) - Resettle land for 7 weight bridge and Vehicle Monitoring System (WB & VMS) on RN 1,5,6 & 7 - Complete bidding process and award contract of WB & VMS construction period – 12 months

Benchmark: Establishment of Telecom Cambodia (TC)
Purpose / Background The purpose of establishment of TC is to set up a public enterprise as operating institution which is separately from regulating body. The TC operates under the technical supervision of Ministry of Post and Telecommunication (MPTC) and Ministry of Economy and Finance (MEF). It is a legal entity with financial, administrative, and technical autonomy. The objectives and duties of the TC is to be a service provider to domestic and international telecommunication network through radio communication, satellite, optical fiber, sub-marine cable and others.
Previous Activities / Results Submission of draft sub-decree to CoM (Nov. 2004)
Action Plans
Benchmarks	Deadline	Actions
Establishment of January 2005 CoM approves sub-decree of TC	January 2005 April 2005 June 2005 August 2005	CoM approves sub-decree of TC Evaluate TC assets Prepare TORs Set up Board of Directors by Prime Minister

Benchmark: Law of Water Resources Management
Purpose / Background Due to increasing population and socio-economic development, the demand for water also is increasing rapidly, and there is very strong pressure on the Nation’s water resources. To ensure that present and future use of water is sustainable and effective, the Royal Government has defined the Nation’s Water Vision for Cambodia as follows: Access for all to safe, adequate, and affordable drinking water, hygiene, and appropriate price, Provide sufficient water for agriculture, industry and economic activities, Tackle and minimize for all from the threat of loss of life and livelihood as a result of water related hazards, Manage the water resource environment with unpolluted.
Previous Activities / Results Submission of the law to CoM
Action Plan
Deadline	Action
Jan. 2005 June 2005 July 2005 Aug. 2005	Submission to the National Assembly Adoption of law by National Assembly general meeting Submission to senate Adoption of law by senate and promulgation

LAW

on

WATER RESOURCES MANAGEMENT

IN THE KINGDOM OF CAMBODIA

Introduction

The kingdom of Cambodia is a country that is considered to have abundant water. Water is a basic resource for many sectors, because of population growth and economic development, increasing water demand will place serve pressure on the Nation’s water resource.

The royal government of Cambodia has expressed its long term goals for effective and sustainable management and conservation of water both fresh and marine water.

After creating the MOWRAM, the RGC has pledged and committed itself to establish and strengthen the water law, water policy, strategy and others regulations related.

Process for making draft of water law

In response to the problems in the water sector, the government of Cambodia has drafted water law in 1999.

The process of drafting law started in 1999 by MOWRAM. A first amended version of the law was prepared by the task force of MOWRAM with the technical assistance of the Agricultural Productivity Improvement Project (APIP) in May —June 2000.

This version was discussed during that period in the MOWRAM and was then further elaborated and translated into the Khmer language, with some difficulties.

A second round of discussions took place in October November 2000, and a second amended version, which did not differ much from the first, was drawn up. This draft was presented and discussed in a National conference on Cambodian’s water resources, which was held in Phnom Penh on 12-14 December 2000.

The draft was further elaborated and discussed in the MOWRAM again in February 2001. After that the law has been submitted to the Council of Minister on 05-03-01 for discussion and finished on 22-02-02 and in its present the law was submitted to the National assembly on 08-04-02 and not yet discussed.

The focused points of the formulation law.

Researching the existing status of water sources , the real demands of social relation on exploitation, utilisation of water sources and human civilizations in exploitation and utilisation of water.
Analyzing the status of existing legal documents that are related to the water resources and also analyzing the status of existing international legal documents.
Analyzing the impacts of the market mechanism on the overall process of exploitation, utilisation, management and protection of water and the demands for state management on water resources in a new stage.

The main purpose of the water law

The general purpose of this law shall be to foster the effective management of the water resources of the kingdom of Cambodia to obtain socio-economic development and the welfare of the people.

This law determines:

the rights and obligations of water users

the fundamental principals of water resources management

the institutions in charge of its implementation and enforcement and

the participation of users and their associations in the sustainable development of water resources.

Water resources defined in this law includes surface water, underground water and rainwater within the Cambodia.

STRUCTURE OF THE WATER LAW

The structure of the Water Law is comprised of 11 Chapters and 41 Articles.

Benchmark: Rural Electrification Fund
Purpose / Background The objectives for which REF is established are: to promote the equitable rural electrification coverage by facilitating the population’s access to electricity at affordable price for economic, social and household uses, thus contributing to its poverty reduction. to promote and encourage the private sector to participate in providing the sustainable rural electrification services, in particular for the exploitation of the economic application of well proven, technically and commercially, of new and renewable energy technologies.
Previous Activities / Results Examined by CoM [Oct. 2004] Submitted to Prime Minister [Nov. 2004]
Action Plan
Deadline	Action
Jan. 2005 Apr. 2005 May 2005	Royal approval on Rural Electrification Fund (REF) Establishment of board of REF Implementation of REF

Ministry of Industry Mines and Energy
Energy Sector:

Benchmarks	Targeted Date	Actions
*Rural Electrification Fund (REF)*	7 Nov 04	Execution of the credit agreement between World Bank and RGC for parent RE&T Project (Signed 14 Nov 04)
	30 Nov 04	Examined by Council of Ministers 1 Oct 04, to e submitted to Prime Minister and endorsed by Head of State
	31 Jan 05	Expressions of interest for Board nominations sought, now awaiting Royal Decree
	31 Jan 05	Awaiting progress
	28 Feb 05	World Bank procurement requirements have been established, with TORs drafted for review, and Expression of Interest to be requested in December
	31 Mar 05	Solar Home System specification drafted (modified from Sri Lankan document), now need to finalise and repeat for Hydro, Diesel, Mini-Grid etc.
	31 Mar 05	Awaiting progress
	30 Apr 05	World Bank procurement requirements have been established, with TORs drafted for review. Now awaiting progress and procurement of urgent TAs.
	31 May 05	Awaiting progress and procurement of consultant TA help
	31 May 05	Need to comply with loan effectiveness and sub-loan disbursement conditions, such as deposit of counterpart fund and financial management system
	2005-2010	Ongoing implementation from REF commencement

Brief Summary Report

1- Rural Electrification Fund (REF)

Background

The REF is one component of the Rural Electrification and Transmission (RE&T) project funded by the World Bank and Asian Development Bank (ADB). This parent project includes construction of a high voltage transmission line to import power from Vietnam, extension of grid networks, and a range of institutional capacity building activities.

Objectives of the REF

The direct objective of the REF is to accelerate the rate of rural electrification and reduce the economic cost of power supply. This forms part of the broader objectives of the RE&T project which are to:

improve power sector efficiency and reliability and reduce electricity supply costs;
improve standards of living and foster economic growth in rural areas by expanding rural electricity supplies; and
strengthen electricity institutions, the regulatory framework and the "enabling environment" for sector commercialization and privatization.

The specific targets of the REF are as follows:

45,000 new connections to rural grids by Rural Electricity Enterprises (REE)

6MW of new Mini Hydro

12,000 new Solar Home Systems

850kW of new Village Hydro

5% of national installed capacity from Solar and Hydro

The specific targets of the Pilot Phase are as follows:

6-10 sub-projects will be tested out in the initial phase of the REF in 3-4 provinces. The project criteria for the initial phase will require:

Effective license issued by EAC with a duration of not less than 5 years;

Projects implanted which provide the economic least-cost option in the area;

Variety in fuel source (including at least 1 solar system, 1 hydro scheme);

Variety in size (1 provincial town, 1 district, and 1 commune);

Number of consumers should not be less than 300; and

Installation of 300 Solar Home Systems (SHS).

REF Activities 2005-2010

The REF will call for proposals from private developers to implement rural electrification solutions in particular nominated areas, consisting of either:

New mini-grids based on generation from diesel, solar or hydropower generation;

Extension of an existing small grid systems to connect new households;
Solar Home Systems (SHS); or
Mini or Micro hydropower system.

(other technologies such as wind and biomass will be considered after the Pilot Phase)

Proposals will be selected according to eligibility criteria (see below). Successful proposals will receive an REF grant (see rates below) which is expected to contribute approximately a quarter of the total project investment costs, with private equity providing a quarter and a bank loan covering the remainder.

Project Type	Total Cost	REF Grant
New household connected to existing diesel mini-grid	US$150	US$45
Mini hydro (0.75-5 MW)	US$1744/kw installed	US$400/kw installed
Micro hydro (average 50kw)	US$2700/kw installed	US$400/kw installed
Solar Home System	US$400 per set of 40 Wp	US$100 Per set of 40 Wp

The intended effects of the REF grant is to reduce the capital cost and thus the retail cost of power in rural areas and also, combined with an operating license from the Electricity Authority of Cambodia (EAC), to enable the proponent to successfully obtain the remaining finance from a private finance institution.

A range of substantial Technical Assistance will also be established in order to assist REF stakeholders to access the potential benefits and ensure the overall effectiveness of the REF. The TA available is as follows:

Rural Income Generation Promotion;

Project Pipeline Development;

Promotion and Awareness;

REE Improvement and Association Building; and

Capacity Building of Financial Institutions.

The interim REF Project Management Unit (PMU) is currently preparing for establishment of the REF Board and Secretariat, and for procurement of the necessary TA packages and other assistance. The REF is expected to be established, and all necessary loan effectiveness and disbursement conditions met, by the first quarter of 2005. More information is available at www.recambodia.org.

Benchmark: Civil Aviation Codes (Law)
Purpose / Background Civil Aviation Law is a prerequisite for sovereign national civil aviation operations. It empowers the organization to honor its international obligations and facilitate its internal management. The essential components are provisions regarding flight safety, airport certification, airworthiness, licensing of air crew and technicians, air navigation services, air transportation and security and bilateral air service agreements and security mechanisms.
Previous Activities / Results Submitted to Council of Ministers {November 2004}
Action Plan
Deadline December, 2004	Action Approval of Civil Aviation Codes by RGC (PM) and submission of it to National Assembly.

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