CDC - ADB


CAMBODIA, 2002 Consultative Group Meeting

Asian Development Bank Statement as Co-Chair of the Donor’s Working Group on Natural Resource Management Land Management and Water Resources Management

Mr. Chairman, Excellencies, Distinguished Delegates, Ladies and Gentlemen, Important progress has been made in land management and water resources management in the past few years. Soon after the CG Meeting in Tokyo in 2001, there was the passage and promulgation of the Land Law, which is now being implemented by the Ministry of Land Management, Urban Planning and Construction (MLMUPC). In the water resources sector, the Ministry of Water Resources and Meteorology (MOWRAM) has completed a National Water Sector Profile in 2001 and is currently working to develop a national water policy and finalizing the draft Water Resources Management Law. Over the years, ADB has taken a keen interest in institutional capacity building and supporting development in these important sub-sectors. However, much more work remains to be done and we would like to encourage the Government and the respective line agencies to continue sustaining the pace of progress that has already been demonstrated thus far. Nonetheless, there are issues that we would like the Government to give priority attention. The Ministry of Land Management is currently preparing several sub-decrees to enable the effective implementation of the Land Law. It is important that the deliberation and passage of the sub-decrees be expedited by both that ministry, and by the Council of Ministers. We are pleased with the recent adoption of the following three sub-decrees: 1) the Sub-decree on the Organization and Function of the Cadastral Commission; 2) Sub-decree on Systematic Registration; and 3) Sub-decree on Case-by-Case Registration. The effective implementation of these sub-decrees will ensure that the important land tenure protections guaranteed by the Land Law will in fact be realized. There are several other sub-decrees that remain to be completed. These include the Sub-decree on Social Concessions, the Sub-decree to reduce the size of agricultural concessions granted prior to the new law, and the Sub-decree for the awarding of new agricultural concessions. We urge the Government to complete these decrees as soon as possible. Despite extensive holdings of state owned immovable property (land and buildings), the return to the national budget from rents, lease payments and other land use rights granted by the Government remains very low. Land taxes collected from private property transactions are also lower than what could be expected. To ensure a transparent transaction, the Government should make the value of state property public, including the amount it is rented for, and how much revenue is generated. The Land Law specifies that concessions will be limited to 10,000 hectares. However, several existing and even some recently awarded concessions are larger than this. It is our understanding that much of the good vacant agricultural land is tied up in concessions that far exceed the 10,000 ha. The reduction of these concessions will make this productive land available for smallholders. In this connection, we urge the Government expedite the preparation of the following sub-decrees: (i) Sub-decree on Social Concessions; (ii) Sub-decree to reduce the size of agricultural concessions; and (iii) Sub-decree for granting new agricultural concessions. These sub-decrees should be developed simultaneously as they are interrelated and to ensure their consistency with each other. In addition, the Government should ensure that environmental and social impact assessments are conducted in full consultation with concerned stakeholders and in compliance with the National Environmental Management Law prior to granting land concessions. The ambiguity of state lands adds to the tensions around land tenure in Cambodia, as well as limiting Cambodia’s ability to ensure that all citizens benefit from sustainable management of state assets. This is particularly important for the management of forest and fisheries resources. We would like to urge the Government to begin the process of demarcating state lands as soon as possible. The indigenous people of Ratanakiri and Mondulkiri are ethnic minorities that have a distinct culture from other Cambodians. To them, land has both practical use and spiritual meaning, and the system of landownership is communal rather than individual. The provisions of the Land Law recognize the unique distinction of the indigenous people. Yet we remain very concerned that people who are migrating to these provinces are threatening their communal lands. We would like to see that in the coming months the Government take appropriate steps to implement the provisions of the Land Law and at the same time take measures to halt further encroachment on lands belonging to indigenous people. Land grabbing is still a persistent problem. We do not wish to lose sight of this issue, as it has a very direct impact on the incidence of poverty. This issue is directly linked to good governance and poverty alleviation. We commend the Government for establishing the Cadastral Commission, at the local, provincial, and national levels to conciliate and decide landownership conflicts and property rights. However, we continue to urge the Government to take a pro-active stand in discouraging the displacement of poor people by powerful individuals and interests. In the water sector, the Government recognizes the importance of the country’s water resources, and hence created MOWRAM to ensure their proper management and productive utilization. However, that alone is not sufficient and we would like to encourage the Government to empower and strengthen the mandate of MOWRAM in the area of policy and legal framework, and in ensuring that other relevant line agencies cooperate and coordinate to achieve a common objective for sustainable water resources management. It is necessary for the Government to expedite the formulation of the National Water Policy and finalization of the Water Resources Management Law, as these are instrumental framework for strengthening MOWRAM to fulfill its mandate as steward of the nation’s water resources. We hope that these would be implemented by mid-2003. MOWRAM is encouraged to view its roles and responsibilities beyond the development of agricultural irrigation systems, to one that place increased emphasis on achieving long-term sustainability through the widely-accepted principles of Integrated Water Resources Management (IWRM). ADB has been promoting IWRM throughout the region, as we believe it is one of the means to reduce poverty, promote equitable access to water, improve health, and contribute to economic development. The draft Water Resources Management Law is one of several laws relating to natural resource management that is either being drafted or has already been enacted. These include the National Environmental Management Law (passed 1997), the Land Law (passed 2001); the Forestry Law (at the National Assembly); and the Fisheries Law (draft). It is important that these legal instruments are consistent with each other so that they do not impede efforts to manage Cambodia’s natural resources. In this context, we seek Government assurance that the development, interpretation and implementation of the laws are well coordinated, and consistent with each other. In closing, we wish to reiterate that land and water are essential resources for the development of Cambodia. We believe that the Government shares this same view and have demonstrated this through its eagerness and enthusiasm in implementing the Land Law and formulating National Water Policy and Water Resources Management Law. We would also like to emphasize that good governance in these sub-sectors would ensure increased investments and productivity, equity for the poor and disadvantage, sustainable management of state assets and reduce social conflicts. Once this is realized, Cambodia will be on the road to achieving its goal of eliminating poverty. Thank you for your kind attention.