Cambodia Provincial and Peri-Urban Water Supply and ... · The water source will be groundwater, to...

E687Volume 13 - Revised

Kingdom of CambodiaNation Religion King

Ministry of Industry, Mining and EnergyDepartment of Potable Water Supply

Cambodia Provincial and Peri-UrbanWater Supply and Sanitation Project

Initial EnvironmentalImpact Assessment Report

Phsar Chub (M16)

District of Preah Net PreahBanteay Meanchey Province

Phnom Penh, February 2003

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Cambodia Provincial and Per!-Urban Water Supply and Initial Environmental Impact Assessment (IEIA)Sanitation Project (MIME / PPWSA / WB) Phsar Chub (M16), Banteay Meanchey

TABLE OF CONTENTS

PROJECT SUMMARY

I INTRODUCTION .................................. 1-11.1 BACKGROUND OF THE PROJECT .................. ....................................... 1-11.2 ENVIRONMENTAL ASSESSMENT ......................................................... 1-21.3 INSTITUTIONAL AND LEGAL FRAMEWORK ......................................................... 1-2

2 PURPOSE OF THE PROJECT ................................ . 2-12.1 OBJECTIVES ......................................................... 2-12.2 PUBLIC PARTICIPATION ......................................................... 2-1

3 PROJECT DESCRIPTION ................................ . 3-13.1 SERVICE AREA ......................................................... 3-13.2 SUMMARY OF INFRASTRUCTURE .................. ....................................... 3-13.3 WATER QUALITY STANDARDS ......................................................... 3-33.4 PROJECT PLANNING AND IMPLEMENTATION ......................................................... 3-3

4 DESCRIPTION OF ENVIRONMENTAL RESOURCES ................................ 4-14.1 PHYSICAL RESOURCES ......................................................... 4-14.2 ECOLOGICAL RESOURCES ......................................................... 4-44.3 SOCIO-ECONOMICAL RESOURCES ......................................................... 4-4

5 PUBLIC PARTICIPATION ................................ 5-15.1 GENERAL ......................................................... 5-15.2 CONSULTATIONS WITH THE PROSPECTIVE USERS .................................................... 5-15.3 WILLINGNESS-TO CONNECT (WTC) .............................................. 5-2

6 ENVIRONMENTAL IMPACT ANALYSIS ................................ 6-16.1 METHODOLOGY ................................................... 6-16.2 PRE-CONSTRUCTION CONSIDERATIONS ................................................... 6-26.3 ENVIRONMENTAL IMPACTS DURING PROJECT CONSTRUCTION .................................... 6-36.4 ENVIRONMENTAL IMPACT DURING PROJECT OPERATION ............................................ 6-46.5 SUMMARY OF SIGNIFICANT ENVIRONMENTAL IMPACT ................................................. 6-4

7 ECONOMICAL ANALYSIS AND ENVIRONMENTAL VALUE ................................. 7-17.1 GENERAL ......................................................... 7-17.2 FINANCIAL DATA ......................................................... 7-1

8 ENVIRONMENTAL MANAGEMENT PLAN ................................... ......................... 8-18.1 INTRODUCTION .............................................. 8-18.2 ENVIRONMENTAL MITIGATION PLAN ....................... .................................. 8-18.3 ENVIRONMENTAL MONITORING PLAN .................................... ........................ 8-1

9 INSTITUTIONAL RESPONSABILITIES AND CAPACITY .................................................. 9-19.1 PROJECT IMPLEMENTATION ............................................. 9-19.2 COMPLIANCE MONITORING .............................................. 9-29.3 IMPLEMENTING CAPACITY ............................................. 9-2

10 CONCLUSIONS AND SUGGESTIONS .. 10-1

11 PRINCIPAL REFERENCES .. 11-1

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Cambodia Provincial and Pen-Urban Water Supply and Initial Environmental Impact Assessment (IEIA)Sanitation Project (MIME / PPWSA / WB) Phsar Chub (Ml 6), Banteay Meanchey

LIST OF FIGURESFigure 1-1 - Location map of the project area .............................................................. 1-1Figure 1-2 - Applied EA Process .............................................................. 1-4Figure 3-1 - Proposed service area and infrastructure (DRAFT) .................................. 3-2Figure 4-1 - Geological provinces .............................................................. 4-2

LIST OF TABLES

Table 3-1 - Summary of proposed infrastructural works ............................................... 3-1Table 4-1 - General climate conditions in Cambodia ..................................................... 4-3Table 6-1 - Summary matrix of Environmental Issues/Impacts ..................................... 6-1Table 8-1 - Environmental Mitigation Plan .............................................................. 8-2Table 8-2 - Environmental Monitoring Plan .............................................................. 8-3Table 9-1 -Responsibil ities for ESF Implementation and Compliance Monitoring ........ 9-1

LIST OF ANNEXES

Annex I - List of EA preparersAnnex Il - WTC Process documentationAnnex IlIl - Proof of social acceptabilityAnnex IV - Applied Water Quality StandardsAnnex V - Accountability statement of project owner

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Cambodia Provincial and Peri-Urban Water Supply and Initial Environmental Impact Assessment (IEIA)Sanitation Project (MIME I PPWSA I WB) Phsar Chub (M16), Banteay Meanchey

LIST OF ABBREVIATIONS

ADP Average Daily ProductionBOD Biochemical Oxygen DemandCOD Chemical Oxygen DemandCPPUWSSP Cambodia Provincial and Peri-Urban Water Supply and S anitation ProjectDBL Design/Build/LeaseDD Detailed DesignDPWS Department of Potable Water SupplyDPWT Department of Public Works and Transport (Municipality)EA Environmental AssessmentEEA Environmental Examination A pplicationEIA Environmental Impact AssessmentEMiP Environmental Mitigations P lan (part of an EMP)EMoP Environmental Monitoring Plan (part of an EMP)EMP Environmental Management PlanESF Environmental Safeguard F rarneworkFIRR Financial Internal Rate of ReturnFS Feasibility StudyFT Fraser Tomas (Engineering Consultants)GHD Gutteridge, Haskins & Davey (Engineering Consultants)IEIA Initial Environmental Impact AssessmentIP Indigenous PeopleJICA Japan Intemational Cooperation AgencyLCPSS Low Cost Pilot Sewerage SystemLpcd Liters per capita per dayMg/l Milligrams per literMIME Ministry of Industry, Mines, and EnergyMoA Ministry of AgricultureMoE Ministry of EnvironmentMPP Municipality of Phnom PenhMWRM Ministry of Water Resources and Meteor ologyMPWT Ministry of Public Works and TransportNGO Non Governmental OrganizationPCD Pollution Control Department (Ministry of Environment)PG Provincial GovernmentPMU Project Management UnitPO Project OwnerPPWSA Phnom Penh Water Supply A uthorityRGC Royal Government of CambodiaToR Terms of ReferenceTSS Total Suspended SolidsWB World BankWHO World Health OrganizationWSS Water Supply and SanitationWTC Willingness to Connect

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Cambodia Provincial and Per!-Urban Water Supply and Initial Environmental Impact Assessment (IEIA)Sanitation Project (MIME / PPWSA / WB) Phsar Chub (M16), Banteay Meanchey

PROJECT SUMMARY

GeneralThe purpose of the Environmental Assessment is to identify and evaluate thesignificance of any potential environmental impacts on the proposed construction anddevelopment program for a new water supply system for Phsar Chub (District of PreahNet Preah, Banteay Meanchey Province) and to incorporate preventive and mitigationmeasures to ensure that residual environmental impacts are acceptable and are withinthe applicable limitation standards prescribed by the Ministry of Environment and theWorld Bank.

The Local Government of Phsar Chub has initiated the current project, with support ofthe Provincial Government of Banteay Meanchey and the Department of Potable WaterSupply (DPWS) of MIME. The actual 'Project Owner' is the Ministry of Industry, Minesand Energy.

Project descriptionBased upon the evaluation of the various options for a possible water supply scheme,MIME, with support of the Engineering Consultants GHD/FT, has prepared a viableproject proposal. The project will provide piped water supply for a population estimatedat 4,535 persons in 832 households, with service initially to some 51 to 60 percent of thepopulation within the service area at 40 I/cd, increasing to 60 I/cd and serving 90 percentof the population in the service area. Preliminary calculations indicate a required waterresource demand (ADP), at year seven and with a consumption of 60 I/cd, of 460 m3/day.

The water source will be groundwater, to be abstracted via deep bores. The necessarytreatment will be applied to comply with Cambodian drinking water quality standards. Atreatment plant will be located on the land identified by the District and Commune behindthe existing DIME warehouse. Treatment comprises aeration, pH adjustment anddisinfection. Distribution to the town in three separate supply zones at differentpressures, the High Zone serving 120 houses boosted to a head of approx. 134 m, aLow zone comprising two thirds of the town served direct from the CWT by gravity feedat 106 m head, and a Mid zone of about 100 houses at a head of 121.5 m. A singlemetered connection will be provided to each house, where it is assumed that household"water jar" storage will continue to be used.

No resettlement will be required. The project will not negatively affect any indigenouspeople.

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Cambodia Provincial and Per-Urban Water Supply and Initial Environmental Impact Assessment (IEIA)Sanitation Project (MIME / PPWSA / WB) Phsar Chub (M16), Banteay Meanchey

Land AcquisitionThe scheme is based on the treatment plant being located on the site of the DIMEwarehouse on NR6 opposite the District Referral Hospital. The District has indicated thatit will make this land available for the project and indeed it is suitably located for thisintended purpose.

The land for the proposed wells and pumping stations should be purchased (or madeavailable by the Commune) with official documentation as soon as the locations of wellsare confirmed by the private operator. The treatment plant will be established on the landidentified by the Commune, behind the existi ng Commune office.

It is anticipated that 1550m2 of land will be required. The acquisition of land will befacilitated by MIME as part of their responsibility to the project. If possible, the PMUrepresentative will facilitate the issuance of 'Deed of Donation" or statements on thewillingness to sell prior to the construction t o avoid any conflict with the lot owner.

ConsultationsAfter series of meetings/consultations with concerned Provincial Government Officials ofthe Banteay Meanchey Province and the local officials and residents of Phsar Chub, theProject was approved and endorsed. Overall, the project is perceived to be of great helpto the community since it will significantly improve the quality of the drinking water supplyand public health conditions by reducing common cases of water borne diseases(diarrhea, gastroenteritis and parasitism). The project will further stimulate socio-economic growth through increase in the number of commercial and economic activitiesthus adding revenue to the com munity.

The Willingness to Connect (WTC) indicated that 98% of the 980 households within theservice area of P hsar Chub approved a tariff of 1990 R iel/m3.

Environmental ConditionsAs groundwater will be abstracted from the sandstone formation with possible fractures,groundwater pollution may be a concern. Regular monitoring of upstream possiblepolluting activities is required.

Higher Arsenic concentrations are not expected in Bantey Meanchey Province.Nevertheless, appropriate mitigation measures are incorporated into the project designand preparation process if hi gher concentrations are encountered in the drill ings.

It should be noted that the 'Arsenic problem' generally applies to private shallow wells,where people have no choice in selection the location of the well, and have no resourcesto provide proper treatment. The PPUWSSP will develop piped water supply systems,where the both the source and the treatment can relatively easily be adjusted accordingto the local conditions.

No significant problems with existing onsite sanitation facilities is anticipated. Theinfiltration capacity of the soils in Phsar Chub Touch is generally good, and the watertable is sufficiently deep.

Environmental Management PlanTo mitigate possible general adverse environmental impacts (e.g. drainage, sanitation,damage to soils and water and economic losses), discussions are held with all major

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stakeholders. The findings and conclusions on the actions to be taken have beensummarized in an Environmental Managem ent Plan (EMP), including:

* An Environmental Mitigation Plan (EMiP), outlining the measures to be taken tomitigate adverse environme ntal impacts;

* An Environmental Monitoring Plan (EMoP), defining the environmentalparameters to be observed and reported;

* Overview if the implementation arrangements, defining the responsibilities andtiming.

Implementation and Monitoring arrangementsThe responsibilities for implementation and monitoring of the Environmental SafeguardFramework (ESF) are summarized in the table below. The Ministry of Industry, Minesand Energy has the overall responsibility for the proper implementation of theEnvironmental Safeguard Framework (ESF), i.e. project implementation and compliancemonitoring. The actual project management will be the responsibility of the ProjectManagement Office (PMO) in Phnom Perih. Consultants will be engaged to provideassistance during project preparation, and for supervising design and construction of thesystems.

The daily supervision of the construction and operation of the MIME sub-projects will becarried out by the Provincial Project Management Units (PMU). PMU staff will report tothe PMO.

Responsibilities for ESF Implementation and Compliance MonitoringAgency Principal project linkages Compliance Monitoring

MIME/PPWSA Main linkage to MoE and WB-EASUR Implements compliance monitoringPMOs agreements.

Prepares compliance monitoring reportsfor MoE and WB.

Provincial PMUs Report to MIME PMO.

Ministry of Implements compliance monitoringEnvironment (MoE) procedures: e.g. review of compliance

monitoring reports and field inspections.

WB Operations Provides 'No-Objection Letters' to Implements compliance monitoringDepartment MIME/PPWSA for sub-project procedures: e.g. review of compliance(EASUR) implementation, after clearance from monitoring reports and field inspections.

EASES

WB Environmental Provides Environmental Clearances for Implements compliance monitoringDepartment (EASES) (sub)-projects to EASUR procedures: e.g. review of compliance


Supervision Support PMOs and PMUs. Supervises work of DBL contractors.Consultants Support PMO/PMUs to prepare

monitoring reports.

DBL Contractors Report directly to MIME-PMO Implement EA requirements.Prepare compliance monitoring reportsand submit to MIME.

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Cambodia Provincial and Pen-Urban Water Supply and Initial Environmental Impact Assessment (IEIA)Sanitation Project (MIME / PPWSA / WB) Phsar Chub (M16), Banteay Meanchey

The water supply system operator and the PG, with the assistance of PMO/consultants,will monitor compliance with the operating permit and carry out the requisite datacollection during both the construction and operational phases. Monitoring reports to besubmitted to the MoE and the PMO w ill include:

* Presentation of the collected data;* Discussion on the compliance or non-compliance to the EMP and operating

permit;* Conclusions and recommendations.

The PMO is requested to summarize the finding of the quarterly monitoring reports andsubmit an annual compliance report to the World Bank.

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Cambodia Provincial and Per-Urban Water Supply and Initial Environmental Impact Assessment (IEIA)Sanitation Proiect (MIME / PPWSA / WB) Phsar Chub (M16), Banteay Meanchey

Environmental Mitigation Plan (EMiP) for Phsar Chub, Banteay MeancheyPhase Mitigation measures Responsibility SchedulePre- * Lack of control of water source: Acquire land MIME, World Bank Prior to DBLconstruction directly around the facilities (or secure a Contracts

possible purchase);* Reduction in flow: Locate the well in an area

where other water users are not affected.* Disturbance of land use and economic

activities: Usage of public areas; Provisionfor proper compensation.

* Risk of Arsenic in groundwater: design ofproper treatment facility.

Construction * Disturbance of land use due to Operator, with Continuousdrilling/construction: Minimize impacts, supervision of duringRestore damages. MIME consultant construction

* Loss of natural vegetation: Replanting of phase.affected areas.

* Disturbance of stream channels, aquatic plantand animal habitats: Erosion andsedimentation control.

* Soil and water contamination (e.g. spilling ofoil products and other construction materials):Control (collection, disposal) of waste water.

* Hindrance (noise, air pollution, traffic, etc)due to drilling/construction activities: Minimizehindrance; Usage of main roads whenpossible.

* Soil erosion and compaction: Proper runoffand erosion control measures; Heavy trafficrestrictions.

* Safety hazards: Proper safety and warningmeasures; Provision of temporarycrossings/bridges; Public informationcampaign.

Operation * Public health hazards due to increase of Operator, with To bewastewater: Support the construction of supervision of determinedproper on-site sanitary facilities (if lacking); MIME during feasibilityImprove storm drainage system for sullage; study.

* Contamination of the groundwater: Acquireand fence a protection zone directly aroundthe well; Regulate potential polluting activitiesin recharge zone; Monitor water level andgroundwater abstraction.

* Lowered groundwater table: Space wells atlarger distances; Avoid over-abstraction andconsequent lowering of groundwater table;Calculate safe yield (abstraction);Assure/proof that other water users are notaffected.

* Increase of noise: Usage of electricalsubmersible pumps; Construction of pumpinghouse.

* Water availibility: keep traditional watersources available.

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Cambodia Provincial and Peri-Urban Water Supply and Initial Environmental Impact Assessment (IEIA)Sanitation Project (MIME / PPWSA / WB) Phsar Chub (M16), Banteay Meanchey

Environmental Monitoring Plan (EMoP) for Phsar Chub, Banteay MeancheyPhase Monitoring activities Responsibility ImplementationPre- * Land acquisition: Check if the MIME, World Bank Prior to DBL Contractconstruction required land has been acquired

properly, or that a proper "Deed ofSale/Donation" has been prepared.Resettlement and Compensation:lfapplicable, check if properarrangments are made anddocumented.

Construction . Hindrance to local population: Noise, Operator, with Continuous, throughair pollution (odor, TSP, fume supervision of MIME regular constructionemissions), land damage, traffic. consultant supervision.

* EMP compliance of the contractors:Erosion control, vegetationprotection, soil and watercontamination.

* Safety precautions of contractors:Conform professional standards.

* Sanitary control: Proper constructionof on-site facilities; Properconstruction of sullage drainagesystem.

Operation . Quality of distributed water: conform Operator, with Regular, according toofficial standard procedures supervision of MIME professional standards.(microbiology, standard parameters,Arsenic, heavy metals);

* Groundwater resources: water level(2 X per month (after pumpingrecovery period); operation of pumps(abstraction).

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I INTRODUCTION

1.1 Background of the Project

The 'Provincial and Peri-Urban Water Supply and Sanitation' project (PPUWSSP) isbeing prepared and implemented by the Department of Potable Water Supply (DPWS)of the Ministry of Industry, Mining and Energy (MIME), and the Phnom Penh WaterSupply Authority (PPWSA), Kingdom of Cambodia. The PPUWSSP is financed througha loan from the World Bank.

The MIME component aims at financing water supply and sanitation projects targetingprovincial towns and district towns that express demand for improved services and low-income communities in urban centers. It finances investments that (i) respond to whatconsumers want and are willing to pay, (ii) facilitate and develop private sectorparticipation in financing, operating and maintaining constructed facilities, whiledesigning specific instruments that ensure inclusion of low income communities residingin the service areas.

Upon the request of the local governments, the town of Phsar Chub, Province ofBanteay Meanchey (Figure 1-1), has been included in the first batch of the project.Phsar Chob has expressed its interest in the project as it is a larger town, but does notyet have a piped water supply system. Located along the road along from Sisophon andSiem Reap, it has a potential to increase its commercial activities.

Figure 1-1 - Location map of the project areaM y (MOuSmach (M)

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The purpose of the present Initial Environmental Impact Assessment (IEIA) is to identifypossible environmental and social impacts arising from the proposed construction anddevelopment of a piped water supply system for Phsar Chub, Province of BanteayMeanchey (M16).

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Many sections of the current report have been obtained from the Feasibility Studyreports, prepared by Ministry of Industry, Mines and Energy, with support of theEngineering Consultant GHD/FT.

1.2 Environmental Assessment

The EA has been prepared in accordance with the guidelines of the Ministry ofEnvironment (MoE, see also section 1.3), combined with World Bank guidelines onEnvironmental Assessment. Both within the Cambodian and the World Bank regulatoryframework an environmental clearance is required before the project implementation canstart. Environmentally sound practices have been incorporated in the project planningand design, and possible negative impacts have been identified to be mitigated toacceptable levels.

The EA was carried out by a technical team, comprising of engineers and environmentspecialists (See Annex I - List of EA preparers). Multiple consultations with the staff ofMIME, Provincial Government, Commune chiefs, and the local beneficiaries wereconducted in order to solicit their comments, reactions and finally seek their properapproval and endorsement of the proposed project (see Annex II - WTC Processdocumentation and Annex IlIl - Proof of social acceptability).

Desk research was carried out through obtaining available data about the physical,socio-economic, environmental characterization, political profiles from the EngineeringConsultants GHD/FT. Data were also gathered and reviewed from the national lineagencies/offices such as Ministry of Rural Development (MRD), Ministry of Agriculture(MoA), and Ministry of Environment (MoE). These available reports/literatures and othermaterials relevant to the conduct of the Environmental Assessment report were compiledand reviewed.

Aside from data gathering activities, actual interview and constant coordination with themembers of the Provincial Management Unit (PMU) at the Provincial and Municipal/Citylevels were carried out to gather first hand information/data.

1.3 Institutional and legal framework

Overall management of the environment lies with the Ministry of Environment (MoE),which was created in 1993. The MoE has wide responsibilities, which are spelled out inthe Law on Environmental Protection and Natural Resources Management. At theprovincial and city levels, there are corresponding Provincial/City EnvironmentDepartments. These local departments have the responsibility of enforcing theenvironmental legislation coming under the competence of the MoE. However, the dailyoperational functions of these departments would normally come under the direct controlof the provincial/city authorities.

The objectives of the framework Law are to protect environmental quality through theprevention, reduction and control of pollution, to establish an Environmental ImpactAssessment (EIA) system, to ensure sustainable use of natural resources, to encouragepublic participation and to suppress acts which are harmful to the environment.

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The framework Law calls for an EA to be conducted for every private or public project, tobe reviewed by the Ministry of Environment before submission to the Government for afinal decision. All proposed and existing activities are to be covered under thisrequirement. Sub-decrees are anticipated to provide for the finer details of the system.Furthermore, the MoE has prepared draft guidelines for the set-up and contents of theEIA reports). Although still in draft form, they have been applied as the basis for the IEIAreports.

Accordingly, for new water supply systems 2 2,000 connections, a conciseEnvironmental Assessment (EA) will have to be prepared by the Project Owner. This isconsistent with the Cambodian Sub-decree on Environmental Impact AssessmentProcess. The Cambodian Environmental Impact Assessment (EIA) reportingrequirements for water supply projects start with 10,000 users. The EIA sub-decreedetails specific procedures to be followed and lists the nature and size of projects whichare required to submit Initial Environmental Impact Assessment (IEIA) or ElAs report.

For smaller systems (< 2000 connections), the Project Owner will have to includeEnvironmental Safeguard Guidelines into the Project design and operationarrangements, but will not be required to seek formal approval from the Ministry ofEnvironment.

Based on the above mentioned documents, the MoE have drafted flowcharts showingthe EIA procedure to be applied. For the present project, with MIME being the Projectowner, the applied process is shown in Figure 1-2.

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Figure 1-2 - Applied EA Process

Determination of Project EIA Requirements

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2 PURPOSE OF THE PROJECT

2.1 Objectives

The objective of the project is to supply safe drinking water through a piped water supplysystem to the town of Phsar Chub, Banteay Meanchey Province. The project isanchored on the principal s that:

* Water can be managed as an economic good;* The project must be 'demand-driven" oriented meaning, that the prospective end

users must be wi lling and capabl e to pay for services (see sect ion 5.3),* The system will be operated and managed by a private operator (see section

3.4).

The project design is consistent with the water supply and sanitation policy framework ofCambodia, and finance investments that (i) respond to what consumers want and arewilling to pay, (ii) facilitate and develop private sector participation in financing, operatingand maintaining constructed facilities, and (iii) ensure inclusion of low incomecommunities residing in the service areas.

2.2 Public participation

Public participation and consultations of the PPUWSSP focused on the three mainobjectives mentioned above. Strategies were developed that would promote theseprinciples during the conduct of the Rapid Feasibility Study. Among these strategies arethe series of presentation and consultation activities with the different stakeholders atthe local level. The areas for consultation and negotiations were focused on thefollowing:

* Technical options for the water supply system, including environmental andsocial implications, the project investment cost, and the required equitycontribution;

* Cost recovery options and water tariff structure;* Operation and management scheme for the system; and* Project implementation arrange ment (Design/Build/Lease) of the water utili ty.

There were two levels of consultations during the feasibility study. The first level waswith the local governments (see section 5.1). The second level of consultation focusedon for the prospective users in the service areas (see section 5.2).

To proceed to full preliminary design for Phsar Chub, at least 51% of the heads ofhouseholds living within the proposed service area for Province should have indicatedtheir support for the new scheme during the Willingness-to-Connect Survey (see section5.3).

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3 PROJECT DESCRIPTION

3.1 Service area

The proposed service area or the project is shown in Figure 3-1. The central town andcentral road network, and the development east/west along NR6 and the primarynorth/south cross road. The town comprises a well-developed central core and asignificant market. There are three primary schools and one high school in the servicearea as well as the Commune and District Offices and two Wats. Other developmentcomprises an ice factory, three rice mills, a DIME warehouse, the District ReferralHospital, a health clinic and two army camps. The town of Phsar Chub encompassesfive villages.

The project will provide piped water supply for a population estimated at 4,535 personsin 832 households, with service initially to some 51 to 60 percent of the population withinthe service area at 40 I/cd, increasing to 60 I/cd and serving 90 percent of the populationin the service area. Preliminary calculations indicate a required water resource demand(ADP), at year seven and with a consumption of 60 I/cd, of 460 m3/ day.

3.2 Summary of Infrastructure

The proposed infrastructure to be constructed for the project is summarized in Table 3-1.The listing is based on the feasibility study, as prepared by GHD/FT. Figure 3-1 showsthe layout of the proposed infrastructure.

Table 3-1 - Summary of proposed infrastructural works* Groundwater abstraction via deep bores.. The establishment of a treatment plant on the land identified by the District and

Commune behind the existing DIME warehouse.* Treatment comprising aeration, pH adj ustment and disinfection.* Distribution network along the main roads. Distribution to the town in three separate

supply zones at different pressures, the High Zone serving 120 houses boosted to ahead of approx. 134 m, a Low zone comprising two thirds of the town served directfrom the CWT by gravity feed at 106 m head, and a Mid zone of about 100 houses ata head of 121.5 m.

* A single metered connection provided to each house, where it is assumed thathousehold 'water jar" storage wil I continue to be used.

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Figure 3-1 - Proposed service area and infrastructure (DRAFT)

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Source: GHD/FT, 2002

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3.3 Water quality standards

There are currently no official drinking water quality standards in Cambodia. In general,the World Health Organization (WHO) guidelines are being applied. Official standardsare however under preparation by MIME and WHO, to be submitted to the CoordinatingCommittee for Development of Water Supply and Sanitation Sector for discussion andsubsequent formal process ing.

The proposed water quality standards are included in Annex IV, and will be applied forthe proposed water supply system. The recommendations are especially important forthe Arsenic level. As it seems that the WHO guideline of lOpg/l is unrealistic to applycurrently, a (temporary) value of 50pg/l has been proposed for Cambodia. This valuehas also been applied for the current project.

3.4 Project planning and implementation

Phsar Chub is part of a first batch of the PPUWSSP, to be implemented under WorldBank financing, through the joint effort of MIME, the PPWSA, and Ministry of Finance(MoF). MIME has the implementation responsibility for the provincial town program. AProject Management Office (PMO) has been established by the MIME in Phnom Penhfor directing, supervising and coordinating all day-to-day implementation activities. TheProvincial Government of Banteay Meanchey has established a Project ManagementUnit (PMU) for actual implementation of the water system (see Annex I).

The adopted strategy for implementing the water supply systems in the towns is to bid aDesign/Build/Lease (DBL) scheme to private operators. Under the DBL scheme, MIMEwill enter into a contract with a private operator who will be responsible for the design,construction and operation of a cluster of systems. The lease contract is expected tocover a period of fifteen (15) years and will establish the conditions and provisions underwhich the operator must operate and maintain the water system. After the 15 yearscontract period, the private operator should turn over the water system in operatingconditions to MIME or may enter into a new agreement with MIME to renew the leasecontract for a similar period of time.

The project is expected to commence in the middle of 2003 with the bidding for the DBLcontract. Total project implementation is expected to cover a period of 18 months. Theconfirmation of the water sources recommended in the feasibility study, particularly thedrilling and construction of exploratory/production well, is considered a critical activity. Infact only when capacity and quality of the water sources are confirmed and detaileddesign can be prepared including any necessary revision in the scheme outlines in thefeasibility study.

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4 DESCRIPTION OF ENVIRONMENTAL RESOURCES

4.1 Physical resources

TopographyPhsar Chub is located in Banteay Meanchey province east from Sisaphon. The towncenter is well developed with a sizeable rnarket. The town contains the District andCommune Offices, the District Police Headquarters, the District Office of the Ministry ofAgriculture Forestry and Fisheries, and several army camps. In addition there are threeprimary schools and one high school within the service area as well as three Wats, theDistrict Referral Hospital and the Health Center. Commercial activities comprise themarket, one ice factory, three rice mills and a DIME warehouse. A large surface pondand smaller artesian-fed pond lie immediately west from the town center. These are theprimary water source for a significant portion of the community.

In geographic terms Phsar Chub is around 45 km to the east from Sisaphon and around375 kilometers by road from Phnom Penh. The center of Phsar Chub comprises tightdevelopment located around a network of roads of up to 4 m general width and of eitherdirt or laterite surface. From the center of the town ribbon development extends alongNR6 and the main crossroad that intersects with NR6 near the market. From this mainintersection development extends to the west for a distance of 2.8 kilometers along NR6,700 m along NR6 to the east, 1.0 kilometer along the crossroad to the north, and 1.2kilometers along the crossroad to the south. NR6 is presently being upgraded to a 9 mwide sealed carriageway. The topography within the town undulates along NR6, risingaround 30 m from the main intersection to a high point around 1.9 kilometers west fromthe town center. From here the levels fall back 18 meters to end of the westernextremity of the service area. Levels from north to south are largely uniform

The hilly areas also secure sufficient drainage conditions.

GeologyCambodia can be divided by 'geological provinces', as shown in Figure 4-1 (ESCAP,1993). Phsar Chob is located in the Northern portion of the Tongle Sap-Mekong plains.This area, including the great Lake Basin of Tongle Sap and the central valley ofCambodia, were formed by the slight subsidence of the broad central area alongnorthwest-southeast axes in the Quaternary, leading to broad areas of a Mid- to Late-Quaternary cover with a thin to moderate thickness.

The town itself is located on an outcrop of sandstone formations (Upper Permian toPaleocene 'Undifferentiated Indos inias' fomiation).

Quaternary deposits are widespread in Cambodia, especially in the broad central plainsof the Mekong and Tongle Sap River systems and across the northern uplands,generally occupying levels from 0 to 40m above sea-level. The Quaternary occupies'grabens' and depressions in the broad area, build up of intercalations of continental andmarine rocks reveali ng a history of periods of transgressi on and regression of the sea.

iIIII'Main text 4-1 February 2003


Figure 4-1 - Geological provincesopJPt. ATE1

/Ce k--t-' A%JRATANA KRI- 141HGW.ANDS \

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g s¢<~tX .xVIIAN0 . 9MMEN.TARY f : ,' \ -~~~~OLD BELT t8 A SPUS i

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Source: ESCAP, 1993

In general the followi ng Quaternary units are distinguished:* The Holocene (Q4) sediment cover is represented on the coastal and interior

plains, and in small upland valleys, by recent deposits of fluvial, lacustrine(lakes), and shallow-sea origin.

* The Middle-Upper Quaternary (Q2-3, a principal sedimentary aquifer, iswidespread in the north, southeastern and northwestern sectors of Cambodia,where it is known as the Battambang formation. On the Mekong Plain the upperQuaternary (Q3) is recognized as the Mochoa formation, occupying the 10-15mterraces in the areas southeast of Phnom Penh. It is composed of grits, sandsand clays outcropping on higher relief levels on the outer parts of the centralplains.

* Quaternary plateau basalts (QB) of Middle-Upper Pleistocene age and Neogene-Quaternary platform basaltic rocks

* The Lower Quaternary (Qj) consists of sands, silts and clay-stones of both fluvialand marine origin. It is here combined with the Pleistocene deposits (unit N2 -Q).The Middle Quaternary (Q2) of the plains comprises red sandy sedimentsoccupying terraces above 15 metres.

The whole of the Tertiary is represented by Pliocene sedimentation. The Neogene-EarlyPleistocene (N2-Q) is seen in large basins in eastern Cambodia. These are represented

.Iil"Main text 4-2 February 2003


by the Bamieu formation, comprising of clay-stones and siltstones usually laid upon well-developed conglomerate horizons. Large volumes of this material fill the broad lowlandgrabens of the Mekong valley and the Tongle Sap Region, overlain by younger alluvialmaterials. The deposits of this age are often referred to as the "alluvions anciens", the'older alluvium". These sediments generally form terrains and plains in the levels 25-150m above sea level. The upper levels are strongly laterized and this has been used asbuilding materials (for example at Angkor Wat).

Mesozoic and Paleozoic sedimentary units and intrusive rocks are generally referred tobasement rocks.

ClimateThe climatic conditions for Phsar Chub are monsoonal. Table 4-1 shows the mainclimatic parameters recorded in Cambodia.

Table 4-1 - General climate conditions in CambodiaMeasure Wet Season Dry SeasonMonths May - November December - AprilWind Direction Southwest NortheastCool Months November December - FebruaryHot Months May March - AprilCambodian Average Rainfall 1300 to 3600 mm per annumPhnom Penh Average Rainfal 1300 mm per annumMean Rainfall 200 mm per month 3 - 15 mm per month

September - October December - MarchEvaporation 69 - 105 mm per month 170 mm per monthAverage Temperatures 30 Degree Celsius April 35 Deg C peakHumidity Sept-Oct 85% average Jan-April 75% averageSource: GHD/FT, 2002

Surface WaterA small pond (15x40m, lm depth) exists in the middle of the town, supplying anestimated 500 households. The supply however is not sufficient, and people arecomplaining. The catchment of the spring is the sandstone outcrop, which is clearlyinsufficient for a sustainable supply.

Another surface water source, the Stung Anglong Thmor (river), is located east of thetown. It regualrly runs dry during the dry season, and is inadequate to support the townsupply.

HydrogeologyThe existing bores in the town were selected and tested with field equipment along withthe ponds and the shallow well referred to in the previous clause. Samples werecollected and subjected to testing by a central laboratory in a controlled environment inPhnom Penh. The bores tested had depths of 40 and 60 m respectively. The testingshowed slightly elevated levels of iron, marginally low pH. Otherwise all parameterswere acceptable.Both wells produce good flows thereby proving the existence of adequate groundwater,however exact yields have not been predicted and a reasonably conservative approachhas been adopted. On this basis, it is proposed that the scheme will require three

AIPMain text 4-3 February 2003


boreholes, each to be sunk to a depth of 60 meters. Test bores will be required to proveproduction rates and water quality.

Water testing results of two wells indicate that the ground water has largely acceptableparameters apart from slightly elevated iron (0.37 and 0.66 mg/I) and a low pH.Provision has therefore been allowed for treatment involving aeration cascades, dosingfor pH adjustment and di sinfection. Arsenic was not detected for the two wel Is.

4.2 Ecological resources

Phsar Chob is locatedon a small hill, surrounded by flat agricultural lands, mainly usedfor cultivating rice. The area has no other specific ecological resources and/or protectednature areas in the surroundings.

4.3 Socio-economical resources

PopulationA count of houses and institutions was conducted within the identified service areasduring the rapid appraisal phase and again confirmed in later town visits and surveys.Major discrepancies in the information provided by commune officials were identifiedrequiring reconciliation with the circumstances identified in the individual towns. Allinformation and statistics on population and household size were rigorously revieweddue to the impact of these on the design and sizing of the scheme. The population tobenefit from a reticulated water supply system was derived from the discussions with thecommunes and their expression of the area they would wish to see reticulated. This wasfollowed by a review of the town development, population densities and the extent towhich a viable system could be sustained on technical and operating grounds.

The total population of the service area for Phsar Chob was estimated by GHD/FT at5,830 (911 houses). No count of c ommercial establishments and institutions is available.

Population forecasts in Cambodia are hampered by an absence of reliable data andinformation on population trends. The population forecasts from the 1998 nationalcensus indicate an average annual population increase for Cambodia of 2.5 percent.This latter figure has been used for the current project.

Standard of living and IncomeIn Cambodia, a number of the population live in well-built houses (up to 60% in sometowns), although the majority, 62% overall, live in poor quality or makeshift homes. Theimmediate environment of the homes differs sharply between those located in the coreof each town, usually along the main roads, and those on the periphery or in nearbysatellite villages, which remain largely rural in character. While development is occurringin the central core of the towns, with new commercial buildings and houses now evident,the immediate surroundings are often squalid, with prominent deposits of solid wasteblocked, stagnant drains. In contrast, the areas around many homes outside the coreareas are decidedly well kept, even in the case of some of the poorest quality houses.

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With regard to the economic status of the beneficiary group, the survey indicates highlevels of poverty, with average incomes equating to some USD 0.54 per person per day(as low as USD 0.48 in Svay Rieng).

As a comparative indicator for the living conditions in Phsar Chob (GHD/FT, 2002), thetown has electricity supply from 6am to 9.30pm, supplying an estimated 74% of thehouseholds. Futhermore it is estimated that around 72% of the households own a TV.(GHD/FT).

Public HealthReviews of the health sector in Cambodia show that life expectancy and infant mortality,both principal indicators of the state of health of the population, have declined in recentyears. However, they remain high by international and regional standards, with some 56years life expectancy and 89 infant deaths per 1000 live births. Health issues thatfeature prominently in the project towns include parasite infestations, nutritionaldeficiencies, sexually transmitted diseases and waterborne diseases (e.g. diarrhea).

Diarrhea is a continuous nuisance among the population, but it also impacts economicactivity and is a life threatening hazard, especially for babies and children. The socio-economic survey carried out for this project found that at least 5 percent of householdshad suffered cases of diarrhea among its members within the previous two weeks. In theworst cases, up to 12 percent of households had suffered diarrhea among its adultmembers during this period. While the source of infection of diarrhea diseases vary,most can be attributed to polluted water supplies inadequate supplies for drinking, foodpreparation and hygiene and inadequate s anitation.

Water SupplyNo appropriate piped water supply systems exists in Phsar Chob. A small pond(15x40m, lm depth) exists in the middle of the town, supplying an estimated 500households. The supply however is not sufficient, and people are complaining. Thecatchment of the spring is the sandstone outcrop, which is clearly insufficient for asustainable supply.

SanitationWith regard to sanitation in general in Cambodia, many people (at least 49%) use fieldor bush around their homes for defecation. This arrangement is often considered moreor less satisfactory, though many town dwellers (40 %) have latrines and of those that donot, the majority (57%) would like to install one and meet the cost of doing this,suggesting a high level of awareness of sanitation issues and their role in improvedliving conditions.

In Phsar Chob, it is estimated that the use of the field, latrines and other facilities is32.4%, 4.1%, and 63.5%, respectively (FHD/FT, 2002).

As the relief is rolling, there are no special concerns for poor drainage and/or thedevelopment of stagnant water. Combined with the relative good infiltration capacity ofthe soils, there are no major problems to be expected with an increase in wastewaterflow.

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5 PUBLIC PARTICIPATION

5.1 General

To ensure that the proposed water supply and sanitation investments lead to sustainableservices in the long run interaction between the main stakeholders have beenemphasized during project preparation (i.e. DPWS/MIME, the Provincial Governments,District and Commune-level institutions, and the main direct beneficiaries of the project).Creating ownership and responsibility at the various levels is the final objective of theparticipative process.

During initial meetings with District Governors and Phsar Chub Commune Chiefs ameasure of the communities' interest in receiving a piped water supply and to participatein a sanitation program was acquired.

Subsequently, GHD/FT gathered through household questionnaires basic demographicand socio-economic information, information on existing water supply and sanitationcosts and arrangements, and basic hopes and aspirations for future improvements inthese two services. The survey team took care to ensure that sampling was doneevenly through each Commune, gaining a sample that was representative in terms ofdifferent income groups and that included any minority groups in each Commune.

Formal discussions also occurred with the Banteay Meanchey Provincial, Preah NetPreah District and Phsar Chub Commune administrations to familiarize the team withthe areas and communities and to build up confidence of the administrations andresidents in the team members. From these discussions, it became clear that theCommune Chiefs, their committees and the communities want, and would demand,information on a num ber of issues, primarily:

1. Cost (tariff and connection cost)2. Scheduling and likely implementation3. Providers (information about the possible c ompanies, namely the owners)4. Protection of consumers5. Roles of Government and authorities

5.2 Consultations with the Prospective Users

The participation of end users (the community) in the design and operation of watersupply and sanitation systems is, along with engineering, resource and environmentalconsiderations, key to the sustainability of the services to be established in Phsar Chub.Effective participation ensures that, to the extent practicable, the services provided willbe acceptable to the users, appropriate to their conditions, and affordable to them. Inorder for participation to be effective, representative views from members of differentage groups, gender, income categories, religious and minority groups need to be heardand understood.

The project comes at a time when fundamental steps have been taken by the RoyalGovernment of Cambodia to put community representation structures into place, and todevelop participatory methods for development at Commune and village level in the

.AlV"Main text 5-1 February 2003

Cambodia Provincial and Peri-Urban Water Supply and Initial Environmental Impact Assessment (IEIA)Sanitation Project (MIME / PPWSA I WB) Phsar Chub (M16), Banteay Meanchey

country, but also at a time when processes for developing such structures are still at anearly stage. The communication and information strategy for the PPUWSSP has workedwith the structures that have been, or are being set up, so as to help strengthen themand avoid the conflicts and confusion that would arise from establishing new structuresor processes. The communication and information strategy has also been arranged toensure regular and feedback to the Commune Councils, the village representatives andtheir communities.

Specific issues which were seen to require elaboration and answ ers at the Willingness toConnect stage included:

1. Connection cost and repayment scheme2. How will the operator be controlled and who wi 11 be responsible?3. If a breakdown occurs who will be responsible for the cost, especially for water

meters?4. Where would the water meter be located for households (and what distance

would the free connection be)?5. How long will it take to implement the project i f it goes ahead?

5.3 Willingness-to Connect (WTC)

ProcessThe WTC area meetings are instruments for the dissemination of key information on theproposed water supply and sanitation improvements, by means of facilitatedpresentation and discussion, hand-out leaflets and, information sheets and follow-updiscussion. The team has prepared a simple text for information brochures designed tointroduce the purpose of the project, (with reference to Government policy on water andsanitation), the basic principles behind the private sector involvement, and an outline ofwhat is planned in terms of further project preparation and the construction of facilities.These documents are contained in the V olume of Appendices.

The strategy has therefore focused on a communication process reinforcing thebeneficiaries (Commune, village and households) understanding of the project, its rulesand thereby increasing ownership. The process has also highlighted the benefits of safeand reliable water supply and sanitation and the means of achieving sustainable andaffordable town water supply systems. This underpins the foundations of the WTCprocess and has worked to establish an environment for a knowledgeable response fromthe community.

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The communications strategy involved the following initiatives in the period leading upto, and during the WTC act ivities:

* Information: Meetings organized with the Commune Chief and Commune Council toreaffirm their understanding of the project rules and the process of projectpreparation and implementation, especially for the newly-elected Commune Chiefsand Commune Councils.

* Dissemination: After the above consultation meetings, the organization of a meetingat village level with the village chief and representatives of the village developmentcommittee, where these existed, with the participation of the Commune Chief,Commune Council and MIME / Consultants for preliminary discussion about theproject rules, proposed opti ons and service.

* Decision: Thereafter a series of focused group discussions with beneficiaries(communities) on the selected options by MIME and Council to discuss theWillingness-To-Connect (WTC). These meetings were arranged with the Communeand Village representatives to determine the most suitable time, venue and structureto ensure strong attendance and participation. With the assistance of the Communeand Village representatives the WTC forms were distributed to the proposedbeneficiaries after the meeting, and a date was agreed with the beneficiaries for thereturn of the "signed WTC agreement forms" to the Commune Chief / MIME, andverification by the Commune Chief.

Results of the WTCThe Willingness to Connect (WTC) indicated that 98% of the 980 households within theproposed service area for Phsar Chub approved a tariff of 1990 Riel/m 3.

Indigenous PeopleThe project is committed and has the organizational instruments to ensure thatIndigenous People (IP) are (i) consulted in matter relating to the project, (ii) providedopportunities for participation in decision making related to the project, and (iii) providedopportunities for participation in project activities.

The project design recognizes that 'meaningful' participation by poor and disadvantagedsections of society requires special focus that goes beyond routine projectimplementation management. In this context, a parallel set of activities has beenlaunched, designed to be self-sustained beyond the project cycle. The key activities aimat empowering beneficiary populations to exercise voice and choice. Specifically, theyinclude: (a) formation of Clean Water Groups or CWGs, by which local residents acquirevoice in the construction and operational phases of the water supply infrastructure, and(b) provision of technical assistance to institutionalize CWGs as stakeholder oversightgroups to address water and sanitation access concerns, and (c) in the form of hygieneeducation and support for construction of household toi lets.

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6 ENVIRONMENTAL IMPACT ANALYSIS

6.1 Methodology

General environmental checklists were used as the basis for developing the projectchecklist that would suit the assessment intended for the proposed waterworks supplyproject. Project impacts are classified into the three stages: ')Pre-construction;2)Construction, and 3)Operation.

A rapid comparison of the 'no project" and "with project" scenarios have been carried outin the form of a Summary Matrix of Environmental Issues/impacts (Table 6-1). Thisanalysis briefly presents the main environmental issues and possible positive andnegative impacts. Impacts are classified as being significant negative environmentalimpact (-), moderate negative environmental impact (-), none or insignificantenvironmental impact (o) and be neficial environmental impact (+).

Table 6-1 - Summary matrix of Environmental Issues/impactsPhase Environmental Parameter 'No 'With

Project' Project'Pre- Reliability of water availability +Construction

Reliability of water quality - +Land acquisition and resettlement 0 0Disturbance of land use and economic activities. 0 0

Construction Disturbance of the land use 0 0Loss of natural vegetation 0Disturbance of stream channels, aquatic plant and animal 0 0habitatsSoil and water contamination 0Hindrance (noise, air pollution, traffic, etc) due to 0construction activitiesSoil erosion and compaction 0Employment 0 +

Operation Public Health -- +Contamination of stream channels 0Water logging and salinization 0 0Soil erosion O OIncrease Land Value 0 +Enhance Economic Activity 0 +

Legend:- Significant negative environmental impact- Moderate negative environmental impact0 None or insignificant environmental irmpact+ Beneficial environmental impact

Overall, the project will have a positive impact for the population of Phsar Chub.Reliability and quality of water supplies will significantly improve. Possible negativeenvironmental impacts can be miti gated properly, as elaborated in the sections below.

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6.2 Pre-Construction Considerations

Water source selectionSelection of the water source has been done on the basis of security of supply andpossibilities for protection of the source. Firstly, the water source should be sufficient toprovide enough water during the dry season, and during dryer years. Accordingly,smaller creeks and ponds were considered not acceptable. Moreover, a water source,for which the Local Government may not be able to provide proper protection againstpollution, has been rejected for the present water supply system.

The only suitable water source for Phsar Chob is groundwater. The sandstoneformations is considered an aqufer, although the yield may be low. The water testingresults indicate that the ground water has largely acceptable parameters apart fromslightly elevated iron, and a low pH. Provision has therefore been allowed for treatmentinvolving aeration cascades, dosing for pH adjustment and dis infection.

The recommended location is for an array of three bores to be located in the target zonealong the secondary road immediately west from the existing ponds. The treatmentplant will be sited on land identified for this purpose by the District and Commune, withthe site being behind the existing DIME warehouse.

Land acquisitionLand acquisition will be minimal. The scheme is based on the treatment plant beinglocated on the site of the DIME warehouse on NR6 opposite the District ReferralHospital. The District has indicated that it will make this land available for the project andindeed it is suitably located for this intended purpose.

The land for the proposed wells and pumping stations should be purchased (or madeavailable by the Commune) with official documentation as soon as the locations of wellsare confirmed by the private operator. The treatment plant will be established on the landidentified by the Commune, behind the existi ng Commune office.

It is anticipated that 1550m2 of land will be required. The acquisition of land will befacilitated by MIME as part of their responsibility to the project. If possible, the PMUrepresentative will facilitate the issuance of 'Deed of Donation" or statements on thewillingness to sell prior to the construction to avoid any conflict with the lot owner.

The laying of distribution pipes will mainly be located in public property along the roads.Only minor parts of the distribution system will have to be excavated into privateproperty. During the public consultations, the local residents expressed their cooperationto allow the laying of the pipes in their property as "right of way".

Involuntary resettlementNo resettlement will be required. The project will not negatively affect any indigenouspeople.

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Cambodia Provincial and Pefi-Urban Water Supply and Initial Environmental Impact Assessment (IEIA)Sanitation Project (MIME / PPWSA / WB) Phsar Chub (M16), Banteay Meanchey

6.3 Environmental impacts during project construction

GeneralNegative environmental impacts due to the construction of the proposed water workssystem are limited. Impacts will be mainly on the terrestrial (land), air environment andon affected persons due to noise and possibly relocation. The impacts could betemporary or permanent, significant or not significant depending on the nature andexisting quality of sensitive receptors.

Major activities for the construction will be site-clearing, excavations, pipe-laying, andmaterial hauling. Potential environmental impacts observed in similar constructionactivities include interference with existing utilities, damage to properties (e.g.displacements, cracks, etc.), and conflicts with existing transportation infrastructure. Alldamages can be mitigated by applying proper professional construction methods andsupervision of compliance with international standards.

Common other impacts from construction activities like dust, noise, limited erosion, andtraffic effects can not be fully mitigated, but can be kept within acceptable limits byapplying professional standards and construction methods.

The construction of the water supply is not expected to have significant impacts ondrainage characteristics of the region. However, it will be important to avoid localflooding or the blocking any natural drainage channel during construction. If applicable,appropriate temporary drainage infrastructure will have to be constructed.

Site specific impactsAs groundwater will be abstracted from the sandstone formation with possible fractures,groundwater pollution may be a concern. Regular monitoring of upstream possiblepolluting activities is required.



To deal with possible higher (or uncertain) concentrations of Arsenic in groundwater, theproject will apply the following mitigation measures:* Selection of the most suitable well locations, based on the findings of a groundwater

investigation conducted during the feasibility study (geophysical survey, water qualitysampling program);

* Anticipation of water treatment facilities (aeration) in project locations where higherArsenic concentration could be expected.

* Extensive water quality testi ng of all new wells, as included in the DB L contract.* Allocation of a special budget for possible new well or additional water treatment

facilities after water testing of the actual completed wells.

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Economic impactsThe construction of the system may have some negative impacts on the income ofselected people. Agricultural activities are disturbed, and some damage to the soil canbe expected due to the construction activities and the increased traffi c.

Compensation to affected persons will be applied according to general project rules(using market values) as set out in the Operations Manual, prepared in accordance withstandards and regulations of the Government of Cambodia.

Please note that positive economic impacts are expected during construction. A localworkforce will be employed by the DBL Operator during construction, estimated atapproximately 350 man-m onths (unskilled labor) until completion of the project.

6.4 Environmental impact during project operation

As the proposed project will improve the existing water supply and sanitary conditions inthe town, considerable benefits will be achieved for improving public health situationduring the operation of the project. The installation of water meters and appropriatepricing of water will reduce leakage and thus result in water conservation.

It is acknowledged that the construction and improvement of the water supply conditionswill increase the amount of toilet waste and wastewater. Especially a possible changefrom pour flush to flush type toilets and the direct disposal of the effluent of septic tanksinto the surface water or drainage system are concerns.

No significant problems with existing onsite sanitation facilities is anticipated. Theinfiltration capacity of the soils in Phsar Chub Touch is generally good, and the watertable is sufficiently deep.

The main environmental risk regarding (temporary) disruption of the water supply service(e.g. through mal-performance of the operator) is that currently used water sources maynot be available anymore to fall back to. It is therefore necessary to continue protectingthe traditional ponds and water sources from pollution and depleti on.

There are no environmental harmful materials to be disposed of in case of a failure ofthe project.

6.5 Summary of significant environmental impact

Depending on the implementation and precautions taken by the contractor, theconstruction activities may have various adverse environmental impacts. Although mostof them are temporary, they should be mitigated in the best poss ible manner.

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In summary, the most significant adverse environmental impacts are:* Damage to soil and natural habitat (tem porary);* Contamination of soil and water (tem porary);* Hindrance to local population, e.g. noise, air pollution, and traffic (temporary);* Increase of wastewater flow (continuous).

A higher concentration of Arsenic is a potential risk for all water supply systems.Extensive water quality testing will be carried out for the water source duringdevelopment and operation. If necessary, new water sources will be developed.

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7 ECONOMICAL ANALYSIS AND ENVIRONMENTAL VALUE

7.1 General

The project is considered economically feasible and sustainable. The water supplysystem will operate on a commercial basis, and all operating and maintenance costs arein principle paid through the water fee. By securing a reliable water source, sufficientpressure in the network, a minimum number of connections during the preparationstage, and by creating sufficient incentives and obligations for the operator to providegood services, it is not foreseen that the water supply will be disrupted once initiated.

7.2 Financial Data

The following summarizes the principal financial data, as prepared in the feasibility studyby GHD/FT.

Capital CostConstruction cost of Basic Scheme is USD297,812 . Total Project Capital Cost aftercontingencies etc. is USD379,231 .

Additional capital requirements for the Alternatives are:Construction US D 8,920 / Total US D 11,359Construction US D 4,000 / Total US D 5,094

Tariff and Financial returnsThe financial model indicates the following tariffs for the different levels of capitalrecovery and the required return to the investor at Phsar Chub.

MIME TARIFFS Net Present Value ofFIRR to Capital Recovery Riel / m3 Basic Scheme -

Operator USDBasic Alt' A Alt' B Alt's MIME OperatorScheme A+B

20% 90% 2215 2255 2235 2275 - 82,890232,766

20% 50% 1960 1990 1970 2000 -274,546 40,57820% 0% 1640 1655 1640 1660 -326,976 -12,6310% 100% 2180 2220 2200 2245 -- --

For each chosen tariff level the financial model indicates the FIRR on the totalinvestment, and on the operator's investment, for each ten percent decrease in therecovery of the Government's investment.

Impact of Alternatives(based on tariff for 20% FIRR to Operator and 50% Capital Recovery to MIME)

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NATURE OF INCREASE IN TARIFFALTERNATIVE Riel / m3 (%)Scheme including 30 R / (1.5%)Altemative A aloneScheme including 10 R / (0.5%)Alternative B aloneScheme including both 40 R / (2.0%)Alternatives A & B

Sensitivity AnalysisThe sensitivity analysis shows the impact on the investor's return for any reduction insales (revenue) for a 10, 15, and 20 percent reduction. The sensitivity analysis hasadopted the basic scheme option with a 90% Capital recovery by MIME (RGC ).

Reduction in demand Reduction in households Residual Households Retum to Investor(revenue) connected10% reduction 83 749 12.2%15% reduction 125 707 negative20% reduction 166 666 negative



8 ENVIRONMENTAL MANAGEMENT PLAN

8.1 Introduction

Based on the findings of the environmental assessment and the discussions held withthe concerned local residents, the Local and National Governments, an EnvironmentalManagement Plan has been drafted, including an Environmental Mitigation Plan (EMiP)and an Environmental Monitoring Plan (EMoP).

By submitting the present IEIA, the Ministry of Industry, Mines and Energy certifies thatto their knowledge all the information in the enclosed IEIA for Phsar Chub (M16) is true,accurate, and complete (see Annex V), and is committed to its proper implementation(see section 9.1)

8.2 Environmental Mitigation Plan

Table 8-1 summarizes the main environmental concerns, the necessary actions andmitigation measures to protect the environment, and the responsibilities of the differentparties.

8.3 Environmental Monitoring Plan

In Table 8-2 the required Environmental Monitoring Plan is presented. It is considerednecessary that selected data will be collected on a regular basis for the properimplementation and monitoring of environmental mitigation measures, as described inTable 8-1.

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Table 8-1 - Environmental Mitigation PlanPhase Mitigation measures Responsibility SchedulePre- * Lack of control of water source: Acquire land MIME, World Bank Prior to DBLconstruction directly around the facilities (or secure a Contracts

possible purchase);* Reduction in flow: Locate the well in an area

where other water users are not affected.* Disturbance of land use and economic

activities: Usage of public areas; Provisionfor proper compensation.

* Risk of Arsenic in groundwater: design ofproper treatment facility.

Construction * Disturbance of land use due to Operator, with Continuousdrilling/construction: Minimize impacts, supervision of duringRestore damages. MIME consultant construction

* Loss of natural vegetation: Replanting of phase.affected areas.

* Disturbance of stream channels, aquatic plantand animal habitats: Erosion andsedimentation control.

* Soil and water contamination (e.g. spilling ofoil products and other construction materials):Control (collection, disposal) of waste water.

* Hindrance (noise, air pollution, traffic, etc)due to drilling/construction activities: Minimizehindrance; Usage of main roads whenpossible.

* Soil erosion and compaction: Proper runoffand erosion control measures; Heavy trafficrestrictions.

* Safety hazards: Proper safety and warningmeasures; Provision of temporarycrossings/bridges; Public informationcampaign.

Operation * Public health hazards due to increase of Operator, with To bewastewater: Support the construction of supervision of determinedproper on-site sanitary facilities (i1 lacking); MIME during feasibilityImprove storm drainage system for sullage; study.

* Contamination of the groundwater: Acquireand fence a protection zone directly aroundthe well; Regulate potential polluting activitiesin recharge zone; Monitor water level andgroundwater abstraction.

* Lowered groundwater table: Space wells atlarger distances; Avoid over-abstraction andconsequent lowering of groundwater table;Calculate safe yield (abstraction);Assure/proof that other water users are notaffected.

* Increase of noise: Usage of electricalsubmersible pumps; Construction of pumpinghouse.

* Water availibility: keep traditional watersources available.



Table 8-2 - Environmental Monitoring PlanPhase Monitoring activities Responsibility ImplementationPre- * Land acquisition: Check if the MIME, World Bank Prior to DBL Contractconstruction required land has been acquired

properly, or that a proper 'Deed ofSale/Donation" has been prepared.

* Resettlement and Compensation:lfapplicable, check if properarrangments are made anddocumented.

Construction * Hindrance to local population: Noise, Operator, with Continuous, throughair pollution (odor, TSP, fume supervision of MIME regular constructionemissions), land damage, traffic. consultant supervision.

* EMP compliance of the contractors:Erosion control, vegetationprotection, soil and watercontamination.

* Safety precautions of contractors:Conform professional standards.

* Sanitary control: Proper constructionof on-site facilities; Properconstruction of sullage drainagesystem.

Operation . Quality of distributed water: conform Operator, with Regular, according toofficial standard procedures supervision of MIME professional standards.(microbiology, standard parameters,Arsenic, heavy metals);

* Groundwater resources: water level(2 X per month (after pumpingrecovery period); operation of pumps(abstraction).

AAIl-Main text 8-3 February 2003


9 INSTITUTIONAL RESPONSABILITIES AND CAPACITY

9.1 Project Implementation

The responsibilities for implementation and monitoring of the Environmental SafeguardFramework (ESF) are summarized in Table 9-1. The Ministry of Industry, Mines andEnergy has the overall responsibility for the proper implementation of the EnvironmentalSafeguard Framework (ESF), i.e. project implementation and compliance monitoring.The actual project management will be the responsibility of the Project ManagementOffice (PMO) in Phnom Penh. Consultants will be engaged to provide assistance duringproject preparation, and for supervis ing design and construction of the systems.

The daily supervision of the construction and operation of the MIME sub-projects will becarried out by the Provincial Project Management Units (PMU). PMU staff will report tothe PMO.

Table 9-1 -Responsibilities for ESF Implementation and Compliance MonitoringAgency Principal project linkages Compliance Monitoring

MIME/PPWSA Main linkage to MoE and WB-EASUR Implements compliance monitoringPMOs agreements.

Prepares compliance monitoring reportsfor MoE and WB.

Provincial PMUs Report to MIME PMO.

Ministry of Implements compliance monitoringEnvironment (MoE) procedures: e.g. review of compliance


WB Operations Provides 'No-Objection Letters' to Implements compliance monitoringDepartment MIME/PPWSA for sub-project procedures: e.g. review of compliance(EASUR) implementation, after clearance from monitoring reports and field inspections.

EASES

WB Environmental Provides Environmental Clearances for Implements compliance monitoringDepartment (EASES) (sub)-projects to EASUR procedures: e.g. review of compliance


Supervision Support PMOs and PMUs. Supervises work of DBL contractors.Consultants Support PMO/PMUs to prepare

monitoring reports.

DBL Contractors Report directly to MIME-PMO Implement EA requirements.Prepare compliance monitorng reportsand submit to MIME.

.. l -Main text 9-1 February 2003


9.2 Compliance Monitoring

All projects are subject to periodic compliance monitoring by the World Bank (and forlarger projects also the MoE). The primary purpose of compliance monitoring is toensure the implementation of sound and standard environmental procedures as definedduring the project preparation. Specifically, it aims to:

* Monitor project compliance with the conditions set i n the operating permit;* Monitor compliance with the EMP and applicable laws, rules and regulations; and* Provide a basis for timely decision-making and effective planning and

management of environmental measures through the monitoring of actual projectimpacts vis-a-vis the predicted impacts i n the EA.

The need for compliance monitoring is established at the time the approval of the WorldBank and/or MoE is issued, which will allow MIME to issue an operating permit and DBLContract. The Permit/Contract sets the conditions for the monitoring activities andscheduling. As a minimum requirement in compliance monitoring, the activities to bemonitored by the PO should correspond to the conditions in the operating permit andEMP. In addition, the operating permit conditions may also require the proponent toundertake industry self-monitoring and submit the required r eports.

General aspects to be covered in the Compliance Monitoring, as detailed in the EMP,includes:

* Coverage of Monitoring;* Frequency of Monitoring;* Standard procedures/methods of monitoring (e.g. labeling, transport and

handling of samples) and laboratory analysis;* Selection of sampling stations;* Manpower requirements; and* Logistics.

The water supply system operator and the PG, with the assistance of PMO/consultants,will monitor compliance with the operating permit and carry out the requisite datacollection during both the construction and operational phases. Monitoring reports to besubmitted to the MoE and the PMO w ill include:

* Presentation of the collected data;* Discussion on the compliance or non-compliance to the EMP and operating

permit;* Conclusions and recommendations.

The PMO is requested to summarize the finding of the quarterly monitoring reports andsubmit an annual compli ance report to the World Bank.

9.3 Implementing Capacity

Budget / ScheduleA special budget will be allocated for overall Project supervision and monitoring,including compliance monitoring of the EMP. Monitoring will be carried out by MIME andWorld Bank staff.

.Il 'Main text 9-2 February 2003


Staff skillsThe capacity of MIME to properly monitor the project is admittedly limited. AlthoughMIME has skilled and motivated staff, current financial, institutional and logisticalconstraints will obviously be a major factor in the successful implementation.

To reduce the amount of compliance monitoring, many of the responsibilities have beenincluded in the Operators contract. Regular monitoring reports will be provided, whichwill include a Chapter on environmental compliance monitoring.

Methodological tools and equipmentThe principal equipment required as part of the compliance monitoring is for waterquality testing. Most of the field equipment is already available and applied by MIME aspart of their ongoing activities. Additional field equipment will be purchased during theproject. More specialized water quality testing for the compliance monitoring (e.g.Arsenic) will be carried out by certified laboratories.

Daily water quality testing during the operation of the water supply system is part of theoperators contract obli gations.

TrainingEnvironmental Management training will be provided 'on-the-Job', as part of the overallmonitoring activities to be carried out. Support will be provided by World Bank staff ifrequired.

AlPvmain text 9-3 February 2003


10 CONCLUSIONS AND SUGGESTIONS

GeneralThe Project, endorsed and approved by the and the beneficiaries of Phsar Chub(Banteay Meanchey Province) and the Ministry of Industry, Mines and Energy is notexpected to create adverse potential environmental impacts. The impacts can beprevented and mitigated to an acceptable level using proven engineering practice andother measures. The proposed development of a water supply system would bebeneficial to the entire municipality. It will bring significant health improvements throughimprovement of water supply and sanitary conditions. It will also increase economicdevelopment of the area, resulting in increased land values and employment.

The Willingness to Connect (WTC) indicated that 98% of the 980 households within theservice area of P hsar Chub approved a tariff of 1990 R iel/m3.

No resettlement will be required. The project will not negatively affect any indigenouspeople.

List of Resolved IssuesThe provision of clean and safe water will bring a significant improvement in the publichealth conditions of the participating households. It is expected that a decrease in thenumber of cases of water-borne diseases (diarrhea, gastroenteritis and parasitism) willoccur.

The environmental monitoring program will provide the necessary data for improvedenvironmental management of the water supply facilities. This will enable Ministry ofIndustry, Mines and Energy to identify and present solutions to possible environmentalrisks and concerns.

Proper sanitation and wastewater disposal mechanisms will be encouraged through asanitation component to mitigate the adverse effect of an increase in the production ofwastewater, especially in areas with poor drainage and high groundwater levels. Nosignificant problems with existing onsite sanitation facilities is anticipated. The infiltrationcapacity of the soils in Phsar Chub Touch is generally good, and the water table issufficiently deep.



List of Partially Resolved IssuesAll possible precautions will be taken to minimize negative impacts during theconstruction phase. Damage to soil and water will be restored and properly

AA - Maintext 10-1 February 2003


compensated. Other limited negative impacts that can not be fully mitigated (noise,traffic) will only be temporary.

Economic losses due to construction activities will be compensated according tostandards developed and agreed upon with the Royal Government of Cambodia.

New issues arising from the IEIA that have been resolvedThe IEIA emphasized on proper water source selection and protection, as currentlyincorporated in the feasibi lity study and final designs.

i|| I Main text 10-2 February 2003

Cambodia Provincial and Peri-Urban Water Supply and Initial Environmental Impact Assessment (IEIA)Sanitation Protect (MIME / PPWSA / WB) Phsar Chub (M16), Banteay Meanchey

11 PRINCIPAL REFERENCES.

PPUWSS ProjectGHD/Fraser Thomas, 2002 - Phsar Chub Feasibili ty Study report (M16, Banteay

Meanchey).GHD/Fraser Thomas, 2002 - Phsar Chub Willingness to Connect Report (M16, Banteay

Meanchey).GHD/Fraser Thomas, 2003 - Strategic Sanitation Plan for the .MIME/PPWSA, 2003, Environmental Assessment Operation Manual. Draft, Version 1.2,

January 2003. Prepared with support from Frank Radstake.Parsons - DRAFT technical specifications for the 'Provincial and Peri-Urban water

supply project'.

Kingdom of CambodiaAtlas of Mineral Resources of the ESCAP Region, Volume 10, Cambodia, 1993.MIMENWB, 2001 - Regulatory Reform of the Water Supply and Sanitation Sector;

Cambodia Urban Water Supply. Draft final report, prepared by FraserThomas Partners and Sarin and A ssociates.

MOE - List of the Projects Require an IEIA or EIA; Annex of Sub-Decree No 72 AN RK.BK. Date 11 August, 1999.

MRD/JICA, 1999 - The study on Groundwater Development in Southern Cambodia.Draft Final Report, September 1999. Prepared by Kokusai Kogyo Co., Ltd.

MRD/JICA, 2001 - The study on Groundwater Development in Central Cambodia.Interim Report, prepared by Kokusai Kogyo Co., Ltd.

MRD/MIME, 2001, Drinking water quality Assessment in Cambodia. In cooperation withthe Cambodian Ministry of Rural Development and the M inistry of Industry,Mines and Energy. Prepared by Peter R. Feldman and Jan-WillemRosenboom, and supported by the WHO.

Royal Government of Cambodia (1 996) - Law on Envi ronmental Protection and NaturalResource Managem ent

Royal Government of Cambodia (1997) - Sub-decree of Construction License (No. 86)Royal Government of Cambodia (1 999) - Sub-decree on Water Pollution (No:

27.ANRK.BK)Royal Government of Cambodia (2001)- Sub-degree on Environmental Impact

Assessment process. No: 72.ANRK.BKRoyal Government of Cambodia (-) - Guideline for conducting E nvironmental Impact

Assessment (EIA) report. Draft only. Ministry of Environment.

World Bank GuidelinesWorld Bank, 1991. Environmental Assessment Sourcebook; Volume l: Policies,

Procedures, and Cross-Sectoral Issues. WB Technical Paper 139.World Bank, 1991. Environmental Assessment Sourcebook; Volume I: Sectoral

Guidelines. WB Technical Paper 140.World Bank, 1999. Operational Policy 4.01: Environmental Assessment.World Bank, 1999. Bank Procedures 4.01: Environmental Assessment.World Bank, 2001. Operational Directive 4.12: Involuntary Resettlement.World Bank, 2001. Bank Procedures 4.12: Involuntary Resettlement.World Bank, 2001. Operational Policy 7.50: Projects on International Waterways.

.Ai|| Main text -1 1 February 2003


Annex I - List of EA preparers

MIME staffMr. Peng Navuth, Director, Public Water Supply DepartmentMr. Sin Vaidia, Deputy Director DPWS, PPLUWSSP Project ManagerMr. Cheav Channy, Deputy Chief of Technical Office, D PWS

Local Government RepresentativesMr. Pang Po, Commune Chief, P hsar Chob

Mr. Voeuk Ran Deputy, Director of DIME, P MU ChiefMr. Heng Sopheang, Chief of Industrial A ffair Office, PMU MemberMr. Im Noy, Chief of Industrial Affair Office,at District Level, PMU MemberMr. Neak Sovanna, Vice Chief of Metrology Office, PMU MemberMr. Nhil Bunthoeun, Vice Chief of Power Office, PMU Member

World Bank supervisionMr. P. lllangovan, Senior Environmental SpecialistMr. Vijay Jagannathan, Task Team LeaderMr. Luiz Tavares, Senior Sanitary Engineer

ConsultantFrank Radstake, Environmental and Water Resources Management Advisor

With support from GHD/FT.

.dil Annexes DRAFT, February 2003


Annex II - WTC Process d ocumentation

GeneralThe meetings and discussions in each town conformed to a set pattern, varied only bythe individual requests for change on the part of the Communes:

1. The first day in each Province was devoted to the PMU training andfamiliarization workshop.

2. On entering a District the teams paid a short courtesy visit to the DistrictGovernor and the senior advisors to reinforce the project objectives and rules,and to seek his/her advice on matters they should take into account in theirsubsequent meetings.

3. The teams would then meet with the Commune Chief(s) and Commune Councilmembers with an established agenda providing for:* Introduction of participants and the facilitator* Briefing on the meeting - why (project information sheet), objectives and

action plan* The project - background, rules, roles and responsibilities, structure and

implementation, and benefits* Feasibility Study - outline of work, technical options, management

options, financial options and costs, tariffs* Open forum - questions and answers* Action planning - arrangements for area-wide meetings of villagers,

schedule for meetings, program for area-wide meetings* Additional roles and responsibilities - Commune support and attendance

at area-wide meetings, roles of Commune Chiefs and Commune before,during and after the village meetings

* Willingness-To-Connect - how to distribute the agreement forms andgenerate the 51% positive return required, The involvement of theCommune Chiefs in collecting the returns and validating the responses,and confirmation and synthesis of agreement.

4. The teams also met with the Village Chiefs and members of the VillageDevelopment Council, if one existed. More often than not the Communepreferred the two meetings to occur together to ensure the same information wasrelated to all parties and that a uniform interpretation of this was resolved.Where separate meetings occurred, these followed the same agenda as themeetings with the Communes.

5. On reaching agreement for the program and timing of the village meetings theteam then departed for another town and meetings there with the Commune andVillage Chiefs. After a space of several days the team returned to conduct thearea-wide meetings, thus allowing time for local organization and arrangementsfor the meetings.

.. I PPAnnexes DRAFT, February 2003


6. The area-wide meetings occurred in each village in a location suitable to thevillagers. The pictorial displays and samples of fittings, meters and materialswere used to support the presentation. The meetings were participatory andencouraged viewpoints and questions. In general the presentation followed thefollowing structure:e Explanation of the purpose of the meeting - indication of the participatory

nature and indication that vi ews were welcome and invited* The project - background and descri ption, socio-economic benefits* Presentation of options - summary of Feasibility Study, technical options,

financial options, tariffs* Open forum - questions and answers* Summation and closure

7. Prepared information kits of all relevant information in the Khmer language wereleft with the Commune Chief and Commune members, the Village Chiefs andDevelopment Committee members, and key/influential persons within eachvillage - to ensure that advice could be provided to villagers seeking elaborationconcerning the project.

8. Following work in each group of towns the teams were debriefed in theConsultants' office in Phnom Penh to embody the lessons learned and to refinethe process.

At the conclusion of the above meetings the teams left WTC forms with the CommuneChiefs with instructions for their completion by the villagers. These instructionsrequested that:

1. The issue and collection of the forms should be controlled to allow these to bereconciled later for the calculation of the WTC ratio.

2. The forms should be distributed and collected by each Village chief.3. The forms should be verified by the Commune to confirm:

* The signatory was a bona fide head of household, or so authorized* The location of the property was correctly i dentified* There was only one form from each household

That the signatory was in fact the identified person (most signatures arein the form' of a thu mbprint).

4. The forms were collected around a week later and brought to the Consultants'office and subjected to a further audit and recount.

5. The forms have been collated, bundled and boxed for future reference, and willbe handed over to MIME for safekeeping.

6. During the in-house audit a number of incomplete forms were observed andseparated from the correctly-completed returns. MIME will need to follow-up onthese returns to establish the intent of the signatory, to avoid later disputeregarding the provision of a free connection, or otherwise.

AilP"Annexes II DRAFT, February 2003

Cambodia Provincial and Pen-Urban Water Supply and Initial Environmental Impact Assessment (IEIA)Sanitation Project (MIME / PPWSA/WB) Phsar Chub (M16), Banteay Meanchey

Phsar Chub (M16) WTC SummaryThe following summarizes the findings of the WTC survey in Phsar Chub, as providedby GHD/FT. More details can be found in the W illingness-to-Connect report.

1. Service AreaThe central town and central road network, and the development east/west alongNational Route #6 (NR6) and the primary north/south cross road. The town comprises awell-developed central core and a significant market. There are three primary schoolsand one high school in the Service Area as well as the Commune and District Officesand two Wats. Other development comprises an ice factory, three rice mills, a DIMEwarehouse, the District Referral Hospital, a health clinic and two army camps. The townof Phsar Chub encompasses five villages.

2. Number of Households in S ervice AreaService Area contains 980 households. Number confirmed by discussions with theDistrict and Commune Governm ents and inspection and count i n the field.

3. Consultation ProcessThe feasibility design, and related options, and the tariffs have been presented to, anddiscussed with the District and Commune governments at Phsar Chub. Similarly thefeasibility designs and related tariffs have been conveyed to area-wide meetings ofvillagers residing within the proposed supply areas. The presentation and meetingshave conformed to the communication strategy displ ayed to, and agreed with MIME.

4. OptionsThe technical options considered for Phsar Chub and evaluated in the Feasibility Studywere discussed with MIME before finalising the report and proceeding with the WTCprocess. The scheme comprises:* A borehole array and treatment plant located at the existing DIME warehouseapproximately halfway up the rise, and opposite to the District Referral Hospital* Three supply zones, high, medium and low level* A small elevated supply tank at the summit of the bill above Phsar Chub to serve thehigh zone* the medium zone is served from the high-zone pumps, through a pressure-reductionmechanism, and the low zone is gravity-fed.

This scheme has been adopted, not only because the site has been allocated by theDistrict / Commune and therefore is readily av ailable, but it is also well-placed for servingthe town.

The use of an elevated tank for the high-zone as an alternative to direct pressureboosting (as at other towns) has been adopted even though it results in higher capitalcosts (and hence tariff), because it offers a more robust operating regime underconditions of high or excessive demand.

Groundwater resources represent the only viable supply for the town. Preliminarycalculations indicate a required water resource demand (ADP) at year seven andconsumption of 60 Uc.d of 545 m3/day. Three bores will be required along a shortarray along the secondary road adjacent to the treatment site.

.4 IP'"Annexes III DRAFT, February 2003


The scheme therefore provides for the extraction of groundwater via these bores,treatment comprising aeration and disinfection, and reticulation to the households withinthe Service Area.

MIME agreed with this approach and authorized that the above scheme for the coretown and outlying villages with a tariff of 1,990 Riel per cubic metre (R/m3). This optionwas placed before the community under the WTC process.5. WTC ResponseThe WTC returns have been audited, recounted and reconciled against the formsissued, the number of returns received, the unused forms and those unaccounted forthrough non-return from the village households that have refrained from indicating anopinion one way or the other. Similarly the number of households has been reconciledfor the calculation of the WTC ratio.

The WTC indicate that 97.6% of 980 households within the service area of Phsar Chubapproved a tariff of 1,990 Riel /m3. (see Annex l1l).

Community QuestionsThe following summarizes the main questions which were raised during theconsultations with the benfeciaries of the projec t.

Question 1: Will the water tariff be increased?Answer 1: Only in terms of inflation so that the costs of the scheme can continue to bemet, but only then if MIME is satisfied the increases are justified and required to offsetincreased costs.

Question 2: When will the water supply scheme start operating?Answer 2: Depends upon a satisfactory WTC return ( > 51% ) and finalisation of theloan agreement between the World Bank and the Royal Government, then upon thereceipt of acceptable bids for the design build and operation activity. Therefore possiblyfrom late 2003 onwards.

Requests for Scheme VariationsThere were no requests for scheme variation or extension of the Servi ce Area.

dl P"Annexes Vl' DRAFT, February 2003


Annex III - Proof of social acceptability

WTC COUNT - VILLAGE RETURNS

TOWN M16 - PHSAR CHUB

COUNTERS / SCRUTINEERS. KOMPIIEARA AND SIZANA DATE 2250 November 2002

VILLAGE YES NO SPOILT TOTAL FS COUNT^____ ____ ___ ISSUED _ _ _ _ _ _ _

Chub Veary CommuneI Raoul Chhrouk 93 0 I 942 Chub 185 0 0 1853 Chakrey 367 0 0 3734. Phnom Chonhc haeng 205 12 5 2225 Kok Loun 106 0 0 106

TOTAL 956 12 12 980 832 /951

WTCPerentage 97.6%X +7_

-indicates house count by Consultants In Rapid Appraial stage Icheck count followng WTC

Source: GHD/FT

.iIP "Annexes V DRAFT, February 2003


Annex IV - Applied Water Quality Standards

The following water quality standards are proposed at a seminar workshop on thedevelopment of national drinking water quality standards for Cambodia, Phnom Penh,June 24-25, 2002.

Table 1. Standard Values for Bacteriological QualityBacteria Standard value

(number/1 OOmi)I All drinking water supplies under all E. coli or thermotolerant (fecal) 0

circumstantces coliform bacteria11 Treated water entering the E. coli or thermotolerant (fecal) 0

distribution system coliform bacteriaIlIl Treated water in the distribution E. coli or thermotolerant (fecal) 0

system coliform bacteriaTotal Coliforms* 0

In case of large quantities where sufficient samples are examples, it must not be present in 95% ofsamples taken throughout any 12-months period.

Table 2. Standard Values for Chemical Quality: Health significance

A. Inorganic constituentsParameter Maximum level (mg/liter)antimony 0.005arsenic 0.01barium 1boron 0.5cadmium 0.01chromium 0.05cyanide 0.07fluoride 1.5lead 0.01mercury (total) 0.001molybdenum 0.1nickel 0.02nitrate (as NOD) 50nitrite (as NO2 3selenium 0.01^ Proposed interim Maximum Allowable Concentration until June 2007:

Arsenic 0.01-0.05

.AiI"Annexes VI DRAFT, February 2003

Cambodia Provincial and Pen-Urban Water Supply and Initial Environmental Impact Assessment (IEIA)Sanitation Project (MIME I PPWSA / WB) Phsar Chub (M16), Banteay Meanchey

B. Organic constituentsConstituent Maximum level (pg/liter)*PesticidesAldrin/Dieldrin 0.03Altrazine 2Chlordane 0.2DDT 2Endrin 0.2Heptachlor and Heptachlor epoxide 0.03Lindane 2

Aromatic hydrocarbonsPetroleum oils & grease 0Benzene 10Toluene 700Xylene 500Ethylenzene 300Benzo[a]pyrene 0.7

Cyanobacteriacterial toxinsMicrocystin-LR^^^ 1*Note: The unit used in this table is uigIL =mgY/1000.**Constituents can be added or deleted depending on the pesticides use in Cambodia.***Microcystin-LR is an emerging concem in Cambodia in both urban and rural areas using surface water fordrinking.

Table 3. Standard Values for Physical and Chemical Quality: Aesthetic QualityParameter Level (mg/l)Taste AcceptableOdor AcceptableColor 10TCUTurbidity 5 NTUAluminum 0.2Ammonia 1.5Chloride 300Copper 2Hardness 300 (as CaCO 3)aHydrogen Sulfide 0.05Iron 0.5Manganese 0.5pH 6.5 - 8.5 (no unit)Silver 0.1Sodium 200Sulfate 500Total Dissolved Solids (TDS) ioobZinc 5aTCU - true color unit, NTU - nephelometric turbidity unit" Secondary standards; compliance with the standard and analysis are not obligatory.b TDS consist of calcium, magnesium, potassium, sodium, bicarbonates, chlorides and sulphates.

.lIP'Annexes VIl DRAFT, February 2003

Cambodia Provincial and Peri-Urban Water Supply and Initial Environmental Impact Assessment (IEIA)Sanitation Project (MIME / PPWSA / WB) Phsar Chub (M 16), Banteay Meanchey

Table 4. Standard Values for Disinfectant and Disinfection By-ProductsParameter* Maximum Level (mg/L)

a. DisinfectantChlorine (residual) 0.2 - 0.5

b. Disinfection By-productsChlorite 0.22,4,6 trichlorophenol 0.2**Formaldehyde 0.9Trihalomethanes:

Bromoform 0.1Dibromochloromethane 0.1Bromodichloromethane 0.06Chloroform 0.2

Analyze only where chlorination is used for disinfection purposes** Represents health-based guideline value for phenolic substances

Table 5. Standard Values for Radiological ConstituentsConstituents Activity level (Bq/litre)Gross alpha activity 0.1Gross beta activity 1Analyze only when appropriate; not for regular monitoring purposes.

4 IP'"Annexes Vill DRAFT, February 2003


Annex V - Accou ntability statement of project owner

ACCOUNTABILITY STATEMENT OF THE PROJECT OWNER

This is to certify that to our knowledge all the information in the enclosed InitialEnvironmental Impact Assessment (IEIA) for Phsar Chub (Banteay Meanchey Province)is true, accurate, and complete. Should we learn of any information which would makethe enclosed IEIA inaccurate, we shall bring said information to the attention of theMinistry of Environment.

We hereby bind ourselves jointly and solidarity with the preparers for any penalties thatmay be imposed arising from any misrepresentations or failure to state materialinformation in the enclosed IEIA.

Ministry of Industry, Mines and Energy

Title/Designation

.i"P'Annexes IX DRAFT, February 2003

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