Cambodia: Water Resources Management Sector Development Program

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1 Progress Report on Tranche Release Project Number: Loan Number: 2673 September 2011 Cambodia: Water Resources Management Sector Development Program

2 CURRENCY EQUIVALENTS (as of 15 August 2011) Currency Unit riel (KR) KR1.00 = $ $1.00 = KR4,099.8 ABBREVIATIONS ADB Asian Development Bank ADF Asian Development Fund AusAID Australian Agency for International Development CNMC Cambodia National Mekong Committee COM Council of Ministers CSIS Cambodian Irrigation Scheme Information System FWUC farmer water-users community IWRM integrated water resources management ITC Institut de Technologie du Cambodge MAFF Ministry of Agriculture, Forestry and Fisheries MOWRAM Ministry of Water Resources and Meteorology NDF Nordic Development Fund NSDP National Strategic Development Plan OFID OPEC Fund for International Development O&M operation and maintenance SAW Strategy on Agriculture and Water SDP sector development program SDR special drawing rights TA technical assistance TSA Tonle Sap Authority TSC Technical Services Centre of MOWRAM WRMSDP Water Resources Management Sector Development Program NOTES (i) The fiscal year (FY) of the Government of Cambodia and its agencies ends on 31 December. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2010 ends on 31 December (ii) In this report, "$" refers to US dollars unless otherwise stated.

3 Vice-President B.N. Lohani, Vice-President-in-Charge, Operations 2 Director General K. Senga, Southeast Asia Department (SERD) Director J. Mir, Environment, Natural Resources and Agriculture, SERD Team leader Team members C. Wensley, Lead Water Resources Specialist, SERD S. Aman-Wooster, Senior Social Development Specialist, SERD N. Ikemoto, Senior Natural Resources Management Specialist, SERD P. Long, Senior Project Officer, SERD C. Razon, Project Analyst, SERD K. Watanabe, Water Resources Specialist, SERD S. Zaidansyah, Counsel, Office of the General Counsel In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

4 CONTENTS Page I. INTRODUCTION 1 II. STATUS OF FIRST-TRANCHE RELEASE POLICY ACTIONS 2 A. Enhanced Capacity of the Government to Manage Water Resources 2 B. Enhanced Capacity of MOWRAM to Manage and Deliver Irrigation Services 4 III. CONCLUSION 5 IV. THE PRESIDENT S DECISION 6 APPENDIXES 1. POLICY MATRIX AND SUMMARY STATUS OF FIRST TRANCHE CONDITIONS 7

5 I. INTRODUCTION 1. On 23 September 2010, the Asian Development Bank (ADB) approved the Cambodia Water Resources Management Sector Development Program, comprising (i) a program component to address national water resources management and irrigation policy issues in Cambodia; (ii) a project component to assist the Ministry of Water Resources and Meteorology (MOWRAM) rehabilitate small- to medium-scale irrigation systems and deliver irrigation services within the Tonle Sap Basin; and (iii) associated capacity development technical assistance (TA) to support policy and institutional reforms and capacity development in the water sector The ADB financing includes: an Asian Development Fund (ADF) loan of special drawing rights (SDR) million ($20.0 million equivalent) for the program; an ADF loan of SDR million ($10.0 million equivalent) and an ADF grant of $2.8 million for the investment project; and a Technical Assistance Special Fund grant amounting to $1.0 million for the associated capacity development TA. Co-financing is being provided by (i) the OPEC Fund for International Development (OFID), through a $12.00 million loan for the investment project; (ii) the Government of Australia, through provision of A$5 million ($4.55 million equivalent) for the capacity development TA on a grant basis via the Australian Agency for International Development (AusAID); and (iii) the Nordic Development Fund (NDF), through 3.0 million ($3.75 million equivalent) for the capacity development TA on a grant basis. The program loan agreement and the project financing agreement were declared effective on 3 June ,3 3. Cambodia s economy is highly dependent on water. The importance of water for food production, rural livelihoods and economic development is recognized in the Government s Rectangular Strategy on Growth, Employment, Equity and Efficiency (Phase 2, 2008), the National Strategic Development Plan Update (NSDP, ), and the Strategy for Agriculture and Water Resources (SAW, ). Rainfall distribution and river discharges are highly seasonal, variable and unpredictable, with a natural pattern of wet and dry seasons, typhoons, floods and droughts. Coupled with this, the annual rise and fall of the Mekong River has both positive and negative effects sustaining the critical water cycles of the Tonle Sap Lake and Lower Mekong delta necessary for agriculture and fisheries production, but with the potential to cause major flooding and damage to infrastructure and crops, and loss of life. 4 It is anticipated that climate change will increase water management challenges; less rainfall is anticipated during the dry season and more during the wet season, with more frequent extreme weather events and potentially worse seasonal water shortages and floods. 4. The sector development program supports the process of (i) strengthening national water sector policy, and the regulatory and institutional environment; (ii) improving integrated water resources management (IWRM) performance in river basins, focusing on the Tonle Sap basin and the Stung Sen sub-basin; and (iii) strengthening irrigation services in a selected area of the Tonle Sap basin. These are the three main thrusts of ADB s Water for All policy. 5 The impact of the proposed sector development program will be enhanced food security. The 1 ADB Report and Recommendation of the President to the Board of Directors on Proposed Loans, Grants and Technical Assistance Grant, to the Kingdom of Cambodia for the Water Resources Management Sector Development Program. Manila. [Loans 2672(SF)-CAM, 2673(SF)-CAM and 8253-CAM, Grant 0220(SF)-CAM and TA 7610-CAM]. This is a sector development program in accordance with ADB s Operations Manual (OM), Section D5. 2 The expected loan closing date for the program loan (Loan 2673-CAM) is 30 June 2013 and for the project loan and grant (Loan 2672-CAM and Grant 0220-CAM) 30 June The conditionalities under the first tranche of the program loan were not met within 6 months of Board approval, and this progress report is therefore being circulated for information in accordance with OM Section D4/OP, para About 86% of Cambodia lies within the Mekong basin, about 20% of which is in Cambodia. 5 ADB Water for All: the Water Policy of the Asian Development Bank. Manila

6 2 outcome will be improved management of water resources and more efficient and sustainable irrigation services in the project area. The sector development program has three key outputs; the program loan will provide budget support to the government to finance outputs A and B through counterpart funds as outlined in the government's development policy letter and policy matrix. Details of outputs A and B are as follows: (i) Output A: Enhanced capacity for sustainable water resources management. The sector development program will strengthen (i) the enabling policy, regulatory and institutional environment to coordinate and collaborate on water resources management; (ii) strengthen MOWRAM's capacity to promote IWRM in river basins; and (iii) ensure adequate human resources are available for carrying this out. (ii) Output B: Enhanced capacity of the Ministry of Water Resources and Meteorology to manage and deliver irrigation services. The sector development program will support MOWRAM to implement activities identified under the SAW and to improve its organization and financial management at national, provincial and local levels by (i) supporting implementation of the SAW; (ii) strengthening the organization, administration and technical capacity of MOWRAM, provincial departments of water resources and meteorology, and district offices; (iii) providing adequate budgets for operation and maintenance (O&M); and (iv) developing the capacity of government staff and farmers to carry out sustainable O&M. 5. Policy dialogue on water sector policy issues for the development of the sector development program began in May 2008 under the project preparation TA 6 and identified a total of 21 conditions in two policy areas for two tranche releases, as indicated in the policy matrix in Appendix 1. The first tranche, amounting to SDR 6,603,000, will be available for release upon full compliance with the 9 first-tranche conditions. All conditions for the first tranche release have been complied with. The second tranche of SDR 6.604,000 will be released about 24 months later, subject to the government s full compliance with the secondtranche conditions. II. STATUS OF FIRST-TRANCHE RELEASE POLICY ACTIONS 6. The Water Resources Management Sector Development Program supports two policy areas that the government recognizes as critical: (i) enhancing Cambodia s capacity to manage water resources, and (ii) enhancing its capacity to deliver irrigation services. A. Enhanced Capacity of the Government to Manage Water Resources 7. The Law on Water Resources Management of 2007 states that water resources will be managed through an IWRM process, and appoints MOWRAM as the lead agency for water resources management in Cambodia, in consultation with other line ministries. 7 The law establishes the legal framework for water resources management, but the necessary subdecrees and implementing regulations have not yet been finalized and approved. The sector 6 ADB Technical Assistance to the Kingdom of Cambodia to Prepare the Water Resources Management (Sector) Project. Manila (TA 4848-CAM, approved for $1.3 million on 16 October 2006). 7 Other ministries with important agencies with roles in water resources management include the Ministry of Environment; the Ministry of Health; the Ministry of Industry Mines and Energy; the Ministry of Rural Development; the National Committee for Disaster Management; the Ministry of Agriculture, Forestry and Fisheries; and the Ministry of Public Works and Transport.

7 3 development program supports the development of legislation and implementing regulations for the sub-decrees in (i) establishment of farmer water-user communities (FWUCs), (ii) water allocation and licensing, (iii) river basin management, and (iv) water quality. 8. While coordination mechanisms exist for certain issues, there is no regular mechanism for broad intersectoral coordination of water issues at the national or river basin level. 8 The sector development program will assist the government to (i) review and strengthen existing inter-ministerial arrangements for coordination of national water resources management, and (ii) improve coordination at the river basin level. 9. The status of the policy conditions under the first tranche to support the development and strengthening of government capacity to manage water resources is as follows: 1. Strengthen Overall Strategy and Policy Framework 10. The Borrower shall have launched the Rectangular Strategy on Growth, Employment, Equity and Efficiency (Phase 2), which includes agricultural development and water resources management objectives among its priorities (complied with). On 26 September 2008, the Prime Minister addressed the first cabinet meeting of the 4th Legislature of the National Assembly and articulated the Rectangular Strategy for Growth, Employment, Equity and Efficiency Phase II. The published address highlights agriculture development and water resources management among its priorities. 11. The Borrower shall have adopted the National Strategic Development Plan (NSDP) update ( ), which includes water sector investment as a key focus (complied with). On 30 June 2010, His Majesty the King of Cambodia signed the Royal Decree for the NSDP Update The NSDP highlights water sector investment as a key focus. 12. The Borrower through the Ministers of MOWRAM and MAFF shall have endorsed the program of the Strategy on Agriculture and Water (SAW) for the period of 2010 to 2013 (complied with). On 22 April 2010, the Ministers of MOWRAM and Ministry of Agriculture, Forestry and Fisheries (MAFF) endorsed the Program Design Document for SAW The signed memorandum of understanding (MOU) between the two ministries endorsed a detailed and comprehensive $500 million program of activities for agriculture development and water resources management during that is supported by the two ministries. 2. Strengthen Legal Framework for IWRM 13. The Borrower through MOWRAM shall have submitted the sub-decree on the procedures for the establishment of farmer water-user communities (FWUCs) to the Council of Ministers (COM) for endorsement (complied with). The Minister of MOWRAM submitted the draft subdecree on establishment of FWUCs to the COM for endorsement on 28 October The subdecree has not yet been adopted by COM. The other three subdecrees river basin management, water quality, and water licensing under the Law on Water Resources Management (2007) are currently being finalized by MOWRAM. 14. The Borrower through MOWRAM shall have (a) established an inter-ministerial working group on the development of the ministerial level committee for national coordination of water resources management; and (b) ensured that the working group 8 The Cambodia National Mekong Committee (CNMC), reporting to the Minister for Water Resources, was set up to liaise between the government and the Mekong River Commission; it is responsible for linking water management in the Mekong region with the water resources of Cambodia. The Tonle Sap Authority, chaired by the minister, coordinates development activities in the Tonle Sap basin, in close cooperation with MOWRAM and CNMC.

8 4 has held its first meeting (complied with). On 1 February 2011, the Minister of Water Resources issued Decision No. 046 authorizing the establishment of the interministerial working group for the development of a ministerial level committee for national coordination of water resources. Members of this working group include the MOWRAM secretary of state as chairman, the secretary general of the Ministry of Economy and Finance as vice-chairman, and members from MAFF, Ministry of Industry, Mines and Energy, Ministry of Public Works and Transport, Ministry of Land Management and Urban Planning and Construction, Tonle Sap Authority (TSA), Cambodia National Mekong Committee, and MOWRAM s technical departments at a senior management level. The working group held its first meeting on 28 June 2011 to initiate its activities, and the approved minutes of the meeting have been received by ADB. The next meeting will be conducted following mobilization of the capacity development TA consultants, expected in November 2011, to adopt a work program for the establishment of the interministerial committee. 3. Support Tonle Sap Basin Coordination and Collaboration 15. The Borrower shall have issued a Royal Decree to (a) establish the Tonle Sap Authority (TSA); (b) appoint the senior management of the TSA; and (c) define the organizational structure of the TSA (complied with). The Royal Decree on the establishment of the TSA was signed by His Majesty the King of Cambodia on 29 June In July and August 2009, subdecrees were issued by the Prime Minister appointing the Minister of MOWRAM as the chairman of the TSA, appointing its members and senior management, and defining the organizational management structure. The sector development program will assist the government to prepare a strategic plan for the TSA. B. Enhanced Capacity of MOWRAM to Manage and Deliver Irrigation Services 16. MOWRAM is responsible for the management and delivery of irrigation services and the sector development program will assist in strengthening MOWRAM s capabilities in service delivery, including the development of irrigation infrastructure, O&M of irrigation schemes, and supporting farmers in managing minor irrigation schemes and works. Although MOWRAM currently oversees and develops investment projects with its own budget and external assistance, it needs (i) further institutional support and capacity strengthening in a range of administrative and technical areas at the central and provincial levels; (ii) a clearer demarcation of responsibilities between MOWRAM, provincial departments of water resources and meteorology and FWUCs; and (iii) improved linkages with MAFF provincial departments of agriculture. 17. Cambodia needs more water resources management specialists and irrigation engineers. MOWRAM faces challenges in engaging and retaining appropriately qualified engineers, requiring it to be proactive in their recruitment and placement. The sector development program will assist the Rural Engineering Department of the Institut de Technologie du Cambodge (ITC) to provide specializations in water resource management, irrigation engineering, on-farm water management and hydrology. It will also support the expansion of MOWRAM s Technical Services Centre (TSC) in providing training for irrigation O&M for MOWRAM staff, members of FWUCs, and irrigators; and coordinating with MAFF extension services in agriculture. 18. The status of the policy conditions under the first tranche to support the development and strengthening of MOWRAM s capacity to manage and deliver irrigation services is as follows:

9 5 1. Develop Technical Skills (tertiary) at ITC 19. The Borrower through MOWRAM and ITC shall have appointed the working group to develop a time-bound plan for ITC to deliver bachelor and post-graduate engineering degree courses in water resources management (complied with). On 28 January 2011, the Minister of MOWRAM issued Decision No. 038 authorizing the establishment of the interministerial working group to develop a time-bound plan for ITC to deliver bachelor and postgraduate engineering degree courses in water resources management. Members of this working group include the secretary of state of MOWRAM as chairman, secretary of state of the Ministry of Education, Youth and Sport (MEYS) as vice-chairman, and members from ITC and MOWRAM s technical and administrative departments at a senior management level. 2. Strengthen MOWRAM s Internal Linkages between Line Departments/Human Resources Development planning for MOWRAM, PDWRAMs, District offices and FWUCs 20. The Borrower through MOWRAM shall have appointed a working group to (a) provide guidance on the strengthening of MOWRAM line departments; and (b) develop a training needs assessment and prepare a human resources development plan (complied with). On 8 November 2010, the Minister of MOWRAM issued Decision No. 178 of MOWRAM authorizing the establishment of a working group for human resources development within MOWRAM. Members of this working group include the director general of MOWRAM s Directorate of Technical Affairs as chairman, director of MOWRAM s Department of Administration and Human Resources as vice-chairman, and members from MOWRAM s technical and administrative departments at a senior management level. 3. Adoption of Asset Management System 21. The Borrower through MOWRAM shall have established the Cambodian Irrigation Scheme Information System (CISIS) to function as an asset management system (complied with). MOWRAM nominated counterpart staff for conducting CISIS activity on 16 June 2008 (MOWRAM decision No. 969). The CISIS is a comprehensive asset management database of irrigation systems including details of the infrastructure (condition and age), service areas, cropping patterns and socioeconomic data which is being developed as the basis for estimating O&M requirements. Work on developing the CISIS has continued under funding from the Agence Française de Développement, although this support will end in 2011, and future development and use of the CSIS will be supported under the sector development program. III. CONCLUSION 22. Cambodia has made good progress in water sector policy development, in particular in the two key policy areas of (i) enhancing Cambodia s capacity to manage water resources, and (ii) enhancing MORAM s capacity to deliver irrigation services. All nine policy actions for the first-tranche release of the Water Resources Management Sector Development Program have been fully complied with, although compliance was delayed as a result of the delayed declaration of effectiveness of the OFID and ADB financing. The status of compliance with these policy actions is summarized in Appendix 1. This progress report has been prepared because the conditionalities under the first tranche of the program loan were not met within 6 months of Board approval of the WRMSDP (on 23 September 2010).

10 6 IV. THE PRESIDENT S DECISION 23. In view of the progress made in the implementation of the Water Resources Management Sector Development Program, as evidenced by the full compliance with the nine first tranche release conditions, the President will authorize the release of the first tranche in the amount of SDR6,603,000. The authorization shall be effective not less than 10 working days after circulation of this progress report to ADB s Board of Directors.

11 POLICY MATRIX AND SUMMARY STATUS OF FIRST TRANCHE CONDITIONS Output (A): Enhanced Capacity of the Government to Manage Water Resources Policy Initiative/Objective Measures Prior to the First Tranche Release a A.1. Strengthening Strategy, Policy and Legal Framework for IWRM A.1.1. Strengthen overall (i) The Government will have launched the strategy and policy Rectangular Strategy on Growth, Employment, framework Equity and Efficiency (Phase 2), which includes agriculture development and water resources management among its priorities. A.1.2. Strengthen Legal Framework for IWRM [The Strategy on Agriculture and Water (SAW) A.3.1] c A.1.3. Implement National Water Resources Policy (ii) The Government will have adopted the National Strategic Development Plan (NSDP) update ( ) with water sector investment included as key focus. (iii) The Government through the Ministers of MOWRAM and MAFF will have endorsed the Program of the Strategy on Agriculture and Water (SAW) for the period have submitted the sub-decree on the establishment of the farmer water user communities (FWUCs) to the Council of Ministers (COM) for endorsement. Status of Compliance with First Tranche Release Conditions (and Supporting Documents) Complied with. Address by the Prime Minister on Rectangular Strategy for Growth, Employment, Equity and Efficiency Phase II at the first cabinet meeting of the 4th legislature of the National Assembly, dated 26 September Complied with. Royal Decree of His Majesty the King of Cambodia on Promulgation of the Law on the Adoption of the NSDP Update , dated 30 June Complied with. Endorsement by the Ministers of MOWRAM and MAFF on the Program of the SAW , dated 22 April 2010, as reflected in the Program Design Document for SAW Complied with. The submission letter of the Minister of MOWRAM to the COM, dated 28 October Measures Prior to the Second Tranche Release b The Government will have issued either sub-decrees or Prakas on: (a) the procedures for the establishment of FWUCs; (b) river basin management, (c) water allocation and licensing; and (d) water quality. The Government through the ministerial level committee for coordination of water resources management shall have (a) commissioned a review of the natural water resources plan ( ); and (b) issued recommendation for the preparation of the national water resources plan ( ). Appendix 1 7

12 Policy Initiative/Objective Measures Prior to the First Tranche Release a A.2 Improving Coordination and Cooperation Framework for IWRM A.2.1 Improve National The Government through the MOWRAM will Coordination and have (a) established an inter-ministerial working Collaboration on Water group on the development of the ministerial Resources Management level committee for national coordination of water resources management, and (b) ensured that the working group has held its first meeting. Status of Compliance with First Tranche Release Conditions (and Supporting Documents) Complied with. The working group was established on 1 February 2011 (Decision No.046), chaired by the secretary of state, MOWRAM and secretary general of MEF as vice-chair. The members are senior management nominated from MOWRAM, MOE, MAFF, MIME, MPWT, MLMUPC, TSA, and CNMC. The first meeting was held on 28 June Measures Prior to the Second Tranche Release b (i) The Government will have established and operationalized a ministerial level committee for national coordination of water resources management to be chaired at the highest level of Government and include relevant Ministers as members, and supported by an inter-ministerial secretariat. (ii) The Government will have created an inter-ministerial secretariat for the ministerial level committee. 8 Appendix 1 (iii) The Government through the ministerial level committee for national coordination of water resources management will have issued a policy that will clarify the coordination and cooperation mechanisms between CNMC, TSA, MOWRAM and river basin committees. A.2.2 Support Tonle Sap Basin Coordination and Collaboration [SAW E.2.2] The Government will have issued a Royal Decree to (a) establish the Tonle Sap Authority (TSA), (b) appoint the senior Management of the TSA, and (c) define the organizational structure of the TSA. Complied with. Royal Decree of His Majesty the King of Cambodia on Creation Tonle Sap Authority, dated 29 June The Government through TSA will have approved and begun implementation of the Tonle Sap Strategic Plan. A.2.3 Pilot Test Mechanisms for River Basin Level Coordination and Collaboration [SAW E.2.4] (i) The Government through MOWRAM will have commenced the pilot activity in the Stung Sen River Basin and one other basin. (ii) The Government through MOWRAM will have established the Stung Sen River Basin committee.

13 Policy Initiative/Objective Measures Prior to the First Tranche Release a Status of Compliance with First Tranche Release Conditions (and Supporting Documents) A.3 Strengthening MOWRAM's Technical Capacity to Promote IWRM and Climate Change Adaptation A.3.1 Water resources are assessed at a nationwide scale [SAW E.2.3] A.3.2 Water data management is improved [SAW E.1.3] A.3.3 Improve flood and drought forecasting [SAW E.1.8] A.3.4 Mainstream IWRM and adaptation to climate change A.4. Human Resources Capacity Development to Promote IWRM A.4.1 Technical Skills The Government through MOWRAM and ITC Development (tertiary) at will have appointed the working group to Institut de Technologie du develop a time-bound plan for ITC to deliver Cambodge (ITC) [SAW bachelor and post-graduate engineering degree C.1.4] courses in water resources management. Complied with. The working group was established on 28 January 2011 (Decision No.038), chaired by the secretary of state, MOWRAM with the secretary of state of the Ministry of Education, Youth and Sports (MEYS) as vice-chair. The members are senior management nominated from MOWRAM technical and administrative departments and ITC. Measures Prior to the Second Tranche Release b have prepared and approved a national water resources profile. have prepared and begun implementation of the improved water data management plan. have developed and adopted, in consultation with NCDM, CNMC, and other relevant stakeholders, plans for improved flood and drought forecasting taking into account climate change. The Government through the ministerial level committee for national coordination of water resources management will have established procedures to mainstream (a) IWRM in the national water resources plan; (b) climate change adaptation in IWRM plans and actions, and (c) IWRM in climate change adaptation plans and actions. The Government through MEF will have commenced implementation of the plan developed by ITC and MOWRAM for effective delivery of bachelor and postgraduate engineering degree courses in water resources management. Appendix 1 9

14 Output (B): Enhanced Capacity of MOWRAM to Manage and Deliver Irrigation Services Policy Initiative/Objective Measures Prior to the First Tranche Release Status of Compliance with First Tranche Release Conditions (and Supporting Documents) B.1. Strengthening Policy, Planning and Legal Framework for Irrigation Management and Service Delivery B.1.1 Legal status of irrigation works - improve security of water users (farmers) access to irrigation scheme assets in the long term through some form of ownership or community stewardship [SAW A.3.2 A.3.4] B.2. Improve Organizational Structures and Administrative and Technical Capacity of MOWRAM, PDWRAMs and District Offices B.2.1 Improve the planning, budget and financial management processes, in line with the PFM reform program. [SAW B.2] B.2.2 Strengthen management information systems (MIS) for administration and finance at national, provincial, district levels and consolidated at central level [SAW B.3] Measures Prior to the Second Tranche Release have (a) adopted guidelines for division of asset responsibility between the government and water users, and (b) assigned appropriate responsibilities and rights for irrigation infrastructure to respective FWUCs within the WRMSDP Project area. have (a) aligned its planning, budget and financial management systems with the PFM for rural development program (PFMRD), (b) extended the Strategic Budget Planning (SBP) Framework in all its departments, and trained staff in BSP process, and (c) aligned its budgets with the government Chart of Accounts in accordance with the Ministerial Action Plan under PFMRD. The Government through MOWRAM and PDWRAMs will have reviewed MIS for administration and finance and have completed a time-related development plan. 10 Appendix 1

15 Policy Initiative/Objective Measures Prior to the First Tranche Release Status of Compliance with First Tranche Release Conditions (and Supporting Documents) B.2.3. Strengthen MOWRAM s internal linkages between line departments B.2.4 Strengthen PDWRAMs, District Offices, and linkages to PDAs [SAW A.1.2] have appointed a working group to provide guidance on the strengthening of MOWRAM line departments. d B.3. Strengthen MOWRAM's Ability to Manage, Operate and Maintain Irrigation Systems B.3.1 Strengthen MOWRAM's O&M planning processes. [SAW E.3.6] B.3.2 adoption of an asset management system to manage, operate and maintain irrigation systems [SAW E.1.1, E.1,2] B.3.3 Sustainable Funding Mechanisms for O&M [SAW E.3.7] have established the Cambodian Irrigation Scheme Information System (CISIS) as an asset management system. Complied with. The working group was established on 8 November 2010 (Decision No.178), chaired by the director general for Technical Affairs, MOWRAM. The members are directors of departments of Administration and Human Resources, Planning and International Cooperation, and Water Resources and Conservation of MOWRAM. Complied with. The letter by MOWRAM No. 969 MOWRAM, dated 16 June 2008 to nominate counterpart staff for conducting CISIS activity and CISIS progress report issued by MOWRAM in June Measures Prior to the Second Tranche Release have (a) completed the review of the organizational structure, capacity, systems and staff resources of MOWRAM, and (b) defined the appropriate demarcation of responsibilities within MOWRAM for water resources management and irrigation service delivery. The Government through MOWRAM and MAFF will have (a) completed the review of PDWRAM capacity, systems and staff resources and defined the demarcation of responsibilities for operation and maintenance of irrigation infrastructure between MOWRAM and PDWRAM, and (b) completed the review of roles of District Agricultural Offices in irrigation and water resource management. have prepared, adopted and implemented a comprehensive irrigation O&M Plan. have operationalized the CISIS for asset management and maintenance planning and developed appropriate audit controls. have (a) assigned FWUCs with the responsibility to collect water fees in accordance with the prevailing regulations on FWUCs, and (b) refined the management of the irrigation maintenance fund. Appendix 1 11

16 Policy Initiative/Objective Measures Prior to the First Tranche Release Status of Compliance with First Tranche Release Conditions (and Supporting Documents) B.4. Develop Human Resources Capacity to Manage, Operate and Maintain Irrigation Systems (Government and FWUCs) [SAW E.3.7] B.4.1 Human resources development (HRD) planning for MOWRAM, PDWRAMs, District offices and FWUCs [SAW B.1.1] have appointed a working group to develop a training needs assessment (TNA) and prepare a human resources development plan. (See item B.2.3 and footnote Error! Bookmark not defined.) Complied with. (see item B.2.3) Measures Prior to the Second Tranche Release have initiated implementation of the agreed recommendations of its training needs assessment and HRD training plan. 12 Appendix 1 B.4.2 Technical skills development (vocational training) [SAW C.1.2 and C.1.3]. have (a) developed and delivered training courses through TSC to include on-farm water management and irrigation practices, and maintenance of major and minor irrigation works, and (b) harmonized the training curriculum between the FWUC Department and TSC. CISIS = Cambodian Irrigation Scheme Information System, CNMC = Cambodia National Mekong Committee, COM = Council of Ministers, FWUC = farmer water-user community, HRD = human resources development, ITC = Institut de Technologie du Cambodge, IWRM = integrated water resources management, MAFF = Ministry of Agriculture, Forestry and Fisheries, MOE = Ministry of the Environment, MOWRAM = Ministry of Water Resources and Meteorology, MTEF = Medium-Term Expenditure Framework, NCDM = National Committee for Disaster Management, NSDP = National Strategic Development Plan, O&M = operation and maintenance, PDA = Provincial Department of Agriculture, PDWRAM = Provincial Department of Water Resources and Meteorology, PFM = Public Financial Management, SAW = Strategy on Agriculture and Water, SBP = Strategic Budget Planning Framework, SOP = Standard Operating Procedures for Externally Financed Projects/Programs in Cambodia, TSA = Tonle Sap Authority, TSC = Technical Services Centre of MOWRAM, TWGAW = Technical Working Group on Agriculture and Water, UNFCCC = United Nations Framework Convention on Climate Change a The Water Resources Management Sector Development Program was initiated in May b The references in bold refer to core actions required for the release of the tranches of the program loan. The other actions are included as non-core actions which are nevertheless important and included to monitor progress of the program. c The numeric references to [SAW x.xx] indicate the item within the harmonized program of the Strategy on Agriculture and Water (SAW). d The working group established herein will be the same working group to be established under the first tranche action for Policy Initiative/Objective B.4.1.

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