Chapter I

CHAPTER I.

Overview of Project, Expected Problems, and NGO Reponses

This report focuses on JICA’s application of its new environmental and social guidelines to a road project in Cambodia. NGOs in Cambodia congratulate JICA for establishing its new Guidelines for Social and Environmental Considerations (hereafter, the new Guidelines), as only donors with good environmental and social guidelines can be expected to properly protect the rights of project-affected-people. We are concerned, however, that JICA has not yet achieved its goal to respect the principles of the new Guidelines in regard to its work on National Route One. The Resettlement Action Network, a network of the NGO Forum on Cambodia, wishes to point out problems and urge JICA to take concrete measures to implement the spirit and principles of the new Guidelines more effectively.

In late August 2004, NGO Forum on Cambodia received an anonymous phone call for help from a member of a local community living along Cambodia’s National Route One. He told us that he was forced into agreeing to a relocation package that would scarcely compensate him for his losses. He reported that when he tried to disagree, he was told that his house would be demolished without compensation and that he would have to pay for the cost of the bulldozer. The team that came to him to seek his agreement for the relocation package included local authorities and police. His story was similar to those heard four and a half years ago from residents affected by the rehabilitation of a different portion of the same road financed by the Asian Development Bank (ADB). This led to the impoverishment of around 6,000 people (approximately 1,200 families). The Japan International Cooperation Agency (JICA) is currently conducting preparatory studies and supporting the resettlement practices of the Royal Government of Cambodia in preparation for the expansion of National Route One, from Phnom Penh to Neak Leung. If measures are not taken soon, this will result in the same impoverishment on a much larger scale than the ADB portion of the road.

For months before this phone call, the Resettlement Action Network (RAN), a network of around 20 NGOs belonging to the NGO Forum on Cambodia working on housing rights and resettlement issues, had been working together to ensure the well-being of communities who are expected to be negatively affected by the rehabilitation of National Route One currently being studied by JICA. We have conveyed concerns and made recommendations to the Japanese Ministry of Foreign Affairs and JICA, drawing lessons from problems that occurred in past road projects, in particular the ADB-funded National Route One Improvement Project. RAN has also been closely monitoring the studies done by JICA thus far, and has gathered information from communities living along National Route One. While studies on resettlement issues were conducted by JICA and some remedial measures have been prepared, this report, “Aiding the National Route to Poverty?” concludes that measures thus far have been insufficient to prevent the impoverishment of affected people.

1.1 Project Background

Under the framework of the Greater Mekong Subregion Program, which aims to improve various networks among Mekong Basin countries, road rehabilitation projects in Cambodia have been promoted and financed by aid agencies in recent years. National Route One is a 166 kilometer road linking Phnom Penh and Ho Chi Minh City, and forms part of the Second East-West economic corridor plan to connect the countries of Vietnam, Cambodia and Thailand. The section between the east side of the Mekong River to Ho Chi Minh City has already been reconstructed with financing from the ADB. [Top]

Improvement of the 56 kilometer section of National Route One to the west of the Mekong River is now being considered for financing with a grant from the Japanese government. JICA is conducting the preparatory studies required for the Japanese government to make a decision about whether or not it will commit to providing a grant for the project. The Feasibility Study was completed in March 2003 (Pacific Consultants International, et al., 2003), and the Preparatory Study in December 2003. The Basic Design Study (Japan International Cooperation Agency (JICA) and Japan Overseas Consultants Co., Ltd., 2003) is ongoing as of the writing of this report.

1.1.2 Purpose of Road Expansion

According to the 2003 Feasibility Study, improvement of National Route One is expected to accomplish the following:

“ensure road transport throughout the year by upgrading to a flood free road to an all-weather standard.
Secure traffic safety and conserve environment by separating slow-moving vehicles such as motorcycles and motorcycle trailer (“moto-remorks”).
stimulate economic and social development by connecting major productive centers to urban centers to provide better market accessibility, allow more competition and stable prices as well as to increase job opportunities for the poor.
strengthen linkages between producing and consuming centers and between exploited resources and trading gateways by the improvement of the arterial road to an international standard. This will encourage the ongoing transition to market economy that has opportunities for reducing poverty” (Pacific Consultants International, et al., 2003).

1.1.3 Extent of Road Expansion

The 2003 Feasibility Study proposes extensive expansion of the road, which is currently as narrow as 12 meters in some sections. Depending on the road’s proximity to rural and urban areas, the proposed width and extent of expansion differs. In urban areas, the proposed width of the road is 14 meters, and in rural areas, it is proposed to be between 19 to 24 meters wide.

Other aspects of the proposed project include replacing existing bridges, water gates and culverts, constructing new ones, and increasing the height of the road. The exact locations of areas to be widened are currently being determined in the Basic Design Study.

The extent of land that will be required for the project will not be clear until the road design is completed. According to the Preparatory Study, up to 30 meters from the center of the road would be required on both sides, and 1,898 buildings would be affected. Information about the precise number of households to be affected is not available to NGOs from JICA. [Top]

1.2 Lessons from Past Road Projects in Cambodia

NGOs in Cambodia, namely RAN members, have been working together with communities whose standards of living were greatly reduced due to the reconstruction of the section of National Route One funded by the ADB. Although the NGOs do not oppose improvement of National Route One per se, we are seriously concerned that the communities to be affected by expansion of the remainder of the road will suffer similar consequences leading to their impoverishment.

The ADB-funded National Route One rehabilitation project resulted in relocation of approximately 1200 households (approximately 6000 people) who lived within 30 meters of either side of the centerline of the road, even though the actual width of the new road is only around 14 meters. The loan from the ADB was approved in December 1998, and resettlement of communities began in February 2000. ADB policies require consideration of social and environmental impacts and participation of affected communities in decision-making, but they were not strictly enforced. As a result, the communities affected by the ADB-funded project were severely impoverished.

Little compensation was given for losses that resulted from the project, such as loss of livelihood, houses, and moving costs. Cambodian government officials reportedly told affected communities that the small amount of cash that the government was delivering to the communities should not be considered “compensation,” but simply a “contribution” to relocation costs. One reason the Cambodian Government was able to do this was because of an edict issued in 1999 that declared all land within 30 meters of the centerline of the road to be public land. The communities living in this area were thus suddenly labeled “illegal occupants,” and no compensation for their loss of land was provided. Many were deeply indebted by their resettlement. Some people are still refusing to relocate fearing the grave and irreversible consequences to their lives.

Another significant problem with the project was that during the formulation and implementation of the project, information dissemination to the communities was scarce, and participation of the communities in decision-making was hardly ensured. Not only did the communities not have opportunities to voice their opinion about the compensation content, they were told to thumbprint documents approving their relocation and amount of compensation in spite of having little, if any, information about the project or their rights. Appendix A3 provides further information on problems that occurred in the ADB-funded project. To this day, neither the ADB nor the Cambodian government has resolved many of the problems faced by these communities. [Top]

1.3 NGO Advocacy to JICA for Prevention of Further Impoverishment

In spite of the suffering experienced by communities affected by the ADB-funded rehabilitation of National Route One, the 2003 Feasibility Study prepared by JICA for the expansion of the Phnom Penh-Neuk Leung section of the road concluded that "there are neither substantial nor irreversible adverse environmental and social impacts arising from the Project. No adverse social impact is expected because the project only involves the improvement of existing roads and no land acquisition for road right-of-way is required additionally.” JICA appears to accept the explanation that local communities living in the ROW are “illegal occupants,” and does not seem to consider their loss of land to be a significant social impact. Furthermore, the scope and rate of compensation, as well as the procedures for resettlement proposed in the 2003 Feasibility Study are similar to insufficient scope, rate, and procedures used for the ADB-funded project.

Fearing that the same tragedy would be repeated in the section of National Route One being studied by JICA, NGOs began conveying concerns to the Japanese Government and JICA. In November 2003, a letter endorsed by 6 NGOs was sent from Legal Aid of Cambodia to the Japanese Ministry of Foreign Affairs explaining the problems with the ADB-funded road expansion (see Appendix A3). The NGOs requested that the studies be suspended until a comprehensive review of the ADB-funded project is conducted, and that public consultations be held to explain the lessons from the ADB experience to people to be affected by the JICA portion of National Route One.

The Japanese government had actually already recognized that the 2003 Feasibility Study was not satisfactory and decided to examine this project in light of JICA’s new Guidelines for Environmental and Social Considerations, even though assistance for the project was requested prior to the enactment of these new Guidelines.

As a result of the Japanese government’s decision, a Preparatory Study focusing on resettlement issues was conducted, and conditions were put forward to the Cambodian Government for Japanese Government consideration of financing for the project. These conditions were: i) agreement to the road improvement project and to relocation (if necessary) by 70-80% of all communities possessing assets within 30 meters of the center of the road, and ii) agreement to the compensation packages by all affected people. NGOs also received a letter from JICA’s headquarters in Tokyo in March 2004 affirming its policies on social considerations and explaining that measures are being prepared, including modification of TORs for future studies.

The Cambodian Government is now conducting a survey to obtain agreement to compensation packages called the “PAP’s Survey,” and this study seemed to have begun in August 2004, around the time when the NGO Forum received the anonymous phone call seeking help from an affected person.

After the Preparatory Study, RAN sent members to the field to meet affected people and find out how they would be impacted by resettlement due the to National Route One Improvement Project. Then, in September 2004, RAN members also conducted a counter survey to the PAP’s Survey. RAN’s counter survey was of 74 households who were interviewed by the PAP’s Survey team, and results indicate that intimidation was used.

We are now taking the results of our counter survey to JICA and the Japanese Government, and we seek to prevent the rehabilitation of National Route One from leaving a legacy of poverty in its wake.

	CHAPTER I. Overview of Project, Expected Problems, and NGO Reponses This report focuses on JICA’s application of its new environmental and social guidelines to a road project in Cambodia. NGOs in Cambodia congratulate JICA for establishing its new Guidelines for Social and Environmental Considerations (hereafter, the new Guidelines), as only donors with good environmental and social guidelines can be expected to properly protect the rights of project-affected-people. We are concerned, however, that JICA has not yet achieved its goal to respect the principles of the new Guidelines in regard to its work on National Route One. The Resettlement Action Network, a network of the NGO Forum on Cambodia, wishes to point out problems and urge JICA to take concrete measures to implement the spirit and principles of the new Guidelines more effectively. In late August 2004, NGO Forum on Cambodia received an anonymous phone call for help from a member of a local community living along Cambodia’s National Route One. He told us that he was forced into agreeing to a relocation package that would scarcely compensate him for his losses. He reported that when he tried to disagree, he was told that his house would be demolished without compensation and that he would have to pay for the cost of the bulldozer. The team that came to him to seek his agreement for the relocation package included local authorities and police. His story was similar to those heard four and a half years ago from residents affected by the rehabilitation of a different portion of the same road financed by the Asian Development Bank (ADB). This led to the impoverishment of around 6,000 people (approximately 1,200 families). The Japan International Cooperation Agency (JICA) is currently conducting preparatory studies and supporting the resettlement practices of the Royal Government of Cambodia in preparation for the expansion of National Route One, from Phnom Penh to Neak Leung. If measures are not taken soon, this will result in the same impoverishment on a much larger scale than the ADB portion of the road. For months before this phone call, the Resettlement Action Network (RAN), a network of around 20 NGOs belonging to the NGO Forum on Cambodia working on housing rights and resettlement issues, had been working together to ensure the well-being of communities who are expected to be negatively affected by the rehabilitation of National Route One currently being studied by JICA. We have conveyed concerns and made recommendations to the Japanese Ministry of Foreign Affairs and JICA, drawing lessons from problems that occurred in past road projects, in particular the ADB-funded National Route One Improvement Project. RAN has also been closely monitoring the studies done by JICA thus far, and has gathered information from communities living along National Route One. While studies on resettlement issues were conducted by JICA and some remedial measures have been prepared, this report, “Aiding the National Route to Poverty?” concludes that measures thus far have been insufficient to prevent the impoverishment of affected people. 1.1 Project Background Under the framework of the Greater Mekong Subregion Program, which aims to improve various networks among Mekong Basin countries, road rehabilitation projects in Cambodia have been promoted and financed by aid agencies in recent years. National Route One is a 166 kilometer road linking Phnom Penh and Ho Chi Minh City, and forms part of the Second East-West economic corridor plan to connect the countries of Vietnam, Cambodia and Thailand. The section between the east side of the Mekong River to Ho Chi Minh City has already been reconstructed with financing from the ADB. [Top] Improvement of the 56 kilometer section of National Route One to the west of the Mekong River is now being considered for financing with a grant from the Japanese government. JICA is conducting the preparatory studies required for the Japanese government to make a decision about whether or not it will commit to providing a grant for the project. The Feasibility Study was completed in March 2003 (Pacific Consultants International, et al., 2003), and the Preparatory Study in December 2003. The Basic Design Study (Japan International Cooperation Agency (JICA) and Japan Overseas Consultants Co., Ltd., 2003) is ongoing as of the writing of this report. 1.1.2 Purpose of Road Expansion According to the 2003 Feasibility Study, improvement of National Route One is expected to accomplish the following: “ensure road transport throughout the year by upgrading to a flood free road to an all-weather standard. Secure traffic safety and conserve environment by separating slow-moving vehicles such as motorcycles and motorcycle trailer (“moto-remorks”). stimulate economic and social development by connecting major productive centers to urban centers to provide better market accessibility, allow more competition and stable prices as well as to increase job opportunities for the poor. strengthen linkages between producing and consuming centers and between exploited resources and trading gateways by the improvement of the arterial road to an international standard. This will encourage the ongoing transition to market economy that has opportunities for reducing poverty” (Pacific Consultants International, et al., 2003). 1.1.3 Extent of Road Expansion The 2003 Feasibility Study proposes extensive expansion of the road, which is currently as narrow as 12 meters in some sections. Depending on the road’s proximity to rural and urban areas, the proposed width and extent of expansion differs. In urban areas, the proposed width of the road is 14 meters, and in rural areas, it is proposed to be between 19 to 24 meters wide. Other aspects of the proposed project include replacing existing bridges, water gates and culverts, constructing new ones, and increasing the height of the road. The exact locations of areas to be widened are currently being determined in the Basic Design Study. The extent of land that will be required for the project will not be clear until the road design is completed. According to the Preparatory Study, up to 30 meters from the center of the road would be required on both sides, and 1,898 buildings would be affected. Information about the precise number of households to be affected is not available to NGOs from JICA. [Top] 1.2 Lessons from Past Road Projects in Cambodia NGOs in Cambodia, namely RAN members, have been working together with communities whose standards of living were greatly reduced due to the reconstruction of the section of National Route One funded by the ADB. Although the NGOs do not oppose improvement of National Route One per se, we are seriously concerned that the communities to be affected by expansion of the remainder of the road will suffer similar consequences leading to their impoverishment. The ADB-funded National Route One rehabilitation project resulted in relocation of approximately 1200 households (approximately 6000 people) who lived within 30 meters of either side of the centerline of the road, even though the actual width of the new road is only around 14 meters. The loan from the ADB was approved in December 1998, and resettlement of communities began in February 2000. ADB policies require consideration of social and environmental impacts and participation of affected communities in decision-making, but they were not strictly enforced. As a result, the communities affected by the ADB-funded project were severely impoverished. Little compensation was given for losses that resulted from the project, such as loss of livelihood, houses, and moving costs. Cambodian government officials reportedly told affected communities that the small amount of cash that the government was delivering to the communities should not be considered “compensation,” but simply a “contribution” to relocation costs. One reason the Cambodian Government was able to do this was because of an edict issued in 1999 that declared all land within 30 meters of the centerline of the road to be public land. The communities living in this area were thus suddenly labeled “illegal occupants,” and no compensation for their loss of land was provided. Many were deeply indebted by their resettlement. Some people are still refusing to relocate fearing the grave and irreversible consequences to their lives. Another significant problem with the project was that during the formulation and implementation of the project, information dissemination to the communities was scarce, and participation of the communities in decision-making was hardly ensured. Not only did the communities not have opportunities to voice their opinion about the compensation content, they were told to thumbprint documents approving their relocation and amount of compensation in spite of having little, if any, information about the project or their rights. Appendix A3 provides further information on problems that occurred in the ADB-funded project. To this day, neither the ADB nor the Cambodian government has resolved many of the problems faced by these communities. [Top] 1.3 NGO Advocacy to JICA for Prevention of Further Impoverishment In spite of the suffering experienced by communities affected by the ADB-funded rehabilitation of National Route One, the 2003 Feasibility Study prepared by JICA for the expansion of the Phnom Penh-Neuk Leung section of the road concluded that "there are neither substantial nor irreversible adverse environmental and social impacts arising from the Project. No adverse social impact is expected because the project only involves the improvement of existing roads and no land acquisition for road right-of-way is required additionally.” JICA appears to accept the explanation that local communities living in the ROW are “illegal occupants,” and does not seem to consider their loss of land to be a significant social impact. Furthermore, the scope and rate of compensation, as well as the procedures for resettlement proposed in the 2003 Feasibility Study are similar to insufficient scope, rate, and procedures used for the ADB-funded project. Fearing that the same tragedy would be repeated in the section of National Route One being studied by JICA, NGOs began conveying concerns to the Japanese Government and JICA. In November 2003, a letter endorsed by 6 NGOs was sent from Legal Aid of Cambodia to the Japanese Ministry of Foreign Affairs explaining the problems with the ADB-funded road expansion (see Appendix A3). The NGOs requested that the studies be suspended until a comprehensive review of the ADB-funded project is conducted, and that public consultations be held to explain the lessons from the ADB experience to people to be affected by the JICA portion of National Route One. The Japanese government had actually already recognized that the 2003 Feasibility Study was not satisfactory and decided to examine this project in light of JICA’s new Guidelines for Environmental and Social Considerations, even though assistance for the project was requested prior to the enactment of these new Guidelines. As a result of the Japanese government’s decision, a Preparatory Study focusing on resettlement issues was conducted, and conditions were put forward to the Cambodian Government for Japanese Government consideration of financing for the project. These conditions were: i) agreement to the road improvement project and to relocation (if necessary) by 70-80% of all communities possessing assets within 30 meters of the center of the road, and ii) agreement to the compensation packages by all affected people. NGOs also received a letter from JICA’s headquarters in Tokyo in March 2004 affirming its policies on social considerations and explaining that measures are being prepared, including modification of TORs for future studies. The Cambodian Government is now conducting a survey to obtain agreement to compensation packages called the “PAP’s Survey,” and this study seemed to have begun in August 2004, around the time when the NGO Forum received the anonymous phone call seeking help from an affected person. After the Preparatory Study, RAN sent members to the field to meet affected people and find out how they would be impacted by resettlement due the to National Route One Improvement Project. Then, in September 2004, RAN members also conducted a counter survey to the PAP’s Survey. RAN’s counter survey was of 74 households who were interviewed by the PAP’s Survey team, and results indicate that intimidation was used. We are now taking the results of our counter survey to JICA and the Japanese Government, and we seek to prevent the rehabilitation of National Route One from leaving a legacy of poverty in its wake.
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