Project Scopes & Financing Plan

I. THE PROJECT AT APPRAISAL

Project Scope and Financing Plan at Appraisal

The NPRIP (CW₂) projects will cover improvement of 84km of NR56 between 29km from Sisophon and Samraong.

1)       Rehabilitation and upgrade of 84km national road between 29km from Sisophon and Samraong by DBST pavement and drainage structures on NR56 addition to the road works.

2)       Realignment of the road to protect Banteay Chhmar Temple core zone required 11km in length.

3)       Upgrading Bridges and drainage structure NR56 located in predominantly flat open terrain flooded in the rainy session.

4)       Provision of cross border equipment (CBE) for new cross border facilities at O’smach on Cambodia border.

5)       Supply and the installation of Automatic Traffic Counting System at 7 weigh station on National Road.

The project environmental and social impacts will be addressed through the development and implementation of resettlement plans and environmental management plans; the HIV/AIDS, trafficking and gender issues will be tackle through awareness and prevention programs to be developed and implemented concurrently with the civil works.      A team of consultants will assist with the detailed design and implementation of the Project.

At Appraisal, the project cost of EDCF-KHM-9  was estimated at $29.942 million, of which $21.512 million for civil works, $2.40 million for consulting services, $6.00 million for price and physical contingencies, 0.03 million for project administration cost during implementation.

                Project Cost and Financing Plan at Appraisal (US$ thousand, mid-2010 prices)

Table 2: Indicative Cost Estimate

This amount is estimated including the land acquisition cost for the cross-border facility (approx. $500,000.-).     This amount will be updated after conducting DMS (Detailed Measurement Survey).

II. PROPOSED REVISED PROJECT SCOPE

Updated Project Cost Estimate

At Appraisal, the project cost was estimated based on price conditions prevailing June2010. The DDIS consultants updated the project cost estimate based on (i) refined estimates of quantities of works resulting from the detailed design of the NR56 road section from 29km to Samraong and CBEs and (ii) second quarter 2011 price conditions.

Due to significant price escalation of Fuel and bitumen in 2011 and larger than expected quantities of works, drainage structures and Earthworks local in floated terrain by climate change excluding taxes and duties has been  re-estimated at 24.5 million i.e.,3.0 million(14%) above the estimate at Appraisal for civil works.

Based on the above update estimates for the civil works and assumptions for the other component cost, the total project cost has been re-estimated at $29.942 million, but same as Loan Agreement total project cost of $29,942 million.

Updated Project Cost Estimate

Proposed Revised Project Scope

The as-appraised project scope consisted of once major civil works components and provision cross Border Equipment at O’smach have to be implemented as originally designed as they highly contribute to the achievements of the project objective; there are (i) The NR56 improving 84km between 29km from Sisophon and Samraong as advised by PMU-3, (ii) The provision of equipment for now Cross Border Facilities in O’smach. (iii) Supply and installation of Automatic traffic counting system at 7 weigh station on NR would be the components proposed add from the original scope, as advised by PMU-3 these components remain in the agenda of MOD  between MEF and EDCF and their implementation is expected to be financed by the Government of Korea through the Export-Import of Korea (KEXIM)

1. NPRIP-CW₂ : Improvement of National Road NR56 84km (from km 29 Sisophon to Samraong)

• Commencement of works (anticipated): date
• Works completion (anticipated): date

HIV/AIDS, Trafficking Awareness and Prevention Program will be implemented target with ADB Funded Project and the EDCF Korean funded rojects along National Roads NR56.

The project scope does not affect the project impact and outcome anticipated at Appraisal. Through NR56 improving and development of CBF,the project impact is still to promote economic growth in the project area and the GMS by strengthening connectivity between Cambodia and Thailand and increasing competitiveness.

The outcome of the project will be to reduce transport time and costs within the GMS Northwest corridor and induce more efficient movement of passengers and goods within the project area and between the GMS countries.

Project Cost and Financing Plan

Based on the unit prices prevailing in the second quarter 2011 and quantities of works estimated during the detailed design phase, the total base cost of civil works components of proposed revised project scope is estimated at $ 29.942 million as detailed in Table below.

Civil Works Cost Estimate – Base Costs

US$ million-second Quarter 2011 Prices

The resettlement activities from preparation of resettlement plans (RP) to implementation of the same unchanged under the project scope. RP_s for the NR56 section improving and the CBF_s are being finalized.

The specific assurances listed in the Report and Recommendation of the president fully apply to the implementation of the proposed revised project. These assurances concern resettlement, gender, HIV/AIDS and trafficking awareness and prevention program, environment, governance and operation and maintenance of the facilities provided under the Project. Furthermore, the proposed project will be implemented in compliance with the Loan Agreement signed between the Government and EDCF. In this regard all provisions and conveniences of the loan Agreement without any restrictions will remain valid.