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Irrigated Agriculture Improvement Project (RRP CAM 51159-002) Feasibility Study Report November 2019 Cambodia: Irrigated Agriculture Improvement Project Kamping Pouy Subproject Prepared by the Pacific Rim Innovation and Management Exponents, Inc. on behalf of the Ministry of Water Resources and Meteorology for the Asian Development Bank (ADB).

Transcript of Feasibility Study Report - adb.org€¦ · Feasibility Study Report November 2019 Cambodia:...

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Irrigated Agriculture Improvement Project (RRP CAM 51159-002)

Feasibility Study Report

November 2019

Cambodia: Irrigated Agriculture Improvement Project Kamping Pouy Subproject

Prepared by the Pacific Rim Innovation and Management Exponents, Inc. on behalf of the Ministry of Water

Resources and Meteorology for the Asian Development Bank (ADB).

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IMPROVEMENT PROJECT (IAIP), CAMBODIA

TABLE OF CONTENTS

Page

List of Tables iii List of Figures v List of Appendixes vi List of Abbreviations vii Executive Summary ix

I. INTRODUCTION 1

II. SUBPROJECT ASSESSMENT 4

A. Review of Current Situation and Options for Improvement and Modernization 4 B. Proposal for System Modernization 9 C. Proposed Civil Works for System Modernization, Option 2 14

III. HYDROLOGY AND WATER AVAILABILITY 17

A. Introduction 17 B. Rainfall 18 C. Evaporation 18 D. Runoff from Kamping Pouy Reservoir Catchment 19 E. Diversion Flow from Mongkol Borey River 20 F. Reservoir Routing 22 G. Reservoir Balance 23

IV. AGRICULTURE 27

A. Current Farming Practices 27 B. Current Cropping Pattern 28 C. Soil Condition 28 D. Agro-inputs 29 E. Constraints to Yield and Field Recovery of Yield 30 F. Increasing Crop Production and Modernization of Irrigation Systems 30 G. Proposed Intensive Rice Cropping Pattern and Diversified Cropping System 31 H. Nutrient Management for Rice Production in Kamping Pouy 32 I. Proposed Cropping Pattern 32 J. Capacity Building 37 K. Economic Benefits 38

V. MANAGEMENT OF IMPROVED SYSTEM PERFORMANCE 40

A. Introduction 40 B. Main System Operation 40 C. Climate Proofing 46 D. On-farm Water Management (OFWM) 49 E. Irrigation Maintenance: Institutional Arrangements 53 F. Capacity Building for Improved Irrigation O&M 57

VI. SUBPROJECT COST ESTIMATES 59

A. Introduction 59 B. Cost of Civil Works, Option 2 59 C. Cost of Climate Proofing 61 D. O&M Cost (Year 1 Only) 61 E. Upgrading Hydromet Networks 61 F. FWUC Development and Training 63 G. Agricultural Improvement 64

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VII. ECONOMIC ANALYSIS 64

A. Introduction 64 B. Methodology 64 C. Subproject Costs 66 D. Subproject Benefits 67 E. Farm Performance 68 F. Cash Flow 70 G. Impact on Poverty 70

VIII. ENVIRONMENTAL SAFEGUARDS 70

A. Regulatory Framework for Environmental Impact Assessment 70 B. Baseline Environmental Condition 71 C. Assessment Findings 73 D. Public Consultations 75 E. Grievance Redress Mechanism 75

F. Environmental Management Plan 75

IX. SOCIAL SAFEGUARDS 75

A. Socioeconomic Conditions and Poverty in KPIS Communes 75 B. Ethnic Minority Groups in KPIS communes 80 C. Land Acquisition and Resettlement 81

X. GENDER ANALYSIS 83

A. Gender Roles and Opportunities in Irrigated Agriculture 83

B. MOWRAM Institutional Capacity 84 C. Mainstreaming Gender in IAIP 86

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LIST OF TABLES

Number Title Page

1 Outlet Structures on the Kamping Pouy Reservoir Embankment 5

2 Existing Irrigation and Drainage Canals in the Kamping Pouy Subproject Area 8

3 Comparison of Three Design Options and Cost Estimates of Civil Works, KPIS 13

4 Commune-Wise Command Area of the Kamping Pouy Subproject 14

5 Irrigation Blocks 15

6 Proposed Civil Works for the Upgrading of KPIS, Option 2 15

7 Monthly Statistical Rainfall (mm) at Bek Chan (Battambang) 18

8 Average Daily Evaporation (mm) at Bek Chan (Battambang) 18

9 Estimated Inflow from the Local Catchment into Kamping Pouy Reservoir 20

10 Kamping Pouy Reservoir Elevation, Surface Area, and Volume 22

11 Water Balance in the Kamping Pouy Reservoir 25

12 Water Balance in Kamping Pouy Reservoir, 50% Inflow Scenario 25

13 Water Balance in Kamping Pouy Reservoir, 80% Inflow Scenario 26

14 Soil Types and Characteristics in KPIS 29

15 CARDI-recommended Fertilizer Application for Direct-seeded 90-Day Variety 32

16 CARDI-recommended Fertilizer Application for Direct-seeded Traditional Varieties 32

17 Potentially Suitable Non-Rice Crops for Consideration and Related to Water Productivity 36

18 Comparison of Water Productivity of Non-Rice Dry Season Crops with Sen Kro Ob Rice 36

19 Yield Targets and Agriculture Inputs Needed to Achieve Targets in KPIS 38

20 Combined Wet and Dry Season Benefits 39

21 Wet Season Benefit Stream 39

22 Dry Season Benefit Stream 40

23 Planned Canal Operation Schedule at System Level for 2018 Dry Season Irrigation 42

24 Irrigation Scheduling Blocks 44

25 Projected Changes to Average Rainfall and Average Maximum Temperatures, Battambang, 2050 47

26 Baseline and Projected Changes to Average Maximum Temperatures and Rainfall, Kamping Pouy Reservoir, 2050 47

27 Baseline and Projected Changes to Average Maximum Temperatures and Rainfall, Mongkol Borey River, 2050 47

28 Incremental Cost of Climate Proofing of KPIS Drainage Facilities 49

29 Maintenance Planning in KPIS 53

30 Goals and Mandate of the KPIS–FWUC 55

31 Training Plan Proposed for Kamping Pouy Subproject 58

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32 Summary of Proposed Subproject Investment Cost 59

33 Estimated Cost of Civil Works for the Kamping Pouy Subproject, Option 2 60

34 Incremental Cost of Climate Proofing of the Kamping Puoy Subproject 61

35 Summary of Cost Estimates for Hydromet Network Upgrading for Kamping Pouy 62

36 Detailed Cost Estimates for Hydromet Network Upgrading, Kamping Pouy Subproject 62

37 Estimated Cost for Capacity Building of KPIS FWUC and Related Stakeholders 63

38 Estimated Cost of Proposed Agricultural Demonstration Activities 64

39 Subproject Financial and Economic Capital Costs 66

40 Kamping Pouy Crop Areas and Production “With” and “Without” Project 67

41 Financial and Economic Gross Margins “With” and “Without” Project (2028) 68

42 Options Summary, Sensitivities, and Switching Values 69

43 Dry, Minimum, and Maximum Rainfall (mm), Bek Chan 71

44 Local Inflow to Kamping Pouy for Dry, Minimum, and Maximum Years (mcm) 72

45 Population in KPIS 75

46 Sex/Age Structure in KPIS 76

47 Landless and Land-Poor Households, KPIS Communes 77

48 Uses of Land in KPIS Communes (ha) 77

49 Wet/Dry Season Rice Land (ha) and % Total Rice Land, KPIS Communes 78

50 Rice Production in KPIS, 2017 78

51 Poverty Levels (% Population), Cambodia 79

52 Poverty Levels (% Population) in KPIS Communes 80

53 Ethnic Minorities in Battambang Province 80

54 Ethnic Minority Population in KPIS Communes 81

55 MOWRAM Management Staff 84

56 MOWRAM GMAP, 2014-2018 86

57 Draft Gender Action Plan (GAP) 88

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LIST OF FIGURES

Number Title Page

1 Location of the Two Core Subprojects 2

2 Location Map of the Kamping Pouy Irrigation System 4

3 General Layout of the Kamping Pouy Irrigation System 5

4 Schematic Diagram of Inflows of Kamping Pouy Reservoir, Battambang 6

5 Erosion on the Upstream Slope of the Reservoir Embankment 7

6 Existing Canal Network in KPIS 7

7 Photos of the Main Canal Embankment Showing Erosion and Thick Vegetation 8

8 Flood Map of KPIS 9

9 Layout of the Kamping Pouy System, Option 1 10

10 Layout of the Kamping Pouy System, Option 2 11

11 Layout of the Kamping Pouy System, Option 3 12

12 Irrigation Blocks of the Kamping Pouy Subproject 14

13 Typical Cross-section of the Proposed Slope Erosion Control Work for the

Reservoir Dam 16

14 Typical Section of Proposed Main Canal 17

15 Average Monthly Rainfall and Evaporation in the Kamping Pouy Subproject Area 19

16 Average, Minimum, and Maximum Local Inflows (m3/s) into Kamping Pouy

Reservoir 20

17 Layout of Kamping Pouy Showing Mongkol Borey Diversion Canal 21

18 Mongkol Borey Flow at the Diversion Point 22

19 Hydrograph—Inflow to Kamping Pouy Reservoir from Mongkol Borey River 23

20 Flow Hydrograph—Total Monthly Inflow to Kamping Pouy Reservoir 23

21 Kamping Pouy Reservoir Rating Curve: Elevation–Volume 24

22 Water Balance of Kamping Pouy Reservoir 24

23 Potential Cropping Pattern with Respect to Reservoir Water Availability 24

24 Kamping Pouy Reservoir Balance, 50% Inflow Scenario 26

25 Kamping Pouy Reservoir Balance, 80% Scenario 27

26 Current and Proposed Cropping Pattern for the Kamping Pouy Subproject 31

27 Crop Water Requirement for a Stated Cropping Pattern 43

28 Conceptual Basis of Irrigation Scheduling 44

29 KPIS Layout Showing the Climate-proofed Drainage System 48

30 Schematic Layout of Farm-level Canals and Structures for OFWM 51

31 Poorly Leveled Basin with Waterlogging in Lowlying Area 52

32 Organization Structure of the Battambang PDWRAM 54

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33 FWUC Office in KPIS 55

34 Structure of the FWUC Organization 56

35 Layout of the Hydrology of the Existing Kamping Pouy Scheme 72

36 IBAT Identified Areas around Kamping Pouy 74

37 Households Affected by the KPIS Subproject 82

LIST OF APPENDIXES

Number Title Page

1 Photos of the KPIS Taken During Field Visits of the TRTA Team 91

2 Detailed Cost Estimates of the Options for the Modernization of the KPIS 94

3 Subproject Economic Analysis 96

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LIST OF ABBREVIATIONS

ADB Asian Development Bank AH affected household AWS automatic weather station CARDI Cambodian Agricultural Research and Development Institute CDB Commune Data Base CISIS Cambodia Irrigation Schemes Information System CRVA climate risk and vulnerability assessment CSP core subproject DAS days after sowing DFWUC Department of Farmer Water User Communities DS dry season EIRR economic internal rate of return EMP environmental management plan ENPV economic net present value ETo Evapotranspiration rate FAO Food and Agriculture Organization FDRP Flood Damage Reconstruction Project FFS farmer field school FS feasibility study FSR feasibility study report FWUC farmer water user community FWUG farmer water user group FWUSG farmer water user subgroup GAP gender action plan GDR General Department of Resettlement GFP gender focal point GHG greenhouse gas GMAG Gender Mainstreaming Action Group GMAP Gender Mainstreaming Action Plan GMS-FDRMMP GMS Flood and Drought Risk Management and Mitigation Project GRM grievance redress mechanism GWG gender working group GTWG gender technical working group ha hectare IAIP Irrigated Agriculture Improvement Project IBAT international biodiversity assessment tool IEE initial environmental examination IRRI International Rice Research Institute ISC irrigation service contribution ISF irrigation service fee IUCN International Union for Conservation of Nature JICA Japan International Cooperation Agency JOROP Joint Reservoir Operation KAPOS Kamping Pouy Joint Reservoir Operation Scheme KBA key biodiversity area kg kilogram KR Khmer Riel km kilometer KPIS Kamping Pouy Irrigation System LCC leaf color chart m meter MEF Ministry of Economy and Finance

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MAFF Ministry of Agriculture, Forestry, and Fisheries MASL meter above sea level mcm million cubic meter mm millimeter MOU memorandum of understanding MOWRAM Ministry of Water Resources and Meteorology NGO nongovernment organization NPV net present value NSDP National Socio-economic Development Plan OFWM on-farm water management OJT on-the-job training O&M operation and maintenance PDA Provincial Department of Agriculture PDWRAM Provincial Department of Water Resources and Meteorology PMIC Project Management and Implementation Consultant PIMD participatory irrigation management and development PMU Project Management Unit PSA poverty and social assessment RGC Royal Government of Cambodia Rice SDP Climate Resilient Rice Commercialization Sector Development

Program ROW right of way RU rotational unit SC/ SSC secondary irrigation canal SCD secondary and drainage canal SERF shadow exchange rate factor SP subproject SPS Safeguard Policy Statement SRI system of rice intensification SWAT soil and water assessment tool SWRF shadow wage rate factor TA technical assistance t/ha ton per hectare TNA training needs assessment TOR terms of reference TOT training of trainers TRTA transaction technical assistance USA United States of America VAT value added tax WRM water resources management WS wet season

CURRENCY EQUIVALENTS

Currency unit – Riel (KR) KR1.00 = $0.00024

$1.00 = KR4,004.00

NOTE

In this report, "$" refers to US dollars.

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EXECUTIVE SUMMARY

1. The Kamping Pouy Irrigation System (KPIS) in Battambang Province was selected as one of two core subprojects of the Irrigated Agriculture Improvement Project (IAIP), proposed by the Ministry of Water Resources and Meteorology (MOWRAM) of the Royal Government of Cambodia (RGC) for loan funding by the Asian Development Bank (ADB). 2. Existing situation. The interconnected command area of the KPIS, which can be irrigated under full development, is approximately 19,000 hectares (ha),1 of which 12,000 ha will be the focus of upgrading/modernization under IAIP, as the remaining 7,000 ha are covered under an ongoing Korea-funded project and the ADB-funded Climate Resilient Rice Commercialization Sector Development Program (Rice SDP). The planned improvements under IAIP will allow water to be provided to an additional 2,000 ha of these 7,000 ha without requiring additional civil works, except for one outlet into a secondary canal of the adjacent interconnected command area. 3. The irrigation area is supplied by the Kamping Pouy Reservoir, which receives water from the Kamping Pouy River and watershed. With a total catchment area of 51,500 ha, the reservoir can store up to 110 million cubic meters (mcm). The reservoir is also connected by an existing 13.9-kilometer (km) Link Canal (or the Ou Dounpov Canal), which collects water from upstream of the Mongkol Borey River. This canal has a surface area of 5,000 ha and an embankment of 6.3 km. However, this canal needs to be desilted and cleared of shrubs and trees. Water from the Kamping Pouy Reservoir flows into the command area through four outlets (gated offtakes). For the 12,000 ha to be served under IAIP, a 14.14-km main canal and about 64 km of secondary and drainage canals will require upgrading, cleaning, stabilization, and embankment protection and improvement. In addition, small pockets in the command area will need additional flood protection in response to climate change.

4. Civil works improvement options. In Option 1, the main and secondary canals will all be modernized, but only the first 5.6-km segment of the main canal will be lined with concrete. It is the least expensive option ($15.93 million inclusive of 10% physical contingency), but it will require a higher operation and maintenance (O&M) cost and greater effort and prior training of the Provincial Department of Water Resources and Meteorology (PDWRAM) and farmer water user community (FWUC) to build their capacity in proper system O&M. Under Option 2, 9.17 km of the 14.14-km main canal will be lined with concrete, which will increase the cost to $20.11 million including 10% physical contingency. Option 3 will involve the full concrete lining of the system and an upgrading of most of the canals, which will bring the cost to a high $24.45 million inclusive of a 10% physical contingency.Option 3 will require a much higher investment cost, when lining is not really needed in some parts of the canal, which are stable and will remain so with proper O&M. Therefore, Option 2 is recommended, as it will involve the concrete lining of only those parts of the canals, which need strengthening to avoid collapse when subjected to poor O&M. A comparison of the key design features and corresponding cost estimates of these three options is shown in the table below.)

No. Items of Work Option 1 Option 2 Option 3

1. Link canal, 13.90 km 8 km concrete lined, 5.9 km earthen

8 km concrete lined, 5.9 km earthen

8 km concrete lined, 5.9 km earthen

2. Reservoir embankment protection, 6.5 km

Gabion protection Gabion protection Gabion protection

3. Main canal, 14.14 km 5.6 km concrete lined, remaining earthen

9.17 km concrete lined, remaining

Entire 14.14 km concrete lined

1 During field reconnaissance of the KPIS, it was found that at the tailend of the system, in the most downstream area

close to Battambang City, land conversions are taking place for the construction of a road bypass and the development of a residential area for new housing, encompassing about 1,000 ha. This means crop production in this area will give way to urban expansion for the growing municipalities surrounding Battambang. For this reason, this report uses 18,000 ha as the command area of the KPIS.

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No. Items of Work Option 1 Option 2 Option 3

earthen

4. Secondary canal No.1 (SC1), 5.7 km

Earthen canal Concrete lined Concrete lined

5. Sub-secondary canal No.1 (SSC1), 7 km

Earthen canal Earthen canal Concrete lined

6. Four secondary irrigation and drainage canals, 39.90 km

Earthen canal Earthen canal Earthen canal

Total Cost of Civil Works $15,934,584 $20,112,501 $24,450,638

Source: TRTA Consultant

5. The following civil works are proposed under Option 2:

• Upgrading of the 13.9-km canal linking the Mongkol Borey River to the Kamping Pouy Reservoir by the concrete lining of 8 km of the link canal;

• Strengthening of the reservoir embankment of 6.5 km by providing erosion protection on the upstream slope;

• Modernization of the 14.14-km main canal, including the concrete lining of an initial 9.17 km, upgrading the earthworks in the non-lined section, and improving 28 distribution and control structures;

• Rehabilitation of secondary irrigation canals SC1 and SSC1 with a total length of 12.7 km by the concrete lining of 5.7 km and installation of 41 structures within the subproject target command area to ensure water delivery to 6,083 km; and

• Rehabilitation of secondary irrigation and drainage canals SCD2, SCD3, SCD4, and SCD5 with a total length of 6.9 km and improvement and installation of 101 structures within the subproject command area to ensure water delivery to 5,517 ha and prevent the inundation of paddy lands within the command area (see table below).

No.

Canals Symbol Command area (ha)

Blocks Length (km)

Canal Type

No. of Structures

1. Link canal LC 13.9 8 km lined

2. Main canal MC 14,200 Blocks A–I

14.1 9.17 km lined

28

3. Secondary irrigation canals

SC1 and SSC1

6,083

Blocks C, D, and I

12.7 5.7 km lined

41

4. Secondary irrigation and drainage canals

SCD2, SCD3, SCD4, and SCD5

5,517 Blocks E and G

39.9 Earthen 101

5. Drainage canals

SD1 and TN16 Drainage Earthen 5

Source: TRTA Consultant

6. Complementary management measures. In addition to the above civil works improvements, a number of management interventions will be introduced in the subproject. These include the following:

• Joint reservoir operation (JOROP). Water sharing among the subsystems linked to the Kamping Pouy Reservoir requires joint reservoir operation (JOROP) to manage water distribution through the four outlets of the reservoir, which provide irrigation water to four different parts (or sub-schemes) of the entire Kamping Pouy command area of 18,000 ha. It is, therefore, proposed that a new irrigation management facility to be called the Joint

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Reservoir Operation for the Kamping Pouy Scheme (JOROP-KAPOS) Unit be established to ensure that water release through the reservoir outlets is regulated, based on water distribution plans that will specify how much and when the water will be released to each sub-scheme every 10-14 days, as agreed to by the managers of the four sub-schemes. Training will be provided to both PDWRAM and FWUC in the strict enforcement of the irrigation schedule agreed to by the water managers of the four subsystems.

• Climate proofing. In anticipation of increased flooding during the wet season and at the start of the dry season, the two KPIS drainage canals (SCD4 and SCD5) will be designed for a 4.4 l/s/ha discharge, instead of the standard 3.5 l/s/ha. In addition, two additional drainage canals are proposed for modernization to accommodate additional discharges, and 13 culverts with check structures are proposed to enlarge the existing section of these drains. These design features will effectively increase the floodwater removal capacity of the KPIS by 25%, sufficient for at least 70 years, but will result in an incremental cost of about $1.74 million for climate proofing.

To reduce the impacts of drought on agricultural production, the following measures will be incorporated in subproject O&M: (i) irrigation scheduling to minimize the impacts of drought on water availability; (ii) installation of water flow measurement equipment in the canals for controlled water supply to meet crop water requirements during dry spells; (iii) reduced exposure of crops to prolonged dry season by compressing two successive rice crops into a period of 7-8 months using non-traditional rice varieties and using proper agro-inputs combined with irrigation management in command area blocks; and (iv) diversification from rice to non-rice, high-value crops requiring less water (e.g., soybean, mungbean, and sesame) or shift to drought-resistant rice varieties.

• Improvement of on-farm water management (OFWM). This refers to the management of water within a tertiary command with the objective of enhancing irrigation efficiency. As the subproject aims to provide irrigation water during the dry season, making it possible to grow two additional crops, two broad options are proposed to improve OFWM: (i) capacity building of farmers and water managers; and (ii) improving O&M of tertiary canals. A training program will be designed for the KPIS-FWUC, based on a prior training needs assessment, to equip their members with the knowledge and skills needed for the management of a modernized irrigation system. The enhanced capacity of FWUCs is very important given that the O&M of tertiary canals is their responsibility. To improve the O&M of tertiary canals, the subproject will support the development and implementation of participatory and site-specific O&M plans covering all cropping cycles of a complete calendar year. Field demonstrations and experiments will be set up in farmers’ fields to convince them to adapt new farming techniques with a focus on non-rice crops, particularly high-value vegetables, which although more labor-intensive, will result in major water savings and an increase in farmer income.

• Institutional coordination. MOWRAM, the Battambang PDWRAM, and the KPIS-FWUC have important roles to play in the successful implementation of this subproject, and hence, the attainment of the IAIP outputs and outcome. MOWRAM, the EA, will guide the PDWRAM in the overall coordination among key stakeholders, including the Ministry of Provincial Department of Agriculture (PDA), local authorities, and the KPIS-FWUC to ensure the sustainable O&M of the irrigation system and improved crop production and water productivity.

7. Agriculture activities. The subproject will modernize agriculture and increase farm productivity by introducing environmentally suitable and profitable cropping patterns together with interventions that will enhance crop yield and productivity of a diversified rice-based cropping system. The cropping period will increase from the present 6 wet season months to 10 wet and dry

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season months, and the cropping pattern will shift from the present rainfall-dependent, low-yielding one rice crop (long-maturing traditional varieties) or two crops (relay cropping of traditional and short-duration varieties) to two wet season rice crops of high-yielding, modern, short-maturing variety and one dry rice crop or choice of adapted non-rice crops, which must be planted as soon as the last wet season rice crop is harvested. These non-rice crops include drought-tolerant and short-duration industrial crops such as soybean, peanut, mungbean, sesame, field corn and locally preferred cash crops including cucumber, melons, sweet potato, and leafy vegetables. Cultural practices will improve through farmers’ adoption of an agriculture input package (quality rice seed, fertilizer, and pesticides) that will address existing farming and soil limitations to crop yield. A demonstration and training program using the farmer field school (FFS) method will be provided to farmers to promote the adoption of an agriculture input package, and special on-the-job training (OJT) will be given to selected farmers on the production of certified quality seeds of recommended high-yielding varieties. 9. Subproject cost. The Kamping Pouy Subproject is estimated to cost about $24.16 million, as shown in the table below.

Description Estimated Cost ($)

Civil works (Option 2) including OFWM facilities 20,112,501

Cost of climate proofing measures (widening and deepening for the required increase in drainage and flood control facilities over the period, 2020-2060)

1,743,000

O&M costs for Year 1 of system operation 600,000

Hydromet equipment and automated weather station (AWS) 569,910

FWUC development and training 439,670

Agricultural and agro-inputs support and training 699,600

Total 24,164,681

10. Expected benefits. The improved availability of irrigation water and improved drainage will allow cropping intensity to increase with the subproject, from an estimated 163% at present to at least 200% within six years of completion of construction. Higher cropping intensities are feasible and may be achieved with increased inclusion of 90-day rice varieties; the current budget includes one traditional and one short-duration crop. In addition, the yields of traditional and short-duration varieties are expected to increase to 4.5 and 5 t/ha by 2028 from around 2.5-2.7 t/ha at present. The subproject is deemed economically viable based on its economic internal rate of return (EIRR) of 25% and net present value (NPV) of $39 million. The high rate of return is due both to the envisaged production gains and to the high price generated by aromatic rice on the international market. In fact, the subproject would be uneconomic if producing only white (non-aromatic rice) with an economic price that is only 55% of aromatic rice. Sensitivity analysis showed that a 10% increase in costs or a decline in economic paddy price will reduce EIRR to about 23%. Capital cost would need to more than double to reduce EIRR to 12, and the economic farmgate price of paddy would need to fall by 48% to reduce EIRR to 12%.

11. Environmental safeguards. Environmental assessment findings for the subproject are divided into pre-construction (design), construction, and operation phases. Design issues for this irrigation subproject revolve around the following: (i) no encroachment on protected areas and no impact on critical habitats; and (ii) matching the total irrigation area for a new dry season crop to the availability of water. The location of the Kamping Pouy subproject has been checked against the data in the International Biodiversity Assessment Tool (IBAT), which showed that the subproject does not encroach upon any nationally protected area (IUCN management classes), international conservation agreement areas, or key biodiversity areas (KBAs). The hydrological analysis by the TA team indicated that by compacting the cropping calendar, making use of tailend effective rains at the beginning of the dry season, and proper management of the reservoir, diversion channel and

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command area, irrigation for a dry season crop over an additional 8,000 ha is possible. The intensive management of the reservoir by PDWRAM and FWUCs and based upon the periodic movement of water from the catchment and link canal, through the reservoir and into the command area, as required, will ensure that the diversions drawn from the Mongkol Borey will be within that waterbody’s capacity to sustainably supply it. The Mongkol Borey River will not be dewatered in any season and minimal water will be drawn from it during the lowest part of the dry season to protect environmental functions. 12. During construction, the main issues will be air and water pollution and soil erosion, all of which can be managed by strict control of construction contractors and effective implementation of environmental management plan (EMP) mitigation and monitoring measures. Additional localized traffic congestion is anticipated, which must be minimized by responsible transport planning and work scheduling. During operation, the main concerns are local increases in the levels of agricultural fertilizer and pesticide residues and their effects on water quality and people. Post-construction mitigation will benefit from capacity building and training under the project to use fertilizers and pesticides efficiently and responsibly. 13. The environmental assessment confirmed that the subproject is environment Category B under the ADB Safeguard Policy Statement (SPS) (2009), and that the design, mitigation measures and management identified in the initial environmental examination (IEE), when properly implemented, will result in an environmentally sound outcome. 14. Social safeguards. Agriculture is the primary occupation of people living in KPIS communities; the poverty rate has declined by 30% to over 40% in the subproject area. Consultations with local people showed that the subproject could contribute significantly to poverty reduction in the area by providing opportunities for local farmers to improve their crop production (increased productivity, more cropping seasons, diversified cropping, etc.). However, potential negative impacts of the subproject include land acquisition of some households and temporary travel inconvenience during subproject construction. Construction of the subproject will affect only five households, of which three will be partially affected and households will be physically displaced. A resettlement plan is under preparation, after consultation with the affected households, to mitigate the land acquisition impacts of the subproject following the outline and requirements in ADB’s SPS (2009) and the relevant regulations of the government. As there are no ethnic minorities residing in the subproject communes, no interventions or activities for ethnic minorities are needed for this subproject. 15. Gender. Women more than men rely on rice cultivation as their primary and secondary occupations. However, they are not normally members of the FWUC. Available data suggest that women account for less than 10% of FWUC members. The reasons for this include the perception that irrigation is “men’s work,” the limited time and mobility of women due to reproductive responsibilities, and social norms that discourage women from participating actively in community affairs and discount their contributions compared to those of men. Women’s representation needs to be considerably expanded in FWUCs in official positions and in overall membership. In addition, women need to be given training in accounting, FWUC management, as well as in crop diversification and marketing. A Gender Action Plan (GAP) has been prepared with focus on actions that will (i) encourage women’s participation in training on climate-resistant agriculture, water resource management, and FWUC management; (ii) create opportunities for women to benefit from paid work to upgrade KPIS infrastructure; and (iii) strengthen the institutional capacity of MOWRAM and PDWRAMs to address gender issues in irrigated agriculture.

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I. INTRODUCTION

1. The Asian Development Bank (ADB) has approved a Transaction Technical Assistance (TRTA) grant (TA 9349-CAM) to the Royal Government of Cambodia (RGC), through the Ministry of Water Resources and Meteorology (MOWRAM), for the preparation of the proposed Irrigated Agriculture Improvement Project (IAIP). The ensuing project will address agriculture sector constraints by modernizing and climate proofing irrigation infrastructure for dry season crops with agriculture support, establishing an organizational and financial system for sustainable O&M, build capacity for government staff and FWUCs, install hydromet stations to collect real-time river flow and climate data, and establish a national water resources data management center (data center) and a WRIS based on the water accounting framework.

2. To assist MOWRAM in preparing the design of the proposed project, ADB engaged the services of Pacific Rim Innovation and Management Exponents, Inc. (PRIMEX) (Philippines) in association with Sheladia Consultants (USA) and CamConsult (Cambodia) through a contract signed on 19 September 2017. The TRTA Team commenced services on 25 September 2017 with the mobilization of the Team Leader/Water Resources Management Specialist and four national consultants.

3. During the inception phase of the TRTA, five irrigation systems were selected for possible inclusion as subprojects (SPs) of the proposed IAIP. The selection of potential subprojects involved the following activities:

• Development of selection criteria; • Collection and review of irrigation-related data available in the Cambodia Irrigation

Schemes Information System (CISIS) in MOWRAM and other sources, including the Provincial Departments of Water Resources and Meteorology (PDWRAMs) in the target provinces;

• Conduct of field visits to the target provinces to: (i) gather primary data/information available at the site and at the PDWRAM office; (ii) familiarize the TRTA Team with the biophysical and environmental conditions in the system; (iii) undertake a rapid technical review of existing irrigation facilities, with focus on the technical quality, materials integrity, and structural stability of the infrastructure as well as the status of the operation and maintenance (O&M) arrangements; and (iv) meet with PDWRAM and local officials, farmer/water user beneficiaries, and other community representatives to ascertain their willingness to participate in the proposed project; and

• Longlisting, shortlisting, and final selection of candidate subprojects.

4. The criteria that were used for the selection of subprojects were those that were adopted during the preparation of the now ongoing Upland Irrigation and Water Resources Management Sector Project (Loan 3289-CAM). These selection criteria are the following:

• The SP has low irrigation efficiency and water productivity but has scope for substantial enhancement of both irrigation efficiency and water productivity.

• The SP requires only a rehabilitation of existing irrigation infrastructure and systems or related schemes, NOT the construction of new infrastructure and systems.

• The SP should involve rehabilitation of both main and secondary canals to ensure that farmers and sharecroppers who work on faraway lands will be reached.

• The command area of the SP should be sufficient to generate substantial economic returns.

• The SP should be economically viable and technically, socially, and environmentally feasible.

• Majority of beneficiaries should be sharecroppers, poor farmers, women, and other vulnerable and excluded groups.

• The SP should be located away from the Tonle Sap.

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• The SP should not be covered by other existing or proposed development projects financed by ADB, such as the Water Resources Management Sector Project (WRMSDP) (Loan 2672-CAM [SF]) and the Climate-Resilient Rice Commercialization Sector Development Program (Rice SDP) (Loan 3007-CAM), or by any other development partner (DP).

• The SP will, to the extent possible, not significantly require land acquisition or involuntary resettlement (including the displacement of squatters or encroachers from the rights of way, applying both permanent and temporary physical and economic displacements). Proposed subprojects assessed as Category A under the ADB Safeguard Policy Statement (SPS) (2009) (i.e., considered to entail significant land acquisition impacts) during initial screening will not be eligible under the proposed project.

• The SP must be maximum Category B for Environment and Category C for Indigenous Peoples under the ADB SPS (2009).

5. After a screening of candidate SPs, the Kamping Pouy Irrigation System (KPIS) in Battambang Province and the Prek Po Irrigation System in Kampong Cham were selected as core subprojects (CSPs) of the proposed IAIP (Fig. 1).

Figure 1: Location of the Two Core Subprojects

Source: TRTA Consultant

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6. This Feasibility Study Report (FSR) on the Kamping Pouy Subproject presents the findings and recommendations of the TRTA Team2 on the proposed modernization of the KPIS. The report includes the results of the technical, financial, and economic due diligence, as well as the poverty and social (including gender) and environmental assessment of the proposed subproject. The FS was undertaken from November 2017 to April 2018 and involved the conduct of desk research, site inspections and system walkthroughs,3 local stakeholder consultations, and technical and socioeconomic surveys.4

7. This report is organized in 10 chapters, as shown below. I Introduction II Subproject Assessment III Hydrology and Water Availability IV Agriculture V Management of Improved System Performance VI Subproject Cost Estimates VII Economic Analysis VIII Environmental Safeguards IX Social Safeguards X Gender Analysis

2 This Feasibility Study was conducted by the following specialists: Dr. Jan L.M.H. Gerards, Water Resources Specialist/

Team Leader; Mr. Hugh Milner, Hydrologist; Dr. Genaro San Valentin, Agronomist; Mr. Surendra Prasad Joshi, Hydraulic Design Engineer; Mr. Enrique Tajanlangit, Structural Design Engineer; Mr. Umesh Nath Parajuli, On-farm Water Management Specialist; Dr. Rosa Perez, Climate Change Specialist; Mr. Chhim Sophea, Irrigation Management Specialist/Deputy Team Leader; Mr. Im So Monichoth, Hydrologist; Mr. Chin Koeun, Agronomist; Mr. Hap Chanthea, Economist; Mr. Chem Phalla, Institutional Specialist; Mr. Phai Sok Heng, Hydraulic Design Engineer; and Mr. Cheam Sar, Hydraulic Design Engineer. Individual international specialists hired directly by ADB handled the environmental, poverty and social, and gender assessment of the KPIS subproject. These specialists are: Mr. Neil Urwin, Environment Specialist; Ms. Susan Novak, Gender and Social Development Specialist; and Mr. Tran Quy Suu, Social Safeguards Specialist. The maps contained in this report were drawn by national CAD operators.

3 The photodocumentation of the field visits and system walkthroughs is presented in Appendix 1. 4 The conduct of technical and socioeconomic surveys in the KPIS was subcontracted by PRIMEX to national consulting

firms. The topographic survey of KPIS was subcontracted to KHTC Engineering Co. Ltd., the geotechnical survey to Mekong Advantech Group (MAG) Co. Ltd., and the socioeconomic survey to TANCONS. The technical surveys were conducted from 8 January 2018 to 9 April 2018, and the socioeconomic survey was carried out from 5 March to 18 April 2018.

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II. SUBPROJECT ASSESSMENT

A. Review of Current Situation and Options for Improvement and Modernization

8. The Kamping Pouy Irrigation System stretches for 35 kilometers (km) from the west of Battambang Town to the reservoir and system canal intakes. Battambang province is located in the northwest part of Cambodia. It is bordered by the provinces of Banteay Meanchey to the north, Pursat to the east and south, Siem Reap to the northeast, and Pailin to the west (Fig. 2). It has a total land area of 11,702 km2 and is subdivided into 14 districts. It ranks as the third most populous province in the country with a population of 1,036,523 in 2008. Being part of the Tonle Sap Biosphere Reserve, the province has fertile rice fields and a mostly agricultural economy.

Figure 2: Location Map of the Kamping Pouy Irrigation System

Source: TRTA Consultant

9. The KPIS was originally constructed during the Khmer Rouge time, between 1975 and 1978. Only the reservoir embankment of about 6.5 km and one main canal of about 9 km were built at that time; there was no distribution network. After the collapse of the Khmer Rouge government in 1987, the Kamping Pouy reservoir and main canal were rehabilitated by the RGC. In 1999, the system was again rehabilitated with financial support from the Italian Government. Eight distribution canals were constructed to cover a command area of about 700 ha. In the early 2000s, the system was expanded, with co-financing from the Italian Government and the Japan International Cooperation Agency (JICA), through the construction of 19 distribution canals to cover another 2,650 ha. Between 2007 and 2009, RGC, through MOWRAM, constructed an irrigation canal network covering a command area of 1,800 ha. In the last few years, the Kamping Pouy Reservoir embankment has been strengthened, and four outlet structures (head regulators) equipped with gates have been constructed. In addition, a barrage was constructed on the Mongkol Borey River to divert river flow through a newly constructed 13.9-km long link canal (Ou Don Pove Canal) into the reservoir as a supplementary supply to fill the reservoir up during the wet season. A distribution canal network covering a combined command area of 2,200 ha is currently being constructed under two subprojects of the ADB-funded Rice SDP.

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10. The tail-end of the KPIS command area is located right to the west of the rapidly urbanizing Battambang Town. It is estimated that at least 10% of the KPIS command area will be affected by the development of Battambang Town in the next 10 years. Thus, this tail-end portion of the command area is not included in the proposed KPIS command area of 12,000 ha (Fig. 3). It is assumed that water from the reservoir will be used mainly for crop irrigation in the remaining command area, although it is possible that it may also be used for domestic and industrial consumption in the future.

Figure 3: General Layout of the Kamping Pouy Irrigation System

Source: TRTA Consultant

11. The Kamping Pouy Reservoir has an earthen dam of 6.5 km and is equipped with four outlet structures, which deliver irrigation to different parts of the command area (Table 1). The reservoir has a maximum storage capacity of 139 million cubic meters (mcm), from which the available storage is about 101 mcm, with the balance for flood control. The maximum flood extent of the reservoir is 48.30 km2.

Table 1: Outlet Structures on the Kamping Pouy Reservoir Embankment

Outlet No. No. of

Intake Gates

Sill Elevation

(m ) Function

Area Served (ha)

1 8 20.50 Irrigation 2,000

2 1 20.50 Irrigation and flood spillage 1,000

3 6 20.50 Irrigation and flood spillage 1,800

4 10 20.50 Irrigation 14,200*

Total Command Area 19,000 * 12,000 ha is the command area of this subproject; another 2,200 ha outside the subproject command area are being

developed by the Rice SDP. Source: TRTA Consultant

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12. The catchment area of the Kamping Pouy Reservoir is 388 km² with an average annual rainfall of 1,299 mm and an average annual inflow of 78.80 mcm. The dam crest elevation is at 26.30 meters above sea level (masl) with a crest width of 8.00 m, and the connecting road and saddle dam are at 25.30 masl. High water level during floods was recorded to rise to as high as 24.50 m. The normal full water level is recorded at 23.80 m, and the low water level at 20.50 m. 13. Reservoir water is augmented by additional supply from the Mongkol Borey River through a 13.9-km link canal. The catchment area of Mongkol Borey River is 2,758 km2, which provides an average annual flow of 914 mcm. A barrage has been constructed on the river in Ta Haen Village to convey part of the river flow into the Kamping Pouy Reservoir. The barrage functions as a diversion structure with a storage capacity of 12 mcm.

14. The link canal connecting Mongkol Borey River to Kamping Pouy Reservoir plays a very important role in providing additional water supply to fill the reservoir during the rainy season. A 1-m layer of silt has accumulated on the Link Canal bed due to the collapse of the steep canal side slopes. Consequently, the conveyance capacity of the canal has been considerably reduced compared to its original design capacity. Deepening the canal bed below the original design level and stabilizing its embankments will significantly increase the conveyance capacity of the Link Canal, thus increasing the annual inflow into the reservoir in addition to inflow from the reservoir catchment. The schematic diagram of inflows into the Kamping Pouy Reservoir is in Figure 4.

Figure 4: Schematic Diagram of Inflows into Kamping Pouy Reservoir, Battambang

Source: TRTA Consultant

15. The upstream slope of the dam is eroded along its whole stretch (Fig. 5), and a segment of about 1.5 km is protected by local wooden pilings. Seepages are also visible in some stretches of the downstream foot of the dam of about 150 m. These seepages are considered minimal in comparison to the total volume of the reservoir storage capacity. Seepage will be controlled to some extent once upstream slope protection is done.

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Figure 5: Erosion on the Upstream Slope of the Reservoir Embankment

Erosion on Reservoir Slope Timber Riprap to Protect the Eroded Slope

Source: TRTA Consultant

16. Kamping Pouy irrigation network. Different parts of the KPIS command area receive irrigation water from different outlets of the reservoir. The Kamping Pouy Subproject will cover a command area of 12,000 ha, which will get irrigation water from the 10-gate Outlet No. 4 of Kamping Pouy Reservoir. The existing canal network in KPIS is shown in Figure 6, and the list of irrigation and drainage canals in the target command area of the Kampong Pouy Subproject are listed in Table 2.

Figure 6: Existing Canal Network in KPIS

Source: TRTA Consultant

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Table 2: Existing Irrigation and Drainage Canals in the Kamping Pouy Subproject Area

No. Description Number Length (km) Function/s

1. Main canal 1 9.8 Irrigation

2. Secondary canals (N1, N2, and N3) 3 28.5 Irrigation and drainage

3. Distribution network 150 264.0 Irrigation and drainage

Total 154 301.5 Irrigation and drainage Source: TRTA Consultant

17. The main canal is 9.8-km long. In general, it is functional, but some sections of the side slopes are eroded or covered with heavy vegetation, causing siltation inside the canal and resulting in a narrower access road (Fig. 7). The side slopes of the canal are covered by bushes and trees, which reduce the conveyance capacity of the canal. Most of the regulating structures on the main canal have piping problems and are eroded on the downstream portion, but the water coming from the reservoir is clean.

Figure 7: Photos of the Main Canal Embankment Showing Erosion and Thick Vegetation

Eroded Main Canal Side Slope Thick Vegetation on MC Embankment

Source: TRTA Consultant

18. The main canal is equipped with different types of structures such as check and offtake structures, culverts, spillways, escapes, and bridge crossings. Some of these structures are in good shape, but most of gates, including the lifting mechanisms on the check and offtake structures, are damaged, and this affects the operation of the system. The main problem of the gates is the lack of proper maintenance. Some structures show water erosion underneath the foundation through the “piping” of water, leading to breakage and collapse of concrete, as well as seepage and water loss through the check and offtake structures with gates that do not close properly. Erosion was observed at the downstream sides of most of the structures due to the lack of sufficient energy dissipating facilities. Seepages were also seen inside the embankment, thereby damaging the compacted earth material and eventually causing the embankment to collapse. The immediate repair of the main canal embankment is, therefore, necessary.

19. There are no adequate check structures and outlet structures on the main canal to maintain the water level and divert water into the secondary canals and the distribution system. The same observation is true for the secondary and tertiary canals. Debris is also found in the canals, mainly due to the collapse of side slopes (see photos in Appendix 1). As in the main canal, bushes and trees grow on the side slopes and beds of most of the secondary canals, disrupting the conveyance of water. In addition, most of the control and distribution structures are damaged. Water overtops the secondary canal embankment during full supply due to the inadequate height of the embankment. Farmers at the tail-end of the secondary canals do not get enough water due to the insufficient capacity of the distribution structures. To remedy the situation, some farmers use pumps to irrigate their rice land, similar to the ones in the command area of secondary canals N1 and N2. 20. Drainage system. The flood enters the command area through bridges and culverts across National Highway No. 57, running along the southwest boundary of the KPIS command area. There

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is a drainage canal network within the command area, but the drains are silted up, and the openings of the structures are undersized, leading to inundation of some parts of the command area. In 2013, about 4,500 ha of wet season rice crop in four communes (Phnom Sampove, Ta Kream, Omal, and Chrey) were flooded (Fig. 8).

Figure 8: Flood Map of KPIS

Source: TRTA Consultant

21. System O&M. One of the major problems of the KPIS is the lack of proper maintenance. Because of trees and bushes growing on the side slopes of the irrigation canals, debris from bank erosion/collapse is deposited on the canal bed, resulting in the significantly reduced conveyance capacity of the canals. Moreover, all the steel gates of the existing outlets and check structures are broken due to the lack of proper maintenance. This condition is seen in most parts of the KPIS main and secondary canals.

B. Proposal for System Modernization

22. To provide irrigation to the target command area of 12,000 ha of the Kamping Pouy Subproject, the following infrastructure facilities will be upgraded: (i) Kamping Pouy Reservoir dam; (ii) link canal from Mongkol Borey River into the Kamping Pouy Reservoir; (iii) main and secondary canals and associated structures; and (iv) drainage network and associated structures.

23. Three options for the modernization of the KPIS were evaluated based on system functionality and cost of civil works and O&M. It must be noted that the O&M cost and the level of effort of the PDWRAM and the FWUC in system O&M are a function of the degree of system upgrading as the O&M cost for a system with fully lined canals is lower than for a system with partially lined and earthen canals and is much lower than that for an earthen system.5

1. Option 1

5 In Cambodia, the average O&M cost is placed at $50/ha/yr for earthen canals, while that for lined canals is estimated at

only 10% of the O&M cost of unlined canals or $5/ha/yr.

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24. This is the option with the least canal lining and the lowest cost of $15.93 million including 10% physical contingency. The system will require regular maintenance by the PDWRAM and the FWUC. The layout of the system under Option 1 is shown in Figure 9. As the command area to be irrigated under the main and secondary canals will change, the nomenclature of the canals will also change based on the hierarchy of the canals. One of the current secondary canals (N2) will be converted into the main canal since the area under the command of this canal will increase significantly.

Figure 9: Layout of the Kamping Pouy System, Option 1

Source: TRTA Consultant

25. The scope of civil works under Option 1 will include the following:

• Upgrading of the 13.9-km length of the link canal by concrete lining of an 8-km long segment for diverting additional water from Mongkol Borey River to the Kamping Pouy Reservoir;

• Strengthening of the 6.5-km reservoir embankment by the application of erosion protection on the upstream slope;

• Upgrading of the 14.14-km main canal by (i) concrete lining of the inner canal slopes of the initial 5.6 km to increase canal efficiency and (ii) improvement of 28 distribution and control structures;

• Rehabilitation of secondary irrigation canals SC1 and SSC1, with a total length of 8.5 km, and improvement and installation of 41 structures within the subproject target command area to ensure water delivery to 6,083 ha;

• Rehabilitation of secondary irrigation and drainage canals SCD2, SCD3, SCD4, and SCD5, with a total length of 6.9 km, and improvement and installation of 101 structures

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within the subproject target command area to ensure water delivery to 5,517 ha and prevent inundation of 3,000 ha; and

• Installation of seven drainage structures in secondary drain SD1 and tertiary irrigation cum drainage canal TN16 to prevent inundation of paddy lands within the target command area.

2. Option 2

26. Under this option, 9.17 km of the 14.14-km main canal will be lined with concrete, compared to the concrete lining of only 5.6 km of the main canal under Option 1. With a much longer stretch of the main canal lined with concrete, irrigation water will be delivered to the end of the canal with less conveyance losses (Fig. 10). Option 2 will also require a lower yearly O&M cost and less maintenance effort on the part of the FWUC and PDWRAM. However, the cost of civil works will increase to $20.11 million including 10% physical contingency.

Figure 10: Layout of the Kamping Pouy Irrigation System, Option 2

Source: TRTA Consultant

27. The scope of civil works under Option 2 will include the following:

• Rehabilitation of the slope protection of the reservoir embankment, 6.5 km; • Modernizing the link canal from the Mongkol Borey River, 13.9 km; • Providing the main canal with concrete lining for a length of 9.167 km, from station 0+000

m to station 9+167 m, and modernizing the associated structures; • Modernizing the main canal earthworks, 4.969 km, from station 9+167 m to station

14+136 m, and associated structures; • Providing secondary canal SC1 with concrete lining over a 5.7-km length and

modernizing associated structures; • Modernizing secondary canal SSC1 earthworks, 7 km, and associated structures;

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• Modernizing secondary canal and drain SCD2 earthworks, 11.3 km, and associated structures;

• Modernizing secondary canal and drain SCD3 earthworks, 7.2 km, and associated structures;

• Modernizing secondary canal and drain SCD4 earthworks, 9.1 km, and associated structures;

• Modernizing secondary canal and drain SCD5 earthworks, 12.3 km, and associated structures;

• Construction of check structures on three secondary drains; and • Construction of one check structure and one box culvert structure in tertiary canal TN16.

3. Option 3

28. This option will involve the full concrete lining of the system and an upgrading of majority of the canals (Fig. 11). Option 3 will enable the delivery of irrigation water with the least conveyance losses, require a low annual O&M cost and less maintenance effort from the PDWRAM and FWUC, and ensure the sustained functionality of the system over the long term. However, the cost of Option 3 is the highest among the three options at $24.45 million including 10% physical contingency.

Figure 11: Layout of the Kamping Pouy System, Option 3

Source: TRTA Consultant

29. The scope of civil works under Option 3 will include the following:

• Rehabilitation of the slope protection of the reservoir embankment, 6.5 km; • Modernizing the link canal, 13.9 km, from the Mongkol Borey River to the reservoir; • Modernizing the main canal by concrete lining of 14.136 km, from station 0+000 m to

station 14+136 m, and associated structures; • Modernizing secondary canal SC1 by concrete lining, 5.7 km, and associated structures;

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• Modernizing secondary canal SSC1 by concrete lining, 7 km, and associated structures; • Modernizing secondary canal and drain SCD2 earthworks, 11.3 km, and associated

structures; • Modernizing secondary canal and drain SCD3 earthworks, 7.2 km, and associated

structures; • Modernizing secondary canal and drain SCD4 earthworks, 9.1 km, and associated

structures; • Modernizing secondary canal and drain SCD5 earthworks, 12.3 km, and associated

structures; • Construction of check structures on three secondary drains; and • Construction of one check structure and one box culvert structure in tertiary canal TN16.

4. Comparison of Options

30. The key features of the three design options and their corresponding cost estimates are summarized in Table 3 below.

Table 3: Comparison of Three Design Options and Cost Estimates of Civil Works, KPIS

No. Items of Work Option 1 Option 2 Option 3

1. Link canal, 13.90 km 8 km concrete lined; 5.9 km earthen

8 km concrete lined; 5.9 km earthen

8 km concrete lined; 5.9 km earthen

2. Reservoir embankment protection, 6.5 km

Gabion protection Gabion protection Gabion protection

3. Main canal, 14.14 km 5.6 km concrete lined; remaining earthen

9.17 km concrete lined; remaining earthen

Entire 14.14 km concrete lined

4. Secondary canal No.1 (SC1), 5.7 km

Earthen canal Concrete lined Concrete lined

5. Sub-secondary canal No.1 (SSC1), 7 km

Earthen canal Earthen canal Concrete lined

6. Four secondary irrigation and drainage canals, 39.90 km

Earthen canal Earthen canal Earthen canal

Total Cost of Civil Works $15,934,584 $20,112,501 $24,450,638

Source: TRTA Consultant

31. In Option 1, the main and all secondary canals will be modernized, but only the first 5.6-km segment of the main canal will be lined with concrete. This option focuses more on FWUC strengthening and places importance on the improvement of system O&M. It is the least expensive option for irrigating 12,000 ha of the target subproject area without sacrificing water augmentation in Kamping Pouy Reservoir from Mongkol Borey River, while also providing a solution to mitigate existing drainage and flooding problems. However, it will require a higher O&M cost as well as greater effort and prior training of the PDWRAM and FWUC to build their capacity in the proper management of system O&M of the various facilities. Option 3 will need less O&M cost and effort, but would require a much higher investment cost, when lining is not really needed in those parts of the canal, which are stable and will remain so with proper O&M. Thus, Option 2 is recommended, as it will involve the concrete lining of only those parts of the canals, which need strengthening to avoid collapse when subjected to poor O&M. The detailed cost estimates of the three options are presented in Appendix 2.

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C. Proposed Civil Works for System Modernization, Option 2

32. The Kamping Pouy Subproject is designed to irrigate a net command area of 12,000 ha in five communes with areas within the IAIP focus area (Table 4). It will serve an additional area of 2,200 ha at the north of the target command area in Anlong Run and Ou Taki communes of Thmar Koul District, where farmers are currently getting water from one of the secondary canals (N1 or SC1). It should be noted that the communes of Thmar Koul District have irrigated areas both within the IAIP focus area of 12,000 ha, as well as in the adjacent areas that are covered by other funding agencies and projects.

Table 4: Commune-wise Command Area of the Kamping Pouy Subproject

District Communes Area (ha)

1. Banan

1. Phnom Sampove 1,350

2. Takream 3,120

3. Chrey 4,610

2. Thmar Koul 4. Anlong Run 50

5. Ou Taki 170

3. Battambang 6. Omal 2,700

Total 12,000

Source: TRTA Consultant

33. The command area is divided into eight blocks (Blocks A-H), as shown in Figure 12. However, it is proposed to add an additional block of 2,200 ha (Block I), which is presently being irrigated by the main canal (up to 5.6 km) and secondary canal SC1 (Table 5).

Figure 12: Irrigation Blocks of the Kamping Pouy Subproject

Source: TRTA Consultant

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Table 5: Irrigation Blocks

Blocks A B C D E F G H I Total

Net Area (ha) 762 918 1,437 2,446 2,367 639 3,150 281 2,200(*) 14,200(**) (*) Additional command area outside target subproject area (**) Total command area including the additional area outside the subproject target area.

Source: TRTA Consultant

34. The provision of adequate irrigation water to the target area will be achieved by the modernization of the irrigation facilities and associated structures in the KPIS. This will involve the following civil works under Option 2:

• Upgrading of the 13.9-km canal linking the Mongkol Borey River to the Kamping Pouy Reservoir by the concrete lining of 8 km of the link canal;

• Strengthening of the reservoir embankment of 6.5 km by providing erosion protection on the upstream slope;

• Modernization of the 14.14-km main canal, including the concrete lining of an initial 9.17 km, upgrading the earthworks in the non-lined section, and improving 28 distribution and control structures;

• Rehabilitation of secondary irrigation canals SC1 and SSC1 with a total length of 12.7 km by the concrete lining of 5.7 km and installation of 41 structures within the subproject target command area to ensure water delivery to 6,083 km; and

• Rehabilitation of secondary irrigation and drainage canals SCD2, SCD3, SCD4, and SCD5 with a total length of 6.9 km and improvement and installation of 101 structures within the subproject command area to ensure water delivery to 5,517 ha and prevent the inundation of paddy lands within the command area (Table 6).

Table 6: Proposed Civil Works for the Upgrading of KPIS, Option 2

No.

Canals Symbol Command area (ha)

Blocks Length

(km) Canal Type

No. of Structures

1. Link canal LC 13.9 8 km lined

2. Main canal MC 14,200 Blocks A – I

14.1 9.17 km lined

28

3. Secondary irrigation canals

SC1 and SSC1

6,083

Blocks C, D, and I

12.7 5.7 km lined

41

4.

Secondary irrigation and drainage canals

SCD2, SCD3, SCD4, and SCD5

5,517 Blocks E and G

39.9 Earthen 101

5. Drainage canals SD1 and TN16

Drainage Earthen 5

Source: TRTA Consultant

35. About 73.1 km of irrigation canals and drains within the target command area will be upgraded, and 117 structures will be constructed and improved. As was noted above, the communes of Thmar Koul District have irrigated areas both within the IAIP focus area of 12,000 ha, and in the adjacent areas not covered by IAIP. This explains the difference in the number of structures in Table 6 as most of them are within the IAIP focus area, but others are part of the neighboring area.

1. Upgrading of the Link Canal

36. At present, the annual inflow from the Kamping Pouy reservoir catchment is not sufficient to fill the reservoir up to its maximum storage capacity. In 2015, a barrage (Ta Haen Barrage) and a 13.9-km link canal were constructed to divert water from Mongkol Borey River into the Kamping Pouy Reservoir. However, as no lining was provided, the canal has degraded and about 1 m of silt

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has accumulated in more than 10 km of the canal length due to the erosion of the side slopes, resulting in a significant reduction of its conveyance capacity. As there is a big difference in the water level of Kamping Pouy Reservoir (23.6 m) and Ta Haen Reservoir (30 m), it is possible to increase the conveyance capacity of the link canal by deepening the canal bed. Lining the canal will allow high permissible water velocity and prevent the erosion of the canal’s side slopes. It is proposed that a 9.7-km stretch of the link canal (between the Mongkol Borey intake and the entrance to the reservoir) be lined with concrete to enable more water to flow into the Kamping Pouy Reservoir from Mongkol Borey River. 2. Strengthening of the Reservoir Dam

37. Strengthening the reservoir dam. To control the surface erosion upstream of reservoir, an 8-m wide gabion mattress is proposed for construction along the entire 6.5-km length of the dam (Fig. 13).

Figure 13: Typical Cross-section of the Proposed Slope Erosion Control Work for the Reservoir Dam

Source: TRTA Consultant

3. Upgrading of Main Canal

38. The erosion of the earthen side slopes of the existing main canal has resulted in the accumulation of a thick layer of silt on the canal bed, thereby significantly reducing the conveyance capacity of the canal. It is, therefore, proposed that the side slopes of an initial 5.6-km length of the main canal, which takes off from the reservoir through 10 gates, be lined with concrete. (A typical section of the proposed main canal is shown in Figure 14.) In addition, the earthworks in the remaining section of the main canal will be upgraded, and a total of 28 different types of structures will be provided on the main canal, mostly to replace existing structures.

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Figure 14: Typical Section of Proposed Main Canal

Source: TRTA Consultant

4. Modernization of Irrigation and Drainage Canal Network 39. The flood enters the Kamping Pouy command area through a bridge and a culvert at National Highway No. 57, running along the southwest boundary of the subproject command area and flowing through secondary irrigation and drainage canals SCD4 and SCD5. The flood spreads over only 4,500 ha of land in the command area due to the insufficient capacity of these drainage canals and the obstruction of flow by a road embankment constructed along SD1.

40. Thus, to increase the capacity of the drainage canals, sections of secondary irrigation and drainage canals SCD2, SCD3, SCD4, and SCD5 will be enlarged, proper canal intersections will be provided, and the culverts of the road embankment along SD1, which are blocking drainage flow, will be enlarged. These design measures will prevent inundation of the command area and enable the water to drain into the Ou Ta Ki command area.

41. In addition, six secondary canals with a total length of 52 km will be upgraded; four of these secondary canals (SCD2, SCD3, SCD4, and SCD5) will have the dual function of irrigation and drainage. A total of 142 structures will be installed in the secondary canals. Of these, five structures will be constructed in secondary drainage canal SD1 and two structures in tertiary irrigation and drainage canal TN16 to regulate water level and enable the use of drain water for irrigation.

III. HYDROLOGY AND WATER AVAILABILITY

A. Introduction

42. The hydrology studies undertaken for the Kamping Pouy Subproject focus on what is required to serve as the basis for engineering design of this selected system, defining the water available, the flood conditions to be managed, and the recommended improvements to hydro-meteorological data collection equipment necessary for the ongoing O&M of the improved irrigation in the Kamping Pouy Subproject. These include, but are not limited to, the assessment of water availability of the reservoir, inflow from the local catchment, water diversion for Mongkol Borey River, adjustment of the cropping pattern and irrigation scheduling, and Kamping Pouy Joint Reservoir Operation Scheme (KAPOS) (see Fig. 4), which is the key element of the system operation.

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B. Rainfall

43. The most reliable rainfall (and climate) data are those for Bek Chan (Battambang). This station is also the closest to the Kamping Pouy command area. The statistical data on rainfall in Battambang is given in Table 7 below.

Table 7: Monthly Statistical Rainfall (mm) at Bek Chan (Battambang)

1985–2011 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual

Average 4 24 49 97 141 131 157 189 227 239 66 6 1,329

Dry 80% 0 0 25 41 78 79 111 127 163 163 17 0 1,164

Dry 50% 0 13 48 76 135 123 155 181 218 232 34 1 1,340

Wet 20% 9 39 74 158 213 172 203 234 288 318 110 14 1,469

Max year 24 100 100 291 302 248 233 378 397 441 381 20 1,707

Min year 0 0 11 20 24 42 27 77 86 105 0 0 1,062

Source: PDWRAM Battambang

44. The average rainfall in the Kamping Pouy subproject area goes above 100 mm per month during the wet season, starting from May to October. The rainfall in the wet season is collected by the reservoir catchment and stored in the reservoir. The water from the reservoir will be delivered to different parts of the KPIS command area for irrigation purposes. However, during a wet year, the reservoir will be full for a few months, and surplus water is released through one or two of the four outlet structures on the reservoir embankment to Ou Taki River (northeast part of the command area). However, average monthly rainfall is very low during the dry season. In contrast, evaporation is over 5 mm during the first six months of the year and drops below 5 mm during the second half of the year.

C. Evaporation

45. Estimates of evaporation in the project area are available from the Bek Chan (Battambang) climate station. The monthly statistics of pan evaporation for the eight-year period of available records are given in Table 8 below. This information was used to estimate evaporation from the Kamping Pouy reservoir surface (using a constant pan factor of 0.7) as part of the water balance calculations. Average monthly rainfall and evaporation in the KPIS area are presented graphically in Figure 15.

Table 8: Average Daily Evaporation (mm) at Bek Chan (Battambang)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Average daily evaporation

5 5 6 5 5 5 4 4 3 4 3 4

20% (wet) 4 5 5 5 5 4 4 4 3 3 3 4

Dry 50% 5 5 6 6 5 4 4 4 4 4 3 4

Dry 80% 5 6 6 6 6 5 4 4 4 4 4 4

Source: PDWRAM, Battambang

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Figure 15: Average Monthly Rainfall and Evaporation in the Kamping Pouy Subproject Area

Source: PDWRAM, Battambang

D. Runoff from Kamping Pouy Reservoir Catchment

46. Since measured streamflow data are available only for Mongkol Borey and not for Kamping Pouy, estimates of inflow to Kamping Pouy from its catchment were determined from computerized modeling. Flow from an upstream sub-basin was routed to the lowest point in the sub-basin and added to the flow calculated from the daily rain falling in the next sub-basin. The model output provides consistent flow estimates at the bottom of each sub-basin for the period, 1985–2011. 47. A SWAT model was calibrated for Mongkol Borey catchment, which is adjacent to the Kamping Pouy reservoir using data on daily flow and rainfall, soil type, and land use. This calibration gave SWAT model coefficients for different sub-catchment land use types, which were then applied to the sub-catchments of Kamping Pouy Reservoir. The Kamping Pouy SWAT model was used with Battambang daily rainfall to generate daily estimates of inflow to Kamping Pouy reservoir. Daily flow estimates were summed to obtain monthly flow estimates for the period, 1985– 2011.

48. Streamflow. The catchment area of Kamping Pouy is small (51,819 ha) and has little variation in elevation. The water available from this local catchment is insufficient to support dry season irrigation in the full proposed command area of 18,000 ha. In average and wetter years, inflow from this local catchment could be useful for supplemental irrigation, topping up paddies during gaps in rainfall during the wet season. Kamping Pouy Subproject aims to utilize the existing Kamping Pouy Reservoir and improve the distribution canal system in the command area below the reservoir. The result is that the runoff from this area is small, except in major storm events, and the water available from this local catchment is insufficient to support dry season irrigation in the full proposed command area of 18,000 ha.

49. Part of the project will clean, upgrade, and partially line an existing link canal, which takes off from the Mongkol Borey River some 13 km west-northwest of reservoir and which feeds into the Kamping Pouy Reservoir as a supplemental source of water. Combining the runoff of Kamping Pouy with the water drawn from the Mongkol Borey will provide sufficient water to irrigate the 18,000 ha of KPIS, under strict rules and procedures, over a period not exceed 220–230 days for both wet and dry season crops.6

6 This is explained in greater detail in Chapter V, Section B.1. Joint Reservoir Operation.

0

1

2

3

4

5

6

7

0

50

100

150

200

250

300

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ave

rag

e M

on

thly

Eva

po

rati

on

,

mm

Ava

ge

Mo

nth

ly R

ain

fall,

mm

Average Monthly Rainfall and Evpaoration, Bek Chan Station, Battambang

Used for Kamping Pouy Subproject

Average Monthly Rainfall Average Monthly Evaporation

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50. The estimated inflow from the local catchment (in mcm) into Kamping Pouy Reservoir is given in Table 9 and shown in m3/s in Figure 16.

Table 9: Estimated Inflow from the Local Catchment into Kamping Pouy Reservoir

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Average 1.05 0.32 0.20 0.15 0.12 0.29 1.08 4.48 11.77 14.81 9.13 3.59 Maximum 3.47 1.07 0.33 0.24 0.19 5.41 6.82 14.69 22.84 22.04 19.10 9.66 Minimum 0.00 0.00 0.00 0.00 0.01 0.02 0.04 0.04 0.06 0.08 2.21 0.58 20% Exceedance

1.33 0.38 0.25 0.19 0.15 0.13 1.43 9.89 15.91 19.25 11.51 4.28

50% Exceedance

1.06 0.32 0.22 0.17 0.14 0.12 0.11 2.01 12.87 15.88 9.82 3.70

80% Exceedance

0.43 0.19 0.14 0.11 0.09 0.08 0.07 0.19 7.55 12.52 6.39 2.15

Source: TRTA Consultant

Figure 16: Average, Minimum, and Maximum Local Inflows (m3/s) into Kamping Pouy Reservoir

Source: TRTA Consultant

E. Diversion Flow from Mongkol Borey River

51. A diversion structure and canal have been constructed to convey water from Mongkol Borey to Kamping Pouy reservoir (Fig. 17). The canal, known as Ou Dounpov Canal, is about 13.9 km long and was visually assessed as carrying water to Kamping Pouy reservoir, at a rate of the design of Kamping Pouy upgrade by K-Water with the capacity of this canal, to be 3.7 m3/s. The diversion structure in Mongkol Borey could be increased in height and the canal could be enlarged to increase its original designed diversion capacity of 13 m3/s.

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Figure 17: Layout of Kamping Pouy Showing Mongkol Borey Diversion Canal

Source: TRTA Consultant

52. The flows in Mongkol Borey were analyzed to estimate the monthly flow that could be diverted to Kamping Pouy if the diversion structure and canal are improved. It is estimated that the monthly flow that could be diverted to Kamping Pouy by an improved Ou Dounpov diversion canal (or the Link Canal) from MongKol Borey River will be increased from the current capacity of around 2 m3/s to more than 13 m3/s between May to February, the period for growing two crops. 53. For this reason and following the logic of e-flow estimates for other countries, a rule was developed to retain a small flow in that river and meet basic water needs in the lower Mongkol Borey. As a first approximation, the recommendation to reserve 30% has been applied, with the addition that some limitation be extended to the whole year since major fish migrations occur during the wet season, thus also complying with the best practice recommendation to maintain annual flow variability. 54. The estimation made, thus, allows for 30% of the 1 in 4 year (dry 80%) flow to remain in the Mongkol Borey in all months of the year, except in the months where flow is less than the 80% flow, when 30% of that lower flow is allowed to continue down the Mongkol Borey. The monthly water diversion into Kamping Pouy Reservoir is presented in Figure 18.

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Figure 18: Mongkol Borey Flow at the Diversion Point

Source: TRTA Consultant

55. Total monthly inflow into the Kamping Pouy Reservoir is the combination of the inflow from the reservoir catchment and the diversion flow from Mongkol Borey River. The inflow is very low, or nearly no flow, during the driest months, between February and May. However, the inflow increases dramatically during the rainy season and reaches its peak in October at about 29m3/s.

F. Reservoir Routing

56. A simple spreadsheet model was used to study the water balance of Kamping Pouy Reservoir. The model assesses the balance of water remaining in the reservoir at the end of each month, with water being added by inflow and removed by evaporation and released for irrigation. The model calculates the spill from the storage if maximum capacity is exceeded. Kamping Pouy reservoir has a capacity of 110 mcm (K-Water, 2015) (Table 10). The hydrograph for the inflow of Kamping Puoy Reservoir from Mongkol Borey River is shown in Figure 19, and the flow hydrograph for the total monthly inflow to Kamping Pouy Reservoir is in Figure 20.

Table 10: Kamping Pouy Reservoir Elevation, Surface Area, and Volume

Water Level (m) Reservoir Area (km2) Reservoir Volume (mcm)

19.00 0 0

20.50 10 9

21.00 15 16

22.00 33 39

23.00 41 77

23.80 48 110

Source: K-Water, 2015

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Figure 19: Hydrograph—Inflow to Kamping Pouy Reservoir from Mongkol Borey River

Source: TRTA Consultant

Figure 20: Flow Hydrograph—Total Monthly Inflow to Kamping Pouy Reservoir

Source: TRTA Consultant

G. Reservoir Balance

57. Water balance in the Kamping Pouy Reservoir depends largely on the combined inflow from the local catchment (Kamping Pouy Reservoir catchment) and the diversion flow from Mongkol Borey River through a Link Canal, and water released from the reservoir through different outlets for irrigation and other purposes. Evaporation from reservoir surface is incorporated in the outflow from the reservoir. Over time, the reservoir water level will fluctuate between 21.00 m and 23.00 m compared with mean sea level. This would mean that, as shown in Figure 21, the reservoir storage capacity will fluctuate between 20 and 80 MCM, which is more than sufficient to irrigate the command area with the proposed cropping pattern. This coincides with the observation of system operators, who have observed that the reservoir has never been empty.

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Figure 21: Kamping Pouy Reservoir Rating Curve: Elevation–Volume

Source: K-Water, 2015

58. Figure 22 shows that water is available in the Kamping Pouy Reservoir throughout the whole year for irrigating up to 2.3 crops per year. The proposed cropping pattern used in the water balance study is shown in Figure 23.

Figure 22: Water Balance of Kamping Pouy Reservoir

Source: TRTA Consultant

Figure 23: Potential Cropping Pattern with Respect to Reservoir Water Availability

Source: TRTA Consultant

18

23

28

0 20 40 60 80 100 120

Ele

va

tio

n,

m

Volume, MCM

Kamping Pouy Reservoir Rating Curve

Volume - Elevation

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Water Balance into Kamping Pouy Reservoir, Based on 50% ScenarioCondition Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Inflow from Cat. 50%, m3/s 1.06 0.32 0.22 0.17 0.14 0.12 0.11 2.01 12.87 15.88 9.82 3.70

% Of diversion flow from MBR 0% 0% 0% 0% 0% 0% 30% 30% 20% 20% 20% 50%

Diversion from MBR 50%, Max = 13m3/s - - - - - - 4.17 9.52 13.00 13.00 13.00 13.00

Total Inflow 50%, m3/s 1.06 0.32 0.22 0.17 0.14 0.12 4.28 11.54 25.87 28.88 22.82 16.70

Total Ouflow, m3/ 7.63 7.90 6.67 7.13 8.44 0.06 0.58 1.03 1.30 1.23 4.85 8.55

Inflow-Outflow, m3/s -6.57 -7.57 -6.45 -6.96 -8.31 0.06 3.71 10.51 24.57 27.65 17.97 8.15

Inflow-Outflow, MCM -2.45 -2.83 -2.41 -2.60 -3.10 0.02 1.38 3.92 9.17 10.32 6.71 3.04

Start Up Storage, MCM 70

Reservoir Balance, 50%, MCM 67.55 64.72 62.31 59.72 56.62 56.64 58.02 61.94 71.11 81.43 88.13 91.17

59. Table 11 presents the water balance in the Kamping Pouy Reservoir on a monthly basis. The balance is based on an 80% probability of a dry year or four out of five years being dry, and this is applied to the combined reservoir inflows and evaporation from the reservoir surface. Water release from the reservoir, which is the key outflow, is done in accordance with the cropping pattern of two rice crops per year in 100% of the command area, as the starting basis. The first crop is to be planted early in the wet season, between May and July, and the second crop in the late rainy season, between September and December. A third crop is also introduced. As rice requires the most water for irrigation, a third crop is introduced for the water balance study.

Table 11: Water Balance of the Kamping Pouy Reservoir

Source: TRTA Consultant

60. Reservoir balance of Kamping Pouy Reservoir: 50% inflow scenario. The water balance of Kamping Pouy Reservoir based on a 50% inflow scenario, presented in Table 12 and Figure 24, has the following features:

• The water balance in the reservoir is dependent on outflow from the reservoir through adjusting the irrigation water supply with the cropping pattern and evaporation from the reservoir surface.

• Inflow from the local catchment (Kamping Pouy Reservoir catchment) and from diversion of water from Mongkok Borey River through the Link Canal with a planned maximum diversion capacity of 13m3/s.

• Proposed cropping pattern of 2.3 crops per year: (1) May to August = 100%; (2) September to December = 100%; and (3) January to March = 30% of the total combined command area of 18,000 ha.

Table 12: Water Balance in Kamping Pouy Reservoir, 50% Inflow Scenario

Source: TRTA Consultant

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Water Balance into Kamping Pouy Reservoir, Based on 80% ScenarioCondition Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Inflow from Cat. 80%, m3/s 0.43 0.19 0.14 0.11 0.09 0.08 0.07 0.19 7.55 12.52 6.39 2.15

% Of diversion flow from MBR 0% 0% 0% 0% 0% 0% 40% 40% 30% 20% 30% 50%

Diversion from MBR 80%, Max = 13m3/s - - - - - - 4.59 7.27 13.00 13.00 13.00 8.29

Total Inflow 80%, m3/s 0.43 0.19 0.14 0.11 0.09 0.08 4.66 7.46 20.55 25.52 19.39 10.44

Total Ouflow, m3/s 7.63 7.90 6.67 7.13 8.44 0.06 0.58 1.03 1.30 1.23 4.85 8.55

Inflow-Outflow, m3/s -7.20 -7.71 -6.53 -7.02 -8.35 0.02 4.08 6.44 19.25 24.29 14.54 1.89

Inflow-Outflow, MCM -2.69 -2.88 -2.44 -2.62 -3.12 0.01 1.52 2.40 7.18 9.06 5.43 0.71

Start Up Storage, MCM 70

Reservoir Balance, 80%, MCM 67.31 64.44 62.00 59.38 56.26 56.27 57.79 60.20 67.38 76.44 81.87 82.57

Figure 24: Kamping Pouy Reservoir Balance, 50% Inflow Scenario

Source: TRTA Consultant Note: With the proposed adjusted cropping pattern, diversion from Mongkol Borey River will be required only

during the wet season. Diversion will be done in order to fill the reservoir at the end of the wet season so the reservoir water can be used in the coming dry season.

61. Reservoir balance of Kamping Pouy Reservoir at 80% inflow scenario. The water balance of Kamping Pouy Reservoir based on an 80% inflow has the following features (Table 13; Fig. 25):

• Water balance in the reservoir is dependent on the outflow from the reservoir through irrigation supply adjusted to the planned cropping pattern and evaporation from the reservoir surface.

• Inflow from the local catchment (Kamping Pouy Reservoir catchment) and diversion from Mongkol Borey River through Link Canal with a planned maximum diversion capacity of 13m3/s.

• Proposed cropping pattern of 2.3 crops per year: (1) May – August=100%; (2) September – December = 100%; and (3) January – March = 30% of total combined command area of 18,000 ha.

Table 13: Water Balance of Kamping Pouy Reservoir, 80% Inflow Scenario

Source: TRTA Consultant

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Figure 25: Kamping Pouy Reservoir Balance, 80% Scenario

Source: TRTA Consultant Note: With the proposed adjusted cropping pattern, diversion from Mongkol Borey River will be required only

during the wet season. Diversion of water is done to fill up the Reservoir at the end of the wet season so the reservoir water can be used in the coming dry season.

62. The Water Balance Study of Kamping Pouy Reservoir, as presented in Tables 12 and 13 and in Figures 24 and 25, show that, with a combined inflow, the reservoir can supply irrigation water for 2.3 rice crops every year over the whole system command area of 18,000 ha. The proposed joint reservoir operation is described in Chapter V.

IV. AGRICULTURE

A. Current Farming Practices

63. The production area in the Kamping Pouy Subproject is generally prone to flooding. Thus, rainfed rice cultivation is the best land use during the wet season from May to October. With very limited internal and external drainage facility, the area becomes suitable for paddy production during the wet season using long-term traditional rice varieties, which have a wide range of maturities (from early to late), grain types, and eating quality. Some varieties are distinctly fragrant and sticky, with varying grain color from white to reddish brown to almost black. 64. The rice-based farming system in Kamping Pouy is described as follows:

• Rice production is basically traditional smallholder rainfed rice farming during the wet season together with a variable number of open-grazed cattle or water buffalo and almost always with native chicken, ducks, and pigs within home lots.

• More than 60% of farmers grow one crop of the traditional photoperiod-sensitive varieties and about 30% of farmers produce two wet season rice crops, which are a combination of early maturing and medium maturing photoperiod-sensitive varieties. Sen Kro Ob, an officially released variety, is fast becoming the most popular early maturing variety because of its fragrance and high market price, and it is preferred by traders and millers.

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• The rice farming system has evolved from a complete dependence on manual labor and animal power to almost fully mechanized farming (for land preparation and crop harvesting) since hired farm labor has become scarce and costly.

• Flooding caused by poor external drainage occurs in some areas within the subproject command area until the early months of the dry season (between January and February) and delays the establishment of the dry season crop, where three crops are produced using a combination of early maturing and medium maturing varieties.

• The farming practices reflect limited and inappropriate application of modern technology and products of scientific research, such as optimum plant population (e.g., excessive use of seeds), correction of soil fertility constraints (nutrient sources and rates of fertilizer application not according to location-specific nutrient management recommendations), and pest management that does not adhere to the integrated pest management (IPM) strategy.

• Yield ranges from 2-3 tons per hectare (t/ha), and the cost of production has increased due to the cost of inputs and mechanization of services.

• Traditional medium maturing varieties (Phka Rumduol, Raing Chey, and Phka Khnei), and the long maturing Neang Khon variety are the popular wet season varieties on account of their good performance during the wet season, high tolerance of soil stresses, and high price in the market.

• Some farmers keep seeds for planting in the next season and for home consumption. In general, though, harvested paddy is immediately sold to traders at a low price for lack of post-harvest and storage facilities. Millers buy cheap fresh paddy which they dry using their automated drying facilities.

• Non-rice crops are planted on a small scale, such as black sesame, soybean, mungbean, peanut, cucumber, Chinese cabbage, and watermelon.

B. Current Cropping Pattern

65. Traditional rainfed rice farming has continued in Battambang for many years. Farmers grow traditional rice varieties with varying grain characteristics and growth traits, but all are photoperiod- sensitive, requiring short day length to stimulate flowering, which starts in October. From the original one rice crop system, rice farming has gradually evolved to two-rice and sometimes three-rice cropping system.

66. There are now two dominant rice cropping patterns in Kamping Pouy, which differ in the number of rice crops harvested during the wet season, but both consist of traditional photoperiod sensitive rice varieties. Photoperiod-sensitive varieties are harvested between November and December. The two basic cropping patterns are:

• One single crop of long maturity, photoperiod-sensitive, traditional variety planted in the middle of June and harvested in November; and

• Two-rice cropping pattern, with the first crop an early maturing, non-photoperiod- sensitive variety followed by a medium (<120 days) to late maturing (>120 days), photoperiod-sensitive traditional variety. The first crop is planted in April and harvested in June. The second crop, generally the fragrant Phka Rumduol, is planted in July and harvested in November. The traditional varieties vary in fragrance, stickiness, grain type, and grain color, among others.

C. Soil Condition

67. Two major soil types are found in the subproject area, depending on landscape position (Table 14). Both soils are generally low in fertility, particularly in the content of plant-available phosphorus. On the slightly elevated part, which occupies about 80% of the subproject

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command area, the surface and subsurface soil texture varies from loam to clay. The lower ground occupying about 20% of the command area is predominantly clayey. Areas with loamy texture are easier to manage, and the soil structure, which is destroyed due to puddling, can easily regenerate. This is associated with the high content of phosphorus fixing oxide minerals of iron and aluminum, which contribute to soil acidity, and limited availability of phosphorus.

Table 14: Soil Types and Characteristics in KPIS

Soil Type Properties Inherent Limitations Landscape Position

Tuol Samroung Porous surface soil, both structure and texture (sandy loam to sandy clay); granulated structure with large and deep cracks formed when dried; mottles indicate the occurrence of anaerobic condition.

Low organic matter content, low CEC, deficient phosphorus (P) and potassium (K); hard pan could restrict root development to deeper depths.

Relatively high with undulating topography; occupies 80% of the area.

Prateah Lang Poorly structured sandy to loamy surface soil over loamy or clayey subsoil; presence of hard pan at depths >20 cm; with yellowish orange mottles, probably Ultisols.

Poor external drainage; remains saturated sometimes until February; restricted root development for deep-rooted crops.

Low-level lands in depressions; comprising 20% of the area.

Source: TRTA Consultant

68. The relative topographic position separates rice lands in KPIS under three different hydrologically different groups. One group is in slightly elevated ground, another is in the lowest part of the command area, and the last one is somewhere in between. Farmers in the lower grounds have to deal with the high risk of flooding every year.

D. Agro-inputs

69. There is limited use of appropriate technology in Kamping Pouy. For rice seeds, for instance, farmers depend on seeds saved from the previous cropping, even if they are aware that poor quality seeds result in poor crop stand and yield decrement. Training of capable farmers to become commercial seed growers will be necessary to improve farmers’ access to high-quality seeds of the recommended varieties.

70. Location-specific technology for nutrient and pest management should also be available to allow expression of the genetic potential of the high-yielding varieties. There are a number of nutrient limitations (e.g., P, K, and zinc [Zn]) already identified for the soils in Kamping Pouy, but the nutrient limitations are not reflected in what farmers practice in terms of fertilizer materials, the quantity applied, and the timing of fertilizer application. Training and demonstration with the participation of district agriculture extension officers and local farmers will be essential for the improvement of practices when the irrigation system becomes fully operational.

71. For the production of other dry season crops as alternatives to rice, access to seeds or planting materials may be a major limitation for farmers. A village-level seed production program for open pollinated crops may be implemented through a farmers’ field school (FFS) program. The demonstration component of the capacity building program will provide an opportunity to showcase different varieties of non-rice cash crops and allow farmers to select those that suit their preference. Commercial seeds are available for the crops in use, but most are available as hybrids, and, thus, cannot be replanted. For commercial production, commercial hybrid seeds may still prove profitable, especially if it is preferred by the market. Such is the case for sweet melon, green corn, and vegetables. Industrial crops used as raw materials for processing, including mungbean, soybean, sesame, and sunflower may be accessed from the Cambodia Agricultural Research and Development Institute (CARDI).

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E. Constraints to Yield and Field Recovery of Yield

72. As rice production in Kamping Pouy is basically rainfed, the planting of traditional varieties is still popular. The inherently poor internal and external drainage of soils in Kamping Pouy results in localized overflooding of rice paddies during the wet season, for which traditional varieties are better than modern varieties. There is also prolonged flooding in several villages located in the lower part of the landscape, which prevents farmers from establishing dry season rice in January. The transport of agricultural inputs and products likewise influences the farmers’ ability to adopt appropriate technology.

73. Drought and flooding. There is also a risk of early wet season drought in areas located at a higher topographic position, such as in the southern part of the command area, which is in Banan District. Only one crop of paddy rice could be grown there without a risk of crop damage due to the failure of rainfall during the early part of the wet season. For this condition, traditional varieties are better because they are resistant to short periods of drought and to common pests or diseases. Excessive water in the paddies also results in the poor quality of tillage and crop establishment by direct seeding.

74. Poor application of modern technology. Another constraint is the limited application of modern technology, particularly in fertilizer management appropriate for the soil nutrient limitations and varieties of the rice planted. Lack of access to village-level processing and market for dried rough rice compels farmers to sell newly harvested rice to traders supplying the large rice millers in the province. Farmers may take a better share of the benefit from rice product if sold dried or milled.

75. Rice seed. Farmers plant traditional medium to long maturing, photoperiod-sensitive varieties with limited response to fertilizer. Medium maturing Phka Rumduol, Raing Chey, and Phka Khnei, as well as long-maturing Neang Khon, are the popular wet season varieties, which farmers have long observed to perform well during the wet season, have high tolerance to soil stresses, and are their products are highly priced in the market. Some farmers have also grown early maturing varieties for their early wet season crop, such as Improved Rice (IR) 504, IR 66, and, more recently, Sen Kro Ob. Because of their lack of access to commercial seeds from local certified seed growers, farmers recycle seeds from their previous cropping. However, due to the lack of adequate seed storage facilities, seed quality deteriorates during long storage under unfavorable environmental condition. The reported yields of traditional and modern varieties range from 3.5–5 t/ha, but the yield potential of these varieties is not attained due to the inadequate application of technology for the expression of their full genetic potential.

76. Harvesting problems. Most rice is now harvested mechanically using combined harvester-threshers, and Kamping Pouy farmers estimate harvesting losses of up to 25%, primarily due to partially submerged paddies and uneven ripening of the crop at harvest time. Uneven grain size also has implications for rice millers. Maturing rice is harvested when 85% of the grains have turned to an orange color, indicating maturity. The guidelines must be verified for different varieties and seasons.

77. Marketing. Wet grain harvests are directly sold at a low price ($0.30/kg) to traders and millers who prefer to do the drying themselves. Hence, farmers do not get the most out of the potential value of their harvest when the grains are sold dry (14% moisture content) and milled for the local market at $0.75/kg milled rice for traditional varieties.

F. Increasing Crop Production and Modernization of Irrigation Systems

78. In addition to making the irrigation system more efficient and effective in water supply and distribution and assuring water users that they can receive the required irrigation water in a timely manner according to a regimented schedule of distribution that is planned, known, and agreed by all, the proposed subproject will include crop management and the provision of agriculture inputs to support the anticipated and required crop intensification. The need is for yields to increase during a shorter cropping season of 8-9 months, whether rice-rice or rice-cash crops, considering water productivity and land and crop management.

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79. It is necessary to establish close collaboration between the Battambang PDWRAM and the KPIS FWUC, with the support of MOWRAM and other ministries like the Ministry of Agriculture, Fisheries, and Forestry (MAFF), and to provide farmers with training and extension for them to be able to improve their rice yields. Farmers need to upgrade their skills–from planting and land preparation to systems of rice intensification (SRIs) to post-harvest technology and marketing. Physical works alone will not result in higher production levels.

G. Proposed Intensive Rice Cropping Pattern and Diversified Cropping System

80. The improvement of the KPIS will benefit more than 70% of farmers within the command area of the system, who are currently limited to only one wet season rice crop. The better utilization of water from the Kamping Pouy Reservoir will result in a higher dry season crop production. The proposed cropping pattern will focus on the wet season cropping of one early maturing variety followed by the traditional medium-maturing photoperiod-sensitive variety. The proposed cropping pattern also includes non-rice crops for the dry season period, December to April, to optimize the use of the land. The non-rice crops for planting during the dry season will be identified on the basis of certain criteria. Figure 26 shows the current cropping pattern together with the proposed rice-based cropping system for the KPIS area.

Figure 26: Current and Proposed Cropping Pattern for the Kamping Pouy Subproject

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H. Nutrient Management for Rice Production in Kamping Pouy

81. The rates of fertilizer application for direct-seeded and traditional, direct-seeded early-maturing rice varieties in phosphorus-deficient soils, which have been recommended by CARDI, are shown in Tables 15 and 16 below. These recommendations were based on experimental data from joint trials conducted by the International Rice Research Institute (IRRI) and CARDI in several testing sites throughout Cambodia. For phosphorus-deficient soils in Kamping Pouy, basal application of diammonium phosphate and urea and top dressing of muriate of potash is recommended. Over-application of nitrogen should be avoided in order to prevent lodging, particularly for traditional varieties. The leaf color chart (LCC) should be used to assess the status of plant nitrogen before making a decision to apply nitrogen.

Table 15: CARDI-recommended Fertilizer Application for Direct-seeded 90-day Variety

Fertilizer First Top

Dressing

Second Top

Dressing

Third Top

Dressing Fourth Application

(PI)

Diammonium Phosphate 50 kg

Urea 40 40 40

Muriate of potash 30 20

Application time (DAS) 15 days 20 days 30 days 40 days

Source: TRTA Consultant

Table 16: CARDI-recommended Fertilizer Application for Direct-seeded Traditional Varieties

Fertilizer First Top Dressing

Second Top Dressing

Third Top Dressing

Fourth Application (PI)

Diammonium Phosphate 50 kg

Urea 40 kg 40 kg 40 kg

Muriate of Potash 30 kg 20 kg

Period of Application Number of Days after Sowing (DAS)

If sown from 1-30 June 10 DAS 30 DAS 50 DAS 1-15 Sep

If sown from 1-15 July 10 DAS 30 DAS 50 DAS 10-15 Sep

Source: TRTA Consultant

82. As there are soil-specific limitations in the KPIS area, production practices should include improving crop resilience to soil stress related to limited or excessive water and overcoming location-specific limitations associated with the type of soil, topography, susceptibility to normal flooding, and drought. Farmer field school (FFS) groups will be assisted to conduct soil fertility tests using portable soil test kits. Adjustments in the recommended applications of phosphorus and potassium will be made based on the initial soil status of plant-available phosphorus and potassium. If soil phosphorus is <10 ppm, the rate should be adjusted to 60 kg P2O5 per ha until soils test indicate a P level of at least 10 ppm.

I. Proposed Cropping Pattern

83. Kamping Pouy farmers generally produce rainfed rice crop during the wet season. A dry season crop could be produced only by a few risk-taking farmers, who get irrigation water from the Kamping Pouy Reservoir. Water reaching the rice paddies under a limited period of water release is further constrained by the condition of the conveyance system within the highly variable topographic and soil condition in the area.

84. The improvement of the irrigation system will, therefore, aim at providing farms with adequate and timely release of irrigation water during the dry season. Planning for proper

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utilization of the water resource will be directed towards a more profitable dry season crop by considering other alternatives to dry season rice.

85. In the identification of the suitable cropping pattern for the KPIS area, importance was given to the existing rice cropping system, climatic and soil conditions, human resource capability, technical resources, and market, among others. More specifically, the following were taken into consideration in proposing the cropping pattern to be adopted in the subproject area:

• Rainfall during the long wet season and ease of soil flooding favors rainfed rice production in Battambang, permitting the production of two rice crops, including the traditional varieties, as well as recently acquired varieties preferred by traders and local consumers.

• There is long period between the harvesting of wet season rice crop and the onset of the next wet season to produce either an early maturing rice or non-rice crop.

• The proposed cropping pattern assumes that irrigation will be available to farmers during the dry season.

• It is common knowledge that if water is available, farmers prefer to grow dry season rice, rather than a non-rice crop, because of their familiarity with the technology and the ease of marketing the produce. However, the farmers may consider growing a non-rice crop depending on the selling price of the product in the market.

• Technology and training for the production of a dry season crop will be made available to farmers.

• There are indications of farmers’ willingness to enter into a cooperative undertaking to produce and supply a specific product, but with a price guarantee and the provision of technical assistance in various aspects of the crop’s value chain.

• Adequate drainage and access roads will be in place in the lowlying areas and a diversion of water from a higher topographic position in order to facilitate the operation and transport of goods and services.

86. Increasing the cropping intensity from a single rice crop per year to two or three crops in the same production unit is quite often the focus of most irrigation development activities to support the national objective of increasing supply of rice. In contrast, a diversified rice cropping system involves non-rice crops planted in sequence or together with rice within the same production unit. The two-rice or three-rice cropping pattern is currently being practiced in other areas in Cambodia, but diversified rice cropping system is just beginning to gain popularity for economic reasons. 87. The two-rice system is already being practiced by some farmers in Kamping Pouy, but a three-rice system would be suitable if irrigation is provided to farmers for a dry season crop. The features of the two-rice and three-rice cropping pattern are:

• The two-rice cropping pattern is not dependent on irrigation. Hence, it could be practiced in Kamping Pouy with some risks due to abnormal rainfall conditions, either moisture stress or flooding. Drought-resistant and submergence-tolerant varieties have been developed and have been the subject of continuing research and development (R&D) in IRRI and collaborating countries in Southeast Asia, but with only limited success. Therefore, climate-resilient irrigation systems should be designed to address this problem.

• Wet season yields are usually below the potential yield of the rice varieties. Wet season rice production in Cambodia and other countries in Southeast Asia with distinct wet and dry season is constrained by factors such as low solar radiation during cloudy days, water lodging, pests, and diseases.

• The three-rice cropping pattern is an option to produce better yields during the dry season if irrigation is available, as climatic conditions during this time are favorable for the

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expression of the genetic yield potential of modern rice varieties. The expected benefit will come from the increase in yield from one single crop of rice.

88. Following are some management measures for growing an irrigated dry season crop immediately after harvesting the previous wet season crop:

• The wet season rice crop must be harvested from early November until the middle of December to benefit from residual soil moisture from the previous rice crop.

• The rice field must be cleared of residues of previous crops and made ready for plowing as early as mid-December.

• Irrigation should be available as early as January and throughout the year, when water is needed during periods of erratic rainfall resulting from climate change.

• No grazing of cattle or water buffalo must be allowed in the vicinity of the paddies to be planted with non-rice crops or dry season rice.

• Farmers must be organized into groups and provided with technical advice or assistance in the various aspects of production, post-production processing, and marketing of the dry season crop.

• Farmers must be provided with extension services on the various aspects of production and post-production.

• Fertilizer management must be location-specific, equivalent to the best farmers’ yield obtained for the variety.

89. Agronomic research on rice-based cropping systems have been conducted since the establishment of IRRI in the 1960s and continued by national agriculture research systems (e.g., CARDI). Documented studies on rice-based cropping systems have shown that soil fertility and sustainable crop productivity can be better achieved by diversification of rice-based cropping systems, especially involving legumes and cash crops. The proposed rice-based cropping patterns involving non-rice crops were designed not only to provide rice farmers with the opportunity to improve their household income but also to improve the soil condition for sustainable crop productivity.

90. Diversified crops for KPIS will be planted after the wet season rice is harvested in October-November. The following were considered in designing the proposed diversified rice-based cropping pattern:

• Crops in the pattern will consist of a combination of the most profitable wet season rice crop(s) following the dry season rice crop or selected non-rice crop, which is agronomically suitable and economically feasible for the dry season period.

• Wet season rice crop will be established in May, planting either the early maturing modern variety preferred by traders, followed by the medium maturing, photoperiod-sensitive varieties or the medium/long maturing, photoperiod-sensitive variety scheduled for harvest in November or December.

• The dry season crop (either rice or non-rice) must immediately follow the harvest of the wet season rice crop in November or December (either early maturing rice variety followed by rice and followed by rice) or a more profitable non-rice crop (rice followed by non-rice crop followed by rice), which will require only intermittent irrigation that fits the water release program for the command area.

• The non-rice dry season crop should have favorable crop water use and water productivity7 among crops of almost similar production and value of product.

7 Crop water use (m3/ha) is estimated using potential evapotranspiration (ETo) calculated using the Penman-Monteith and

monthly averages of the climatic parameters and crop coefficients together with estimates of soil moisture retention properties. Water productivity is the amount or value of product per unit volume or value of water used by the crop.

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• Water users will be organized and presented a proposal on contract farming. The choice of product may be decided on the basis of value chain analysis and thorough economic and financial feasibility.

• The non-rice crop does not require special skills and equipment, has lower risks of losing investment due to natural causes, and farmers are familiar with the product.

30. For a quick turnaround time and early use of the residual soil moisture and nutrients from the previous wet season rice cropping, paddies should be immediately planted by direct seeding of some non-rice crops. The residual soil moisture after rice is harvested may still support short-term crops if quickly established. The residual nutrients applied to rice may also benefit crops grown after rice. The non-rice crop should be short duration and must be harvested before the start of the wet season. Access to irrigation water in Kamping Pouy will prevent the established crops from moisture stress.

91. Farmers should be encouraged to grow non-rice crops during the dry season when irrigation becomes available. Organizing farmers to produce specific agricultural crops and linking production to the market is a good and fast way to encourage farmers within KPIS to search for technologies to overcome limitations to yield and farm productivity. A few crops may be evaluated for this purpose, e.g., soybean, mungbean, and sesame. Contract farming or contract production is advantageous since products will be directly sold to the processor rather than through traders.

92. Although grain yield and perhaps even profitability of non-rice crops may not be comparable to rice, especially when drought is predicted to occur, there is expectedly better yield performance of drought-tolerant crops, such as sesame and mungbean, than modern rice varieties with shallow root systems and greater sensitivity to moisture stress.

93. The average grain yield for soybean in Cambodia is 1.5 t/ha, which is considered low compared with grain yields from its other Asian neighbors, where yields of 3 t/ha are normally obtained. With good production management, particularly fertilizer management and use of high-quality seeds of adopted varieties, soybean yields in Cambodia can exceed 3 t/ha.

94. However, sesame (Sesamum indicum L.) appears to be the best among these three non-rice crops for almost all the areas in Kamping Pouy because of the following:

• Sesame is drought resistant with a growth duration that fits well in the dry season period after harvest of the wet season rice crop.

• Known to farmers in Battambang, black sesame is cultivated by some, who say that sesame grows well in any soil condition in Battambang and that its yield could be improved if the existing soil fertility limitation is corrected.

• Sesame can be planted by direct seeding and can be harvested with the same combined thresher-harvester used for harvesting rice, with some modification.

• It is heat-tolerant and grows well when soil is saturated with water, which is the condition after the harvest of rice in November or December in Battambang.

• Its production cost is low (seeds cost only $6 for 3 kg/ha). • It uses less water and nutrients. • It is used in ecological manipulation of the rice environment and in the improvement of the

population of natural enemies of rice insect pests. • It commands a high price in the local market, with the current price ranging from $1–2/kg. • It is easy to grow and adapts to a wide range of conditions as it is both drought- and

submergence-tolerant; both conditions occur in the KPIS area. • Coordinated production, processing, storage, and marketing could be organized. • It is used in various higher value products such as oil, snacks, and bakery products. • It could create more jobs and generate a village-level processing industry.

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• Sesame has great export potential (Myanmar is the biggest producer and exporter among Southeast Asian countries).

95. Other potentially suitable non-rice crops are listed in Table 17 together with the crop duration, average production, and estimated water productivity based on reported water consumption.

Table 17: Potentially Suitable Non-Rice Crops for Consideration and Related to Water Productivity

Crop Crop

Duration (Days)

Production Price per Unit ($) Unit Quantity

Sweet corn 60-70 pcs/ha 40,000 pcs/ha 0.10/pc

Sweet potato 90-100 t/ha 15 t/ha 1.00/kg

Sesame 110-115 kg/ha 0.90 t/ha 2.00/kg

Mungbeans 90-100 t/ha 1.1 t/ha 1.62/kg

Soybeans 90-100 1.5-2.0 t/ha 1.5 t/ha 1.07/kg

Watermelon 90-100 kg/fruit >5,000 fruits/ha 1.00/kg

Squash 75-100 kg/pc >5,000 pc/ha 1.00/kg

Peanut 90-100 t/ha 1.0 t/ha 1.93/kg

Source: TRTA Consultant

96. Calculation of water productivity provides one of the bases for selecting the dry season crop for irrigation. Table 18 below lists some crops and their calculated water productivity using the dollar value of the crop. Despite its low yield in Cambodia, its high price in the market gives sesame the advantage over all other crops; its yield could still increase with the application of good management practices. Mungbean gave the second highest water productivity, apparently because of its good price in the market because it is consumed by many in various forms. including bean sprouts.

Table 18: Comparison of Water Productivity of Non-Rice Dry Season Crops with Sen Kro Ob Rice

Crop Crop

Duration (Days)

Production (t/ha)

Value

of Product1

($/kg)

Water Requirement

(m3/ha)

Water Productivity

($/m3)

Rice (Sen Kro Ob) 95-110 5.0 0.30 3492 0.34

Sesame 85-100 0.8 2.75 3010 0.73

Mungbean 90-100 1.0 1.62 2700 0.60

Soybean 90-100 1.5 1.07 3850 0.41

Peanut 90-110 1.0 1.93 3500 0.55 1 Prices were obtained from the website of the Ministry of Commerce of Cambodia (downloaded on 19 April 2018).

97. Both crop yield and market price determine the value of the crop. Hence, non-rice crops with high yield and market price would easily attract farmers, rather their water productivity. It appears that non-rice crops are comparable with the dry season rice (Sen Kro Ob) despite the latter’s high dry season rice yield. Farmers may just continue to plant rice since they are already accustomed to the rice production system. Also, because of the existing marketing system for rice in Battambang, farmers may find it difficult to consider shifting to a new crop, unless a similar marketing system is put in place and the crop’s post-harvest requirements are met.

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J. Capacity Building

98. Farmer training. Farmer training will be key to bringing about the adoption of modern rice production technology. The farmer field school (FFS) model, which has proven successful in this regards, will be introduced under the subproject. It is suggested that 370 FFS groups be set up in the KPIS area, each with around 30 farmers and an assigned facilitator who will train the farmers on the FFS system. Each facilitator will be responsible for 10 field schools. The farmers will meet every two weeks to discuss their problems and possible solutions. One national agronomist together with 3 district extension agents will also be required to provide technical support.

99. Demonstrations. Fifty demonstration plots will be established in association with a number of FFS groups in order to demonstrate the proper methods and techniques of field water management, land preparation, direct seeding, fertilizer application (basal and top dressing), weed control, pest and disease control, and harvesting and marketing.

100. Credit. Microfinance institutions (MFIs) operating in the subproject area will be encouraged to work with the farmers and extend them seasonal credit for improved inputs. Farmers will be assisted in preparing their loan applications based on realistic and \achievable projections of yield and income.

101. New technology. It is essential to introduce new technology, especially in the area of variety development, to sustain crop yield and productivity. New pests and diseases must be anticipated in the light of climate change effects not only on pests and disease-causing organisms, but also on the genetic tolerance of existing varieties. Where new technology, especially mechanization, is demonstrated and proven popular and the demand exists, entrepreneurial farmers will be supported to invest in machinery.

102. Seed multiplication. Access to high quality seeds of adapted varieties will be an essential requirement for the enhancement of agricultural productivity with the provision of irrigation. This will start with development of local capability to produce commercial seed parallel with field evaluation of promising adapted rice varieties of similar quality and marketability.

103. Seed quality. High quality seed comes at a price; at government seed production stations, seeds sell at $0.75/kg. CARDI produces foundation and registered seeds and sells to seed growers at $2.50 and $2.00/kg, respectively. Good seeds can be procured at $0.40/kg. The current practice of broadcasting seed at up to 250 kg/ha (partly to control weeds and especially in the dry season) will not be an economically viable practice. Farmers will need to be supported to move away from broadcasting seed to direct drilling of seed and to use other, better methods of weed control.

104. Varieties. In order to improve cropping intensity and make more efficient use of irrigation water the growing of short season non-photoperiod sensitive rice varieties will be promoted. Cropping calendars will be designed to minimize the period that crops will be exposed to the most drought-prone periods. There is proven demand from Vietnam and Thailand for particular varieties and seed of these will be made available by rice millers who at end of harvest become wholesale buyers for export to Thailand and to China through shipping through Sihanoukville.

105. Puddling and deep tillage. This is necessary for the rice root system to permit proliferation and extraction of nutrients and water and anchorage. A sufficiently puddled soil has soft surface mud8 ideally from 12-15 cm, and this condition enables roots of adequately spaced plants to efficiently use nutrients from the deeper layers of the soil. In the old times, farmers used herds of water buffalo to puddle the field by trampling upon the soil and create a soft surface paddy soil condition before planting. However, the gradual shift from animal to tractor power over the years has made farmers forget about the quality features of good land preparation for rice. Over time, farmers have forgotten about the original purpose of puddling, although some traditional farmers in Eastern Samar,

8 Soft mud is achieved when your hand goes down freely almost to the wrist as it is pushed down the soil and when raised

only very thin mud goes with the hand.

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Philippines, in East Timor, and in Bali, Indonesia still use herds of water buffalo to trample or puddle the soil until soft.

106. The mechanization of land preparation hardly achieves the ideal puddled condition of the soil, which is required for a good crop. A hand tractor pulling a rotavator is limited in depth and, therefore, will not be capable of performing deep tillage even with a special plow since it is not powerful enough. The problem is aggravated by the presence of pond water while plowing is being done. The splashing of pond water is thought to be same as puddling. When farmers plow using a hand tractor, the plow sole or artificial hard layer is created, and only a plow pulled by a four-wheeled tractor is needed to turn the soil over.

107. Deep plowing must be done at least once every two years. The effective plowing depth of the disk or mouldboard plow pulled by a four-wheeled tractor can be controlled to cut deeper than the splashing rotavator ordinarily used by farmers. Depth of plowing ideally ranges from 12-15 cm. Sadly, many farmers and even agronomists are not aware of this.

K. Economic Benefits

108. Assumptions, yield targets, and agriculture input to achieve yield targets. Since the project aims to increase rice yield and farm productivity, the project will recommend the proper use of agricultural inputs and improved farming practices–from seed selection to land preparation, planting, fertilizer management, pest management, and reducing harvesting losses, among others.

109. The interventions will focus on good land preparation, use of high-quality seeds, and control of the plant population by limiting the quantity of seeds broadcasted, adequate and proper use of fertilizers, application of IPM, and drainage of paddies before harvesting. The expected effects of these interventions on the yields of wet and dry season crops are shown in Table 19.

Table 19: Yield Targets and Agriculture Inputs Needed to Achieve Targets in KPIS

Agronomic Parameters and

Inputs Season Unit

Without Project

Support

With Project Support + Agri Inputs

Water

Only

With All Agri Inputs

(Year 7)

With All Agri Inputs

(Year 12)

Cropping intensity Wet % 100 100 100 100

Dry % 30 60 100 100

Yield Wet t/ha 2.5 3.5 4.5 4.5

Dry t/ha 3 3.5 5.0 5.0

Fertilizer Wet Adopting, % 50 70 100 100

Dry Adopting, % 50 70 100 100

Pesticides Wet Adopting, % 50 30 20 5

Dry Adopting, % 50 40 20 5

Quality land preparation

Deep and puddled

Adopting, % 25 50 100 100

Crop establishment

Wet Transplant 0 0 0 0

Broadcast 100 100 100 100

Dry Transplant 0 0 0 0

Broadcast 100 100 100 100

Seed quality

Poor quality Adopting, % 80 30 0 0

Certified seed quality

Adopting, % 20 70 100 100

Non-rice crops Wet+Dry Adopting, % 0 20 30 40

Submergence

during harvesting

Wet Managed, % 100 50 25 5

Dry Managed, % 5 0 0 0

Source: TRTA Consultant

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110. Two cropping seasons are presented in the above table. The wet season baseline yield (without project) is set at 2 t/ha, while the dry season yield is 3 t/ha. There is a difference in yields between the wet and dry season because the climatic conditions are different, and the dry season condition is favorable for the expression of the genetic potential of the rice variety given the same inputs.

111. The proposed IAIP will target a 12,000 ha for total irrigation both during the wet and dry seasons. At present, the wet season area is 12,000 ha, and dry season area is only 6,000 ha.

112. Adequate provision of irrigation water is expected to increase the wet season yield from 2.5 t/ha to 3.5 t/ha after seven years. Dry season yield is expected to increase from 3 t/ha to 3.5 t/ha with the availability of water, along with other interventions, and to 5.0 t/ha after seven years. Further yield increases after seven years are expected to result from more accurate water management in the rice fields as the FWUC members become more efficient in their operations and avoid yield reductions resulting from submergence stress. Other factors that will bring this about include the adequate and timely supply of nutrients, protection of the crop from pests and diseases, and improvements in the physical environment (deeper plowing and uniform puddling, ideal population density, control of flood water during fertilizer application and harvesting).

113. Benefit stream. The calculated combined wet and dry season benefit after five years is $22,500,000 from the target irrigation area of 12,000 ha. Farmers’ yields will increase gradually as extension and other support services are provided, and farmers gradually begin to accept the importance of improved practices.

114. The benefit stream for Kamping Pouy irrigation project is shown in Table 20–22 using a product value of $250/t. The wet season benefit amounts to $7,500,000 at the end of five years, and the dry season benefit amounts to $10,500,000 for a combined benefit of $18,000,000. The benefit stream assumes that agricultural inputs will be progressively in place from Year 1 to Year 5 to address farmers’ technological constraints in the entire KPIS command area.

Table 20: Combined Wet and Dry Season Benefits

Year Wet Season Benefit ($) Dry Season Benefit ($) Total Benefit ($)

1 300,000 200,000 500,000

2 1,200,000 800,000 2,000,000

3 2,700,000 2,325,000 5,025,000

4 4,800,000 5,850,000 10,650,000

5 7,500,000 10,500,000 18,000,000

Source: TRTA Consultant

Table 21: Wet Season Benefit Stream

Year

Without Project With Project Gross Product Value

(Vw-Vwo )

Net Product Value

(Vn-Vyn-1)

Net Value

($)

Area, ha (1)

Yield, t/ha (2)

Product, tons

(Vwo = 1x2)

Area, ha (1)

Yield, t/ha (2)

Product, tons (Vw = 1x2)

0 12,000 2.5 30,000 0 0 0 30,000 0 0

1 9,600 2.5 24,000 2,400 3.0 7,200 31,200 1,200 30,0000

2 7,200 2.5 18,000 4,800 3.5 16,800 34,800 4,800 1,200,000

3 4,800 2.5 12,000 7,200 4.0 28,800 40,800 10,800 2,700,000

4 2,400 2.5 6,000 9,600 4.5 43,200 49,200 19,200 4,800,000

5 0 0 12,000 5.0 60,000 60,000 30,000 7,500,000

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Table 22: Dry Season Benefit Stream

Year

Without Project With Project Gross

Product Value

(Vw-Vwo )

Net Product

Value

(Vn-Vyn-1)

Net Value

($)

Area,

ha

(1)

Yield,

t/ha

(2)

Product,

tons

(Vwo = 1x2)

Area,

ha

(1)

Yield,

t/ha

(2)

Product,

tons

(Vw = 1x2)

0 6,000 3 18,000 0 0 0 0 0 0

1 4,000 3 12,000 2,000 3.4 6,800 18,800 800 200,000

2 2,000 3 6,000 4,000 3.8 15,200 21,300 3,200 800,000

3 0 3 0 6,500 4.2 27,300 27,300 9,300 2,325,000

4 0 3 0 9,000 4.6 41,400 41,400 23,400 5,850,000

5 0 3 0 12,000 5.0 60,000 60,000 42,000 10,000,000

V. MANAGEMENT OF IMPROVED SYSTEM PERFORMANCE

A. Introduction 115. The previous chapters of this report laid the groundwork and the basis for the proposed civil works improvements and agriculture-related measures and actions that will lead to economically viable and sustainable increases in cropping intensity and yield level in the KPIS. This chapter describes the technical and non-technical aspects of irrigation system improvement, which have to be put in place to ensure increased irrigation efficiency and water productivity. More specifically, this chapter covers the following aspects:

• Main system operation: joint canal and reservoir operation, irrigation scheduling, and irrigation efficiency;

• Climate proofing; • On-farm water management (OFWM): options for improving OFWM, land leveling, and

high-efficiency irrigation methods; • Irrigation maintenance and institutional aspects of system operation: PDWRAM,

FWUC; and • Capacity building for improved irrigation O&M.

B. Main System Operation

116. After the civil works shall have been completed, the performance of the KPIS will depend on the following prerequisites being met:

• Reservoir operation and water scheduling prepared for the timely release of irrigation water on a 10-day period for 230 days (two cropping seasons: June and January) or 23 periods of 10 days each;

• A Joint Reservoir Operation (JOROP) Unit formed with key stakeholders represented and participating in its functioning;

• KPIS FWUC trained on the new water delivery schedule and adherence, incorporating their observations on how to make it work;

• FWUC provided access to, and trained on the, use of a package of key agro-inputs with a focus on rice intensification;

• Measuring devices installed, monitored, and data used for irrigation water scheduling, with the FWUC in the lead role in collecting data and managing reservoir operation; and

• A basic operational plan prepared, based on water efficiency, water productivity, market opportunities, and an agro-input package affordable and known to the farmers/water users.

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1. Joint Reservoir Operation (JOROP)

117. Kamping Pouy Reservoir provides water to four different parts of the entire Kamping Pouy command area through four different gates (see Fig. 4). These four gates supply water to what are, in essence, four different irrigation systems with a total command area of 18,000 ha. The four sub-schemes under one system need to be operated jointly because they all use the same water source. The joint operation of the reservoir will require the preparation of water distribution plans, which will specify how much and when the water will be released to each sub-scheme every 10 or 14 days, and which have to be agreed to by all the four subsystems.

118. The scheduling of water release will be achieved through the JOROP of the Kamping Pouy Scheme (KAPOS), where all users with claim on the reservoir water will participate under the leadership of the Battambang PDWRAM. The JOROP KAPOS will take on an institutional identity and become the entity to which all FWUCs will submit their plans, be informed of when planting will start and where in the command area, based on a yearly rotational plan. This plan may be altered yearly based on (i) the blocks which are the first to receive water, and (ii) the availability of water stored in the reservoir. The JOROP KAPOS will also monitor the rate of evapotranspiration (Eto) and effective rainfall every 10 days and consider the information in water release planning. This will be done for each 10-day period at the start of season.

119. The JOROP KAPOS will have to be established by a MOWRAM decree and instruction and will be considered the primary irrigation management unit for the full command area of the KPIS. This should be done in the first year of construction and will be a key responsibility of PMU and the Project Management and Implementation Consultant (PMIC). This new unit should be under the guidance of the PDWRAM, but should have as members the key leaders of each of the FWUCs of all the four parts of the irrigation blocks, viz., the upgraded IAIP section and those supported by the Korea Fund and the Rice SDP. In addition, the district MAFF and selected commune leaders should attend the meetings of the JOROP KAPOS.

120. The purpose of establishing a JOROP for the KPIS is to move towards a formal, official manner of water distribution, irrigation planning, and scheduling by blocks in contrast to the current informal and uncoordinated manner of water release, often without documentation of the time and amount of water release. Record keeping of decisions and procedures to assure that all water users are properly informed of the water release schedule will be part of the responsibility of the JOROP KAPOS. This is based on the IAIP objectives of improving irrigation efficiency, using less water for more accurate application, and shifting from rice-rice cropping to rice-cash crop in the dry season to increase income. The latter is feasible if water release is controlled, crop management is available, and agro-inputs, training, and marketing assistance are provided to farmers.

121. The key elements for a successful JOROP include: (i) use of less water; (ii) agreement of parties to divide the reservoir water among the gates; (iii) monitoring of reservoir storage and rainfall; (iv) assessment of the market; (v) avoiding the drought period as much as possible; and (vi) women comprising a considerable percentage of the FWUC membership. It is important that in the run-up to the completion of the civil works, arrangements are put in place for the joint operation of the Kamping Pouy Reservoir to ensure the delivery of water to all four irrigation blocks over a compressed cropping period of eight months for two crops on 18,000 ha of rice land.

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Kamping Pouy Reservoir: Operational Guidelines

• The Kamping Pouy Reservoir will irrigate a command area of 18,000 ha covered by the IAIP Kamping Pouy Irrigation Scheme (KPIS).

• The reservoir will be operated for a maximum of nine (preferably eight) months of two cropping seasons as an adaptive management measure in response to the climate change threat.

• A Joint Reservoir Operations Unit for the Kamping Pouy Scheme (JOROP-KAPOS) will be established under the Battambang PDWRAM to operate and maintain the reservoir. The JOROP unit will include representatives of the four areas that draw water from the reservoir and discuss/approve water release. Staff will include women and will be trained in the O&M of the reservoir in close collaboration with the FWUCs. The unit will be provided with a budget for its operations, which will be recovered in the future from FWUC contributions.

• The JOROP unit will monitor evapotranspiration and effective rainfall and incorporate these in irrigation water scheduling. This will be done for each 10-day period at the start of the season.

• It will also keep track of the area planted to specific crops (rice, non-rice) in both wet and dry seasons. The automatic recording of water level in the reservoir will also be monitored.

• The JOROP Unit will be responsible for observing and recording the flow volume and discharge in the Mongkol Borey River.

• Water inlet controls with measuring devices will be installed or upgraded at the entrance of the Link Canal built by the Korea Fund into the reservoir. Water will be drawn from Mongkol Borey River through the Link Canal only as needed, established for each 10-day period of actual water needs, based on a simple equation.

• If no water is needed for the next 10 days, the flow through the Link Canal will be reduced to 2-3

m3/sec.

2. Operation of the Main and Secondary Canals

122. The KPIS has a three-tier hierarchy of irrigation canals, namely: main, secondary, and tertiary canals. Adjustable gated structures control the delivery of water from the main to the secondary canals, while flows from secondary to tertiary canals are designed for on/off control. This implies that whenever a tertiary canal remains “on”, it should operate at full capacity. However, most of these on/off gates are presently damaged.

123. The operation of the main and secondary canals varies with the cropping season. During the wet season, as most of the irrigation demands are met by rainfall, canal operation does not follow a well-defined schedule. Unlike this, canal operation is more systematic, especially for irrigating dry season crops.

124. The command area of KPIS will be divided into three rotational units (RUs) for irrigating dry season paddy. In 2018, the dry season irrigation started on 1 January, which will continue until 30 April, and the system is planned to irrigate 5,400 ha through three rotational units (Table 23). Although the system is divided into three RUs, it is believed that all tertiary canals within each rotational unit will operate continuously.

Table 23: Planned Canal Operation Schedule at System Level for 2018 Dry Season Irrigation

No. Rotational unit (RU)

Planned area coverage (ha)

Irrigation turn (days)

Gap days Frequency (On/Off)

1 1 2,710 10 11 10/11

2 2 2,090 8 13 8/13

3 3 600 3 18 3/18

Total 5,400 21

Source: TRTA Consultant

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125. The operation plan indicates that each RU will receive irrigation water six times, with gaps of 11–18 days. However, it is not known whether such irrigation frequency will allow impounding of paddy fields. Furthermore, although the 2018 operation plan aims to irrigate 5,400 ha of riceland, it is difficult to confirm the actual irrigated area and the delivery of water to different secondary canals as the system does not have any flow measuring devices. It seems that the present rotational schedule is not that rigid in terms of flow to be released during each irrigation turn. It is understood that during periods of water scarcity, farmers report their expected water demand to farmer water user group (FWUG) leaders who then ask the FWUC committee to release more water from the main system. When there are water shortages in the main canal, the relevant FWUC will contact PDWRAM to release more water from the reservoir.

126. The above suggests that three key entities (PDWRAM, FWUC, and FWUG) are involved in operating the main system. The present mode of system operation, which seems to be partly flexible and partly rigid, may work well for the present level of dry season irrigation, which covers about 5,000–6,000 ha. However, after system modernization under IAIP, the system needs to be operated in a more scientific and efficient manner in order to increase dry season irrigation twofold. Irrigation scheduling one such scientific approach. It involves deciding when and how much to irrigate and determining the exact amount and timing of irrigation application, thus increasing irrigation efficiency.

127. The design of irrigation scheduling in the KPIS will be made following the principles of soil water budget, which is guided by engineering and agronomic requirements. Estimating the crop water requirement (derived based on the designed cropping pattern) is one of its prerequisites.

128. Figure 27 suggests that about 806 m3/ha will be delivered during January and 1,176 m3/ha in February. This water demand can be met by any of the following two approaches: (i) changing the delivery rate but keeping the delivery time and irrigation interval the same; and (ii) maintaining a fixed delivery rate but changing either delivery time or irrigation interval.

Figure 27: Crop Water Requirement for a Stated Cropping Pattern

Source: TRTA Consultant

129. From an operational point of view, the first method is preferred. This is because changing delivery time and irrigation interval is difficult for farmers to understand – and accept. Thus, irrigation delivery time and frequency will be maintained, but delivery rate will be changed. For the purpose of irrigation scheduling, the KPIS command area after modernization will be divided into three groups covering about 12,000 ha or slightly more (the exact figure will be finalized after detailed design) (Table 24; Fig. 15). Irrigation will be delivered to each block on a rotational basis (varied flow but fixed duration and interval). However, within the block, each tertiary canal will get continuous flow during the irrigation turn. The conceptual basis of irrigation scheduling is presented in Figure 28.

0

200

400

600

800

1000

1200

1400

1600

M3/

ha

Crop water requirement Cash crop (130), WS Rice (90), WS Rice (120)

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Table 24: Irrigation Scheduling Blocks

No. Blocks Gross Area (ha)

1 A, B, C 3,462

2 D, E 5,438

3 F, G, H 4,456

Source: TRTA Consultant

Figure 28: Conceptual Basis of Irrigation Scheduling

Note: The vertical bars are not drawn to scale. The width of the bars represents the delivery flow rate. Source: TRTA Consultant

130. The delivery rate will be increased, but the irrigation duration and interval will remain fixed. However, from March to May, with the decrease in irrigation demand, the delivery rate will be reduced. After KPIS modernization of the KPIS, all canals will operate following the above approach of irrigation scheduling.

131. Irrigation efficiency. The low irrigation efficiency often encountered in the KPIS is attributed to the following factors:

• In the planning and design of irrigation systems, a large safety margin is applied. As a consequence, irrigation facilities (e.g., canals, structures, and reservoirs) are overdesigned (with very large capacities), and investments are considerably higher than otherwise necessary.

• The limited water resources are not optimally distributed and used, resulting in water losses and smaller land areas being irrigated.

• The low overall irrigation efficiency causes rising groundwater tables and adds to increasing soil salinization due to the leaching of salt from the topsoil. To address the groundwater problem, a costly subsurface drainage system may be necessary, which will seriously affect the economic viability of the project.

132. Improving irrigation efficiency will depend on more than just introducing modern physical infrastructure facilities (like headworks, gates and offtakes, control and measuring devices); it will depend on who operates the system and is involved in deciding on water quantity and timing, delivery schedule, and water flow (continuous, rotational, and/or on demand). Obtaining a feasible high level of water delivery efficiency will also depend on the following:

• Improving the capacity and willingness of water users to manage a system; • Improved capacity and willingness of water users to pay for irrigation services;

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• Defining the irrigation services (based on the best achievable cropping calendar) in a simple, implementable manner;

• Understanding that FWUCs need the right to voice their opinion and be approached in an egalitarian manner;

• Understanding that water users must often work 16 hours a day and cannot be called to meetings at any time;

• Instilling and enforcing discipline and establishing sanctions acceptable under the law and utilizing legal processes and procedures and applying peer pressure in the community – the PDWRAM and FWUC committee members should be held accountable for their actions and be sanctioned or replaced, if necessary;

• Defining stakeholders’ rights, roles, and responsibilities and documenting and disseminating those to all concerned.

133. At present, there is no mechanism of monitoring water flows and uses in the KPIS. As a result, there are no data on irrigation efficiency. Based on the measured irrigation efficiency in three canal systems during the preparation of the Uplands Irrigation and Water Resources Management Sector Project in 2015 (ADB, 2017), a baseline figure of 20% for overall irrigation efficiency was adopted. It is proposed that the same percentage be used as the baseline for overall irrigation efficiency in KPIS.

134. Based on previous experience, 40% is the maximum achievable efficiency after 10 years. Much improvement is needed, and not just structural (e.g., canal upgrading, flow measuring and monitoring devices), but also instilling discipline and the need for information for system operation among FWUCs and PDWRAMs. The FWUCs must cooperate in maintaining the irrigation facilities and function as an extension of the PDWRAM, which will then focus on and have the capacity and resources to provide specific time-based irrigation services to meet the needs specified in the yearly cropping and O&M plan.

135. Following are factors that can make irrigation efficiency drop below 20%:

• Over-irrigation at upper and middle parts, not just water theft, due to non-adherence to the water distribution schedule, leaking gates, open gates, and a misconception that there will always be water in the system for everyone;

• Failure to police the outflow into the drains, resulting in water losses; • Absence of internal agreements among water users regarding a water distribution plan and

schedule; • Non-adherence to the agreement on water release from a reservoir, which assume an

irrigation efficiency of at least 70%; • Lax enforcement of ISF payment, leading to an attitude of indifference among the water

users; • Poor record keeping of inflow vs. areas harvested and yields achieved as a basis for

estimating water productivity and targeting yearly improvements. 136. Systems worldwide with an irrigation efficiency of about 60% are characterized by a high degree of discipline in all aspects of system operation. Service providers and service receivers have a variety of tasks and responsibilities, and the roles of each group are defined, and water accounting is introduced and applied. With crop water requirement worked out in detail, it is possible to assess the impact of irrigation efficiency on water release from reservoirs, irrigation scheduling for distribution, and field application facilities. 137. For KPIS, the design of the civil works was based on the assumption that the system can achieve 40% efficiency through various measures including irrigation scheduling and FWUC training. 138. For the design of the main canal, the following irrigation efficiencies and associated crop water requirements were considered, including provision of water for peak demand land preparation/soaking

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at the start of the season. The actual crop water requirements for dry season (DS) rice (90), wet season (WS) rice (90), and WS rice (120) is about 5,227 m3/ha:

• At 30% irrigation efficiency, crop water requirement is approx. 17,423 m3/ha; • At 40% irrigation efficiency, crop water requirement is approx. 13,068 m3/ha; and • At 50% irrigation efficiency, crop water requirement is approx. 10,454 m3/ha.

139. The above clearly shows that there is a big difference in crop water needs at irrigation efficiencies between 30% and 50%. Bringing a system from 30% to 50% irrigation efficiency will save significant amounts of water of up to 40%. With climate change and a higher chance of droughts and prolonged dry periods, the need to achieve higher irrigation efficiencies becomes even more important.

C. Climate Proofing

140. Climate change is a big concern in Southeast Asia, and its impacts are projected to intensify, threatening the development and security of the region, particularly developing countries like Cambodia, whose economy is largely agricultural and, therefore, highly vulnerable to the impacts of climate change. Most studies suggest that both agricultural productivity (crop production per unit area) and the area of arable land will be most affected by changes in climate variables.9 141. Climate, with its space and time variability, is a major determinant of agricultural production. All agricultural production is related to the performance of cultivated species, which are bound to particular environmental conditions. As climatic conditions change, production conditions are also likely to change, with possible positive or negative implications on agricultural production.10 If climate change impacts on agriculture are known, measures can be planned to adapt agricultural management in order to prevent the negative impacts of climate change and to exploit new, emerging potentials.11

142. In Cambodia, climate change manifests itself in either more rain due to enhanced monsoon activity and to intense storms or to prolonged periods of less or no rainfall at all. The physical impacts of these events are either floods that could destroy crops and facilities or droughts causing premature drying out of crops, resulting in losses in productivity.

143. During the wet season (May to October) in the current climate/weather regime, the crop water requirement could be largely met from rainfall in an average year.12 In dry years (80% exceedance), irrigation is necessary, particularly in view of the erratic onset of the wet season.

144. Projected climate change is expected to: (i) increase the frequency, intensity, and peak flood height; (ii) increased occurrence and length of drought conditions that could damage irrigation infrastructure and disrupt access to water; and (iii) reduced agricultural productivity. Of particular concern is the projection that climate change will make the onset of the wet season more erratic and possibly also increase the length of ‘the little dry” season in July, which often follows the onset of the wet season in May-June. By 2050, it is projected that the average maximum temperature during the dry season will warm by 1.9C (from 32.2C to 34.1C). The wet season average maximum temperature will have a larger increase of 2.7oC (from 30.6C to 33.3C). Dry season rainfall will slightly decrease from 273.5 mm to 272 (-0.6%), while the wet season will see an increase of 7.8% (from 1,429 mm to 1,540 mm) (Table 25).

9 ADB, 2012. Guidelines for Climate Proofing Investments in Agriculture, Rural Development, and Food Security. Manila. 10 Lobell, D.B.; M.B. Burke, C.Tebaldi, C.; Mastrandrea, W.P. Falcon, R.L. Naylor. 2008. Prioritizing climate change adaptation needs for food security in 2030. Science 2008 (319): 607–610. 11 Schiermeier, Q. 2015. Quest for climate-proof farms. Nature,. 523: 396–397 12 Milner H. and S.I. Monichot. 2018: Hydrology Report. TA-9349 CAM: Irrigated Agriculture Improvement. Phnom Penh.

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Table 25: Projected Changes to Average Rainfall and Average Maximum Temperatures, Battambang, 2050

Climate Change Variables Baseline 2050 Change

Average annual rainfall 1300 mm 1365 mm +5 %

Total rainfall in wet season 1318 mm 1419 mm +7.7 %

Total rainfall in dry season (Nov-Apr) 269 mm 267 mm -0.4 %

Average daily maximum temperature (annual) 31.4 C 33.7 C +2.3 C

Average maximum temperature in wet season 30.6 C 33.3 C +2.7 C

Average maximum temperature in dry season 32.2 C 34.1 C +1.9 C

145. In the command area, maximum discharge from the upper catchment would increase by 16% from 181 m3/s to 215 m3/s. This value is not really for the Kamping Pouy reservoir per se. From validations of projected rainfall and temperature changes from the larger Battambang area against the projected rainfall and temperature changes in Kamping Pouy Reservoir (Tables 26 and 27) (as provided by the Cambodia Climate Change Toolbox),13 it can be deduced that the maximum discharge increase is also applicable to the smaller area of the reservoir.

Table 26: Baseline and Projected Changes to Average Maximum Temperatures and Rainfall, Kamping Pouy Reservoir, 2050

Variable unit Season Period

Baseline 2050 Change

Maximum temperature (oC) Dry 32.9 34.7 1.8

Wet 31.4 33.9 2.5

Rainfall (mm) Dry 273.5 272.0 - 0.6%

Wet 1,429.0 1,540.4 7.8 %

Table 27: Baseline and Projected Changes to Average Maximum Temperatures and Rainfall,

Mongkol Borey River, 2050

Variable unit Season Period

Baseline 2050 Change

Maximum temperature (oC) Dry 32.9 34.7 1.8

Wet 31.4 33.9 2.5

Rainfall (mm) Dry 273.5 272.0 -0.6%

Wet 1,429.0 1,540.4 7.8 %

146. To minimize the likelihood of climate change undermining or negating the effectiveness and sustainability of the modernization of the KPIS, the design of irrigation infrastructure will be ‘climate proofed’ and farmers will be trained and supported in the adoption of new farming practices and techniques that will minimize the impacts of climate change.

147. To reduce the impacts of drought on agricultural production, the following measures will be incorporated in the subproject design and O&M:

• Irrigation scheduling will be done to minimize the impacts of drought on water availability; • Water flow measurement instruments will be installed in the canals for controlled water

supply to meet crop water requirements during dry spells;

13 http://icem.com.au/CambodiaCC/

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• Reduction in exposure to prolonged dry season by compressing two successive rice crops into a period of seven to eight months using non-traditional rice varieties and the proper agro-inputs combined with irrigation management in command area blocks;

• Diversification from rice to non-rice, high-value crops requiring less water (e.g., soybean, mungbean, and sesame) or shifting to drought-resistant rice varieties and provision of training and extension support to farmers who will engage in these farming activities.

148. In anticipation of increased flooding during the wet season and at the start of the dry season, the design of the subproject will take into account the improvement of drainage facilities to protect agricultural land and canals from flooding caused by high-intensity and long-duration rain. According to the UNDP’s Climate Change Country Profile of Cambodia, the maximum one-day rainfall in Battambang Province will increase by 35 mm by 209014 (based on UN data) or a 25% increase from the 138 mm one-day maximum rainfall measured in Battambang in the last 40 years. With a catchment area of about 35 sq km, the corresponding maximum discharge using the SCS unit hydrograph method is estimated to increase also by 25%.15 Based on this information, two KPIS drainage canals (SCD4 and SCD5) will be designed for a 4.4 l/s/ha discharge, instead of the standard 3.5 l/s/ha. Moreover, two additional drainage canals (SD1 and SCD6) are proposed for modernization to accommodate additional discharges, and 13 culverts with check structures are proposed to enlarge the existing section of these drains (Fig. 29). These will effectively increase the floodwater removal capacity of the KPIS by 25%, sufficient for at least 70 years (2090). The incremental cost of the proposed climate proofing of the KPIS drainage system is in Table 28.

Figure 29: KPIS Layout Showing the Climate-proofed Drainage System

Source: TRTA Consultant

14 McSweeney, C., M. New, and G. Lizcano. UNDP Climate Change Country Profiles, Cambodia. http://country-

profiles.geog.ox.ac.uk 15 As per the SCS unit hydrograph method, the maximum discharge is linearly proportional to the one-day maximum

rainfall. Since the one-day maximum rainfall is estimated to increase by 25% by 2050, the discharge is also likely to increase by 25%.

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Table 28: Incremental Cost of Climate Proofing of KPIS Drainage Facilities

No. Description Length (km)

Additional Cost per km ($)

Cost Increase due to Climate

Proofing ($) A. Earthworks

1. Secondary canal and drain (SCD4)

9.1 2,572 23,405

2. Secondary canal and drain (SCD5)

12.3 2,572 31,636

3. SD1 11,0 61,052 671,572

4. SCD6 6.0 61,052 366,312

Total, A 38.4 1,092,925

B. Structures Number of Structures

Cost per Structure ($)

Cost Increase due to Climate

Proofing ($)

1. Culverts with check structures, SD1

8 50,000 400,000

2. Culverts with check structures, SCD6

5 50,000 250,000

Total, B 13 650,000

Grand Total, A+B 1,742,925

Source: TRTA Consultant

D. On-farm Water Management (OFWM)

149. OFWM refers to the management of water within a tertiary command with the objective of enhancing irrigation efficiency. Depending on the existing landscape, a tertiary canal usually commands an area between 30 and 50 ha. At the level of a tertiary canal, water management is performed through collective action by water users, while the management of water and crop production at the farmer’s field is shaped by an individual’s interest. Thus, OFWM is shaped by both collective and individual actions and includes multiple activities.

1. Assessment of OFWM in the Kamping Pouy Subproject

150. The requirement for OFWM in the KPIS command area varies with the climatic season. During the dry season or during dry days in the early wet season, crops need water, so irrigation needs to be applied. However,

during the second half of the wet season, infiltration into the soil is reduced drastically due to poor internal drainage, and paddy fields get flooded even with little rain. In such a scenario, draining the paddy field becomes more important compared to the application of irrigation. This scenario will further change with a long dry spell

even during the wet season. 151. In general, the status of OFWM in irrigating the dry season paddy in the KPIS is very poor, reflecting a

low level of irrigation efficiency. This is examined in terms of availability of field channel within the tertiary command, method of irrigation and land levelling, and mode of water distribution to farmers. These are explained

below. 152. Though the KPIS already has a network of tertiary canals, the system lacks field channels. In such

scenario, irrigation takes place from “field to field,” a traditional method of flood irrigation adopted in Cambodia, especially for wet season supplementary irrigation of paddy fields. In the absence of improved OFWM practices, this method is used also for irrigating dry season crops – not an efficient way of irrigation as stream size during

the dry season is limited, making “field to field” movement of water difficult. 153. Farmers practice basin irrigation for irrigating dry season paddy, especially in its early stages, but land preparation is very poor. As a result, excessive water losses occur due to infiltration and surface runoff, making

irrigation highly inefficient. Further, the existing plot areas are quite large compared to the likely stream size. Usually, in such a situation, farmers divide the plot (or basin) into smaller units with the help of temporary ridges

or bunds for efficient irrigation. However, the farmers think that partitioning of a wide basin into several small basins will influence the operation of the mechanized harvester. This belief has emerged mainly due to a lack of

awareness of OFWM. 154. The practice of water distribution to farmers in tertiary command for irrigating dry season paddy is deeply rooted in the traditional practice of “field to field irrigation,” where water is not distributed to farmers based on a fixed time share. Water from one farmer’s field is diverted to another farmer’s field only after the

former completes irrigating his land. With this method, there is no incentive to save water time.

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155. Hence, the physical location of a land plot (with respect to the tertiary outlet) and the quality of land preparation are not that important. This is because a farmer’s land is bound to get irrigation no matter how long it takes to irrigate it. Certainly, this is not an efficient way of water distribution. This suggests that, as in many other developing countries, a policy of proportional (time-based) distribution of water to every farmer based on his/her

land area will help improve irrigation efficiency. 2. Proposed Options for Improving OFWM in KPIS

156. As the proposed subproject aims to provide irrigation water during the dry season, making it possible to grow two additional crops, the following two broad options are proposed to improve OFWM with a focus on dry season irrigation: (i) capacity building of farmers and water managers; and (ii) improving O&M of tertiary canals. 157. Capacity building of farmers and water managers. It has been well recognized that the management of

irrigation at farm level is a complex socio-technical phenomenon. It involves collective action by people and includes multiple activities like maintenance of irrigation, organizing the local community, and delivering water to

users to meet their needs. Varying demand and supply of water over time and space has further increased the complexity of managing irrigation at the farm level. Despite recognizing the need for a socio-technical approach to irrigation management, regular interdisciplinary training for water professionals, local water managers, and

water users is non-existent in Cambodia. Further, existing academic institutions in Cambodia also focus only on hardcore engineering.

158. Given this deficiency, a capacity building component is proposed as one of the options for improving OFWM in the long run. It will include development of training manuals and delivery of trainings with a view to

address field-based problems. Part of these trainings will be supported by field-level demonstrations. The suggested areas/topics of training are:

• Socio-technical aspects of irrigation; • Flow measurement; • Irrigation methods; • Soil-water-plant relationship and crop water requirements; and • Irrigation performance and benchmarking.

159. Improving O&M of tertiary canals. The operation of a tertiary canal involves a complex process of actual delivery of water to end-users, which is shaped by human, institutional, and ecological aspects that vary from

place to place. This means that a single prescription for O&M of a tertiary canal may not work in different segments of the command area. Hence, the need for a site-specific O&M plan for each tertiary canal.

160. Considering the need for site-specific O&M plans and recognizing that O&M of tertiary canals is the responsibility of the FWUC, the project will support the respective block committees/ FWUC in the preparation

and implementation of the O&M plan. The plan will be prepared to cover all cropping cycles of a complete calendar year.

161. This activity will be implemented in two phases: pre-implementation and full implementation. During the preparatory phase, a series of meetings will be conducted with the different communes located at different

hierarchies of the tertiary canal to arrive at a FWUC-agreed O&M plan. The actual implementation of the O&M plan will be closely monitored during implementation phase and allow further improvement of the plan in the

succeeding year/s. 162. The implementation of the O&M Plan will include the following activities:

• Calibration of tertiary inlet structure for time series measurement of incoming flows; • Preparation of parcellary map of the tertiary command area for demarcation of actual

irrigation areas and identification of water users. Images drawn by a drone camera will be processed in preparing a participatory parcellary map. These maps will then be used in aligning the field channel and related structures (see Fig. 30);

• Design of rotational water distribution schedule and implementing it within the tertiary command. This will be shaped by the main system irrigation scheduling and proposed/ existing cropping patterns;

• Monitoring of actual operation of water distribution within the tertiary command; • Evaluation and provision of feedback for further improvement of tertiary operation; and • Preparation of a maintenance plan and monitoring of its implementation.

Figure 30: Schematic Layout of Farm-level Canals and Structures for OFWM

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Source: TRTA Consultant

150. The preparation of a participatory O&M plan will also identify essential structural improvement works that are required for achieving equitable distribution of waters. The likely structural improvement works will

include the following:

• Field channel within the tertiary command area (extent and alignment); • Field channel structures like division box, farm road crossing, and drainage crossing; • Drainage channels and structures; and • Flow measuring structure at the tertiary inlet, where calibration of the existing structure is

not feasible.

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151. The design and implementation modality of essential structural improvement works will be agreed with the FWUC.

3. Implementation Approach: Improving O&M of Tertiary Canals 152. The KPIS area is divided into 42 blocks (from governance perspective), each block consisting of a couple

of tertiary canals and managed by four farmers’ representatives in the FWUC. KPIS has a functioning FWUC at the system level.

153. One representative tertiary canal will be selected from each of the 42 blocks for improvement of tertiary-level O&M. The four farmers’ representatives of the FWUC will be involved throughout the plan preparation and

implementation processes. It is believed that after the improvement of tertiary level O&M within each block, concerned farmers representatives and FWUC will be capable in improving the O&M of the remaining tertiary

canals on their own. Since KPIS already has some functioning tertiary canals, improvement of their O&M will be initiated from Year 1 of the project in parallel with the modernization of the main system.

154. It is advisable to identify an NGO, which can assist the FWUC at the village level in the preparation and implementation of O&M improvement activities in the tertiary canal. The NGO can help with the design and

implementation of essential farm-level structural improvement works. Iin addition, the NGO will also be responsible for: (i) social mobilization and information dissemination on the land levelling component; and (ii)

demonstration of high-efficiency irrigation methods. The NGO will be guided by the Battambang PDWRAM and by the PMIC field supervision engineers during actual project implementation.

155. High-efficiency irrigation methods. As mentioned earlier, farmers in KPIS practice basin irrigation for irrigating paddy. However, land preparation, especially puddling at the start ot the wet season, is very poor,

causing a sharp decline in irrigation application efficiency. At the farm level, one of the key constraints limiting rice production is the inability of many farmers to adequately manage water in their paddy fields.

156. Traditionally, farmers prepare their lands using animal drawn or tractor-drawn levellers. These levellers are equipped with a set of blades, which act like as a small bucket for shifting the soil from higher to low-lying positions. Using this method, the land looks level, but in reality, wide topographic variations exist. As a result, there could be waterlogging in lowlying areas (Fig. 31), causing excessive water losses due to infiltration, and soil water deficit in higher areas. Variations in the land surface elevation of 10 and 30 cm are quite common in

traditionally levelled lands in KPIS.

Figure 31: Poorly Leveled Basin with Waterlogging in Lowlying Area

Source: TRTA Consultant

157. The choice of irrigation method to achieve high application efficiency is determined by the type of crops proposed under the project. In the KPIS, the proposed cropping pattern is three crops of rice per year and high-value crops in the dry season. For this cropping pattern, basin and furrow irrigation are the appropriate high-efficiency irrigation methods. In the KPIS, although farmers are already practicing basin irrigation for irrigating paddy, the sizes (plot areas) of existing basins are quite large compared to the likely stream size, making irrigation highly inefficient. Thus, farmers need to be made aware of the efficient sizes of basin irrigation for the available stream sizes. In each tertiary canal command area under the 42 irrigation governance blocks, the project will demonstrate high-efficiency irrigation methods in farmers’ fields. These will include mainly basin and furrow irrigation and will be linked to the capacity building component. 158. For demonstration of basin irrigation, existing plots will be divided into smaller units (sub-basins) with the help of temporary ridges or bunds, and irrigation will be applied in each sub-

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basin. This action will not only match the basin area with the stream size, but will also help in maintaining an almost uniform level within it. Furrow irrigation will also be demonstrated accordingly.

159. The demonstration of high-efficiency irrigation methods will involve the following tasks:

• Identification of suitable representative land plot within the tertiary command for demonstration;

• Design and construction of suitable basin and furrow for demonstration of irrigation and other cultural activities like weeding, mechanized harvesting, and so on;

• Monitoring the performance of basin and furrow irrigation; and • Informing the FWUC, the farmers, and irrigation professionals on the benefits of high-

efficiency basin and furrow irrigation.

160. The NGO to be recruited for OFWM will be responsible for performing the tasks related to the demonstration of high-efficiency irrigation methods.

E. Irrigation Maintenance: Institutional Arrangements

161. Maintenance is required to ensure continued efficient operation of an irrigation system throughout its economic life. This will involve the reconstruction and repair of canals and structures including cleaning and desilting. Regular maintenance of an irrigation system is usually done once a year, termed as annual maintenance.

162. The O&M maintenance of the reservoir and the main system (main canal) falls under the direct responsibility of MOWRAM/PDWRAM, while the maintenance of lower order canals falls under the responsibility of FWUCs. At present, the KPIS is being maintained mostly on an ad hoc basis. After the modernization of the KPIS, a systematic approach will be followed in maintenance planning and execution, as shown in Table 29. In addition, the sharing of maintenance responsibilities between PDWRAM and FWUC will be redefined.

Table 29: Maintenance Planning in KPIS

No. Activities Description

1. Irrigation asset survey This is the first step in maintenance planning. It involves a systematic inspection of structures, canals, and mechanical parts of the irrigation system to identify their physical and functional state and subsequently, the maintenance requirement.

2. Maintenance Categorization

This step categorizes the maintenance requirement into three: short- term, medium-term, and long term.

3. Maintenance prioritization

This step Identifies priorities so that maintenance execution can be planned and budgeted.

4. Maintenance costing This steps finalize maintenance costs and and secures the budget.

5. Maintenance execution Once the budget is finalized, maintenance will be executed through proper survey, design, costing, procurement, and execution.

Source: TRTA Consultant

1. PDWRAM

150. The PDWRAM represents at provincial level. As the KPIS falls under the category of large- scale irrigation system (>5,000 ha), responsibility for its O&M actually lies with MOWRAM, but it executes its responsibility through the PDWRAM.

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151. The duties and responsibilities of the PDWRAM are as follows:16

• Planning and organizing development programs of the Ministry at the subnational level; • Operating and maintaining major irrigation works; • Managing FWUCs and other farmer mechanisms with responsibility for supporting the O&M

of irrigation schemes; • Managing the collection of irrigation service contribution (ISC) by FWUCs and control of

expenditures from the irrigation service fees (ISFs) by the responsible focal point/person; • Overseeing irrigation and flood protection civil works at the provincial level; and • Executing small procurements and disbursements related to construction projects.

152. The Battambang PDWRAM is headed by a Director, who is, in turn, supported by three Deputy Directors, as shown in Figure 32. The PDWRAM has a total of 67 staff members, 12% of whom are women.

Figure 32: Organization Structure of the Battambang PDWRAM

Source: PDWRAM, Battambang

2. FWUC

153. Participatory irrigation management and development (PIMD). In the early 1990s, the Cambodian Government issued a policy on PIMD, which aimed to transfer the responsibility for O&M of irrigation systems to their water users (FWUCs) for the overall sustainability of irrigation systems. Accordingly, in 1999, PIMD was adopted as a formal policy with the release of Circular No. 1, Implementation of Policy for Sustainable Irrigation Systems. This policy devolved the responsibility for all aspects of irrigation system operation to the FWUCs. Subsequently, farmer participation and the FWUC model were incorporated in the National Water Law as part of the formal PIMD strategy.

154. KPIS-FWUC. KPIS has a functioning FWUC, which was established through election in 1999. The FWUC was re-elected in 2001, 2014, and finally in 2017, and was officially registered in

16 MOWRAM’s website www.cambodiameteo.com; WRMSDP. 2015. Report on Institutional Arrangements for the

Management of Water Resources in Cambodia.

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May 2003. The KPIS-FWUC has its own constitution endorsed by MOWRAM on 27 October 2003. (The goal and mandate of the KPIS-FWUC are shown in Table 30.) The establishment and election/re-election of the FWUC were technically and financially supported by PDWRAM, MOWRAM, the Provincial Department of Agriculture (PDA), and local authorities together with the Food and Agriculture Organization (FAO) and ADB. Further, the KPIS-FWUC has a well-established office with a meeting hall and other working spaces (Fig. 33).

Table 30: Goals and Mandate of the KPIS–FWUC

Goals Mandate

• Functional and efficient irrigation system that will benefit its farmer members.

• Represent the interest and welfare of its members.

• Maximize benefit for their farms that use water from the irrigation scheme.

• Better service delivery from PDWRAM with the improved irrigation scheme.

• Legal autonomous entity serving the common interest of people through the use of an irrigation system in an effective and sustainable manner aimed at enhancing economic and social development and poverty reduction. (Art. 7, FWUC Sub-Decree).

• To operate as a business enterprise for profit.

Source: PDWRAM, Battambang

Figure 33: FWUC Office in the KPIS

Source: TRTA Consultant

155. The KPIS-FWUC has a three-tiered organizational structure (Fig. 34). The organization at the highest level (main system) is the main committee called the FWUC Committee (FWUCC), which has four members: Chief, 1st Deputy Chief, 2nd Deputy Chief, and Cashier.

Figure 34: Structure of the FWUC Organization

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Source: PDWRAM, Battambang

156. From the perspective of irrigation governance, the KPIS command area is divided into 47 blocks. Each block constitutes a couple of tertiary canals and is managed by four farmers’ representatives, referred to collectively as a farmer water users’ group (FWUG). So, the FWUGs in KPIS should have 188 members. However, only 42 blocks are currently functioning, with a total of 168 members including three females.

157. In theory, the KPIS should have a provision for several farmer water user sub-groups (FWUSGs) for managing water at the level of tertiary canal and below, but these have not yet been formed. FWUC leaders feel that it would be useful to have FWUSGs as they are close to the community and are very much familiar with local water management issues.

158. Specifying the functions and responsibilities of the FWUCs will be essential in the envisaged FWUC training. These responsibilities are:

• Preparation of the irrigation system management plan; • Preparation of the statute, contracts, internal regulations, agreement on the transfer of the

irrigation system, and irrigation service plan; • Maintenance of the irrigation system in good condition to enable the delivery of irrigation

water; • Management and equitable allocation of water to all its members; • Increasing the capacity of FWUC members on the use, maintenance, and development of

irrigation systems; • Preparation of reports on FWUC work and sending them to MOWRAM for consideration

and assessment; • Resolution of conflicts arising within the community; • Collection of ISF according to the agreed amount set by the community for the purpose of

sustainable O&M of the irrigation system; • Imposition of administrative sanctions on FWUC members for their misconduct in

managing irrigation system; and • Settlement of issues raised by community members.

159. Once established and registered, a FWUC is supposed to sign a Memorandum of Understanding (MOU) with the PDWRAM to define the scope of their respective responsibilities. The scope of the FWUC’s responsibilities encompasses the secondary and tertiary canal systems,

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while the responsibility for maintaining the reservoir and main system (main canal) lies with MOWRAM/PDWRAM, as lead institution and stakeholder, as they will be involved and lead in the to-be established JOROP KAPOS. Details concerning this will need to be formulated by PMU and PMIC in first year of system improvement.

F. Capacity Building for Improved Irrigation O&M

1. FWUC

160. Capacity assessment. Field surveys undertaken as part of the TRTA indicated that, at present, the KPIS-FWUC is managing the system as a whole, especially from the perspective of system maintenance and water delivery. FWUC leaders and PDWRAM agree that the present budget for O&M is inadequate. As a result, the FWUC allocates parts of its ISF resources for maintenance, with 80% of the limited funds going to the maintenance of the main canal, while the rest goes to the maintenance of secondary canals and smaller field channels.

161. A detailed capacity assessment of the KPIS FWUC is yet to be done. Nevertheless, it is apparent that the present FWUC does not have the capacity to manage a modern irrigation system. It is, therefore, essential that the FWUC is capacitated in irrigation system management.

162. Proposed activities for enhancing capacity of FWUC. Below are some of the proposed activities for capacity enhancement of the KPIS-FWUC, which are planned to be implemented in parallel with system modernization:

• The FWUC is the key stakeholder that needs to work closely with the departments of agriculture and irrigation in the implementation of IAIP if the projected benefits of the planned irrigation system modernization are to be attained. At present, institutional linkages between the agriculture and irrigation sectors do not exist at the field level. In order to bridge this gap, a local-level coordination committee consisting of different stakeholder agencies (agriculture, irrigation, local development institutions, and FWUCs) will be established.

• The lowest level (third tier) of the KPIS-FWUC organization, the farmer water use subgroups, has not yet been established. The project will support the establishment of these subgroups in the KPIS.

• The institutional capacity of the KPIS-FWUC will be enhanced through the development of procedural guidelines and on-the-job training (OJT) to enable them to deliver various types of services to farmers like land levelling, agriculture extension, OFWM, and irrigation delivery. Further, special OJT will be provided to the FWUC, FWUGs, and their subgroups on monitoring of water delivery to, and ISF collection from, farmers. This will enhance overall governance capacity of FWUC.

2. MOWRAM, PDWRAM, and Other Agencies

163. The capacity of other related institutions will also be built in parallel for coordinated development efforts. Based on the assessment of capacity and associated training needs conducted under the ADB-funded Water Resources Management Project (WRMSDP), the training plan shown in Table 31 is proposed for implementation in KPIS.

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Table 31: Training Plan Proposed for Kamping Pouy Subproject

No. Training Module Participants

A. For MOWRAM, PDWRAM and Other Institutions

1. Project orientation and presentation of project plan

PMU (13); Battambang PDWRAM (2); 3 District WRAMs (6); MAFF and local government at districts, communes and villages = 35 participants

2. FWUC formation and strengthening PMU (13); Battambang PDWRAM (2); 3 District WRAMs (6) = 21 participants

3. Gender awareness and action plan PMU (13); Battambang PDWRAM (2); 3 District WRAMs (6) = 21 participants

4. Financial management, accounting system, and procurement procedures

MOWRAM: PMU Finance (2), Finance Department (3); PDWRAM (4) = 9 participants

5. Environmental awareness PMU (13); Battambang PDWRAM (2); 3 District WRAMs (9) = 24 participants

6. Management and supervision MOWRAM (2); PMU (2); Battambang PDWRAM (2);

3 District WRAM (6) = 12 participants

7. On-farm water management PMU (13); Battambang PDWRAM (2); 3 District WRAMs (6) = 21 participants

8. O&M PMU (2); IAD (2); Battambang PDWRAM (2);

3 District WRAMs (6) = 12 participants

B. For FWUC in KP Irrigation Scheme

9. Project orientation and information campaign

1 Irrigation Scheme: KP in Battambang; 3 Districts; 5 Communes; 31 Villages; 11,124 households;

51,569 persons (Source: MOP_2014 Database)

10. Legal documents 1 FWUC = 20 participants

11. FWUC General Management & Admin 1 FWUC = 20 participants

12. O&M 1 FWUC = 20 participants

13. Water management 1 FWUC = 20 participants

14. ISF 1 FWUC = 20 participants

15. Financial management 1 FWUC = 20 participants

16. FWUC election (procedures, preparations, requirements)

1 FWUC = 20 participants

17. Gender and environment 1 FWUC = 20 participants

18. Gender and environmental (climate change) campaign & awareness raising in 31 villages

100 farmers/village x 31 vill. = 3,100 farmers

19. Construction management (work arrangements)

1 FWUC = 20 participants

Source: TRTA Consultant

164. Gender awareness and gender action plan (GAP). The training for MOWRAM/PDWRAM should include gender awareness training as this is closely linked, in timing and participants, with the training on FWUC formation and strengthening. The rationale here is that women farmers tend to be very proactive about their needs, particularly at the FWUSG level. Should the FWUSG be reconstituted at the KPIS, women should be encouraged (and supported by men) to be members and stand for election/selection as part of the management team. Also, more women should be encouraged to stand for election to the FWUG and FWUC management teams. Combining or closely linking the two trainings would reinforce how gender is relevant in the context of FWUC formation/strengthening.

165. In training for FWUC, it is strongly suggested that there should be a significant quota for women's participation in all training components. If women are going to play a more active role in

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FWUC, they need the knowledge and skills to do so. For example, in the case of financial management, there is an additional argument - the current FWUC treasurer is a woman and the treasurer is often a position "reserved" for women. But the quota should not be limited to this training.

166. The training on water distribution plan and cropping calendar plan, improved crop production practices, and value chain, must include approximately 40% women participants. This training is to be done at the village level and/or on-farm to reduce women's constraints related to limited time and mobility. If the training is to be done by district agricultural extension agents, available female staff should be involved in the training.

VI. SUBPROJECT COST ESTIMATES

A. Introduction

167. This chapter presents a summary of the cost estimates for the activities described in the preceding chapters on civil works, hydrology, agriculture, and improvement of irrigation system performance. Included in the civil works costs are on-farm water management (OFWM) facilities, climate proofing of irrigation infrastructure, O&M in the first year of system operation, and upgrading of hydrometeorological (hydromet) networks. Other costs include FWUC development and training and agricultural support and training. The cost summary for the KP Subproject is in Table 32.

Table 32: Summary of Proposed Subproject Investment Cost

Description Estimated Cost ($)

1. Civil works (Option 2) including OFWM facilities 20,112,501

2. Cost of climate proofing measures (widening and deepening for the required increase in drainage and flood control facilities over the period, 2020-2060)

1,743,000

3. O&M costs for Year 1 of system operation 600,000

4. Hydromet equipment and automated weather station (AWS) 569,910

5. FWUC development and training 439,670

6. Agricultural and agro-inputs support and training 699,600

Total 24,164,681

B. Cost of Civil Works, Option 2

168. Three main categories of civil works are proposed for upgrading under the Kamping Pouy Subproject: (i) strengthening of the Kamping Pouy Reservoir embankment; (ii) upgrading of the river diversion canal (Link Canal); and (iii) upgrading of irrigation and drainage canal networks within the subproject target area. The cost estimate for the civil works was based on the local and international prices of construction materials, equipment, and labor. Actual rates of construction contracts of some projects with similar civil works (e.g., Uplands Irrigation and Water Resources Management Sector Project [UIWRMSP], GMS Flood and Drought Risk Management and Mitigation Project [GMS-FDRMMP], Flood Damage Reconstruction Project [FDRP]) were also used as basis for the cost estimates, but the prices were adjusted upward by 5% to account for inflation. 169. The civil works proposed for the Kamping Pouy Subproject is estimated to cost $20.11 million including a 10% physical contingency of $1.83 million, as shown in Table 33.

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Table 33: Estimated Cost of Civil Works for the Kamping Pouy Subproject, Option 2

No. Description Length

(km)

Cost of Reservoir Embankment/

Canals and Drains

($)

Cost of Structures

($)

Total Cost

($)

1. Reservoir embankment erosion protection

6.50 2,282,800

2,282,800

Subtotal, 1 (Reservoir Embankment, 6.50 km) 2,282,800

2. Link canal from the Mongkol Borey Barrage (8 km of the total length of 13.9 km)

13.90 2,923,776 - 2,923,776

Subtotal, 2 (Link Canal, 13.90 km) 2,923,776

3. Main canal section 1 from station 0+000 m to 9+167 m

9.17 5,152,181 304,650 5,456,831

4. Main canal section 2 from station 9+167 m to 14+136 m

4.97 175,120 113,000 288,120

Subtotal, 3 (Main Canal, 14.14 km, and associated structures) 7,193,912

5. Secondary canal SC1 5.70 2,304,277 250,000 2,554,277

6. Sub-secondary canal SSC1 7.00 272,515 427,000 699,515

7. Secondary canal and drain SCD2* 11.30 558,103 448,600 1,006,703

8. Secondary canal and drain SCD3* 7.20 506,975 472,000 978,975

9. Secondary canal and drain SCD4* 9.10 643,916 389,000 1,032,916

10. Secondary canal and drain SCD5* 12.30 596,180 372,000 968,180

Subtotal, 4 (Secondary Canals [52.60 km] and Associated Structures) 7,487,972

11. Structure on the secondary drain SD1

11 - 54,000 54,000

12. Structure on the tertiary canal and drain TN 16

2.5 - 38,000 38,000

Subtotal, 5 (Structures on Drainage Canal) 92,000

Total (Subtotal 1+2+3+4+5) 18,284,092

13. Physical Contingency (10%) 1,828,409

Grand Total 20,112,501

Note: Canals play a dual function: irrigation and drainage.

170. Reservoir embankment erosion protection. The 6.5-km long reservoir embankment or reservoir dam will be strengthened by providing erosion protection on the upstream slope using Gabion mattress. The cost of strengthening the reservoir embankment is estimated at about $2.28 million, computed on a per km basis. The detailed cost estimates will be prepared during the detailed design stage. 171. Upgrading river diversion canal (Link Canal). The Link Canal (or Diversion Canal), which was constructed two years ago to divert water from the Mongkol Borey River to the Kamping Pouy Reservoir, is proposed for upgrading by desilting the canal bed and lining the majority of the canal length using reinforced concrete. The total estimated cost for upgrading the Link Canal is about $2.92 million. 172. Upgrading irrigation and drainage canal networks within the subproject target area. Two main canals, which are connected to each other and have a total length of 14.14 km, are proposed for upgrading. These canals will be lined using reinforced concrete on both canal side slopes and on the canal bed. A total of 28 associated structures will be constructed, replaced, and improved. The estimated cost for upgrading the main canals and appurtenant structures is about $7.19 million.

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173. Five secondary canals with a total length of 52.60 km, as well as associated structures, are estimated to cost slightly more than the cost of the main canal. In addition, the structures of two secondary drains will require minor improvement at an estimated cost of $92,000.

C. Cost of Climate Proofing

174. To increase the resilience of the KPIS to climate change impacts, such as flooding, the civil works will be climate-proofed by increasing the floodwater removal capacity of the major drains of Kamping Puoy. This will mean an increase in the cost of the civil works component of the Kamping Puoy Subproject by an estimated $1.74 million, as shown in Table 34 below.

Table 34: Incremental Cost of Climate Proofing of the Kamping Puoy Subproject

No. Description Length (km)

Additional Cost per km ($)

Incremental Cost of Climate Proofing ($) A. Earthworks

1. Secondary canal and drain SCD4

9.1 2,572 23,405

2. Secondary canal and drain SCD5

12.3 2,572 31,636

3. SD1 11 61,052 671,572 4. SCD6 6 61,052 366,312

Total, A 38.4 1,092,925

B. Structures Number of Structures

Cost per Structure ($)

Incremental Cost of Climate Proofing ($)

1. Culverts with check structures in SD1

8 50,000 400,000

2. Culverts with check structures SCD6

5 50,000 250,000

Total, B 13 650,000 Grand Total 1,742,925

Source: TRTA Consultant

D. O&M Cost (Year 1 Only)

175. As described in Chapter II, the O&M cost varies based on the design options. However, average annual O&M cost is estimated at $50/ha/yr for an earthen canal system, such as is proposed for Kamping Pouy irrigation and drainage system (Option 2). Thus, the total O&M cost for the whole subproject covering 12,000 ha is $600,000/yr. However, this cost will be shouldered by the project only in the first year of operation as the KPIS FWUC, with support from the PDWRAM, will be responsible for covering this cost from irrigation service fees (ISFs) collected from the water users who benefit from the system.

E. Upgrading Hydromet Networks

176. The upgrading of hydrometeorological stations and the strengthening of hydromet data collection, which will include real-time transfer of data from the stations to the MOWRAM Hydromet Center, for the Kamping Puoy Subproject is estimated to cost $569,910. This cost will include equipment, training of personnel, operating expenses for 10 years and contingency (Table 35); details are in Table 36. The proposed upgrade was patterned after the system that is now being implemented by MOWRAM in the Uplands Irrigation and Water Resources Management Sector Project. This decision was made for compatibility and to minimize any issues that may arise in operating and maintaining the equipment, once installed. The data transmission process will be determined during purchase and installation.

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Table 35: Summary of Cost Estimates for Hydromet Network Upgrading for Kamping Pouy

No. Cost Item Estimated Amount ($)

1. Equipment 188,000

2. Infrastructure & installation 33,500

3. Vehicles 60,000

4. Computers 7,000

5. Training 35,000

6. Operational costs (10 years) 194,600

7. Contingency 51,810

Total 569,910

Table 36: Detailed Cost Estimates for Hydromet Network Upgrading, Kamping Pouy Subproject

Ref. Item Quantity Unit Price

($)

Amount,

($)

1. Hydrology Network and Data Collection

1.1 Upgrading and installation of hydrological station and telemetry system including equipment

4 25,000 100,000

1.2 Concrete tower for 3 hydrological stations 4 4,000 16,000

1.3 Flow measurement per hydrological year (April-March, Cambodia, e.g., Apr 2000- Mar 2001), 1 measurement/ station/year

40 500 20,000

1.4 O&M ($2,500 per station per year) 40 3,240 129,600

1.5 Hydrometric equipment (one set) - 12,000 -

1.6 Operating cost, training 4 5,000 20,000

1.7 Computer for field operation and office work (Touch Books) 1 3,500 3,500

1,8 Vehicle 1 30,000 30,000

1.9 Boat - 3,000 -

1.10 Engine, Yamaha 25 hp - 7,000 -

Subtotal, 1 319,100

Contingency (10%) 31,910

Total, 1 351,010

2. Meteorological Station 1 70,000 70,000

2.1 Installation of automatic weather stations ( AWSs) including equipment, facilities, installation, training, communication, and database management

6 3,000 18,000

2.2 Automatic rain gauge (including modem for data transmission and box)

7 2,500 17,500

2.3 Installation cost including training of personnel 10 1,500 15,000

2.4 O&M for AWS ($1,500 per station per year) 60 500 30,000

2.5 O&M for automatic rain gauge ($500 per station per year x 3 years)

1 30,000 30,000

2.6 Vehicles 3 5,000 15,000

2.7 Operating cost, training 1 3,500 3,500

2.8 Computer for field operation and office works (Touch Books) 1 70,000 70,000

Sub-total, 2 199,000

Contingency (10%) 19,900

Total, 2 218,900

Grand Total (1+2) 569,910

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F. FWUC Development and Training

177. The last election of the FWUC in the KPIS was organized in late 2017. The recent study visit and interviews of the TRTA Team with FWUC committee members and PDWRAM officers revealed that the KPIS FWUC has been operating and managing the scheme. However, there are only four elected committee members and FWUGs, who are actively performing their roles and responsibilities, while all FWUSGs are currently weak and not functioning well. It is, therefore, necessary to strengthen the capacity of the FWUC and other concerned stakeholders in the O&M of the KPIS to enable them to meet the new challenges that will come with system improvement. The development and training of the KPIS FWUC Management Committee and staff, as well as the capacity building of focal MOWRAM and PDWRAM staff who will be supporting the FWUC in subproject implementation, is estimated to cost $438,460 (Table 37).

Table 37: Estimated Cost for Capacity Building of KPIS FWUC and Related Stakeholders

No. Item Unit Cost ($)

No. of Units

Amount ($)

A. For MOWRAM, PDWRAM, and other Institutions 126,500

1. Project orientation and presentation of project plan 2,500 2 5,000

2. FWUC formation and strengthening 20,000 1 20,000

3. Gender awareness and action plan 2,500 2 5,000

4. Financial management, accounting system, and procurement procedures

2,000 2 4,000

5. Environmental awareness 2,500 3 7,500

6. Construction management and supervision 2,000 5 10,000

7. On-farm water management 2,000 5 10,000

8. O&M 2,500 5 12,500

9. Field monitoring visit 4,000 5 20,000

10. Office stationery/equipment, phone, computer and printer, digital camera

20,000 1 20,000

11. Motorbike for field work to support the FWUC 2,500 5 12,500

B. For the FWUC 272,100

12. Project orientation and information campaign (31 villages) 300 31 9,300

13. Legal documents 2,500 2 5,000

14. FWUC management and administration 2,500 2 5,000

15. O&M 2,500 2 5,000

16. Water management 2,500 2 5,000

17. Irrigation service fee 2,500 2 5,000

18. Financial management 2,500 2 5,000

19. FWUC election (procedures, preparations, requirements) 2,500 2 5,000

20. Gender and environment 3,500 2 7,000

21. Gender and environmental (including climate change) campaigns in 31 target villages

300 31 9,300

22. Management (work arrangements) 2,500 2 5,000

23. O&M managed by FWUC 40,000 5 200,000

24. Computer and printer 1,500 1 1,500

25. Renovation of old office building for use of the FWUC 5,000 1 5,000

Total (A+B) 398,600

C. Contingency (10%) 39,860

Grand Total (A+B+C) 438,460

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G. Agricultural Improvement

178. The agricultural input package consists of a set of recommendations to address the limitations to the yield of rice in Kamping Pouy. These limitations include: (i) poor quality and excessive use of seeds, poor management of paddy water during seed sowing, fertilizer application, and harvesting; and (ii) inappropriate combination of fertilizer materials and timing of application of fertilizers to meet the nutrition requirement of the crop for specific locations, and excessive use of pesticides. The proposed agricultural input package will promote and demonstrate to farmers the use of new agriculture technology to improve their yields and demonstrate to farmers. Methods to reduce water use in the rice paddies in anticipation of abnormal rainfall due to climate change will also be included in the demonstration. The proposed budget for agricultural improvement is estimated at about $2.15 million and will support the conduct of 100 field demonstrations at farmers’ fields (Table 38). The cost of materials, facilitators, resource persons, and other expenditures to be incurred in the establishment of on-farm demonstrations will be shouldered by the project for two years.

Table 38: Estimated Cost of Proposed Agricultural Demonstration Activities

No. Description Number Unit Rate ($) Amount ($)

1. Rice agricultural input package demonstration

970 Sites 500 485,000

2. Farmer field schools 970 Sites 1,650 1,600,000 3. Vegetable production demonstration 102 Sites 650 66,300

Total 2,151,300

VII. ECONOMIC ANALYSIS

A. Introduction

179. The IAIP will enhance agricultural productivity through increased efficiency of irrigation systems and improved management of water resources in the Kamping Pouy irrigation system (KPIS) in Battambang Province.

180. Water is the key input to agricultural production, productivity increase, and economic growth. Rainfall distribution and river discharges have significant seasonal variability in Cambodia, thus adversely affecting sustained agricultural production and increasing vulnerability. Climate change is likely to further exacerbate the situation. Timely availability and efficient management of water are of prime importance for increasing agricultural productivity and for the successful implementation of agricultural diversification. These will, in turn, have significant positive impacts on the rural economy. Improving agricultural productivity, diversification, and managing irrigation systems and water resources are among the major thrusts of the government's national strategy, the 2013 Rectangular Strategy for Growth, Employment, Equity, and Efficiency, Phase III. ADB's Country Partnership Strategy, 2014-2018 (para. 20.1) recommends interventions that will: (i) make agriculture more market-oriented and improve market links; (ii) make on-farm practices more efficient by making more efficient use of natural resources (land and water); and (iii) increase productivity growth through higher-value outputs, including through greater specialization within rice cultivation and high-value non-rice crops. Improved irrigation will be key to achieving these objectives.

B. Methodology

181. This chapter presents the economic analysis of the Kamping Puoy Subproject. Benefits and costs are examined in order to assess the viability of the subproject and to determine its expected impact on local society, including the poor. For this analysis, the costs and benefits within the Kamping Pouy irrigation command area are calculated based on “with project” and “without project”

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scenarios. In the “without project” scenario, part of the command area is not irrigated. The analysis took account of what may be grown on the land without the improved irrigation system. The intent is to determine the incremental value of production due to the project over its expected useful life and compare this with the cost of the project and its operation and maintenance (O&M). Detailed tables are in Appendix 3.

182. To develop a model for the analysis, assumptions were made regarding future practice and the valuation of inputs and outputs. These include:

• Project life is assumed to be 25 years. Assuming adequate maintenance, the irrigation system should be able to maintain its expected benefits for 25 years before another major renovation may be required. Substantial renovations every 10 years are also included in the project cash flow. No residual value is assumed, although in practice, the system will retain substantial value, particularly based on the major work planned for 2042, only two years before the assumed end-of-life.

• The “without project” situation assumes that present cultivation patterns and technology will continue for the life of the project.

• Under the “with project” situation, the full command area is expected to continue to be adequately irrigated throughout the life of the project, allowing farmers to adopt appropriate cropping patterns and technology.17

• Some agricultural outputs will be consumed by farm households, but are valued as if sold. • Some agricultural inputs, such as farm labor, are provided by the farm household but are

valued at the market rate as if hired. • Values are expressed in constant 2018 prices and exclude inflation. • The US$ is the unit of account since the currency is in common usage in Cambodia, and

the Khmer Riel (KR) to $ exchange rate is stable, currently around KR4,010 per US$.

183. Financial prices used in this analysis were determined through field visits and focus group discussions conducted by the TRTA team.

184. In order to assess the project’s contributions (and costs) to the economy of Cambodia, it is necessary to convert financial values into their economic equivalents. Economic valuations exclude transfers from one section of society to another (i.e., taxes and subsidies) and compare project benefits and real opportunity costs to the economy by translating all prices into a common, undistorted value. Additional basic assumptions used in the economic analysis include the following:

• The dollar is in common usage in Cambodia, and its relationship to the Riel is fixed. There are no significant import or export taxes that affect the project; there is, thus, probably no need to apply a shadow exchange rate factor (SERF). However, a SERF has been included in the model and is tested under sensitivity analysis. Since around 80% of paddy produced under the project will be exported, the application of SERF increases economic paddy price and internal rate of return.

• For rural labor, a shadow wage rate factor (SWRF) of 0.9 is applied. The SWRF reflects the productivity of rural labor in the area.

• Transfer payments, such as taxes and subsidies, are excluded in the calculation of economic values.

• To calculate the economic net present value (ENPV) of the subproject, a discount rate of 12% is used, representing the opportunity cost of capital invested.

17 It is assumed that changes that occur in the future (to the economy, climate) will affect the “with” and “without” project

scenarios roughly equally, thus maintaining the differences in benefits and costs associated with subproject implementation.

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C. Subproject Costs

185. “Without project” situation. The Kamping Pouy system is located between 6 and 25 km west of the city of Battambang and 335 km northwest of Phnom Penh. It was constructed during the 1975-1978 period, underwent rehabilitation in 2000, and had some sections improved and modernized in 2005 and 2012. Water for the irrigation system is supplied by the Kamping Pouy reservoir at the western edge of the irrigation system. The reservoir has four outlets, which serve four areas totaling 19,000 ha, including the 12,000-ha command area of the subproject. 186. The KPIS has never fully functioned as an irrigation system. During the dry season, only about 7,500 ha are planted to rice and other crops. Flooding problems are experienced in the area caused by local runoff floods and require cross-drainage solutions. The system has no water-measuring devices, no inflow and cropping season records, and no budget for O&M. Flooding problems in the Ou Taki area led to the selection of a relatively low “without project” yield of 2.5 t/ha of wet paddy.

187. “With project” situation. The proposed improvement is expected to provide water to five communes covering a total irrigable area of 12,000 ha. The cost of the proposed upgrading of the Kamping Pouy hydromet station is treated separately and is not included in the subproject economic analysis. At this stage, three subproject options have been defined. Option 1 assumes no substantial canal lining and is, thus, the cheapest. Option 2 assumes partial lining of primary and secondary canals and was selected as the baseline, in part to provide a basis for climate proofing of the subproject. Option 3 assumes concrete lining of primary and secondary canals and is the most expensive. Proposed physical improvements to the system include: (i) reservoir embankment, 6.5 km; (ii) link canal, 13.9 km; (iii) main canal, 14.1 km, and associated structures; (iv) secondary canals, 52.6 km, and associated structures; and (v) structures on drainage canals. 188. Subproject financial and economic capital costs are summarized in Table 39 and detailed in Table A3.1 in Appendix 3.

Table 39: Subproject Financial and Economic Capital Costs

($’000) Financial Cost Breakdown Economic

Option 2 Cost Foreign Local Cost

Irrigation subproject

Materials

Skilled

Labor

Unskilled

Labor

1. Civil Works costs for Option 1, including

contingencies and climate proofing,

embankments, and canal upgrading 22,030 3,525 14,760 1,101 2,644 19,787 2. Capacity building 399 40 80 279 362 3. Agricultural demonstration and training

activities

268 27 134 107 244 4. On-farm facilities 5,540 854 1,008 3,678 5,036

Total cost of non-civil works components 6,207 921 1,222 4,064 5,642 Contingencies for non-civil works components 621 92 122 406 564 Total irrigation subproject cost including contingencies 28,857 4,537 16,104 5,572 2,644 25,993

Source: Consultant’s estimates.

189. Total financial cost of the KPIS subproject is estimated at $28.9 million with an economic cost of $26.0 million. The lower economic cost is mainly due to the removal of value added tax (VAT) from the subproject construction costs. O&M cost is budgeted at 4% of capital expenditure.

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Options 1 and 3 have O&M costs estimated at 6% and 3% of capital cost, respectively. System rehabilitation is budgeted every 10 years at a cost of 12% of capital cost. 190. The main variations between financial and economic operational costs relate to harvesting, where the greater part of the cost relates to equipment, fuel, and fertilizer, the economic price of which is calculated in Table A3.2 based on World Bank projections. Economic cultivation and seasonal leveling costs are calculated from their financial values on the basis that they are a balance between labor (shadow priced at 0.9 times cost) and machinery (optionally priced at 1.1).

D. Subproject Benefits

191. The improved availability of irrigation water and improved drainage should allow cropping intensity to increase with the subproject, from an estimated 163% at present to at least 200% within six years of completion of construction. Higher cropping intensities are feasible and may be achieved with increased inclusion of 90-day rice varieties in the program. The current budget includes one traditional and one short-duration crop. 192. The economic value of incremental crop production is estimated based on the increased crop production moving from the “without project” to the “with project” situation. Dry season yields without the project are expected to decrease as infrastructure deteriorates further, by an estimated 5% by 2028 as shown in Table 40. With the project, the yields of traditional and short-duration varieties are expected to increase to 4.5 and 5 t/ha by 2028.

Table 40: Kamping Pouy Crop Areas and Production “With” and “Without” Project

Without Project With Project

Areas

Traditional

Variety

Early

Variety

Upland

Crop

(Corn)

Wet Season

Traditional

Variety

Wet Season

IRRI

Variety

Dry

Season

Early

(HYV)

Variety

Upland

Crop

(Corn)

Planted May Jan-Mar Jan May May Jan-Mar Jan

Harvested Nov Apr-Jun Apr Nov Sep Apr-Jun Apr

2020-22 Construction ha 12,000 6,938 600 12,000 6,938 600

2023 ha 12,000 6,938 600 11,400 600 6,938 700

2024 ha 12,000 6,938 600 10,800 1,200 7,710 800

2025 ha 12,000 6,938 600 10,200 1,800 8,483 900

2026 ha 12,000 6,938 600 9,600 2,400 9,255 1,000

2027 ha 12,000 6,938 600 9,000 3,000 10,028 1,100

2028 ha 12,000 6,938 600 8,400 3,600 10,800 1,200

% Yields 2020-22 Construction kg/ha 2,500 2,700 7,000 2,500 2,700 7,000

2023 kg/ha 2,500 2,700 7,000 2,500 3,000 3,000 7,000

2024 kg/ha 2,500 2,673 7,000 3,100 3,400 3,600 7,200

2025 kg/ha 2,500 2,646 7,000 3,500 3,800 3,800 7,400

2026 kg/ha 2,500 2,619 7,000 3,900 4,200 4,200 7,600

2027 kg/ha 2,500 2,592 7,000 4,300 4,600 4,600 7,800

2028 kg/ha 2,500 2,565 7,000 4,500 5,000 5,000 8,000

Gross margins

2020-22 Construction $/ha 442 375 837 419 477 434 819

2023 $/ha 442 375 837 419 477 434 819

2024 $/ha 431 357 853 602 580 594 886

2025 $/ha 421 339 858 716 681 637 943

2026 $/ha 409 321 873 827 778 734 1,011

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Without Project With Project

Areas

Traditional

Variety

Early

Variety

Upland

Crop

(Corn)

Wet Season

Traditional

Variety

Wet Season

IRRI

Variety

Dry

Season

Early

(HYV)

Variety

Upland

Crop

(Corn)

2027 $/ha 398 303 878 934 872 827 1,069

2028 $/ha 388 286 892 978 964 919 1,137

Source: Consultant’s estimates.

193. Economic crop prices are derived in Table A3.3, based on the export parity price of aromatic rice, which now comprises almost all production in Kamping Pouy and is planned as the only crop under the project. Economic price is estimated based on the FOB (freight on board) price of ships in Sihanoukville Harbor, for export mainly to China, Malaysia, and the European Union (EU). Based on an FOB price of $850/t for jasmine rice, $770 for Sen Kraob, and $425/t for white rice, the economic farmgate price of jasmine (long season) wet paddy (i.e., as harvested) is estimated at $376/t and at $334/t in 2018 for Sen Kro Ob.

E. Farm Performance

194. Crop financial gross margins are estimated in Table A3.4. In summary, crop financial performance is as shown in Table 41. This indicates that based on the yield and cost assumptions used, it is feasible to at least double the per hectare gross margin by production year 6 (when peak yield is obtained), which is subproject year 9 (allowing three years for construction until with-project cropping patterns commence). Economic gross margin (Table A3.5) is similar to its financial value since no SERF is applied to export paddy in the base case. Application of SERF would increase paddy price by around 8% (if 80% is exported) and, thus, significantly increase gross margin.

Table 41: Financial and Economic Gross Margins “With” and “Without” Project (2028)

Without Project With Project

Wet Season

Traditional

Variety

Dry

Season

Early

Variety

Upland

Crop

(Corn)

Wet Season

Traditional

Variety

Wet Season

IRRI

Variety

Dry

Season

Early

(HYV)

Variety

Upland

Crop

(Corn)

Area ha 12,000 6,938 600 8,400 3,600 10,800 1,200

Irrigated no yes yes yes yes yes yes

Planted May Jan-Mar Jan May May Jan-Mar Jan

Harvested Nov Apr-Jun Apr Nov Sep Apr-Jun Apr

Financial Yield kg/ha 2,500 2,565 7,000 4,500 5,000 5,000 8,000

Price $/t 305 271 263 305 271 271 263

Output $/ha 762 695 1,838 1,372 1,354 1,354 2,100

Total cost per ha $/ha 370 402 1,075 367 362 412 1,093

Financial gross margin $/ha 392 293 763 1,005 992 942 1,007

Economic Price $/t 305 271 263 305 271 271 263

Output $/ha 762 695 1,838 1,372 1,354 1,354 2,100

Total cost per ha $/ha 375 408 946 395 390 435 1,056

Economic gross margin $/ha 388 286 892 978 964 919 1,045

Source: Consultant’s estimates. 195. The “with” and “without project” cropping patterns have been costed over the period 2023-2030, though the tables are too large to include in this report. However, as an example, the “without

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project” economic budget for wet season traditional paddy is included as Table A3.6. Translated into the cropping patterns from Table 40, the overall performance of the subproject for the period, 2023-2030, is summarized in Table A3.7. This indicates a peak economic margin gain of $15.5 million in 2028, declining marginally thereafter as economic rice prices fall and fertilizer prices increase. 196. Budgets were developed for upland crops and paddy. The results are in Table A3.8 for mungbeans, watermelon, corn, and sesame. Watermelon has the highest gross margin at around $1,300/ha. Other crops are in the $720–$1,000/ha range. In practice, a wide range of crops will be grown, including vegetable crops such as chili and cucumber. However, for budgeting purposes, upland crops are represented by corn (for grain), since it is impractical to budget a wide range of crops with limited areas.

F. Cash Flow

197. Subproject construction costs are allocated over the three-year period, 2020–2022, with proportions of 30%, 50%, and 20% in each year. Over the construction years, the “with” and “without” project performance of irrigation is assumed to be the same. There may be some yield or area gains, but these may be offset by the disruption caused by construction, although the project must make efforts to minimize this. Applying the calculated gross margins for the period, 2023– 2030 and assuming that margins thereafter remain the same, the cash flow summarized in Table A3.9 is generated, indicating an economic internal rate of return (EIRR) of 24% and a net present value (NPV) of $34 million. This high rate of return is due both to the envisaged production gains and the high price generated by aromatic rice on the international market. In fact, the subproject would probably be uneconomic if producing white (non-aromatic) rice, with an economic price that is only 55% of aromatic rice. 198. Sensitivity testing was undertaken in relation to capital cost gains and paddy price declines, with a 10% increase in costs or decline in economic paddy price, reducing the EIRR to about 23% (Table 42). Capital cost would need to more than double to reduce EIRR to 12% (referred to as the switching value, i.e., at which the project becomes uneconomic compared to an opportunity cost of capital of 12%). Similarly, the economic farmgate price of paddy would need to fall by 48% to reduce EIRR to 12%.

Table 42: Options Summary, Sensitivities, and Switching Values

Capital Cost EIRR NPV 12%

$'000 $'000 Option EIRRs Option 1 22,241 26.2% 36,688

Option 2 Base partial lining 25,993 24.1% 34,387

Option 3 29,890 22.2% 31,574

Sensitivity based on Option 1 Capital cost increased by 10% 22.6% 31,826

Paddy price falls by 10% 22.1% 27,162

With-project peak yield reduced by 10% 21.0% 23,111

Cropping intensity increased to 225% 25.9% 42,227

SERF added 25.0% 38,579

Switching value for 12% EIRR

Capital cost increase 135%

Paddy price decline 48%

“With project“ yield decline 30%

Source: Consultant’s estimates.

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G. Impact on Poverty

199. In the Kamping Pouy irrigation area, 11,124 households are reported to reside in 31 villages located within the command area. Of these, 1,564 households own less than 1 ha of paddy land, while 3,130 households are landless. If one ha is taken as the cutoff for poverty, it is expected that by 2028, the average “without project” farmer would be earning around $585/ha from irrigated crops, rising to $1,960 with the project, or an increase of 235%. Such an increase should be sufficient to lift many families out of poverty, based on a current poverty line of around KR130,000/person per month18 or $1,560/year for a family of four. Since most families have other sources of income (e.g., livestock raising), it is quite likely that the project will have the potential to almost end farm poverty in the project area. It will also assist the land-poor and landless by providing income earning opportunities in the villages, both on-farm and off-farm, for example, through small businesses, which are expected to flourish under the improved financial environment resulting from subproject implementation.

200. One of the issues in irrigated agriculture in recent years has been the shortage of labor. Young women are often drawn to the garment factories, while men often work in Thailand, leaving farms short of labor. This is a key reason why broadcast seeding has almost fully replaced transplanting, and mechanized harvesting is almost universal. While absentee jobs have been necessary for many rural families to survive, it is anticipated that the improved profitability made possible by the upgrading of the irrigation system will allow some of the absentee workers to return to their villages. In future, this may allow further improvement to the production systems, for example, by moving to a system of rice intensification, with immense potential for productivity gains. Paddy yields of at least 12 t/ha are feasible and often achieved internationally.

VIII. ENVIRONMENTAL SAFEGUARDS

A. Regulatory Framework for Environmental Impact Assessment

201. ADB projects are assigned an environment category depending on the significance of the potential environmental impacts and risks. This project has been classified as Category B for environment. Such projects are judged to have minimal, site-specific environmental impacts mostly occurring during construction phase. An initial environmental examination (IEE), including an environmental management plan (EMP) is required.

202. An IEE for the Kamping Pouy subproject is in preparation. It follows the formats in the ADB Safeguards Policy Statement (SPS, 2009). The objectives of the IEE report are to:

• Describe the existing natural and socio-economic resources in and surrounding the project area;

• Identify and assess potential significant impacts based on existing environmental conditions including during project pre-construction, construction, and O&M stages;

• Identify and recommend mitigation measures to minimize any potential impacts caused by project activities;

• Undertake public consultations to present subproject environmental issues to project stakeholders and local people in the subproject area and to collect community concerns; and

• Develop an EMP with cost estimates, including monitoring plans during the construction and operation stages to guide subproject implementation.

18 In 2013, the poverty line was estimated at KR106,560/person per month by the Ministry of Planning. Based on average

inflation recorded in ADB’s Key Indicators for Cambodia of price increases averaging 3% per year for non-food and 5% for food, this would inflate to KR130,000/person/month in 2018 or $33.

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203. Since the Kamping Puoy subproject involves the refurbishment of existing irrigation infrastructure providing a command area in excess of 5,000 ha, the development requires an environmental impact assessment (EIA) under government Sub-decree No. 72 ANRK.BK. Under the terms of the Aide Memoire agreed in the ADB-MOWRAM Review Mission of 6-8 February 2018, MOWRAM, the EA, will confirm the domestic environmental assessment process with the Ministry of Environment (MOE) and request any specific requirements and t imescale for MOE’s endorsement. On receipt of this advice and upon completion of the detailed engineering design (DED) of the subproject, the TRTA consultants will assist the EA in ensuring that the project IEE conforms with these requirements and can be submitted to MOE by the EA in compliance with the sub-decree.

B. Baseline Environmental Condition

204. Geology and soils. The proposed subproject area is on quaternary alluvium formations, with the western half underlain by lake bed deposits and the eastern half on deltaic deposits. These both weather in situ to a soil classed as gleyic luvisol under the FAO soil classificat ion. This soil has a surface accumulation of humus overlying an extensively leached and saturated subsoil at a depth of about 50 cm. 205. Land use. The command area is fully sown to rice in the wet season and partially in the dry. There are village gardens in the eastern part associated with the villages of Chrey Thmei, Prey Totueng, Prey Dach, Ou Mai, and Prey Ronka. Village gardens also occur along the primary canal, which runs parallel to the road linking the reservoir with Road 57. These gardens commonly comprise mango trees, banana, coconut, papaya, and kapok. Along the primary canal and secondary canals are occasional large trees (Albizia lebbeck, Acacia melanoxylon, and Samanea saman), but the majority are low trees/tall shrubs of Zizyphus jujube, Cassia siamensis, Albizia myriophylla, Barringtonia sp., and Lanatus sp. The canals themselves are significantly silted and support thick growths of Mimosa pudica, Ipomea sp., and rush grasses. No canal fisheries have been noted. Along paddy dikes, away from the canals, are occasional Bombax ceiba and Dipterocarpus elatus. 206. Rainfall and hydrology. The monthly rainfall for the Kamping Pouy Subproject is shown in Table 43. These data show that through the wet season (May to October), the crop water requirement could be largely met from rainfall in an average year. In dry years (80% exceedance is shown as a dry year), irrigation is necessary, particularly in view of the uncertainty of commencement of the wet season.

Table 43: Dry, Minimum, and Maximum Rainfall (mm), Bek Chan

1985–2011 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Annual

Average 97 141 131 157 189 227 239 66 6 4 24 49 1,329

Dry year 41 78 79 111 127 163 163 17 0 0 0 25 1,164

50% 76 135 123 155 181 218 232 34 1 0 13 48 1,340

Wet 20% 158 213 172 203 234 288 318 110 14 9 39 74 1,469

Max year 24 100 100 291 302 248 233 378 397 441 381 20 1,707

Min year 0 0 11 20 24 42 27 77 86 105 0 0 1,062

207. The estimated inflow from the local catchment into Kamping Pouy reservoir is given in million cubic meters (mcm) in Table 44.

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Table 44: Local Inflow to Kamping Pouy for Dry, Minimum, and Maximum Years (mcm)

1985–2011 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Annual

Average 0.6 0.5 1.1 4.4 18.2 46.2 60.1 35.8 14.6 4.2 1.2 0.8 187.7

Dry 80% 0.4 0.4 0.3 0.3 0.8 29.7 50.8 25.1 8.7 1.7 0.7 0.6 119.5

50% 0.7 0.6 0.5 0.4 8.2 50.6 64.4 38.6 15.0 4.3 1.2 0.9 185.3

Wet 20% 0.7 0.6 0.5 5.8 40.2 62.5 78.1 45.2 17.4 5.4 1.4 1.0 258.8

Max year 0.9 0.8 21.3 27.7 59.6 89.7 89.4 75.0 39.2 14.1 3.9 1.3 422.9

Min year 0.0 0.0 0.1 0.2 0.2 0.2 0.3 8.7 2.3 0.0 0.0 0.0 12.0

208. However, a “protection bank” with gates has been constructed across two of the five stream channels leading water from the local catchment into the reservoir (Fig. 35). This bank prevents inflows from the southern third of the Kamping Pouy catchment area. The low runoff rates from the catchment and the restrictions on runoff from two stream channels limit the current seasonal amounts of water in the reservoir available for irrigation.

Figure 35: Layout of the Hydrology of the Existing Kamping Pouy Scheme

Source: TRTA Consultant

209. The hydrology of the subproject area also includes the Mongkol Borey, a river which is linked to the Kamping Pouy by a canal (the Ou Dounpov), which has a designed flow capacity of 37 m3/s, but, through deterioration, currently operates at a much lower flow. The hydrograph for the Mongkol Borey (see Fig. 18) describes in-river flow at the diversion point, and also shows the cumulative river flows (Q values) from the antecedent wet season.

210. Water quality. Samples of surface water were taken from the reservoir at the takeoff point and in a secondary canal in the north of the subproject area and from the primary canal at its end near the village of Paoy Suay. The analysis of the water samples showed acceptable levels of total nitrogen, heavy metals, and arsenic, but water in the reservoir and canals had positive E. coli counts (with the highest levels in the reservoir sample), indicating human and animal waste in runoff.

211. Groundwater in the command area is shallow, with most domestic wells at 2-5 m depth. These wells tap into the same water table, which maintains the level of water in the primary and secondary canals and shares their water quality. Two of the deeper wells around the edges of the command area were sampled. The more shallow sample (7 m) showed E.coli contamination

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as well as levels of total nitrogen and arsenic, which were detectable but within standard. The single deep well sample (30 m) had good water quality for all parameters measured.

212. Acoustic environment. Site ambient noise levels are characteristic of rural settings in Cambodia. The use of numerous small pumps on paddy dikes and along canals and frequent motorcycles along canal levee banks elevate the daytime noise levels. Typical daytime noise levels along primary and secondary canals are I hour averages of 33-38 dB, with maximum peaks of 60-70 dB due to vehicles.

C. Assessment Findings

213. Pre-construction. Design issues for the irrigation subproject focus on: (i) no encroachment on protected areas and no impact on critical habitats; and (ii) matching the total irrigation area for a new dry season crop with the availability of water.

214. Protected areas and critical habitats. Protected areas and critical habitats. The location of the Kamping Pouy subproject has been checked against the data in the International Biodiversity Assessment Tool (IBAT) (Fig. 36), which showed that the subproject does not encroach upon any nationally protected areas (IUCN management classes), international conservation agreement areas, or key biodiversity areas (KBAs) .

215. Water availability. The irrigation scheme must be sustainable and responsibly managed to ensure that agreed irrigation flows are maintained and other water users are not disadvantaged. Irrigation resources will be drawn from the reservoir, which is fed from its immediate catchment and will be augmented by water from the existing Ou Dounpov canal, which links with the Mongkol Borey River. The hydrological analysis of these sources, which was undertaken by the TRTA team, indicates that it is possible to irrigate an additional 8 ,000 ha for a dry season crop by: (i) compacting the cropping calendar; (ii) making use of tail -end effective rains at the beginning of the dry season; and proper management of the reservoir, diversion channel and command area.

242. More importantly, the intensive management of the reservoir, based upon the movement of 10-day water “buckets” from the catchment and link canal, through the reservoir and into the command area, as required, will ensure that the diversions drawn from the Mongkol Borey will be within the capacity of that waterbody to sustainably supply it. Under the planned reservoir management regime, the majority of water will be drawn from the Mongkol Borey during June-December when flows are high (see Q values in Fig. 18) in order to maintain the reservoir at a high level entering the dry season. The appropriate use of this “water bank” will ensure that minimal water will be required from inflow to the reservoir (catchment and Mongkol Borey diversion) in the dry season. This will, in turn, ensure that the Mongkol Borey will not be dewatered in any season and that minimal water will be drawn from it in the lowest part of the dry season to protect environmental functions.

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Figure 36: IBAT Identified Areas around Kamping Pouy

216. Construction. During construction of the subproject, the main issues will be air and water pollution and soil erosion, all of which can be managed by strict control of construction contractors and effective implementation of EMP mitigation and monitoring measures. Add itional localized traffic congestion is anticipated, and this must be minimized by responsible transport planning and work scheduling. Mitigation of construction phase impacts relies heavily on responsibility of works contractors to follow specification clauses that are specifically designed to minimize air and water pollution as well as soil erosion. This mitigation will, in turn, rely on enforcement by the Environmental Management Officer of the implementing agency and the commune councils.

217. Post-construction. The main concerns for an irrigation subproject are local increases in the levels of agricultural fertilizer and pesticide residues and their effects on water quality and people. The water quality samples will be further tested for pesticide residues to determine whether this is a current problem. Post-construction mitigation will benefit from capacity building and training under the project to use fertilizers and pesticides efficiently and responsibly.

218. Greenhouse gas (GHG) emissions from the increased area of paddy as a result of the subproject come from paddy gas production and the additional use of pumps (powered by internal combustion engines) for water movement. A preliminary estimate of total GHG production for an additional 8,000 ha dry season crop is approximately 23,000 tons CO2e/yr (21,000 t/yr from paddy gas and 2,000 t/yr from pumps).

219. Adaptation to predicted future increases in irrigation water demand in the subproject areas will be covered in the design by the use of conservative estimates of irrigation water requirements (IWRs) for potential cropping patterns. The rapid environmental assessment for the project identified a medium climate risk. Therefore, a climate risk and vulnerability assessment (CRVA) was undertaken for the whole project and its recommendations will be incorporated into subproject design. These will include improving irrigation efficiency through conveyance improvements and irrigation management.

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D. Public Consultations

220. Public consultations were undertaken in the Kamping Pouy communes on 6 April 2018 in conjunction with the project household surveys. The areas covered included present experience and perceptions of environmental problems and anticipated environmental issues in subproject construction and operation. These will be addressed in the mitigation measures of the IEE. The readiness of community members to complain if things go wrong and the avenues of complaint/ redress were also examined.

E. Grievance Redress Mechanism

221. A project-specific grievance redress mechanism (GRM) has been designed to receive and manage any public environmental issues that may arise due to the subproject. The implementing agency will coordinate the GRM. All stakeholder project agencies and staff will be oriented on the GRM procedures by the implementation team and will take an active role in supporting the GRM when necessary.

F. Environmental Management Plan

222. The IEE will include an EMP, where the identified environmental impacts and mitigation measures are transformed into an action plan for their implementation. The plan will include methods of mitigation, responsibilities, indicators of progress, and frequency and nature of monitoring activities with cost estimates. 223. The EMP will be a critical document for the subproject. The provisions of the EMP will be incorporated into tender documents and construction contracts.

IX. SOCIAL SAFEGUARDS

A. Socioeconomic Conditions and Poverty in KPIS Communes

224. The section provides an overview of the socioeconomic conditions and poverty in the 31 villages where the KPIS is located. The findings were taken from secondary information mostly available in the Commune Database (CDB) and supplemented by primary data obtained during the social safeguard team’s preliminary assessment activities.

225. Population. The population of the 31 villages in the KPIS is 51,569 in 11,124 households (Table 45). Overall, the population density is low in the five communes, at about 2/ha. While there is some variation among KPIS villages, the average household size and the proportion of female-headed households are similar to the provincial averages.

Table 45: Population in KPIS

Commune No. of

Villages Population

Households (HHs)

HH Size Female-headed Households (%)

Phnom Sampov 6 9,928 2,302 4.3 13

Ta Kream 7 15,372 3,147 4.9 12

Ou Ta Ki 2 4,807 1,176 4.1 9

Chrey 7 11,223 2,286 4.9 17

Ou Mal 9 10,239 2,213 4.6 20

Total 31 51,569 11,124 4.6 14

Source: 2014 CDB

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226. In the KPIS villages, people of working age (15-60 years) account for 60% of the population; women slightly outnumber men in this age group (Table 46). One-third of the population is comprised of young people under the age of 15 years; girls account for 48% of the youth. The proportion of youth to working age adults results in a child dependency ratio of 0.53, i.e., approximately every two working adults must support one child. While elderly people comprise a small proportion of the population (8%), there are significantly more women in this group (58%) compared to men.

Table 46: Sex/Age Structure in KPIS

Age (Years) Male Female Total % Total

0-14 8,668 7,877 16,545 32

15-60 14,946 15,816 30,762 60

61+ 1,799 2,463 4,262 8

25,413 26,156 51,569

% M/F 49% 51%

Source: 2014 CDB

227. Education and literacy. Basic education in Cambodia includes primary and lower secondary levels (Grades 1-9). Overall, in KPIS villages, the net enrolment rate (NER) in primary schools is 79%, meaning that nearly 80% of children of primary school age (6-11 years) are enrolled in primary school. The NER for girls (81%) is higher than that for boys (77%). However, many children start school late so that there are children in primary school up to the age of 17 years. Taking all students in primary school regardless of age, the ratio of girls to boys is 0.92.

228. At the lower secondary level, the overall NER drops significantly to 49%. This is similar to the situation throughout Cambodia and means that many young people discontinue their education after primary school. For children aged 12-14 years, the NER for girls is 50%, higher than for boys (48%). Considering all students enrolled in lower secondary school (ages 12-17 years), boys outnumber girls; however, there is near gender parity as the ratio of girls to boys is 0.98.

229. Literacy rates in KPIS communes are high: 97-98% of men and women between the ages of 15 and 34 years are literate. Among people aged 35-45 years, 94% of men and 92% of women are literate. There are no literacy data for older people in these communes, but it is likely that the rate of literacy is lower as people age, and lower for older women than for older men.

230. Primary and secondary occupations. Agriculture is the primary occupation of most people over the age of 18 years in KPIS communities.19Nearly half of the men (49%) and 37% of the women are engaged in crop cultivation in their own land. Among these farmers, 89% of men and 93% of women cultivate rice as a primary occupation. A further 9% of men and 7% of women work primarily as agricultural laborers. The service sector is the second most important primary occupation, including 20% of men and 14% of women. Trading accounts for a larger proportion of women, whose primary occupation is in this sector (23%) compared with 17% of the men.

231. In Cambodia, many people living in rural communities also have a secondary occupation. In KPIS communes, crop cultivation is the most important secondary occupation. Among these farmers, 64% of men and 75% of women cultivate rice. Raising livestock is an important secondary occupation for both men and women in these communes; for women, it is more important as a secondary occupation than cultivating crops. Trading, while not a secondary occupation for a large number of people, is more important for women than for men.

19 The available CDB data identify occupations for persons 18 years old and older.

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232. Ownership of vehicles and mechanized farm machinery. Among households in KPIS communes, 39% owned a motorbike and 37% owned a bicycle in 2014. In both instances, the average number of motorbikes or bicycles per household was 1.1. Very few households (2%) owned a family car or a small pick-up truck.

233. Many rural households in Cambodia invest in a hand tractor to replace water buffaloes and cows for plowing their fields. Hand tractors can also be adapted to haul carts or wagons that facilitate transport of people, agricultural produce, and other goods on rural roads. However, in 2014, only 17% of households in KPIS communes owned a hand tractor. The ownership levels were below 1% of households for other mechanized farm equipment such as large tractors and machines for harvesting and threshing rice.

234. Land-poor and landless households. While most people own and cultivate agricultural land in the KPIS communes, there are households with little or no rice land (Table 47). In total, 14% of households in the subproject area have less than 1 ha of rice land. More than one-fourth of households in the KPIS communes (28%) have no rice land, including more than one-third of the households in Ta Kream and half of the households in Chrey.

Table 47: Landless and Land-Poor Households, KPIS Communes

Owning <1 ha Rice Land No Rice Land

No. HHs % No. HHs %

Phnom Sampov 117 5 238 10

Ta Kream 693 22 1,137 36

Ou Ta Ki 23 2 90 8

Chrey 261 11 1,134 50

Ou Mal 470 21 531 24

Total 1,564 14 3,130 32

Source: 2014 CBD

235. Within Cambodia, the growth of the construction sector in urban areas has prompted primarily men to migrate to work in Phnom Penh and other towns. Many rural women also leave home to work for one or more years in the garment sector, which is concentrated in and around Phnom Penh. In 2014, 5% of women in KPIS communes in the 18-60 year age group and 7% of men migrated within Cambodia for work. In addition, the proximity of KPIS communes to Thailand contributes to more significant international migration for work. In 2014, 15% of women and 22% of men in the 18-60 year age group sought employment primarily in construction and manufacturing in Thailand and other nearby countries.

236. Agricultural production. Rice farming is the dominant land use in KPIS communes, representing 95-100% of non-residential land in most communes (Table 48). The exception is Ta Kream Commune, which has the largest total land area and the largest area of rice land. However, it also has more diversified land uses than the other communes, including significant areas of chamkar land, short- and long-term cropland, and other unidentified land uses20.

Table 48: Uses of Land in KPIS Communes (ha)

Total Residential Rice Rice as % of

Non-residential Chamkar

Phnom Sampov 4,653 1,083 3,379 95 175

Ta Kream 21,955 647 6.966 33 4,407

Ou Ta Ki 7,432 886 6,501 99 45

20 2014 CDB.

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Total Residential Rice Rice as % of

Non-residential Chamkar

Chrey 4,920 500 4,420 100 0

Ou Mal 3,824 748 3,038 99 38

Total 42,784 3,864 24,304 62 4,665

Source: 2014 CDB

237. The area of wet season rice land is nearly three times the area of dry season rice land in the KPIS communes (Table 49). Two communes, Phnom Sampov and Ou Mal, have only wet season rice land. In other communes, wet season rice land represents about one-half to two-thirds of all rice lands.

Table 49: Wet/Dry Season Rice Land (ha) and % Total Rice Land, KPIS Communes

Wet Season

(ha) % of Total

Dry Season

(ha) % of Total

Phnom Sampov 3,379 100 0 0

Ta Kream 4,466 64 2,500 36

Ou Ta Ki 4,701 72 1.800 28

Chrey 2,420 55 2.000 45

Ou Mal 3,038 100 0 0

Total 18,004 6,300

Source: 2014 CDB

238. A field survey conducted in 2018 by the TRTA team provides current data on the production of rice and other crops within the 12,000 ha command area of the KPIS (Table 50). The available area during the dry season (6,000 ha) is half of the total command area. However, the lack of water limits production to less than 60% of the available area. Even during the wet season, only 72% of the command area is cultivated. In both dry and wet seasons, farmers achieve the same yield of 2.5 t/ha. This is equal to the dry season yield and nearly 30% higher than the wet season yield for all rice farmers in the KPIS communes in 2014.21

Table 50: Rice Production in KPIS, 2017

Dry Season Rice

Total area 6,000 ha

Total area cultivated, 2017 3,500 ha

Total production, 2017 8,750 t

Average yield 2.5 t/ha

Wet Season Rice

Total area 12,000 ha

Total area cultivated, 2017 8,600 ha

Total production, 2017 21,500 t

Average yield 2.5 t/ha

Intensive Rice Production

Total area 5,430 ha

Total area cultivated, 2017 5,430 ha

Total production, 2017 19,000 t

Source: TRTA Consultant

21 2014 CDB.

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239. The farmgate price for rice grown in the KPIS command area in 2017 was between 700 and 1,000 KR/kg. This is similar to the 2014 farmgate price for rice cultivated in KPIS communes, which ranged from 700 to 950 KR/kg.22

240. In 2017, farmers cultivated 600 ha of corn within the KPIS command area, with an average yield of 7 t/ha. In 2014, only 150 ha of corn were cultivated in KPIS communes, and the yield was below 4 t/ha.23 Mungbean and soybean are hardly farmed in KPIS communes.

241. Poverty. In Cambodia, poverty has declined rapidly from 53.2% in 2004 to 20.5% in 2011 (Table 51). The most significant drop occurred in rural areas from 2007 to 2009, when the proportion of poor people declined by 30% from 57.9% to 27.5%. Increases in rice production, higher rice prices, and higher rural wages were among the drivers of poverty reduction as were government investments in infrastructure, improvements in education and health, and the growth of salaried jobs in urban areas.24

Table 51: Poverty Levels (% Population), Cambodia

2004 2007 2009 2011

National 53.2 50.1 23.9 20.5

Phnom Penh 15.8 2.7 4.3 1.5

Other Urban 39.7 35.0 12.7 16.1

Rural 59.0 57.9 27.5 23.7

Source: World Bank. 2014. Cambodia Poverty Assessment, 2013.

242. The reduction in poverty levels is reflected in the improved well-being of many, including women. The poverty rate for female-headed households (22.5%) is not significantly higher than that of male-headed households (20.1%). The families of many rural women, who migrate to urban areas to work in the garment sector, have benefited from the higher wages in this sector, although the gender wage gap remains high at 30%.

243. The dependency rate in Cambodia has dropped due to the increase in the working population. Nonetheless, the poverty level among Cambodia’s children (27.2% for children aged 0-6 years) is significantly higher than among working Cambodians (17.3% for people 21-59 years old). On the other hand, the elderly have a relatively low poverty rate of 15.4%.

244. Moreover, the poverty gap has dropped to 4.2% and 4.8%, respectively, at the national level and in rural areas, meaning that poor people have a higher level of well-being than previously. This is reflected in the annual 4.7% increase in consumption levels between 2004 and 2011, including improvements to housing and purchase of durable goods. Inequality between rich and poor Cambodians has also decreased during this period.

245. Nonetheless, 91% of the poverty in Cambodia is among the rural people. Many rural Cambodians have been able to move out of poverty by leveraging their land and labor assets to increase their return on investment. However, for most of them, the reduction in poverty is small, with the majority of poor people living at a level just above the poverty line. In 2011, it was estimated that a reduction in income of KR1,200 ($0.30) per day could result in a doubling of the poverty incidence.25

22 Ibid. 23 Ibid. 24 World Bank. 2014. Cambodia Poverty Assessment, 2013. 25 Ibid.

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246. In 2012, the poverty level in Battambang Province was 24.8%. In the KPIS communes, there have been declines of 30% to over 40% in poverty rates (Table 52). As a result, poverty levels are, in most instances, at or below the rate for rural areas.

Table 52: Poverty Levels (% Population) in KPIS Communes

Commune 2004 2008 2012 % Change

Phnom Sampov 31.7 28.2 21.2 - 33

Ta Kream 41.6 35.5 28.5 - 31

Ou Ta Ki 34.5 30.5 23.1 - 33

Chrey 29.7 25.5 18.5 - 38

Ou Mal 29.2 24.2 16.7 - 43 Source: Ministry of Planning, 2012. Poverty Reduction by Capital, Provinces, Municipalities, Districts, Khans, Communes, Sangkats. Based on Commune Data Base, 2004-2012.

247. The main factors that cause poverty, as identified by the people in the project area, are: (i) poor soil condition; (ii) lack of water in the canals for crop irrigation during the dry season; (iii) lack of irrigation canals (secondary and tertiary); (iv) non-use of appropriate agriculture technologies; (v) non-availability of good paddy seed in the market; (vi) high price of agro-inputs; (vii) poor condition of access roads to market; (viii) high loan interest rates; and (ix) lack of job opportunities in the locality.

248. Poverty and social assessment. A Poverty and Social Assessment (PSA) for the IAIP (including the Kamping Pouy Subproject in Battambang Province) is under preparation.26 However, the initial PSA results suggest that the subproject will contribute significantly to poverty reduction among the local residents by providing opportunities to local farmers to improve crop production (increase of productivity, more cropping seasons, crop diversification, etc.). Potential negative impacts of the subproject include land acquisition of five households, temporary travel inconvenience, and dust/noise pollution during the construction of the irrigation scheme.

B. Ethnic Minority Groups in KPIS communes

249. About 0.1% of the population in Battambang Province is composed of ethnic minorities (1,406 people living in 280 HHs) belonging to the Kouy, Tompuonn, Charay, Kachak, Por, and other groups (Table 53).

Table 53: Ethnic Minorities in Battambang Province

Ethnic Minority Groups

2015

No. of Families No. of People

Kouy 4 19

Tompuonn 3 18

Charay 3 17

Kachak 1 5

Por 159 725

Others 110 622

Total 280 1,406

Source: 2015 CDB

26The objectives of the PSA are to: (i) assess the current socioeconomic conditions and poverty in the subproject

communities; (ii) identify expected benefits as well potential negative impacts and risks posed by the subproject to the local people, particularly to the poor, women, and other socially disadvantaged groups; and (iii) propose mitigation measures to address the potential negative impacts and enhance the subproject's benefit distribution in the area. The impacts and associated mitigation/enhancement measures will be specified in a Social Action Plan.

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250. As per the 2016 Commune Data Base, there are no ethnic minorities living in the KPIS communities. This was confirmed by the local people and local authorities who attended the public consultations held in the area on 6-7 April 2018 and by the screening of ethnic minorities conducted by the TRTA Consultant in the subproject area (Table 54). The Socioeconomic Baseline Survey results also confirmed that 100% of the population in the subproject villages is Khmer, the ethnic majority in Cambodia.

Table 54: Ethnic Minority Population in KPIS Communes

Commune No. of Villages Population

(No. of Persons)

Ethnic Khmer

(%)

Other Ethnic

Groups (%)

Phnom Sampov 6 9,928 100 0

Ta Kream 7 15,372 100 0

Ou Ta Ki 2 4,807 100 0

Chrey 7 11,223 100 0

Ou Mal 9 10,239 100 0

Total 31 51,569 100 0

Source: 2016 CDB

251. As there are no ethnic minorities residing in the KPIS area, no activity/intervention is required to address ethnic minority issues in this subproject.

C. Land Acquisition and Resettlement

252. The proposed main canal follows the existing main canal alignment.The existing right of way (ROW) of the main canal is approximately 40.40m, which is more than the required 36-m ROW of the proposed main canal under the Kampong Pouy subproject. Land acquisition is, therefore, not required for the main canal improvement. With the main canal section in Ta Chour Village (Chrey Commune, Thmar Kol District), there is no need for widening of the canal; only dredging activities will be conducted to avoid negative impacts on 16 households residing adjacent to the ROW of the existing main canal.

253. Similar to the main canal, all the secondary canals follow the existing secondary canal alignments. In most of the secondary canals, the ROW is sufficient, and where the ROW is not enough for an earthen canal, concrete lining of the existing canal is proposed to avoid land acquisition of local people. However, land acquisition will be required for four households; another will be affected by the cutting of banana trees for secondary canal improvement (Fig. 37).

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Figure 37: Households Affected by the KPIS Subproject

Affected HH in Chrey Thmey Village, Chrey Commune Affected HH in Beong Reang Village, Ou Mal Commune

Affected Households in Beong Reang Village, Ou Mal Commune, who will have to relocate

254. In the secondary canal section in Chrey Thmey Village, Chrey Commune, Thmar Kol District, a total of 180 m2 of residential land of two households will be acquired due to the improvement of the embankment. In addition, 54 m2 of barbed wire fence and 21 banana trees of these households will be affected. No relocation of households is required as only parts of the residential land of the HHs will be acquired, and the remaining land area is still more than sufficient for the families to use.

255. In the secondary canal section in Beong Reang Village, Ou Mal Commune, there are two households whose homes are located along the canal embankment. The households have encroached on the canal ROW and have been staying there for more than seven years now. These households will have to relocate to give way to canal improvement. In addition, another household will have 98 banana trees cut during canal construction. The trees are planted on the canal embankment and not on the land owned by the household.

256. Secondary canals and drains (SCDs) are canals, which function for both irrigation and drainage. These SCDs are aligned in the existing canal alignments to avoid land acquisition and resettlement. The maximum required ROWs for SCD4 and SCD5 are 30 m and 37 m, respectively. The ROW of the existing canals is enough to accommodate drainage discharge considering climate changeimpacts; therefore, no land acquisition is required for the SCDs.

257. Results of initial consultations with the affected households (AHs) showed that there will be no problem with the two partially AHs in Chrey Thmey Village (Chrey Commune) and the household in Beong Reang Village (Ou Mal Commune) whose banana trees will be cut down, as the household income/livelihood will not be affected, and the replacement cost compensation for the affected land area and the banana trees is considered sufficient. However, as two physically displaced households in Beong Reang Village (Ou Mal Commune) are landless households (they are non-titled land users and have no another place to stay after having the land acquired), an assistance plan for the households, which will include adequate and affordable housing and secure

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tenure, will be discussed and finalized with the local authorities and the General Department of Resettlement (GDR) of the Ministry of Economy and Finance (MEF) during resettlement preparation and updating.

258. A resettlement plan is under preparation for the land acquisition impacts of the KPIS Subproject, which follows the outline and requirements in the ADB SPS (2009). It is a time-bound action plan with entitlements, relocation and income restoration strategy, institutional arrangements, monitoring and reporting framework, budget, and implementation schedule for land acquisition and resettlement of the KPIS subproject. The resettlement plan will be updated when the detailed engineering design of the subproject is available.

X. GENDER ANALYSIS

A. Gender Roles and Opportunities in Irrigated Agriculture

259. While women are active as farmers throughout Cambodia, they are not necessarily as engaged as men in the management of water resources and irrigated agriculture. This section reviews data regarding the FWUC established in the KPIS in 1999, as well as recent research and experience regarding gender roles and responsibilities in irrigation schemes in Cambodia.

260. KPIS-FWUC. The management structure of the KPIS-FWUC includes the four members of the FWUC Management Committee and the four-person management committees for each of the 47 FWUGs. Initially, 239 sub-groups (FWUSGs) were established within the command area; however, the FWUSGs are no longer functioning. Among the 192 people with management committee responsibilities in the FWUC, there are three women. One woman is the accountant of the FWUC Management Committee, and two women are members of management committees at the FWUG level.

261. Data provided by the FWUC Management Committee identified a total of 5,265 households with land within the 12,000-ha irrigation scheme that is to be upgraded under the IAIP.27 The FWUC Management Committee estimates that 10% of members are women. However, a recent study of water governance in Cambodia identified 115 women as members of the Kamping Pouy FWUC that is 2%.28

262. Gender and FWUCs in Cambodia. FWUCs are established in accordance with Sub-Decree No. 31 (2015), which defines a FWUC as an autonomous legal entity. The FWUC structure includes the FWUSGs that manage water resources at the level of tertiary canals and FWUGs that manage water resources at the level of secondary canals. At each level, there is a management committee normally consisting of four people elected by the FWUC members. Based on MOWRAM data, women’s membership in FWUCs in 2012 was16%, on average.29

263. While there is a significant gender gap in the membership of women and men in FWUCs, research and consultations carried out with members of FWUCs in three provinces clearly indicate that there are no significant differences in what men and women actually do as members of the FWUCs.30 Some work is reserved for men because of their physical strength, such as opening and closing of water gates. Women are predominantly responsible for collecting service fees and preparing reports on income and expenses once or twice a year. Many other activities may be

27 Meetings with Kamping Pouy FWUC Committee members, 15 March 2018. 28 Sithirith, M. 2017. Water Government in Cambodia: From Centralized Water Governance to Farmer Water User Community. MDPI Resources, 6, 44, 2017. 29 MOWRAM. 2014. MOWRAM Gender Mainstreaming Action Plan, 2014-2018. 30 MOWRAM, 2015. Report of a Pilot Study on Review of Gender Roles and Issues in the Water Sector in Kampong Thom, Siem Reap, and Banteay Meanchey Provinces and the Conduct of Awareness Raising and Training.

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thought of as men’s or women’s work; in reality, however, there are few gender distinctions in who does the work when needed.

264. The resolution of conflict regarding claims of unequal water distribution or farmers draining water onto their farms without permission is a key function of the FWUC. This is often cited as men’s responsibility, although there is increasing recognition that women are often better able than men to resolve conflicts through dialogue and other peaceful means.31 This is similar to the experiences of community fisheries groups in Cambodia with resolution of conflicts over the use of illegal fishing gear.

265. The absence of FWUSGs within the KPIS means that women farmers do not have a platform for their involvement in local water management. When they are functioning, FWUSGs bring together households with landholdings in the command area within a village. Experience with FWUSGs elsewhere in Cambodia supports the view that female farmers are often in the majority among participants at sub-group meetings.32 Similarly, during community meetings conducted by the agronomists in the present TRTA, women comprised majority of the participants.

266. Women attend meetings to represent their household when their husbands are away from the village, for instance, working on household land. The location of the meeting in the village also facilitates women’s participation; there are fewer constraints for women related to limited time, mobility, or childcare. Women farmers in Cambodia are often active participants at meetings about issues related to their agricultural activities such as at FWUSG meetings.33

B. MOWRAM Institutional Capacity

267. This section summarizes the role of women within MOWRAM and policies and strategies for gender mainstreaming.

268. MOWRAM staff. MOWRAM employs 1,258 people at the ministry and provincial levels. At the national level, there are 633 personnel; at the sub-national level, there are 625 staff, 9% of whom are women. One woman currently holds the position of Deputy Director General at the national level, and one PDWRAM Director is female. Table 55 below shows that women account for just under 10% of MOWRAM staff with management responsibilities.

Table 55: MOWRAM Management Staff

31 Ibid. 32 Chem Phalla. 2018. pers. comm. 33 Ibid.

Male Female Total

National Level

Director General 4 0 4

Deputy Director General 16 0 16

Inspector, Director 1 0 1

Inspector, Deputy Director 2 0 2

Department, Director 20 0 20

Department, Deputy Director 48 6 54

Chief Office 53 3 56

Vice Chief 137 34 171

Provincial Level

Provincial Department, Director 25 0 25

Provincial Department, Deputy Director 54 1 55

Provincial Office, Chief 84 3 87

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Source: Statistics, Ministry of Labor and Vocational Training, 2018

269. At MOWRAM, the Department of Farmer Water User Communities (DFWUC) is responsible for supporting the establishment and functioning of FWUCs. The current staff of 33 people includes five women (13.5%). Among the female staff at DFWUC, two women hold positions of Vice-Chief in the Office of Training and Research. There are no women in more senior management positions at the DFWUC. The DFWUC does not have any staff at provincial or district levels.

270. Within each of the 12 departments at MOWRAM, a gender focal point has been identified to fulfill the ministry’s commitments to gender mainstreaming, and a Gender Working Group (GWG) has been established at each PDWRAM. In Battambang, the PDWRAM has a total staff of 67 people, including eight women (12%). Among the female staff, one is a Vice-Chief in the Office of Water Supply and Sanitation, and three women are agents at the district WRAM offices. There are no women in more senior management positions within the PDWRAM.

271. IAIP Project Management Unit (PMU). The PMU that has been established to implement the IAIP is composed of 13 MOWRAM staff. Two of them are women who hold the position of Vice-Chief in the Office of Training and Research in DFWUC. Their responsibilities in the PMU relate to administration, finance, and procurement.

272. MOWRAM legal and policy framework. The 2007 Law on Water Resource Management enacted by the Royal Government of Cambodia (RGC) states, in Article 4, that water resource management is to be undertaken in accordance with international principles of integrated water resource management (IWRM). The 1991 Dublin Statement defines IWRM guiding principles, including, “Women play a central part in the provision, management and safeguarding of water.”

273. The Rectangular Strategy is the RGC framework for economic and social development of Cambodia and is structured through four interrelated strategic rectangles. The strategic rectangle for physical infrastructure development encompasses efficient management of irrigation infrastructure. The strategic rectangle for human resources development stresses the importance of women as “the backbone of national economy and society.”34

274. The National Socio-Economic Development Plan (NSDP), 2014-2018, reflects the commitments of the RGC and its ministries to support the objectives of the Rectangular Strategy. With respect to irrigation infrastructure, the NSDP highlights the: (i) prioritization of the location of expanded and renovated infrastructure in areas where there is good potential for increased economic returns; and (ii) greater participation of farmers and Commune Councils in local financing and management of the operation of irrigation schemes.35 Gender commitments are set out in the Neary Ratanak IV,36 the national gender policy, and stress the overriding importance of women’s economic empowerment and increased roles for women in decision-making at all levels.

275. MOWRAM gender mainstreaming strategies. In 2007, MOWRAM established a Gender Mainstreaming Action Group (GMAG) and prepared a Gender Mainstreaming Action Plan (GMAP),

34 RGC, 2014. Rectangular Strategy. 35 RGC, 2014. National Socio-Economic Development Plan, 2014-2018. 36 RGC, 2014. Neary Ratanak IV.

Provincial Office, Vice Chief 109 17 126

Khan/District Level

District, Chief 62 1 63

District, Vice Chief 3 0 3

Total 618 66 683

MOWRAM Gender Working Group

Gender Technical Working Group 4 14 18

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2007-2011, with support from ADB. In 2014, ADB again supported MOWRAM to produce the GMAP, 2014-2018. At the time of the most recent GMAP, the GMAG membership included 21 MOWRAM staff, 13 of whom are women (62%).

276. The initial GMAP identified strategies and targets to be achieved by 2010. Table 56 summarizes the scope of the GMAP and the level of achievement of its targets.

Table 56: MOWRAM GMAP, 2014-2018

Strategies Outputs

1. Strengthen the capacity of MOWRAM on gender at all levels.

• GMAG receives incentive support for its operations.

• Capacity of gender network in gender mainstreaming and gender analysis is strengthened and a pool of master trainers on gender is established.

• Awareness of MOWRAM officials is raised at all levels with regard to gender concepts and gender awareness issues as they relate to their areas of work.

• Public information and media messages related to MOWRAM are made more gender-responsive.

2. Continue to provide opportunities for women officials in MOWRAM to be promoted into decision-making positions.

• Women’s representation in decision-making is increased.

3. Enhance gender mainstreaming in human resources management.

• Number of women officials in MOWRAM is increased through new recruitment.

• Technical capacity of women officials in MOWRAM is built through the increase of their participation in national and international training and education.

4. Ensure that all services in the water resources and meteorology sector bring more benefits to women in the communities.

• Strategic areas for the following are gender-responsive:

Water resources management and development

Flood and drought management

Development of laws and regulations

Information management in relation to water resources and meteorology

Administrative management and human resources

5. Build good collaboration and partnership between GMAG and all MOWRAM projects to increase aid effectiveness.

• Aid effectiveness is promoted within MOWRAM through gender mainstreaming in the ministry’s projects.

• Collaboration and networking are strengthened among all stakeholders implementing gender equality, especially in the ministry’s projects.

6. Monitor and evaluate the implementation of the GMAP.

• M&E framework is designed and implemented.

• A gender databank is created.

Source: MOWRAM. 2014. Gender Mainstreaming Action Plan, 2014-2018.

C. Mainstreaming Gender in IAIP

277. This section presents a preliminary analysis of key gender issues and a draft Gender Action Plan (GAP) aligned with the proposed outcome and outputs of the IAIP. The analysis and GAP will be updated as necessary in the context of an in-depth gender analysis that is ongoing over the course of the TRTA.

278. Issues of strengthening gender in IAIP. The key gender issues are in two areas, namely: (i) opportunities for female farmers to promote their agricultural activities through access to irrigation resources and participation in decision-making about water resource management; and (ii) the knowledge, skills, and capacity of MOWRAM to address the needs and priorities of women and men in the development, implementation, and monitoring of projects to upgrade irrigation infrastructure.

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279. Women farmers in Cambodia have developed in-depth knowledge of growing rice and other crops through extensive in-field experience. Their agricultural production, post-harvest, and value-adding activities are a mainstay of the livelihoods of rural households in terms of the food they grow for household consumption and the crops they grow for sale. However, due to their lack of access to information, lack of control over key resources, and longstanding cultural norms, women are often less able than men to learn about and adopt new technologies to address changing conditions and improve production or to be heard, influence, and/or make decisions that have fundamental consequences on their agricultural activities. Some of the issues surrounding women’s access to and use of irrigation of particular relevance to the IAIP include the following:

• Women who remain in rural villages when men migrate for work are increasingly responsible for management aspects of rice cultivation, such as decisions about hiring in labor and negotiating with traders. In the context of irrigated rice cultivation, women also need to understand and be involved in decisions about water management, for example, water distribution plans.

• Women have traditionally cash-cropped vegetables that, as high-value crops, may be prime candidates for diversified crop production as expanded irrigation affords greater opportunities for dry season and year-round cultivation in the command area. For this reason, the needs and priorities of women and men need to be fully articulated and addressed in planning for crop diversification and crop calendars.

• Women often outnumber men in attendance at community meetings. However, widely held beliefs that water management is men’s responsibility, that women should not speak up in public, and that the lack of education or not being able to read means that a person does not have relevant knowledge, mean that women tend not to participate in discussions or, if they do, their interventions are not “heard”. Increasing women’s participation, for instance, in water user groups or training programs, must address practical constraints, such as limited time and mobility, and, gender quotas are important. However, increasing women’s active participation must also find ways to change attitudes and convince both men and women of the importance and value of women’s active participation and decision-making.

• Women and men in Cambodia often lack the knowledge and skills to fully develop their agricultural activities as successful microenterprises or businesses, for example, in basic areas such as financial literacy and in relation to emerging issues such as climate change and climate-smart agriculture. These are areas of capacity development that are important to validate in the investment in irrigation efficiency.

280. MOWRAM has instituted gender-responsive policies and moved towards achieving strategic objectives to strengthen gender mainstreaming. Nonetheless, the IAIP can contribute to further strengthening the capacity of MOWRAM and PDWRAM staff in the context of the outputs and outcome of the IAIP and in the context of institutional development.

281. Draft Gender Action Plan (GAP). The GAP is closely aligned with the outputs of the IAIP. It identifies a range of activities and strategies that are intended to strengthen the inclusion of women’s needs and priorities at the level of the irrigation schemes and also strengthen the gender mainstreaming capacity in MOWRAM. A draft version of the GAP is presented in Table 57 below. It reflects some of the issues raised in focus group discussions to date with women from households in the KPIS and other stakeholders, as well as secondary research. The GAP will be updated, as required, following completion of the full gender assessment.

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Table 57: Draft Gender Action Plan (GAP)

Activities Performance Indicators And Targets

OUTPUT 1: Efficiency and climate resilience of irrigation schemes enhanced

1. Crop diversification demand analysis/ planning and crop calendars: identify women’s and men’s priorities for dry season production of rice and/or other crops.

• Village-level FGDs are conducted with women from households with land in irrigation scheme; FGDs conducted in at least 30% of all villages in irrigation scheme.

• Women represent at least 40% of participants at community meetings to discuss crop diversification plans and crop calendars.

• Demand analysis/crop diversification reports clearly identify women’s and men’s priorities for dry season production of rice and/or other crops.

2. Establishment/strengthening of FWUCs: Encourage women to participate as members and to stand for election to management teams at all levels of FWUC.

• Women who hold title to land in irrigation scheme are signed up at members of FWUSGs and/or FWUGs; target = 100% of women who hold title to land.

• In households where wives and husbands are both named on titles for land in the irrigation scheme, more women are designated as the FWUC member; target = women account for at least 15% FWUC members.

[Baseline: Kamping Pouy: To be confirmed; data from different sources on female members varies from 2% to 10%; Prek Po, 0] Assuming that women join as members of FWUSGs and/or FWUGs: • Women elected to FWUSG management committee;

target = women account for 25% of FWUSG management committee (baseline: Kamping Pouy, 0; Prek Po, 0).

• Women elected to FWUG management team; target = women account for 25% of FWUG management committee (baseline: Kamping Pouy, 2 of 47 FWUG management teams each have 1 female member; Prek Po, 0).

• Women elected to FWUC management committee; target = women account for 25% of FWUC management committee (baseline: Kamping Pouy, 1 female member in FWUC management committee; Prek Po, 0).

3. Works for upgrading and climate proofing irrigation schemes: Encourage employment of women for paid work.

• Village-level FGDs are conducted with women from households with land in irrigation schemes to determine their interests, priorities and needs related to paid work to upgrade and/or climate-proof irrigation schemes.

• Contract specifications and tender documents specify target of 20% for employment of women for unskilled and skilled paid work to upgrade and/or climate-proof irrigation schemes.

• Priority will be given to women who read and write for paid work related to record keeping.

• All paid work will guarantee equal pay for women and men in similar positions.

• All work sites will have policies prohibiting sexual harassment and policies will be strictly enforced.

• All work sites will provide separate sanitation facilities for women and men.

• Gender orientation and sensitivity training will be provided to all construction site supervision staff.

OUTPUT 2: Water resource management improved

1. Training program for FWUCs/farmers on • Women comprise at least 40% of participants in training

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Activities Performance Indicators And Targets

climate-resilient agricultural strategies: ensure active participation of women in training and field demonstrations.

on climate-resilient agricultural strategies (paddy water management, crop calendars, climate-resilient and higher-value crops, etc.).

• Women are at least 40% of participants during in-field demonstrations (e.g., different rice varieties, water requirements of other crops, etc.).

• The design and implementation of training programs will take into consideration women’s time, mobility and literacy limitations through appropriate arrangements for the location, timing, and duration of activities as well as design and delivery of training materials.

2. Training program for FWUCs/farmers on water resource management in irrigation scheme (e.g., water distribution, O&M, etc.,): ensure active participation of women in training and field demonstrations.

• Women are at least 20% of participants in training related to water resource management.

• Women are at least 20% of participants during in-field demonstrations related to water resource management.

• The design and implementation of training programs will take into consideration women’s time, mobility, and literacy limitations through appropriate arrangements for location, timing, and duration of activities as well as design and delivery of training materials.

3. Training and mentoring program for FWUCs to build capacity of women and men to participate in and manage activities of FWUCs.

Target topics: Accounting/finance; communications techniques, extension and outreach; conflict resolution; leadership and management skills (facilitation, working with women, etc.); awareness of opportunities/constraints for women and men in relation to irrigation agriculture and water resource management.

• TNA conducted with men and women, including separate meetings as relevant with women, to define scope of training/mentoring program in relation to existing knowledge and priorities for new knowledge and skills; TNA report explicitly identifies men’s and women’s needs/priorities for FWUC/water resource management.

• Training/mentoring program design and delivery to: (i) provide practical knowledge and skills related to FWUC management and operation; and (ii) use methods and tools to promote participatory learning and address literacy and other relevant issues.

• Training conducted with all management teams at FWUC and FWUG levels including all female members.

• Training conducted at FWUSG level in each commune with all management teams at FWUSG level including all female members.

• Ongoing mentoring provided to FWUC management teams at all levels to support full mastery of and capacity to use new knowledge and skills.

4. Gender and TOT training program for MOWRAM and PDWRAM staff, including members of the: (i) GMAG); (ii) Gender Technical Working Group (GTWG); and (iii) GFPs at provincial level.

Target topics: gender issues/priorities in irrigated agriculture and water resource management; gender analysis methods; TOT training, participatory training and facilitation skills; gender budgeting

[GMAP, 2014-2018; Outputs 1.2 and 1.3]

• TNA conducted to identify needs/priorities for a two-tiered training program to: (i) strengthen knowledge and skills related to gender mainstreaming in water resource management; and (ii) strengthen capacity and skills as TOT trainers.

• A two-tiered program of training activities developed as per the above and phased for delivery once a year over the duration of the IAIP; target = TOT trainers will deliver training in Year 3.

• A study tour is organized in Years 2 and 3 of the IAIP for visits to IAIP irrigation schemes and meetings with FWUCs and other stakeholders in irrigation scheme areas.

• All participants demonstrate increased confidence in their knowledge of gender mainstreaming and in the use of gender mainstreaming tools in relation to their work in MOWRAM/PDWRAM.

• A sub-group of volunteer participants demonstrate increased confidence in their knowledge and ability to conduct training and coaching on gender

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Activities Performance Indicators And Targets

mainstreaming in irrigated agriculture and water resource management, to colleagues at MOWRAM and PDWRAM and to FWUCs.

5. Gender training at DFWUC and PDWRAM technical staff in IAIP provinces to support capacity to promote women’s opportunities related to FWUC/ water resource management.

Target topics: roles and responsibilities of FWUCs at all levels; opportunities/ constraints for women’s participation in irrigated agriculture and FWUCs; conflict resolution techniques.

[GMAP, 2014-2018; Output 1.3]

• TNA conducted to identify needs/priorities for training and/or coaching on addressing gender issues in relation to the roles and responsibilities of staff, including the scope, content, methods and schedule for training and/or coaching activities over the course of the IAIP.

• A program of training and/or coaching developed and delivered as per modalities indicated above.

• All participants demonstrate increased confidence in their knowledge of how to address gender issues and/or activities in context of their work in MOWRAM/ PDWRAM.

6. Support development of MOWRAM Gender Data Base

[GMAP 2014-2018; Outputs 6.1 and 6.2]

Years 1 and 2, IAIP: • Database development: database platform

established/updated; data collection methods and tools developed; reporting and dissemination methods and procedures established.

• Training program developed and delivered to GFPs and other MOWRAM/PDWRAM staff with responsibilities for management of Gender Data Base, related to methods, tools and procedures for data collection, analysis, reporting, and dissemination.

• Pilot project: Data collected, analyzed, and reported from provinces/project areas included in IAIP; baseline data collected at beginning of IAIP and updated over course of loan program as relevant.

Year 3, IAIP: • Rapid evaluation study conducted of pilot activities;

approach to Gender Data Base revised, as required. • Data collected, analyzed and reported from other

provinces where FWUCs exist and/or are being established; target = to be established in context of pilot evaluation study.

7. IAIP PMU and PMIC to have designated gender specialists/focal points to support implementation of GAP and facilitate other gender-relevant work, e.g., establishment and strengthening of FWUCs.

• The PMU will designate one MOWRAM GFP to liaise with and assist PMIC to implement GAP and other gender-related activities under IAIP.

• TORs are developed to clearly define roles and responsibilities of PMU GFP; target is to ensure adequate involvement in IAIP without overburdening regular responsibilities.

• The PMIC will have support from 1 international gender specialist (+/- 6 person-months [p-m]) and 1 national gender specialist (+/- 12 p-m) to facilitate the implementation of GAP and other gender-related work.

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Appendix 1

PHOTOS OF THE KPIS TAKEN DURING FIELD VISITS OF THE TRTA TEAM

Figure 1: Upstream view of the existing Tahaen Barrage for diverting Mongkol Borey River flow into the Link Canal, discharging into Kamping Pouy Reservoir.

Figure 2: River bank erosion downstream of Tahaen Barrage.

Figure 3: Upstream view of Link Canal head regulator.

Figure 4: Downstream view of Link Canal head regulator

Figure 5: Link Canal section connecting Mongkol Borey River to the Kamping Pouy Reservoir under erosion and high bed elevation. The existing bed elevation needs to be lowered and the section enlarged and lined.

Figure 6: View of Link Canal downstream of the head regulator.

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Figure 7: Collapsing upstream reservoir dike side slope.

Figure 8: Upstream view of the Head Work Structure (Ten Gate Headwork).

Figure 9: Downstream view of Headwork Structure (Ten Gate Headwork).

Figure 10: Overflow weir downstream of the Ten Gate Structure in good condition. However, the existing gates require replacement due to corrosion and leakage.

Figure 11: Bushes and trees growing along the main canal section, thus reducing conveyance capacity.

Figure 12: Canal embankment is deteriorating and getting lower due to transport vehicles using the bank, resulting in reduced available head.

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Figure 13: Erosion of main canal cross-section.

Figure 14: Erosion of canal section due to insufficient cattle crossings.

Figure 15: Broken check structure, with eroded canal section downstream of the check structure due to absence of a proper energy dissipation basin.

Figure 16: There is no sufficient canal crossing for cattle and humans. The existing wooden bridge needs tto be replaced with a concrete bridge.

Figure 17: Tree growth on canal embankments leading to canal bank piping and collapse.

Figure 18: Existing weir in good condtion. However, the lack of an energy dissipation basin has resulted in the erosion of the canal section downstream of the structure.

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Appendix 2

DETAILED COST ESTIMATES OF THE OPTIONS FOR THE MODERNIZATION OF THE

KAMPING POUY IRRIGATION SYSTEM

Table A2.1: Cost Estimates of Civil Works, Option 1

No. Description Length

Reservoir Embankment/

Canals and Drains

Structures Total Cost

km US$ US$ US$

1. Reservoir embankment protection 6.5 2,282,800.00 2,282,800.00

2. Main canal concrete lining, Section 1 from station 0+000 m to station 5+600 m

5.6 3,385,554.65 304,650.00 3,690,204.65

3. Main canal, Section 2 from station 5+600 m to station 14+136 m

8.536 175,120.43 113,000.00 288,120.43

4. Secondary canal SC1 5.7 272,796.50 250,000.00 522,796.50

5. Sub-secondary canal SSC1 7 272,515.00 427,000.00 699,515.00

6. Secondary canal and drain SCD2 11.3 558,102.50 448,600.00 1,006,702.50

7. Secondary canal and drain SCD3 7.2 506,975.00 472,000.00 978,975.00

8. Secondary canal and drain SCD4 9.1 643,916.25 389,000.00 1,032,916.25

9. Secondary canal and drain SCD5 12.3 596,180.00 372,000.00 968,180.00

10. Structure on the secondary drain SD1 11 54,000.00 54,000.00

11. Structure on the tertiary canal and drain TN 16

2.5 38,000.00 38,000.00

12. Concrete lining for the Link Canal from the Mongkol Borey Barrage at 8 km of the total length of 13.9 km

8 2,923,776.00 2,923,776.00

Total 94.74 8,693,960.32 5,792,026.00 14,485,986.32

13. Physical contingency (10% of total) 1,448,598.63

Grand Total 15,934,584.95

Table A2.2: Cost Estimates for Civil Works, Option 2

No. Description Length

Reservoir Embankment/

Canals and Drains

Structures Total Cost

km US$ US$ US$

1. Reservoir embankment protection 6.5 2,282,800.00 2,282,800.00

2. Main canal concrete lining, Section 1 from station 0+000 m to 9+167 m (MC1, MC2)

9.167 5,152,181.01 304,650.00 5,456,831.01

3. Main canal, Section 2 from station 9+167 m to 14+136 m (MC3)

4.969 175,120.43 113,000.00 288,120.43

4. Secondary canal SC1 5.7 2,304,276.50 250,000.00 2,554,276.50

5. Sub-secondary canal SSC1 7 272,515.00 427,000.00 699,515.00

6. Secondary canal and drain SCD2 11.3 558,102.50 448,600.00 1,006,702.50

7. Secondary canal and drain SCD3 7.2 506,975.00 472,000.00 978,975.00

8. Secondary canal and drain SCD4 9.1 643,916.25 389,000.00 1,032,916.25

9. Secondary canal and drain SCD5 12.3 596,180.00 372,000.00 968,180.00

10. Structure on the secondary drain SD1 11 54,000.00 54,000.00

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No. Description Length

Reservoir Embankment/

Canals and Drains

Structures Total Cost

km US$ US$ US$

11. Structure on the tertiary canal and drain TN 16

2.5 38,000.00 38,000.00

12. Concrete lining of the Link canal from the Mongkol Borey Barrage at 8 km of the total length of 13.9 km

8 2,923,776.00 2,923,776.00

Total 94.74 12,492,066.68 5,792,026.00 18,284,092.68

13. Physical contingency (10%) 1,828,409.27

Grand Total 20,112,501.95

Table A2.3: Cost Estimates of Civil Works, Option 3

No. Description Length

Reservoir Embankment/

Canals and Drains

Structures Total Cost

km US$ US$ US$

1. Reservoir embankment protection 6.5 2,282,800.00 2,282,800.00

2. Main canal concrete lining, Section 1 from station 0+000 m to 9+167 m (MC)

9.167 5,152,181.01 304,650.00 5,456,831.01

3. Main canal, Section 2 from station 9+167 m to 14+136 m (MC)

4.969 1,624,080.83 113,000.00 1,737,080.83

4. Secondary canal SC1 5.7 2,304,276.50 250,000.00 2,554,276.50

5. Sub-secondary canal SSC1 7 2,767,315.00 427,000.00 3,194,315.00

6. Secondary canal and drain SCD2 11.3 558,102.50 448,600.00 1,006,702.50

7. Secondary canal and drain SCD3 7.2 506,975.00 472,000.00 978,975.00

8. Secondary canal and drain SCD4 9.1 643,916.25 389,000.00 1,032,916.25

9. Secondary canal and drain SCD5 12.3 596,180.00 372,000.00 968,180.00

10. Structure on the secondary drain SD1 11 54,000.00 54,000.00

11. Structure on the tertiary canal and drain TN 16

2.5 38,000.00 38,000.00

12. Concrete lining of the Link Canal from the Mongkol Borey Barrage at 8 km of the total length of 13.9 km

8 2,923,776.00 2,923,776.00

Total 94.74 16,435,827.08 5,792,026.00 22,227,853.08

13. Physical contingency (10%)

2,222,785.31

Grand Total

24,450,638.39

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Appendix 3

SUBPROJECT ECONOMIC ANALYSIS

Table A3.1: Kamping Pouy Subproject Capital Costs

Financial Breakdown of Financial Cost Economic

Option 1 Base Case

Foreign Local Costs Cost

Component/Activity

Mater-

ials

Skilled

Labor

Unskilled

Labor

1. Cost of civil works embankments & canal upgrading

1.1 Reservoir Embankment, 6.5 km 2,283 365 1,529 114 274 2,050

1.2 Link Canal, 13.9 km 2,924 468 1,959 146 351 2,626

1.3 Main Canal, 14.1 km, and associated structures 5,745 919 3,849 287 689 5,160

1.4 Secondary Canals, 52.6 km + associated structures 7,333 1,173 4,913 367 880 6,586

1.5 Structures on drainage canal Total 18,284 2,925 12,250 914 2,194 16,422

Climate proofing 1,743 279 1,168 87 209 1,566

Contingencies 2,003 320 1,342 100 240 1,799

Total cost of civil works 22,030 3,525 14,760 1,101 2,644 19,787

Components 2 to 4

2. Capacity building for Kamping Pouy FWUC: 2.1 For MOWRAM, PDWRAM and other Institutions 127 13 25 89 115

2.2 For farmer water user community (FWUC) 272 27 54 190 247

Total 399 40 80 279 362

3. Agricultural demonstration and training activities

Estimated cost for proposed agricultural demonstration

activities

3.1 Demonstration, field schools, extension 210 21 105 84 191

3.2 Technical assistance 58 6 29 23 53

Total 268 27 134 107 244

4. On-farm facilities 4.1 Infrastructure cost within tertiary command: 2,940 294 588 2,058 2,673

4.2 Drone images: 500 350 150 455

4.3 NGO services 2,100 210 420 1,470 1,909

Total 5,540 854 1,008 3,678 5,036

Total cost of non-civil works components 6,207 921 1,222 4,064 5,642

Contingencies for non-civil works components 621 92 122 406 564

Non-civil works including contingencies 6,827 1,013 1,344 4,471 6,207

Total irrigation subproject cost including contingencies 2,8857 4,537 16,104 5,572 2,644 25,993

Notes

a Based on 2018 prices. b Conversion of financial to economic costs was based on the following shadow pricing:

Shadow exchange rate factor (SERF) = 1.10 Shadow wage rate factor (SWRF) = 0.90 Taxes and Duties = 0.10

c Detailed Design & Construction Supervision = 0.07

d Physical Contingency = 0.10

Source: Consultant’s estimates.

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Table A3.2: Economic Fertilizer Prices Kamping Pouy

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Urea

Eastern Europe (current $) a $/t 273 199 216 215 221 227 234 240 247 254 261 269 277 284 292 300

Eastern Europe (constant 2010 $) a $/t 284 277 270 264 258 253 247 241 236 230 225 229 234 238 243 247

MUV (2010 = 100) b 2010 98 94 95 97 99 101 103 105 107 109 111 113 115 117 119 121

MUV (2018 = 100) b 2018 100.4 96.5 97.4 100.0 102.1 104.1 106.1 108.0 109.9 111.8 113.8 116.0 118.1 120.3 122.5 124.7

Urea FOB Eastern Europe (constant 2018 $) $/t 272 206 222 215 217 218 221 222 225 227 229 232 234 236 239 241

Freight, insurance, etc. $/t 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80

CIF Sihanoukville $/t 352 286 302 295 297 298 301 302 305 307 309 312 314 316 319 321

Freight & handling Sihanoukville to project area $/t 48 48 48 48 48 48 48 48 48 48 48 48 48 48 48 48

Handling and transport to farmgate c $/t 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6

Financial farmgate price per ton $/t 406 340 356 349 351 352 355 356 359 361 363 366 368 370 373 375

Economic farmgate price per kg $/kg 0.41 0.34 0.36 0.35 0.35 0.35 0.35 0.36 0.36 0.36 0.36 0.37 0.37 0.37 0.37 0.37 DAP (diammonium phosphate)

US (current $) a $/t 459 345 347 345 353 361 369 377 385 394 403 412 422 431 441 450

US (constant 2010 $) a $/t 470 368 366 355 355 356 358 359 361 363 364 365 367 368 370 371

MUV (2010 = 100) b 2010 98 94 95 97 99 101 103 105 107 109 111 113 115 117 119 121

MUV (2018 = 100) b 2015 100.4 96.5 97.4 100.0 102.1 104.1 106.1 108.0 109.9 111.8 113.8 116.0 118.1 120.3 122.5 124.7

DAP FOB US Gulf (constant 2018 $) $/t 457 358 356 345 346 347 348 349 350 352 354 356 357 358 360 361

Freight, insurance, etc. $/t 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80

CIF Sihanoukville $/t 537 438 436 425 426 427 428 429 430 432 434 436 437 438 440 441

Freight & handling Sihanoukville to project area $/t 48 48 48 48 48 48 48 48 48 48 48 48 48 48 48 48

Handling and transport to farmgate c $/t 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6

Financial farmgate price per ton $/t 591 492 490 479 480 481 482 483 484 486 488 490 491 492 494 495

Economic farmgate price per kg $/kg 0.59 0.49 0.49 0.48 0.48 0.48 0.48 0.48 0.48 0.49 0.49 0.49 0.49 0.49 0.49 0.49 Potassium chloride

Vancouver (current $) a $/t 303 246 216 215 222 230 237 245 254 262 271 281 291 300 310 320

Vancouver (constant 2010 $) a $/t 310 262 228 221 224 227 230 234 238 241 245 249 253 256 260 264

MUV (2010 = 100) b 2010 98 94 95 97 99 101 103 105 107 109 111 113 115 117 119 121

MUV (2018 = 100) b 2018 100.4 96.5 97.4 100.0 102.1 104.1 106.1 108.0 109.9 111.8 113.8 116.0 118.1 120.3 122.5 124.7

KCl Vancouver (constant 2018 $) $/t 302 255 222 215 218 221 223 227 231 234 238 242 246 250 253 257

Freight, insurance, etc. $/t 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80 80

CIF Sihanoukville $/t 382 335 302 295 298 301 303 307 311 314 318 322 326 330 333 337

Freight & handling Sihanoukville to project area $/t 48 48 48 48 48 48 48 48 48 48 48 48 48 48 48 48

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2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Handling and transport to farmgate c $/t 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6

Financial farmgate price per ton $/t 436 389 356 349 352 355 357 361 365 368 372 376 380 384 387 391

Economic farmgate price per kg $/kg 0.44 0.39 0.36 0.35 0.35 0.35 0.36 0.36 0.37 0.37 0.37 0.38 0.38 0.38 0.39 0.39

CIF = cost insurance and freight, DAP = diammonium phosphate, FOB = free onboard, KCl = potassium chloride, MUV = manufacturing unit value index. Source: Consultant’s estimates.

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Table A3.3: Economic Crop Prices, Kamping Pouy

Paddy rice 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

interpolated

Thailand (current $) a $/t 386 396 400 403 406 409 412 415 418 421 424 427 430 434 437 440

Thailand (constant 2010 $) a $/t 395 423 422 414 409 404 399 395 391 387 383 379 375 371 367 363

MUV (2010 = 100) b 2010 98 94 95 97 99 101 103 105 107 109 111 113 115 117 119 121

MUV (2018 = 100) b 2018 100.4 96.5 97.4 100.0 102.1 104.1 106.1 108.0 109.9 111.8 113.8 116.0 118.1 120.3 122.5 124.7

Rice FOB Bangkok (constant 2018 $) $/t 384 410 411 403 398 393 388 384 380 376 373 368 364 360 357 353

Quality Adjustment factor c % 8.7 9.8 8.7 8.7 8.7 8.7 8.7 8.7 8.7 8.7 8.7 8.7 8.7 8.7 8.7 8.7

Value adjlusted for quality difference $/t 351 370 375 368 363 359 355 351 347 344 340 336 333 329 326 322

Shipping differential to market /d $/t 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

FOB Sihanoukville $/t 351 370 375 368 363 359 355 351 347 344 340 336 333 329 326 322

Losses and exporter's margin (3%) $/t 11 11 11 11 11 11 11 11 10 10 10 10 10 10 10 10

Freight & handling Battambang to

Sihanoukville $/t 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42 42

Milling cost (assumed = bran value) $/t

Ex-mill (dry rice 14% moisture) $/t 298 317 322 315 310 306 302 298 295 291 288 284 281 277 274 271

Conversion to dry paddy e $/t 194 206 209 205 202 199 196 194 192 189 187 185 182 180 178 176

Value of wet paddy (29%) $/t 160 170 173 169 167 164 162 160 158 156 155 153 151 149 147 145

Handling and transport farm to mill $/t 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6

Economic farmgate price per ton $/t 154 164 167 163 161 158 156 154 152 150 149 147 145 143 141 139

Ratio to 2018 price 0.95 1.01 1.02 1.00 0.98 0.97 0.96 0.95 0.93 0.92 0.91 0.90 0.89 0.88 0.86 0.85

Financial Jasmine $/t 348 343 338 333 329 325 321 317 313 309 305 301 297

Financial Sen Kraob $/t 309 305 300 296 292 289 285 282 278 274 271 267 264

Financial white rice $/t 147 145 142 141 139 137 135 134 132 130 129 127 125

Economic Jasmine f $/t 348 343 338 333 329 325 321 317 313 309 305 301 297

Economic Sen Kraob $/t 309 305 300 296 292 289 285 282 278 274 271 267 264

Economic White rice $/t 147 145 142 141 139 137 135 134 132 130 129 127 125 a WB Commodity Price Projections released October 26, 2017 for 2015 through 2030. (Thailand, 5% broken, white rice, milled, fob Bangkok) b manufacturing unit value (MUV) Index c Adjustment for quality relative to the standard of Thai white rice, 5% broken = 12% based on relativity of Vietnamese to Thai rice 2010-2018 d Standard conversion factor (SCF) applied on half the amount of handling, transportation and milling = 0.9 e Conversion factor of paddy to rice = 60%. In calculating the price of aromatic rice, a milled rice to dry paddy percentage is taken as 42% based on Battambang mill estimates,

plus 25% broken, sold separately. Paddy is dried from an average moisture of 29% to the milling level of 14%.

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Maize No 2 yellow FOB US Gulf ports

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

interpolated

Maize (current $) $/mt 170 159 155 159 162 166 170 174 178 183 187 192 196 201 205 210

Maize (constant 2010 $) $/mt 174 170 164 163 164 164 165 166 167 168 169 170 171 171 172 173

MUV (2010 = 100) b 2010 98 94 95 97 99 101 103 105 107 109 111 113 115 117 119 121

MUV (2018 = 100) b 2018 100.4 96.5 97.4 100.0 102.1 104.1 106.1 108.0 109.9 111.8 113.8 116.0 118.1 120.3 122.5 124.7

Corn US Gulf (constant 2018 $) $/t 169 165 159 159 159 159 160 161 162 164 164 165 166 167 168 168

Estimated economic & financial price

Battambang (constant 2018 $) 250 250 251 252 253 255 257 258 260 261 262 264 265

https://www.indexmundi.com/cambodia/agriculture/corn.html provides information on trade in corn. Source: Consultant’s estimates.

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Table A3.4: Crop Financial Gross Margins, Kamping Pouy, 2028

Without Project With Project

Unit

Wet Season

Traditional

Variety

Dry Season

Early

Variety

Upland

Crop

(Corn)

Wet

Season

Traditional

Variety

Wet

Season IRRI

Variety

Dry Season

Early (HYV)

Variety

Upland

Crop

(Corn)

Potential irrigable area 12,000 12,000 12,000 12,000 12,000 12,000

% cropped 100% 58% 5% 70% 30% 90% 10%

Area cropped ha 12,000 6,938 600 8,400 3,600 10,800 1,200

Irrigated no yes yes yes yes yes yes

Planted May Jan-Mar Jan May May Jan-Mar Jan

Harvested Nov Apr-Jun Apr Nov Sep Apr-Jun Apr

Inputs/ha

1 Land preparation times 2 2 2 1 1 1 1

2 Land levelling hand tractor times 1 1 1 1

3 Seed purchased kg/ha 30 30 15 70 70 70 15

4 Seed retained kg/ha 90 90

5 Urea-46% kg/ha 150 91 100 91 91 91 100

6 DAP 18-46-0 kg/ha 100 100 100 100 100 100 100

7 KCL (60%) kg/ha 50 50 50 50 50 50 50

8 Compost/manure t/ha 7 7

9 Pesticides L/ha 5 5

10 Labor days/ha 35 35

11 Harvesting days/ha 15 15

Financial gross margins

Unit costs

1 Land preparation $/ha 42.00 42.00 42.00 42.00 42.00 42.00 42.00

2 Land levelling hand tractor $/ha 50.00 50.00 50.00 50.00

3 Seed financial price) $/kg 0.25 0.25 10.00 0.25 0.25 0.25 10

4 Seed retained 0.25 0.20

5 Urea-46% $/kg 0.37 0.37 0.37 0.37 0.37 0.37 0.37

6 DAP 18-46-0 $/kg 0.49 0.49 0.49 0.49 0.49 0.49 0.49

7 KCL (60%) $/kg 0.38 0.38 0.38 0.38 0.38 0.38 0.38

7 Compost/manure $/t 50.00 50

8 Pesticides $/L 25.00 25

9 Labor $/day 6.00 6

10 Harvesting cost $/ha/day 70.00 70.00 6.00 70.00 70.00 70.00 6

Crop financial gross margins for Kamping Pouy 2028

Budget per ha

Yield kg/ha 2,500 2,565 7,000 4,500 5,000 5,000 8,000

Paddy retained kg/ha 90 90

sold kg/ha 2,410 2,475 7,000 4,500 5,000 5,000 8,000

Price $/t 305 271 263 305 271 271 263

Output $/ha 762.39 694.69 1,837.88 1,372.30 1,354.18 1,354.18 2,100.44

Costs 1 Land preparation $/ha 84.00 84.00 84.00 42.00 42.00 42.00 42.00

2 Land levelling hand tractor $/ha 50.00 50.00 50.00 50.00

3 Seed $/ha 30.00 25.50 150.00 17.50 17.50 17.50 150.00

4 Urea-46% $/ha 61.11 37.07 40.74 37.07 37.07 37.07 40.74

5 DAP 18-46-0 $/ha 54.16 54.16 54.16 54.16 54.16 54.16 54.16

6 KCL (60%) $/ha 21.10 21.10 21.10 21.10 21.10 21.10 21.10

7 Compost/manure $/ha 350.00 350.00

8 Pesticides $/ha 50.00 100.00 125.00 55.00 50.00 100.00 125.00

9 Labor $/ha 120.00 120.00

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Without Project With Project

Unit

Wet Season

Traditional

Variety

Dry Season

Early

Variety

Upland

Crop

(Corn)

Wet

Season

Traditional

Variety

Wet

Season IRRI

Variety

Dry Season

Early (HYV)

Variety

Upland

Crop

(Corn)

10 Harvesting $/ha 70.00 70.00 120.00 70.00 70.00 70.00 120.00

11 Water service $/ha 10.00 10.00 20.00 20.00 20.00 20.00

12 Total cost per ha $/ha 370.37 401.83 1,075.00 366.83 361.83 411.83 1,093.00

13 Gross margin $/ha 392.02 292.86 762.88 1,005.47 992.34 942.34 1,007.44

DAP = di-ammonium phosphate, KCl = potassium chloride.

Note: Medium rice varieties are: Phka Rumduol, Raing Chey, Phka Khnhei, Mlis while Neang Khon is an example a late rice variety. In

the dry season farmers grow early varieties Sen Kraob and IR 504.

Source: Co sulta t’s esti ates.

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Table A3.5: Crop Economic Gross Margins, Kamping Pouy, 2028

Without Project With Project

Unit

Wet Season

Traditional

Variety

Dry Season

Early

Variety

Upland

Crop

(Corn)

Wet Season

Traditional

Variety

Wet Season

IRRI Variety

Dry

Season

Early

(HYV)

Variety

Upland

Crop

(Corn)

1 Land preparation $/ha 45.10 45.10 45.10 45.10 45.10 45.10 45.10 2 Seed $/kg 53.50 53.50 53.50 53.50

$/kg 0.80 0.80 10.00 0.80 0.80 0.80 10.00

4 Urea-46% $/kg 0.25 0.25 5 DAP 18-46-0 $/kg 0.37 0.37 0.37 0.37 0.37 0.37 0.37 6 KCL (60%) $/kg 0.49 0.49 0.49 0.49 0.49 0.49 0.49 7 Compost/manure $/t 0.38 0.38 0.38 0.38 0.38 0.38 0.38 8 Pesticides $/L 50.00 50.00 9 Labor $/day 25.00 25.00

10 Harvesting cost $/day 5.40 5.40 11 Water service $/ha 77.00 77.00 120.00 77.00 77.00 77.00 120.00 12 Water service $/ha 10.00 10.00 20.00 20.00 20.00 20.00

Budget per ha

Yield kg/ha 2,500 2,565 7,000 4,500 5,000 5,000 8,000

Paddy retained kg/ha 90 90

Crop sold kg/ha 2,410 2,475 7,000 4,500 5,000 5,000 8,000

Price $/t 304.96 270.84 262.55 304.96 270.84 270.84 262.55

Output $/ha 762.39 694.69 1837.88 1,372.30 1,354.18 1,354.18 2,100.44

Unit costs 1 Land preparation $/ha 381.80 81.80 81.80 40.90 40.90 40.90 40.90 2 Land levelling hand tractor $/ha 48.50 48.50 48.50 48.50 3 Seed $/ha 46.50 46.50 150.00 56.00 56.00 56.00 150.00 4 Urea-46% $/ha 55.55 33.70 37.04 33.70 33.70 33.70 37.04 5 DAP 18-46-0 $/ha 49.24 49.24 49.24 49.24 49.24 49.24 49.24 6 KCL (60%) $/ha 19.18 19.18 19.18 19.18 19.18 19.18 19.18 7 Compost/manure 350.00 350.00 8 Pesticides $/ha 45.45 90.91 113.64 50.00 45.45 90.91 125.00 9 Labor 27.00 108.00

10 Harvesting cost $/ha 77.00 77.00 108.00 77.00 77.00 77.00 108.00 11 Water service $/ha 10.00 10.00 20.00 20.00 20.00 20.00 10 Total cost per ha $/ha 374.72 408.33 945.89 394.52 389.97 435.43 1,055.85 11 Gross margin $/ha 387.66 286.36 891.99 977.78 964.20 918.75 1,044.58

DAP = di-ammonium phosphate, KCl = potassium chloride. Note: Medium rice varieties are: Phka Rumduol, Raing Chey, Phka Khnhei, Mlis while Neang Khon is an example a late rice variety. In the dry season farmers grow early varieties Sen Kraob and IR 504.

Source: Consultant’s estimates.

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Table A3.6: Example of an 8-year Projection Period for Traditional (Jasmine) Paddy

Without Project 2023 2024 2025 2026 2027 2028 2029 2030

Annual economic gross margins

Wet season traditional variety

Units/ha 1 Land preparation times 2 2 2 2 2 2 2 2

2 Land levelling by hand tractor times 3 Seed purchased kg/ha 30 30 30 30 30 30 30 30

Seed retained kg/ha 90 90 90 90 90 90 90 90

4 Harvesting times 5 Urea-46% kg 150 150 150 150 150 150 150 150

6 DAP 18-46-0 kg 100 100 100 100 100 100 100 100

7 KCL (60%) kg 50 50 50 50 50 50 50 50

8 Pesticides $/l 9 Water service $/ha

Unit costs 1 Land preparation $/ha 2 Land levelling by hand tractor $/ha 45.10 45.10 45.10 45.10 45.10 45.10 45.10 45.10

3 Seed $/kg

Seed retained 0.80 0.80 0.80 0.80 0.80 0.80 0.80 0.80

4 Harvesting cost $/ha 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25

5 Urea-46% $/kg 77.00 77.00 77.00 77.00 77.00 77.00 77.00 77.00

6 DAP 18-46-0 $/kg 0.36 0.36 0.36 0.37 0.37 0.37 0.37 0.37

7 KCL (60%) $/kg 0.48 0.49 0.49 0.49 0.49 0.49 0.49 0.49

8 Pesticides $/l 0.37 0.37 0.37 0.38 0.38 0.38 0.39 0.39

9 Water service $/ha

Budget per ha

Yield kg/ha 2500 2500 2500 2500 2500 2500 2500 2500

Paddy retained kg/ha 90 90 90 90 90 90 90 90

sold kg/ha 2410 2410 2410 2410 2410 2410 2410 2410

Price $/t 325 321 317 313 309 305 301 297

Output $/ha 813.37 803.30 793.58 782.79 772.40 762.39 752.73 743.42

Costs

1 Land preparation $/ha 81.80 81.80 81.80 81.80 81.80 81.80 81.80 81.80

2 Land levelling by hand tractor $/ha

3 Seed $/ha 46.50 46.50 46.50 46.50 46.50 46.50 46.50 46.50

4 Harvesting cost $/ha 77.00 77.00 77.00 77.00 77.00 77.00 77.00 77.00

5 Urea-46% $/ha 53.82 54.17 54.51 54.87 55.22 55.55 55.88 56.19

6 DAP 18-46-0 $/ha 48.44 48.63 48.82 48.96 49.10 49.24 49.36 49.49

7 KCL (60%) $/ha 18.26 18.41 18.61 18.81 19.00 19.18 19.36 19.53

8 Pesticides $/ha 45.45 45.45 45.45 45.45 45.45 45.45 45.45 45.45

9 Water service $/ha

10 Total cost per ha $/ha 371.27 371.97 372.69 373.39 374.07 374.72 375.36 375.96

11 Gross margin $/ha 442.10 431.33 420.89 409.40 398.33 387.66 377.38 367.45

12 Area ha 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000

13 Production t 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000

14 Revenue $'000 9,760 9,640 9,523 9,393 9,269 9,149 9,033 8,921

15 Costs $'000 4,611 4,619 4,628 4,636 4,644 4,652 4,660 4,667

16 Gross margin $'000 5,150 5,021 4,895 4,757 4,625 4,497 4,373 4,254

DAP = diammonium phosphate, KCl = potassium chloride. Source: Consultant’s estimates

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Table A3.7: Overall Summary of Changes in Annual Economic Gross Margins

Paddy Production (Excluding Corn) 2023 2024 2025 2026 2027 2028 2029 2030

Total production without project t 48,733 48,545 48,358 48,171 47,983 47,796 47,796 47,796

Total production with project t 50,814 62,357 71,660 82,968 94,894 105,638 105,638 105,638

Total production increase t 2,081 13,812 23,302 34,797 46,911 57,842 57,842 57,842

Change in economic margin Without project Value of paddy production without project $'000 15,276 15,036 14,803 14,552 14,309 14,075 13,898 13,729

Average value $/t 313 310 306 302 298 294 291 287

Costs without project $'000 7,324 7,336 7,349 7,361 7,373 7,385 7,396 7,406

Gross margin without project $'000 7,953 7,700 7,454 7,191 6936 6,691 6,503 6,322

With project Value of paddy production with project $'000 17,020 20,543 23,259 26,439 29,700 32,513 32,140 31,792

Average value $/t 335 329 325 319 313 308 304 301

Costs with project $'000 8,408 8,506 8,939 9,373 9,808 10,243 10,249 10,254

Gross margin with project $'000 8,612 12,037 14,320 17,066 19,892 22,270 21,891 21,538

Increase in value with project $'000 1,744 5,507 8,456 11,887 15,391 18,438 18,242 18,064

Increase in economic margin $'000 659 4,337 6,866 9,875 12,956 15,579 15,388 15,216

Source: Consultant’s estimates.

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Table A3.8: “With Project” Upland Crop Gross Margins, 2018

Unit

Mungbean

Watermelon

Corn

Sesame

Yield kg/ha 1,500 7,000 8,000 1,200

Price $/kg 0.8 0.35 0.26 1.3

Gross income $/ha 1,200 2,450 2,100 1,560

Units/numbers

1 Land preparation ha 2 1 2 2

2 Seed kg 20 2 15 8

3 DAP 18-46-0 kg 50 100 50

4 Fertilizer (15-15-15) kg 150 100

5 Urea (46%) kg 150 100 50 20

6 KCL kg 50

7 Compost/manure t 10 7 5

8 Organic fertilizer kg 100

9 Pesticides Liter 5 5 5

10 Planting labor days 4 15 20 2

11 Operating labor days 4 20 10

12 Harvesting labor days 10 15 20 10

13 Transport Truck hire 3 1

Unit costs

1 Land preparation $/ha 44.70 44.70 44.70 44.70

2 Seed $/kg 3.00 30.00 10.00 1.30

3 DAP 18-46-0 $/kg 0.37 0.37 0.37 0.37

4 Fertilizer (15-15-15) $/kg 0.49 0.49 0.49 0.49

5 Urea (46%) $/kg 0.38 0.38 0.38 0.38

6 KCL $/kg 0.55

7 Compost/manure $/t 50.00 50.00 50.00

8 Organic fertilizer $/kg 0.35

9 Pesticides $/L 10.00 25.00 10.00

10 Labor cost $/day 5.40 5.40 5.40 5.40

11 Transport $ 40.00 30.00

Cost/ha

1 Land preparation $/ha 89.40 44.70 89.40 89.40

2 Seed $/ha 60.00 60.00 150.00 10.40

3 Urea (46%) $/ha 55.55 37.04 37.04 7.41

4 DAP 18-46-0 $/ha 24.62 49.24 24.62

5 KCL $/ha 19.18 19.18

6 Fertilizer (15-15-15) $/ha 82.50

7 Compost/manure $/ha 500.00 350.00 250.00

8 Organic fertilizer $/ha 35.00

9 Pesticides $/ha 50.00 125.00 50.00

10 Planting labor $/ha 21.60 81.00 108.00 10.80

11 Operating labor $/ha 21.60 108.00 54.00

12 Harvesting labor $/ha 54.00 81.00 108.00 54.00

13 Transport $/ha 120.00 30.00

14 Water service $/ha 20.00 20.00 20.00 20.00

Total direct costs $/ha 454.65 1,095.54 1,055.85 635.62

Gross margin $/ha 745.35 1,354.46 1,044.58 924.38

DAP = diammonium phosphate, KCl = potassium chloride. Source: Consultant’s estimates

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Table A3.9: Kamping Pouy Economic Internal Rate of Return (EIRR)

Year Capital Cost O&M Gross Margin Cashflow

$’000 $’000 $’000 $’000

2020 1 7,798 -7,798

2021 2 12,997 -12,997

2022 3 5,199 -5,199

2023 4 723 659 -63

2024 5 723 4,337 3,614

2025 6 723 6,866 6,143

2026 7 723 9,875 9,153

2027 8 723 12,956 12,234

2028 9 723 15,579 14,857

2029 10 723 15,388 14,666

2030 11 723 15,216 14,493

2031 12 723 15,216 14,493

2032 13 2,890 15,216 12,326

2033 14 723 15,216 14,493

2034 15 723 15,216 14,493

2035 16 723 15,216 14,493

2036 17 723 15,216 14,493

2037 18 723 15,216 14,493

2038 19 723 15,216 14,493

2039 20 723 15,216 14,493

2040 21 723 15,216 14,493

2041 22 723 15,216 14,493

2042 23 2,890 15,216 12,326

2043 24 723 15,216 14,493

2044 25 723 15,216 14,493

EIRR = 24.1%

ENPV = $34 million