Document of The World Bank Report No: 73141-KH RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT (LASED) PROJECT CREDIT NUMBER 44410-KH AND GRANT NUMBER H3860-KH (BOARD APPROVAL DATE: May 20, 2008) TO THE KINGDOM OF CAMBODIA October 4, 2012 ABBREVIATIONS AND ACRONYMS AWPB Annual Work Plan and Budget GSSLC General Secretariat for Social Land Concession DWGs District Working Groups LASED Land Allocation for Social and Economic Development MEF Ministry of Economy and Finance NCDD National Committee for Sub-National Democratic Development NGO Non-Governmental Organization PDO Project Development Objective PLUAC Provincial Land Use and Allocation Committee SLC Social Land Concession Regional Vice President: Pamela Cox, EAPVP Country Director: Annette Dixon, EACTF Country Manager: Alassane Sow, EACSF Sector Manager: Julia Fraser, EASTS Task Team Leader: Mudita Chamroeun, EASTS 2 CAMBODIA LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT (LASED) PROJECT CONTENTS Page A. SUMMARY .......................................................................................................................... 5 B. PROJECT STATUS ............................................................................................................. 5 C. PROPOSED CHANGES ..................................................................................................... 5 ANNEX 1: RESULT FRAMEWORK AND MONITORING ................................................... 7 3 CAMBODIA - LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT (LASED) PROJECT P084787 CREDIT NUMBER 44410-KH AND GRANT NUMBER H3860-KH RESTRUCTURING PAPER A. SUMMARY 1. The proposed changes in the results framework and monitoring arrangements for the Cambodia: Land Allocation for Social and Economic Development (LASED) Project, (Credit No. 44410-KH and Grant No. H3860-KH), P084787 are necessary due to the reasons provided below. B. PROJECT STATUS 2. The project development objective (PDO) is to improve the identification and use of state lands transferred to eligible, poor and formerly landless or land-poor recipients through a transparent and well-targeted process. The project continues to have good progress towards achieving the PDO which remains relevant in line with the Government’s Sub-decree No. 19 on Social Land Concession Program. Progress towards achieving the PDO is therefore rated as satisfactory, and implementation progress is also satisfactory. Current disbursements stand at USD 6,364,314 or 55.34% for both financing sources (as of September 30, 2012). 3. The good implementation of project activities has led to the attainment of the following PDO indicators: (a) all the land recipients (50% vs. Year 4 target of 50%) who have settled in the six sites are adopting improved soil management and agricultural production systems; (b) all the land recipients (100% vs. Year 4 target of 90%) in the six project sites were selected based on the agreed land recipients’ selection criteria as per the Project Implementation Manual (PIM); and (c) a total of 511 complaints since project commencement were received by the Commune Councils through the official complaint handling mechanisms. The cumulative number of complaints received to date is 11% of the total applications processed (4,722). All (100% vs. Year 4 target of 70%) the decisions have been discussed and/or relayed to all complainants based on the adoption of dispute resolution mechanism, and all of them have accepted the committee’s decision. The people seem to know where or who to report to when they have concerns, issues or complaints. They seem confident that their concerns will be discussed and feedback will be provided. Wathnakpheap, an NGO financed under the Japan Social Development Fund (JSDF), continued their great role in the dissemination of the dispute resolution process and in providing assistance to the complainants in the preparation of documents, as well as in lodging and follow-up of complaints. 4. Eight of the 12 intermediate results indicators have been achieved to date. These include: (a) 100% provision of settling in support to all eligible households of land recipients; (b) documentation of the testing and establishment of LASED-Social Land Concession (SLC) sites and updating guidelines based on actual experiences; (c) broad knowledge of LASED- supported SLC approach, procedures and experiences among the Royal Government of Cambodia (RGC), local authorities, civil society organizations and donors; (d) women’s participation in training/workshops (50.54%) and as SLC applicants (36.58% or 836 land recipients are female-headed households); (e) 100% of the recipients of the Priority Operation Cost (POC) assessed as effectively carrying out LASED responsibilities; (f) procurement 4 activities implemented according to the guidelines; (g) financial audit’s confirmation that project implementation is consistent with agreed procedures; and (h) timely report preparation to the Government and the Bank. 5. However, some improvement is expected that the remaining targets on “LASED-SLC land area� (91% accomplishment) and “number of land recipients� (76% accomplishment) will be fully achieved by end 2012 within the proposed seven communes. The indicator on the “number of communes� is being addressed through this proposed restructuring wherein the number of communes will be decreased from 20 to seven1 given that the project-covered communes are significantly bigger than what was envisioned during project design, and thus project resources would not be sufficient to cover beyond the seven sites. The biggest challenge to date is the indicator on the “provision of public infrastructure and other services� which is reported at almost 45% (vs. the Year 4 target of 80%). Close follow up and monitoring are being done by the project aimed at fastracking the completion of these investments within the project implementation period. 6. Financial management continues to work well; adequate internal controls are in place as well as the computerized accounting system to facilitate the recording and reporting at both national and provincial levels. The latest audit opinion on the project Financial Statements was unqualified (clean) and no significant internal control weaknesses were reported in the management letters issued by the auditor. The Annual Work Plan and Budget (AWPB) and Procurement Plan are also noted to be more realistic and compliance, given the improved dialogue and planning undertaken between the two implementing agencies - the General Secretariat for Social Land Concession (GSSLC) and National Committee for Sub-National Democratic Development (NCDDS). C. PROPOSED CHANGES 7. Results/Indicators. A change to the following intermediate results indicators is proposed: (a) The first results indicator under Component A “Commune-Based Social Land Concession (SLC) Planning and Land Allocation�, which specifies that, “20 communes submit approved Social Land Concession (LASED-SLC) plans� will be modified to seven communes. As mentioned in paragraph 5 above, the target cannot be achieved as the seven communes already covered by the project happened to be much bigger than originally expected in terms of area covered (10,609 hectares vs. the originally estimated 10,000 hectares for the 20 communes), as well as the number of land recipients (3,154 vs. the originally estimated 3,000 for the 20 communes). It is recognized that when the project was designed, the assumption was that LASED-SLC sites would be of smaller area and coverage. As the project resources can only cover the existing seven communes, the Government has now proposed that this indicator be revised to “seven (7) communes submit approved LASED-SLC plans�. (b) Transfer of the indicator on “women’s participation in training� from Component C “Sustainable and Transparent SLC Program Development� to Component B “Rural Development Services and Investment� as this indicator is more relevant to activities undertaken under Component B. 1 As of the October 2011 MTR Mission, there were around 25 communes that have submitted their proposal for SLC processing. However, the Bank Task Team recommended limiting to seven communes due to limited time and budget. 5 ANNEX 1: Results Framework and Monitoring CAMBODIA: LAND ALLOCATION FOR SOCIAL AND ECONOMIC DEVELOPMENT PROJECT Project Development Objective (PDO): The project’s overall development objective is to improve the identification and use of state lands transferred to eligible, poor and formerly landless or land-poor recipients through a transparent and well-targeted process. Revised Project Development Objective: No change D=Dropped Cumulative Target Values C=Continue Responsibility Core PDO level results N= New Unit of Data Source/ Baseline Frequency for Data Indicators R=Revised Measure YR1 YR2 YR3 YR4 YR5 Methodology Collection Primary Indicators One: Annual reports of PLUAC reports At least 60 percent of land NCSLC and and results of GSSLC through recipients adopt improved C Text 0 30 30 40 50 60 NCDD on overall annual PLUAC soil management and SLC status in stakeholder Secretariats agricultural production Cambodia workshops systems. Primary Indicators Two: Annual reports of PLUAC reports At least 90 percent of land NCSLC and and results of GSSLC through recipients selected C Text 0 80 90 90 90 90 NCDD on overall annual PLUAC matched the selection SLC status in stakeholder Secretariats criteria agreed for those Cambodia workshops specific SLCs. Primary Indicators Three: At least 70 percent of PLUAC reports NCSLC and challenges to land and results of GSSLC through NCDD on overall recipient selection were C Text 0 50 60 70 70 70 annual PLUAC SLC status in reviewed and decision stakeholder Secretariats Cambodia taken through the program workshops dispute resolution mechanism. INTERMEDIATE RESULTS Intermediate Result (Component A): Commune-based social land concession planning and land allocation: 20 communes submit approved SLC plans. Revised Intermediate Result (Component A): Commune-based social land concession planning and land allocation: 7 communes submit approved SLC plans. Intermediate Result indicator One: Quarterly and Regular annual progress 7 communes submit R % 0 3 4 5 7 7 DWGs implementation reporting against approved SLC (target) reports AWPB Plans Intermediate Result indicator Two: Quarterly and Regular Approximately 10,000 annual progress hectares of appropriate C % 0 2000 8000 10000 10000 10000 DWGs implementation reporting against state land is registered as reports AWPB state private land for SLCs under LASED. Intermediate Result indicator Three: Quarterly and Regular annual progress At least 3000 eligible C % 0 400 2000 2000 3000 3000 DWGs implementation reporting against families receive SLCs reports AWPB under LASED. 7 Intermediate Result (Component B): Commune-led integrated rural development supported Revised Intermediate Result (Component B): N/A; indicator “Women’s participation in training, workshops and as applicants (head of household or cosignatory)� moved from component C Intermediate Result Annual Field surveys PLUAC indicator One: implementation Secretariats reports and PRDC Ex- 100 percent eligible C % 0 100 100 100 Coms households receive appropriate private settling in support as agreed in SLC plan. Intermediate Result Annual Field surveys PLUAC indicator Two: implementation Secretariats reports and PRDC Ex- 80 percent of public C % 0 60 60 80 80 Coms infrastructure and other services provided as elaborated in SLC plan. Intermediate Result Quarterly and Reports of GSSLC and indicator Three: annual PLUAC NCDD implementation technical Women’s participation in N Number 30 40 60 60 60 60 reports secretariat on training, workshops and (Moved specific pilots as applicants (head of from and field visits household or cosignatory) component and reports of C) GSSLC and NCDD 8 Intermediate Result (Component C): SLC related institutions enable to fulfill their roles and responsibilities. Revised Intermediate Result (Component C): N/A, but indicator “Women’s participation in training, workshops and as applicants (head of household or cosignatory)� moved to component B Intermediate Result Annual Reports of GSSLC indicator One: implementation PLUAC MEF (MBPI) reports technical SLCs based on land from C Number 0 3 3 3 secretariat on at least three sources initiated Annual specific pilots (canceled economic land communications and field visits concessions, report and reports of recovered illegally GSSLC occupied lands, Annual MBPI and degraded forest lands) Evaluations Stakeholder tested, experiences survey documented and guidelines updated. MBPI special audit Intermediate Result Annual Reports of GSSLC indicator Two: implementation PLUAC MEF (MBPI) reports technical Broad knowledge of C % Limited Pilot All Nation Annual secretariat on LASED supported to pilot pro pro al communications specific pilots SLC approach, procedures areas vin vinces report and field visits and experiences ces Annual MBPI and reports of amongst RGC, local Evaluations GSSLC authorities, civil society organizations and donors. Stakeholder survey MBPI special audit. Intermediate Result Quarterly and Reports of GSSLC and indicator Three: annual PLUAC NCDD implementation technical Women’s participation in D Number 30 40 60 60 60 60 reports secretariat on training, workshops and (moved to specific pilots as applicants (head of component and field visits household or cosignatory) B) and reports of GSSLC and NCDD 9 Intermediate Result Annual Reports of GSSLC indicator Four: implementation PLUAC MEF (MBPI) reports technical 90 percent of MBPI/POC2 C % 0 70 80 90 90 90 secretariat on recipients assessed as Annual specific pilots effectively carrying out communications and field visits LASED responsibilities report and reports of GSSLC Annual MBPI Evaluations Stakeholder survey MBPI special audit Intermediate Result (Component D): Effective project administration. Revised Intermediate Result (Component C): N/A Intermediate Result Annual Technical field NCDD indicator One: implementation audit Secretariat reports 100 percent of C % 0 80 80 90 100 100 procurement activities Annual audit Financial audit implemented consistent with guidelines. Bank supervision Bank reports. supervision Intermediate Result Annual Technical field NCDD indicator Two: implementation audit Secretariat reports Financial audit confirms C 0 Y Y Y Y Y Financial audit implementation consistent Annual audit with agreed procedures. Bank supervision Bank Reports. supervision Intermediate Result Annual Technical field NCDD indicator Three: implementation audit Secretariat reports Reporting to NCSLC and C % 0 50 75 100 100 100 Financial audit Bank on-time Annual audit Bank Bank supervision supervision Reports. 2 The reallocation from MBPI to the new category for POC as proposed in the POC’s restructuring paper dated December 16, 2010 10