Cambodia : Climate Resilient Road Network Improvement Project (CRRNIP)

OBJECTIVE

To strengthen climate resilience, road safety, and transport connectivity within the Greater Mekong Subregion through the upgrading and construction of the Siem Reap Upper Ring Road

DESCRIPTION

The Project involves the new construction and upgrade of approximately 63km of the Siem Reap Upper Ring Road corridor in Siem Reap Province, as a priority climate adaptation investment within the Tonle Sap basin. The alignment extends from PK331 on NR6 in Puok District, northwest of Siem Reap City, to PK19+900 on NR64 in Soutr Nikom District, northeast of the city. Of the total length, approximately 38km comprises a new alignment traversing predominantly rural agricultural land, while the remaining approximately 25km between NR67 and NR64 consists of an existing, two-lane section, requiring rehabilitation and upgrading. It will strengthen the Greater Mekong Subregion (GMS) Southern Economic Corridor by providing an alternative northern route to NR6, diverting through-traffic and heavy vehicles away from urban and tourism areas (Angkor Archaeological Park (AAP)), reducing travel time and congestion, and improving connections with key strategic north-south national roads located east of the city.

The proposed project is aligned with government transport development priorities and contributes to broader efforts to enhance regional and cross-border connectivity across Cambodia and the GMS. The proposed section, to be co-financed by AIIB and the Asian Development Bank (ADB), represents a key link within the GMS Southern Economic Corridor and complements adjacent sections supported by the World Bank and the Japan International Cooperation Agency (JICA). Together, these complementary investments demonstrate effective multilateral collaboration in advancing regional transport integration, trade facilitation, and economic connectivity across the GMS.

ENVIRONMENTAL AND SOCIAL INFORMATION

Applicable Policy and Categorization. The Project will be co-financed with the Asian Development Bank (ADB) as lead co-financier. To provide a harmonized approach to addressing environmental and social (ES) risks and impacts, and as permitted under AIIB’s Environmental and Social Framework (ESF, 2024), ADB’s Environmental and Social Framework (ESF, 2024) will apply to the Project in lieu of AIIB’s ESF. AIIB has reviewed ADB’s ESF and confirmed that: (i) it is consistent with AIIB’s Articles of Agreement and materially consistent with the provisions of AIIB’s Environmental and Social Policy (ESP), including the Environmental and Social Exclusion List (ESEL) and relevant Environmental and Social Standards (ESSs); and (ii) the monitoring procedures in place are appropriate. ADB has categorized the Project as Substantial Risk, equivalent to Category A under AIIB’s ESF. The categorization reflects significant potential ES risks associated with upgrading and constructing approximately 63 kilometers of ring road across existing and greenfield alignments, land acquisition affecting a large number of households, operations within the broader Angkor archaeological landscape adjacent to the Angkor Protected Landscape and Phnom Kulen National Park, and construction health and safety risks.

Environmental and Social Instruments. The Ministry of Public Works and Transport (MPWT), through Project Management Unit 3 (PMU3), and the General Department of Resettlement (GDR/MEF) have prepared an Environmental and Social Impact Assessment (ESIA) and an Environmental and Social Management Plan (ESMP) in compliance with national regulations and ADB’s ESF. Associated instruments have also been prepared to manage the identified ES risks and impacts of the Project, including an Environmental and Social Commitment Plan (ESCP), Cultural Heritage Management Plan (CHMP), Tree Management Plan (TMP), Labor Management Plan (LMP), Stakeholder Engagement Plan (SEP), Land Acquisition and Resettlement Planning Framework (LARPF), and Gender Action Plan (GAP). A detailed Resettlement Plan (RP) will be prepared for the Project, and compensation payments will be provided for affected households.

Environment Aspects. The Project upgrades and climate-proofs approximately 63 km of the Siem Reap Upper Ring Road corridor across existing road footprints and new bypasses in the broader Angkor region, traversing modified agricultural land and settlement ribbons. Key construction risks include dust, noise, vibration from heavy machinery, erosion and sedimentation into watercourses (Siem Reap River, Preah Ang Trong Canal, APSARA Canal), hazardous wastes, and traffic congestion. These will be mitigated through contractor site-specific ESMPs (C-ESMPs) incorporating dust suppression, silt traps, designated spoil/borrow controls, and traffic management. Botanical surveys identified 22 trees within the corridor belonging to species classified as Endangered and Vulnerable on the IUCN Red List. A total of 19 archaeological and cultural heritage sites were identified along the alignment. Mitigation measures have been developed and included in the TMP, CHMP, and Chance Find Procedures. During operations, increased traffic volumes along the corridor may result in localized increases in vehicle emissions, traffic noise and stormwater runoff. Traffic forecasts indicate that noise levels may increase by more than baseline conditions in some populated sections of the corridor by 2048. Runoff may contain sediments, oils, grease, and other vehicle-related pollutants that could affect nearby drainage channels and watercourses, if not properly managed. Accidental spills may also pose localized contamination risks. These impacts will be mitigated through routine road maintenance, road safety measures, speed tables near schools, tree buffers, drainage and stormwater management systems, emergency response procedures, and strict implementation of the ESMP.

Social and Gender Aspects. The Project delivers transformational benefits across 12 communes in Puok, Angkor Thom, Banteay Srey, and Soutr Nikom districts, directly benefiting 14,896 households (76,791 persons). However, civil works will cause economic displacement through the acquisition of 901 land parcels covering approximately 698,000 square meters (m²), predominantly agricultural land (93.12%), while residential acquisition is limited to 15 parcels (13,000 m²) affecting front setbacks and fencing. In total, 1,008 households will experience partial asset loss. A total of 133 secondary structures is impacted, and 2,380 fruit and timber trees will be cleared. There are no affected households who will be physically displaced from residential homesteads. A Land Acquisition and Resettlement Planning Framework (LARPF) has been prepared following ADB ESS 5 and RGC Standard Operating Procedures (SOP 2018), mandating independent replacement cost valuation, meaningful consultations, livelihood restoration for affected households, and an independent External Monitoring Organization (EMO). The conducted ESIA confirms that no indigenous peoples or ethnic minority communities reside in or have cultural attachments to the project area; therefore, ADB ESS 7 and AIIB ESS 3 do not apply. The Project is categorized as Effective Gender Mainstreaming (EGM) under ADB policy. A Gender Action Plan (GAP) establishes targets for women's employment during construction, and strict Worker Codes of Conduct with confidential reporting for Gender-Based Violence and Sexual Exploitation, Abuse, and Harassment linked to the Cambodian Women's Crisis Centre (CWCC) and Ministry of Women's Affairs (MoWA).

Occupational Health and Safety (OHS), Labor and Employment Conditions. Construction will mobilize a peak workforce of approximately 600 personnel, involving heavy machinery, asphalt batching, hot bitumen, deep excavation, traffic hazards, and worker exposure to dust, noise, vibration, and extreme ambient temperatures. Heat stress is a material occupational hazard. Community and worker health and safety risks, including unexploded ordnance (UXO), will be addressed through robust OHS protocols in contractor OHS Plans and ESMPs compliant with Good International Industry Practice (GIIP). Measures include certified PPE, heat stress management (shaded rest stations, hydration breaks, work rescheduling during peak heat), emergency response plans, traffic safety signage, site first-aid stations, and mandatory UXO clearance certification across all footprints prior to groundbreaking. Labor risks will be managed through the LMP, each contractor will be required to establish a separate, accessible worker grievance mechanism.

Stakeholder Engagement, Consultation and Information Disclosure. Meaningful stakeholder consultation has been conducted since project formulation. Public consultation meetings were organized between May and July 2026 across all 12 affected communes alongside key informant interviews with provincial and district officials. Stakeholders expressed overwhelming support for the Project, emphasizing travel time savings, reduced vehicle maintenance costs, dust reduction, and improved access to markets and clinics. A SEP has been prepared following ADB ESS 10 to guide consultation and disclosure throughout the project life cycle. Project Information Booklets in Khmer have been distributed to local communities. In line with AIIB policies applicable to Category A, draft ES instruments and documents (ESIA, ESMPs, LARPF, CHMP, TMP, LMP, SEP, GAP) in English have been disclosed on ADB’s website[1] and will be disclosed on AIIB’s website, with continuous disclosure during implementation. The final RP will be disclosed on ADB and AIIB websites in March 2027.

Project Grievance Redress Mechanism (GRM). A multi-tier GRM will be operationalized at the project level prior to construction to receive and resolve community grievances in an accessible, transparent, culturally appropriate, and gender-sensitive manner without cost or fear of retaliation. Separately, a dedicated land acquisition and resettlement GRM will be operated by the Provincial Resettlement Sub-Committee Working Group (PRSC-WG) and GDR/MEF in accordance with RGC SOP (2018) and announced in village meetings before the detailed measurement survey of losses (DMS). Additionally, a separate workplace GRM will also be established by each contractor for workers, with confidential, survivor-centered channels managed by female focal points and referred directly to the CWCC and MoWA for any allegations of sexual exploitation, abuse, and harassment. Information on the GRMs will be disclosed in an appropriate manner, such as publicly displayed on site signboards and in project brochures.

Monitoring and Reporting Arrangement. The MPWT, through PMU3, will take overall responsibility for managing, monitoring, and evaluating ES risks and impacts. PMU3 will prepare semi-annual ES monitoring reports and submit to ADB and AIIB for review. In addition, an independent External Monitoring Organization (EMO) will be engaged by GDR to conduct biannual independent monitoring and post-resettlement evaluation of LARP implementation. ADB will lead regular supervision field missions, and AIIB will participate in joint field review missions at least twice annually during the implementation of ES instruments.

[1] Relevant disclosed documents on the ADB website are as follows: (i) Draft ESIA; (ii) Draft ESMP; (iii) LMP; (iv) SEP; (v) Draft CHMP; and (vi) LAF.