Cambodia: Rural Infrastructure and Sustainable Investment for Growth (RISING) Project

OBJECTIVE

The Project Development Objective is to improve connectivity within and between rural communities across seven targeted provinces by enhancing rural infrastructure and strengthening their resilience.

DESCRIPTION

To meet the project objective, the Project will focus on upgrading and climate-proofing rural infrastructure, which includes 477 kilometers (km) of rural roads, irrigation systems (serving high value crops covering an area of 10,000 hectares (ha)), and community facilities, to enhance connectivity and access to both markets and public services. It will support smallholder farmers, particularly women, through improved access to agricultural inputs, technology, and extension services including the promotion of climate-smart and nature-positive farming practices.

The proposed Project is one of the priority projects in the Cambodia and AIIB Country Cooperation Framework (CCF) (2026-2028).

ENVIRONMENTAL AND SOCIAL INFORMATION

Environmental and Social Policy and Categorization. The Bank’s Environmental and Social Policy (ESP), including the Environmental and Social Standards (ESSs) and the Environmental and Social Exclusion List (ESEL), applies to the Project. ESS1 (Environmental and Social Assessment and Management) and ESS2 (Land Acquisition and Involuntary Resettlement) are triggered, as the community-driven development (CDD) nature of the Project may result in minor impacts related to environmental and social (ES) risks and impacts, including land acquisition and economic displacement. ESS3: Indigenous Peoples (IP) is also triggered, as the Project coverage includes provinces where Indigenous Peoples are present. The Project is proposed as ES Category B, which reflects the nature and scale of subproject investments, small-scale commune/rural roads, irrigation, and commune facilities, whose potential adverse impacts are site-specific, non-cumulative, largely reversible, which can be reliably managed by incorporating ES considerations in engineering design and application of appropriate mitigation measures and good international industry practice.

Environmental and Social Instruments. A framework approach is applied, given that subproject sites and the detailed design of subprojects have not been defined during project preparation. An Environmental and Social Management Planning Framework (ESMPF), comprising a Resettlement Planning Framework (RPF), an Indigenous Peoples Planning Framework (IPPF), a Stakeholder Engagement Plan (SEP), and a Gender Action Plan (GAP) is being prepared. During implementation, these frameworks will guide subproject-level screening and the preparation of site-specific ES instruments as impacts are identified. The ESMPF will include a screening process to exclude financing of Category A subprojects with significant adverse ES risks and impacts. Generic templates for Environmental and Social Management Plans (ESMPs) and ES Codes of Practice (ESCoPs) based on different subproject typologies will be applied for Category B and Category C subprojects respectively. All subproject-level ES instruments will be prepared and made acceptable to AIIB and disclosed by contract award. No civil work will commence prior to finalization and disclosure of the relevant ES instruments.

Environmental and Social Aspects.  The environmental risks and impacts are expected to be low to moderate, site-specific, temporary, and mostly related to construction and agricultural activities, including dust, noise, erosion, drainage disruption, waste and wastewater, traffic and safety risks, impacts from material sourcing and vegetation clearance, and pollution of land and water from poorly managed construction activities, agricultural waste, fertilizers, pesticides, and runoff. These risks and impacts are expected to be manageable by applying the mitigation measures outlined in the ESMP or ESCoP templates. Potential adverse social risks and impacts are expected to be limited due to the Project’s nature and small subprojects. Risks and impacts may include minor land acquisition or economic displacement, although works will be confined to existing road rights-of-way and subprojects with impacts on Indigenous Peoples or significant resettlement will be excluded. The RPF and IPPF will guide land acquisition mitigation, and the IPPF will guide consultation with IPs, where required. Other minor risks related to labor, working conditions, labor influx, and community health and safety will be managed through the ESMPF, ESMP, and ESCoP. A gender assessment will inform a Gender Action Plan (GAP) to expand women’s benefits and mitigate risks.

Occupational Health and Safety (OHS), Labor and Employment Conditions. The Project is expected to involve low to moderate OHS risks, primarily associated with the construction and rehabilitation of rural roads, irrigation systems, and commune-managed facilities, as well as small-scale agricultural activities. These risks are expected to be largely site-specific and manageable through the application of appropriate OHS, labor, and emergency preparedness measures. The ESMPF will assess applicable national OHS and labor requirements and identify any gap-filling measures needed to meet AIIB ESS requirements. The ESMP and ESCoP will outline provisions for workers’ safety training and induction, first aid, appropriate use of Personal Protective Equipment (PPE), and safe management of hazardous substances. In addition, requirements on labor management related to fair and non-discriminatory recruitment and employment practices, age verification, and access to a grievance mechanism for project workers will also be incorporated into the ESMP and ESCoP. Adhering to OHS measures including PPE, and requirements related to Sexual Exploitation, Abuse, and Harassment (SEAH), will be included in a workers' code of conduct.

Stakeholder Engagement, Consultation and Information Disclosure. Stakeholder engagement will be undertaken as part of Project preparation and will continue through implementation. The process identifies relevant stakeholders, including project-affected persons (PAP), commune and district authorities, farmer and community groups, indigenous communities where present, contractors, and other interested parties, and outlines a strategy for engaging and consulting with them in an inclusive and culturally appropriate manner. Consultations conducted during preparation will inform subproject design and the subproject selection process. Engagement will continue under the SEP throughout preparation and implementation. During implementation, regular consultations and accessible communication channels, including local-language materials and community-level disclosure points, will be used to support transparency and trust. Draft ES instruments will be disclosed in English, with a summary in Khmer, on the Borrower's website and AIIB's website, in accordance with AIIB's ESP.

Project Grievance Redress Mechanism (GRM) and Monitoring Arrangement. A project-level GRM will be built on National Committee for Sub-National Democratic Development Secretariat (NCDDS) and General Department of Resettlement (GDR) arrangements to resolve community grievances at commune, district, and provincial levels. Accessible in-person, written, and telephone channels will be available to all, including women and vulnerable groups. GDR will separately manage land acquisition and compensation grievances. Grievance trends will be reviewed and reported through semi-annual ES monitoring reports to inform implementation. The information about the GRM and Bank’s Project-affected People’s Mechanism (PPM) will be disclosed in a timely and appropriate manner. In addition, the Project team will conduct site visits to selected pilot subprojects in Cambodia to monitor implementation of ES instruments during project implementation. More details about the monitoring and reporting arrangement will be determined with the Borrower during ESDD and project appraisal.