Learning Curves

August 2010

Evaluation

Independent

Transport Sector in Cambodia Focusing on Results

This sector assistance performance evaluation aims to provide an independent assessment of ADB assistance to the Cambodian transport sector during 19922008 and identify key areas for further improving the effectiveness of its operations. The reports findings will also be used as input to the broader country assistance program evaluation.

ambodia and its transport sector continue to face a number of complex and interconnected key development challenges, among them, (i) inadequate road and railway networks; (ii) insufficient maintenance of rehabilitated roads; (iii) deteriorating traffic safety; (iv) neglect of railway subsector; (v) absence of efficient urban transport; and (vi) inadequate transport logistics. Over the years, the Government strategy has been to restore, reconstruct, and modernize the countrys core transport system. ADBs assistance to the transport sector in Cambodia consisted of 29 projects amounting to $254 million from 1992-2008. In the latter period, ADB approved 7 loans amounting to $228 million, 4 grants financed by the Australian and Japanese governments and administered by ADB amounting to $15.9 million, and 18 technical assistance operations amounting to $10 million. The roads and highway subsector received the bulk of the assistance. Civil aviation and railways subsectors, multimodal transport and sector development, and regional Greater Mekong Subregion (GMS) project also received its share.

Summary of Findings

Quick Links
Transport Sector in Cambodia Focusing on Results www.adb.org/Documents/Reports/ SAPE/CAM/SAP-CAM-2009-34/ default.asp County Assistance Program Evaluation for Cambodia: Growth and Sector Reform www.adb.org/Documents/CAPES/ CAM/CAP-CAM-2009-33/default.asp ADB Management Response www.adb.org/Documents/Evaluation/ Management-Response/SAPE/MRSAP-CAM-2009-34.pdf Chairs Summary of the Development Effectiveness Committee (DEC) www.adb.org/BOD/dec/DECChairSum-26Oct2009.pdf

Overall, the performance of the Cambodia transport sector strategy is rated successful. The report finds that ADB contributed significantly to improvements in Cambodias transport sector. An assessment of the effectiveness of ADB programs in relation to the main envisaged outputs and outcomes from the 2008 Cambodia Country Operations Business Plan transport sector road map reveal the following progress: n Increased Transport Efficiency. Completed projects in the roads subsector have been successful in raising the general efficiency of the transport sector through reduced vehicle operating costs, shorter travel times, and achievement of robust economic rates of return. n Improved Sustainability of the Transport Sector. While progress has been made on the institutional front, the outcome is still evolving and will hinge on the successful implementation of the system. n Improved Rural Access. ADB has made modest progress in improving accessibility in four provinces in northwestern Cambodia by upgrading 50 bridges along two provincial roads and in one province in southeastern Cambodia through the rehabilitation of about 100 km of provincial roads. n Improved Traffic Safety. One advisory technical assistance (TA) initiated improvements in the regulatory and legislative environment for road safety. Road loans have also included design elements and other measures to minimize road traffic accidents on the respective project roads. However, little attention has been given to an important contributing factor: the inadequate enforcement of existing rules.

Key Issues

n The Subsectoral Focus of ADBs Transport Sector Strategies and Programs Needs to be Sharpened. Possible options include: shifting the focus in the roads subsector to rehabilitate the provincial road network; reviewing future strategy in the railway subsector; and considering shifting the focus toward areas where ADB could have a high impact, such as road traffic safety, urban transport, and transport service delivery. n Sector Road Map Needs Improvement. The transport sector road maps had two main drawbacks: (i) some of the indicators chosen were not sufficiently specific, and (ii) most of the indicators were not monitorable using the data sources available in Cambodia. To address the first issue, ADBs next strategy should formulate a comprehensive transport sector road map with more specific indicators. To address the monitoring issue, support for the collection of sector data should be considered. n Resettlement Management has been an Issue. Serious resettlement problems in the two completed road rehabilitation loans led to implementation delays. Both projects have undergone resettlement audits to investigate the complaints received. In light of ADBs significant ongoing and future transport sector investments, the resident missions capacity to supervise resettlement implementation should be reinforced.

Recommendations
n ADB should engage in further policy dialogue with the Government to expedite the issuance of the Transport Policy, which is expected to contribute to efficiency gains in sector institutions and foster more consistent policies that keep overall economic and social concerns in view. n ADB should continue to pursue private sector involvement in future transport infrastructure investments, including public private partnerships in focus areas. n TAs for capacity development and institutional strengthening should focus on a clear capacity development framework and a long-term perspective with proper sequencing and incentives for capacity retention.

Lessons
n

Cambodias Participation in GMS Initiatives has had a Beneficial Impact. A main feature of ADBs program of assistance in the transport sector has been its strong focus on regional/subregional initiatives. In the future, more synergies between the GMS Program and the national program need to be emphasized to multiply the benefits. Country Ownership and Political Will are Prerequisites for Progress on the Railway Subsector Reform Agenda. Policy and institutional reforms require strong political will and country ownership, and externally-driven initiatives are unlikely to succeed on their own. Advancing policy and institutional changes in the country requires champions and coherent support, as well as a realistic time schedule for achieving the desired reform. Improved Law Enforcement will Lead to Better Road Safety and Better Road Maintenance. The effectiveness of ADB assistance can be enhanced if it can build on a vigorous regime of law enforcement. The traffic safety situation in Cambodia demonstrates that ADB efforts remain isolated and less effective without proper law enforcement activities by the authorities. Lax enforcement of vehicle overloading rules is likewise an impediment to endeavors to improve road maintenance.

Feedback

ADB Management Response appreciates and agrees with the overall recommendations of the study. Management appreciates that the study provides constructive guidance for prioritizing, designing, and implementing ADBs future technical assistance and lending operations in the sector. The Development Effectiveness Committee (DEC) of the Board expressed satisfaction that ADB has made significant contribution to the development of the Cambodian economy during 1998 to 2008. DEC expressed the view that given the limitation of resources, expertise and for better effectiveness, ADB should focus on fewer subsectors, possibly those with good track record and prospect for supporting development priorities. This could be duly reflected in the Country Operations Business Plan and the Country Partnership Strategy. DEC also emphasized the importance of nurturing private sector-led growth and a sharper focus on maintenance of valuable assets built up with ADB assistance.

Team Leader: Marco Gatti Tel +63 2 632 5094 Email: mgatti@adb.org Contact Us Independent Evaluation Department Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Tel +63 2 632 4100 Fax + 63 2 636 2161 Email: evaluation@adb.org www.adb.org/evaluation

Learning Curves are handy, two-page quick reference designed to feed findings and recommendations from evaluations to a broader range of clients.