1. Progress of Environment Safeguards ADB Loan No. 2373-CAM(SF) / AusAID Grant No.0096-CAM 23 April 2012 GMS-SCCP

2. MPWT/PMU3 Mr. Chhin Kong Hean Project Coordinator Mr. Pheng Sovicheano Project Director Mr. Sar Vutha Project Manger Egis International CS Consultant Mr. Andre Drockur Project Manager Mr. Khagnh Sitnarit Highway Engineer/NTL Lim Sarin & SWEE JV CW1 Contractor Mr. Ung Kotaro Project Manager CDOH (SP) Mr. Bun Meng Communication Specialist Kuy Leang Ky CW2 Contractor Mr. Khoun Chamroeun Project Manager

3. Table of Content 1.Project Location MapProject Location Map 2.Mobilization of IE Specialist during the Construction Supervision PhaseMobilization of IE Specialist during the Construction Supervision Phase 3.All Deliverable Reports Related to Environment ProgressAll Deliverable Reports Related to Environment Progress 4.Construction Supervision PhaseConstruction Supervision Phase 4.1 Conclusions and Recommendations from the 1 st Report 4.1.1 Conclusions 4.1.2 Recommendations 4.2 Conclusions and Recommendations from the 2 nd Report 4.2.1 Conclusions 4.2.2 Recommendations 5. Recommendations and Status of Environmental Compliance Table

4. 1. Project Location Map

5. 2. Mobilization of IE Specialist during the Construction Supervision Phase  1 st mobilization from 31 July 2011 to 11 August 2011  2 nd mobilization from 16 October 2011 to 21 October 2011  Next mobilization is scheduled for the 3 rd quarter 2012 to be able to check the environmental compliance for all Civil Works Projects including NR33 from Kampong Trach to Preak Chak, CBF Lork-Kampot, and NR3 from Kampot to Veal Rinh.

6. 3. All Deliverable Reports Related to Environment Progress  Detailed Engineering Design Phase 1.Initial Environmental Examination (IEE) for Koh Kong CBF 2.EMP, EMOP for NR33 Section Upgrading 3.IEE for NR33 and Lork CBF  Construction Supervision Phase 1. Environmental Compliance Report for NR33 2.QPR No. 1 Environmental Compliance Report for NR33 These reports are available for download from the following website http://www.mpwt.gov.kh/externalfund/sccp.http://www.mpwt.gov.kh/externalfund/sccp

7. 4. Construction Supervision Phase 4.1 Conclusions and Recommendations from the 1 st Report Based on the 1 st Environmental Compliance Report for NR 33, August 2011, the following conclusions and recommendations was reported: 4.1.1 Conclusions Activities on the improvement of NR 33 are on its initial stage. As stated, the Contractor started to familiarize themselves with environmental requirements, particularly on the implementation of the Environmental Management Plan and the Environmental Monitoring Plan enclosed in the Contract Document. Monthly reports will be submitted by the contractor to the PMU3 and CSC regarding the result of their self-monitoring activities on the environmental and social aspects of the project (Clause 1.10.2.9 of the Contract Document). In addition to the EMP and EMOP, Initial findings are reflected in this Environmental Compliance Report which will be relayed to the contractor for them to give attention on its compliance.

8. 4. Construction Supervision Phase 4.1.2 Recommendations The contractor should start the implementation of the Environmental Management Plan and the Environmental Monitoring Plan at this early stage of the project. Should there be problems encountered in its implementation, the contractor can discuss it during Coordination Meetings with the presence of PMU3 and the CSC for proper guidance. Monthly reports with proper documentation should be submitted to the PMU3 and CSC.

9. 4. Construction Supervision Phase 4.2 Conclusions and Recommendations from the 2 nd Report Based on the Quarterly Progress Report No. 1, Environmental Compliance Report for NR33, October 2011, the following conclusions and recommendations was reported: 4.2.1 Conclusions Positive and negatives impacts were observed at this stage which is inherent to infrastructure projects. With the on-going road maintenance being undertaken, significant benefits are already realized particularly in terms of travel time when traversing NR 33. This has been reduced from an average of 80 minutes to 25 minutes. Associated positive impacts that were enhanced are reduced fuel and maintenance cost of vehicles, reduced emissions, public safety as potholes have been minimized, generation of employment and increased economic activity.

10. 4. Construction Supervision Phase 4.2.1 Conclusions (continue) Negative impacts like dust, noise, muddy road, silt-laden run off, wastes and those due to borrow pit operation are manageable by continuous implementation of the EMP and recommendations provided below. 4.1.2 Recommendations The recommendations are provided in the below table for compliance by both Contractors of NR33&CBF and other concerned parties. Contractors submitted the Environmental Compliance Statements along with their Monthly Progress Report each every month to CSC for review and recommendation. And the status of compliance and action taken by Contractors under the supervision of CSC are given in the following table:

11. 5. Recommendations and Status of Environmental Compliance Table No. Recommendations for compliance by the Contractor NR33 - CW1CBF - CW2 CSC and Employer Instructions 1 Dust is an issue. The Contractor should perform more watering of dry expose spaces where vehicles pass by and should observe cleanliness in the construction area. Partly complied, 2 water trucks was used for watering the road only twice a day and not on the full length Complied, not really a critical issue, anyway Contractor has to water the road for the proper compaction purpose CSC instructed the NR33 to water the road at least 3 times a day on the full length 2 Noise barriers should be installed particularly on sensitive areas like schools and health centers. Construction activities should be scheduled on daytime and equipment should be maintained regularly. - Partly complied, no any barriers was installed due to the reason that each sensitive areas have the surrounding fence already - Complied, all construction activities are carried out during day time only (from 7 am to 6pm only) - Partly complied, the CBF itself has the perimeter security fences and 52% completed - Complied, all construction activities are carried out during day time only (from 7 am to 6pm only) CSC instructed to NR33 Contractor to install barriers at the most sensitive areas where the barriers are required 3 Contractor should regularly monitor and manage the flow of traffic in NR 33 including the entry and exit points. Mostly complied, maintained safe traffic operation and construction of detour roads with safety signs and signal were carried out. Mostly complied, this project occupied only ~150m of NR33 (traffic at the border area goes smoothly without any interruptions) CSC is closely monitored on this subject and alarm the Contractor immediately if there are any blockage of the traffic due to the construction 4 Construction materials should be properly handled and stored in suitable locations. Complied, - all excessive/unsuitable construction materials was stored at the disposal area, - materials were spreaded, compacted and graded immediately after haulage Complied, non of construction materials were stored on the road CSC and PMU3 counterpart are closely monitored on this subject (Contractor NR33 was instructed to remove all the excessive materials from the villagers rice field or access to villagers house)

12. No. Recommendations for compliance by the Contractor NR33 - CW1CBF - CW2 CSC and Employer Instructions 5 The Contractor should coordinate with the local authorities (e.g. Commune Council Member, Chief of Police, District Environmental Office and Village Chief) to advice village people to properly secure cut trunks which can still be converted into wood products, branches of cut trees as firewood and leaves as compost or be disposed in a designated area. Complied, Contractor maintain a very good cooperation with the local authorities CSC and PMU3 counterpart also play a major role in dealing with all relevant authorities. (so far no major complaints from the local authorities and villagers) 6 Used oil, busted bulbs, paint containers and other toxic materials should be stored in covered containers and be placed in secured area. The Contractor should coordinate with the Ministry of Environment regarding its disposal. Complied, Contractor takes very good care on this issue CSC work closely with the Contractor on this issue 7 Sediment/silt traps should be installed where rain water may disturb excavated soils. Complied, Contractor takes very good care on this issue CSC work closely with the Contractor on this issue 8 As observed, excavated areas for borrow pit and access road are not maintained or restored. Unsuitable quarried materials are not properly disposed or not been returned where it was excavated. The Contractor should undertake the necessary measures to address the problem. Partly complied, Contractor attend to this issue when there is any complaints from the local authorities, Contractor has to maintain the access road to their pits for their own smooth transportation purpose also CSC and PMU3 counterpart also play a major role in dealing with all relevant authorities with regards to this issue if there is any. 5. Recommendations and Status of Environmental Compliance Table (continue)

13. No. Recommendations for compliance by the Contractor NR33 - CW1CBF - CW2 CSC and Employer Instructions 9 The Contractor needs to add a section in the Monthly Progress Report being submitted to the PMU and CSC that reflects the status of EMP Compliance (if a separate report could not be prepared) attaching proof of compliance e.g. licenses, photographs, copies of documents. Complied, Contractors submitted the Environmental Compliance Statements along with their Monthly Progress Report each every month CSC checked Contractor's Environmental Compliance Statements and warn the Contractor immediately if any serious non-compliance were found 10 The Contractor should regularly coordinate with the utility companies in the project area to avoid disruption particularly on water and power supply. Complied, no any public or private utilities were damaged without noticed So far the problem of electrical poles, fiber optic cables and water pipeline were faced and jointly solved by the CSC, PMU3 counterpart. 11 Delay in the construction activities should be minimized. If fast tracking of the project is not possible, the Contractor should implement the mitigation measures promptly. Partly complied, there are some delays on the physical progress due to heavy rains, a lot of soft saturated materials were found Partly complied, there are some delays on the physical progress due to heavy rains, a lot of unsuitable materials were found CSC reviewed the cause of delays and found they are justifiable, and so far the new mitigation measures is not required 12 Flooding is another issue. Temporary drainage structures should be installed. Complied, Contractor takes very good care on this issue CSC work closely with the Contractor on this issue 13 Portalets could be added if the existing sanitary facilities are not enough. Wastes from portalets should be disposed through an accredited company or in coordination with the Ministry of Environment. Partly complied, Contractor has not yet attended to this issue since they found that it's not realy required CSC and Employer will tackle this issued with the Contractor when it will come to the requirements. 5. Recommendations and Status of Environmental Compliance Table (continue)

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