JICA National Road 1 (NR 1) Project
JICA National Road 1 (NR 1) Project
To compare Chinese BRI projects in Cambodia to other projects financed by donor states in the Kingdom, this is an examination of the National Road 1 Project, a Cambodian initiative funded by Japan. Due to its similarity to China’s National Road 6 Project, it is an apt example for proving whether “aid failures” in the BRI’s programming were caused by limitations in the recipient state’s capacity or in Beijing’s approach to foreign aid.
The National Road 1 (NR 1) Project was formulated in 2004 as part of a larger national development strategy to rehabilitate Cambodia’s roads and ports. It was fully funded by the Japanese International Cooperation Association (JICA), Japan’s leading foreign development agency. Although it began before the BRI was established, during a time when Cambodian state capacity was significantly weaker, Japan outperformed China in all areas.
Project Background
In 2008, Prime Minister Hun Sen announced the implementation of Phase II of Cambodia’s Rectangle Development Strategy, which focused on the rehabilitation and construction of the nation’s physical infrastructure. To achieve its broader development objectives, the government needed to prioritize the continued rehabilitation of its national roads, provincial roads, and ports.
The NR 1 was identified by governing bodies as one of the six roads of focus in the primary strategic plan under the 2004 Road Development Policy. After requesting financial assistance from Japan’s government for the rehabilitation of NR 1’s Phnom Penh-Neak Loeung section, JICA funded the road’s restoration from 2005 to 2018.
NR 1 connects three cities of mainland Southeast Asia—Bangkok, Ho Chi Minh, and Phnom Penh—to form the Southern Economic Corridor (SEC), boosting trade activities in the region. This national road runs 167 km from the capital Phnom Penh to Bavet City in Svay Rieng Province along the Vietnamese border. Together with National Road 5 (NR 5), which runs from Phnom Penh to Poipet City along the Thai border, NR 1 serves to connect Vietnam to Thailand through Cambodia.
JICA’s rehabilitation of NR 1 consisted of five stages conducted between 2005 and 2018. The first three stages improved two bridges and a road between Neak Loueng ferry port and Niroth Pagoda. To reduce transport congestion, Stage 4 expanded the first four km of NR 1 within the heavily trafficked Phnom Penh City to four lanes.
The last stages, dubbed the “National Road 1 Urban Section” in a JICA press release, were created during the detailed design study for Stage 4. A change in the design of the Asphalt Concrete (AC) for 450 m of Stage 4’s four km-stretch raised construction costs by about USD $2 million and required the signing of a new grant agreement, thus creating a fifth stage.
Table 1: JICA National Road 1 Projects
Project Name | Project Purpose | Grant from Japan | Approval Date | Start Date | Completion Date |
National Road 1 (Stage 1) | Improve two bridges between Neak Loeung & Phnom Penh | USD $7 million ($6,681,000) (786,000,000 JPY, using the December 2005 conversion rate of 0.0085 per 1 JPY) | June 10, 2005 | Nov 20, 2005 | March 15, 2007 |
National Road 1 (Stage 2) | Rehabilitate the road from Kokir Market to Neak Loueng Ferry Port (~43 km) |
USD $40 million ($39,866,400) (4,476,000,000 JPY, using the Dec 2006 conversion rate of 0.0084 per 1 JPY) |
June 12, 2006 | Nov 27, 2006 | March 15, 2009 |
National Road 1 (Stage 3) | Rehabilitate the road from Niroth Pagoda to Kokir Market |
USD $22 million ($22,055,000) (2,005,000,000 JPY, using the Dec 2009 conversion rate of 0.011 per 1 JPY) |
July 31, 2009 | July 31, 2009 | Dec 31, 2012 |
National Road 1 (Stage 4) | Improve the remaining 4 km of NR 1 |
USD $13 million ($13,223,433.1) (1,585,000,000 JPY, using the Dec 2014 conversion rate of 0.0083 per 1 JPY) |
Jan 15, 2014 | Jan 15, 2014 | Nov 30, 2017 |
National Road 1 (Urban Section) | Eliminate traffic issues and improve road environment by altering construction design (450 m) |
USD $2 million ($2,094,093) (251,000,000 JPY, using the Dec 2014 conversion rate of 0.00083 per 1 JPY) |
Dec 8, 2014 | Jan 8, 2015 | Jan 31, 2018 |
The funding for all five stages of NR 1 rehabilitation was provided via a grant from the government of Japan, although it remains unclear which financial institution provided the grant. Because the funds were provided as a grant, Cambodia has no requirement to pay back the assistance (unlike the Chinese cases examined that involved concessionary or non-concessionary lending). Meanwhile, the financial support for Stages 1, 2, and 3 are listed as “fully tied” in the ODA database reports. While it is not explicitly explained what “fully tied” entails in this case, it is assumed to fall under OECD’s definition of the term, which states that procurement is limited to donor country companies. Conversely, the financial support for Stage 4 and the Urban Section is listed as untied. This would be consistent with the overall development of JICA policy, which has gradually shifted away from tied aid.
While the CDC’s ODA database reports categorize the project as supporting the public sector, the annual budget listed was not shared with the RGC nor was a three-year draft plan shared with relevant Cambodian counterparts for Stages 1, 2, 3, and the Urban Section. The budgets and plans were only shared for Stage 4. Meanwhile, all five stages of the project did not use the government’s procurement system or financial management system (including the budgeting execution system, financial reporting system, or auditing system).
Project Transparency Gaps
In general, JICA’s transparency on the NR 1 project is more robust than the BRI projects examined in Cambodia’s series of case studies. Nonetheless, its transparency efforts could still be strengthened.
Like other ODA projects in Cambodia, the research team could find dates, budgets, and grant details using the CDC’s ODA database. JICA also has an ODA database, although it contains no documents regarding NR 1. Only 27 Cambodia-Japan ODA projects from 1969-2020 are listed in the JICA database, compared to 512 from 2008-2020 in CDC’s database. It is unclear why only a small portion of JICA’s ODA projects in Cambodia are listed. JICA also has a database for evaluation reports of its projects, but while the database had evaluation reports dating to 2005 (the year the first phase of NR 1 was approved), there are also no reports for NR 1.
The project’s press releases are only dated from 2012 onward, so the website does not include information on the first three stages of the project, which were approved prior to 2012. Yet although JICA’s publicly available material did not contain specific information, the office was willing to provide some details upon request.
Availability of Environmental Impact Assessment
The project’s feasibility studies found no substantial or irreversible adverse environmental and social impacts arising from the project, and recommended its implementation, stating that IEIA had a similar conclusion. However, this IEIA does not seem to be publicly available, and there do not seem to be any other independent assessments of the project’s projected or actual environmental impacts.
To capture different practices, quality and level of transparency, researchers are asked to answer six related questions for each data point. 1 point is assigned for each question to which the answer is “yes.” Each data point therefore has a total score between 0 and 6, where “0” means no information was publicly available at the time of research (not transparent) and “6” means full transparency.
Project & Contract Phase | Project Information | Score | Response | Link to Information |
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Project Identification 5.3 | Project owner | Japan International Cooperation Agency | https://www.jica.go.jp/cambodia/english/office/others/c8h0vm00006fyo71-att/oda_map01.pdf | |
Sector, subsector | Transportation | http://odacambodia.com/ | ||
Project name | JICA’s rehabilitation of National Road 1 consisted of five Stages conducted between 2005 and 2018 The Project for Improvement of National Road 1 (Phase I) The Project for Improvement of National Road 1 (Phase II) The Project for Improvement of National Road 1 (Phase III) The Project for Improvement of National Road 1 (Phase IV) The Project for Improvement of National Road 1 Urban section |
http://odacambodia.com/ | ||
Project Location | Phase 1: Improvement of two bridges between the capital city, Phnom Penh, and Neak Loeung. Phase 2: Improvement 43km road of National Road 1 between Neak Loeung’s Ferry Port and Kokir Market Phase 3: Improvement of the road section between Niroth Pagoda in Phnom Penh and Kokir Phase 4: Improvement of 4 Km section between Neak Loeung and Phnom Penh. Phase 5: Improvement of road condition. |
http://odacambodia.com/ | ||
Purpose | NR1 is Asian highway connecting Phnom Penh and Ho Chi Minh city. It plays a crucial role in goods and people movement of the transportation in the southern Economic Corridor. | JICA Signs Grant Aid Agreement for “The Project for Improvement of National Road No.1 Phnom Penh – Neak Loeung Section (Stage 4)” | Cambodia | Countries & Regions | JICA https://www.jica.go.jp/cambodia/english/office/topics/press140114.html | ||
Project description | The JICA projects provided $84 million USD in grant support to rehabilitate the first ~56km of National Road 1, from Phnom Penh to Neak Loeung, as shown in Figure 1. The project as a whole is attributed with widening 52km of the road to two lanes and 4km of the road to 4 lanes and raising the elevation of most of the 56km stretch above 2000 flood levels. The project also widened the road shoulder in 68 locations to ease traffic around markets, schools, hospitals, and bus stops, installed two truck scales to enforce overloading provisions, and rehabilitated or constructed 8 culverts and 14km of drainage pipes and ditches. | https://libopac.jica.go.jp/top/index.do?method=change&langMode=ENG http://odacambodia.com/ | ||
Project Preparation 5.7 | Project Scope (main output) | Basically used AASHTO Guide for Design of Pavement Structures (AASHTO Standard) for pavement design and “”Asphalt Pavement Manual”” by Japan Road Association (JRO) as the reference.. | https://data.opendevelopmentmekong.net/dataset/8b056306-0cd1-4b71-8361-65da79adcfd0/resource/37398c0b-74cc-4bb8-a7cb-cc0491059706/download/iritwgoverviewofthetransportinfrastructuresectorinthekingdomofcambodia2015.pdf https://libopac.jica.go.jp/top/index.do?method=change&langMode=ENG |
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Environmental impact | There are various species growing along NR1 including the important trees for commercial purposes are jackfruit, mango, coconut, tamarind, bamboo, etc. Moreover, there were 14 plants that the local community used to fuelwood. The project site seems not to have affected wildlife species since it’s a minor wildlife habitat. The study reported more than 70 bird species and fishes inhabit the area. Fortunately, project land is more likely a residential village or agriculture area, it does not belong to any historical areas, Angkorean or Pre-Angkorean remains, and even national parks or protected areas. Furthermore, as described above, along the project size is more likely agricultural land, the excavation would erode topsoil and slope. However, this project will keep the topsoil and refill after excavation. Moreover, the access roads to quarry and borrow sites will be constructed along the existing farm tracks to avoid losses to agricultural lands. The construction of bridges and culverts will affect the direction of water flow and its volume in the colmatage area. However, the location of bridges and culverts is carefully selected to reduce the flood risk and minimize adverse impacts to the existing land use. Site clearance has an inevitable negative impact on natural resources and wildlife. The contractor needs to pay attention to these issues to prevent it and this prevention will be stipulated in the conditions of the contract and specifications according to the report. Gas, dust pollution, water pollution, noise, and waste will be generated from the construction. To deal with these issues, the vehicles and machinery are to be regularly maintained and water should be sprayed during the construction period. Importantly, the delivery vehicle of construction must be covered to avoid spills and excess of acceptable noise and odor standards will be enforced. All construction materials elaborated to be reused, recycled properly. On other hand, the spread of insect-borne diseases such as malaria, dengue fever, and schistosomes are the local concerns. The project was encouraged to introduce a vigorous program to prevent such diseases. |
https://libopac.jica.go.jp/top/index.do?method=change&langMode=ENG | ||
Land and settlement impact | According to the study, 1,805 houses were affected which were required to leave and compensation must be applied accordingly by the responsible Ministry. Overall, the project would not affect the environment negatively since this project worked only on the improvement of existing roads and no additional land acquisition for road right-of-way is required. |
https://libopac.jica.go.jp/top/index.do?method=change&langMode=ENG | ||
Contact details | Japan International Cooperation Agency 6th,7th,8th Floors, Building #61-64, Preah Norodom Blvd, Corner of St. 306, Phnom Penh, CAMBODIA (P.O.Box 613, Phnom Penh, Cambodia) |
https://www.jica.go.jp/cambodia/english/index.html | ||
Funding sources | Japan International Cooperation agency | https://www.jica.go.jp/cambodia/english/index.htm | ||
Project Budget | Phase 1: $7 million USD ($6,681,000) (786,000,000 JPY, using the December 2005 conversion rate of 0.0085USD per 1 JPY) Phase 2: $40 million USD Phase 3: $22 million USD Phase 4: $13 million USD Phase Urban section: $2 million USD |
http://odacambodia.com/ | ||
Project budget approval date | Phase 1: 10 June 2005 Phase 2: 12 June 2006 Phase 3: 31 July 2009 Phase 4: 15 January 2014 Phase Urban Selection: 08 December 2014 |
http://odacambodia.com/ | ||
Project Completion | Project status (current) | Phase 1: completed March 15th, 2007 Phase 2: completed March 15th, 2009 Phase 3: completed December 12th, 2012 Phase 4: completed November 30th, 2017 Phase Urban Selection: completed January 31st, 2018 |
http://odacambodia.com/ | |
Completion cost (projected) | Phase 1: $7 million USD ($6,681,000) (786,000,000 JPY, using the December 2005 conversion rate of 0.0085USD per 1 JPY) Phase 2: $40 million USD Phase 3: $22 million USD Phase 4: $13 million USD Phase Urban section: $2 million USD |
http://odacambodia.com/ | ||
Completion date (projected) | Phase 1: completed March 15th, 2007 Phase 2: completed March 15th, 2009 Phase 3: completed December 12th, 2012 Phase 4: completed November 30th, 2017 Phase Urban Selection: completed January 31st, 2018 |
http://odacambodia.com/ | ||
Scope at completion | Phase 1: $7 million USD ($6,681,000) (786,000,000 JPY, using the December 2005 conversion rate of 0.0085USD per 1 JPY) Completed: March 15th, 2007 Phase 2: $40 million USD Phase 3: $22 million USD Phase 4: $13 million USD Phase Urban section: $2 million USD |
http://odacambodia.com/ | ||
Reasons for project changes | No change | http://odacambodia.com/ | ||
Reference to audit and evaluation reports | The projects’ pages on the ODA database do explain that they used an audit system; however, we cannot find such an audit publicly available. | |||
Procurement 3.2 | Procuring entity | Ministry of Foreign Affairs and International Cooperation | http://odacambodia.com/ | |
Procuring entity contact details | Address: No 3, Samdech HUN Sen Street, Sangkat Tonle Bassac, Khan Chamkamon Phnom Penh, Kingdom of Cambodia |
https://www.mfaic.gov.kh/home/GalleryDetail?PostId=50797 | ||
Procurement process | Did not use the government’s procurement system | http://odacambodia.com/ | ||
Contract type | Construction Contractor: 1st and 2nd phase: Obayashi Corporation 3rd phase: Daiho Corporation 4th phase: Hazama Corporation Feasibility Study Contractor: Katahira and Engineer International |
https://libopac.jica.go.jp/top/index.do?method=change&langMode=ENG | ||
Contract status (current) | Confidential | |||
Number of firms tendering | Confidential | |||
Cost estimate | Confidential | |||
Contract administration entity | Construction Contractor: 1st and 2nd phase: Obayashi Corporation 3rd phase: Daiho Corporation 4th phase: Hazama Corporation Feasibility Study Contractor: Katahira and Engineer International |
https://libopac.jica.go.jp/top/index.do?method=change&langMode=ENG | ||
Contract title | Not publicly disclosed. | |||
Contract firm(s) | Construction Contractor: 1st and 2nd phase: Obayashi Corporation 3rd phase: Daiho Corporation 4th phase: Hazama Corporation Feasibility Study Contractor: Katahira and Engineer International |
https://libopac.jica.go.jp/top/index.do?method=change&langMode=ENG | ||
Contract price | Confidential | |||
Contract scope of work | Phase 1: Improvement of two bridges between the capital city, Phnom Penh, and Neak Loeung. Phase 2: Improvement 43km road of National Road 1 between Neak Loeung’s Ferry Port and Kokir Market Phase 3: Improvement of the road section between Niroth Pagoda in Phnom Penh and Kokir Phase 4: Improvement of 4 Km section between Neak Loeung and Phnom Penh. Phase 5: Improvement of road condition. |
http://odacambodia.com/ | ||
Contract start date and duration | Phase I: Approval date: 10 June 2005 Start date: 30 Nov 2005 Completion date: 15 March 2007 Phase II: Phase III: Phase IV: Phase V: |
http://odacambodia.com/ | ||
Implementation 2.0 | Variation to contract price | Confidential | ||
Escalation of contract price | Confidential | |||
Variation to contract duration |
There were some months differently between CDC ODA’s Database and JICA study report. The 2012 Preparatory Study described that Stage 1 was completed in January 2007 and Stage 2 was completed in February 2009, and stage 3 in June 2011 while CDC’s ODA database describes that Stage 1 was completed in March 2007, Stage 2 in March 2009, and stage 3 in December 2012. |
http://odacambodia.com/ https://libopac.jica.go.jp/top/index.do?method=change&langMode=ENG |
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Variation to contract scope | The contract is confidential but the initial scope remains the same. | https://libopac.jica.go.jp/top/index.do?method=change&langMode=ENG | ||
Reasons for price changes | Not available | |||
Reasons for scope & duration changes | Not available |