Mr. Hort Sroeu Specialist KOICA Cambodia Office

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Bachelor of Art (BA) in Khmer Literature

University(BBU), Phnom Penh, Cambodia The

1 Happiness for All, with Global KOICA Presenter Mr. Hort Sroeu Specialist KOICA Cambodia Office Academic Qualification: 1.Bachelor of Art (BA) in Khmer Literature Royal University of Phnom Penh (RUPP), Phnom Penh, Cambodia Faculty of Social Science and Humanities 2.Master of Business Administration (MBA) in General Management Build Bright University(BBU), Phnom Penh, Cambodia The Graduate School of Management Experience: 1.Teaching English more than 5 years. 2.Working with KOICA from 2005 until now.

2 Challenge and Solution/Recommendation

Apr 1999 Land Area 181,035 sq km (about 1:3

56% (2017) (Density : 91 per Km 2 ) Urban

1 % (2017) GDP per capita (current price)

Highway Route in Cambodia Riel but US$ is

Thailand and seaport) *Missing link with VN

8 km (AH1, AH11 & AH123) Railway Operation

3 1-1.CAMBODIA s Country Profile Capital City: Phnom Penh Member State of ASEAN in Apr 1999 Land Area 181,035 sq km (about 1:3 of Thailand) Population millions (2017)* Annual Population Growth 1.56% (2017) (Density : 91 per Km 2 ) Urban Population 20 % GDP Growth 7.1 % (2017) GDP per capita (current price) US$ 1,307 (2017) Currency Major Ports Length of Roads (National, Provincial & Rural) Length of Railroad Length of Asian Highway Route in Cambodia Riel but US$ is widely used Sihanoukville Port and Phnom Penh Port 45, km (2016) 652 km (connected with Thailand and seaport) *Missing link with VN & Laos 1,486.8 km (AH1, AH11 & AH123) Railway Operation *Source: IMF 1.2.Cambodia s Railway Networks 48km Missing Link From Sisophon to Poipet (the border with Thailand) Northern Line Sisophon-Phnom Penh 338 km Southern Line Phnom Penh-Sihanoukville Port 264 km

4 1.3. Background of Cambodian Railway 1. French Colonial Era ( ): The First Construction of Cambodian Railway in of the Northern Line for 386 km (from Phnom Penh to Thai Border). 2. Independent Era (King Sihanouk, ): The 2 nd Construction of Cambodian Railway in of the Southern Line for 264 km (from Phnom Penh to Sihanoukville Port) for the purpose of buster international trade. 3. The 1 st Civil War ( ): The first wave of destruction of Cambodian Railway. Both lines were frequently blew up sections by sections; all trains operation were almost completely ceased. 4. The Communist Regime (Khmer Rouge, ): Both lines were rehabilitated (a major mode of transport), but train operations capacity were very low due to close economies. 5. The 2 nd Civil War ( ): Both lines were again frequently destructed but trains were still operated on daily/or weekly basis after sectional repairs. 6. The Collapse of Cambodia Royal Railway ( ): The interruption of continuing civil wars with very poor maintenance of both tracks and trains led to transport services by rail sharply drop and until 2007 freight and passenger trains transport service were completely shutdown. However, another reason of shutdown was the RGC stop providing subsidies. 7. The Restructuring of Cambodia Royal Railway ( ): ADB started to finance the track works reconstruction of both lines (Feb.18, 2008), and The State run company of Cambodia Royal Railway were dissolved on 1 st Oct 2009 and all assets are conceded to a private corporation(namely Toll Royal Railway) under 30 years Concession Agreement for Freight Service. Then the Cambodian Railways are revitalized (re-operated) in Oct. 1, Also The Railway Department were established on Oct. 1, 2009 to oversee the Concessionaire and other railway development projects. 8. Cambodia Railway Networks Master Plan has been developed in 2014 in a comprehensive manner for Short, Medium and Long Term Development for the next 15 years ( ) Institution: Railway Department

1.5.Organization Chart of Railway Department DIRECTOR Secretariat Legal Office Deputy Director Concession Relations Deputy Director Development Deputy

Locomotives & Rolling Stock Office Human Resources Office Concession Office Urban Rail Planning Office International Cooperation Office Track &

5 1.5.Organization Chart of Railway Department DIRECTOR Secretariat Legal Office Deputy Director Concession Relations Deputy Director Development Deputy Director Policy & International Cooperation Deputy Director Inspections Deputy Director Administration Assets Office New Lines Planning Office Policy Office Locomotives & Rolling Stock Office Human Resources Office Concession Office Urban Rail Planning Office International Cooperation Office Track & Infrastructure Office Administration Office Procurement & Project Appraisal Office Safety Office Budget & Accounting Office There are 15 Offices and 1 Secretariat Training Office

2.1. Description With the assistance from the Korea International Cooperation Agency (KOICA), the Railway Network Development Master Plan was

Objectives for the Master Plan for Railway Network Development are following: a) Strengthen economy and national development; b) Improve living

efficiency; d) Strengthen international cooperation and economic growth of the country. 2.1. Description (Cont.

Weakening competitiveness of railway due to the old existing railway An inefficient traffic system by depending on the roads P urpose Area :

6 2.1. Description With the assistance from the Korea International Cooperation Agency (KOICA), the Railway Network Development Master Plan was approved in 2014 (study: from January 2012 to December 2013). Objectives for the Master Plan for Railway Network Development are following: a) Strengthen economy and national development; b) Improve living standard of Cambodian people as well as the people in regions and to eliminate poverty; c) Establish the traffic system with low cost and high efficiency; d) Strengthen international cooperation and economic growth of the country Description (Cont.) Location Map Background Poor conditions of transportation network in Cambodia stands out as a factor of obstacles to economic-growth. Weakening competitiveness of railway due to the old existing railway An inefficient traffic system by depending on the roads P urpose Area : 181,035 C apital : P hnom P enh P opulation : 15 Million people(2011 Year) C limate : Tropical mons oon climate To Formulate the efficient and systematic national railway network by analyzing feasibility for the first priority routes and by establishing the comprehensive railway master plan in Cambodia

for Railway Network Development in Cambodia

borders of neighboring countries(vietnam,

7 2.1. Description (Cont.) Scope of Project Project Name Master Plan for Railway Network Development in Cambodia Project Period 24 months from the commencement date ( ~ ) Spatial Scope All areas in Cambodia and borders of neighboring countries(vietnam, Thailand, Laos) P roject S cope Formulation of The Master Plan for Railway Network Feasibility Study & Conceptual Design for the first priority routes Provide 1 set of equipment to Cambodia Invitation of trainees & Conference in Cambodia 2.1. Description (Cont.) Organization of the Project

8 2.2. Four Goals and Seven Strategies 2.3. Five Main Lines & 8 Branch Lines The Railway Master Plan is proposed with 5mainlines, 8 branch lines

6% of G DP, it is lower than average debt of Asia.

Government Finance is considered at the current level (0.

Private Financing) is considered at the level of Vietnam(7.

Government Finance 139.64 Mil. USD (5.3%) Loans Finance 314.66 Mil.

9 2.4. Implementation Plan 2.5. Financing Public Debt of Cambodia is 28.6% of G DP, it is lower than average debt of Asia.(47%) Deficit of finance in C ambodia is more than 5%. Government Finance is considered at the current level (0.67% of budget, average increase ratio 5.38%) The Loans from EDCF, ADB, WB etc. are considered at current level FDI(Foreigner Direct Investment, Private Financing) is considered at the level of Vietnam(7.54% of GDP) Classification, Accelerated Pattern (2014~2020) Government Finance Mil. USD (5.3%) Loans Finance Mil. USD (11.9%) Private Finance 2, Mil. USD (82.8%) Total Finance 2, Mil. USD Most of railway budget should rely on private because the government budget is very low The short-term project shall be carried out first considering financing conditions

10 2.6. Expected Effect after Implementing 2.8. Railway Master Plan Adjustment Line A (Exiting Northern line from Phnom Penh to Poipet) will be the 1 st Priority. Line C (from Batdoeung to Sisophon through Siem Reap) will be the 2 nd Priority. Line D (from Skun to Snoul) will be developed as long as Vietnam start to implement the project to connect with Cambodia at Loc- Ninh. Line E will be developed as long as Line D completed.

Single Track Meter gauge 1000mm - Constructed since 1929 (during French

concrete sleeper) bold rigid and use d P 30 of rail support for 15 tons

It consists of 49 Stations. (Rehabilitation is still going on) 2.

-Single Track Meter gauge 1000mm -Constructed since 1960 (After

and P 43 of rail suppor for 20 tons axle load.

11 3.1.Cambodia s Railway Networks 1. Northern line, consists of 386 km -Phnom Penh to Poipet (Thai Border) - Single Track Meter gauge 1000mm - Constructed since 1929 (during French Colonial Era) and finished in 1942 using steel sleepers(are replaced by concrete sleeper) bold rigid and use d P 30 of rail support for 15 tons axle load (will be upgraded to 20 tons axle load). It consists of 49 Stations. (Rehabilitation is still going on) 2. Southern line, consists of 266 km -Phnom Penh to Sihanoukville Port -Single Track Meter gauge 1000mm -Constructed since 1960 (After Independent from French) and finished in 1969; using concrete sleepers and P 43 of rail suppor for 20 tons axle load. it consists of 29 Stations. (Rehabilitation was completed in 2011) These rehabilitated projects cost US$142 Millions and are financed by ADB (60%), AusAid (15%) & RGC (15%)

3.2. Status of Rehabilitation of the Northern Line (Line A) from

Borey (PK328+500) to Poipet (Thai border: PK 385+050) will be

Funded by RGC (national budget Chapter 21, year 2015; US$15.5 M).

(PK164+440) to Mongkol Borey (PK328+500) will be completed in Mar

(PK31+121) to Pursat (PK164+ 440) will be completed in Jul 2018

Old Railway Bridge at the border, since 1929 Railway Bridge

12 3.2. Status of Rehabilitation of the Northern Line (Line A) from Batdoeung to Poipeti - The Cambodia-Thai Friendship Bridge at the border was reconnected since Sep The re-construction (20T axle load) of section from Mongkol Borey (PK ) to Poipet (Thai border: PK ) will be fully completed in this Jan Funded by RGC (national budget Chapter 21, year 2015; US$15.5 M). - The rehabilitation (15T axle load) of section from Pursat (PK ) to Mongkol Borey (PK ) will be completed in Mar Funded by RGC (national budget Chapter 21, year 2016 & 2017; US$ 38.7M). - The rehabilitation (15T axle load) of section from Batdoeung (PK31+121) to Pursat (PK ) will be completed in Jul 2018 (before election), will be funded by RGC (national budget Chapter 21, year 2018; US$ 25M). - From Phnom Penh to Badoeung railway was reconstructed since 2011 under ADB project. By July 2018, the Northern Line will be able to operate. Old Railway Bridge at the border, since 1929 Railway Bridge Re-Connection Ceremony on 19 Sep 2016 at border in Poipet New Railway Bridge at the border (CAM-THAI) 3.2. Status of Rehabilitation of the Northern Line (Line A) from Batdoeung to Poipet i (Cont.) Perspective Design of Poipet International Station Progress Works of Poipet International Station Buidling: 60% completed.

13 3.3. Joint Rail Traffic Cross Border Agreement between Cambodia-Thailand 3.4. Concessionaire s Railway Business The concessionaire has changed status of partners from Toll-Royal (51% & 49%) to 100% share by Royal Group and changed the Concessionaire name from Toll-Royal Railway (TRR) to Royal Railway (RR). RGC is still not decided yet to approve on the change of Concessionaire Status. The Concession Contract Agreement need to be renegotiated. (Only Southern line (SL) is handed over to Concessionaire). The RGC is considering to withdraw Northern line from the Concession Contract Agreement. Freight Transport (South Line only): to be updated by RR Passenger Transport (South Line only): to be updated by RR or refer to Royal Railway website:

Act/Law/Regulation: None Railway Operation

facing difficulty in seeking investment funds

14 4.1. Challenge Technical Standard & Specification: None Railway Infrastructure Act/Law/Regulation: None Railway Operation Business Act/Law/Regulation: None Cambodia is facing difficulty in seeking investment funds for the implementation of such huge projects of the Master Plan 4.2. Solution To solve the above issues, KOICA will dispatch WFK Advisors: 4.3. Recommendation

15 Railway Development Plan of Cambodia-Video Show

LAO PEOPLE S DEMOCRATIC REPUBLIC PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY MINISTRY OF PUBLIC WORKS AND TRANSPORT LAO RAILWAY DEPARTMENT

LAO PEOPLE S DEMOCRATIC REPUBLIC PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY MINISTRY OF PUBLIC WORKS AND TRANSPORT LAO RAILWAY DEPARTMENT 1 5 th Meeting of the Working Group on the Trans-ASIAN Railway