Feasibility study: Mining Fund access poorly in 2022

FEASIBILITY STUDY REPORT

Photo 1: www.khmertimeskh.com

EMY PEREZ & SINGHA SAVORN (MSc.), FREELACE CONSULTANTS

SEPTEMBER 2022

ACKNOWLEDGEMENT

Such an important task like this feasibility report is made possible with contributions of the stakeholders concerned. We must state that, without their inputs, insights and sacrifice, this would have not been brought to see the sunlight. Thus, we must pay respect and gratitude to them in the following, regardless of the order of importance.

Firstly, we are highly grateful to Oxfam for providing both financial and non-financial assistance to the project. Non-financially, its personnel are respectable, resourceful and talented. They gave, beyond our appreciation, inputs and insights into the design of this project.

Secondly, we are grateful and enthusiastic for the MME for organizing the ninth Extractive Industry Governance Forum (EIGF) to present our work and listen to the technical elaboration that could build a common understanding and interests. This allows us to simplify our very assignment. 

Thirdly, we pay our deepest and most sincere gratitude to the Commune Councillors, Community Leaders, and local residents for allowing us to meet and discuss for the purpose this feasibility study up of all the national case studies.

Fourthly, deep gratitude to UN Small Grants, ActionAid, and Star Kampuchea for providing us with opportunities to learn and document the grant management experience in Cambodia.

Fifthly, special thanks to all the foreign interns including Ms. Caroline Kachadoorin and Ms. Erin Horringan, for their hard work on graphs and charts presented throughout the case studies, proof-reading, editing, and meeting the UN agency and NGOs mentioned just above to document grant management experience.

Last but not the least, much appreciation to everyone mentioned hereby and wish them achieve their brilliant missions, respectively. We are also looking forward to working with you all in the nearest future in the sector of extractive industry.

Warmest Regards,

Emy and Singha

LIST OF ABBREVIATIONS

TABLE OF CONTENTS

LIST OF ABBREVIATIONS.. 3

INTRODUCTION.. 6

1.     OVERVIEW... 6

2.     MINING FOCUS. 6

3.     WHY THIS REPORT IS WRITTEN.. 6

4.     METHODS OF WRITING.. 7

CHAPTER 1        SITUATIONS OF AREAS ASSESSED FOR DEVELOPING CASE STUDIED.. 8

1.1       GEOGRAPY AND NATURAL/ MINERAL RESOURCES.. 8

1.2       ILL EFFECTS OF MINING OPERATIONS ON AREAS STUDIED.. 8

CHAPTER 2        EXPERIENCE ON GRANT MANAGEMENTS LEARNT FROM NGOs AND THE MME.. 10

2.1       EXPERIENCE LEARNT FROM NGOs. 10

2.2       EXPERIENCE LEARNT FROM THE MME.. 10

2.3       COMPARISON OF GRANT MANAGEMENT EXPERIENCE BY THE NGOs AND THE MME.. 11

CHAPTER 3        MINING INFORMATION, EDUCATION AND COMMUNICATIONS (MIECs) 12

3.1       CITIZEN’S KNOWLEDGE, ATTITUDE, AND PRACTICE (KAP) 12

3.2       APPROACHES TO MIECs. 12

3.3       CHALLENGES ENCOUNTERED AND COPING STRATEGY.. 12

3.4       ROLES AND RESPONSIBILITIES OF STAKEHOLDERS IN MIECs. 12

3.5       SIGNIFICANT CHANGES ARISING OUT OF MIECs. 12

3.6       POLICY GAPS WITHIN MIECs. 12

3.7       EXPERIENCE AND PRACTICES ARISING OUT OF MIECs  13

CHAPTER 4        MINING FUND MANAGEMENT (MFM) 13

4.1       CITIZEN’S KNOWLEDGE, ATTITUDE, AND PRACTICE (KAP) 13

4.2       APPROACHES TO THE MFM... 13

4.3       CHALLENGES ENCOUNTERED AND COPING STRATEGY.. 13

4.4       ROLES AND RESPONSIBILITIES OF STAKEHOLDERS IN THE MFM... 13

4.5       SIGNIFICANT CHANGES ARISING OUT OF MFM... 13

4.6       POLICY GAPS WITHIN THE MFM... 14

4.7       EXPERIENCE AND PRACTICES ARISING OUT OF THE MFM    14

CONCLUSIONS AND RECOMMENDATIONS.. 15

A.        CONCLUSIONS. 15

A.1      Brief Overview.. 15

A.2      Brief Situation of the Studied Areas, Mining Operations, and Their Ill Effects. 15

A.3      Brief Status of the MIECs. 15

A.4      Brief Status of the MFM in Comparison with Grant Management Experience by NGOs. 16

B.        RECOMMENDATIONS. 17

ANNEXES.. 18

REFERENCES.. 18

INTRODUCTION

1. OVERVIEW

A local Non-Governmental Organisation (LNGO), the Affiliated Network for Social Accountability (ANSA), was founded in 2015, with the purpose of recognizing that Cambodia is a nation capable of developing a society of collaboration, integrity, and dignity, that can achieve unexpurgated freedom in accordance with both national and international laws. ANSA centres its mission on the enhancement of citizen capacity, fighting against corruption, and promoting good governance to improve public service deliveries, public resources, and natural resource management. 

ANSA developed these core tenants working under the belief that good governance can only be achieved through active and complete participation of citizens. Social accountability approaches are employed to make achievements possible at the local level in order to strengthen relationships between citizens and their government whilst engaging with policy-makers, decision-makers and other stakeholders to reassert the need to value the interest of citizens. For monitoring work, ANSA trains and empowers citizens to voice their concerns regarding government services and policies that affect their daily lives.

1. MINING FOCUS

With initiative by the Minister of Mines and Energy (MME), Mining Fund for Local Community Development (MFLCD) is created and enacted under the Khmer Laws. Hereinafter, the term MFLCD refers as to only the Mining Fund (MF). The purpose of MF is to hold a mining company accountable to the community affected by its mining operations. To remark, all the mining royalties (fees, taxes, fines and penalty) have to go back to the community, unlike international context where all the fund is divided proportionally from national to local levels. For a number of challenges, only 20% of the MF worth of 10 million US Dollars has been released up to date.

ANSA has engaged itself with the key issue of community access to the MF projects that are connected to the ill effects of the operations. This is an issue that has become relevant throughout Cambodia, with focus given to the analysis of areas across Cambodia in this report. Mining has become one of the main sources of economic revenue for the country and is therefore seen as a highly valuable priority for its development, especially following the Covid-19 crisis and its negative impact on the international economy, of which Cambodia was not an exception. This is especially true of gold, one of the main outputs of Cambodia. Despite its economic value, there are several negative environmental and societal effects caused by the operations that are invaluable to the lives of Cambodian citizens. 

The government has to be better equipped to aid citizens forced to live at the communities affected. In Cambodia, this has mainly been constructed in the form of Commune Development Funds (CDFs), with the goal of allowing communities to allocate funds for local development projects. However, the communities have had difficulties with the distribution of such a fund due to their small size supplies vs. larger demands by the projects. It has been reported that while these funds can be used, it only happens if they are well supervised. Otherwise, there is a likelihood of corruption due to conspiracy in the procurement amongst bidders. ANSA has developed this study to address the clear negative impact of mining operations at affected communities in Cambodia and aid in outlining what can be done both by citizens and by the government. 

1. WHY THIS REPORT IS WRITTEN

This feasibility report is made up of four main chapters: 1). Chapter 1 - Situation of Areas Assessed for Developing Case Studies; 2). Chapter 2 - Experience on Grant Managements Learnt from NGOs and the MME; 2). Chapter 3 - Mining Information, Education, and Communications (MIECs); and 4). Chapter 4 - Mining Fund Management (MFM). This report is aimed at informing relevant stakeholders of these topics for taking into account for their decision-making, policy-making and/or actions with regards to the conclusions and recommendations. The stakeholders included but are limited to governmental institutions, non-governmental organizations (NGOs) and donors, with all working for the interests of Extractive Industry (EI) sectors in Cambodia.

1. METHODS OF WRITING

The immediate result of feasibility study includes a total of five national case studies and one regional case study (as can be seen in Annexes). The national studies represent two MF non-recipient communities, two communities whose MF applications have been pending and one MF recipient community. The regional case study, the result of desk reviews, represents mining affected communities in the South-East Asia. Documentation of grant management experiences gleaned from non-state agencies including UN arm, international organization, and local organization. This feasibility report is made up of the summary of these case studies and documented grant management experiences.

In all the processes ranging from design to proof-readings, both Khmer consultant, practitioners, and international expert were involved actively and meaningfully. In addition, encoding and analysis of the data collected for the case studies were assisted by international interns.

CHAPTER 1   SITUATIONS OF AREAS ASSESSED FOR DEVELOPING CASE STUDIED

1.1       GEOGRAPY AND NATURAL/ MINERAL RESOURCES

The areas selected for the national case studies spread over North-Eastern, Central Mekong, and South-Eastern provinces of Cambodia. To the first place are Ratanakiri and Stung Treng which were categorized by plateaux, gold and marble mining operations, and home to indigenous groups, respectively; to the second place is Kampong Cham by lower-land and sand mining; to the third place are Kampong Speu and Takeo by low-land, quarrying and sand mining operations, respectively. For the regional study, Laos, Thailand, the Philippines, and Indonesia are included, as their mining operations were very much similar to those in Cambodia.

The North-Eastern provinces are rich in natural and mineral resources and are home to a variety of wild animals and biodiversity. Both Ratanakiri and Stung Treng cover part of the Virachey National Park. Near the mining sites thereof are Protected Areas (PAs), and forested, agricultural and housing lands. Stung Treng possesses a Ramsar area as well as many attractive historical and cultural sites; The Central Mekong and South-western provinces are shrub lands adjacent to the river banks where the mining sites are. The sites are higher and near agricultural lands. All the roads used to haul the mines are across both housing and agricultural lands.

It should be noted that coastal area was cancelled and Mondulkiri was replaced by Stung Treng, due mainly to refusals by the seemingly evasive Commune Chiefs, despite their acceptance for the studies at early stages of communications. 

1.2       ILL EFFECTS OF MINING OPERATIONS ON AREAS STUDIED

Despite their contributions to the state’s revenue, the mining operations have posed a number of ill effects to all the communities studied. Interestingly, fewer effects applied to only the areas where officials of the Ministry of Mines and Energy (MME) launched a prior proper public forum to inform citizens about the operations, technical specifications, and in case of mining violation, citizens’ cooperative reporting to competent bodies. The effects applied strongly to local governance, income opportunities, environment, and safety and security. To the first place, when citizens had trouble with hauling trucks damaging local roads and polluted the atmospheres, the communities and local governments were loaded with even more workload than ever before. This would be even severe in case upper administration take part with the mining companies; to the second place, local residents have no longer had access to either fishing areas or collecting sands, quarries or marbles for home-stead consumptions, as a result of a high level of security and restrictions imposed around far beyond the mining sites by the companies; to the third place, pollutions, dusts and muds which are created in turns as much as the year round by the trucks applied severely to the areas; both citizens and local governments have kept getting the roads fixed with their frugal resources whilst the companies take away the mines for profits; to the fourth place, citizens of almost all walk of life were scared by possible collapses of river banks or soils. Soil erosions and worsened water quality were discovered especially in areas where quarry and marble mining operations are. Loss of agricultural lands were widely reported in the Central Mekong provinces as their residences were located on the river banks; in the South-western provinces, the loss of agricultural and community forest lands was also widely reported, although some residents sold them to the mining companies.

Photo 2: www.cairn-int.info
 

CHAPTER 2   EXPERIENCE ON GRANT MANAGEMENTS LEARNT FROM NGOs AND THE MME

For this section solely, approaching to those NGOs providing financial aid programs to civil society organizations (CSOs) including community-based organizations (CBOs) in Cambodia and working directly and indirectly with Guidelines to the MF. 

2.1       EXPERIENCE LEARNT FROM NGOs

To the first place, the UN Small Grants, ActionAid (international NGO), and Star Kampuchea (local NGO) were interviewed for documenting their grant management experience. The Small Grants and ActionAid attests their experience that involve a number of step-by-step processes each of which is with a defined timeline: 1). Calling for Proposals detailing about legible institutions to submit for a range of minimal and maximal fund amount and how to submit in a defined timeline; 2). Proposal screening and short-listing; 3). Proposal appraising and approving/ disapproving; 4). Project implementation; and 5). Project monitoring and evaluation. For these both organizations, part of the project implementation involves procurements that recipients have to entail, with especially infrastructures and/or equipment/ machineries. The organizations are capacity-built in overall administration and implementation. It differs than Star Kampuchea who works directly with recipient communities who receive over time small grants for their initiative in the form of priming a pump. Practical capacity-building is provided to ensure that the project is properly administered and implemented. The challenge reported is limited management capacity of the recipient communities. Both technical and administration assistance were provided to the recipient organizations throughout the project’s period.

2.2       EXPERIENCE LEARNT FROM THE MME

To the second place, the Guideline was directly presented in the Ninth Extractive Industry Governance Forum (EIGF) by the MME. ANSA and the consultant fully participated in the event. Indirectly, this working paper was then tentatively reviewed. The phases involve in providing the MF are: 

1). Raising a MF project

Provincial or municipal leaders in charge or representatives encourage the Commune/ Sangkat Administration to get the MF used, with the Provincial Department of Mines and Energy (PDoMME) acting as secretariat to lead, organize, and motivate them to raise a proposal for the area where the mining site is located. The proposal shall include overall and achievement inauguration costs. The leaders in charge or representative shall review, appraise and provide comments on the proposal before being submitted to the Minister of Mines and Energy who then checks and approves it. They may submit a prior request for hiring a specialist to conduct the project’s study, in case the administration is unable to estimate the costs they are proposing.

2). Procurement

The Commune/ Sangkat Administration shall deliver the procurement, according to the MF size and the following procedures: a). Bidding notice from 15 to 30 days for local bidders and 60 days for international ones; b). Accepting proposals and handing over the contract entails transparent and accountable processes; and c). Requesting the financial assistance to get the project implemented.

3). Paying the project’s expenditure

The Commune/ Sangkat Administration may request the assistance as per provisions stipulated in the contract, through the leaders in charge and the Department of Mineral Resource Economic Planning. The leaders shall launch a site visit to make a progressive report for submission to the minister and raise payment advice for the administration.

In November 2022, ANSA organized a two-day Training of Trainers (ToTs) on the MF Dissemination Skills and Application Preparation for a selected number of participants from the communities and Commune/ Sangkat Administrations concerned, in a full and meaningful cooperation with NGO Coalition on EI Governance and the MME (See Photo 3). The procedures look very simple and communicable, with a total of 12 forms to use and attach with a project proposal. However, the trainees raised their difficulty filling the forms, following being explained in a step-by-step process during the training course. This is amongst other challenges claimed, such as the MF information.

Photo 3: Training of Trainers on MF Dissemination Skills and Application Preparation (18 November 2022)

2.3       COMPARISON OF GRANT MANAGEMENT EXPERIENCE BY THE NGOs AND THE MME

The grant experience by the NGOs and the MME looks almost similar, despite being explained in different ways. However, what significantly different are that, Calling for Proposals and Raising a Project, the NGOs specify the amount range of grant to be proposed in a defined timeline whilst the MME does not inform about the MF availability, application submission, and processing and approval deadlines. As such, accessing to NGO funds seems to be easier than that to the MF, with regard to the availability and application processes and approval within defined deadlines.

CHAPTER 3   MINING INFORMATION, EDUCATION AND COMMUNICATIONS (MIECs)

For the first three national case studies, this section was not included. Over time during his actual field works for the studies, the consultant appeared to learn that the section is worth including. The works attested that the lack of awareness on mines and mining amongst citizens would lead to destruction of mineral resources locally existent. Therefore, this section was included for the two last studies in return.

3.1       CITIZEN’S KNOWLEDGE, ATTITUDE, AND PRACTICE (KAP)

Awareness of what mines, what legal and illegal mining are, who own and control them were discovered to be very poor amongst citizens. Furthermore, the indigenous group of Jarai in Ratanakiri misinterpreted their awareness that could destruct the mineral resources thereof. Such as awareness has resulted in small-scale illegal mining activities across the areas studied, although some had been cracked down by the competent bodies a few years ago. Interestingly, they demonstrated their strong curiosity to learn these topics, if time is given. 

3.2       APPROACHES TO MIECs

No CSOs and state agencies were reported to have disseminated the MIECs in all the areas studied. Therefore, no approach to the MIECs has been discovered.

3.3       CHALLENGES ENCOUNTERED AND COPING STRATEGY

Like for any other development works, challenges that could be encountered by the MIECs are the limited participation of citizens in the South-western provinces and low level of literacy of those in the North-Eastern ones. The suggested coping strategies include training key persons to pass on the awareness to their fellows, committed leaderships with role-models, and employing indigenous leadership structures. The first strategy which should be made possible through both through meetings and loud-speakers could apply very much in South-western and central Mekong provinces, due mainly a higher level of literacy; committed leaderships with role-model applies to Stung Treng; employing the indigenous structure does to Ratanakiri where many indigenous groups with lower level of literacy are present.

3.4       ROLES AND RESPONSIBILITIES OF STAKEHOLDERS IN MIECs

According to the vast majority of respondents, ToTs should be the role of the MME and PDoMME in cooperation with NGOs/ CSOs; In case there is a law suit against any illegal mining operation, the MME should pass the case to the Court of Justice; Dissemination on Mines and Mining and reporting on Mining should be that of the CCs/ LAs. In addition, the mining companies should report on their mining operations to relevant institutions.

3.5       SIGNIFICANT CHANGES ARISING OUT OF MIECs

Possible MIECs would improve local awareness on the issues, thus by placing them in a better position to help prevent illegal activities on the mineral resources and help ease the local governance issues. 

3.6       POLICY GAPS WITHIN MIECs

This section should assess what policy frameworks are in place for MIECs and what have been really practiced at this community. 

Article 58 of the Cambodia’s Constitution stipulates that all natural resources including those under the ground, like mines etc., are owned by the state and that their management and usage are defined in the law. Article 41 stipulates about the citizen’s Rights to Expression, part of which the Rights to be informed is included.  As discussed earlier, no dissemination on Mines and Mining by any institution. Consequently, many of community leaders and local governments have been concerned of possible devastation of the mineral resources. Paragraph 2 of Article 50 enshrines partly the citizens’ duty to abide by the public property. A lack of this duty may result in the devastation.

3.7       EXPERIENCE AND PRACTICES ARISING OUT OF MIECs

Good practices are dynamic citizen participation and committed leadership would be of use to any present and future project’s success. They referred pretty much to their experience and practice in the past CDF and Commune Investment Plan (CIP) projects. These could be of use for the possible future MIECs and the like.

CHAPTER 4   MINING FUND MANAGEMENT (MFM)

4.1       CITIZEN’S KNOWLEDGE, ATTITUDE, AND PRACTICE (KAP)

The lack of knowledge about the MF has been highly prevalent in almost all the areas studied, despite years of mining operations thereof. A strong curiosity of this fund and its usages for the collective interests of the communities were demonstrated and insisted. Recognizing the MF’s importance and usefulness and the necessity for community participation, the communities felt welcome and open-minded to it amid calls for a prior proper dissemination. If time is given, they’d submit requests or proposals to get such a fund for mostly local physical infrastructure, such as roads, electricity system installation, and irrigation systems and so on.

4.2       APPROACHES TO THE MFM

Many of the communities has had no idea of how the mining management cycle should look like, as a result of no dissemination or improper dissemination in especially the non-recipient communities and the communities whose MF requests or proposals have been pending. The approach employed by the MME was depicted on 2.2 above. Interestingly, only one recipient community could explain the approach in their way of understanding. No dissemination applies very much to Stung Treng and the South-western provinces. Improper disseminations applied very much Kampong Speu and Kampong Cham. To the first place, the District Governor hinted the availability of MF with unknown figure and encouraged the CCs to submit a request through him, in an inter-commune Mapping Workshop; to the second place, the Provincial Governor revealed almost the same story and even frightened the CCs to submit the request or he’d transfer the MF for development work in other commune, in a meeting focused on other mater than the MFM topics. Despite their legal roles to promote the use of MF by the Commune/ Sangkat Administrations, the governors should have not performed that way as it has kept them doing the wrong things again over and anticipating for nothing – according to many respondents. 

4.3       CHALLENGES ENCOUNTERED AND COPING STRATEGY

With exception to Ratanakiri, poor citizen participation is a main concern in managing and implementing any local project in many of the areas studied. Interestingly, the community in this province possesses a low level of literacy.

To address the concerns, both community leaders and commune workers in the North-Eastern provinces cited about committed leadership with role model; those in the Central Mekong and South-Eastern provinces raised a coping strategy by training key persons to pass on the issues to their fellows, holding local meetings, and playing loud-speakers across their communities.

4.4       ROLES AND RESPONSIBILITIES OF STAKEHOLDERS IN THE MFM

According to the vast majority of respondents, issuing notice on the MF, appraising the request/ proposal, disbursing the MF, and monitoring and evaluating the project should be the role of the MME; designing, selecting a priority project, writing and submitting request/ proposal should be those of NGOs/ CSOs; appraising and approving the request/ proposal be those of the MME and PDoMME; monitoring and evaluating be those of the MME, PDoMME, NGOs/ CSOs, and CCs/ LAs; managing the contract be that of the CLs and the mining companies; arbitrating a conflict arising out of the project management and implementation be those of the CCs/ LAs, NGOs/ CSOs, PDoMME, and MME.

4.5       SIGNIFICANT CHANGES ARISING OUT OF MFM

The MFM would aim at improving physical infrastructures at the local level, especially areas nearby the mining operating site.

4.6       POLICY GAPS WITHIN THE MFM

Legally, the mining company holds accountable to the community affected like the village of Veal Denh. Under the text of what the MF is, it stipulates the necessity to create a harmony between the company and the community. As discussed in C.6 above, these have not happened in reality – even a positive timely response to the CCs and community leaders. This shows an issue of accountability and harmony which legally stipulates. The mining has been ongoing and royalties have been paid by the company to the MME, but none of the community members and leaders has been aware of how much the MF has been accumulated till the time of study. This shows an issue of transparency in the MF information. 

4.7       EXPERIENCE AND PRACTICES ARISING OUT OF THE MFM

Some experience and good practices were found arising out of the MFM: 1). Public forums focusing on the MF, Mining Technical Specifications, and in case of incompliance with the specification, Citizens’ Cooperative Reporting to the MME have facilitated a smooth mining operation in which local residents’ safety and security were ensure in Ratanakiri and Kampong Cham; and 2). Committed leadership with role model applied in the CDF and CIP projects, as discussed in 3.7 above, can be of great use to the possible future MFM.

CONCLUSIONS AND RECOMMENDATIONS

Based on the discussions above, the following key conclusions and recommendations are made.

1. CONCLUSIONS

A.1 Brief Overview

Following its initiation by the MME in 2015, the MF came to existence for contributing to the state’s revenue as well as community development. However, only slightly above one-fourth of the MF has been released up to the time of this study, for a number of reasons including the unexceptional impact of COVID-19. To this fact that not many of the affected communities have had access to the MF. As such, ANSA commissioned this qualitative feasibility study which was made of all the case studies – national and regional. Nationally, the study cover Cambodia’s the North-Eastern, Central Mekong, to South-Western regions, with each being differently characterized to represent at least much of the issue.

A.2 Brief Situation of the Studied Areas, Mining Operations, and Their Ill Effects

The North-Eastern region possesses a great deal of natural/ mineral resources and biodiversity amid beautiful landscapes and attractive historical/ cultural sites. It’s been resided by sparse population mainly made up of indigenous groups with a low level of literacy. They rely chiefly on traditional farming, accessing to the non-timber forest products (NTFPs), and agro-industry including casava and rubber plantations. Despite its potential trade exchanges with the neighbouring countries (Vietnam and Laos), economy remains very poor. The South-Western region possesses less greater deal of the resources, but much greater deal of historical/ cultural sites and economy amid most intense populations relying on agricultural production and garment industry. The Central Mekong region possesses least quantity of the resources and historical sites. Its most populated residents rely on traditional farming activities partly on the Mekong delta and partly on red fertile soils. The residents of these last two regions possess a higher level of literacy.

The gold, marble, quarry and sand mining operations and their ill effects were studied:

• The gold mining operation affected initially safety and security of the residents, local governance and farming activities where some of them lost farmlands. Later, these were slightly eased by promise of development fund package by the mining company. Fortunately, this community has received the MF for a road project introduced by the MME.
• The marble mining operation has affected some farm lands belonging to the community members, road damages by hauling-trucks, and dusts by how the marbles have been excavated, cut, and transported. The mining company has had almost no relationship with both the community and the local government, despite its promise of development package from the outset.
• The quarrying operation has negatively affected on the community forest, environment and agricultural production. A plot of community forest where people used to access for the NTFPs was given for the quarrying; dust and sound from the mining site with a high level of security; water running through the site polluted the fields and their neighbourhoods; the hauling-trucks damaged the roads created dusts into the airs from which humans and animals absorbed. No relationship has been built between the company and the community.
• The sand mining operation in the South-Western region has negatively affected on environment (dust and noise), farmlands (erosion), roads (dusty and muddy), and local governance (hostility within stakeholders); the operation of this kind in the Central Mekong has limited local access to fishing areas and sand collection for homestead consumptions), scared them of possible collapse of the river banks where some residences and farmlands are located. No relation has been built between the company and the community, as the operation was technically taken place far into the river’s centre.

A.3 Brief Status of the MIECs

With relation to the MIECs, the vast majority of the residents have had limited awareness of what mines and mining (legal and illegal) are, and who own and control them, as a result of the total lack of dissemination by any institution. Consequently, illegal mining activities have taken place, despite police crackdown years ago in other areas; interestingly, indigenous groups in the North-Eastern region have misinterpreted between the legal and illegal mining that could devast the mineral resources. In this regard, some appropriate articles (41, 50 and 58) of the Constitution of Cambodia are worth passing on to them, to best maximize their awareness of legal mining frameworks and their duty as good citizens whilst minimizing such as devastation. The suggested approach is to train local persons on the frameworks so as to pass on to the community as a whole, either through local meetings, playing loud-speakers or employing indigenous hierarchical structures, depending on wherever or whenever best possible. In this particular mater, appropriate roles of stakeholders, such as MME/ PDoMME, CSOs, CCs etc., are worth taking into account with regard to the level of citizen participation and literacy amid local committed leaderships with role-model; successful approach to the past CIP and CDF projects could be of great use to the possible future MIECs.

A.4 Brief Status of the MFM in Comparison with Grant Management Experience by NGOs

despite years of mining operations at the communities, the lack of knowledge of the MF is highly prevalent amongst the vast majority of the respondents, amid absence of proper dissemination. However, they demonstrated a strong curiosity of this fund and its usages for the collective interests of the communities. Furthermore, they recognized the MF’s importance and usefulness, and the necessity for community participation, feeling welcome and open-minded to it amid calls for a prior proper dissemination. If time is given, they’d submit applications to get such a fund for mostly local physical infrastructure, such as roads, electricity system installation, and irrigation systems and so on. The MFM gets through a three-phased procedure, with each detailing tasks to be delivered under legal framework: a). Raising a Project; b). Procurement; and c). Paying the Project’s Expenditure. A total of 12 forms has to be filled out and attached with the application. The NGOs attested a number of step-by-step processes each of which is with a defined timeline: a). Calling for Proposals detailing about legible institutions to submit for a range of minimal and maximal fund amount and how to submit in a defined timeline; b). Proposal screening and short-listing; c). Proposal appraising and approving/ disapproving; d). Project implementation; and f). Project monitoring and evaluation. 

The approaches by both the MFM and the NGOs look almost similar. However, what significantly different are that, Calling for Proposals and Raising a Project, the NGOs specify the amount range of grant to be proposed in a defined timeline whilst the MME does not inform about the MF availability for application submission, and processing and approval deadlines. As such, accessing to NGO funds seems to be easier than that to the MF, with regard to the availability and application processes and approval within defined deadlines. The potential applicants cited not only about difficulty filling out the forms, but also about the lack of application information.

To summarize, there has been a high Demand for the MF, but a low Supply. This means that the communities do need the funds, but the MME can respond to a very limited number of applications submitted by an extremely minimal number of the applicants. Due partly to the impact of COVID-19 like with other institutions worldwide, the MME has not been able to do much about the dissemination for the last two years. Furthermore, capacity of the applicants has been an issue. As such, only such limited amount of the MF has been released or disbursed. To improve the supply, roles and responsibilities of stakeholders in the MFM are suggested: Issuing notice on the MF, appraising the request/ proposal, disbursing the MF, and monitoring and evaluating the project should be the role of the MME; designing, selecting a priority project, writing and submitting request/ proposal should be those of NGOs/ CSOs; appraising and approving the request/ proposal be those of the MME and PDoMME; monitoring and evaluating be those of the MME, PDoMME, NGOs/ CSOs, and CCs/ LAs; managing the contract be that of the CLs and the mining companies; arbitrating a conflict arising out of the project management and implementation be those of the CCs/ LAs, NGOs/ CSOs, PDoMME, and MME.

Public forums focusing on the MF, Mining Technical Specifications, and in case of incompliance with the specification, Citizens’ Cooperative Reporting to the MME, have been an interesting sign for a smooth mining operation in which local residents’ safety and security are ensured; and 2). Committed leadership with role model applied in the CDF and CIP projects can be of great use to the possible future MFM. It is good have the legal framework for mining company-community harmony and company’s accountability to the community. In reality, only one company has abided by the framework; other evaded and the rest created hostility. This entails reinforcement of the framework with many other mining companies.

1. RECOMMENDATIONS

• Interested stakeholders, such as NGOs/ CSOs and MME/ PDoMME, should best explore possibility to organize courses on Training of Trainers on Mines and Mining (quoting from appropriate articles the Constitution of Cambodia) for to selected number of CCs and CLs, so they pass on the knowledge to their community fellows. This would best maximize the knowledge for better practices on mining operations whilst preventing illegal exploitation. Approaches to passing on the knowledge to community as a whole should employ to meet the level of citizen participation and literacy; to indigenous groups, their traditional hierarchical structures (Elders and Village Centres) be strongly deemed and applied;

• With regard to the MF, the MME/ PDoMME and NGOs/ CSOs should work closely to best possibly improve the supply to respond to the demand by the communities, with each playing the roles and responsivities suggested. Expanding contents of the current Guideline to the MF, with regard to the MF’s information, application submission, processing and approval timelines and deadlines is worth taking into account the capacity of applicants.

• The public forums focusing on the technical specifications, the MF, and citizens’ cooperative reporting in case of mining violation, should be further organized by the MME in other mining areas in order to ensure safety and security of the residents whilst gaining their cooperation for smooth management and implementation of the MF projects and lessening any ill effect. This should be made possible prior to any mining operation; and

• The guidance on harmony and accountability should be ensured from the mining operation’s outset to completion. Stakeholders such as the mining companies and communities should be fully and actively involved in concerned meetings, forums, and the like, so they can interact and make friends. Their friendships could have a positive impact on their performances.

ANNEXES

1. Case Study Report of Yatung Commune, O’yadav District, Ratanakiri Province (Singha, July 2022)
2. Case Study Report of Anlong Chrey Commune, Thalabarivath District, Stung Treng Province (Singha, July 2022)
3. Case Study Report of Rokar Ar Commune, Kang Meas District, Kampong Cham Province (Emy & Singha, June 2022)
4. Case Study Report of Mohasang Commune, Phnom Sruoch District, Kampong Speu Province (Emy & Singha, June 2022)
5. Case Study Report of Popeil Commune, Tramkak District, Takeo Province (Emy & Singha, July 2022)
6. Regional Case Study Report (Emy & Singha, June 2022)

REFERENCES

1. Guideline to Mining Fund for Local Community Development
2. Constitution of Cambodia