4. The Community Livelihood Fund

THE COMMUNITY LIVELIHOOD FUND

1. Activities eligible for community livelihood fund grant funds will include, but will not be limited to, those described below: (i) Social infrastructure. The cost limit for each village is $20,000 (refer to Table A4.1). The participatory livelihoods analyses conducted during project preparation showed high priority for improvement of water supply and sanitation, rehabilitation and enlargement of schools, provision of houses for teachers, and construction of small village facilities (e.g., community meeting rooms, fish processing sheds and drying platforms, small produce stores, small markets, and solar power supply for public buildings). New road construction is a special case that would require clearance by the Ministry of Environment. (ii) Income generation. Grants for income-generating activities will be available to groups and individuals. Non-rice agricultural income-generating activities include improved horticultural production using production of pigs and drip irrigation. Financing of processing and marketing may be applied to improved techniques for (a) drying, smoking, and fermenting fish; (b) producing fermented fish paste (prahoc);1 (c) packaging and marketing dried and shelled shrimp; (d) producing, packaging, and marketing fish sauce; and (e) bulk fish purchasing and marketing. Grants will be available for small-scale industries that would employ relatively large numbers of people such as repair and maintenance of electrical and other appliances, production of basketry and other products using bamboo, rattan, hyacinth, and other non-timber forest products; and production of honey. In support of income-generating activities grants could also be used for skills training (e.g., food processing and other vocational training) or for more general education such as adult literacy. Applications would need to show that at least 25% of the beneficiaries of grants are poor. (iii) Support to community fisheries. The community livelihood fund grant funds may also be used to support the implementation of community fisheries management plans, prepared under component 2 of the Tonle Sap Environmental Management Project,2 that have been approved by the Department of Fisheries in the Ministry of Agriculture, Forestry, and Fisheries. This supplementary assistance to community fisheries will enable communities to establish fish sanctuaries and administrative facilities, procure boats and other necessary equipment, and expand the range and frequency of monitoring of illegal fishing practices.

1 Prahoc is made from small low-value fish such as trey riel. After the fish are washed, the head and scales are removed, the fish are salted and dried for a few days, and then the fish are stored in large ceramic pots to ferment.

The protein in prahoc is more digestible than that in fresh fish. Prahoc is thus an excellent food for the elderly and the young. It is the main product made from excess fish. Families work together and businesses that make and sell prahoc hire many temporary workers. 2 ADB. 2002. Report and Recommendation of the President to the Board of Directors on a Proposed Loan to the

Kingdom of Cambodia for the Tonle Sap Environmental Management Project. Manila.

Table A4.1: Eligibility Criteria for Community Livelihood Fund Activities

Type of Investment Criterion Certifying Agency

Any activity financed by the community livelihood fund - High priority accorded by community in the village development plan - Inclusion in the commune development plan - Not expected to have adverse environmental effects - Compliance with applicable environmental, legal, and other requirements of the country and with the environmental assessment requirements of the Asian Development Bank - Does not disadvantage any part of the community - Demonstrable benefits to the poor, women, ethnic minorities, or other vulnerable groups - Entails only legal activities. - Does not affect cultural heritage sites - Commune planning and budgeting committee - Commune council

Social infrastructure - Total cost not to exceed $20,000 per village - Technical, financial, and economic feasibility - Road construction requires special clearance from the Ministry of Environment - Commune planning and budgeting committee

Income generation - Each grant not to exceed $5,000 - Financial feasibility of the business plan. - Enterprise would employ a significant number of persons - Improved technology successfully demonstrated and financially feasible

Support to community fisheries - Cost of each community fishery grant not to exceed $5,000. - Supported by a majority of the members of the community fisheries. - Commune planning and budgeting committee

- Commune planning and budgeting committee - Department of

Fisheries

Source: Asian Development Bank estimates.