VZCZCXRO0545
OO RUEHHM RUEHLN RUEHMA RUEHPB
DE RUEHPF #0955/01 1391004
ZNR UUUUU ZZH
O 191004Z MAY 06
FM AMEMBASSY PHNOM PENH
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6693
INFO RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE IMMEDIATE
RHHMUNA/HQ USPACOM  IMMEDIATE
RUEHRC/DEPT OF AGRICULTURE WASHDC IMMEDIATE
RUEAUSA/DEPT OF HHS WASHDC IMMEDIATE
RUEHPH/CDC ATLANTA GA IMMEDIATE

UNCLAS SECTION 01 OF 02 PHNOM PENH 000955 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EAP/MLS, OES/IHA DANIEL SINGER AND NATALIA 
COMELLA, AND CA/OCS/ACS ELIZABETH RYAN 
HHS FOR WILLIAM STEIGER, OFFICE OF INTERNATIONAL HEALTH 
GENEVA FOR RMA 
BANGKOK FOR ESTH--JIM WALLER AND DAN KIEFER 
 
E.O. 12958: N/A 
TAGS: AMED EAGR KFLU SENV CB
SUBJECT: CAMBODIA/AI:  WORLD BANK PLANS TO FUND 
COMPENSATION FOR CULLED BIRDS 
 
¶1.  SUMMARY.  Prime Minister Hun Sen has agreed in principle 
to a World Bank-funded effort to provide compensation for 
culling birds in areas affected by confirmed cases of H5N1 
avian influenza.  The proposed program would compensate small 
farmers approximately one dollar per bird; large commercial 
farmers would not be eligible for compensation.  Biosecurity 
training would be available to all farmers in affected areas. 
 Given that Cambodian farmers typically rush to sell sick 
birds before they die, an effective compensation program is a 
critical part of the battle against avian influenza in 
Cambodia.  END SUMMARY. 
 
World Bank Plan 
--------------- 
 
¶2.  During recent discussions between World Bank Animal 
Health Officer Murray MacLean and Emboffs, MacLean reported 
that the Prime Minister's office is sending encouraging 
signals about a proposed World Bank plan to compensate 
farmers for culled birds as a part of the Bank's 
approximately USD 11 million Cambodia Avian Influenza 
Emergency Project.  The draft plan calls for small hold 
farmers to receive 4,000 riel (approximately one US dollar) 
per culled chicken or duck in accordance with pre-defined 
criteria.  These farmers, who typically have 5-20 head of 
poultry, would also receive village-based bio-security 
training.  Large commercial farmers will receive no 
compensation, but will receive bio-security training. 
Compensation for small-scale commercial duck farmers (e.g. 
those with 100-300 ducks in rural locations) is proving the 
most difficult sticking point.  While these farmers do not 
typically have the financial resources to weather a culling 
of their flock, the government remains concerned about the 
financial implications of committing to compensation for 
farmers with larger numbers of animals. 
 
¶3.  The RGC's position on compensation for culled birds has 
been rather fluid, MacLean noted.  Initially the government 
refused to offer compensation, then said they would prefer 
compensation with live chicks.  Now, as a result of a visit 
by the World Health Organization Regional Director and a 
follow-up letter to the Prime Minister, the government has 
agreed to cash compensation.  Government officials reportedly 
expressed frustration at donors who pressured the government 
to compensate farmers without offering to fully fund such an 
effort, fearing that they will be left holding the bag for 
the program after donor funds dry up.  They requested that 
donors promise to fund a compensation system as long as avian 
influenza remains in the country, but World Bank officials 
have told them that this would not be acceptable.  MacLean 
noted that while one dollar per bird seems like a small 
amount, the associated costs of running a culling 
compensation program could be high.  For example, the 
on-going surveillance program needed to investigate suspected 
avian flu cases and conduct the culling could run to USD 2-3 
million per year. 
 
¶4.  A key component of the plan is the development of 
criteria for the culling of birds in areas with a confirmed 
H5N1 finding.  Ministry of Agriculture officials will 
determine how far culling should extend from confirmed 
outbreaks.  With these guidelines in place, more than 6,000 
village animal health workers currently in place will explain 
the procedure to farmers in an effort to alleviate concerns 
about the program and encourage reporting of unusual die-offs 
among poultry.  (USAID and the German government are funding 
training for all of the village animal health workers on 
conducting awareness campaigns, building trust in a community 
and encouraging the reporting of unusual poultry deaths, 
taking specimens from suspected poultry, culling and proper 
disposal of poultry, and using disinfectant spray.  This 
training began in November 2005, and 1,500 workers in high 
risk provinces have already completed training.) 
 
¶5.  The total cost of the Cambodia Avian Influenza Emergency 
Project is expected to be approximately USD 11 million over 
three years, though MacLean noted that this could very well 
be extended for a fourth year.  Of the USD 11 million, 
approximately USD 6 million will be devoted to animal health, 
USD 3 million to human health, and USD 2 million to pandemic 
preparedness activities.  The World Bank is sending a Joint 
Appraisal Mission to Cambodia from May 15-27 to formally 
 
PHNOM PENH 00000955  002 OF 002 
 
 
appraise the project, though post notes that the extensive 
efforts and favorable findings of the pre-appraisal team make 
it very likely that the project will be approved.  Approval 
is expected in late June, with activities beginning shortly 
thereafter. 
 
Comment 
------- 
 
¶6.  The World Bank and other multinational organizations' 
efforts to tackle this tricky issue are laudable and deserve 
US support.  While there are legitimate concerns about cost 
and the potential for corruption, such a plan is needed to 
encourage farmers to report unusual poultry deaths.  No 
reports of unusual poultry die-offs preceded either of the 
two human AI deaths that have occurred in the past two 
months.  Currently, Cambodian farmers rush their poultry to 
market at the first sign of unusual deaths, hoping to 
liquidate their assets before they die.  While this strategy 
makes sense in dealing with the relatively common Newcastle 
disease--in which infected poultry can be safely consumed and 
the virus is not transmittable to humans--it could prove 
disastrous in the context of avian influenza.  By focusing on 
small farmers, the World Bank's plan avoids the potential for 
large-scale corruption and targets those farmers who can 
least afford uncompensated losses. 
STORELLA