MoE Releases New Classification of the Environmental Impact Assessment (“EIA”) for Investment Projects

Ministry of Environment - Prakas No. 3591 on the Classification of EIA for Investment Projects

The Ministry of Environment (MoE) has issued a new guideline outlining the required documentation for EIA submissions. Investment projects are classified according to their scale of environmental impact, with corresponding compliance requirements.

This Prakas is pursuant to the definitions set out in the Code on Environmental and Natural Resources, dated 29 June 2023 and the Prakas No. 017 on Environmental Impact Assessment, dated 11 August 1999.

Furthermore, this Prakas replaces and abrogates Prakas No. 021 dated 03 February 2020 on the Classification of the EIA for Investment Projects.

While the requirement for environmental assessments has existed under previous regulation (i.e., Prakas 021), Prakas No. 3591 introduces clearer classification criteria by industry and project scale, along with defined review timelines for each type of submission. It also expands the scope by including 141 new investment activities that now fall under Environmental Impact Assessment or Environmental Protection Agreement requirements. These updates aim to improve transparency and consistency in how environmental impacts are assessed.

The Ministry has established procedures for submitting EIAs based on the environmental impact scale of investment projects.

This Prakas applies to both existing and new investment projects, ranging from low to high environmental impact. The required forms for EIA submissions include:

• Initial Environmental Impact Assessment (“IEIA”)

• Environmental Impact Assessment (“EIA”)

• Environmental Protection Agreement (“EPA”)

• Environmental Management Plan (“EMP”)

Compliance with reporting requirements enables the Ministry to provide informed guidance to enterprise owners and effectively assess environmental impact across investment projects.

Regulatory Compliance:

Environmental Impact Level Required Submission Review Timeline
Low EPA and EMP 30 working days from receipt of application and supporting documents
Medium Initial IEIA 60 working days from submission. This period is invalidated if the Ministry issues feedback, regardless of approval, rejection, or required corrections.
Medium and High Full EIA 90 working days from submission. This period is invalidated if the Ministry issues feedback, regardless of approval, rejection, or required corrections.

Commentary

The MoE has introduced new regulations on environmental impact reporting for investment projects to enhance transparency in assessing their effects on the environment and public welfare. The classification of criteria for environmental impact across different investment types is outlined in Prakas 3591.

As a trusted professional firm, KPMG Cambodia is pleased to discuss how these updates may impact your business. For more information or any related inquiries, please feel free to contact us.