Countries and Regions

	Table of Contents
p. 3 of 4 BACK | NEXT I. Current Development Trends and Issues II. Implementation of the Country Strategy and Program III. Portfolio Management Issues IV. Country Performance and Assistance Levels

Country Strategy and Program 2005-2006: Lao People’s Democratic Republic

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III. Portfolio Management Issues

A. Portfolio Performance

21. Lao PDR is one of the region’s best performers in terms of progress in portfolio management. As of 31 December 2003, 21 out of 23 ongoing projects, or 91.3% of the total, were classified satisfactory, compared to the ADB average of 85.7%. Contract awards reached $34.9 million or 70% of projection in 2003. The disbursement ratio was 19.9%, higher than the ADB-wide average of 16.9% for the Asian Development Fund (ADF). Notwithstanding this sound performance, ADB continued to take measures to improve portfolio performance. The government has begun to address counterpart fund constraints by earmarking 160 billion kip of the budget for counterpart funds for the first time in FY2003–04. The ADB Lao Resident Mission (LRM), working closely with government counterparts, has developed and implemented a counterpart fund monitoring system. ADB’s quarterly and annual portfolio review meetings with the government and joint review missions with cofinanciers continue to prove effective in addressing portfolio performance issues related to quality and submission timing for government’s audited financial statements and compliance with loan covenants. Further planned delegation of project administration activities to LRM will enable more frequent and timely interactions with government counterparts, strengthening portfolio performance.

B. Performance Monitoring and Evaluation

22. Three projects closed during 2003, two of which have project completion reports available, both classified as successful. Of eight projects postevaluated between 1999 and 2003, two loans were classified as highly successful, two as successful, and four as partially successful. No project has been classified as unsuccessful over the past 5 years. The performance audit report on the Northern Provincial Towns Water Supply and Sanitation Project was completed in December 2003. The project was rated partly successful, bordering on successful. A special evaluation study on capacity building technical assistance in the Lao PDR has been completed. Its findings, as well as those of the postevaluated projects, will be appropriately reflected in future operations.

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