Projects

Project Information

Second Education Quality Improvement Project

Country

Lao People's Democratic Republic (Lao PDR)

Borrower

Lao People's Democratic Republic (Lao PDR)

Project Description

The Project will help enhance the quality of education by improving teacher competencies and the learning environment, and increasing access to and participation in primary education in targeted underserved areas. The Project will also help strengthen the country's capacity to manage the decentralized education system.

Cost Estimates

The total cost of the Project is estimated at US37.6 million equivalent, including taxes and duties, physical and price contingencies, and interest charge on the loan. The foreign exchange cost is estimated at US$13.2 million, or 35 percent of the total cost, and the local currency cost at US$24.4 million equivalent, or 65 percent.

Financing Plan

($ million equivalent)
Source	Foreign Exchange	Local Currency	Total	Percent
ADB	8.4	11.6	20.0	53
Sida	4.8	4.8	9.6	26
Government and Communities	-	8.0	8.0	16
Total	13.2	24.4	37.6	100

Loan Amount and Terms

The Asian Development Bank (ADB) will provide a loan of US$20 million equivalent from its Special Funds resources, with a term of 32 years, including a grace period of 8 years and an interest charge of 1.0 percent per annum during the grace period, and 1.5 percent thereafter. The Swedish International Development Cooperation Agency (Sida) is expected to provide a parallel grant of about US$9.6 million to cofinance the Project.

Period of Utilization

Until 30 June 2008

Executing Agency

Ministry of Education (MOE)

Procurement

All ADB-financed procurement for the Project will be in accordance with ADB's Guidelines for Procurement. Each contract for supply of goods, equipment, and materials estimated to cost US$500,000 or more will be awarded on the basis of international competitive bidding procedures, while contract packages of less than US$500,000 equivalent will follow international shopping procedures. Contracts less than US$100,000 may be procured on a direct purchase basis. Civil works contracts that are small and situated in remote areas are not likely to attract the interest of international contractors. Therefore, civil work contracts less than US$1.0 million will be awarded on the basis of local competitive bidding procedures acceptable to ADB. However, if any package is estimated to cost US$1.0 million or more, international competitive bidding procedures will be followed. For minor civil works to improve school buildings and facilities to be carried out by local communities costing less than US$10,000 equivalent per school, appropriate procedures satisfactory to ADB for community participation in procurement will be implemented.

Consulting Services

About 205 person-months of international consulting (47 person-months financed by ADB and 158 person-months by Sida), and 1,671 person-months of domestic consulting (1,512 person-months financed by ADB and 159 person-months by Sida) will be engaged to support capacity building at the MOE technical departments, PESs, and DEBs involved in Project activities. Local contract staff will be engaged for a total of 1,014 person-months to support project implementation (678 person-months financed by ADB and 336 person-months by Sida). All consultants and local contract staff financed under the ADB loan will be selected and engaged by the Government through a firm in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB on the engagement of domestic consultants. Sida-financed consultants will be engaged by Sida according to Sida procedures.

Estimated Date of Completion

31 December 2001