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Lao People's Dem Rep
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LOAN: LAO 29210-01
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Shifting Cultivation Stabilization
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Location
Xam Neua district of Houaphanh
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Sector
Multisector /Multisector
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Initial Listing
20 February 1995
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Most Recent Update
15 December 2006
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Executing Agency(ies)
Provincial Government of Houaphanh
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- Missions
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| TA Fact-Finding |
Loan Fact-Finding |
Pre-Appraisal |
Appraisal |
| 28 Jan-13 Feb 1997 |
7-28 May 1998 |
TBD |
6-22 Jul 1998 |
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Loan Approval Date
11 May 1999
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Estimated Completion Date
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- Cost and Financing Plan (in US$ million)
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| Source |
Foreign Cost |
Local Cost |
Total |
| Bank |
3.10 |
2.50 |
5.60 |
| Cofinancing |
0.60 |
0.70 |
1.30 |
| Borrower |
0.00 |
1.80 |
1.80 |
| Beneficiaries |
0.00 |
0.10 |
0.10 |
| Others |
0.00 |
0.00 |
0.00 |
| Project/Program Cost |
3.70 |
5.10 |
8.80 |
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OCR |
ADF |
Total |
| Loan Amount |
0.00 |
5.60 |
5.60 |
- Description
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Shifting cultivation or slash and burn cultivation has been a major form of agricultural production in the northern part of Lao PDR, including Houaphanh province, the Project area. However, rapid population growth and in-migration have shortened fallow period from 10-20 years to 3-7 years resulting in decline of crop yields and farm incomes, increased soil erosion, loss of secondary forest, and reduced biodiversity. The Project has been designed to address these problems by introducing diversified sedentary agriculture systems as alternatives to shifting cultivation and by improving socioeconomic status of beneficiaries through integrated area development on a pilot basis. In improving livelihood of shifting cultivators, the Project will take a holistic, participatory, and process approach. If this approach is effective and acceptable to Project beneficiaries, it will be replicated to other parts of the country.
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| Strategic Development Objectives |
- Primary
- Poverty Reduction
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- Secondary
- Sound Management of Environment
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- Rationale
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Villages in the Project areas are universally poor. Access to these villages is often impossible in the west season. Many villages lack the basic community facilities. Subsistence economy based on shifting cultivation in upland areas does not meet household food consumption needs and generates little cash income. Although shifting cultivation, which often combined with opium poppy production, has been sustainable for a long time, relentless population pressure and in-migration have shortened fallow period resulting in the decline of soil fertility, crop productivity and farm income. Slash and burn activities are causing soil erosion on steep slopes and are destroying the forests and increased flooding, siltation of irrigation canals and reservoirs, and damage to road infrastructure in the downstream areas. To address these issues, the Government has included stabilizing shifting cultivation as one of the five priorities in the national agenda. To stabilize shifting cultivation, it is crucial to introduce diversified sedentary agriculture systems, which will replace shifting cultivation. However since, there are no proven technologies that have been introduced to create diversified sedentary agriculture systems as alternatives to shifting cultivation, the Project concept is based on on-site testing of promising technologies and gradual expansion of these technologies in the Project area on a pilot basis. In addition, the Project will support integrated area development to improve the scoioeconomic conditions of the beneficiaries, while creating favorable environment for adoption of new diversified sedentary agriculture systems. This approach will serve as a model, which will be replicated in other parts of the country if it is effective and acceptable to farmers.
- Objectives and Scope
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The objectives of the Project are to improve the income of upland farmers and to conserve natural resources through establishment of diversified sedentary agriculture systems as alternatives to shifting cultivation and provision of basic rural infrastructure. The pilot Project area is covering two districts in Houaphanh Province where shifting cultivation is common. The total number of beneficiaries is estimated at 12,600 (2,100 households) who are mostly poor. The Project has the following components: (i) institutional strengthening and capacity building; (ii) diversified sedentary agriculture systems development; (iii) village-based development; (iv) rural infrastructure development, and (v) Project management.
- Policy Dialogue
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(i) Land allocation for shifting cultivation should be carried out in a sustainable manner; (ii)Establishment of an integrated office for management of land and natural resources; (iii) Community development with assistance of five UN volunteers; and (iv) Coordination with health, Education and Irrigation projects.
- Environment Category:
B
- Environment Impact and Mitigation
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The IEE carried out during feasibility study indicates that there is no significant impact on environment, but appropriate mitigation measures should be included in the rehabilitation of two rural access roads.
- Social Aspects and Remedies
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Village development plan will identify social impact and prepare remedy measures, which will be implemented under the Project.
- Benefits and Beneficiaries
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The Project benefits will be generated through introduction of diversified sedentary agriculture systems, improved road infrastructure, more efficient trading in rural markets, and employment in Project works, which will increase incomes in both the farm and non-farm sectors. Farm income from a typical farm of 1.4 ha is expected to double from Kip1.03 million to Kip2.01 million as a result of the Project. The main beneficiaries will be the shifting cultivators living within the subproject areas. An estimated 12,600 people will benefit from the Project.
- Public Consultation
- Arranged by Borrower
- Date for Consultation : 6-7 Feb 1997, 10-12 Nov. 1997, 9-11 Feb 1998
- Groups Consulted : The socioeconomic survey was carried out using participatory rural appraisal technique in 16 villages during Project formulation.
- Beneficiary Participation in Formulation
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Beneficiaries have been consulted in the workshop in February 1997 during TA fact-finding and in two stakeholders workshops held in November 1997 and February 1998. Beneficiaries will formulate village development plans that will be implemented under the Project.
- Beneficiary Participation in Implementation
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Beneficiaries will participate in the preparation of village development plans, Project implementation, and operation and maintenance. They will provide free labor and local materials for construction of rural infrastructure.
- Consulting Services
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The consultants will be engaged in accordance with the Bank's Guidelines on the Use of Consultants and other arrangements satisfactory to the Bank on the engagement of domestic consultants. A total of 72 person-months of international consultants and 115 person-months of domestic consultants will be required to support Project staff in planning, monitoring, reporting, tender evaluation, and supervision of works; and in implementing Project activities concerned with participation, infrastructure, O&M, land acquisition, and environmental assessment and monitoring; and in developing specialized training programs for diversified sedentary agriculture systems development, animal health, animal nutrition and husbandry, pasture and forage development, fisheries development, agroforestry systems, non-timber forest products, and silviculture. The international consultants will include a team leader/agronomist, a land use planning and land allocation specialist, a marketing specialist, a veterinarian, an agroforestry specialist, a laboratory specialist, a livestock and pasture development specialist, and an environmental specialist. The domestic consultants will include an agronomist, a livestock specialist, an extension specialist, and an environmental specialist.
- Procurement
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Procurement of goods and services will be in accordance with the Bank's Guidelines for Procurement. Since contract packages will be small and scattered over a large area, all civil works will be undertaken through local competitive bidding procedures among prequalified local contractors. Small number of equipment and vehicles will be procured using international shopping, or direct purchase procedures, depending on the size of contracts.
- Contacts
- Bank
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Robin B. Erickson
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Project Economist
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AWAR
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Tel. No.:
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E-mail:
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- Executing Agency
- Provincial Government of Houaphanh
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Contact Person
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Mr. L. Amphay, Project Director
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Tel. No.
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(064) 312031 / (856021) 217383
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Fax. No.
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(064)-312025
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E-mail
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Contact Person
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Fax. No.
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E-mail
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- Remarks
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High priority for the Government.
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Projects 
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