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Lao People's Dem Rep
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LOAN: LAO 33359-03
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Banking Sector Reform Project
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Location
Nationwide
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Sector
Finance /Banking Systems
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Initial Listing
28 March 2001
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Most Recent Update
19 February 2007
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Executing Agency(ies)
Bank of the Lao People's Democratic Republic
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- Missions
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| TA Fact-Finding |
Loan Fact-Finding |
Pre-Appraisal |
Appraisal |
| 3-13 Jul 2001 |
27 May-5 Jun 2002 |
TBD |
29 Jul-12 Aug 2002 |
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Loan Approval Date
14 November 2002
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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 |
4.00 |
0.00 |
4.00 |
| Cofinancing |
0.00 |
0.00 |
0.00 |
| Borrower |
0.00 |
0.00 |
0.00 |
| Beneficiaries |
0.00 |
0.00 |
0.00 |
| Others |
0.00 |
0.00 |
0.00 |
| Project/Program Cost |
4.00 |
0.00 |
4.00 |
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OCR |
ADF |
Total |
| Loan Amount |
0.00 |
4.00 |
4.00 |
- Description
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To support the Government's commitment to restructure and reform commercial banking in the Lao PDR, this project will introduce sound commercial banking governance structures by engaging two resident international banking advisors (IBAs) for 3 years for each of the two state-owned commercial banks (SOCBs). An information technology (IT) upgrade will support these new governance structures by enabling improved financial reporting to management, shareholders, and the supervisory authority through more efficient and reliable processing of, and reporting on, transactions throughout the nationwide systems.
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- Thematic Classification
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- Rationale
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The TA loan forms an integral part of the reform program by ensuring three key objectives are achieved: (i) implementation of the recently reiterated commercial mandate of the SOCBs; (ii) strengthened credit discipline in banks and borrowers through a case-by-case approach to NPL resolution; and (iii) a banking sector that is more responsive to the needs of the private commercial sector.
- Objectives and Scope
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The TA Loan will foster improvements in governance of the SOCBs by introducing modern banking policies and procedures. This will be achieved by (i) resolving NPLs through a case-by-case focus on cash recovery and legal action; (ii) ensuring that new flows of credit are secured by cash flows; (iii) introducing a client-and-business orientation in banking relationships, particularly in assisting SMEs to present bankable projects; and (iv) reducing costs through better economies of scale.
- Policy Dialogue
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tbd
- Environment Category:
C
- Environment Impact and Mitigation
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- Social Aspects and Remedies
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tbd
- Benefits and Beneficiaries
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tbd
- Public Consultation
- Arranged by
- Date for Consultation : tbd
- Groups Consulted : tbd
- Beneficiary Participation in Formulation
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tbd
- Beneficiary Participation in Implementation
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tbd
- Consulting Services
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International consultants will provide 108 person-months of consulting services. They will have expertise in bank management and turnaround, credit, asset/liability management, accounting and auditing, human resources, IT, and NPL resolution.
The internaitonal consultants will be four resident banking advisers, each working 9 months per year for 3 years, each supported by local research assistants. The consultants will be recruited individually in accordance with ADB's Guidelines on the Use of Consultants.
- Procurement
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The IT system, including training, will be procured as a single package of $0.5 million to ensure compatibility of the customized IT systems training for the staff. Procurement will be by international competitive bidding in accordance with ADB's Guidelines for Procurement, or any other procurement method acceptable to ADB.
- Contacts
- Bank
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Shigeko Hattori
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Principal Planning and Policy Specialist
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SPPI
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Tel. No.:
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(632) 632-6440
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E-mail:
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shattori@adb.org
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- Executing Agency
- Bank of the Lao People's Democratic Republic
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Contact Person
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Chairman, Bank Restructuring Committee
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Tel. No.
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Fax. No.
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(856-21) 218-326
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E-mail
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ptkongvongsa@yahoo.com
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Contact Person
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Tel. No.
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Fax. No.
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E-mail
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- Remarks
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tbd
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