Comparative Analysis of Water Sector Reforms
Tracking Progress in Asia and the Pacific
Phase 1- Assessing Water Sector Policies and Reforms - Country Briefs
Lao People's Democratic Republic
The Government has introduced many economy-wide policy reforms in recent years, in response to economic conditions and development needs. These include, for example, opening the way for private sector engagement and decentralising responsibilities to sub-national levels. There has been considerable technical assistance from international organizations (IOs) to introduce water sector reform and institutional change, although slow progress has been made in some areas. Financial resources are very limited, so that most development investment, rehabilitation and some recurrent costs have been met by IOs.
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NATIONAL POLICIES AND REFORMS
Good progress has been made in water sector review, policy development and planning, and in establishing a modern legal basis, although implementation of some aspects of reform, particularly with regard to coordination, is taking more time to action.
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WATER RESOURCES MANAGEMENT
Progress in this area is mixed. There has been good progress in such aspects as improved flood mitigation measures and avoidance of adverse environmental/social effects of development, in which the country has benefited from the incorporation of good practice into projects funded by IOs. In other areas, such as the availability of data for design and operational purposes, mechanisms for water allocation, or the management of water quality and wastewater, progress has been weaker. Decentralisation of responsibilities to sub-national bodies requires the building of management capacity, which will take time.
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IMPROVING WATER SERVICES
Because of limited financial resources for O&M and investment, service coverage and quality has been declining, but funding from IOs is enabling water services to be extended and improved. Water-related infrastructure has been a state responsibility, but engagement of beneficiaries through CBOs - particularly for O&M - is incorporated into current projects, as a means of achieving system sustainability. Facilities are being transferred to communities and Water User Associations; the process will take time to implement. There is limited engagement of the private sector in water services, except for community groups and individual water users.
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CONSERVING WATER
There is a tradition of state provision of services, with heavy subsidies and tariffs that are set at "affordable" levels that are inadequate to cover costs. Cost recovery is accepted in principle but implementation is at an early stage, particularly via IO-funded projects, and there is strong community unwillingness to pay for services.
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PROMOTING REGIONAL COOPERATION
Lao PDR is a signatory to the Mekong River Agreement, which provides a valuable vehicle for cooperative activities and resource management in the basin. The Lao National Mekong Committee is active, but the ability of Lao PDR to promote arrangements to equitably manage shared Mekong resources is limited by its size and position.
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FOSTERING PARTICIPATION; CAPACITY BUILDING; NETWORKING
Progress is being made promoting community participation in water projects, particularly those funded by IOs. The tradition of state management of resources and provision of services is being modified to provide more opportunity for government-community partnership (including opportunity for the involvement of women). Capacity building at all levels is a key element of current projects, but is very limited otherwise. Networking provides benefits largely to water professionals engaged in the projects/programs of MRC and other IOs.
Sectors and Themes 
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