Lao People's Democratic Republic: Roads for Rural Development

Sovereign Project | 30271-013

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Project Name Roads for Rural Development
Project Number 30271-013
Country Lao People's Democratic Republic
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2085-LAO: Roads for Rural Development
Asian Development Fund US$ 17.70 million
Loan 8217-LAO: Roads for Rural Development
OPEC Fund for International Development US$ 6.00 million
Loan: Roads for Rural Development
Nordic Development Fund US$ 7.30 million
Strategic Agendas Inclusive economic growth
Drivers of Change Knowledge solutions
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming Some gender elements
Description The Project objective is to assist in the completion of the road network and to connect rural areas with the national economy. The Project will (i) rehabilitate about 290 kilometers (km) of selected roads to remote rural regions, (ii) provide supplementary funding for road maintenance, and (iii) execute a project for improvement of road safety.
Project Rationale and Linkage to Country/Regional Strategy The areas served by the rural roads proposed for upgrading are among the poorest in the Lao PDR in terms of access to health care, education, and other services. Each road selected will improve access to one of the priority 47 poorest districts in the country. Most of the local populations in the project area have high levels of disease, malnutrition, and illiteracy. Few areas have access to safe water, sanitation, and electricity. The Project will relieve the isolation of these areas by reducing cost and time for travel, and eliminating the disruption of traffic during the wet season. That will enable continuous trade and economic exchange, and nondisrupted access to schools, medical facilities, and other social and civil services. The Project components are consistent with the priorities agreed to in the Government of Lao PDR's National Poverty Eradication Program, the Asian Development Bank's (ADB) Medium-Term Transport Strategy for the Lao PDR, and the draft Northern Region Infrastructure Development Strategy currently under preparation through an ADB technical assistance (TA).
Impact Facilitate economic and social integration of isolated areas and populations to promote overall economic growth and poverty reduction
Project Outcome
Description of Outcome Increase access to all-year road transport that is adequate, reliable, affordable, and safe in remote rural regions
Progress Toward Outcome Roads to remote rural regions were improved and can be accessed to all-year road transport with significantly reducing travel time; and road safety program was improved and being implemented by the Secretariat to National Road Safety Council (NRSC).
Implementation Progress
Description of Project Outputs

1. Roads to remote regions rehabilitated;

2. Affected people resettled and fully compensated

3. Periodic maintenance performed through Road Maintenance Fund

5. Project preparation services provided

6. Strengthened social and environmental management

7. Implementation of road safety program commenced

4. Social Action Plan Implemented

Status of Implementation Progress (Outputs, Activities, and Issues)

(1) 226.2 km and 61.1 km of roads were rehabilitated with DBST and gravel course, respectively, and can be accessed to all year round.

(2) Resettlement and compensation plan were impletemented and all 180 affected persons (APs) compensated in 2009.

(3) 139 km of national road 2W including drainage systems were maintained in 2008 under the project. Currently, the project roads are being maintained by local private construction companies under performance based contracts for 3 years period for the periodic and routine maintenance.

(5) Bidding documents for 155.8 km roads prepared. Design and bidding documents were prepared for Route 4: Northern GMS Transport Network Improvement Project (G0082) which is now under construction.

(6) The training program to Social and Environmental Division (SED) in MPWT and provincial DPWTs was timely provided. Currently their roles are to monitor activities related resettlement, HIV/AIDS prevention and environmental protection under projects financed by ADB and other development partners.

(7) National Road Safety Council established in Nov. 2006 and secretariat engaged in Jun. 2008. Road accident data information system which was developed by the consultant during the implementation period and was not functioning since the completion, and to date it was fixed by the Road Safety Consultant for G0082-LAO, who previously developed the system.

(4) Social Action Plan was satisfactorily implemented; the target communities and mobile groups have increased their awareness on HIV/AIDS and sexually transmitted diseases, human trafficking prevention, and road safety; and the provincial and district authorities launched various campaigns on road safety policy and regulations.

Geographical Location Borikhamxay, Attapeu, Vientiane and Sayaboury provinces
Safeguard Categories
Environment B
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects EMP and CEMP were prepared and approved. The environmental mitigation was being done under all civil work contracts. Social and Environment Division (SED) and consultant carried out the first environmental monitoring by June 2008 and completed in August 2008.The report was submitted to ADB in Feb 2009. The second environmental monitoring was carried out by local consultants jointly with SED and ADB-LRM Environmental Consultant in March 2010 and the report was submitted to ADB in June 2010. There was no adverse environmental impact.
Involuntary Resettlement RP fully impletemented. The compensation was fully implemented and most affected villagers are satisfied (i) with the road improvement that will help them earning more benefit and accessing to public service all year round; and (ii) with compensation provided by the project in cash.
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design All the concerned stakeholders have participated in the design stage.
During Project Implementation All the stakeholders and communities have been involved during the implementation period, and all the activities under social action plan were fully implemented by the project consultants.
Business Opportunities
Consulting Services About 188 person-months of international consultants and about 1589 person-months of domestic consultants will be required to assist in (i) construction supervision, including implementation of the community safeguards, resettlement and ethnic minority development plans, and environment management program; (ii) project performance monitoring and evaluation; (iii) project preparation services, including preparation of feasibility studies, resettlement and ethnic minority development plans, and detailed engineering designs; (iv) social and environmental impact administration; (v) developing and implementing a road safety program; (vi) implementation of a Social Action Plan for local resource management, non-formal education, road safety awareness, and HIV/STD/trafficking awareness and prevention programs; and (vii) gradute education for environmental/social staff. The consultants are expected to be recruited as an association of international and domestic firms engaged by the Government. The consultants will be recruited in accordance with ADB's Guideline on the Use of Consultants and other arrangements satisfactory to ADB on the engagement of domestic consultants, or, for services to be funded by the Nordic Development Fund (NDF), in accordance with recruitment guidelines for NDF. Funding of consulting services by NDF is subject to approval by the NDF Board and the satisfactory conclusion of a loan agreement. The services have been divided into four packages as follows: (i) Construction Supervision, Projection Preparation and Social Action Plan Consultant. Recruitment for this package of services will be based on NDF guidelines; (ii) Strengthening Social and Environmental Impact Administration. Recruitment for this package of services will be based on procedures for the recruitment of individual consultants; (iii) Road Safety Program. Recruitment for this package of services will be based on NDF guidelines; and (iv) Graduate Education for Environmental/Social Staff. Recruitment for this package will be based on direct selection by MCTPC of appropriate courses from an established institution of higher education.

Procurement of all civil works contracts will be in accordance with ADB's Guidelines for Procurement. Bidding will follow international competitive bidding procedures. The contractor will be selected from prequalified bidders. Bidding for civil works contracts of $1 million or more will be by prequalified bidders, and will follow international competitive bidding procedures. Contracts for civil works of less than $1 million, and all periodic maintenance contracts, will be through local competitive bidding procedures. The Government's standard bidding documents, if acceptable to ADB, will be used. ADB has reviewed and accepted these documents for other projects.

Equipment for vehicle weigh stations has been procured under the Project throught Shopping. These procedures are justified given (i) the low value of the contract, about $100,000.

The identification, administration, and supervision of periodic maintenance contracts will follow RMF procedures that are acceptable to ADB. Local state-owned contractors that bid must be legally and financially independent, and must operate under commercial laws.

Responsible ADB Officer Phomma Chanthirath
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Lao Resident Mission
Executing Agencies
Ministry of Public Works and Transportation(MPWT)
P.O. Box 6580
Lao People's Dem Republic
Concept Clearance 08 Mar 2001
Fact Finding 21 Apr 2003 to 02 May 2003
MRM 27 Oct 2003
Approval 28 Jun 2004
Last Review Mission -
PDS Creation Date 10 Jan 2011
Last PDS Update 29 Mar 2013

Loan 2085-LAO

Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Jun 2004 15 Dec 2004 30 Jun 2005 30 Jun 2012 31 Dec 2012 17 Jun 2013
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 33.20 Cumulative Contract Awards
ADB 17.70 28 Jun 2004 18.08 0.00 96%
Counterpart 8.20 Cumulative Disbursements
Cofinancing 7.30 28 Jun 2004 18.80 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Loan 8217-LAO

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 6.00 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 6.00 - 0.00 0.00 %
Title Document Type Document Date
Roads for Rural Development Project Project/Program Completion Reports Mar 2014
Road for Rural Development Procurement Plans Oct 2012

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Roads for Rural Development Project: Summary Resettlement and Community Development Plan Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Sep 2004
Roads for Rural Development Project Summary Initial Environmental Examination Jan 2004

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Lao People’s Democratic Republic: Roads for Rural Development Project Validations of Project Completion Reports Dec 2014

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