Lao People's Democratic Republic: Nam Ngum River Basin Development Sector Project (Additional Financing)

Sovereign Project | 33356-014

Summary

In response to the government's request, the Asian Development Bank approved the additional financing project to consolidate and expand the activities initiated under the current project, Nam Ngum River Basin Development Sector Project. The additional financing project will modify and scale-up the well-performing operations, particularly participatory sub-basin management to strengthen integrated water resources management (IWRM) capacity at the district level, consolidate khet (village cluster) extension service center and village development revolving fund operations, and expand promising agricultural support services to benefit additional villages in remote parts of the Nam Ngum River Basin (NNRB).

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Project Name Nam Ngum River Basin Development Sector Project (Additional Financing)
Project Number 33356-014
Country Lao People's Democratic Republic
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2780-LAO: Nan Ngum River Basin Development Sector Project (Additional Financing)
Asian Development Fund US$ 5.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change
Sector / Subsector

Agriculture, natural resources and rural development - Rural water policy, institutional and capacity development - Water-based natural resources management

Gender Equity and Mainstreaming Effective gender mainstreaming
Description In response to the government's request, the Asian Development Bank approved the additional financing project to consolidate and expand the activities initiated under the current project, Nam Ngum River Basin Development Sector Project. The additional financing project will modify and scale-up the well-performing operations, particularly participatory sub-basin management to strengthen integrated water resources management (IWRM) capacity at the district level, consolidate khet (village cluster) extension service center and village development revolving fund operations, and expand promising agricultural support services to benefit additional villages in remote parts of the Nam Ngum River Basin (NNRB).
Project Rationale and Linkage to Country/Regional Strategy Water is the most vital natural resource in the Lao PDR as its sustainable management is indispensable for agriculture, energy, and mining sectors. These sectors are critical for delivering an annual gross domestic product (GDP) growth rate of about 8% during the 2011-2015 period. The government deems this rate of economic growth necessary for the country to graduate from least developed country status by 2020 as well as to achieve its poverty reduction targets. The water resources also have regional significance since about 35% of total Mekong river flow is generated in the country's watersheds. The country has abundant water resources per capita. However, current storage capacity of large reservoirs is about 3% of annual surface water availability and hydropower generation is about 8% of potential. With the second largest annual flow and population, the Nam Ngum River Basin (NNRB) is one of the most important river basins in the Lao PDR where water resources have been utilized significantly for hydropower generation and irrigation. The current project promotes optimal use of water resources through integrated water resources management (IWRM) in the NNRB, which includes 16 districts in Luangprabang, Vientiane, and Xiengkhouang provinces, and Vientiane Capital. To date, the current project has contributed significantly to improved water governance, information gathering and processing, and watershed management both within the NNRB and nationally. The additional financing will consolidate and enhance these achievements. Additional financing is considered to be a suitable instrument to promptly respond to the emerging needs and deepen the achievements of the current project. Building on the established arrangements and methodologies, the additional financing project will capture incremental poverty reduction and sustainable natural resources management benefits from the strengthened public sector institutions and communities for IWRM in the NNRB.
Impact Optimal use of water resources, especially in the Nam Ngum River Basin (NNRB)
Project Outcome
Description of Outcome Integrated watershed management improved in NNRB
Progress Toward Outcome The overall physical progress of the project is at 94% against 95% of the elapsed time. The implementation progress is on track. The recent project review meeting was conducted on 17 February 2015 to review the implementation progress prior physical completion date.
Implementation Progress
Description of Project Outputs

Related government agencies (DWR, NNRBCS, PoNRE, DoNRE) in Nam Ngum River Basin strengthened for sub-basin management

District land use planning enhanced

Agricultural support services improved

Institutional and human resource capacity strengthened for project implementation

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

Output 1: All workshops are completed, percentage of female paticipated is being compiled.

5 draft sub-basin management plans are completed. Translation is in process.

Output 2: Updating of 10 WLCPs completed, all plans have been handed over to the district authorities.

Output 3: As of December 2014, rice yield increased by 3.53t/ha. (0.53t/ha increase)

buffaloes increased by 16%.

pigs increased by 42%.

poultry increased by 44%.

cattle increased by 34% compared to 30% target

593 new borrowers received credit from newly registered institutions.

547 are female borrowers

43% (1,646) of female involved in the planning process

58% (2,296)of ethnic involved in the planning process

18 KESCs are found to be sustainbility

1 saving credit institution was granted temporary registration for Phaxay district.

42 villages land use plans developed.

A total of 92% (4298 households) have been obtained the lad use right certificates, out of which 619 (14.4%) households are female headed households.

1 registered VDRF have average operation self-sufficiency rate more than 110%

Output 4: Project financial operation is steadily progressing with no cost overrun to date.

Audit report for FY 2012-2013 was timely submitted in June 2014.

Quarterly progress reports were submitted regularly.

Project Annual Workplan and Budget plan are timely submitted to ADB for approval. EA's PCR is being drafted and expects to submit to ADB by March 2015.

Geographical Location Luangprabang province,Xiengkhouang province,Vientiane province
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects The additional financing project will have limited site-specific environmental and social impacts. The current project has had no significant adverse environmental and social impact. Initial environmental examinations for 19 subwatersheds within the NNRB were prepared under the current project. The additional financing project will continue to support livelihood activities initiated under the current project in 230 villages and initiate similar activities in 50 additional villages in the same subwatersheds. Following the procedures set forth in the environmental assessment and review framework, a screening process will be established to categorize the activities of each target village according to its environmental sensitivity and, where needed, existing initial environmental examinations and environmental management plans will be updated to address site-specific issues consistent with government requirements and ADB's Safeguard Policy Statement (2009). Mitigation measures will be closely monitored based on the environmental management plans. An environmental safeguard specialist will assist project staff in complying with the requirements and monitoring these procedures.
Involuntary Resettlement The project activities will not involve any involuntary acquisition of land or other assets. Community-based small-scale infrastructure will, in principle, be designed on existing rights-of-way or public land. Any acquisition of land and other assets will be based on voluntary contribution. The procedural guidelines for voluntary land contribution have been prepared.
Indigenous Peoples Ethnic people will benefit from the project through increased agricultural and forestry productivity and improved access to infrastructure and credits for better livelihood opportunities. Participatory village development planning, supplemented by focus group discussions, will facilitate the participation of ethnic people in project activities in a socially acceptable manner. A social safeguard specialist, in collaboration with representatives of the Lao Front National Construction (LFNC) and Lao Women's Union (LWU), will assist project staff to comply with the requirements and to monitor the procedures.
Stakeholder Communication, Participation, and Consultation
During Project Design During the preparation and implementation of the current Nam Ngum River Basin Development Sector Project, a number of workshops and meetings in provincial and district offices and villages were organized to seek views of stakeholders. Training sessions and consultations with farmers and local government staff also provided opportunities to obtain their opinions and concerns. These were incorporated into the implementing methodologies of the current project, and then transferred to the design of the additional financing project. Experiences in identifying interest groups, their interests, and capacities during the current project will be extended to the additional financing project. Consultation with key stakeholders of the project was conducted to ensure lessons and local information gained through the implementation of the current project are incorporated into the design of the additional financing project.
During Project Implementation There will be four major stages for consultation and participation: (i) pre-screening target villages, (ii) participatory rural appraisal, (iii) preparing village development plans, and (iv) semi-annual planning and review workshops for project implementation. Modes of consultation will be village meeting, focus group discussion, and individual interviews. In all cases, attention will be paid to the representation of ethnic groups, women, and the poorest. Special sessions focused on each of these groups may be planned in an appropriate setting. Training programs and disaggregated indicators for participation will facilitate the participation of ethnic groups and women. Representatives from the Lao Front for National Construction and Lao Women's Union as well as safeguard and monitoring experts will facilitate and monitor the consultation and participation processes.
Business Opportunities
Consulting Services All consultants will be recruited according to ADB's Guidelines on the Use of Consultants. An estimated 161 person-months (10 international, 151 national) of consulting services are required to (i) facilitate project management and implementation, (ii) strengthen the institutional and operational capacity of the executing agency, and (iii) strengthen the technical capacity of the farmers. Consulting firms may be engaged using the consultants' qualifications selection (CQS) method.
Procurement All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines. All the contracts will be less than $100,000. Shopping will be used for contracts for procurement of works, equipment and materials worth less than $100,000. Community contracting may be used for civil works such as water supply systems and small-scale irrigation systems up to $30,000 per contract in accordance with the procurement plan.
Responsible ADB Officer Soudalay Souannavong
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Lao Resident Mission
Executing Agencies
Ministry of Agriculture & Forestry-Irrigation DepDIDMONPD@LAOTEL.COMDIDMP, Irrigation Department, Ministry
of Agriculture and Forestry
P.O.Box 5192, Chao Anou Road
Timetable
Concept Clearance 06 Jun 2011
Fact Finding 13 Jun 2011 to 16 Jun 2011
MRM 15 Jul 2011
Approval 26 Sep 2011
Last Review Mission -
Last PDS Update 11 Mar 2015

Loan 2780-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Sep 2011 15 Nov 2011 18 Jan 2012 31 Aug 2015 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 5.08 Cumulative Contract Awards
ADB 5.00 26 Sep 2011 4.58 0.00 96%
Counterpart 0.08 Cumulative Disbursements
Cofinancing 0.00 26 Sep 2011 4.75 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - -

Evaluation Documents

See also: Independent Evaluation

No documents found.


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