Lao People's Democratic Republic: Small Towns Water Supply and Sanitation Sector Project

Sovereign Project | 36339-022

Summary

To improve the quality of life of the residents of small towns in Lao PDR and to enhance the town' roles as economic, market, manufacturing and services centers for their surrounding rual areas. It will contribute to the Government's efforts to increase the percentage of the urban population with access to safe piped water to 80% by 2020. The project aims to strengthen the overall water supply sector by supporting the establishment of the Water Supply Regulatory Committee (WSRC); assisting its secretariat, the Water Supply Authority (WASA), to carry out its (PNPs) to become corporate entities under the Enterprise Law. The project will provide support for business and financial management, and efficient operation and maintenance to improve PNPs' organizational performance and sustainability.

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Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name Small Towns Water Supply and Sanitation Sector Project
Project Number 36339-022
Country Lao People's Democratic Republic
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0143-LAO: Small Towns Water Supply and Sanitation Sector Project
Asian Development Fund US$ 23.00 million
Gender and Development Cooperation Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Water and other urban infrastructure and services - Urban flood protection - Urban policy, institutional and capacity development - Urban sanitation - Urban water supply
Gender Equity and Mainstreaming
Description

To improve the quality of life of the residents of small towns in Lao PDR and to enhance the town' roles as economic, market, manufacturing and services centers for their surrounding rual areas. It will contribute to the Government's efforts to increase the percentage of the urban population with access to safe piped water to 80% by 2020. The project aims to strengthen the overall water supply sector by supporting the establishment of the Water Supply Regulatory Committee (WSRC); assisting its secretariat, the Water Supply Authority (WASA), to carry out its (PNPs) to become corporate entities under the Enterprise Law. The project will provide support for business and financial management, and efficient operation and maintenance to improve PNPs' organizational performance and sustainability.

The project will support the provision of piped water and sanitation services for an estimated 137,000 residents in 124 villages in 15 small towns. It is a sector investment project with the following outputs: (i) a stronger and more sustainable urban water supply sector; (ii) new and rehabilitated water supply systems in 15 small towns; (iii) improved drainage and public sanitation; (iv) enhanced community action and participation; (v) more gender equity in urban water and sanitation; and (vi) improved capacity for project implementation and operation and maintenance.

Project Rationale and Linkage to Country/Regional Strategy Lao PDR remains essentially a rural country. It had a population of 5.6 million in 2005, but its high population growth rate of 2.1% per annum means this is expected to rise to 7.3 million by 2020. About 27% of the population lives in urban centers or towns. Urban district centers and villages with populations from 2,000 to 20,000 people are classified as small towns. Inadequate water supply and poor environmental conditions in these small towns results in poor health, lost work and school days, and more household expenditure on health care. It also deters socioeconomic development and restricts the ability of these towns to serve as key administrative and economic centers. In 2006, the overall piped water coverage in the towns was 21%, while sanitation coverage in the form of pour-flush toilets was 69%. Many urban households lack water during the dry season to clean toilet facilities, which makes it difficult to maintain hygiene in the home. The importance of water supply and sanitation services in small towns is increasing, as the Lao PDR becomes more regionally connected by better road networks, increased tourism, and greater interregional trade. Small towns located in key transport and economic corridors are instrumental in supporting the economic and human development opportunities in the surrounding rural areas.
Impact Expanded access to safe piped water supply and sanitation services for the urban population.
Project Outcome
Description of Outcome Improved access, quality and reliability of piped water supply and sanitation services for residents in target small towns.
Progress Toward Outcome Progress is ongoing.
Implementation Progress
Description of Project Outputs

1. Strengthened urban water supply and sanitation sector

2. Developed and rehabilitated water supply systems

3. Improved drainage and public sanitation

4. Enhanced community action and participation

5. Enhanced gender equity in urban water supply and sanitation

6. Improved capacity for project implementation and operation and maintenance

Status of Implementation Progress (Outputs, Activities, and Issues) Activities to strengthen sector planning and regulation is ongoing. PNPs are taking steps to improve their operational efficiency and financial performance. The EA is committed to human resource development in the sector. A total of 36 scholarships supported by the project have been awarded for technical and vocational training (of which 33% have been for women). Another 26 scholarships have been awarded to female high school graduates for pursuing engineering degrees (supported by the Gender and Development Cooperation Fund). Construction of Phase I towns (3 towns), Phase II towns (4 towns) and Phase IIIa towns (3 towns), and Phase IIIb (3 towns) are ongoing. Contract for one town in Phase IIIb is to be awarded. Feasibility studies, subproject appraisal reports and bid documents for Phase IIIb towns have been approved. Consulting services are in place and work closely with the project coordination office. Part of the operation and maintenance initiatives includes a twinning program with a regional water utility as an expert twin (supported through a parallel ADB initiative).
Geographical Location Small towns in Lao PDR, mainly in the northern and southern regions
Safeguard Categories
Environment
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects The project is category B (non-sensitive). Phase-I, II IIIa and IIIb IEEs and EMPs have been approved.
Involuntary Resettlement The project is category B. Phase-I, II, IIIa and IIIb LACPs have been approved. The external social and resettlement monitor has been recruited and provides regular monitoring reports prior to contract awards.
Indigenous Peoples The project is category B. Phase-I, II, IIIa and IIIb feasibility studies include a screening of the impacts on ethnic groups for each town. Enhancement measures are incorporated into the subproject design and mitigation measures, if any, are incorporated into the IEE, EMPs and LACPs.
Stakeholder Communication, Participation, and Consultation
During Project Design Extensive stakeholder participation and consultation was undertaken to ensure that the proposed project impact, outcomes and outputs were derived, owned and supported by key stakeholders. In-depth interviews, workshops, group discussions, household surveys and questionnaires were used with (i) relevant national, provincial, and district governments; (iii) local village leaders in the core areas of candidate subproject towns; (iii) development partners and mass organizations; and (iv) households (or potential consumers). Focus groups discussions were held with local communities, including the poor, women and ethnic people. National workshops with key stakeholders were conducted to present the project design and seek consensus on key cost-recovery principles. Subproject-level consultations were held to finalize the feasibility design of the core subprojects.
During Project Implementation The same level of consultation continues during implementation. Subprojects are designed in close consultation with government, communities, mass organizations, government officials, water utilities and others through workshops, meetings, socioeconomic households surveys, focus group discussions etc.
Business Opportunities
Consulting Services A total of 859 person-months of consulting services (124 person-months international and 735 person-months national) will be required to support implementation of the Project through project management, feasibility studies, design construction, and supervision of water supply and sanitation infrastructure, preparation of social assessments with information on poverty, gender and ethnic groups, financial management, institutional and human resources development, social and community development, health and hygiene, involuntary resettlement and environmental safeguards, and project performance management and evaluation. The consultants will deliver on-the-job training and capacity development assistance to the PCU and PIUs. They will also provide services for (i) topographical surveys for feasibility studies and design; (ii) water quality testing for feasibility, design, and monitoring during construction; (iii) geotechnical investigations and soil testing for feasibility studies and design; (iv) survey and clearance of unexploded ordnance; and (v) groundwater surveys, if necessary, to include drilling and pump tests. Consulting services will be engaged through a firm in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time) through the quality- and cost-based selection (QCBS) method. The weighting will follow the standard quality-cost ratio of 80:20. The PCU will recruit the consultant team, which will include international and national consultants led by a team leader. The consultant team will report to the PCU.
Procurement All procurement to be financed under the ADB grant will be carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). International competitive bidding (ICB) procedures will be used for major civil works contracts estimated to cost over $1.0 million, and for supply contracts valued at over $500,000. Procurement of civil works valued at less than $1.0 million equivalent will be undertaken through national competitive bidding. Modifications and clarifications that need to be made to the Recipient's national competitive bidding procedures must be agreed on by ADB and the Recipient. Shopping procedures will be followed for materials and equipment packages or works estimated to cost less than $100,000 equivalent. ADB shopping procedures will be used for the small village civil works and supply contracts, and for awareness activities and equipment under the community action and participation program. To the extent possible, quotations will be invited from at least three suppliers or contractors for local procurement. The Project Coordination Unit (PCU) will carry out procurement for outputs 1, 2 and 5, and the Project Implementation Unit (PIU) will be responsible for that for outputs 3 and 4. Installation of water meters and service connections will be carried out by the construction contractor under the main water supply construction contract for each subproject town. The district Lao Women's Union (LWU) will be contracted to implement the community information and participation program, following a capacity assessment in each subproject town through single source selection. This is justified based on: (i) the LWU is the only organization with a sustained local presence in the project districts, and has a history of working with local communities and participatory development, ensuring local continuity; and (ii) the cost of each assignment is less than $100,000.
Responsible ADB Officer Anupma Jain
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Urban Development and Water Division, SERD
Executing Agencies
Ministry of Public Works and TransportPhomma Veoravanhveoravan@laotel.com3rd Floor, Building of Urban Research Institute, Dongpalane Road, Vientiane, Lao, PDR
Timetable
Concept Clearance 13 Jun 2008
Fact Finding 08 Jul 2008 to 23 Jul 2008
MRM 26 Aug 2008
Approval 02 Feb 2009
Last Review Mission -
PDS Creation Date 04 Mar 2006
Last PDS Update 19 Nov 2014

Grant 0143-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Feb 2009 06 Mar 2009 27 Apr 2009 31 Dec 2014 31 Dec 2017 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 26.14 Cumulative Contract Awards
ADB 23.00 02 Feb 2009 20.85 NaN 91%
Counterpart 2.64 Cumulative Disbursements
Cofinancing 0.50 02 Feb 2009 15.43 NaN 67%

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Small Towns Water Supply and Sanitation Sector Project Environmental Assessment and Review Framework Aug 2008
Small Towns Water Supply and Sanitation Sector Project Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Aug 2008
Small Towns Water Supply and Sanitation Sector Project: Resettlement Framework Resettlement Frameworks Jul 2008
Small Towns Water Supply and Sanitation Sector Project: Songkhone Resettlement Plans Jul 2008
Small Towns Water Supply and Sanitation Sector Project: Viengphouka Resettlement Plans Jul 2008
Small Towns Water Supply and Sanitation Sector Project: Huoixai Resettlement Plans Jul 2008

Evaluation Documents

See also: Independent Evaluation

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