Lao People's Democratic Republic: Building Lao PDR's Capacity to Develop Special Economic Zones

Sovereign Project | 42032-012

Summary

The project envisage to build Lao PDR?s capacity to develop SEZ and the major expected outputs include: (i) detailed analysis of strengths, weaknesses, opportunities and threats of the existing SEZ related policies, legal and institutional arrangements in the context of faster but sustainable socioeconomic development; (ii) review and analyze the policy, legal and institutional arrangements relating to SEZ; (iii) formulate a results-oriented national SEZ roadmap outlining a clear medium-term SEZ strategy and plan for Lao PDR; (iv) prepare an SEZ law in synergy, complementarity and harmony with exiting investment and related laws; (v) inline with the SEZ law prepare a set of SEZ operational manuals outlining the step by step process and procedures on the management, negotiation and promotion of SEZs; (vi) prepare a tailor-made training manual for government officials and potential investors; (vii) setup an SEZ resource center including the IT systems; (viii) on-the-job training of government officials on ho

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Project Name Building Lao PDR's Capacity to Develop Special Economic Zones
Project Number 42032-012
Country Lao People's Democratic Republic
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7188-LAO: Building Lao PDR's Capacity to Develop Special Economic Zones
Technical Assistance Special Fund US$ 700,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector Public sector management - Economic affairs management
Gender Equity and Mainstreaming No gender elements
Description The project envisage to build Lao PDR?s capacity to develop SEZ and the major expected outputs include: (i) detailed analysis of strengths, weaknesses, opportunities and threats of the existing SEZ related policies, legal and institutional arrangements in the context of faster but sustainable socioeconomic development; (ii) review and analyze the policy, legal and institutional arrangements relating to SEZ; (iii) formulate a results-oriented national SEZ roadmap outlining a clear medium-term SEZ strategy and plan for Lao PDR; (iv) prepare an SEZ law in synergy, complementarity and harmony with exiting investment and related laws; (v) inline with the SEZ law prepare a set of SEZ operational manuals outlining the step by step process and procedures on the management, negotiation and promotion of SEZs; (vi) prepare a tailor-made training manual for government officials and potential investors; (vii) setup an SEZ resource center including the IT systems; (viii) on-the-job training of government officials on how to manage, negotiate and promote SEZs; (ix) study tour to PRC, Malaysia, Vietnam and Thailand on SEZ management, negotiation, and promotion; and (x) training modules and seminar proceedings on SEZ management, negotiation, and promotion.
Project Rationale and Linkage to Country/Regional Strategy The project is timely and consistent with Lao PDR's socioeconomic development framework and ADB?s Country Strategy and Program for Lao PDR, 2007?2011 which specifies sustainable economic growth through supporting the private sector as a core area of ADB?s support and the UNIDO?s Integrated Programme Phase II (2004-2008), which stipulates the stronghold of private sector led development focusing on the strengthening of local capacities required for the effective implementation of the country?s development plan. Since the project has regional cooperation dimension to it, it is inline with the strategic thrusts and objectives of the GMS Program and ADB's Regional Cooperation, and Program for the GMS in terms of promoting the private sector, trade and investment.
Impact The objective of the project is to support Lao PDR increase private investments to sustain the current high economic growth.
Project Outcome
Description of Outcome Outcome of the project would be enhanced national capacity to develop, manage, negotiate and promote SEZs in Lao PDR. The project would be a critical precursor to Lao PDR's future SEZ development.
Progress Toward Outcome Achieved.
Implementation Progress
Description of Project Outputs The main outputs would be: (i) improved policy, legal and regulatory framework for SEZ; (ii) improved SEZ management and institutional capacity; (iii) identified target, production chain business opportunities; and (iv) established Investment Promotion Network and conducted promotional activities.
Status of Implementation Progress (Outputs, Activities, and Issues)

(i) SWOT analysis report submitted to ADB, SWOT workshop was conducted in August 2009.

(ii) Establishment of National SEZ secretariat decree was approved in October 2010

- NSEZ secretariat was established

(iii) Final draft of NSEZ strategy completed

(iv) NSEZ decree completed.

(v) New Promotion and Investment law was approved by National Assembly in Feb 10.

- Road Show was organized in November 2010

(vi) Setting up NSEZ website completed.

(vi) Training Manual for Administrating NSEZ in Lao PDR was published.

(vii) Training on management of SEZ for SEZ authority staff was conducted in March 11.

(Vii) Training on SEZ management was conducted in April 2011.

(vii) IT equipment has been installed

(viii) One Single Service (OSS) guideline was completed

Geographical Location The project will be implemented by the Special Economic Zone Authority of the Office of the Prime Minister
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Initial consultation with government, potential investors, donors completed in December 2007.
During Project Implementation Consultation with the goverment have been regularly made during project implementation.
Business Opportunities
Consulting Services An International Consulting firm will be hired for the task.
Responsible ADB Officer Phantouleth Louangraj
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Lao Resident Mission
Executing Agencies
Special Economic Zone Authority Mr Thongsay Sayavongkhamdysthongsay@gmail.comPrime Minister's Office,Phetsalath Rd. Kaysone Phomvihane District, Savannakhet Province, P.O.Box 200
Timetable
Concept Clearance 15 Jun 2008
Fact Finding 14 Oct 2007 to 03 Apr 2008
MRM -
Approval 27 Nov 2008
Last Review Mission -
PDS Creation Date 06 Feb 2008
Last PDS Update 15 Dec 2011

TA 7188-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Nov 2008 02 Apr 2009 02 Apr 2009 31 Mar 2011 15 Sep 2011 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
700,000.00 0.00 100,000.00 0.00 0.00 150,000.00 950,000.00 27 Nov 2008 698,732.26

Safeguard Documents

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Evaluation Documents

See also: Independent Evaluation

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