Lao People's Democratic Republic: Northern Rural Infrastructure Development Project

Sovereign Project | 42203-012

Summary

The Technical Assistance (TA) prepared an agreed design of an investment project that addresses the rural infrastructure deficit that is considered the major binding constraint for the socio-economic development of the Northern Region, and compliment this with investments to raise agriculture productivity and enhance community resilence.

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Project Name Northern Rural Infrastructure Development Project
Project Number 42203-012
Country Lao People's Democratic Republic
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7362-LAO: Northern Rural Infrastructure Development Project
Japan Special Fund US$ 800,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Agriculture, natural resources and rural development - Agricultural policy, institutional and capacity development - Agricultural production

Energy - Renewable energy generation - biomass and waste

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The Technical Assistance (TA) prepared an agreed design of an investment project that addresses the rural infrastructure deficit that is considered the major binding constraint for the socio-economic development of the Northern Region, and compliment this with investments to raise agriculture productivity and enhance community resilence.

The ensuing Project, Grant 0235-LAO: Northern Rural Infrastructure Development Project - approved on 26 November 2010, will improve rural household incomes in the four northern provinces of Bokeo, Luang Namtha, Oudomxay, and Phongsaly. The outcome will be increased agricultural productivity in these project provinces. Four main outputs include: (i) production and productivity enhancing rural infrastructure constructed and/or rehabilitated; (ii) productivity and impact enhancing initiatives adopted; (iii) capacities of national, provincial and district agencies strengthened to enable a sector development approach; and (iv) efficient and effective delivery of subprojects and Project management.

Project Rationale and Linkage to Country/Regional Strategy

The Project is consistent with ADB's Strategy 2020 and the (draft) Operational Plan for Sustainable Food Security. ADB's Country Strategy and Program 2007-2011 for Lao PDR is also aligned with the Government's 6th National Socio Economic Development Plan, and focuses on (i) promoting pro-poor sustainable growth: nurturing labor-intensive sources of growth (through small and medium sized enterprise development, transition to commercial agriculture, and regional integration as the main engine of outward-oriented growth); (ii) fostering inclusive social development: accelerating progress in non-income Millennium Development Goals (MDG)-basic education, primary health care, water supply; and (iii) addressing priority governance issues. A necessary pre-requisite for private sector-led growth and agricultural commercialization is market access (rural infrastructure) and enhanced productivity, in particular, the more efficient irrigation facilities.

The Project is consistent with the Government's objectives outlined in National Growth and Poverty Eradication Strategy (NGPES) and commitments under the MDGs, both of which target poverty reduction. The links between agricultural intensification through improved rural infrastructure and poverty reduction are well documented in TA 4521-LAO: Institutional Strengthening for Poverty Monitoring and Evaluation in which it concluded that "upgrading of roads had significant effect on poverty reduction, with the effect of upgrading from no vehicular access to only dry season access particularly large" Within the NGPES, rural infrastructure (including irrigation, rural markets and rural roads) has been accorded the highest priority as a means of achieving its poverty reduction objectives.

Impact The impact from investments funded under the ensuing grant is that access to markets and social services for rural communities in the northern provinces will be improved.
Project Outcome
Description of Outcome The outcome of the PPTA is an agreed design of an investment project that enhances market access, responds to government strategy for the socio-economic development of the Northern Region and is in accordance with stakeholders' priorities. Evidence of achievement of the outcome will be the memorandum of understanding between the Government and ADB anticipated by August 2010.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs Two outputs are anticipated including (i) a sector analysis and updated institutional assessment in the Northern Region for selected provinces; and (ii) a feasibility study design for an investment project with the following subcomponents- a) productivity and market access infrastructure; b) support for producer groups to integrate with markets; c) land use planning and productivity enhancement, d) measures to enhance climate resilience; (e) implementation management; and (f) associated documents for grant appraisal including social analysis - inc. gender analysis, resettlement framework, environmental management framework, etc.
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Northern Region
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation Workshops and community mobilization were undertaken at core subprojects during PPTA stage. Actions for the non-core subprojects will be carried out during the implementation of G0235-LAO.
Business Opportunities
Consulting Services The consultants have completed their services on 30 September 2011. ADB is waiting for the submission of the final request for contract variation and final claim in order to close the consulting contract.
Responsible ADB Officer Bui Minh Giap
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SERD
Executing Agencies
Ministry of Agriculture & Forestry-Irrigation Dep Mr. Phaythoune Phomvixaycmidoi@laotel.comVientiane, Lao PDR
Timetable
Concept Clearance 13 May 2009
Fact Finding 25 May 2009 to 05 Jun 2009
MRM -
Approval 12 Oct 2009
Last Review Mission -
PDS Creation Date 03 Jun 2009
Last PDS Update 11 Nov 2011

TA 7362-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Oct 2009 06 Nov 2009 06 Nov 2009 31 Oct 2010 31 Mar 2012 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
800,000.00 0.00 150,000.00 0.00 0.00 0.00 950,000.00 12 Oct 2009 799,774.50

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Safeguard Documents

See also: Safeguards

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Evaluation Documents

See also: Independent Evaluation

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