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

Sovereign Project | 42203-022

Summary

The Project will address sector constraints by rehabilitating existing irrigation facilities and, where appropriate, developing new ones, as well as rehabilitating and upgrading rural access roads from district centers and village cluster centers to villages. To enhance the impact of subproject investments, the project will support (i) technical extension services to subproject beneficiaries, (ii) producer groups to coordinate supplies of agricultural produce to markets and/or processors, (iii) contracted agricultural production with price incentives based on quality, and (iv) initiatives to secure tenure and access to land for sedentary agricultural production and land rezoning to protect the integrity of watersheds and reservoirs

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Project Name Northern Rural Infrastructure Development Sector Project
Project Number 42203-022
Country Lao People's Democratic Republic
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0235-LAO: Northern Rural Infrastructure Development Sector Project
Asian Development Fund US$ 23.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Agriculture, natural resources and rural development - Irrigation - Land-based natural resources management - Rural market infrastructure - Water-based natural resources management
Transport - Road transport (non-urban)
Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The Project will address sector constraints by rehabilitating existing irrigation facilities and, where appropriate, developing new ones, as well as rehabilitating and upgrading rural access roads from district centers and village cluster centers to villages. To enhance the impact of subproject investments, the project will support (i) technical extension services to subproject beneficiaries, (ii) producer groups to coordinate supplies of agricultural produce to markets and/or processors, (iii) contracted agricultural production with price incentives based on quality, and (iv) initiatives to secure tenure and access to land for sedentary agricultural production and land rezoning to protect the integrity of watersheds and reservoirs

above rehabilitated irrigation systems. This will contribute to improving agricultural productivity, diversifying crops, and commercializing the low-performing agriculture sector in the northern region. These investments will be complemented by (i) institutional capacity building for national, provincial, and district agencies towards a sector development approach and (ii) heightened awareness of gender issues and the participation of local communities in designing and efficiently implementing about 25 subprojects. The project will be implemented in the four northern provinces of Bokeo, Luang Namtha, Oudomxay, and Phongsaly, which have a combined population of 760,000 people, a third of whom are considered poor.

Project Rationale and Linkage to Country/Regional Strategy

The Lao PDR is steadily increasing its exposure to international markets and commercial opportunities and reducing its dependence on traditional subsistence agriculture and logging. Its commitment to free trade and an improved transport network is transforming the northern region's participation in the market economy. Its abundant land resources and high agricultural potential have recommended the Lao PDR to neighboring countries as a potential supplier of agricultural goods, both food for consumption and raw materials for agro-processing. The development of higher-capacity transport corridors linking the People's Republic of China and Thailand, as well as the smaller transport routes east to Viet Nam, have enabled the supply of agricultural produce from northern Lao PDR to its neighbors.

A significant transport network of national and international routes has been developed. However, the coverage of rural access roads connecting these corridors is limited and generally of poor quality, inflating transport costs and constraining Lao competitiveness in regional markets. The commercialization of agriculture is hampered not only by an underdeveloped rural road network but also by the limited opportunities to intensify agricultural production, the predominant livelihood. The northern region is still dominated by subsistence production on lowland rain-fed and irrigated lands, as well as upland cropping on sloping lands, usually under some form of shifting cultivation. In 2007, 60% of the rice area of 75,000 hectares in the four targeted provinces was planted in bunded paddies, of which only 3% were irrigated. Production systems use traditional varieties and few inputs because of limited access to higher-yielding varieties, irrigation, or other production inputs. With the predominance of smallholder and geographically dispersed subsistence production, value addition and marketing are limited to drying, packaging, and the small-scale production of items such as sauces and spices. The more suitable agricultural areas, often located around district centers, have the greatest potential for higher agricultural productivity, production surpluses, and increased participation in the market economy.

Impact Improved rural household incomes in the four northern provinces of Bokeo, Luang Namtha, Oudomxay, and Phongsaly.
Project Outcome
Description of Outcome Increased agricultural productivity in the four northern provinces of Bokeo, Luang Namtha, Oudomxay, and Phongsaly
Progress Toward Outcome The Project progress is highly satisfactory. It had an efficient start-up which laid out a solid foundation for subprojects' construction through systematic subproject identifications, feasibility studies, subproject investment reports and detailed designs. To date, major achievements include: (i) construction completed for 9 subprojects, (ii) on track progress of civil works contracts for 9 subprojects, (iii) preparation of feasibility study reports for year 3 subprojects, (iv) establishment of Water User Groups and Road Maintenance Groups, (v) training on agriculture extension services and Training of Trainers on Gender/Indigenous Peoples and Value Chain Development for provincial staff, (vi) commencement of contract farming for 3 subprojects, and (vii) ongoing collaboration with NAFRI for the sector policy development study.
Implementation Progress
Description of Project Outputs

Productivity-enhancing rural infrastructure constructed and/or rehabilitated

Productivity- and impact-enhancing initiatives adopted

Capacity of national, provincial, and district agencies strengthened to enable a sector development approach

Efficient and effective delivery of subprojects and project management

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

A total of 5,387 ha of command area for 24 subprojects (Year 1, 2 and 3) have been identified, among which, 1631 ha is under 8 subprojects of Year 1; 2,041 ha is under 8 subprojects of Year 2 (construction are on-going); and 1,665 ha is under 8 subprojects of Year 3 (under detailed design stage).

A total of 147 km of rural access road and 50m of suspension bridge of year 1, 2 and 3 subprojects have been identified. As of December, 56.86 km out of 147km of roads have been completed.

As of January 2015, total labor of 16 subprojects is 646 people, with only 41 (6%) female participation. The Project is developing tools to ensure proper recording of this indicator.

Year 1 Subprojects: 22 WUGs and 4 road maintenance groups (RMG) have been established. 119 members of WUGs executive committee and 29 members of RMCs executive committee have been nominated. These comprised of 24% and 38% females respectively.

Year 2 Subprojects: 10 WUGs and 2 VRMCs were established which nominated 55 members of WUGs executive committee with 18% of female and 14 members of VRMCs executive committee with 29% of female.

Year 3 subprojects: Not yet due.

Based on the rapid appraisal assessment on Marketing/Value added and agricultural extension activities for Year 1 (Batch 1) subprojects, the Project prepared a comprehensive approach/plan for the value chain development.

The proposed value chain development activities have been implemented in 13 subprojects (9 subprojects of Year 1, and 4 subprojects in ODX).

To date, 53 FPGs (with 955 members) have been established for 18 subprojects under Year 1 and 2 subprojects.

Contract farming is ongoing as a pilot in 3 subprojects. There are 3 specific crop production groups, Tea FPG-Mongchao, Pumpkin FPG-Nam Bak and Rice PFG-Nam Haad.

A sample land use management plan was completed in December 2013 for Nam Tin subproject, Houayxai District, Bokeo Province (92 km2). Based on this, PPOs and DCOs continue to prepare the Irrigation Block Map and Land Use Management Plan for other subprojects.

A stakeholder meeting to present the Land Use Management Plan for further adaptation was organized on 14 February 2014 at Nam Haad irrigation subproject.

As of December 2014, all 8 subprojects of Year 1, Land Use Management Plan and Irrigation Block Map including organization of publication workshop, have been completed.

A total catchment area of 8 subprojects of Year 1 is about 1,592 km2.

Poultry-raising commenced as one of the gender and indigenous promotion activities. Trainings for chicken raising have been conducted 12 times for the target subprojects with total 76 participants, out of which 61 (67%) were women.

The Project delivered 6,162 chickens to 101 HHs in 12 villages of 8 subprojects, comprising of 2,009 chickens in PSL, 2,000 chickens in LNT, 1,378 chickens in BK, and 775 chickens in ODX.

M&E program, supported by FAO, has started in DOPC in February 2012. NPMO continues to coordinate with FAO and DOPC in establishing the M&E Unit in DOPC.

The Project provided support to this unit on M&E trainings to provincial and district level in Bokeo, Luangnamtha, Phongsaly and Oudomxay provinces.

All the planned 33 training programs (both TOT and Practical) for NPMO, PPOs, DCOs and beneficiaries were completed. A total of 2,981 people participated, among which 855 (29%) were females.

Five key implementation consultants were mobilized within 3 months of grant effectiveness. A total of 86.0 p-m (91.9% of 93.6 p-m) of international and 189.96 p-m (80.6% of 235.79 p-m) of national consultant inputs have been used as of 31 December 2014.

PBME system was established in 30 November 2011. It is continuously being strengthened through on-the-job training for preparing monthly progress reports at PPO and NPMO level.

Monitoring data of dry season crop production 2012-13 and wet season crop production 2013 has been collected for 8 irrigation subprojects year 1.

Data collection of dry season crop production 2013-14 has been collected in August 2014.

Total number of NPMO, PPOs and DCOs staff is 91, out of which 30 are women (33% of total member).

Geographical Location Bokeo, Luang Namtha, Oudomxay, and Phongsaly provinces
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects In the case of rural access road rehabilitation and upgrading, subprojects are limited to existing alignments and will most likely involve limited cut and fill, minor widening, and little realignment. For irrigation rehabilitation and development, feasibility studies will ensure that water off-take during the dry season allows sufficient flows to maintain the riparian ecosystem and ensure adequate resources for downstream users. The introduction of land zoning in the catchment areas of reservoirs will minimize inappropriate land use and reduce the risk of siltation while assuring dry season flows. Environment category A subprojects will be ineligible for financing under the proposed project. Technical specialists continue to prepare national and provincial environmental assessments and management plans for each subproject.
Involuntary Resettlement

Little resettlement is anticipated as subprojects will rehabilitate existing infrastructure and require insignificant land acquisition. Further, subprojects will be prescreened before grant effectiveness to ensure they do not entail significant resettlement. Only category B and C subprojects will be eligible for financing under the proposed project. Any minor compensation that may be needed will be provided in accordance with resettlement plans prepared for each subproject based on the guidelines outlined in the resettlement framework

agreed with the government.

Indigenous Peoples The otherwise dominant Lao-Thai ethnic group is a minority in each of the four target provinces, where the main ethnic groups are Mon-Khmer in Bokeo and Oudomxay and Chine-Tibet in Luang Namtha and Phongsaly. The principles followed in all subproject preparation will be consultation, inclusion, and preferential access to employment opportunities for vulnerable ethnic minority groups. As with socioeconomic baseline surveys, all data collected will be disaggregated by ethno-linguistic group, age (where appropriate), and gender to allow the monitoring and evaluation of beneficiary inclusion. The project is category B for indigenous peoples because (i) most people in the four provinces are ethnic minorities who generally have higher poverty rates than the nationally dominant Lao-Thai group and (ii) impacts are expected to be positive. The prescreening of subprojects and consultation processes will exclude subprojects that would disadvantage any groups. Indigenous peoples plans for each approved subproject will detail requirements for inclusion, benefit measuring, and monitoring.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations with key stakeholders were undertaken during project formulation and processing.
During Project Implementation Continuous consultations with stakeholders (villagers, women) are being conducted to ensure that subprojects are prioritized and safeguard awareness is ensured.
Business Opportunities
Consulting Services All consultants have been recruited according to ADB's Guidelines on the Use of Consultants (2010 as amended from time to time). The Project has engaged a consulting firm to provide project implementation support including policy development at national level. Engagement of consultants for the preparation of subprojects and safeguard monitoring during implementation is ongoing.
Procurement All procurement of goods and works are being undertaken in accordance with ADB's Procurement Guidelines (2010, as amended from time to time).
Responsible ADB Officer Sisavanh Phanouvong
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 26 Jan 2011
Fact Finding 19 Aug 2010 to 07 Sep 2010
MRM 30 Apr 2010
Approval 26 Nov 2010
Last Review Mission -
PDS Creation Date 16 Apr 2010
Last PDS Update 31 Mar 2015

Grant 0235-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Nov 2010 08 Dec 2010 08 Mar 2011 31 Aug 2017 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 23.00 Cumulative Contract Awards
ADB 23.00 26 Nov 2010 15.26 0.00 66%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Nov 2010 15.32 0.00 67%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - - - Satisfactory

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
NRIDSP - Nam Gna (IV) and (V) Irrigation Rehabilitation Subproject: Draft Updated Land Acquisition and Compensation Report Resettlement Plans Jul 2015
NRIDSP - Houay (II) Sa Irrigation Rehabilitation Subproject: Draft Updated Land Acquisition and Compensation Report Resettlement Plans Jul 2015
NRIDSP - Nam Ngaene Thong Paene Irrigation Rehabilitation Subproject: Draft Updated Land Acquisition and Compensation Report Resettlement Plans Jul 2015
NRIDSP - Houay Lieng Irrigation Rehabilitation Subproject: Draft Updated Land Acquisition and Compensation Report Resettlement Plans Jul 2015
NRIDSP - Nam Ngene (Ban Namark) Irrigation Rehabilitation Subproject: Draft Updated Land Acquisition and Compensation Report Resettlement Plans Jul 2015
NRIDSP - Houay Makmue Irrigation Rehabilitation Subproject: Draft Updated Land Acquisition and Compensation Report Resettlement Plans Jul 2015
NRIDSP - Nam Xang Irrigation Rehabilitation Subproject: Draft Updated Land Acquisition and Compensation Report Resettlement Plans Jul 2015
NRIDSP - Nam Chae Irrigation Rehabilitation Subproject: Draft Updated Land Acquisition and Compensation Report Resettlement Plans Jul 2015
Northern Rural Infrastructure Development Sector Project: Second Safeguard Monitoring and Evaluation Report, Package 7-2 (2014) Environmental and Social Monitoring Reports Feb 2015
Northern Rural Infrastructure Development Sector Project: First Safeguard Monitoring and Evaluation Report, Package 7-2 (2014) Environmental and Social Monitoring Reports Aug 2014
Northern Rural Infrastructure Development Sector Project: Nam Thae Irrigation Rehabilitation Subproject Updated Resettlement Plan Resettlement Plans Mar 2014
Northern Rural Infrastructure Development Sector Project: Nam Ngene (Ban Nawai) Irrigation Rehabilitation Subproject Updated Resettlement Plan Resettlement Plans Mar 2014
Northern Rural Infrastructure Development Sector Project: Nam Bak Irrigation Rehabilitation Subproject Updated Resettlement Plan Resettlement Plans Mar 2014
Northern Rural Infrastructure Development Sector Project: Houay Sat Irrigation Rehabilitation Subproject Updated Resettlement Plan Resettlement Plans Mar 2014
Northern Rural Infrastructure Development Sector Project: Nam Gna 6 / Houay Luang Irrigation Rehabilitation Subproject Updated Resettlement Plan Resettlement Plans Mar 2014
Northern Rural Infrastructure Development Sector Project: Nam Gnang Irrigation Rehabilitation Subproject Updated Resettlement Plan Resettlement Plans Mar 2014
Northern Rural Infrastructure Development Sector Project: Nam Thae Irrigation Rehabilitation Subproject Resettlement Plan Resettlement Plans Feb 2014
Northern Rural Infrastructure Development Sector Project: Nam Gna 6 / Houay Luang Irrigation Rehabilitation Subproject Resettlement Plan Resettlement Plans Feb 2014
Northern Rural Infrastructure Development Sector Project: Nam Ngene (Ban Nawai) Irrigation Rehabilitation Subproject Resettlement Plan Resettlement Plans Feb 2014
Northern Rural Infrastructure Development Sector Project: Nam Gnang Irrigation Rehabilitation Subproject Resettlement Plan Resettlement Plans Feb 2014
Northern Rural Infrastructure Development Sector Project: Houay Sat Irrigation Rehabilitation Subproject Resettlement Plan Resettlement Plans Feb 2014
Northern Rural Infrastructure Development Sector Project: Nam Haad Left Bank Irrigation Rehabilitation Subproject Resettlement Plan Resettlement Plans Feb 2014
Northern Rural Infrastructure Development Sector Project: Kormaen - Phongsaek Road Rehabilitation Subproject Resettlement Plan Resettlement Plans Feb 2014
Northern Rural Infrastructure Development Sector Project: Nam Pouk Irrigation Rehabilitation Subproject Resettlement Plan Resettlement Plans Feb 2014
Northern Rural Infrastructure Development Sector Project: Nam Bak Irrigation Rehabilitation Subproject Resettlement Plan Resettlement Plans Feb 2014
Northern Rural Infrastructure Development Sector Project: 2nd Environmental and Social Safeguard Monitoring Report, Package 7-1 (September 2013) Environmental and Social Monitoring Reports Sep 2013
Northern Rural Infrastructure Development Sector Project: Environmental and Social Safeguard Monitoring Report, Package 7-1 (July 2013) Environmental and Social Monitoring Reports Jul 2013
Northern Rural Infrastructure Development Sector Project: Mong Chao - Komaen Rural Road Rehabilitation Subproject Resettlement Plan Resettlement Plans Jun 2013
Northern Rural Infrastructure Development Sector Project: Nam Tin Irrigation Rehabilitation Subproject Resettlement Plan Resettlement Plans Jun 2013
Northern Rural Infrastructure Development Sector Project: Nam Dai Irrigation Rehabilitation Subproject Resettlement Plan Resettlement Plans Jun 2013
Northern Rural Infrastructure Development Sector Project: Nam Ou Irrigation Rehabilitation Subproject Resettlement Plan Resettlement Plans Jun 2013
Northern Rural Infrastructure Development Sector Project: Nam Haad Irrigation Rehabilitation Subproject Resettlement Plan Resettlement Plans Jun 2013
Northern Rural Infrastructure Development Sector Project: Hong Kong Irrigation Subproject Resettlement Plan Resettlement Plans Jun 2013
Northern Rural Infrastructure Development Sector Project: Nam Lan Irrigation Rehabilitation Subproject Resettlement Plan Resettlement Plans Jun 2013
Northern Rural Infrastructure Development Sector Project: Houay Xo Irrigation Rehabilitation Subproject Resettlement Plan Resettlement Plans Jun 2013
Northern Rural Infrastructure Development Sector Project: Nam Ma Oune Irrigation Rehabilitation Subproject Resettlement Plan Resettlement Plans Jun 2013
Northern Rural Infrastructure Development Sector Project: Nam Bak Irrigation Rehabilitation Subproject Initial Environmental Examination May 2013
Northern Rural Infrastructure Development Sector Project: Hong Kong Irrigation Rehabilitation Subproject Initial Environmental Examination May 2013
Northern Rural Infrastructure Development Sector Project: Nam Tin Irrigation Rehabilitation Subproject Initial Environmental Examination May 2013
Northern Rural Infrastructure Development Sector Project: Nam Gnang Irrigation Rehabilitation Subproject Initial Environmental Examination May 2013
Northern Rural Infrastructure Development Sector Project: Houay Xo Irrigation Rehabilitation Subproject Initial Environmental Examination May 2013
Northern Rural Infrastructure Development Sector Project: Nam Pouk Irrigation Rehabilitation Subproject Initial Environmental Examination May 2013
Northern Rural Infrastructure Development Sector Project: Nam Gna 6 (Houay Luang) Irrigation Rehabilitation Subproject Initial Environmental Examination May 2013
Northern Rural Infrastructure Development Sector Project: Nam Lan Irrigation Rehabilitation Subproject Initial Environmental Examination May 2013
Northern Rural Infrastructure Development Sector Project: HouaySat Irrigation Rehabilitation Subproject Initial Environmental Examination May 2013
Northern Rural Infrastructure Development Sector Project: Kormaen-Phongsaek Irrigation Rehabilitation Subproject Initial Environmental Examination May 2013
Northern Rural Infrastructure Development Sector Project: Nam Ma Oune Irrigation Rehabilitation Subproject Initial Environmental Examination May 2013
Northern Rural Infrastructure Development Sector Project: Nam Haad Irrigation Rehabilitation Subproject Initial Environmental Examination May 2013
Northern Rural Infrastructure Development Sector Project: Nam Ngaene Irrigation Rehabilitation Subproject Initial Environmental Examination May 2013
Northern Rural Infrastructure Development Sector Project: NamThae Irrigation Rehabilitation Subproject Initial Environmental Examination May 2013
Northern Rural Infrastructure Development Sector Project: Nam Ou Irrigation Rehabilitation Subproject Initial Environmental Examination May 2013
Northern Rural Infrastructure Development Sector Project: Environmental Assessment and Review Framework Environmental Assessment and Review Framework Oct 2010
Northern Rural Infrastructure Development Sector Project: Indigenous Peoples Planning Framework Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Oct 2010
Northern Rural Infrastructure Development Sector Project: Resettlement Framework Resettlement Frameworks Oct 2010

Evaluation Documents

See also: Independent Evaluation

No documents found.


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