Lao People's Democratic Republic: Greater Mekong Subregion East-West Economic Corridor Towns Development Project

Sovereign Project | 43319-022 Status: Active

Summary

ADB is helping the Lao People’s Democratic Republic transform three towns along the East-West Economic Corridor into economic hubs. The project will improve urban environmental infrastructure and strengthen the institutional capacity of provincial and local authorities in Kaysone Phomvihane, Phine, and Dansavanh. It includes flood control measures and improvements in waste management and roads.

Latest Project Documents

Consulting Notices See also: CMS

Procurement Notices See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents


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Project Name Greater Mekong Subregion East-West Economic Corridor Towns Development Project
Project Number 43319-022
Country Lao People's Democratic Republic
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0313-LAO: Greater Mekong Subregion East-West Economic Corridor Towns Development Project
Asian Development Fund US$ 14.23 million
Loan 2931-LAO: Greater Mekong Subregion East-West Economic Corridor Towns Development Project
Asian Development Fund US$ 26.60 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Water and other urban infrastructure and services - Other urban services - Urban flood protection - Urban policy, institutional and capacity development - Urban sewerage - Urban solid waste management

Gender Equity and Mainstreaming Effective gender mainstreaming
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location

Summary of Environmental and Social Aspects

Environmental Aspects

The project is Environment Category B. The subprojects are not expected to cause irreversible adverse environment impacts. Initial environmental examinations conducted for all the project cities, identified potential impacts and mitigation measures to be implemented through Environment Management Plans (EMPs) and included inputs from public consultations. Most impacts are site-specific and mitigation measures are readily available. Potential impacts can be mitigated with good construction practices outlined in the EMPs. The IEEs are in accordance with the ADB's SPS, 2009 (Safeguard Policy Statement) and the applicable environment regulations of the Government of Lao People's Democratic Republic. At detailed design stage when the EMPs are updated the final receiving environments for the WWTPs and landfill will be reviewed to ensure that local groundwater and human uses of the affected areas are not adversely affected.

The EMP will be finalized during the detailed design stage of the project. The updated EMP, cleared by the ADB, shall form part of the contract bidding documents. The adequate incorporation of environmental considerations during design, and allocation of sufficient budget for O&M will mitigate the potential adverse impacts during operation. Effective environment monitoring at all stages of the sub-project implementation will be ensured. In compliance with ADBs information disclosure and consultation requirements, the safeguard documents will be posted on ADB's website.

Involuntary Resettlement

The safeguard category for involuntary resettlement is B. RPs have been prepared for the three subprojects which will trigger the application of ADB's SPS involuntary resettlement requirements. Three due diligence studies were conducted and reports have also been prepared for sub-projects without LAR impacts which include (i) Solid waste management in Kaysone Phomvihane (i) MRF in Dansavanh, (iii) MRF Phine as they will not trigger any Land Acquisition and Resettlement impacts for any of these sub projects.

A cutoff date has been established with extensive stakeholder consultation and participation. Project information has been disclosed to affected persons throughout the project preparation and a project information booklet will be updated and distributed during detailed measurement survey.

Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Business Opportunities

Consulting Services All consulting services shall be recruited in accordance with the ADB's Guidelines on the Use of Consultants (2010). The scope of services and terms of reference for the consulting services are presented in Section D. An estimated 208 person-months involving the services of 84 international and 124 national consultants are required to provide Project management support and capacity development and training. In addition, direct contract arrangements will be undertaken for consultant's services for financial audit and independent monitoring of social safeguards compliance. Consulting firms will be engaged by the EA and ADB using the quality-and cost-based selection (QCBS) method with a standard quality: cost ratio of 90:10. The higher quality-cost ratio is proposed due to the complexity of Project implementation arrangements where the PMU and 3 PITs work under the coordination and oversight of one implementing agency, and the limited institutional capacities of district and corridor town authorities in managing and implementing urban sector development loan project.
Procurement

All procurement of goods, works and consulting services will be in accordance with ADB's Procurement Guidelines. International competitive bidding (ICB) will be applied for civil works packages exceeding $1,500,000 equivalent.

Within a year of loan effectiveness, the EA shall submit a revised procurement plan to ADB for approval. This revised plan will contain all ongoing procurement activities and those that are planned for the succeeding 18 months. The plan shall be updated annually or as required after every loan review mission or after award of each major ICB contract.

For changes in the procurement arrangements involving threshold, procurement methods and review requirements and contract packaging during Project implementation, the EA shall present its justification for the changes and submit an updated procurement plan for ADB approval. ADB will be responsible for posting the initial procurement plan and subsequent updates on the ADB website.

Modification in Civil Works Contracts. For any contract variation, which would be in aggregate increase in the original contract amount by more than 15%, the EA shall provide detailed justification and seek the no objection position of ADB to the proposed contract variation. If the proposed variation is inconsistent with the procurement plan and the provision of the financing agreement, the ADB shall promptly advise the EA stating the reasons for its position. The EA shall furnish the ADB all amendments to the contracts for civil works for legal and record purposes.

As an essential measure to Project readiness before the loan and grant agreements becomes effective, EA will undertake advance actions related to procurement of consulting services. This is intended to facilitate Project start-up activities and avoid significant project implementation delays due to the limited capacity and experience in undertaking essential pre-Project implementation arrangements. The procurement of services for advance contracting will be undertaken in accordance with ADB's Procurement Guidelines (April 2010, as amended from time to time) and issuance of the invitation to bid will be subject to the approval of ADB.

The scope of services for advance contracting will focus on: (i) engagement of a Team of consultants for PIS and capacity development, and (ii) preparation of detailed engineering designs and construction supervision for the identified priority urban infrastructure subprojects. ADB will engage an individual consultant to assist the PMU select and recruit the PMS consultant.

Responsible Staff

Responsible ADB Officer Michael White
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Urban Development and Water Division, SERD
Executing Agencies
Ministry of Public Works and Transport
Dept of Housing and Urban Planning, Lao
PDR, Lane-Xang Ave., Vientiane Lao PDR
P.O. Box 206

Timetable

Concept Clearance -
Fact Finding -
MRM -
Approval -
Last Review Mission -
PDS Creation Date 19 Apr 2010
Last PDS Update 01 Oct 2014

Grant 0313-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Nov 2012 04 Dec 2012 15 Jan 2013 30 Jun 2019 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 14.23 Cumulative Contract Awards
ADB 14.23 06 Nov 2012 1.49 0.00 11%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 06 Nov 2012 0.89 0.00 6%

Grant 0314-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Nov 2012 04 Dec 2012 15 Jan 2013 30 Jun 2019 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.00 Cumulative Contract Awards
ADB 0.00 06 Nov 2012 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 06 Nov 2012 0.00 0.00 0%

Loan 2931-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Nov 2012 04 Dec 2012 15 Jan 2013 30 Jun 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 32.86 Cumulative Contract Awards
ADB 26.60 06 Nov 2012 4.01 0.00 16%
Counterpart 6.26 Cumulative Disbursements
Cofinancing 0.00 06 Nov 2012 2.23 0.00 9%

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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