Lao People's Democratic Republic: Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Sector Project

Sovereign Project | 44138-022 Status: Active

Summary

ADB is helping the Lao People’s Democratic Republic improve irrigation in Savannakhet and Saravane provinces, which produce a third of the country’s rice output. The project will revive and update irrigation schemes, construct rural roads to improve access to markets, increase the capacity of farmers to manage and use agriculture infrastructure efficiently, and create jobs for local people.

Latest Project Documents

Consulting Notices See also: CMS

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Procurement Notices See also: Operational Procurement

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Procurement Documents


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Project Name Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Sector Project
Project Number 44138-022
Country Lao People's Democratic Republic
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3024-LAO: Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Project
Asian Development Fund US$ 60.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector

Agriculture, natural resources and rural development - Agricultural production - Irrigation

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The Greater Mekong Subregion (GMS) East West Economic Corridor (EWEC) provides a conduit for Lao agricultural surpluses to reach the neighboring countries of Thailand and Vietnam and even beyond. There is essentially unlimited demand from these countries for Lao agricultural and rural produce. Better agriculture infrastructure will enable more diversity and value addition to agricultural produce from the target provinces. This will expand sustainable livelihoods opportunities.

The Project aims to regenerate and upgrade existing but underdeveloped or outdated agriculture infrastructures in the two target provinces over a period of eight years. The proposed project is consistent with the government's sector development objectives as presented in its Seventh National Socio-Economic Development Plan (2011-2015), Strategy for Agricultural Development to 2020, Agricultural Master Plan 2011-2015, which promotes the expansion of market-oriented agricultural production in an environmentally sensitive manner. It will be a key component in the Government's new Southern Rural Development Program (SRDP), which is currently under formulation with the support of IFAD.

The design draws upon the experience of recent rural development initiatives that ADB has financed as well as rural development initiatives financed by the World Bank - Poverty Reduction Fund, and by the Japan International Cooperation Agency (JICA) - Participatory Irrigated Agriculture Development Project (PIADP).

Project Rationale and Linkage to Country/Regional Strategy

The Project will create critical masses of agriculture infrastructure in identified areas with good agricultural productive potential in order to optimize agricultural output, promote crop diversification and increase production efficiency. Improvements will be made to irrigation schemes including the replacement of worn out pumping stations, repair and/or strengthening of small and medium sized weirs or reservoirs, replacement of diversion weirs, upgrading of rural access and rural market infrastructure.

The improved agriculture infrastructures are expected to enable communities to increase agricultural intensity and diversity; provide quicker and safer access to markets, employment opportunities, and social services; and, reduce costs of rural production and marketing, as well as food wastage. Improved agriculture infrastructure increases incomes from both on- and off-farm employment, decreases the burden of chores on women, and increases food availability even when yields are constant. The Project is therefore pro-poor, will contribute to food security and will be increasingly important for climate change resilience.

Impact Increased household incomes in the project areas

Project Outcome

Description of Outcome Increased agricultural productivity in the project areas
Progress Toward Outcome The project physical progress as of 31 December 2015 estimated at 9.49%. The construction for the first three subprojects Phase 1 will start second quarter of 2016. The feasibilities studies (FS) for Phase 2 subprojects are on going, and it plans that at least 3 FSs be approved in Q2 2016
Implementation Progress
Description of Project Outputs

Improved agriculture infrastructure

Increased capacity of farmers to manage and use agriculture infrastructure efficiently

Efficient project management

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

Not yet started.

Not yet started.

Not yet started.

Project implementation is in its intial stage.

Project implementation is in its intial stage.

Completed.

Recruitment of baseline survey and social impact assessment consultants is completed with contract date on 24 April 2015.

Recruitment of engineering design consultants for:

FS phase 1 Done

FS phase 2 Jun 2015

FS phase 3 Not yet due.

Slight delay due to delay in the recruitment of LIC.

Geographical Location Savannakhet Province,Saravane Province

Safeguard Categories

Environment B
Involuntary Resettlement B
Indigenous Peoples B

Summary of Environmental and Social Aspects

Environmental Aspects

Subprojects are mainly limited to the rehabilitation of existing infrastructure, and a screening process has eliminated subprojects with potentially significant negative environmental impacts. This was confirmed during detailed analyses of the three representative subprojects. However, some minor negative environmental effects may occur during the construction process. To strengthen MAF's capacity, additional training for NPMO safeguard staff and PPMOs is included in the project costs. The environmental assessment and review framework and the list of responsibilities for environmental environmental impacts. The paving of roads will reduce dust, which has negative impacts on

human and livestock health, crops, and safety. Measures to improve climate change resilience include stabilizing local environments by integrating soil and water conservation measures into subproject design. Improved irrigation efficiency and sustainable agricultural practices will reduce stresses on water and land resources management are included in the PAM to guide the government to carry out an appropriate level of environmental assessment and to take corresponding measures to deal with potential.

The updated IEEs for the three representatives subprojects have been approved and will be disclosed in early April 2016

Involuntary Resettlement

No significant resettlement impacts are expected because the majority of agriculture infrastructure will be improved along existing

rights-of-way and will at most require the provision of compensation for roadside trees, crops and/or small structures, with possibly a small amount of land acquisition. Category A subprojects were eliminated during screening. It will be necessary to document the land

acquisition and resettlement status of each subproject during the preparation of feasibility studies. The government and ADB have agreed on a resettlement framework along with procedures, resources, and responsibilities for preparing resettlement plans outlined in the PAM

for potential category B subprojects. Resettlement plans were prepared for the three representative subprojects with no land acquisition needed. Any required resettlement plans will be submitted and approved by ADB before the selected subprojects are implemented.

Compensation, allowances, operation, and administration costs, surveys, monitoring, and reporting will be financed from loan proceeds. An adequate budget for resettlement plan preparation and implementation will be allocated accordingly as well as provision of resettlement specialists.

The updated LACRs of the three representative subprojects have been approved and disclosed

Indigenous Peoples The population in the project area is predominantly Lao-Thai, with Mon-Khmer groups generally found in the uplands of Saravane. Project activities will not cause involuntary changes in the ethnic groups' farming and livelihoods system or their cultural practice and ancestral domains. Any possible negative impact, such as loss of temporary crops and livelihoods, will be avoided if possible or will be compensated accordingly. Impacts on ethnic groups in these areas are expected to be overwhelmingly positive since the subprojects will be aimed at overall economic and social improvement of the total population. Specific measures to deal with potential negative impacts and to encourage participation and contribution of ethnic groups based on their unique social and cultural characteristics require customized approaches and interventions. In the general design of some subprojects, there may be opportunities for ethnic groups to participate in and/or benefit from the subproject activities. An ethnic group planning framework agreed upon by the government and ADB has been prepared to address this situation. It will guide the preparation of an ethnic group plan for potential category B subprojects based on ADB's Safeguard Policy Statement (2009). ADB will approve the ethnic group plans before the subproject is implemented.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation

Business Opportunities

Consulting Services

All consultants and entities will be selected and engaged in accordance with the ADB's Guidelines on the Use of Consultants. Consulting services requirement is estimated at 127 person months of international expertise and 523 person months of national expertise for a total of 650 person months. The loan implementation consultants (LICs) will be recruited from a qualified consulting firm which will require 97 person months of international expertise and 210 person months of national expertise for a total of 307 person months. Individual consultants will require 3 person months of international expertise and 123 person months of national expertise for a total of 126 person months.

The NPMO will recruit the LICs from a consulting firm following QCBS (90:10) procedures. National consultants for preparation of feasibility studies, detailed design, and preparation of bidding documents and supervision of construction, as well as the safeguard monitoring entities will be recruited by the NPMO following CQS procedures.

Procurement All procurement under the ADB loan will be undertaken in accordance with ADB's Procurement Guidelines (April 2010, as amended from time to time). Procurement of civil works packages and goods will be carried out by the NPMO and the PPMOs. Civil works packages valued at more than $1.0 million equivalent and packages for goods valued at more than $0.5 million equivalent will be procured following International Competitive Bidding (ICB) procedures. Civil works packages valued at less than $1.0 million equivalent but more than $100,000 equivalent, and packages for goods valued at less than $0.5 million equivalent but more than $100,000 equivalent, will be procured following national competitive bidding (NCB) procedures. For works and goods packages valued below $100,000 equivalent, shopping procedures acceptable to ADB will be followed.

Responsible Staff

Responsible ADB Officer Vanthong Inthavong
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Lao Resident Mission
Executing Agencies
Ministry of Agriculture and Forestry
DIDMONPD@LAOTEL.COM
Department of Livestock and Fisheries
Ministry of Agriculture and Forestry

Timetable

Concept Clearance 15 Feb 2013
Fact Finding 22 Feb 2013 to 15 Mar 2013
MRM 17 May 2013
Approval 20 Sep 2013
Last Review Mission -
Last PDS Update 30 Mar 2016

Loan 3024-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
20 Sep 2013 11 Oct 2013 07 Nov 2013 30 Jun 2022 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 60.60 Cumulative Contract Awards
ADB 60.00 20 Sep 2013 12.18 0.00 22%
Counterpart 0.60 Cumulative Disbursements
Cofinancing 0.00 20 Sep 2013 4.17 0.00 8%

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.

Title Document Type Document Date
GMS East-West Economic Corridor Agriculture Infrastructure Sector Project - Bung Xe: Initial Environmental Examination Initial Environmental Examination Mar 2016
GMS East-West Economic Corridor Agriculture Infrastructure Sector Project - Vapy Neua: Initial Environmental Examination Initial Environmental Examination Mar 2016
GMS East-West Economic Corridor Agriculture Infrastructure Sector Project - Phanomxay: Initial Environmental Examination Initial Environmental Examination Mar 2016
GMS East-West Economic Corridor Agriculture Infrastructure Sector Project - Vapy Neua Subproject: Land Acquisition and Compensation Report Resettlement Plans Mar 2016
GMS East-West Economic Corridor Agriculture Infrastructure Sector Project - Phanomxay Subproject: Land Acquisition and Compensation Report Resettlement Plans Mar 2016
GMS East-West Economic Corridor Agriculture Infrastructure Sector Project - Bung Xe Subproject: Land Acquisition and Compensation Report Resettlement Plans Mar 2016
Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Sector Project: Phanomxay Productive Rural Infrastructure Subproject (Draft) Resettlement Plans May 2013
Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Sector Project (Draft) Environmental Assessment and Review Framework May 2013
Greater Mekong Subregion East West Economic Corridor Agriculture Infrastructure Sector Project: Vapy Neua Productive Rural Infrastructure Subproject (Draft) Resettlement Plans May 2013
Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Sector Project (Draft) Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks May 2013
Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Sector Project (Draft) Resettlement Frameworks May 2013
Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Sector Project: Bung Xe Productive Rural Infrastructure Subproject (Draft) Resettlement Plans May 2013
Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Sector Project: Vapy Neua Irrigation Scheme Initial Environmental Examination Mar 2013
Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Sector Project: Bung Xe Irrigation Schemes Initial Environmental Examination Mar 2013
Greater Mekong Subregion East-West Economic Corridor Agriculture Infrastructure Sector Project: Phanomxay Irrigation Scheme Initial Environmental Examination Mar 2013

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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