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

Sovereign Project | 44138-022

Summary

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.

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Consulting Notices

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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 Approved
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The Project aims to regenerate and upgrade existing but underdeveloped or outdated agriculture infrastructures in the two target provinces over a period of eight years.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 Recruitment of the Loan Implementation Consultant package is ongoing.
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)

The Project is focused on the recruitment of the following consultants: (i) project implementation consultants, (ii) baseline survey and social impact assessment, and (iii) engineering design consultants for the remaining subprojects.

The consultants for the detailed design engineering of the first three subprojects were engaged in 1Q 2015.

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.

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.

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 Close consultations with the government are being held.
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 ADB Officer Charles David Salter
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SERD
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 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 31 Mar 2015

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 1.66 0.00 3%
Counterpart 0.60 Cumulative Disbursements
Cofinancing 0.00 20 Sep 2013 2.19 0.00 4%

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
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

No documents found.


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