Lao People's Democratic Republic: Vientiane Sustainable Urban Transport Project

Sovereign Project | 45041-002

Summary

The Vientiane Sustainable Urban Transport Project (VSUTP) will improve the quality of life in Vientiane by improving access and mobility. The project will do this by establishing a sustainable urban transport management agency (SUTMA), a high-quality public bus transport system, a parking management system, and a national electronic vehicle registration system, and by improving traffic management and accessibility for pedestrians and nonmotorized transport (NMT). The project promotes gender mainstreaming, greenhouse gas reduction, and public private partnership.

Latest Project Documents

Consulting Notices

See also: CMS
Title Deadline
International Advisor 1 (Urban Transport) 3 Sep 2015

Procurement Notices

See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name Vientiane Sustainable Urban Transport Project
Project Number 45041-002
Country Lao People's Democratic Republic
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Grant: Vientiane Sustainable Urban Transport Project
Asian Investment Facility US$ 6.90 million
Global Environment Facility US$ 1.84 million
Loan 3250-LAO: Vientiane Sustainable Urban Transport Project
Asian Development Fund US$ 35.00 million
Loan: Vientiane Sustainable Urban Transport Project
European Investment Bank US$ 20.00 million
OPEC Fund for International Development US$ 15.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector Transport - Urban public transport
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The Vientiane Sustainable Urban Transport Project (VSUTP) will improve the quality of life in Vientiane by improving access and mobility. The project will do this by establishing a sustainable urban transport management agency (SUTMA), a high-quality public bus transport system, a parking management system, and a national electronic vehicle registration system, and by improving traffic management and accessibility for pedestrians and nonmotorized transport (NMT). The project promotes gender mainstreaming, greenhouse gas reduction, and public private partnership.
Project Rationale and Linkage to Country/Regional Strategy

Vientiane, the capital of the Lao PDR has an estimated population of about 750,000. The principal urbanized areas have an estimated population of 500,000. The central core of the city has a mixture of government, educational, religious, and commercial institutions, as well as residential areas, and is also the tourism center, with many hotels and historical and cultural attractions. Many of the roads in Vientiane are narrow, and many of the intersections operate in an inefficient manner. The total number of private vehicles registered in Vientiane increased at an average annual growth rate of 17% during 2000- 2009, and has increased at a growth rate of more than 10% since then, placing Vientiane on an unsustainable transport development path, as the city is starting to experience congestion, increased incidence of road accidents, and deteriorating local air quality. The expanding use of private vehicles is also increasing greenhouse gas emissions. Motorcycles are the primary mode of transport, accounting for 67.0% of daily trips, while public transport only accounts for an estimated 0.6% of daily trips. Public transport in Vientiane is largely provided by privately operated vehicles, particularly tuk-tuks (motorized tricycles). While Vientiane Capital State Bus Company (VCSBC) provides service from the central bus station in the core area to other points in Vientiane, there is no bus service linking points within the core area. VCSBC lacks (i) staff with sufficient skills, (ii) competition, (iii) incentives to improve efficiency, and (iv) capital. There is no parking management system in Vientiane, with no charge for on-street parking and little enforcement of parking regulations.

The project supports the objectives of the Lao PDR's sustainable development strategies, including the Strategic Framework for National Sustainable Development Strategy and the National Rio+20 Report. The National Rio+20 Report specifies the government's long-term sustainable transport strategy and action plan. The project will support achievement of a number of the strategy's goals, including promoting (i) travel without the use of motorized vehicles; (ii) public transport in urban areas; and (iii) bus rapid transit (BRT) in Vientiane.

The project supports the strategic priorities of the Asian Development Bank (ADB) for 2014- 2020 stipulated in ADB''s Midterm Review of Strategy 2020 by improving the enabling environment for inclusive growth through capacity building, increasing assistance for sustainable transport, mobilizing private sector investment, facilitating access to global and regional funds, and contributing to ADB''s cofinancing target. The project is consistent with ADB''s country partnership strategy, 2012- 2016 for the Lao PDR, which has as its overarching objective inclusive and sustainable economic growth and poverty reduction, with a focus on improved urban services to meet the challenges of the rapid urbanization agenda. The project is supported by ADB''s Sustainable Transport Initiative and is included in ADB''s Lao PDR Transport Sector Assessment, Strategy, and Roadmap.

Impact Development of the Vientiane core area in an environmentally sustainable and pedestrian-friendly manner
Project Outcome
Description of Outcome Improved urban transport operations and capacity in Vientiane
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. A sustainable urban transport management agency for Vientiane established

2. High-quality bus services and BRT operating in Vientiane

3. Traffic management in the core area of Vientiane improved

4. Paid parking system and national vehicle registration system established

5. Accessibility for pedestrians and other non-motorized transport in the core area of Vientiane improved

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Vientiane City
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

The Project is category B for environment and an initial environmental examination (IEE) has been prepared based on ADB''s Safeguard Policy Statement 2009. The IEE will be disclosed on ADB website before Board date. The project components such as BRT stations, bus depot, bus staging areas/temporary bus parking areas and improvement works for non-motorized transport will not involve major civil works. Adverse impacts, such as elevated noise levels, dust emission, traffic disturbance, and other construction-related impacts will be experienced in the vicinity of the project sites. These impacts, however, are considered minor being short-term and localized in nature. The proposed on-street parking and traffic management system will involve works of a minor nature with negligible associated environmental impacts.

During operation, the over-all all environmental impact of the Project would be beneficial. The proposed improvements to the transport system will contribute to reduced traffic congestion, improved conditions for walking and cycling, improved community livability and better air quality. Potential adverse impacts that may result due to operation of the bus depot and bus staging areas are considered not significant and can be addressed through good design of the facilities and implementation of mitigation measures specified in the environmental management plan (EMP) included in the IEE. Such impacts pertain to noise, vehicle emissions, wastewater from washing, waste oil from maintenance works, leaks/spills of hazardous substances, traffic congestion due to entry/exit of buses and safety concerns. The EMP includes environmental mitigation measures for the pre-construction, construction and operation phases for various project components as well as monitoring requirements and responsibilities for EMP implementation. The EMP will be incorporated in all the civil works contract documents. A series of public consultations have been conducted for the different project components and a grievance redress mechanism has been developed to facilitate resolution of project-related environmental impacts.

Involuntary Resettlement The project is categorized as B for involuntary resettlement in accordance with ADB''s Safeguard Policy Statement. All affected land and structures identified are owned by government organizations. The proposed stations for the Bus Rapid Transport (BRT) system will only require clearance of small strips of government right-of-way land and public parks while structures affected are roadside pavements/ curbsides, street lights, electricity poles, sewage intakes, and tree/garden fences. For the two bus staging areas, the Project will acquire the entire compound (with three office buildings) owned by the Institute of Mass Media and Culture (about 2,700 m2) while a portion of land with no structures (about 1,500m2) owned by the Vientiane Department of Education and Sports will also be acquired. The area for the depot (about 1.7 hectares) is vacant land and it is owned by the Ministry of Public Works and Transport. All affected organizations have been consulted and key information in the resettlement plan such as project entitlements, grievance redress, institutional arrangements, schedule, and cost estimates have been discussed and disclosed during the preparation of the resettlement plan.
Indigenous Peoples The project is categorized as C for indigenous peoples in accordance with ADB''s Safeguard Policy Statement.
Stakeholder Communication, Participation, and Consultation
During Project Design

Widespread consultations have been conducted with community members and business owners along the BRT route, as well as the Tuk-Tuk Association, Taxi Association, independent taxi drivers, Pick-up and Van Association, international nongovernment organizations, and the government. To encourage more meaningful participation, numerous interviews and small focus group sessions with stakeholders have also been conducted. Native language information materials about the project have been provided at these consultative meetings.

Consultations have been conducted with nongovernment organizations and various transport associations (e.g., the Tuk-Tuk Association, Taxi Association, and Pick-up and Van Association), and these stakeholders will continue to be consulted during project implementation.

During Project Implementation
Business Opportunities
Consulting Services All consulting services to be financed out of the proceeds of ADB will be recruited according to ADB''s Guidelines on the Use of Consultants (March 2013, as amended from time to time). Please see project procurement plan on ADB website.
Procurement All goods and works to be partially or fully financed out of the proceeds of ADB shall be subject to and governed by ADB''s Procurement Guidelines (March 2013, as amended from time to time). Please see project procurement plan on ADB website.
Responsible ADB Officer Jeffrey M. Miller
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Transport and Communications Division, SERD
Executing Agencies
Ministry of Public Works and TransportDept of Housing and Urban Planning, Lao
PDR, Lane-Xang Ave., Vientiane Lao PDR
P.O. Box 206
Timetable
Concept Clearance 12 Dec 2011
Fact Finding 18 Mar 2014 to 28 Mar 2014
MRM 21 Aug 2014
Approval 10 Mar 2015
Last Review Mission -
Last PDS Update 31 Mar 2015

Loan

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 43.74 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 43.74 - 0.00 0.00 %

Loan 3250-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Mar 2015 12 Mar 2015 - 31 Dec 2020 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 49.55 Cumulative Contract Awards
ADB 35.00 10 Mar 2015 0.00 0.00 0%
Counterpart 14.55 Cumulative Disbursements
Cofinancing 0.00 10 Mar 2015 0.00 0.00 0%

Evaluation Documents

See also: Independent Evaluation

No documents found.


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.

Requests for information may also be directed to the InfoUnit.