Regional: Greater Mekong Subregion: Livelihood Support for Corridor Towns

Sovereign Project | 46074-001

Summary

Poverty in the Greater Mekong Subregion (GMS) is still substantial in Cambodia, Lao People's Democratic Republic (Lao PDR), and Viet Nam, where its regional incidence ranges from 9% 34% of the population. Poverty in Cambodia is wide spread with approximately 30% of the rural population living below the poverty line. From 1992 to 2007, the overall national poverty incidence in Cambodia declined to about 36%, which is still a high value by regional comparison (i.e., Viet Nam''s fell to 20% and Thailand''s 12%). The distribution of poverty varies considerably in Cambodia, from less than 15% in the capital city to well over 45% in the northern and northeastern provinces and in the vicinity of Tonle Sap. In Battambang, the poverty incidence in 2009 was at 18%, slightly higher than in Phnom Penh (15%) but lower than the approximate national poverty incidence of 36%. Urban poverty also differs from rural poverty because the reference values in cost of living differ between urban and rural areas.

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Project Name Greater Mekong Subregion: Livelihood Support for Corridor Towns
Project Number 46074-001
Country Regional
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 9173-REG: Greater Mekong Subregion Livelihood Support for Corridor Towns
Japan Fund for Poverty Reduction US$ 2.50 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Multisector - Multisector
Gender Equity and Mainstreaming Effective gender mainstreaming
Description

Poverty in the Greater Mekong Subregion (GMS) is still substantial in Cambodia, Lao People's Democratic Republic (Lao PDR), and Viet Nam, where its regional incidence ranges from 9% 34% of the population. Poverty in Cambodia is wide spread with approximately 30% of the rural population living below the poverty line. From 1992 to 2007, the overall national poverty incidence in Cambodia declined to about 36%, which is still a high value by regional comparison (i.e., Viet Nam''s fell to 20% and Thailand''s 12%). The distribution of poverty varies considerably in Cambodia, from less than 15% in the capital city to well over 45% in the northern and northeastern provinces and in the vicinity of Tonle Sap. In Battambang, the poverty incidence in 2009 was at 18%, slightly higher than in Phnom Penh (15%) but lower than the approximate national poverty incidence of 36%. Urban poverty also differs from rural poverty because the reference values in cost of living differ between urban and rural areas. Poverty in Lao PDR is still widespread with an estimated 34% of the population living under the poverty line and a large proportion of the population at risk of sliding back into poverty. In the Savannahket Province where Kaysone Phomvihane is situated, the reported poverty incidence is at 43%, higher than the national rate. Kaysone Phomvihane is also listed among the poorest districts in the Savannahket Province. Poverty is predominantly rural, with high concentrations in the remote and mountainous northeastern and eastern borders with Viet Nam, and, therefore, has a strong ethnic character. Viet Nam's progress towards reducing poverty has been impressive with the poverty incidence declining from 58% in 1993 to 10.6% in 2010. Urban poverty in Viet Nam fell from about 25% in 1993 to 4% in 2006. Rural poverty in the same period declined from 66% to 22%. However, while reductions in urban poverty in Ha Noi and Ho Chi Minh City tend to skew national averages, cities outside the major growth corridors, including those in the central provinces (Dak Lak, Pleiku, etc.), the Mekong Delta (Kien Giang, Soc Trang, etc.), the northern border (Cao Bang, Lao Cai, etc.), and the central coast (Hue, Quang Tri) still have relatively high urban poverty rates. In Dong Ha City, poverty incidence in 2010 is at 8%, higher than the national urban poverty incidence of 4%, and slightly lower than the overall poverty incidence of 10.6% in the same year.

The proposed project is a pilot poverty-reduction project in the GMS using a market development approach intended to compliment the urban infrastructure investments under the three loan projects. Trade, traffic, tourism, and people flow are perceived to significantly increase in the East-West Economic Corridor (EWEC) and Southern Economic Corridor (SEC) because of the infrastructure investments under the three loan projects; the project aims to capitalize on these developments by helping poor informal traders enhance their locally-produced products and provide aesthetically attractive, environmentally sound, socially inclusive, and gender-responsive trade centers to market these products.

Project Rationale and Linkage to Country/Regional Strategy
Impact Increased income among beneficiaries in the selected corridor towns (which are part of the GMS Corridor Towns Development Project) in the three project countries.
Project Outcome
Description of Outcome Increased local employment for poor households
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Construction of small markets (trade centers) in three project towns completed

2. Microfinance support for market vendors in three project towns

3. Training and awareness campaigns completed

4. Project management, monitoring and audit services established

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations with stakeholders conducted during project preparation.
During Project Implementation When consultants are on board, public consultations will be conducted.
Responsible ADB Officer Linda Adams
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Urban Development and Water 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
Ministry of Public Works and TransportPMUHWY1@CAMNET.COM.KH1st Floor West Building,
Corner Norodom Boulevard Street 106
Phnom Penh, Cambodia
Provincial People's Committee of Quang TriProvince45 Hung Vuong, Dong Ha Town, Quang Tri
Viet Nam
Timetable
Concept Clearance 11 May 2012
Fact Finding -
MRM 18 Jun 2012
Approval 21 May 2013
Last Review Mission -
Last PDS Update 30 Sep 2014

Grant 9173-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 May 2013 08 Nov 2013 08 Nov 2013 30 Nov 2017 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 2.80 Cumulative Contract Awards
ADB 0.00 21 May 2013 0.00 0.51 20%
Counterpart 0.30 Cumulative Disbursements
Cofinancing 2.50 21 May 2013 0.00 0.14 5%
Title Document Type Document Date
Greater Mekong Subregion: Livelihood Support for Corridor Towns Japan Fund for Poverty Reduction Apr 2013

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