Lao People's Democratic Republic : Nam Ngum River Basin Development Sector Project

Agriculture, natural resources and rural development / Water-based natural resources management

The Project's two immediate objectives were to (i) foster and institutionalize IWRM in the mainstream management process of the Government at the central, provincial, and district levels; and (ii) support investment interventions in relatively degraded parts of NNRB to ensure sustainable watershed management and to provide livelihood opportunities for the poor and ethnic groups. The Project had three main components: (i) IWRM, (ii) reservoir management and river basin modeling, and (iii) watershed management. The Project was physically completed on 30 September 2010.

In response to the government's request, the Asian Development Bank approved an additional financing project on 26 September 2011. The new project will promote participatory sub-basin management, consolidate and expand khet (village cluster) extension service center operations, and strengthen village development revolving fund mechanism.

In Lao PDR, water is vital for the country's economic development, which is mainly based on agricultural production and hydropower generation. Agriculture contribures about 40% and hydropower another 30% to total foreign exchange earnings. About 90% of the population depends on agriculture. Optimal use of water resources is critical to realizing the Government's strategic objectives of poverty reduction and sustainanble economic growth.

This Project is the culmination of continuing efforts of the Government and ADB over the last several years to establish and strengthen water sector institutions for their closer and more effective coordination. The design of this Project will afford the first opportunity to central and provincial departments to implement IWRM through hands-on, closely interlinked activities.

The Project's development approach is consistent with the Government's 20-Year Plan; Five-Year Socioeconomic Development Plan, 2001-2005; and Public Investment Program. The Project's sector lending modality, in terms of area and time slice, supports the Government's development and public investment plans as laid out in the last two documents.

1. Implement integrated water resources management (IWRM) in NNRB.

2. Provide sustainable livelihood opportunities to upland poor and ethnic groups

Department of Water Resources, under Water Resources & Environment Administration's (WREA), was established to build on technical IWRM capacities. Following completion of Component 1A, support to WREA's IWRM program has been taken up under the ADB/AusAID-financed TA "Updating the National Water Policy and Strategy Project" and its supplementary financing.

Extension activities were conducted to facilitate improved performance of (i) cropping systems; (ii) livestock and fisheries systems; and (iii) forest systems. This was achieved through participatory planning processes and better management of land, forests, water and natural resources at the village, khet (village cluster), district and provincial levels.

Integrated Water Resources Management - Water Resources Coordination Committee Secretariat (WRCCS) strengthened

Integrated Water Resources Management - NNRB Committee (NNRBC) strengthened to support the WRCC

Integrated Water Resources Management - NNRB management plan adopted and implemented

Reservoir Managment and River Basin Modeling - Department of Energy of the Ministry of Energy and Mines strengthened

Reservoir Management and River Basin Modeling - Reservoir management plan developed and implemented by Department of Energy

Reservoir Management and River Basin Modeling - NNRB model developed and executed by HPO

Watershed Management - The Integrated Watershed Management Unit (IWMU) in the Ministry of Agriculture and Forestry (MAF) strengthened

Watershed Management - 16 subwatershed plans prepared and adopted

Watershed Management - Agricultural extension system strengthened in selected subprojects to improve crop, livestock, and forest productivity and sustainability

Instead of strengthening WRCCS, the Government reorganized IWRM institutional arrangements at the central and provincial levels by creating WREA. Under Component 1, the Project successfully carried out and supported the creation and organization of WREA.

Progress is underway on the establishment and strengthening of the NNRBC. The decree for the general establishment of river basin committees was approved in 2010. With this decree, river basin committees are initially expected to be formed for Nam Ngum and Nam Theun-Nam Kading river basins, as well as other priority basins.

Activities have been achieved under Component 2. Department of Energy (DoE) (formerly Hydropower Office) expressed its satisfaction on the training and awareness of a core modeling team, and corresponding capacity to operate MORDOR (Hydrological modeling) and PARSIFAL models. DoE plans to mainly use these models to carry out studies of optimization of hydropower production.

Under Component 3, activities being undertaken under the IWMU within the Department of Planning of MAF include the preparation of watershed baseline data profiles, of management and development strategies and plans, and working closely with the village, district and provincial planning process. Capacity-building activities include workshops and on-the-job training. Maps and databases relating to various aspects of the watersheds are held by the IWMU.

Extension activities were conducted in 22 subwatersheds within NNRB (in Xiengkhouang, Luang Prabang and Vientiane provinces and Vientiane Capital). The Project targeted 316 villages (160 in Vientiane and 95 in Xieng Khouang). Extension made steady progress to attain the Project's targets to increase rice yield, livestock performance and to increase income of 10,000 households. Attainment of Project targets were also done through provision of loans (VDF), extension of technical assistance by Khet Extension Service Centers, capacity building and infrastructures and through demonstration areas.

The consulting consortium was mobilized on 20 July 2004. The contract is a single contract divided into two packages, financed by AFD and ADB. The contract originally provided for a total of 158 person months (pm) international and 146 pm national consultants. ADB financed one package of 48 PM of international and 42 PM of domestic consultants. All consultants work followed a consolidated work plan and reported to the single team leader engaged under the ADB package. Amendments have been made to the ADB and AFD funded inputs with a no-cost implication. A total of 171.95 PM of international inputs and 178.76 domestic inputs were provided under the consulting consortium's contract to all Project components.

In addition to the consulting firm, a total of 293.2 pm (101 pm international and 192.2 national) have been provided from ADB funding. The individual consultants were engaged for activities under Component 3 (Watershed Management).